NewzIntel.com

Category: Intelligence

  • MIL-OSI Security: Kodiak Man’s Murder Convictions Upheld by Court of Appeals

    Source: US FBI

    ANCHORAGE – The Ninth Circuit Court of Appeals has upheld James Wells’ murder convictions which were handed down by a trial jury in October 2019 for the April 2012 murders of two U.S. Coast Guard (USCG) employees, Electrician’s Mate First Class James Hopkins and retired Chief Boatswain’s Mate Richard Belisle at a United States Coast Guard base on Kodiak Island, Alaska.

    In February 2013, Wells was arrested for the murders of Hopkins and Belisle, who were both Wells’ co-workers at the USCG antenna maintenance facility, located at the USCG Communication Station (COMMSTA) on Kodiak Island. Wells was convicted in 2014 and the case was reversed for retrial by the Ninth Circuit Court of Appeals in December 2017. After a three-week retrial that ended in October 2019, a federal jury quickly convicted Wells of two counts of first-degree murder, two counts of murder of an officer or employee of the United States and two counts of possession and use of a firearm in relation to a crime of violence. Wells appealed. In a ruling issued last week, the Ninth Circuit Court of Appeals upheld Wells’ murder convictions, thus Wells sentence of life imprisonment remains in place. The court of appeals issued two separate rulings: 1) affirming the convictions and dismissing Wells’ arguments for a new trial and 2) the court remanded the sentencing court’s decision on valuing how restitution to the spouses of the men Wells murdered would be paid, along with upholding that Wells interview by investigators was done lawfully.

    “The court’s ruling, solidly affirming Wells two murder convictions at trial, puts an end to this saga for the wives of Messrs. Belisle and Hopkins, the colleagues of the murdered men, the community of Kodiak and the United States Coast Guard,” said U.S. Attorney S. Lane Tucker. “Justice has been served. James Wells took the stand and attempted to explain away what he did that day, an explanation that was quickly rejected by the trial jury and by the court of appeals. Wells will spend the rest of his life in prison for the murder of these two men.”

    “We are all relieved to bring final closure on this heinous and heartless crime. Our hearts continue to go out to the families and loved ones of the victims, and to the community of Kodiak for having the strength to endure this lengthy process,” said Paul Shultz, CGIS Special Agent in Charge, CGIS Northwest Region.

    “I’m proud of the trial team’s tireless efforts in the pursuit of justice on behalf of the Hopkins and Belisle families. Now with the Appellate Court’s decision, comes a sense of some closure for all,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. 

    Evidence at trial established that on April 12, 2012, between 7:09 a.m. and 7:14 a.m., Wells had shot and killed Hopkins and Belisle with a .44 revolver while working at their duty stations in the Rigger Shop at COMMSTA. First responders noted no evidence of a break-in or robbery and both men appeared to be victims of a targeted killing. Wells was due to arrive at the Rigger Shop the same time as Hopkins and Belisle, but instead left two phone messages for Hopkins and Belisle, noted to be after the victims’ time of death, stating Wells was running late due to a flat tire. Wells arrived to the Rigger Shop over an hour after his normal start time, immediately claiming to have had a flat tire.

    USCG security videos captured Wells passing the Main Gate at Base Kodiak at 6:48 a.m. in his white Dodge truck on his way toward the Kodiak Airport, and returning toward his residence at 7:22 a.m. However, a small blue SUV, owned by Wells, was captured on USCG security videos passing the Rigger Shop front entrance. The evidence showed Wells drove his white Dodge truck to the airport, where he swapped vehicles and drove Nancy Wells’ blue Honda CR-V to COMMSTA to commit the murders. There was a 34-minute period of time for which James Wells could not account and that unexplained discrepancy captured the attention of the interviewing agents. Additionally, a tire with a nail in it was seized and through extensive testing, the examiner concluded that the nail had been manually inserted into the tire, undermining the foundation of Wells’ alibi that he had picked up a nail while driving to work on the morning of the murders.

    At Wells’ sentencing hearing after the second trial in 2019, U.S. District Judge Sharon L. Gleason made specific findings for the record that Wells threatened or unlawfully interfered with witnesses and that during the trial, Wells testified on several occasions in a “materially false manner.” The ruling of the Ninth Circuit equally found that Wells’ alibi at trial was not credible.

    “I want to thank all of our partner agencies that were involved in the prosecution of this case through the decade of sentencing, retrial, and appeals,” said Rear Adm. Nathan Moore, 17th Coast Guard District, Commander. “Your continued dedication to this case ensured justice was met, and that James’ and Richard’s loved ones and our Coast Guard family can move one step closer to closure.”

    The Federal Bureau of Investigation (FBI) conducted the investigation leading to the successful prosecution of this case, with support from the U.S. Coast Guard Investigative Service (CGIS), and the Alaska State Troopers (AST). 

    In 2019 the Deputy Criminal Chief Steven Skrocki prosecuted the case along with Assistant U.S. Attorney Christina Sherman, and U.S. Coast Guard Commander Kelly Stevens, who was appointed as a Special Assistant U.S. Attorney. 

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  • MIL-OSI Security: Anchorage Man Indicted on Eight Counts of Producing Child Pornography

    Source: US FBI

    ANCHORAGE – A federal grand jury in Alaska returned an indictment charging an Anchorage man with eight counts of sexual exploitation of a child – production of child pornography and one count of possession of child pornography.

    According to court documents, between July 2018 and August 2021, Michael Vernon Ross, 31, allegedly used and coerced a minor to engage in sexually explicit conduct for the purpose of producing child pornography.

    If the public has any further information regarding Ross’s activities, please contact the FBI Anchorage Field Office at    907-276-4441.

    minimum sentence of 15 to 30 years in prison on each count of production of child pornography. 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 FBI and Anchorage Police Department are investigating the case.

    Assistant U.S. Attorneys Seth Brickey-Smith and Adam Alexander are prosecuting the case.

    This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

    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 Security OSI –

  • MIL-OSI Security: FBI Participating in Alaska HIDTA Initiative Campaign to Combat Drug Trafficking

    Source: US FBI

    The FBI Anchorage Field Office is participating in a statewide advertising campaign, launched by the Alaska High Intensity Drug Trafficking Area (HIDTA) initiative, designed to help communities partner with law enforcement in the fight against drug trafficking in Alaska. This law enforcement effort follows reports that, between 2020 and 2021, Alaska experienced the largest percent increase of drug overdose deaths of any state in the United States.

    Recognizing that no single agency can fight this battle alone, the FBI Anchorage Field Office joined other participating HIDTA law enforcement agencies for a team approach to remove illicit fentanyl and other dangerous drugs from communities in Alaska. As part of these efforts, the agencies launched a comprehensive advertising campaign designed to empower Alaskans to report suspicious drug trafficking activities and behaviors to law enforcement. By doing so, Alaskans can help save countless lives from overdose, as law enforcement works to mitigate the threat of illicit fentanyl and other dangerous drugs across Alaska.

    “This crisis demands full attention from both law enforcement and the public, for illicit fentanyl is causing untold damage to families and entire communities in Alaska, and across the nation,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “With law enforcement’s united front, along with deviceful measures to improve public safety and public awareness, together with our communities, we can fight the flow of fentanyl and other dangerous drugs that are being trafficked throughout the state.”

    Participating HIDTA law enforcement agencies are encouraging the public to report suspicious drug trafficking activity to AKtips, which can be done quickly online while remaining anonymous. Just download the AKTips smartphone app for iOS or Android. Alternatively, you can submit a tip securely online at the following website: akhidta.org or text the keyword AKTIPS, followed by your crime tip to 847411.

    The Alaska HIDTA program, designated in May 2018, is spread throughout the state, and includes partnerships between local, state, and federal law enforcement agencies. More information about the Alaska HIDTA Initiative and participating agencies can be found at akhidta.org.

    MIL Security OSI –

  • MIL-OSI Security: Five Members and Associates of White Supremacist Gang Sentenced to Life in Prison for Racketeering, Kidnapping, and Murder

    Source: US FBI

    ANCHORAGE, ALASKA – Filthy Fuhrer, formerly Timothy Lobdell, 46; Roy Naughton, aka Thumper, 44; Glen Baldwin, aka Glen Dog, 41; Colter O’Dell, 30; and Craig King, aka Oakie, 57, were sentenced this week in Alaska to life in prison without the possibility of parole. All five defendants were convicted of racketeering conspiracy, conspiracy in aid of racketeering, murder in aid of racketeering, kidnapping resulting in death, and kidnapping conspiracy. Fuhrer and Naughton were also each convicted of an additional two counts of kidnapping conspiracy, kidnapping, and assault in aid of racketeering.

    Evidence presented at trial showed that the defendants were leaders, members, and associates of the 1488s, a violent, prison-based Neo-Nazi gang that operated inside and outside of state prisons throughout Alaska. The 1488s used Nazi-derived symbols to identify themselves and their affiliation with the gang, including a 1488 “patch” tattoo that depicts an Iron Cross superimposed over a swastika. The tattoo was awarded to members who gained full membership by committing acts of violence on behalf of the gang. The gang enforced discipline through written rules and a code of conduct, including the boast that “the only currency we recognize is violence and unquestionable loyalty.”

    The trial testimony established that Fuhrer founded and led the 1488 gang from inside a maximum-security prison, where he was serving a 19-year sentence for the attempted murder of an Alaska State Trooper. In addition to directing acts of violence aimed at establishing the gang’s dominance in the prison hierarchy, Fuhrer ordered members of the gang to commit violent kidnappings and assaults in the “free world” outside of prison. As part of a plan to impose greater organization and structure among non-incarcerated members, Fuhrer insisted on punishing members that he perceived to be defying the 1488 code of conduct thereby diminishing the power, influence, and reputation of the gang. Fuhrer sent out a trusted lieutenant with a list of directives, which culminated in the kidnapping and assault of two lower-level gang members on April 2, 2017, and July 20, 2017, and the kidnapping, assault, and murder of Michael Staton on Aug. 3, 2017.

    According to the trial evidence, on April 2, 2017, defendant Roy Naughton and other 1488 members, acting at the direction of Fuhrer, lured a victim to a gang meeting at Naughton’s residence.  Once there, the victim was taken into a basement where he was held at gun point, tied up, and assaulted. As part of the assault, the gang members shattered a light bulb in his mouth and tattooed him with a racial epithet. The victim was threatened with more violence if the incident was reported to police.

    In addition, the evidence at trial demonstrated that on July 17, 2017, Fuhrer called Naughton from prison. During the call Naughton boasted about the April 2 assault and reported to Fuhrer that another member would be assaulted in the next few days. On July 20, 2017, a second victim was similarly assaulted and had his 1488 membership patch burned off.

    Evidence also showed that in 2016 Naughton asked for and received permission from Fuhrer to impose exceptionally severe discipline on 1488 member Michael Staton, who held himself out as a member of the Hells Angels Motorcycle Club, for stealing from both the 1488’s and defendant Craig King.  Naughton, King, and defendants Glen Baldwin and Colter O’Dell worked with other 1488 members to locate, kidnap, and murder Staton. On August 3, 2017, 1488 members, including Baldwin and O’Dell, lured Staton to Wasilla where they beat him and took him to King’s duplex. After arriving, Staton was taken to an empty room which had been lined with plastic sheeting. Inside the room King and the 1488s beat and tortured the victim, including cutting off his 1488 tattoo with a knife that had been heated with a propane torch. The defendants wrapped Staton in the plastic and carpeting, and Baldwin and O’Dell drove him to a remote section of Wasilla where they shot him and set fire to his body. O’Dell was awarded full membership in 1488s for his role in the murder.

    “The United States Attorney’s Office will use every tool at its disposal to combat and dismantle violent criminal enterprises,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “These life sentences reflect the seriousness of the defendants’ conduct in the maiming of two individuals and the brutal murder of a third, all in order to strengthen their hate-based criminal enterprise. We will continue to work tirelessly with our federal, state and local investigative partners to ensure those engaging in such loathsome crimes are caught and prosecuted to the fullest extent of the law.” 

    “With federal life sentences imposed on five defendants who were associated with a violent, hate-driven gang, Alaska’s law enforcement community has delivered a devastating blow to the 1488 criminal enterprise,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “Dismantling violent, criminal organizations is a priority for the FBI, and a goal that is shared among our law enforcement and prosecution partners across Alaska.”

    The FBI’s Safe Streets Task Force, and the Alaska State Troopers, Alaska Bureau of Investigation, investigated the case in conjunction with the U.S. Attorney’s Office for the District of Alaska and the Criminal Division’s Organized Crime and Gang Section (OCGS). Investigative assistance was provided by the IRS Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service, the U.S. Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Anchorage Police Department (APD), and the State of Alaska’s Department of Corrections.

    Assistant U.S. Attorneys William Taylor, James Klugman and Chris Schroeder and Trial Attorney Jeremy Franker of OCGS prosecuted the case.

      usao/ak/23-03

    MIL Security OSI –

  • MIL-OSI Security: Chugiak Man Indicted for Sexually Exploiting Children

    Source: US FBI

    ANCHORAGE – A federal grand jury returned an indictment on February 23, 2023, charging Jeremy Scott Daniels, 37, of Chugiak for crimes involving the sexual exploitation of children.

    The indictment and additional details set out in court documents filed by the government allege that, in December 2021, Daniels used social media to entice and induce a minor to engage in sexually explicit activity and produce child pornography with him. The filings further allege that in October 2010, Daniels communicated online with undercover law enforcement, unbeknownst to him, and attempted to entice a fictitious child, whom he believed to be an 8-year-old girl, to engage in sexually explicit activity with him. The same filings also allege that Daniels distributed, received, and possessed child pornography at various points throughout 2020 and 2022. Between May and June 2020, on ten occasions, Daniels used the messaging application Kik to transmit child pornography videos to other users. On January 28, 2022, the date of Daniel’s arrest, the FBI also recovered child pornography involving prepubescent minors on Daniel’s cellphone.

    If the public has any further information regarding Daniels’s activities, please contact the FBI Anchorage Field Office at 907-276-4441.

    Daniels was previously taken into federal custody on January 28, 2022, following the government’s filing of a complaint. The indictment charges Daniels with production of child pornography; coercion and enticement; and distribution, receipt and possession of child pornography. The defendant previously made his initial court appearance on the complaint on February 2, 2022, before U.S. Chief Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska. If convicted, Daniels faces a mandatory minimum penalty of 15 years imprisonment and maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

    The Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force conducted the investigation leading to the indictment in this case.

    Assistant U.S. Attorney George Tran is prosecuting the case.

    This case was 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.  

    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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    usao/ak/23-011

    MIL Security OSI –

  • MIL-OSI Security: Assault on Border Patrol Agents Results in Lengthy Sentence

    Source: US FBI

    TUCSON, Ariz. – Jorge Zazueta-Miranda, 51, of Agua Prieta, Sonora, Mexico, was sentenced last week by United States District Judge Rosemary Márquez to 90 months in prison. The sentence is to run consecutive to a previous Illegal Re-Entry of a Removed Alien conviction and sentence from New Mexico. Zazueta-Miranda pleaded guilty to Assault on a Federal Officer with a Dangerous Weapon on June 23, 2023.

    On April 1, 2020, U.S. Border Patrol agents near Douglas observed two yellow, cloned “construction” trucks with construction company logos on the sides. Agents stopped one truck, which contained 19 undocumented non-citizens. The second truck, driven by Zazueta-Miranda, failed to stop and sped up. Zazueta-Miranda drove at high speeds through the city of Douglas to the airport area, then continued along the border road into the rugged desert area. A Border Patrol agent attempted to intercept the truck, but Zazueta-Miranda deliberately turned towards the agent’s vehicle and collided with it striking the rear quarter panel. Zazueta-Miranda backed up and then drove towards a break in the U.S. border wall, striking a second agent’s vehicle. Zazueta-Miranda and several undocumented non-citizens jumped out of the truck and fled through the break in the border wall, successfully fleeing into Mexico. Agents recovered a latent print from the driver’s side door belonging to Zazueta-Miranda. A witness, who had been abandoned in the second cloned construction truck, identified Zazueta-Miranda, by a photo, as the driver, and an arrest warrant was issued. Almost two years later, on February 9, 2022, Zazueta-Miranda was arrested in New Mexico after being caught near the New Mexico – Mexico border.

    The Federal Bureau of Investigation, Sierra Vista field office, with assistance from Customs and Border Protection’s United States Border Patrol, conducted the investigation in this case. Assistant U.S. Attorneys Serra M. Tsethlikai and Evan N. Wesley, District of Arizona, Tucson, handled the prosecution.
     

    CASE NUMBER:           CR-22-00681-TUC-RM
    RELEASE NUMBER:    2023-206_Zazueta-Miranda

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    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI Security: Serial Bank Robber Sentenced to 109 Months

    Source: US FBI

    PHOENIX, Ariz. – Vivian A. Earle, 42, of Phoenix, was sentenced yesterday to 109 months in prison by United States District Judge G. Murray Snow. Earle was convicted on five counts of Bank Robbery by a jury on June 30, 2023.

    Between April and August of 2019, while in Phoenix, Earle robbed five banks, including Wells Fargo, Chase, and Bank of America, taking over $34,000. After the last robbery, a bank customer followed Earle’s vehicle from the parking lot and called 911. Phoenix Police responded and followed Earle until they apprehended him.  

    The Federal Bureau of Investigation and the Phoenix Police Department conducted the investigation in this case. Assistant United States Attorneys Gayle Helart and Anthony Church, District of Arizona, Phoenix, handled the prosecution.
     

    CASE NUMBER:           CR-19-01121-PHX-GMS
    RELEASE NUMBER:    2023-207_Earle

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    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI Security: Money Launderer Sentenced to Prison for Role in Online Scams

    Source: US FBI

    TUCSON, Ariz. – Whitney Adams, 27, of Hagerstown, Maryland, was sentenced last week by United States District Judge John C. Hinderaker to 48 months in prison and ordered to pay over $1 million in restitution to 17 victims. Adams pleaded guilty to Conspiracy to Commit Money Laundering on May 16, 2023.

    Between January 2021 and April 2022, Adams laundered money for scammers who lured victims into various online frauds. In some instances, the victims believed they were sending money to support an online romantic partner who falsely stated they needed to pay taxes and fees to release an inheritance or gold bars. The stories told to the victims by the scammers were fraudulent. The scammers directed the victims’ monies into accounts controlled by Adams and her co-conspirator. When Adams and her co-conspirator received the fraudulent monies, they kept a fee for themselves, and then transferred the funds, via trade-based money laundering or other means, to Ghana. Adams and her co-conspirator set up phony businesses and then opened business bank accounts to hide the transfer of the fraudulently obtained funds. The FBI traced $4,437,604, sent by 106 victims, through Adams’ and her co-conspirator’s bank accounts. One Arizona victim lost nearly $5 million to the scams, sending over $1 million to Adams’ and her co-conspirator’s accounts and the remaining money to multiple other individuals. Adams’ co-conspirator pleaded guilty to Conspiracy to Commit Money Laundering and is scheduled to be sentenced on January 18, 2024.

    This case was prosecuted as part of the U.S. Department of Justice’s (DOJ) Elder Justice Initiative. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This DOJ hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step and can help authorities identify fraudsters and recoup losses. The hotline is staffed 10 a.m. to 6 p.m. Eastern Time, Monday-Friday. English, Spanish, and other languages are available.

    The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, Tucson, handled the prosecution.
     

    CASE NUMBER:           CR-22-00893-JCH-2
    RELEASE NUMBER:    2024-002_Adams

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    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI Security: Serial Bank Robber Arrested After String of Robberies

    Source: US FBI

    PHOENIX, Ariz. – Justin Eric Lindsay, 28, was arrested Saturday morning by the Federal Bureau of Investigation for a string of bank robberies committed between August 12, 2023, and January 6, 2024. Lindsay was charged by federal criminal complaint with committing five bank robberies and one attempted bank robbery.

    The complaint alleges that, since August 2023, Lindsay has robbed five banks, including branches of Chase and U.S. Bank. According to the complaint, Lindsay would enter a bank and hand a teller a demand note for money. At four of the robberies, Lindsay claimed he had a gun, although no firearm was ever shown. On Saturday, Lindsay was arrested shortly after robbing a U.S. Bank branch in Mesa.  

    A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. The United States will have up to 30 days from arrest to seek an indictment of Lindsay.

    The Federal Bureau of Investigation conducted the investigation in this case, with assistance from the Mesa and Tempe police departments. Assistant United States Attorney Ben Goldberg, District of Arizona, Phoenix, is handling the prosecution.
     

    CASE NUMBER:           24-09042MJ
    RELEASE NUMBER:    2024-004_Lindsay

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    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI Security: Internal Revenue Service Special Agent Indicted in Shooting Death of Fellow Agent

    Source: US FBI

    TUCSON, Ariz. – On Wednesday, a federal grand jury indicted Larry Edward Brown, Jr., 42, of Peoria, on one count of Involuntary Manslaughter of an Officer of the United States.

    The indictment alleges that on August 17, 2023, Special Agents of the Internal Revenue Service Criminal Investigation (IRS-CI) used the firearm range at the Federal Correctional Institution – Phoenix for standard pistol qualifications and classroom training. Brown, who has served as a special agent for IRS-CI for over 12 years, is a trained Use of Force Instructor.

    After all training had concluded for the day, Brown entered a building known as the “Tower,” a small, one-room structure with an interior measuring approximately eight feet by nine feet, located on the range where firearms instructors can observe and command live-fire trainings. The only other occupant inside the Tower was Special Agent Patrick Bauer, a 15-year veteran of IRS-CI and a trained Use of Force Instructor, who had led the live-fire pistol qualifications that day. As alleged in the indictment, while inside the Tower, Brown handled his firearm without due caution and with reckless disregard for human life, striking Special Agent Bauer in the torso with a single gunshot.

    Despite life-saving efforts by agents at the scene, EMTs, and hospital staff, Special Agent Bauer died as a result of the penetrating gunshot wound.

    Brown had his initial court appearance today and has been released. The matter has been set for trial on April 2, 2024.

    Involuntary Manslaughter of an Officer of the United States carries a maximum penalty of eight years in prison and a fine of up to $250,000.

    An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

    The Federal Bureau of Investigation conducted the investigation in this case, with assistance from the Treasury Inspector General for Tax Administration. The United States Attorney’s Office for the District of Arizona, Tucson, is handling the prosecution.

    CASE NUMBER:           CR-24-00355-PHX-SPL
    RELEASE NUMBER:    2024-024_Brown

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    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI Security: Two Arkansas Men Sentenced to More Than 23 Years Combined in Federal Prison for Fraud and Money Laundering in Connection with Proposed Elm Springs, Arkansas Wind Farm

    Source: US FBI

    FAYETTEVILLE – Two Arkansas men were sentenced today to federal prison for Wire Fraud, Aiding and Abetting Wire Fraud, Money Laundering and Aiding and Abetting Money Laundering in connection with the development of a wind turbine that was never operational and a proposed wind farm project in Elm Springs, Arkansas, that was never constructed. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.

    Jody Douglas Davis, 47, of Searcy, Arkansas, was sentenced to 180 months in prison followed by three years of supervised release and ordered to pay $1,138,845.28 in restitution and Phillip Vincent Ridings, 64, of North Little Rock, Arkansas, was sentenced to 97 months in prison followed by three years of supervised release and ordered to pay $1,138,845.28 in restitution.

    “This case represents some of the most important work that we do,” said United States Attorney Clay Fowlkes.  “These defendants developed a scheme for the purposed of stealing large sums of money from innocent investors.  The defendants in this case used lies and misrepresentations to trick investors into paying them large amounts of money that they converted for their own, personal use.  We will continue to work with our Federal Law Enforcement partners at the FBI and the IRS to investigate and prosecute cases like this.  We will also continue to work tirelessly to protect others from similar schemes to defraud.” 

    “Mr. Davis and Mr. Ridings callously defrauded members of our community through a fictional investment opportunity,” said FBI Little Rock Special Agent in Charge James A. Dawson. “Even after being federally indicted, these men continued to advance their criminal scheme through blatant falsehoods and deceit. Today’s sentencings send a clear message to other fraudsters: preying upon our Arkansas communities will not stand.”

    “Davis and Ridings stole money from investors and used it for their personal use with no intention of building the wind farm project.,” said Special Agent in Charge Christopher J. Altemus Jr., IRS-CI Dallas Field Office. “This sentencing should detour criminals from committing similar crimes.”

    According to court documents and evidence presented at trial, Davis, and Ridings, formed a limited liability company in Texas in 2014 called Dragonfly Industries International, LLC (“Dragonfly”) and Arkansas Wind Power (“AWP”), an Arkansas limited liability company located in Springdale, Arkansas, to develop what they told investors was a revolutionary wind turbine design that was to be installed on a 311-acre wind farm proposed for construction in Elm Springs, Arkansas.  

    According to the superseding indictment, Davis and Ridings conspired with Cody Fell of Springdale, Arkansas, and others, beginning as early as June 2014 and continuing through and including March 2018, to obtain money from investors who were told that the investors’ money would be used to build a prototype of the wind turbine and develop wind farms in Elm Springs, Arkansas, in Iowa, and other states.  The evidence presented at trial showed that Davis and Ridings used most of the $700,000 they obtained from investors for Davis’ and Ridings’ personal use.  Specifically, evidence at trial revealed that investors were told that Dragonfly’s wind turbine could produce more energy than the traditional three-blade wind turbines commonly used on existing wind farms;  that nationally recognized engineering firms and a University of Memphis mechanical engineering professor had “validated” the Dragonfly wind turbine’s design; that the Department of Defense has expressed strong interest in acquiring Dragonfly’s wind turbines for use in combat zones; that a prototype of the wind turbine was nearing completion; that leaders of underdeveloped countries were ready to buy Dragonfly’s wind turbines; and that a $10 million grant from the Department of Energy was soon to be awarded to Dragonfly, when in truth and fact, none of these representations were true.

    A federal jury convicted Davis and Ridings on September 3, 2021.

    The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.

    Assistant U.S. Attorneys Kyra Jenner and Kenneth Elser prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Two Arkansas Men Sentenced to More Than 29 Years Combined in Federal Prison for Drug Trafficking

    Source: US FBI

    FORT SMITH – Two Arkansas men have been sentenced to federal prison for the Distribution of Methamphetamine. The Honorable Judge P.K. Holmes, III, presided over the sentencing hearings in the United States District Court in Fort Smith.

    In March 2021, Agents with the FBI launched an investigation into drug trafficking in the Western District of Arkansas. Between the months of March and June of 2021, agents conducted controlled purchases of methamphetamine from Omar Perez and David Franks.  According to court documents, the investigation of Perez and Franks was completed on June 23, 2021, when the parties were discovered to be in the process of completing a two-kilogram methamphetamine transaction in the parking lot of a shopping center in Fort Smith.  Upon the arrest of both parties, approximately two kilograms of methamphetamine, $17,000 in cash, a firearm and ammunition were seized.

    Omar Perez, age 30, of Waldron, Arkansas, was sentenced today to 210 months in prison followed by 5 years of supervised release on one count of Distribution of More than 500 Grams of Methamphetamine.

    David Allen Franks, age 40, of Fort Smith, Arkansas, was sentenced today to 140 months in prison followed by 5 years of supervised release on one count of Distribution of a Mixture or Substance Containing Methamphetamine.

    U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

    The FBI and Fort Smith Police Department investigated the case.

    Assistant U.S. Attorney Brandon Carter prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Former Sheriff of Franklin County, Arkansas Sentenced to Four Years in Federal Prison for Assaulting Two People in Custody

    Source: US FBI

    FAYETTEVILLE – Former Franklin County, Arkansas, Sheriff Anthony Boen, 51, was sentenced today to 48 months in prison, followed by two years of supervised release, for assaulting two individuals in his custody. After a six-day trial in August 2021, a jury in the Western District of Arkansas convicted Boen of two counts of deprivation of rights under color of law.

    Evidence presented at trial established that Boen used unreasonable force to punish pretrial detainees on two separate occasions.  On Dec. 3, 2018, Boen struck a detainee multiple times in the head with a closed fist while the detainee was sitting on the floor and shackled to a bench inside the Franklin County Jail.  Several minutes later, Boen returned to the detainee’s cell and struck him in the head again, then spit on him.  On Nov. 21, 2018, Boen slammed a detainee onto the floor and ripped his hair during an interrogation.  Both detainees suffered bodily injury as a result of Boen’s actions.  During the subsequent investigation of these offenses, Boen contacted officers who witnessed his assaults and pressured them not to provide truthful information to investigators. 

    “Anthony Boen swore an oath to support the United States Constitution and the State of Arkansas Constitution,” said U.S. Attorney David Clay Fowlkes of the Western District of Arkansas.  “His actions clearly violated not only the civil rights of these individuals but also the trust of the people of Franklin County. Cases like this are very important to our office because they involve the most personal and basic of civil rights: the rights to be protected and unharmed while in the custody of law enforcement officers. Today’s sentencing shows that justice will prevail in cases where a person’s civil rights are violated. We will continue to vigorously pursue cases involving the violation of basic civil rights that should be afforded to everyone.”

    “No one is above the law, especially high-ranking law enforcement officers who have a duty to uphold the Constitution and protect individuals in their custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant abused his power as sheriff by assaulting the people he was sworn to protect and pressuring his subordinates to cover

    up his crimes. The Justice Department will continue to vigorously prosecute law enforcement officials who violate people’s civil rights.”

    “When former Sheriff Boen brutally assaulted individuals in his custody and violated their civil rights, it impacted all Arkansans and their trust in authorities,” said FBI Little Rock Special Agent in Charge James A. Dawson. “The FBI is committed to maintaining the public’s trust in law enforcement. With today’s sentencing of Mr. Boen, our community knows we will aggressively investigate and bring to justice any law enforcement officer who would violate the rights of their fellow Americans.”

    The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brandon T. Carter and Civil Rights Division Trial Attorney Michael J. Songer.

    MIL Security OSI –

  • MIL-OSI Security: Harrell, Arkansas Man Sentenced to More Than 11 Years in Federal Prison for Drug Trafficking

    Source: US FBI

    EL DORADO – A Harrell man was sentenced today to 140 months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.

    According to court documents, on or about August 12, 2020, investigators with the 13th Judicial District Drug Task Force and the Federal Bureau of Investigation (FBI) conducted a controlled purchase of methamphetamine from Antonio Bush, age 40. The methamphetamine field tested positive and was sent to the crime lab for further testing.      

    U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

    The 13th Judicial District Drug Task Force and the FBI investigated the case.

    Assistant U.S. Attorney’s Kim Harris and Graham Jones prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Magnolia Man Sentenced to Six Years in Federal Prison for Drug Trafficking

    Source: US FBI

    EL DORADO – A Magnolia man was sentenced today to 72 months in prison followed by three years of supervised release on one count of Distribution of Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.

    According to court documents, on or about September 4, 2020, investigators with the 13th Judicial District Drug Task Force and the Federal Bureau of Investigation (FBI) conducted a controlled purchase of methamphetamine from Rasheed Rahid Muhammad, age 50. The methamphetamine field tested positive and was sent to the crime lab for further testing.      

    U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

    The 13th Judicial District Drug Task Force and the FBI investigated the case.

    Assistant U.S. Attorney’s Kim Harris prosecuted the case.

    This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

    MIL Security OSI –

  • MIL-OSI Security: Santa Maria Man Charged in Federal Complaint Alleging He Injured Five People in Bomb Attack in Lobby of County Courthouse

    Source: US FBI

    LOS ANGELES – A Santa Barbara County man was charged today in a federal criminal complaint alleging he committed a bomb attack at a courthouse in Santa Maria on Wednesday, in which at least five people were injured.

    Nathaniel James McGuire, 20, of Santa Maria, is charged with maliciously damaging a building by means of explosive. 

    McGuire, who was arrested Wednesday shortly after the attack, is expected to make his initial appearance Friday afternoon in United States District Court in downtown Los Angeles. 

    According to an affidavit filed with the complaint, on September 25, McGuire entered a courthouse of Santa Barbara County Superior Court and threw a bag into the lobby. The bag exploded and McGuire left the courthouse on foot. The explosion injured at least five people who were present at the courthouse at that time.

    Shortly thereafter, McGuire was apprehended and detained by Santa Barbara County sheriff’s deputies as he was trying to access a red Ford Mustang car parked outside the building. McGuire allegedly yelled that the government had taken his guns and that everyone needed to fight, rise up, and rebel.

    Inside the car, a deputy saw ammunition, a flare gun, and a box of fireworks. A search of the car revealed a shotgun, a rifle, more ammunition, a suspected bomb, and 10 Molotov cocktails. Law enforcement later rendered the bomb safe.

    A search of McGuire’s residence revealed an empty can with nails glued to the outside, a duffel bag containing matches, black powder, used and unused fireworks, and papers that appeared to be recipes for explosive material.

    “This defendant’s alleged misconduct was chilling,” said United States Attorney Martin Estrada. “Not only did he injure five people and traumatize many more, but he possessed a cache of weapons that would have allowed him to wreak even greater destruction had he not been stopped. Attacks on our courts, law enforcement officers, and other public servants are unacceptable, and it is critical that those who carry out such assaults be prosecuted to the fullest extent.”

    “The idea of intentionally setting off an explosive device to do harm and avoid justice in the process shocks the conscience,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “Make no mistake, we are committed to holding Mr. McGuire accountable for this blatant act of violence. As always, we encourage the public to remain vigilant and to promptly report suspicious activities which could represent a threat to public safety.”

    “This was a shocking and unprecedented crime in our county, but, in spite of its audacity, the security of the Santa Maria courthouse was maintained,” said Santa Barbara County Sheriff Bill Brown. “The suspect was swiftly apprehended by a court security officer, a sheriff’s deputy, two California Highway Patrol officers, and a district attorney’s investigator; we are proud of their resolute actions that almost certainly prevented further violence. We are also grateful for the substantial investigative assistance that has been provided by our colleagues with the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and from U.S. Attorney Martin Estrada and his office.”

    A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

    If convicted, McGuire would face a mandatory minimum sentence of seven years in federal prison and a statutory maximum sentence of 40 years in federal prison.

    The FBI and the Santa Barbara County Sheriff’s Office are investigating this matter.

    Assistant United States Attorneys Mark Takla and Kathrynne N. Seiden of the Terrorism and Export Crimes Section are prosecuting this case with substantial assistance from Trial Attorney Patrick Cashman of the Counterterrorism Section in the Department of Justice’s National Security Division.

    MIL Security OSI –

  • MIL-OSI Security: Friend and Business Partner of GirlsDoPorn Owner Michael Pratt Sentenced to 14 Years in Prison

    Source: US FBI

    NEWS RELEASE SUMMARY – March 19, 2024

    SAN DIEGO – Matthew Isaac Wolfe was sentenced in federal court today to 14 years in prison for his role in a conspiracy with Michael Pratt, owner of the website GirlsDoPorn, and others, to deceive and coerce young women into appearing in pornographic videos. A restitution hearing is scheduled for May 7, 2024 at 10 a.m.

    The conspiracy included recruiting the victims from throughout the United States and Canada using internet advertisements for clothed modeling jobs. Even after the victims learned the gig involved an adult video-shoot, Wolfe admitted to persuading women to appear in the videos by telling them that the videos would never be posted online, that the videos would never be released in the United States, and that no one who knew the women would ever find out about the videos, representations he knew to be false. In truth, the videos were exclusively marketed and distributed on the internet. Not only did Wolfe lie to the women, he also instructed others to do so. Wolfe told co-defendant Theodore Gyi, the cameraman on hundreds of GirlsDoPorn video shoots, that if asked, he should lie to the women and tell them the videos would not be posted on the internet.

    Most of the video shoots took place in San Diego – at local hotels and short-term rental units.  Although the women were promised that the video shoots would be brief, they often took hours. Once the video productions began, some women were not permitted to leave the shooting locations until the videos were completed; some were threatened with lawsuits or cancelled flights home if they did not complete the videos; and others were allegedly forced to perform certain sex acts, which they had earlier declined to do.

    After the victims returned home, still believing that they would remain anonymous, clips of the videos were posted on heavily trafficked adult film sites, like Pornhub, meant to funnel viewers to the full-length versions of the videos on Pratt’s website, GirlsDoPorn. Pratt charged visitors to GirlsDoPorn a subscription fee and generated more than $17 million in revenue. 

    Wolfe pleaded guilty to the conspiracy on July 26, 2022, admitting he moved to the United States from New Zealand in 2011 to work for Pratt and had a wide range of responsibilities. He filmed approximately 100 videos; uploaded finished videos onto the internet; oversaw the company’s financial books; and operated various business entities that were used to promote the business. Wolfe worked at GirlsDoPorn from 2011 until his arrest in October 2019.

    During hearings today and on January 22, 2024, approximately 30 survivors asked a federal judge to impose a significant sentence, describing how the actions of Wolfe and his co-defendants destroyed their lives. Survivors, many of them college students at the time, described answering what they thought were legitimate modeling ads and flying to San Diego for paid modeling gigs, only to be forced to perform sexual acts on camera.

    The women spoke of struggling with substance and alcohol abuse, anxiety and depression, suicidal thoughts and attempts, and post-traumatic stress syndrome in the aftermath of their videos going viral. Some spoke of lost relationships with friends and family; others dropped out of school; and others went into hiding.

    One of the women said: “I was robbed of my privacy, my dignity, and my peace of mind… But worst of all, I was robbed of my identity. I was once viewed as a beautiful, fun-loving and strong woman who was known for her athleticism and ability to make just about anyone laugh. I was a caring friend and a daughter my parents were proud of. Mr. Wolfe shattered who I was…Today I’m taking my identity back. I am not a victim. I’m a survivor.”

    One woman recalled the day she learned that her pornographic video received more than 300 million views on Pornhub, one of the most-visited websites in the world.

    “That ad seemed harmless, but it wrecked my entire life. In an instant, the life I had was gone: My hopes gone, my relationships gone, everything was gone…The fall-out from the videos spread to every part of my life like cancer, and that cancer remains to this day, making it virtually impossible for me to start a new life. I lost my modeling career, my college years, my whole twenties, my name, my career path, my friends, and my family. Everything I had built was gone, and so too was my future. Doors that were once opened were slammed in my face…Matthew Wolfe stole my life, and it wasn’t just my life. He stole hundreds of lives. What kind of price do you put on a life? Mr. Wolfe deserves a jail sentence that accounts for each and every life he has stolen.”

    Another woman told the court: “It’s been nearly 3,650 days of living in a tortuous purgatory, but today marks a major milestone in my recovery. Today there’s a shift in the winds. Today is the day all the survivors get their voices back. Today is the day we get to be heard.”

    Wolfe also admitted he was aware that personal identifying information and social media accounts for some women were being posted on pornwikileaks.com, a site controlled by Pratt and dedicated to “exposing” the true identities of individuals appearing in pornographic videos, causing the victims to be subjected to severe harassment. Even after Wolfe became aware of this, he and others continued to assure prospective models that no one would ever find out about their video shoot or learn their identity.

    “We applaud all survivors who courageously speak out in pursuit of justice,” said U.S. Attorney Tara McGrath. “Their voices rang out in the courtroom today, and we stand beside them in holding Mr. Wolfe accountable for the incredible pain and suffering he caused.”

    “Matthew Wolfe’s willingness to use deception, coercion and intimidation to exploit young women paints a sordid picture of the lengths some people will go just to make money,” said FBI San Diego Special Agent in Charge Stacey Moy. “Wolfe’s sentencing today, and any past or future sentencings related to this case, are small slivers of justice for the victims, but ultimately don’t fully heal the deep pain spawned by Mr. Wolfe and the other defendants.”

    Co-defendant Michael Pratt made his first appearance today after being extradited from Spain following more than three years as an international fugitive. In 2022, Pratt was named to the FBI’s Top Ten Most Wanted list.

    Ruben Andre Garcia, the recruiter and male model, was sentenced to 20 years in prison on June 14, 2021. Theodore Gyi was sentenced to four years in prison on November 9, 2022. Valorie Moser, the office manager, is set for sentencing on August 9, 2024.

    DEFENDANTS                                             Case Number 19cr4488                       

    Michael James Pratt                                        Age:       36                 Unknown

    Matthew Isaac Wolfe                                      Age        37                     San Diego, CA

    Ruben Andre Garcia                                       Age:       31                      San Diego, CA

    Theodore Gyi                                                  Age,       46                        Solana Beach, CA  

    Valorie Moser                                                 Age:       37                       San Diego, CA

    CHARGES

    Count 1

    Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594

    Maximum Penalty:  Life in prison, $250,000 fine.

    INVESTIGATING AGENCIES

    FBI – Southern District of California

    U.S. Marshals Service

    *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: GirlsDoPorn Owner Michael Pratt Extradited to Face Sex Trafficking Charges

    Source: US FBI

    SAN DIEGO – Michael Pratt, the alleged mastermind behind the GirlsDoPorn commercial sex trafficking ring, made his first appearance in federal court today following his extradition from Spain Monday night.

    Pratt, who was the owner of the website GirlsDoPorn, was charged in October 2019 in the Southern District of California with sex trafficking crimes in connection with a scheme to deceive and coerce young women to appear in pornographic videos. Pratt was an international fugitive for more than three years before he was arrested in Spain in December 2022. Earlier in 2022, he was named to the FBI’s Top Ten Most Wanted list.

    At today’s hearing, Pratt was arraigned and entered a not-guilty plea before U.S. Magistrate Judge Daniel E. Butcher. A detention hearing is scheduled for March 21 at 3 p.m. before Judge Butcher, followed by a motion hearing/trial setting on April 19 at 1:30 p.m. before U.S. District Judge Janis L. Sammartino.

    “We cast a wide net in search of Mr. Pratt and now that he is in San Diego, we are prepared to bring him to justice,” said U.S. Attorney Tara K. McGrath. “We extend our deep appreciation to the government of Spain for its assistance in securing his arrest and extradition.”

    “Michael Pratt’s initial appearance in San Diego is tangible proof that the pursuit of justice never stops, regardless of length of time or location,” said FBI San Diego Special Agent in Charge, Stacey Moy. “Pratt’s arrest and extradition back to the United States reflects a great collaboration among multiple agencies, both in the United States and Spain who were dedicated to seeking justice for the young women he allegedly victimized. This large, internationally coordinated effort could not have been successful without support from our law enforcement partners in Spain, the U.S. Marshals Service, U.S. Department of Justice, and Immigration and Customs Enforcement.”

    According to public court filings, Pratt and his co-defendants used force, fraud, and coercion to recruit hundreds of young adult women – most in their late teens – and at least one minor victim, to appear in GirlsDoPorn videos.

    Pratt is accused of recruiting the victims from throughout the United States and Canada using internet advertisements for clothed modeling jobs. Even after the victims were told the gig involved an adult video-shoot, Pratt and his co-defendants convinced the women that their videos would be provided solely to private collectors on DVD in foreign countries, that they would remain anonymous, and that the videos would not be posted on the internet – assurances that Pratt and his co-defendants knew to be false.

    Most of the video shoots took place in San Diego – at local hotels and short-term rental units.  Although the women were promised that the video shoots would be brief, they often took hours. Once the video productions began, some women were not permitted to leave the shooting locations until the videos were completed; some were threatened with lawsuits or cancelled flights home if they did not complete the videos; and others were allegedly forced to perform certain sex acts, which they had earlier declined to do.

    After the victims returned home, still believing that they would remain anonymous, Pratt and his co-defendants posted clips of the videos on heavily trafficked adult film sites, like Pornhub, to funnel traffic to the full-length versions of the videos on his website, GirlsDoPorn. Pratt charged visitors to GirlsDoPorn a subscription fee. The site generated more than $17 million in revenue for Pratt.

    Pratt faces 19 felony counts stemming from the operation of GirlsDoPorn. The charges include:

    •           Fifteen counts of sex trafficking by force, fraud, and coercion;

    •           Conspiracy to commit sex trafficking by force, fraud, and coercion;

    •           Production of child pornography;

    •           Sex trafficking of a minor by force, fraud, and coercion; and

    •           Conspiracy to commit money laundering.

    The U.S. Attorney’s Office in the Southern District of California recognizes the outstanding efforts of the FBI in San Diego; the FBI Legal Attaché in Spain; the U.S. Marshals Service; Spain’s Ministry of Justice; and law enforcement officials in Spain and Portugal; as well as the Justice Department’s Office of International Affairs, for their substantial assistance in securing the arrest and extradition of Pratt.

    DEFENDANTS                                             Case Number 19cr4488                                   

    Michael James Pratt                                        Age:       36                 Unknown

    Matthew Isaac Wolfe                                      Age        37                     San Diego, CA

    Ruben Andre Garcia                                       Age:       31                      San Diego, CA

    Theodore Gyi                                                  Age,       46                        Solana Beach, CA  

    Valorie Moser                                                 Age:       37                       San Diego, CA

    SUMMARY OF CHARGES IN SUPERSEDING INDICTMENT

    Count 1

    Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594

    Maximum Penalty:  Life in prison, $250,000 fine.

    Counts 2-16

    Sex Trafficking by Force, Fraud and Coercion 18 U.S.C. §1591(a) and (b)(1)

    Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine.

    Count 17

    Production of Child Pornography, 18 U.S.C. § 2251(a) and (e)

     Minimum penalty: Fifteen years in prison; Maximum penalty: thirty years in prison, $250,000 fine.

    Count 18

    Sex Trafficking of a Minor and By Force, Fraud and Coercion, 18 U.S.C. § 1591(a)(1), (a)(2), and (c)

    Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine.

    Count 19

    Conspiracy to Launder Monetary Instruments, 18 U.S.C. § 1956(a)(1)(A)(i) and 1956(h).

    Civil penalty of the greater of (A) the value of the property, fund or monetary instruments involved in the transaction or (B) $10,000

    INVESTIGATING AGENCIES

    FBI – Southern District of California and Legal Attaché in Spain

    U.S. Marshals Service

    U.S. Department of Justice, Office of International Affairs

    Spanish National Police

    Spain’s Ministry of Justice

    Spain’s Ministry of Interior

    *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: International Trafficker of Counterfeit Apple Products Sentenced to Prison

    Source: US FBI

    NEWS RELEASE SUMMARY – March 25, 2024

    SAN DIEGO – Zhiwei “Allen” Liao was sentenced in federal court today to 51 months in prison for his role as an organizer and leader of an international conspiracy to traffic in counterfeit Apple products. The defendant was also ordered to forfeit two residences along with $120,370 in U.S. currency and more than 200 Apple devices seized during the investigation.

    According to court documents, Zhiwei Liao and his brothers, Zhimin Liao and Zhiting Liao, led an international exchange fraud scheme involving more than 10,000 counterfeit iPhones and iPads. The Liaos imported counterfeit iPhones and iPads from China that looked genuine and included identification numbers (IMEI and serial numbers) matching identification numbers on real iPhones and iPads that were under warranty and had been previously sold to customers in the United States and Canada.  At the direction of the Liao brothers, co-conspirators traveled to hundreds of Apple Stores across the United States and Canada, and attempted to exchange counterfeit iPhones and iPads for genuine iPhones and iPads resulting in a loss of $6.1 million to Apple, Inc. Zhiwei Liao then sent the fraudulently obtained, but genuine Apple products primarily to China where they were sold at a premium.       

    In court today, U.S. District Judge Cynthia Ann Bashant said that a significant prison sentence was appropriate because Zhiwei Liao was the organizer and leader of an extensive international criminal organization that trafficked in counterfeit goods throughout North America for several years.

    The scheme was sophisticated and dynamic, involving counterfeit devices imported from China that looked like genuine devices under warranty. Zhiwei Liao micromanaged the operations and created a moving target for law enforcement by directing counterfeit Apple products and criminal proceeds to be sent to different co-conspirators, companies, and family members throughout the scheme. Co-conspirators supported these efforts to avoid law enforcement by exchanging the counterfeit products using a variety of false names and email accounts.

    The defendant’s brothers, Zhimin Liao and Zhiting Liao, who were also leaders of the conspiracy, were previously sentenced to 41 months in custody in October 2023. 

    This case is part of a multi-year investigation led primarily by the Federal Bureau of Investigation and the San Diego Police Department that resulted in 12 felony convictions, the forfeiture of five residences in San Diego with an estimated value of more than $4.1 million, over $250,000 in cash, and more than 200 Apple products that were either counterfeit, fraudulently obtained, or used during the criminal operations.

    “This was a massive, sophisticated fraud that victimized not only Apple, Inc., but thousands of Apple product owners across North America,” said U.S. Attorney Tara McGrath. “Theft of intellectual property and the sale of counterfeit goods are growing global problems with serious economic implications.” 

    “Mr. Liao’s sentencing closes a major chapter in a multi-year investigation that exposed an international, elaborate scheme to sell counterfeit goods worldwide,” said FBI San Diego Special Agent in Charge Stacey Moy. “This investigation would not have been successful without the unwavering dedication and persistence of our law enforcement partners. We remain diligent in the pursuit of justice to help maintain the integrity of our economy.”

    This case is being prosecuted by Assistant U.S. Attorney Timothy F. Salel.

    DEFENDANTS                                 Case Number 19cr4407-BAS                                               

    Zhiwei Liao, aka “Allen”                   San Diego, CA                                    Age:    34

    Zhimin Liao, aka “Jimmy”                 San Diego, CA                                    Age:    36

    Zhiting Liao, aka “Tim”                     San Diego, CA                                    Age:    33

    Dao Trieu La, aka “Selena”                San Diego, CA                                    Age:    32

    Mengmeng Zhang, aka “Aria”           San Diego, CA                                    Age:    31

    Tam Nguyen, aka “Kelly,”                 San Diego, CA                                    Age:    39

    Charley Hsu                                        San Diego, CA                                    Age:    41

    Danny Tran Chan                               San Diego, CA                                    Age:    32

    Phillip Pak, aka “Teddy”                    San Diego, CA                                    Age:    33

    Deedee Zhu, aka “David,”                  San Diego, CA                                    Age:    35

    Jiaye Jiang, aka “joejoekong”            San Diego, CA                                    Age:    34

    Hyo Yang, aka “Will”                        San Diego, CA                                    Age:    33

    SUMMARY OF CHARGES

    Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Section 2320

    Maximum penalty: Ten years in prison, $2 million fine, mandatory restitution, and forfeiture.

    INVESTIGATING AGENCIES

    Federal Bureau of Investigation

    San Diego Police Department

    San Diego County Sheriff’s Department

    U.S. Customs and Border Protection

    Homeland Security Investigations

    U.S. Marshals

    MIL Security OSI –

  • MIL-OSI Security: Current and Former Minor League Baseball Players Indicted for Insider Trading in Del Taco Stocks

    Source: US FBI

    NEWS RELEASE SUMMARY – March 26, 2024

    SAN DIEGO – An indictment was unsealed today charging current and former minor league baseball players Jordan Qsar, Grant Witherspoon and Austin Bernard with insider trading in Del Taco, Inc. stocks after they received advanced notice of the acquisition of Del Taco by Jack in the Box, Inc. on December 6, 2021.

    According to the indictment, Qsar learned from a close friend who worked at Jack in the Box that the company was acquiring Del Taco. The friend was a senior associate in Jack in the Box’s strategic finance department who personally worked on the acquisition project. The disclosure was a violation of duties to Jack in the Box and its shareholders.

    The indictment states that Qsar fraudulently shared the inside information with Witherspoon and Bernard, who were connected to Qsar through collegiate and minor league baseball teams at Pepperdine University and the Tampa Bay Rays.

    In the following months, after learning the inside information, Qsar, Witherspoon, and Bernard purchased Del Taco stocks, discussed when and how many shares they were purchasing, and tipped others with the inside information.

    According to the indictment, after Jack in the Box and Del Taco went public with the acquisition on December 6, 2021, Del Taco stocks jumped in price from $7.53 to $12.51 per share—representing a 66 percent increase from the prior trading day’s closing price. In the days following, Qsar, Witherspoon, and Bernard sold all their Del Taco stocks, earning them illegal profits of approximately $56,000, $41,800, and $64,600, respectively.

    “The system has to be fair for everyone, or the market fails,” said U.S. Attorney Tara McGrath. “Those who seek to undermine this system for personal gain will face consequences.”

    “Insider trading directly affects the integrity of our economy,” said FBI San Diego Special Agent in Charge Stacey Moy. “We will continue to work with our federal, state, and local law enforcement partners to ensure people who intentionally undermine and threaten our economy will be brought to justice.”

    This case is being prosecuted by Assistant U.S. Attorney Ronald Sou.

    DEFENDANTS                                 Case Number: 24-CR-0385-DMS

    Jordan Joseph Qsar                             Age: 28

    Grant Lee Witherspoon                      Age: 27

    Austin Lane Bernard                          Age: 28

    SUMMARY OF CHARGES

    Title 18 U.S.C. 371 – Conspiracy

    Maximum Penalty: Five years in prison; $250,000 fine

    Title 15 U.S.C. 78j(b), 78ff & Title 17 C.F.R. 240.10b-5 and 240.10b5-1 – Securities Fraud

    Maximum Penalty: Twenty years in prison; $5 million fine

    Title 18 USC 1343 – Wire Fraud & Title 18 USC 2 – Aiding and Abetting

    Maximum Penalty: Twenty years in prison; $250,000 fine

    Title 18 USC 981(a)(1)(C) and Title 28 USC 2461(c) – Criminal Forfeiture

    INVESTIGATING AGENCY

    Federal Bureau Investigation

    *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Indictment Charges Las Vegas Couple with Drug and Money Laundering Conspiracy

    Source: US FBI

                WASHINGTON – Rushan Lavar Reed, 46, and Celeste Nicole Reed, 26, both of Las Vegas, Nevada, were arrested on charges, filed in U.S. District Court in Washington, D.C., related to the alleged sale of illegal drugs and the laundering of the drug proceeds. The charges were announced today by U.S. Attorney Matthew M. Graves, and Special Agent in Charge Wayne Jacobs of the FBI Washington Field Office’s Criminal and Cyber Division.

                According to the indictment, unsealed yesterday, starting in March of 2017, the Reeds knowingly conspired with others – known and unknown to the Grand Jury – to distribute and possess with intent to distribute narcotics that included a detectable amount of oxycodone, hydrocodone, and amphetamine. The indictment also alleges that the defendants conducted and attempted to conduct financial transactions involving the proceeds of illegal drug trafficking activity.

                If convicted, the defendants each face a maximum statutory sentence of 10 years in prison for conspiracy to distribute the illegal drugs and 10 years in prison for conspiracy to commit money laundering. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

                This case is being investigated by the FBI’s Washington Field Office and Office of the Inspector General of the District of Columbia, with assistance from the FBI Las Vegas Field Office and U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Gary Crosby and Andy Wang, of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia.

                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: Man Sentenced for More Than $500,000 COVID-19 Relief Fraud and Money Laundering Scheme

    Source: US FBI

    LAS VEGAS – A Nevada man was sentenced yesterday to two years and four months in prison for fraudulently obtaining over $500,000 in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and then laundering the money through family, friends, and others.

    According to court documents, Brandon Casutt, 52, of Henderson, submitted multiple false and fraudulent applications to the SBA and four SBA lenders on behalf of two entities he controlled, seeking to fraudulently obtain more than $5.7 million. Two of Casutt’s fraudulent applications ultimately received funding: a PPP loan for approximately $350,000 in the name of a purported business called Sky DeSign, and an EIDL program loan for approximately $150,000 in the name of a purported charity called Skyler’s CF Foundation. While the loan applications affirmed falsely that each entity had numerous employees, significant payroll expenses, and substantial revenue, neither entity had employees nor paid any wages.

    After receiving the PPP money, Casutt laundered it by writing dozens of fake payroll checks – each in the amount of approximately $8,330 – to himself, family members, and friends. On many of the checks, Casutt falsely wrote “pandemic pay” or “back pay” in the check memo. Casutt cashed or deposited these fake paychecks. Then, within days and at Casutt’s direction, the money was diverted back to a bank account under Casutt’s control. Casutt then used the money to buy a house in Henderson.

    On Aug. 26, 2020, Casutt pleaded guilty to one count of wire fraud and one count of concealment money laundering.

    Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jason M. Frierson for the District of Nevada, Special Agent in Charge Al Childress of the IRS Criminal Investigation (IRS-CI) Phoenix Field Office, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.

    IRS-CI and the FBI Las Vegas Field Office investigated the case.

    Trial Attorney Sara Hallmark and Assistant Chief Cory E. Jacobs of the Criminal Division’s Fraud Section and former Assistant U.S. Attorney Eric C. Schmale for the District of Nevada prosecuted the case, with assistance from Assistant U.S. Attorneys Jessica Oliva and Daniel Hollingsworth for the District of Nevada.

    In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

    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 via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.

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  • MIL-OSI Security: Nevada CPA Pleads Guilty to Filing False Tax Returns

    Source: US FBI

    A Nevada man pleaded guilty to aiding and assisting the filing of false tax returns for his role in a purported investment scheme to sell false tax deductions.

    According to court documents and statements made in court, Lance K. Bradford of Henderson, was a certified public accountant (CPA) and founder and manager of an accounting firm, LL Bradford & Company (LLB). LLB provided accounting services including tax preparation, audit and consulting services. Bradford also operated a real estate business that developed office buildings and other real property. In connection with Bradford’s real estate development activities, he operated and controlled a real estate investment partnership entity.

    In 2011, Bradford began offering LLB’s high-net-worth clients an “investment opportunity” through which the clients would make a payment to his partnership entity and, in exchange, receive a large tax deduction of approximately five to seven times the amount of money the client “invested.” Bradford advised that the clients’ payments would entitle them to claim the large tax deduction based on losses derived from the partnership entity even though the tax laws did not permit the sale of such deductions in exchange for an investment or money and the partnership did not incur the losses or depreciation in the amounts Bradford was selling. Bradford also did not report the purported investments as losses on the clients’ tax returns as promised. Instead, he caused the clients’ returns to report large false deductions for cost of goods sold, professional and consulting fees or nonpassive losses. In total, Bradford’s scheme caused a tax loss to the IRS of at least $8 million.

    As part of the investment scheme, in 2014, Bradford asked a client to make a $417,780 “investment” to his partnership entity in exchange for purported depreciation-based losses to be placed on his client’s 2013 corporate tax return (Form 1120S). But instead of reporting depreciation related to the investment, Bradford caused LLB to prepare and file a Form 1120S that falsely inflated the company’s cost of goods sold by $2,110,000, causing a tax loss to the IRS of approximately $860,627.

    Bradford is scheduled to be sentenced on Jan. 16, 2024, and faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.

    IRS-Criminal Investigation are investigating the case with the assistance of the FBI.

    Trial Attorney Patrick Burns of the Tax Division and Assistant U.S. Attorney Steven W. Myhre for the District of Nevada are prosecuting the case.

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  • MIL-OSI Security: Las Vegas Police Officer Sentenced to 12 Years in Prison for Committing Three Casino Robberies

    Source: US FBI

    LAS VEGAS – A Las Vegas Metropolitan Police Department (LVMPD) officer was sentenced today by United States District Judge Andrew P. Gordon to 12 years in prison followed by three years of supervised release for robbing three casinos and stealing approximately $164,000 in total.

    In July 2023, following a four-day trial, a jury convicted Caleb Mitchell Rogers (33) of three counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence.

    According to court documents, Rogers stole approximately $73,810 from a casino in the western part of Las Vegas on November 12, 2021. A few months later, on January 6, 2022, he robbed a casino in North Las Vegas of approximately $11,500. In both robberies, he walked directly to the casino’s cashier cage and demanded money from the cashiers. The third robbery occurred on February 27, 2022, in which Rogers ran toward two casino employees in the sportsbook area and yelled: “Get away from the money. I’ve got a gun. I will shoot you!” Rogers climbed over the counter and shoved one of the employees to the floor, before grabbing approximately $78,898 and placing it into a bag. Rogers fled when the employees triggered an alarm. As Rogers ran toward the parking garage, a casino security officer tackled him. Rogers drew a .357 caliber revolver and, with his finger on the trigger, threatened: “I’m going to shoot you!” Security officers were able to disarm Rogers and restrain him until LVMPD officers arrived. The officers arrested Rogers and seized his firearm. Checking the revolver’s serial number, officers learned that it belonged to the LVMPD.

    United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

    This case was investigated by the FBI and the LVMPD. Assistant United States Attorneys Dan Cowhig and David Kiebler prosecuted the case.

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  • MIL-OSI Security: Las Vegas Resident Sentenced to Prison for Possession and Distribution of Thousands of Child Sexual Abuse Material

    Source: US FBI

    LAS VEGAS – A Las Vegas man who committed an additional felony offense while on release was sentenced today by United States District Judge Jennifer A. Dorsey to 111 months in prison followed by a 20 year term of supervised release for collecting and sharing thousands of child sexual abuse materials depicting children as young as infants to other people — including people who did not want to view the images.

    Colby Matthew Olen (36) pleaded guilty in July 2023 to distribution of child pornography and possession of child pornography. In addition to imprisonment, under the Sex Offender Registration and Notification Act, Olen must register as a sex offender and keep the registration current.

    According to court documents, the Las Vegas Metropolitan Police Department received CyberTips from the National Center for Missing and Exploited Children (NCMEC) about Olen’s involvement with child sexual abuse materials. In September 2020, a search warrant was executed at Olen’s residence. A forensic examination of electronic devices belonging to Olen found images and videos of child sexual abuse materials.

    On November 25, 2020, a criminal complaint charged Olen with distribution of child pornography. Although the government moved for detention, Olen was released on a personal recognizance bond with conditions and was advised of potential enhanced penalties for committing another felony offense while on release. In June 2021, a second search warrant was executed at Olen’s residence after a report to the Las Vegas Metropolitan Police Department. A forensic examination of Olen’s electronic devices revealed child sexual abuse materials to include videos of children as young as infants. Olen was arrested and a federal grand jury returned a superseding indictment charging Olen with an additional felony offense committed while on release.

    Olen admitted he distributed child sexual abuse materials depicting children as young as infants being sexually abused to others through an online cloud storage and file hosting service. In total, he distributed 2,716 videos and 5,203 images of child sexual abuse materials.

    United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

    The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant United States Attorney Supriya Prasad prosecuted the case.

    The case was 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 and the Criminal Division’s Child Exploitation and Obscenity Section, 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 and for information about internet safety education, please visit www.justice.gov/psc.

    Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or https://report.cybertip.org.

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  • MIL-OSI Security: Three Nigerian Men Indicted in Multimillion-Dollar Internet-Enabled Investment Fraud Scheme

    Source: US FBI

    NEWARK, N.J. – The United States Attorney’s Office for the District of New Jersey unsealed charges today against three Nigerian nationals for their roles in a transnational internet-enabled investment fraud scheme, U.S. Attorney Philip R. Sellinger announced.

    Augustine Chibuzo Onyeachonam, 30, Stanley Asiegbu, a/k/a “Stanislaus, Asiegbu”, 37, and Chukwuebuka Nweke-Eze, 29, all of the Federal Republic of Nigeria, were each charged by Indictment with one count of wire fraud conspiracy (Count One), two counts of wire fraud (Counts Two and Three), one count of securities fraud conspiracy (Count Four), one count of identity theft conspiracy (Count Five), and four counts of aggravated identity theft (Counts Six through Nine).

    These defendants not only defrauded dozens of victims out of millions of dollars of their hard-earned money, but they also impersonated licensed FINRA representatives, spoofed their websites, and misappropriated the seal of the SEC to carry out their fraud,” U.S. Attorney Sellinger said. “My office will continue to work with our law enforcement partners to pursue these kinds of scammers no matter where in the world they are and seek justice for their victims.”

    According to the Indictment:

    From at least as early as in or around 2018 through the present, Onyeachonam, Asiegbu, Nweke-Eze, and others (the “Conspirators”) orchestrated an internet-enabled fraud scheme that targeted victims throughout the United States, including in the District of New Jersey. As part of the fraud scheme, the Conspirators impersonated dozens of individuals registered as broker-dealers with the Financial Industry Regulatory Authority (“FINRA”) and used those stolen identities to solicit investments from members of the public through fraudulent public-facing websites.

    The fraudulent, or “spoofed”, websites were registered in the names of the impersonated victim brokers and often included genuine credentials, such as CRD numbers, associated with the victim brokers. At times, the spoofed websites also included links to: (1) the FINRA website associated with the victim brokers that allowed any member of the public to view the victim brokers’ employment history, certifications, licenses, or prior violations; and (2) fake social media accounts created by the Conspirators in the names of the victim brokers.  At times, the spoofed websites also displayed, without authorization, the seal of the U.S. Securities and Exchange Commission (“SEC”).  The Conspirators would further use the SEC seal in email communications with victims.

    The Conspirators lured victims of the fraud scheme to the spoofed websites by touting the services of the victim brokers in the comment sections of online articles or videos discussing financial and cryptocurrency investment-related topics. At times, the Conspirators would include links to one or more of the spoofed websites.

    When a fraud victim visited a spoofed website, he or she was directed to communicate with an individual they believed to be a legitimate broker-dealer by contacting a telephone number or email address listed on the spoofed website. The Conspirators, posing as the victim brokers, then communicated with fraud victims and, among other things: (1) told fraud victims that their money would be invested in various stocks and cryptocurrencies; and (2) guaranteed fraud victims returns on their investments of up to 25%. The Conspirators used voice-changing software applications to impersonate certain female victim broker dealers when communicating by telephone.

    When a fraud victim decided to invest money with one of the Conspirators posing as a victim broker, the fraud victim was told to: (1) open an account at a particular cryptocurrency trading platform; (2) purchase cryptocurrency assets through that platform; and (3) send the cryptocurrency assets to a particular cryptocurrency wallet address for the purpose of investment. In reality, the funds transferred by the fraud victims to the Conspirators were not invested but were stolen by the Conspirators. At times, fraud victims’ funds were stolen directly from the account(s) opened by them at a particular cryptocurrency exchange.

    As part of the fraud scheme, the Conspirators further created fraudulent online investment platforms that falsely displayed monthly returns associated with the fraud victims’ investments. A fraud victim visiting one of the fraudulent investment platforms typically would observe substantial returns on their investment. At times, when a fraud victim requested to withdraw funds from their account, they would be asked by the Conspirators to pay additional money in fees or taxes to withdraw the funds. After paying these fees, the funds would still not be released.

    In total, the Conspirators caused dozens of fraud victims to transmit funds that they believed to be for investments in the aggregate amount of at least approximately $3 million.

    The wire fraud conspiracy charged in Count One carries a maximum potential penalty of 20 years in prison and a $250,000 fine; the wire fraud charged in Counts Two and Three of the Indictment each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, the conspiracy to commit securities fraud charged in Count Four of the Indictment carries a maximum potential penalty of 20 years in prison and a $250,000 fine; the conspiracy to commit identity theft charged in Count Five of the Indictment carries a maximum potential penalty of 15 years in prison and a $250,000 fine; and the aggravated identity theft counts charged in each carry a mandatory minimum sentence of two years and a $250,000 fine.

    The U.S. Securities and Exchange Commission today filed a civil complaint against all three defendants based on the same conduct.

    U.S. Attorney Sellinger credited special agents of the FBI – Newark Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to the indictment.

    The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Andrew Kogan of the U.S. Attorney’s Office Cybercrime 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.

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  • MIL-OSI Security: Three New Jersey Men Convicted for Racketeering Conspiracy and for Their Roles in Three Gang-Related Murders

    Source: US FBI

    NEWARK, N.J. – A Newark jury convicted three New Jersey men for their roles in a violent racketeering conspiracy, three murders, and related firearms offenses, U.S. Attorney Philip R. Sellinger announced.

    Myron Williams, aka “Money,” aka “Tunchi,” 31, of Newark, Khalil Kelley, aka “Billski,” 25, and Roger Pickett, aka “Zy Gz,” 24, both of Jersey City, were convicted in connection with a multi-count Indictment predicated upon their respective roles in the racketeering conspiracy.  Williams was convicted of racketeering conspiracy, murder in aid of racketeering, discharging a firearm during and in relation to a crime of violence, causing death through the use of a firearm, and possession with intent to distribute controlled substances.  Kelley was convicted of racketeering conspiracy, murder in aid of racketeering, discharging a firearm during and in relation to a crime of violence, and causing death through the use of a firearm.  Pickett was convicted of racketeering conspiracy, three counts of murder in aid of racketeering, three counts of discharging a firearm during and in relation to a crime of violence, three counts of causing death through the use of a firearm, and Hobbs Act robbery.

    “These three Marion street gang members brazenly committed three murders in the name of their gang. Two rival gang members were lured to their deaths through social media accounts that gang members used to impersonate the victims’ friends, and a third individual was killed during the course of a robbery committed against him.  The senseless killing of these three men caused incredible danger to the community. Myron Williams, Khalil Kelley, and Roger Pickett now face mandatory life sentences for their crimes, and the District of New Jersey is safer as a result. As this case demonstrates, my office is committed to working closely with the Hudson County Prosecutor’s Office and the Jersey City Police Department, alongside our federal law enforcement partners, to protect the community.  This commitment to prosecuting violent crime ensures that serious consequences will follow for individuals who commit violence and have no regard for human life.”  

    U.S. Attorney Philip R. Sellinger

    “Today’s guilty verdicts bring accountability to violent criminals whose actions disregard criminal law, human life, and public safety. ATF remains steadfast in identifying and apprehending those who are terrorizing our neighborhoods with gang violence and disorder. We will continue to work alongside our law enforcement partners and secure the safety of our communities.”

    ATF SAC L.C. Cheeks, Jr.

    “This verdict is a testament of our commitment in law enforcement to ensure that justice is always served. The defendants in this matter intentionally disregarded human life and instilled fear in neighborhoods across Jersey City. I thank our local, state, and federal partners who continuously work collaboratively with the Hudson County Prosecutor’s Office to ensure residents feel safe in their own communities.”

    Hudson County Prosecutor Esther Suarez

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

    Williams, Kelley, and Pickett are all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex. Since 2013, they have committed numerous acts of violence, including three separate murders, on March 29, 2021, Nov. 20, 2021, and Nov. 1, 2022.

    On March 29, 2021, Kelley and other gang members lured a rival gang member outside by sending him Instagram messages pretending to be the victim’s fellow gang member.  When the victim opened the door to his residence, Kelley and another gang member brandished firearms, and the victim was shot multiple times in the chest, killing him. Pickett and Williams then picked up Kelley and other gang members after they abandoned the murder vehicle in Newark.

    On Nov. 20, 2021, Williams, Pickett, and another gang member lured a rival gang member outside by sending him Instagram messages pretending to be the second victim’s fellow gang member. Williams and another gang member shot the victim when he opened the door to his residence.

    On Nov. 1, 2022, a gang member facilitated the murder of the third victim by coordinating a narcotics transaction with the victim and an associate of the victim. When the victim and his associate arrived at the Marion Gardens Housing Complex to complete the narcotics transaction, they were robbed of their narcotics supply. During the robbery, Pickett and another gang member held the victim and his associate at gunpoint. After a struggle ensued, Pickett shot and killed the victim while his associate fled. Pickett then fled the Marion Gardens Housing Complex in his vehicle.

    Investigators observed and documented hundreds of narcotics transactions in and around the Marion Gardens Housing Complex during the monthslong investigation.  In addition, when Williams was arrested on March 17, 2023, he possessed controlled substances packaged for distribution.

    Eight other individuals originally were indicted with Williams, Kelley, and Pickett.  All have since pleaded guilty for their roles in the racketeering enterprise.

    The racketeering conspiracy count of which all three were convicted carries a maximum potential penalty of life in prison, and a $10 million fine. Each was also convicted of murder in aid of racketeering, which carries a mandatory life sentence, discharging a firearm during and in relation to a crime of violence, which carries a mandatory minimum penalty of ten years in prison and a maximum potential penalty of life in prison, and causing death through the use of a firearm, which carries a maximum potential penalty of life in prison. Pickett was also convicted of Hobbs Act robbery, which carries a maximum potential penalty of 20 years in prison, and Williams was convicted of possession with intent to distribute controlled substances, which also carries a maximum potential penalty of 20 years in prison. Sentencing is scheduled for April 22, 2025.

    U.S. Attorney Sellinger credited investigators of the Gang Intelligence Unit and the Homicide Unit of the Major Case Division of Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez and Chief of Detectives James A. Parker, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge L.C. Cheeks Jr., and investigators of the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the convictions. He also thanked the Federal Bureau of Investigation (FBI), under the direction of Acting Special Agent in Charge Nelson I. Delgado, and the U.S. Marshals, under the direction of U.S. Marshal Juan Mattos, for their assistance.

    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 Department of Homeland Security – Homeland Security Investigations (“HSI”), 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 Desiree Grace, Chief of the Criminal Division, and Assistant U.S. Attorneys John Maloy and Javon Henry, of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
     

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  • MIL-OSI Security: Washington Man Charged with Threatening Flight Attendants on an Airplane

    Source: US FBI

    NEWARK, N.J. – A Washington, DC, man was arrested for threatening flight attendants during an incident in which he had to be restrained by flight crew and passengers while aboard a flight to Newark Liberty International Airport, U.S. Attorney Philip R. Sellinger announced.

    Kedus Yacob Damtew, 38, of Washington, DC, was charged by complaint in Newark federal court with one count of interference with flight crew members and attendants by assault or intimidation. He appeared before Magistrate Judge Matthew J. Sharbaugh in Washington, DC federal court, and was released.

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

    On June 12, 2024, shortly before landing on a flight from Houston, Texas, Damtew removed his shirt; pushed his bare chest into a flight attendant, pinning the flight attendant against the aircraft exit door; shouted epithets and threats of physical violence; and punched an aircraft oven. Damtew then followed the same flight attendant to the rear of the aircraft, where he continued to shout threats and epithets and threw a cup of water. Another flight attendant requested assistance over the airplane’s public address system, prompting several passengers to assist in securing Damtew in flex cuffs in the last row of the plane until the flight landed at Newark.

    The charge of interfering with flight crew members and attendants carries a maximum sentence of 20 years in prison and a maximum fine of $250,000.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the charge. He also thanked the Port Authority Police Department, under the direction of Edward T. Cetnar, for its assistance.

    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 complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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    Defense counsel: Elizabeth Mullin, Esq., Assistant Federal Public Defender, Washington, DC

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  • MIL-OSI Security: FBI Newark Warns Public Against Pointing Lasers at Manned Aircraft or Shooting Down Suspected UAS

    Source: US FBI

    NEWARK, NJ—FBI Newark and New Jersey State Police want to warn the public about an increase in pilots of manned aircraft being hit in the eyes with lasers because people on the ground think they see an Unmanned Aircraft Systems (UAS). There is also a concern with people possibly firing weapons at what they believe to be a UAS but could be a manned aircraft. FBI Newark, NJSP, and dozens of other agencies and law enforcement partners have been out every night for several weeks to legally track down operators acting illegally or with nefarious intent, and using every available tool and piece of equipment to find the answers the public is seeking. However, there could be dangerous and possibly deadly consequences if manned aircraft are targeted mistakenly as UAS.

    Misidentification often occurs when UAS are mistaken for more familiar objects such as manned aircraft, low-orbit satellites, or celestial bodies like planets or stars. To improve accuracy and prevent false sightings, a variety of tools and techniques can be used to assist with the visual identification of suspected UAS. Accurate identification is critical for maintaining safety and ensuring appropriate responses to UAS activity.

    There are many different websites and mobile applications the public can access through various governmental agencies and private companies that show flight paths for manned aircraft, satellites in Earth’s orbit, and stars and planets visible on a given evening that can help determine if people are seeing UAS or something else.

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  • MIL-OSI Security: Crew Member Sentenced to 19 Years for East Coast Gun-Point Robberies of Six South Asian Jewelers that Netted Millions

    Source: US FBI

                WASHINGTON – William Hunter, 28, of Washington D.C., was sentenced in U.S. District Court today to 228 months in federal prison for participating in a multi-state string of violent gun-point robberies of South Asian jewelry stores that netted millions of dollars in cash and gold for the 15-member crew, allegedly led by Trevor Wright, aka rapper “Taliban Glizzy.”

                The sentence was announced by U.S. Attorney Matthew M. Graves; ATF Special Agent in Charge Anthony A. Spotswood of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; FBI Assistant Director in Charge David Sundberg of the Washington Field Office; FBI Acting Special Agent in Charge Nelson I. Delgado of the Newark Field Office; U.S. Marshal Peter Marketos of the United States Marshals Service; and Chief Pamela A. Smith, of the Metropolitan Police Department.

                Hunter, aka “Ill Will,” pleaded guilty on September 4, 2024 to interfering with interstate commerce by robbery (aka Hobbs Act robbery) and possessing a firearm during a crime of violence. In his plea, Hunter accepted responsibility for six robberies across Virginia, New Jersey, and Pennsylvania that not only stole millions of dollars in jewelry, but terrorized multiple victims and left behind a wake of destruction and financial loss. In addition to the prison sentence, U.S. District Court Judge Christopher R. Cooper ordered Hunter to serve 48 months of supervised release.

                According to court documents, over the course of 18 months, Hunter and his co-conspirators engaged in a scheme to rob multiple South Asian jewelry stores of heavy gold jewelry of high purity. The conspiracy began in January 2022 and continued until August 2023 when several of the co-conspirators had been charged and arrested.

                Each robbery was carefully coordinated in advance of its commission and employed a similar modus operandi, one that the co-conspirators seemed to hone and perfect over time and with each new criminal act. The co-conspirators researched stores to select their targets before meeting in Washington, D.C. and traveling in one or more getaway vehicles to the stores. To evade law enforcement detection, some of the suspect vehicles were stolen or outfitted with stolen tags. At least one of the vehicles was carjacked by Hunter and others at gunpoint on September 11, 2022, and later used in a robbery on September 20, 2022.

                The co-conspirators often cased the stores in advance of the robbery and gained access by a variety of means, including using sledgehammers to shatter a store’s door or windows before storming in. The co-conspirators employed a show of force to gain compliance from their victims, with at least one co-conspirator armed with a firearm in each instance. They used hammers to smash the glass display cases, filling bags with gold jewelry and resulting in significant damage throughout the stores. In every single instance, however, Hunter and his co-conspirators terrorized the store’s owners, employees, and customers by engaging in an armed takeover of the store and then ransacking it before fleeing.

                Often, following the robberies, the stolen gold would be melted to bars and ultimately converted to cash. Hunter and his co-conspirators would then flaunt their ill-gotten gains on social media.   

                On March 6, 2023, in Washington, D.C., law enforcement arrested Hunter on an outstanding arrest warrant issued out of Maryland arising from an October 22, 2022, armed carjacking. At the time of his arrest, Hunter had a loaded Glock 23 .40 caliber handgun with an obliterated serial number in his waistband. That same day, law enforcement executed a residential warrant at Hunter’s D.C. residence and recovered, among other items, 135 live rounds of assorted ammunition, four rifle magazines, one speed loader, and an AR-15 rifle drum magazine. They also recovered clothing that appeared consistent with some worn by Hunter during the commission of robberies, along with a crowbar and a hammer.

                In April 2023, a federal grand jury indicted Hunter and Trevor Wright, aka rapper “Taliban Glizzy,” in connection with the armed robbery of Paradise Jewelry Store. On August 17, 2023, a federal grand jury returned a 19-count Superseding Indictment, charging Hunter and his co-conspirators in connection with nine armed robberies in New Jersey, Pennsylvania, Florida, and Virginia, with substantial planning and coordination occurring in D.C. On March 12, 2024, a Second Superseding Indictment was filed, adding charges related to two additional robberies, including one in D.C., as well as charges related to the recovery of firearms and narcotics from multiple residences associated with the various co-conspirators.

                According to his plea agreement, Hunter accepted responsibility for his roles in: (1) the January 7, 2022, armed robbery of Yasini Jewelers in Falls Church, Virginia; (2) the September 20, 2022, armed robbery of Sonia Jewelers and Boutique in Springfield, Virginia; (3) the October 25, 2022, armed robbery of Paradise Jewelry in Paterson, New Jersey; (4) the November 10, 2022, armed robbery of Baral Jewelers and Gift Center in Harrisburg, Pennsylvania; (5) the November 27, 2022, armed robbery of Sara Emporium Jewelry in Jersey City, New Jersey; and (6) the January 27, 2023, armed robbery of Princess Diamonds in Falls Church, Virginia.

                This case was investigated by the ATF, Metropolitan Police Department, and FBI Newark and Washington Field Offices. It is being prosecuted by Assistant U.S. Attorneys Sitara Witanachchi and Andrea Duvall.

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    		 CHARGES/SENTENCE
    Trevor Wright, 33 Taliban Glizzy Washington DC Interfering with interstate commerce by robbery (aka Hobbs Act robbery);  conspiracy to commit Hobbs Act robbery; possessing a firearm during a crime of violence; money laundering; conspiracy to engage in monetary transactions in property derived from unlawful activity.
    William Hunter, 28 Ill Will Washington DC Sentenced to 228 months on Dec. 11, 2024, after pleading guilty to interfering with interstate commerce by robbery (aka Hobbs Act robbery); and possessing a firearm during a crime of violence.
    Avery Fuller, 29 Deavry Cordell Fuller,  Fully Ace Washington DC Pending sentencing after pleading guilty in the Middle District of Florida to conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence.
    Franklin Hunter, 30 Gino Washington DC Interfering with interstate commerce by robbery (aka Hobbs Act robbery);  conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence;  conspiracy to engage in monetary transactions in property derived from unlawful activity.
    Davon Johnson, 31 YB Washington DC Sentenced to 111 months on November 20, 2024, for conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence.
    Decarlos Hill, 30 Los Maryland Sentenced to 57 months on November 6, 2024, for conspiracy to commit Hobbs Act robbery.
    Lamont Marable, 28   Washington DC Sentenced to 93 months on November 11, 2024, for interfering with interstate commerce by robbery (aka Hobbs Act robbery);  and possessing a firearm during a crime of violence.
    Keith McDuffie, 27   California Interfering with interstate commerce by robbery (aka Hobbs Act robbery);  conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence.
    Jameise Christian, 33 Safety, Safe, Safe Play Washington DC Pending sentencing after pleading guilty in the Middle District of Florida to conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence.
    Andrew Smith, 30 Drewso, Drew Maryland Sentenced to 138 months in prison on October 17, 2024, for conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence.
    Robert Sheffield, 33 Real Lifaa Washington DC Interfering with interstate commerce by robbery (aka Hobbs Act robbery);  conspiracy to commit Hobbs Act robbery; possessing a firearm during a crime of violence; felon in possession of a firearm.
    Jaylaun Brown, 22 Lil Launy Washington DC Conspiracy to interfere with interstate commerce by robbery (aka Hobbs Act robbery).
    Timothy Conrad, 33 Twin Washington DC Sentenced to 168 months on October 1, 2024, for conspiracy to commit Hobbs Act robbery; and for possessing a firearm during a crime of violence.
    Antonio Tate, 21   Washington DC Sentenced to 120 months for conspiracy to commit Hobbs Act robbery; and for brandishing a firearm during a crime of violence.
    Delonte Martin, 35   Washington DC Sentenced to 108 months for conspiracy to commit Hobbs Act robbery; and for brandishing a firearm during a crime of violence.

    Photo introduced into evidence depicts the robbery of $250,000 in jewelry from Princess Diamonds in Falls Church, Virginia

    Surveillance photo depicts William Hunter walking with a tray of jewelry in one hand and a gun in the other during the January 7, 2022, armed robbery of Yasini Jewelers.

    Images posted on October 29 and November 1, 2022, to Hunter’s Instagram account depict him with stacks of cash, a firearm, and a wristwatch.

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