NewzIntel.com

Category: Intelligence

  • MIL-OSI Security: Essex County Man Charged with Firearms and Drug Trafficking Offenses

    Source: US FBI

    NEWARK, N.J. – An Essex County man has been indicted for firearms and narcotics offenses, U.S. Attorney Philip R. Sellinger announced.

    Raishaun Lofton, 30, of Newark, New Jersey, was charged by indictment with one count of possession of a firearm and ammunition by a convicted felon, one count of possession of ammunition by a convicted felon, one count of possession with intent to distribute fentanyl, and one count of possessing a firearm in furtherance of a drug trafficking crime.  He appeared today before United States Magistrate Judge Almonte in Newark federal court and was detained.

    According to documents filed in this case and statements made in court:

    On February 22, 2024, during an investigation, police officers recovered from Lofton a privately made firearm with no serial number, nine rounds of 9mm ammunition, 81 glassine envelopes containing fentanyl, and plastic jugs commonly used to distribute illegal drugs.  On April 22, 2024, video surveillance footage depicted Lofton firing a different firearm into the air during an argument.  One of the bullets from the firearm that Lofton shot entered a nearby living room where a family with two children was watching a movie.  During the subsequent investigation, law enforcement recovered the firearm that Lofton had fired.

    The two counts of possession of a firearm and ammunition by a convicted felon each carry a maximum sentence of 15 years in prison and a maximum fine of $250,000.  The count of possession with intent to distribute fentanyl carries a maximum sentence of 20 years in prison and a maximum fine of $1,000,000.  The count of possession of a firearm in furtherance of a drug trafficking offense carries a mandatory minimum sentence of five years in prison, which must run consecutively to the sentence imposed on the other counts, a maximum sentence of life in prison, and a maximum fine of $250,000.

    U.S. Attorney Sellinger credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, and police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, with the investigation that led to the charges.

    The government is represented by Assistant U.S. Attorney Eli Jacobs of the General Crimes Unit in Newark.

    The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

    Defense counsel: Tatiana Nnaji, Esq., Assistant Federal Public Defender, Newark

    MIL Security OSI –

  • MIL-OSI Security: Essex County Convicted Felon Admits Drug Trafficking and Possession of Firearms, Including Two Assault Rifles

    Source: US FBI

    NEWARK, N.J. – An Essex County, New Jersey, man today admitted distributing cocaine, possessing with intent to distribute cocaine and heroin, and possessing three firearms, including two assault rifles with high capacity magazines, U.S. Attorney Philip R. Sellinger announced.

    Azmar Carter, a/k/a “Bizzy,” 32, of East Orange, pleaded guilty before U.S. District Judge Madeline Cox Arleo to a superseding information charging him with two counts of distribution and possession with intent to distribute cocaine, possession of firearms and ammunition by a convicted felon, and possession with intent to distribute heroin and cocaine.

    According to documents filed in this case and statements made in court:

    In 2021, law enforcement began investigating a drug trafficking organization that operates primarily in and around Orange, New Jersey and distributes narcotics throughout Essex County. During the investigation, Carter distributed cocaine to law enforcement in May 2021 and in July 2021. Subsequently, on August 18, 2021, law enforcement searched Carter’s residence and car in East Orange, New Jersey and recovered the following items: one Draco AK 47 rifle; one Smith and Wesson AR rifle; one .40 caliber pistol; ninety-four rounds of associated ammunition; a distribution quantity of heroin and cocaine; and approximately $7,177.00.

    The drug trafficking offenses carry a maximum potential penalty of 20 years in prison, and a fine of $1 million.  The possession of firearms and ammunition by a convicted a felon offense carries a maximum potential penalty of 10 years in prison, and a maximum fine of $250,000.  Sentencing is scheduled for April 30, 2024.

    U.S. Attorney Sellinger credited special agents and members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; members of the Orange Police Department, under the direction of Police Director Todd Warren, Chief Vincent Vitiello and Captain Brian Mooney; members of the Elizabeth Police Department, under the direction of Chief of Police Giacomo Sacca and Police Director Earl J. Graves; members of the East Orange Police Department, under the direction of Chief Phyllis Bindi; member of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda and Chief of Police Sharonda Morris; and the Belleville Police Department, under the direction of Chief Mark Minichini, with the investigation leading to the charges and arrests.

    This case is part of Operation Orange, which is a part of the Newark Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, the Orange Police Department and the Irvington Police Department.

    The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the General Crimes Unit in Newark.

    Defense counsel: Christopher D. Adams, Esq.
     

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  • MIL-OSI Security: Springfield Man Sentenced to 14 Years in Federal Prison for Repeatedly Possessing and Distributing Child Sexual Abuse Material

    Source: US FBI

    EUGENE, Ore.—A Springfield, Oregon man was sentenced to federal prison today for repeatedly possessing and distributing photos and videos depicting child sexual abuse.

    Randy Lee Cook, 43, was sentenced to 168 months in federal prison and a life term of supervised release.

    According to court documents, in 2006, Cook was convicted of state child pornography charges in Missouri and served a significant prison sentence for sending child sexual abuse material to a minor, engaging in sexual chats with the minor, and then engaging in additional sexual chats with an undercover law enforcement officer posing as a minor and propositioning the decoy minor for sex. Following his release from prison, Cook was required to register as a sex offender.

    In the summer of 2020 and spring of 2021, investigators learned that Cook had resumed distributing child sexual abuse material online, this time using Kik Messenger, an instant messaging mobile application. Investigators traced multiple Kik accounts to Cook and learned he was residing in Springfield. On June 11, 2021, investigators executed search warrants on Cook’s residence, truck, and person. Cook’s phone was found to contain approximately 194 images and 63 videos depicting child sexual abuse.

    In July 2021, Cook was charged by criminal complaint with possessing and distributing child pornography and arrested. On July 20, 2023, a federal grand jury in Eugene indicted him on the same charges.

    In December 2023, while Cook’s case was being litigated, an FBI task force officer in Louisiana investigating an unrelated matter began conversing with an individual on Kik who was later determined to be Cook. In conversations online with the officer, Cook claimed to have engaged in sex acts with children and sent the agent an explicit video of a child. On December 14, 2023, Cook was arrested a second time when he was leaving his Springfield residence to plead guilty in federal court.

    On January 24, 2024, Cook pleaded guilty to three counts of distributing child pornography and one count of possessing child pornography.

    This case was investigated by the FBI Eugene Resident Agency with assistance from the FBI New Orleans Field Office, Lane County Sheriff’s Office, Bossier Parish Sheriff’s Office, and Shreveport Police Department. It was prosecuted by William McLaren, Marco Boccato, and Mira Chernick, Assistant U.S. Attorneys for the District of Oregon.

    Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.

    Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, they re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI Security: Jersey City Gang Member Charged with Violent Crime in Aid of Racketeering and Weapons Offense for Role in Shooting

    Source: US FBI

    NEWARK, N.J. – A member of the Rutgers neighborhood street gang operating in the area of Triangle Park in Jersey City, New Jersey, is charged for his role in shooting rival gang members, U.S. Attorney Philip R. Sellinger announced.

    Micah Reid, aka “Nips,” 33, of Jersey City is charged by complaint with one count of violent crime in aid of racketeering activity and one count of discharging of a firearm during a crime of violence.  Reid made his initial appearance today before U.S. Magistrate Judge James B. Clark, III in Newark federal court and was detained.

    According to documents filed in this case and statements made in court:

    Reid is a high-ranking member and associate of the Rutgers neighborhood street gang, which operates in the area of Triangle Park in Jersey City.  The gang has historically engaged in retaliatory acts of violence against rival neighborhood street gangs operating in the area of the Salem Lafayette Apartments and the area of Wilkinson Avenue, Ocean Avenue, Martin Luther King Drive, and Wegman Parkway.  

    On October 1, 2023, Reid, driving a stolen vehicle, shot at members and associates of rival street gangs who were exiting a nightclub on Culver Avenue in Jersey City.  In total, six individual suffered gunshot wounds.  Law enforcement later recovered the firearm used in the shooting from Reid’s residence while executing a search warrant.  

    Reid faces a maximum sentence of 30 years in prison on the violent crime in aid of racketeering charge, and a statutory mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison on the firearm offense, which must run consecutively to any other sentence imposed.  Both offenses carry a maximum fine of $250,000.

    U.S. Attorney Sellinger credited investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge L.C. Cheeks Jr., and the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges.

    This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City.  As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community.  The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

    The government is represented by Assistant U.S. Attorney Alison Thompson of the General Crimes Unit in Newark.

    The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
     

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office Secures Guilty Plea in Fatal DUI Case

    Source: US FBI

    ALBUQUERQUE – A Farmington man entered a guilty plea to one count of involuntary manslaughter stemming from a fatal car crash in 2024.

    There is no parole in the federal system.

    According to court documents, on September 22, 2024, Irvin Virgil Wauneka, Jr., 35, an enrolled member of the Navajo Nation, was operating a motor vehicle while under the influence of alcohol, having consumed approximately half a pint of Jim Beam whiskey. Jane Doe was a passenger in the vehicle. Wauneka‘s impaired driving resulted in a head-on collision with another motor vehicle. Tragically, Jane Doe suffered fatal injuries and was pronounced dead at the scene of the crash.

    At sentencing, Wauneka faces up to eight years, followed by three years of supervised release.

    Acting U.S. Attorney Holland S. Kastrin and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Brittany DuChaussee is prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Convicted Felon Sentenced to More Than Six Years in Prison on Gun Charge

    Source: US FBI

    TUSCALOOSA, Ala. –  A federal judge yesterday sentenced a Demopolis man for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

    Chief U.S. District Court Judge L. Scott Coogler sentenced Terrance Jamela Armstead, 31, of Demopolis, Alabama, to 80 months in prison. Armstead pleaded guilty to one count of being a felon in possession of a firearm in October 2022.  

    According to court documents, on October 13, 2020, the assistant police chief of the Eutaw Police Department was at the One Stop gas station in Eutaw.  While there, he observed a fight between Armstead and another individual.  The assistant chief intervened and sprayed both individuals with pepper spray.  Armstead succumbed to the pepper spray and attempted to run, but fell.  In taking him into custody, the assistant chief recovered a Smith & Wesson .40 caliber semi-automatic pistol from Armstead’s waistband.  The pistol had been reported stolen to the Eutaw Police Department a few months prior to the incident. 

    “The illegal possession of a firearm by a convicted felon risks turning any minor dispute into a deadly confrontation,” said U.S. Attorney Escalona.  “We are grateful for the actions of the Eutaw Police in this case to prevent further violence.” 

    The FBI investigated the case, along with the Eutaw Police Department.  Assistant U.S. Attorney Alan Baty prosecuted the case.

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  • MIL-OSI Security: Trussville Man Charged in Multi-Million-Dollar Kickback and Health Care Fraud Case

    Source: US FBI

    BIRMINGHAM, Ala. – Another individual has been charged in a series of related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles. 

    A federal grand jury yesterday week returned a five-count indictment against John Alan Robson, 40, of Trussville, on charges of health care fraud conspiracy, kickback conspiracy, and kickbacks. According to the indictment, Robson was a sales rep who marketed to doctors’ offices various health care products and services, including prescription drugs from specialty pharmacies, durable medical equipment (DME), and electro-diagnostic testing. Robson was paid fees for the prescriptions, DME, and tests he generated from doctors. From at least 2014 through 2018, Robson allegedly conspired with others to pay and receive kickbacks to induce medical providers to issue medically unnecessary prescriptions and order medically unnecessary goods and services, which were then billed to Medicare and other health insurers.

    One of those services was electro-diagnostic testing provided by a Huntsville-based electro-diagnostic testing company called QBR, or Diagnostic Referral Community. Robson received per-patient payments from QBR for inducing medical providers to order tests from QBR. According to the indictment, medical providers received payments from QBR too; the payments were disguised as hourly payments for the ordering physician’s time and staff’s time, but in reality they were per-patient kickbacks.

    The case against Robson is related to several other cases that have resulted in convictions in the last year. Dr. Eric Beck, 64, of Huntsville, pleaded guilty last year to health care fraud conspiracy for his role in the QBR scheme. John Hornbuckle, 53, of Huntsville, pleaded guilty to health care fraud and kickback conspiracy offenses for his role, as QBR’s CEO, in orchestrating the fraud. James Ewing Ray, 52, of Gadsden, pleaded guilty to health care fraud and kickback conspiracy for his role as a sales rep who marketed QBR’s scheme to medical practices and received kickbacks per test ordered.

    Early last year, a jury convicted Dr. Mark Murphy, 65, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, of drug distribution, fraud, and kickback crimes. The Murphys operated North Alabama Pain Services, which closed its Decatur and Madison offices in early 2017. According to court documents and evidence presented at trial, the Murphys took kickbacks from QBR of more than a million dollars. In return, Dr. Murphy ordered electro-diagnostic tests from QBR for his patients, regardless of whether there was a medical need for those tests. Dr. Murphy also pre-signed prescriptions for expensive specialty topical creams, sprays, and patches, which patients then received whether they wanted the products or not. Before the Murphys went to trial, a co-defendant, Brian Bowman, 42, of Gadsden, pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. Bowman also marketed high-reimbursing specialty prescription drugs to the Murphys and other providers and received payments for the prescriptions he generated.

    Beck, Hornbuckle, Ray, Mark Murphy, Jennifer Murphy, and Bowman are all awaiting sentencing. Other co-conspirators have already been sentenced.

    The maximum penalty for conspiracy to commit health care fraud is ten years in prison; the maximum penalty for conspiracy to receive kickbacks is five years in prison; each kickback count also carries up to ten years.

    The FBI and HHS-OIG investigated the case, and Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting it. 

    An indictment contains only charges.  Each defendant is presumed innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Two Individuals Sentenced for Kidnapping Resulting in Death

    Source: US FBI

    BIRMINGHAM, Ala. – A federal judge today sentenced two individuals, in separate but related cases, for kidnapping and conspiracy to kidnap a minor victim, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

    U.S. District Court Judge L. Scott Coogler sentenced Patrick Devone Stallworth, 42, and Derick Irisha Brown, 32, both of Birmingham, to life in prison.  Stallworth and Brown were convicted in 2022 of one count of kidnapping and one count of conspiracy to kidnap a minor victim. The jury further found that the minor victim’s death resulted from the kidnapping.

    According to court documents, on October 12, 2019, Birmingham Police Department responded to a report that a three-year-old girl was missing near the Tom Brown Village Housing Development in Birmingham, Alabama. Stallworth and Brown traveled in a Toyota Sequoia to the Tom Brown Village Housing Development on that day and kidnapped 3-year-old Kamille “Cupcake” McKinney.  Her body was found on October 22, 2019.  

    “There is no greater responsibility for federal law enforcement than to investigate and prosecute those who commit senseless and horrendous acts of violence against young children.” U.S. Attorney Escalona said. “I want to personally thank the dozens of law enforcement members and community volunteers who assisted in both big and small ways in the investigation and bringing justice to the victim and her family.”

    “While today’s sentencing can’t take away the pain or fill the void of loss for Kamille’s family, I sincerely hope there is some comfort in knowing those who committed this heinous crime have been brought to justice,” SAC Peeples said.  “The FBI and its’ law enforcement partners are committed to bringing to justice those who seek to prey on our children, the most vulnerable members of our society”.

    The Federal Bureau of Investigation and the Birmingham Police Department investigated the case, with assistance from the United States Marshals Service.  Chief of the Criminal Division Lloyd C. Peeples and Assistant U.S. Attorneys Blake Milner and Brittany Byrd prosecuted the case. 

    MIL Security OSI –

  • MIL-OSI Security: Pain Clinic Owners Sentenced for Unlawfully Distributing Opioids and Multi-Million-Dollar Health Care Fraud

    Source: US FBI

    BIRMINGHAM, Ala. – A judge sentenced a Tennessee physician and his wife yesterday for unlawfully distributing opioids and defrauding insurers through their now-shuttered Alabama clinics.  

    Chief U.S. District Court Judge L. Scott Coogler sentenced Mark Murphy, 66, and his wife, Jennifer Murphy, 66, both of Lewisburg, each to twenty years in prison for conspiracy to unlawfully distribute controlled substances and conspiracy to commit health care fraud, along with various substantive counts related to the same, and conspiring to defraud the United States and receiving kickbacks. 

    “Dr. Murphy and his wife preyed on countless vulnerable patients and stole tens of millions of dollars from Medicare and other taxpayer-funded health insurance programs,” said U.S. Attorney Escalona.  “Our office will continue to prosecute drug dealers and health care fraudsters to the full extent of the law.” 

    “The abuse of prescription drugs, especially opioids, is a serious problem in our communities,” said DEA Assistant Special Agent in Charge Towanda Thorne-James. “All too often, this abuse leads to addiction, shattered lives, and even death.  For the health and safety of our citizens, DEA and our law enforcement partners will continue to target those who illegally distribute these potentially dangerous drugs.  We hope that the sentences in this case serve as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause.”

    “Mark and Jennifer Murphy learned today that unlawfully distributing controlled substances, committing health care fraud, and receiving kickbacks comes with hefty legal consequences,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Their conviction today serves as a lesson to others who think no one is paying attention.”

    According to court documents and evidence presented at trial, Mark Murphy and Jennifer Murphy owned and operated North Alabama Pain Services (NAPS), which closed its Decatur and Madison offices in early 2017.  Mark Murphy was the sole doctor at the two locations, and the evidence at trial showed that some patients went months or years without seeing him during their monthly office visits, even though they continued to get opioid prescriptions that he had pre-signed.  Over the approximately five-year period leading up to the clinic closing its Alabama locations, the evidence at sentencing showed, Murphy wrote prescriptions for more than ten million opioid pills, including millions of oxycodone 30 mg tablets.  During the same five-year period, Murphy and his wife Jennifer, who helped run the clinics, ordered tens of millions of dollars of unnecessary items and services that were paid by taxpayer-funded and private insurance programs. The Murphys received kickbacks for those orders and prescriptions.  In all, Medicare, TRICARE, and Blue Cross Blue Shield of Alabama were billed more than $280 million as a result of the fraud and kickback schemes, and paid more than $50 million.  Mark Murphy and Jennifer Murphy were each ordered to pay more than $50 million in restitution. Jennifer Murphy was also convicted of tax-related charges for underreporting clinic income.

    Also yesterday, co-conspirator, Christie Rollins, 52, of Petersburg, Tennessee, was sentenced to twenty-four months in prison for her role in selling medically unnecessary durable medical equipment and expensive topical creams at NAPS.  Rollins agreed to pay restitution of more than $564,000.

    Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Prim F. Escalona for the Northern District of Alabama; Special Agent in Charge Bradford L. Byerly of the Drug Enforcement Administration (DEA) New Orleans Field Division; Special Agent in Charge Carlton L. Peeples of the FBI Birmingham Division; Special Agent in Charge James E. Dorsey of IRS Criminal Investigation (IRS-CI) Atlanta Field Office; and Special Agent in Charge Tamela E. Miles of the Department of Health and Human Service Office of the Inspector General (HHS-OIG) Atlanta Region made the announcement.

    FBI, HHS-OIG, IRS-CI and DEA investigated the case.

    Assistant Chief Jillian Willis and Trial Attorney Emily Gurskis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama prosecuted the case.

    The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 90 defendants who are collectively responsible for distributing more than 105 million pills. The ARPO Strike Force is part of the Health Care Fraud Strike Force Program, which since March 2007 has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at: https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

    MIL Security OSI –

  • MIL-OSI Security: Birmingham Attorney Sentenced to More Than Eight Years in Prison for Possession of Child Pornography

    Source: US FBI

    Birmingham, Ala. – A federal judge sentenced a Birmingham attorney today for possession of child pornography announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

    U.S. District Court Judge Annemarie Axon sentenced Chase Tristian Espy, 36, of Vestavia, to 97 months in prison followed by 20 years supervised release. Espy pleaded guilty to possession of child pornography in October 2022. Espy was also ordered to pay additional special assessments of $15,000.00 pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act and $5,000.00 pursuant to the Justice for Victims of Trafficking Act.  Assessments collected under these statutes are used to fund and enhance victim services. Espy was remanded into the custody of the U.S. Marshal.

    “No one is above the law, and today’s sentence sends a message to anyone who preys on innocent children.  We will use every tool available to us to investigate and prosecute those who target children for abuse,” U.S. Attorney Escalona said.  “I commend the hard work and commitment of our local, state, and federal law enforcement partners to bring this defendant to justice.” 

    In October 2022, Espy pleaded guilty to possession of child pornography arising out of events that occurred from March 2021 to August 2021.  Court documents reveal that the investigation was initiated when Espy engaged in online chats with an undercover law enforcement officer whom Espy believed was a 15-year-old girl.  Upon being arrested, Espy’s cell phone was seized, and a search warrant was obtained.  From this search, approximately 69 videos and four images of child sexual abuse material were found.

    The FBI Birmingham’s Child Exploitation Human Trafficking Task Force (CEHTTF), the Homewood Police Department, and the Alabama Law Enforcement Agency (ALEA) participated in this investigation.  Assistant U.S. Attorneys R. Leann White and Jonathan Cross are prosecuted the case.

    The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

    MIL Security OSI –

  • MIL-OSI Security: New Hope Man Sentenced for His Role in Multi-Million-Dollar Kickback and Health Care Fraud Cases

    Source: US FBI

    HUNTSVILLE, Ala. – A federal judge has sentenced another individual charged in a series of related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles. 

    Last Friday, Chief United States District Court Judge L. Scott Coogler sentenced John Hornbuckle, 53, of New Hope, to 80 months in prison. In November 2022, Hornbuckle pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to receive kickbacks. Between 2012 and 2018, Hornbuckle owned QBR. According to the plea agreement in Hornbuckle’s case, QBR billed insurers millions of dollars for electro-diagnostic testing that its technicians performed, regardless of whether there was a medical need for them. Hornbuckle caused QBR to pay medical providers a per-patient fee for the tests they ordered from QBR that were reimbursed by insurers, including Medicare and other government health care programs. The payments were disguised as hourly payments for the provider’s time and the time of the provider’s staff, but the provider was actually paid a fee per patient who received a test. Insurance programs paid more than nine million dollars for the medically unnecessary tests that QBR paid doctors to order.

    Hornbuckle was also ordered to pay $9,192,005.20 in restitution, a fine of $250,000, and forfeiture of $176,449.19.

    The case against Hornbuckle is related to several other cases that have resulted in convictions in the last year. Dr. Mark Murphy, 66, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, were sentenced last week. Brian Bowman, 41, of Gadsden, has pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. James Ewing Ray, 52, of Gadsden, has pleaded guilty to health care fraud and kickback conspiracy for his role as a sales rep who marketed QBR’s scheme to medical practices and received kickbacks per test ordered. John Alan Robson, 40, of Trussville, was indicted last month on charges of health care fraud conspiracy, kickback conspiracy, and kickbacks. According to his indictment, Robson was a sales rep who marketed to doctors’ offices various health care products and services, including prescription drugs from specialty pharmacies, durable medical equipment (DME), and electro-diagnostic testing. Robson was paid fees for the prescriptions, DME, and tests he generated from doctors.

    Brian Bowman and James Ray are awaiting sentencing.

    The FBI and HHS-OIG investigated the cases.  Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted the cases.

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  • MIL-OSI Security: Two Individuals Indicted on Gun Charges Appear in Federal Court

    Source: US FBI

    BIRMIGHAM, Ala. — Yesterday, two individuals were arrested by FBI agents and appeared in federal court, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples. 

    Charles Edward Kilgore, 31, of Heflin, and Thomas Austin Griffith, 24, of Anniston, were arraigned before U.S. Magistrate Judge Nicholas A. Danella on charges of being a felon in possession of a firearm. Kilgore and Griffith are being held in the custody of the U.S. Marshal until their detention hearings which are set for March 14.  

    According to the indictments, Kilgore illegally possessed a Glock .40 caliber pistol on January 6, 2023, in Cleburne County. Griffith illegally possessed a Glock .40 caliber pistol on December 9, 2022, in Calhoun County.

    The maximum penalty for being a felon in possession of a firearm is 15 years in prison.

    The FBI North Alabama Violent Crime Task Force investigated the case, along with the Calhoun County Sheriff’s Office and the Oxford Police Department. Assistant U.S. Attorney Michael A. Royster is prosecuting the case.

    An indictment contains only charges.  A defendant is presumed innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Seven Indicted for Role in Prison-Based Phone Scam and Paying Bribes to Corrections Officers at the William E. Donaldson Correctional Facility

    Source: US FBI

    BIRMINGHAM, Ala. – A federal indictment unsealed yesterday charges seven individuals for their participation in a prison-based telephone scam and conspiring to smuggle cell phones, controlled substances, and other contraband to inmates at the William E. Donaldson Correctional Facility (Donaldson) in Bessemer, Alabama, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis. 

    A seventeen-count indictment filed in U.S. District Court charges Keith Devon Perry, aka “Keep Paper,” 30, of Anniston, Kierro Deandrew Nelson, aka “10K,” 32, of Montgomery, Shedrick Romon Johnson, aka, “Cett,” 43, of Montgomery, Deangelo Lamon Russell, aka “Dee,” 31, of Anniston, Desmond Arterrio Nelson, aka “Dez,” 35, of Montgomery, and Aleshia Nelson,” aka “Leshia,” 30, of Montgomery, with conspiracy to commit an offense against the United States, using a facility in interstate commerce in furtherance of an unlawful activity, and conspiracy to distribute a controlled substance. Perry, Kierro Nelson, Johnson, and Brantley Glen Wheatley, aka “Queen B,” 29, of Tuscaloosa, are charged with conspiracy to commit wire fraud. Perry, Johnson, and Wheatley are charged with wire fraud. Perry and Wheatley are charged with aggravated identity theft. Perry, Kierro Nelson, Johnson, Wheatley, and Russell are charged with conspiracy to commit money laundering.

    The defendants include current and former inmates at Donaldson, as well as family members of two inmates. The charges stem from a larger investigation into fraud and corruption at Donaldson that has to date resulted in nine additional individuals being charged. Those individuals include Wilson Brian Clemons, Ricardo Poole, Sr., Kortney Jovan Simon, Otis Lee Bowers, Terry Ray Bradshaw, Rennita Renee Perry, Kiara Reshell Anderson, Ricardo Poole, Jr., and Rhonda Thompson Poole.

    According to the indictment, between July 2021 and February 2022, the defendants used contraband cell phones, social engineering techniques, and spoofing technology to trick retailers into transferring them funds under fraudulent pretenses. The proceeds of these telephone scams were then used to, among other things, finance the purchase of controlled substances and to pay bribes to corrections officers at Donaldson.

    The charges of conspiracy to commit an offense against the United States and use of a facility in interstate commerce in furtherance of illegal activity both carry a maximum sentence of five years in prison The charges of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and conspiracy to distribute and possess with the intent to distribute a controlled substance each carry a maximum penalty of 20 years in prison. Aggravated identity theft carries a mandatory sentence of two years in prison.

    The U.S. Secret Service Cyber Fraud Task Force investigated the case. Assistant U.S. Attorneys Edward J. Canter and John M. Hundscheid are prosecuting the case. The Alabama Department of Corrections Law Enforcement Services Division, the Drug Enforcement Administration, and the Federal Bureau of Investigation have assisted in the investigation.

    An indictment contains only charges. The defendants are presumed innocent unless and until they are proven guilty.

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  • MIL-OSI Security: Massachusetts Man Pleads Guilty to Sexual Exploitation of a Child and Travel with Intent to Engage in Unlawful Sexual Activity

    Source: US FBI

    ALBANY, NEW YORK – Frank Twing, Sr., age 33, of West Stockbridge, Massachusetts, pled guilty today to one count of sexual exploitation of a child involving a then-15-year-old victim and one count of travel with intent to engage in unlawful sexual conduct involving an approximately 12-year-old victim. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    Twing admitted that he engaged in a sexual relationship with a 15-year-old child during which he created sexually explicit videos depicting that child. He also admitted to traveling from his home in Massachusetts to New York, planning to have sex with an approximately 12-year-old child.

    At sentencing scheduled for March 6, 2025, before United States District Judge Mae A. D’Agostino, Twing faces a mandatory minimum imprisonment term of 15 years and a maximum imprisonment term of 60 years, post-release supervision of at least 5 years and up to life, a fine of up to $250,000, special assessments, restitution to the victims, and forfeiture of the property he used to commit he offenses. Twing also will be required to register as a sex offender upon his release from prison.

    This case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force, the New York State Police, and the Massachusetts State Police Detective Unit assigned to the Berkshire County District Attorney’s Office, which itself also assisted in the investigation. Assistant U.S. Attorneys Michael D. Gadarian and Benjamin A. Gillis are prosecuting the case as part of Project Safe Childhood.

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

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  • MIL-OSI Security: Medical Billing Company Owner Pleads Guilty to Health Care Fraud

    Source: US FBI

    ALBANY, NEW YORK – Scott Newcombe, age 40, of Plattsburgh, New York, pled guilty today to health care fraud. 

    United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Naomi Gruchacz, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Regional Office, made the announcement.

    Newcombe admitted that from approximately April 2020 through April 2023, he acted as the office manager and health care claims biller for two physicians’ practices in Plattsburgh through a company that he formed called SJ Healthcare Management Services, LLC (SJHMS).  SJHMS charged a fixed monthly fee under which Newcombe performed various management, administrative, and billing services for the practices.  He admitted that he submitted false and fraudulent claims to public and private insurers on behalf of those practices for services that, in some instances, were never provided and, in other instances, were provided at lower reimbursement rates than the amounts billed.  For example, Newcombe admitted that he submitted claims to insurers for medical procedures that were purportedly performed by a provider on him but which, in fact, never occurred. 

    Newcombe is scheduled for sentencing on February 28, 2025.  He faces up to 20 years in prison and a term of post-imprisonment supervised release of up to 3 years.  A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.

    The FBI and HHS investigated this case.  Assistant U.S. Attorneys Michael D. Gadarian and Adam J. Katz are prosecuting the case.

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  • MIL-OSI Security: Former Troy City Council Member Sentenced for Identity Theft

    Source: US FBI

    ALBANY, NEW YORK – Kim McPherson, age 63, of Troy, New York, was sentenced today to 1 year of probation, and to pay a $1,500 fine, for identity theft in connection with her casting of absentee ballots in two other people’s names in elections held in 2021.

    United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    McPherson successfully ran for re-election to the Troy City Council in 2021, first in the Working Families Party primary and then in the general election.  In pleading guilty in June 2022 to the unlawful possession and use of a means of identification of another person, she admitted that in the primary election, she unlawfully cast an absentee ballot in the name of another person, and that in the general election, she unlawfully cast absentee ballots in the names of two people other than herself.

    As part of her plea agreement, McPherson resigned from the Troy City Council.

    The FBI investigated this case and Assistant U.S. Attorney Michael Barnett prosecuted this case.

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  • MIL-OSI Security: Anchorage Man Sentenced to 10 Years for Heroin Trafficking

    Source: US FBI

    ANCHORAGE, ALASKA – U.S. District Judge Joshua M. Kindred sentenced an Anchorage man on April 19, 2023, to 10 years and 5 months imprisonment followed by eight years of supervised release for distributing heroin.

    According to court documents and evidence presented at trial, Jason McAnulty, aka “Snoop,” 40, distributed approximately 126 grams of heroin to a law enforcement source during two undercover operations in June 2020, netting himself $6,300.  Law enforcement began investigating McAnulty after learning that he was a source of heroin supply in the Anchorage area. In July 2020, law enforcement executed a search warrant at McAnulty’s residence where they found more than $34,000 cash and other distribution contraband. An Alaska jury convicted McAnulty of the heroin distribution following a five-day trial in March 2022. 

    McAnulty was previously convicted in 2004 for first-degree robbery, a serious violent felony, that mandated a minimum 10-year prison sentence. The United States also presented evidence of McAnulty’s extensive and violent criminal history at the sentencing hearing in support of the sentence, including McAnulty’s 2015 federal conviction for attempted witness tampering in another federal criminal trial.

    “Dangerous opiates such as heroin pose an ongoing threat to communities throughout Alaska,” said U.S. Attorney S. Lane Tucker for the District of Alaska.  “This sentence serves as a reminder that we will prosecute and hold accountable those who are harming our communities, and with our law enforcement partners, will persist in our disruption of heroin trafficking operations in this district.”

    “McAnulty supported the opioid and heroin epidemic through his illegal drug distribution activities, posing a significant threat to communities in Alaska,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “The FBI and the Anchorage Police Department will continue working together to hold drug traffickers accountable, and to stop the flow of deadly drugs into our communities.” The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD), in support of Alaska’s High Intensity Drug Trafficking Area (HIDTA) program, investigated the case.

    Assistant U.S. Attorneys George Tran and Stephan Collins prosecuted the case.

    This case is part of Alaska’s High Intensity Drug Trafficking Area (HIDTA). HIDTA was established in 2018 to enhance and coordinate efforts among local state and federal law enforcement agencies, providing equipment, technology and additional resources to combat drug trafficking and its harmful consequences in critical regions of Alaska.

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  • MIL-OSI Security: Washington Man Charged with Three Counts of Assault on Flight to Anchorage, Alaska

    Source: US FBI

    ANCHORAGE – A federal grand jury in Alaska returned an indictment today charging a Washington man with three counts of assault in the special aircraft jurisdiction of the United States.

    Adam David Seymour was arrested on Wednesday, April 5, 2023, and was originally charged by complaint. The Complaint charged that on April 5, 2023, while aboard Alaska Airlines Flight 49 inbound to Anchorage, Alaska from Seattle, Washington, Adam David Seymour of Seattle, Washington, 37, assaulted a female passenger intending to make sexual contact, and assaulted two male passengers. According to court documents, flight crew had to remove Seymour from his seat and restrain him in the jump seat at the front of the airplane for the remainder of the flight.

    On April 19, 2023, the grand jury indicted Seymour with one count of assault in the special aircraft jurisdiction of the United States, with the intent to commit abusive sexual contact, and two counts of assault in the special aircraft jurisdiction of the United States. If convicted he faces a maximum penalty of 10 years in prison on the count of assault with intent to commit abusive sexual contact, and 6 months in prison on the two assault counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

    The Federal Bureau of Investigation is investigating the case.

    Assistant U.S. Attorney Ainsley McNerney is prosecuting the case.

    An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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  • MIL-OSI Security: North Tonawanda Man Going to Prison for 14 Years for His Role in Drug Conspiracy

    Source: US FBI

    BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Johnny Williams, 32, of North Tonawanda, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 400 grams or more of fentanyl, was sentenced to serve 168 months in prison by U.S. District Judge Lawrence J. Vilardo.

    Assistant U.S. Attorneys Nicholas T. Cooper and Aaron J. Mango, who handled the case, stated that between June and October 2021, Williams conspired with others, including Lairon Graham, to sell fentanyl and crack cocaine from a residence on Liddell Street in Buffalo. While doing so, Williams possessed a firearm on multiple occasions. In August 2021, law enforcement executed a search warrant at a Davey Street residence in Buffalo, which was also used by members of the conspiracy to sell fentanyl and crack cocaine. During the search, investigators recovered approximately 44 grams of fentanyl, approximately 37 grams of crack cocaine, approximately $2,500 cash, and assorted drug paraphernalia. In March 2022, Williams a semi-automatic pistol to fire multiple gunshots at an individual, striking the victim in the upper arm. The Government contends that the shooting was intended to discourage another person from providing information to law enforcement about the narcotics conspiracy. Williams contends that was not his motivation for firing gunshots at the victim.

    Lairon Graham was previously convicted and sentenced to serve 264 months in prison.

    The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; the Lancaster Police Department, under the direction of Chief William Gummo; and the Lackawanna Police Department, under the direction of Chief Mark Packard.

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  • MIL-OSI Security: Haines Man Sentenced for Drug Conspiracy

    Source: US FBI

    JUNEAU – A Haines man was sentenced today to 2 years in prison and 5 years of supervised release for drug conspiracy.

    According to court documents, Fredrick Daniel Folletti, 63, of Haines, Alaska pleaded guilty to drug conspiracy involving the transportation of 79.67 grams of actual methamphetamine from Washington state to Haines, Alaska. Folletti facilitated and arranged the travel of a drug courier located in Washington to acquire methamphetamine to deliver it to Folletti in Haines, Alaska.

    “Drug trafficking has a disproportionate effect in small rural communities in Southeast Alaska,” said U.S. Attorney S. Lane Tucker, District of Alaska. “This sentence serves as a reminder that we will prosecute and hold accountable those who are harming our communities, and with our law enforcement partners, will persist in the disruption of narcotics into this district.”

    U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

    The Southeast Alaska Cities Against Drugs and the Federal Bureau of Investigation investigated the case.

    Assistant U.S. Attorney Jack Schmidt prosecuted the case.

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  • MIL-OSI Security: Ketchikan Man Pleads Guilty to Distribution of Child Pornography

    Source: US FBI

    JUNEAU – A Ketchikan man pleaded guilty to distribution of child pornography charges.

    According to court documents, Walter William Onstad, of Ketchikan, plead guilty to a charge of  distribution of child pornography.  Onstad admitted in court that he was an administrator of a Kik group “Anything Goes,” which was used exclusively for the purpose of distributing child pornography.  As administrator of the group, Onstad solicited images of child pornography to be posted to the group from others as a requirement to be admitted to the group. Once images were verified and approved by Onstad, those individuals were admitted to the group where they had complete access to images of children being sexually exploited on the Kik group “Anything Goes.”

    Onstad was detained at his change of plea hearing pending his sentencing scheduled on August 17, 2023. Onstad faces a mandatory minimum of five years and/or maximum penalty of life in prison and five years to life on supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

    The Federal Bureau of Investigation investigated the case.

    Assistant U.S. Attorney Jack Schmidt is prosecuting the case.

    This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

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  • MIL-OSI Security: Alaska Couple Charged in $700,000 Investment Fraud Scheme Based on Fictitious Alaska Marijuana ‘Bud and Breakfast’

    Source: US FBI

    FAIRBANKS – A federal grand jury in Alaska returned an indictment charging a husband and wife from Delta Junction, Alaska, with conspiracy and wire fraud for perpetrating a years’ long scheme that defrauded nearly two-dozen investors out of over $700,000 dollars.

    According to court documents, from 2017 until 2020, Brian Keith Corty, 52, and his wife Candy Corty, 47, used false and fraudulent claims to solicit investors to buy shares of stock in Ice Fog Holdings, LLC, a company purportedly established to grow, extract, develop, manufacture, and sell products in the medical and recreational marijuana markets in Alaska and other future markets. The defendants purchased the Midway Lodge along the Richardson Highway near Delta Junction, Alaska, and represented to investors that their money would be used to turn it into a “Bud and Breakfast” that would be a “marijuana theme park” and include glass ceilings so Ice Fog’s customers could lie in bed and watch the northern lights. Defendants also represented that they would grow, cultivate, and sell marijuana from the location.

    The defendants and their co-conspirators made numerous material misrepresentations to Ice Fog investors, including that Ice Fog was already generating income via contracts for security services, that Ice Fog would make over $3.85 million in annual sales by year one; over $13.05 million in annual sales by year two; and over $23.24 million by year three with an expected return to investors of 30 times their initial investment. The defendants also represented that inspectors from the Alaska Marijuana Control Office had performed inspections on the Midway Lodge to create the impression that their application to become a licensed marijuana grow and dispensary was in the final stages of approval. Defendants made these representations while knowing that Ice Fog had no meaningful current or prospective revenue stream and little to no prospect to obtain a license from the Alaska Marijuana Control Office.

    Over the course of the scheme, the defendants caused at least 22 individuals to invest in Ice Fog, and raised approximately $722,000 dollars through the sale of “shares” in Ice Fog Holdings, the majority of which the defendants misappropriated for their own personal use.

    U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

    The Federal Bureau of Investigation is investigating this case with assistance from investigators at the Alaska Department of Law. Assistant U.S. Attorneys Ryan Tansey and Tom Bradley for the District of Alaska are prosecuting the case.

    An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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  • MIL-OSI Security: Statement from FBI Anchorage Acting Special Agent in Charge Donald W. Lee II

    Source: US FBI

    “On this national day of awareness, the FBI joins the country and tribal communities in honoring the many Indigenous lives lost to violence, as well as family members who are grieving missing or murdered loved ones in Alaska,” said Acting Special Agent in Charge Donald W. Lee II of the FBI Anchorage Field Office. “Through increased collaboration, victim services, outreach, and training, we uphold our commitment to supporting our tribal and law enforcement partners to find justice and healing for victims, survivors, and families impacted by violence.”

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  • MIL-OSI Security: FBI Honors Anchorage Community Leader with National Award

    Source: US FBI

    On May 5, FBI Director Christopher Wray presented Josie Heyano with the FBI Director’s Community Leadership Award (DCLA) for her service to the people of Alaska. Heyano has made significant contributions not only as an on-site clinical provider at a shelter for youth experiencing homelessness, but also in her tireless efforts to combat human trafficking. 

    The FBI established the DCLA in 1990 to publicly acknowledge the achievements of those working to make a difference in their communities through the promotion of education and the prevention of crime and violence. The FBI’s 56 field offices select the recipients annually for this honor.

    During the May 5 ceremony, Director Wray told the recipients: “Like the 38,000 employees of the FBI, you don’t do what you do for fame—and certainly not for fortune. You do it out of kindness, out of compassion for others, out of a hope and a dream for safer communities … to leave your towns and cities better places than when you got there.  And that’s how I’ve defined success here within our organization, too. Success to me is if everyone leaves the FBI a better place than they found it.”

    Using a collaborative stakeholder approach, Heyano’s human trafficking awareness and response efforts are aimed at the enhancement of data collection across services and disciplines, training opportunities, identification of barriers to screen and identify victims, and gaps in services. She has not only enhanced law enforcement intelligence, collaboration, and training, but also provided essential support to victims of human trafficking, while working to bring justice to those responsible for their exploitation. 

    “It is an honor to receive this award, to serve my community and to work alongside so many fiercely compassionate people,” Heyano said. “Thank you to the FBI for this humbling recognition and to my colleagues, clients and family for their wisdom and support.”

    “FBI Anchorage is honored to recognize Ms. Heyano for her extraordinary efforts serving vulnerable populations in Alaska, where her contributions have enhanced the FBI’s mission of justice and victim support,” said Acting Special Agent in Charge Donald W. Lee II of the FBI Anchorage Field Office. “Through her advocacy and human trafficking response efforts, she has made a lasting impact on our community.”

    Director Wray hosted the 2022 DCLA winners in a special ceremony at FBI Headquarters on May 5 emphasizing the importance of partnerships in keeping our shared communities safe. These partnerships—as exemplified by the breadth of the work by the DCLA recipients—have led to a host of crime prevention programs that protect the most vulnerable in our communities, educate families and businesses about cyber threats, and work to reduce violent crime in our neighborhoods. Learn more about the DCLA program, the FBI’s general outreach efforts, and the Anchorage Field Office online.

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  • MIL-OSI Security: Montana Man Sentenced for Assault on Flight Crew on Flight to Juneau, Alaska

    Source: US FBI

    JUNEAU – A Montana man was sentenced on May 19, 2023, for assaulting a flight crew member on a commercial airline flight while the plane was landing at the Juneau airport. 

    According to court documents, on April 1, 2023, Eric Richard Bruns, 42, was a passenger aboard Alaska Airlines Flight 67 with service from Sitka, Alaska to Juneau, Alaska. While the aircraft was in flight, Bruns started acting erratically and refused crew members instructions to remain seated while the plane was on approach to the Juneau airport. Bruns remained standing in the aisle and began moving towards the front of the aircraft and was physically obstructed by the flight crew member. Bruns made verbal threats to assault the flight crew member and physically tried to shove his way past the flight crew member, striking the crew member with his hands. At that time, while the aircraft was landing at the Juneau airport, two federal law enforcement officers and a civilian assisted the flight crew member and physically restrained Bruns in an unoccupied seat until the plane arrived at the gate.      

    The defendant pled guilty on May 17, 2023, before Chief U.S. Magistrate Judge Matthew S. Scoble to an Information charging Assault in the Special Aircraft Jurisdiction of the United States, in violation 49 U.S.C. § 46506 and 18 U.S.C. § 113. He was sentenced to time served.

    “The safety and security of air travel is paramount, and we will continue to prosecute offenders in order to ensure that all passengers are able to travel without fear of assault or harm,” said U.S. Attorney S. Lane Tucker. “We hope that this case will serve as a warning to others who may consider committing similar acts in the future, and that it will encourage everyone to follow the rules and regulations designed to keep our skies safe and secure.”

    The Federal Bureau of Investigation investigated this case.

    Assistant U.S. Attorney Jack Schmidt prosecuted the case.

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  • MIL-OSI Security: Birmingham Man Found Guilty of Kidnapping Resulting in Death

    Source: US FBI

     BIRMINGHAM, Ala. – A federal jury today convicted a Birmingham man for kidnapping and conspiracy to kidnap a minor victim, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Acting Special Agent in Charge Felix A. Rivera-Esparra.

    The jury returned its guilty verdict against Patrick Devone Stallworth, 42, after three days of testimony before Chief U.S. District Court Judge L. Scott Coogler.  Stallworth was convicted of one count of kidnapping and one count of conspiracy to kidnap a minor victim arising out of events which occurred in October 2019. The jury further found that the minor victim’s death resulted from the kidnapping. Stallworth faces life in prison.

    According to evidence presented at trial, on October 12, 2019, Stallworth traveled in a Toyota Sequoia with a co-conspirator to the Tom Brown Village Housing Development located in Birmingham, Alabama and kidnapped 3-year-old Kamille “Cupcake” McKinney.  Her body was found 10 days later. 

    “Today, the jury held the defendant accountable for his actions in victimizing one of the most vulnerable victims in our community, a 3-year-old child. This office remains dedicated to prosecuting those criminals who prey on children,” U.S. Attorney Escalona said. “Just as the search for the victim involved many of our local, state, and federal partners, the trial this week also would not have been successful without these agencies.  I am grateful for their hard work and dedication.”

    “While today’s verdict does not take away the pain for Kamille’s family, or the void in their life that they can never fill, they at least know we are one step closer to justice being served on those responsible,” Acting SAC Rivera said.

    The Federal Bureau of Investigation and the Birmingham Police Department investigated the case, with assistance from the United States Marshals Service.  Chief of the Criminal Division Lloyd C. Peeples and Assistant U.S. Attorneys Blake Milner and Brittany Byrd prosecuted the case. 

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  • MIL-OSI Security: Birmingham Attorney Pleads Guilty to Possession of Child Pornography

    Source: US FBI

    BIRMINGHAM, Ala. – Chase Tristian Espy, 36, pleaded guilty to possession of child pornography arising out of events that occurred from March 2021 to August 2021, announced United States Attorney Prim F. Escalona and Federal Bureau of Investigation Acting Special Agent in Charge Felix A. Rivera-Esparra.

    U.S. District Judge Annemarie Carney Axon accepted the plea and set sentencing for January 24, 2023, at 9:00 a.m.

    The plea agreement filed states the investigation was initiated when Espy engaged in online chats with undercover law enforcement whom Espy believed was a 15-year-old girl.  Upon being arrested, Espy’s cell phone was seized, and a search warrant was obtained.  From this search, approximately 69 videos and four images of child sexual abuse material were found.

    “The hard work of the agents involved in this case reflect how local, state, and federal law enforcement are committed to protecting children from predators,” U.S. Attorney Escalona said.  “Possessing child pornography is not a ‘victimless’ crime. Each time images of the innocent are shared or viewed, the child is re-victimized.”

    “The FBI is committed to protecting our children from sexual abuse and exploitation, and we will continue to work with our partners to bring to justice those who would prey on our most vulnerable,” Acting Special Agent in Charge Rivera said. “I want to thank the members of the FBI Birmingham Child Exploitation & Human Trafficking Task Force and our partners for their outstanding work in this case.”

    Possession of Child Pornography carries a maximum punishment of 20 years in prison. The U.S. Attorney’s Office will seek imprisonment of Espy consistent with the high end of the advisory United States Sentencing Guideline range as calculated by the Court at the time of sentencing.

    The FBI Birmingham’s Child Exploitation Human Trafficking Task Force (CEHTTF), the Homewood Police Department, and the Alabama Law Enforcement Agency (ALEA) participated in this investigation.  Assistant U.S. Attorneys R. Leann White and Jonathan Cross are prosecuting the case.

    The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.   

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  • MIL-OSI Security: Three Defendants Charged in Separate and Unrelated Gun and Drug Cases

    Source: US FBI

    BIRMINGHAM, Ala. – Federal indictments have been unsealed charging three defendants in separate and unrelated gun and drug cases, announced U.S. Attorney Prim F. Escalona, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French, Drug Enforcement Administration Special Agent in Charge Brad L. Byerley and FBI  Acting Special Agent in Charge Felix A. Rivera-Esparra.

    Last month a federal grand jury indicted three individuals in Northwest Alabama on gun and drug charges.  These indictments are the result of continued collaborative work with our state prosecutors, and federal, state, and local law enforcement partners. 

    A one-count indictment charges Mario Jerrell Prewitt, 34, of Fayette, with illegally possessing a Taurus 9mm pistol on January 21, 2020, in Fayette County.  ATF investigated the case, along with the Alabama Drug Enforcement Task Force (ADETF) Regions C and E, ALEA SWAT, Fayette County Sheriff’s Office, Berry Police Department, and the 24th Judicial Circuit District Attorney’s Office.  Assistant U.S. Attorney Darius C. Greene is prosecuting the case. 

    A two-count indictment charges that on December 5, 2019, in Morgan County, Terry Wayne Thomason, 47, of Falkville, possessed with the intent to distribute 50 grams or more of methamphetamine, and  possessed a firearm, a Braztech 20-gauge shotgun, in furtherance of a drug trafficking crime. DEA investigated the case, along with the Morgan County Sheriff’s Office and Alabama Law Enforcement Agency.  Assistant U.S. Attorney Mary Stuart Burrell is prosecuting the case. 

    A six-count indictment charges that in October 2021 and March 2022, in Limestone County, Eric Cordelle Bass, 34, of Athens,  possessed with the intent to distribute a substance containing a detectable amount of methamphetamine, possessed with the intent to distribute 50 grams or more of methamphetamine, and possessed firearms, that is, a Hi-Point .380 pistol, a Taurus G2C 9mm pistol and a Charter Arms .44 SPL revolver, in furtherance of a drug trafficking crime. Bass was also charged with being a felon in possession of a firearm. FBI investigated the case, along with the Limestone County Sheriff’s Office.  Assistant U.S. Attorney John M. Hundscheid is prosecuting the case. 

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  • MIL-OSI Security: U.S. Attorney Prim F. Escalona Appoints District Election Officer for the Northern District of Alabama

    Source: US FBI

    BIRMINGHAM, Ala. – United States Attorney Prim F. Escalona announced today that Assistant United States Attorney (AUSA) Jason Cheek will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.  AUSA Cheek has been appointed to serve as the District Election Officer (DEO) for the Northern District of Alabama, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

    “Every citizen has the right to vote without interference or discrimination and to have that vote counted in a fair and free election.  Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence,” U.S. Attorney Escalona said.  “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is important that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

    The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

    “The FBI is the primary investigative agency responsible for election-related crimes, like voter fraud and voter suppression,” FBI Acting Special Agent in Charge Felix A. Rivera-Esparra said.  “We will not tolerate criminal activity that threatens the sanctity of your vote or undermines public confidence in the outcome of the election.”

    Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying, and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

    In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Cheek will be on duty in this District while the polls are open.  He can be reached by the public at 205-244-2001.

    In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at 205-326-6166.

    Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .

    Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

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  • MIL-OSI Security: Tuscaloosa Man Sentenced to Seven Years on COVID-19 Program Fraud Charges

    Source: US FBI

    BIRMINGHAM, Ala. – A federal judge today sentenced a Tuscaloosa man for defrauding the Small Business Administration’s Paycheck Protection Program (PPP), announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation  Acting Special Agent in Charge Felix A. Rivera-Esparra. 

    Chief U.S. District Court Judge L. Scott Coogler sentenced Quincy T. Doss, age 41, to 60 months in prison for the underlying PPP loan fraud and an additional 24 months for having committed the offense while on supervised release for other unrelated federal crimes.   Doss will serve his terms consecutively, resulting in a total custodial sentence of 84 months followed by three years of supervised release.  Doss pleaded guilty to wire fraud in June 2022. 

    According to the plea agreement, between April 2021 and November 2021, Doss submitted false and fraudulent PPP loan applications and received two separate PPP loans totaling more than $220,000.  In the loan applications, Doss falsely represented that his business was in operation and had employees for whom it paid salaries, that the funds would be used to retain workers, and that the information provided in the loan applications was true and accurate. 

    “The defendant defrauded a program intended to assist small business owners and their hard-working employees who suffered as a result of the COVID-19 pandemic,” U.S. Attorney Escalona said.  “My office remains committed to investigating, prosecuting, and seeking stiff custodial sentences for those who took advantage of a national crisis to line their own pockets.” 

    “Greed drove Doss to enrich himself by defrauding a government program intended to provide relief  and ease the pain of COVID-19 economic restraints on working Americans,” Acting SAC Rivera said. “The sentence handed down today should serve as a message that the FBI and our partners will not relent in holding accountable those who exploit the PPP and other federal programs for personal gain.”

    FBI investigated the case.  Assistant U.S. Attorney Jonathan “Jack” Harrington prosecuted the case. 

    Throughout the country, federal, state, and local law enforcement are on high alert to investigate reports of individuals and businesses engaging in a wide range of fraudulent and criminal behavior related to coronavirus assistance programs.  For more information about these scams visit https://www.justice.gov/coronavirus/combatingfraud.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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