NewzIntel.com

Category: Intelligence

  • MIL-OSI Security: Muskogee Resident Sentenced for Felony Assault

    Source: US FBI

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Colby Eric Dean Ballard, age 29, of Muskogee, Oklahoma, was sentenced to 30 months in prison for one count of Assault of a Spouse, Intimate Partner, and Dating Partner in Indian Country.

    The charge arose from an investigation by the Federal Bureau of Investigation and the Muskogee Police Department.

    On March 21, 2024, Ballard pleaded guilty to the charge.   According to investigators, on April 4, 2023, Ballard assaulted the victim, strangling the victim and causing injuries to the victim’s face, head, wrist, and stomach.  The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.

    The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.  Ballard will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

    Assistant U.S. Attorneys Patrick M. Flanigan and Edith Singer represented the United States.

    MIL Security OSI –

  • MIL-OSI Security: Antlers Resident Sentenced for Sexual Exploitation of a Child

    Source: US FBI

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Clyde Park Crews III, age 34, of Antlers, Oklahoma, was sentenced to 300 months in prison for one count of Sexual Exploitation of a Child/Use of a Child to Produce a Visual Depiction.

    The charge arose from an investigation by the Federal Bureau of Investigation and the Bureau of Indian Affairs.

    On September 4, 2024, Crews pleaded guilty to the charge.  According to investigators, between December 2022 and May 2023, Crews induced a minor to engage in sexually explicit conduct in order to produce and transmit images of that conduct on the internet.

    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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement.  You can file a report through the National Center for Missing & Exploited Children (NCMEC) at 1-800-843-5678 or online at www.cybertipline.com, through the FBI at 1-800-CALL-FBI (1-800-225-5324), or through Homeland Security Investigations at 1-877-4-HSI TIP.

    The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.  Crews will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

    Assistant U.S. Attorney Morgan Muzljakovich represented the United States.

    MIL Security OSI –

  • MIL-OSI Security: FBI Honors the Interfaith Peace and Action Collaborative with National Award

    Source: US FBI

    On Friday, April 19, 2024, FBI Director Christopher Wray presented the Interfaith Peace and Action Collaborative (IPAC) with the FBI Director’s Community Leadership Award (DCLA) for their service to the Portland area. Lisa Broderick accepted the FBI Portland 2023 Director’s Community Leadership Award on behalf of the Interfaith Peace and Action Collaborative. IPAC is a united group that proactively gathers as members of faith, community, business, and law enforcement to discuss and create action around bringing peace to Portland’s streets. The group researches best practices and identifies appropriate actions, technology, and street-level solutions to address violence at a grassroots level. IPAC is also working to become a model for, and share information with, other cities that are struggling with an uptick in crime.  
     
    “IPAC is intentional about promoting restraint on the street and creating and maintaining dialogue between the community members it represents and law enforcement. This directly intersects with the FBI’s national mission of protecting the American people, and FBI Portland’s local mission of keeping the people of Oregon safe,” said Douglas A. Olson, Special Agent in Charge of the FBI Portland Field Office. “FBI Portland is proud to work with the leaders of IPAC as they devote countless hours to addressing the crisis of violence on Portland streets and are working toward solutions for a safer, shared community.” 

    The FBI established the DCLA in 1990 to publicly acknowledge the achievements of those working to make a difference in their communities through the promotion of education and the prevention of crime and violence. Each year, one person or organization from each of the FBI’s 56 field offices is chosen to receive this prestigious award.

    “Our success as both a law enforcement and an intelligence agency hinges on our ability to foster and maintain genuine partnerships with people in all communities,” said FBI Director Christopher Wray. “People like this year’s Leadership Award recipients not only identify what others need, but they are willing to roll up their sleeves and provide services. They are building bridges and relationships while putting in the work to have hard conversations and find common purpose. They do it out of kindness and compassion with a sincere belief that justice – in its many forms – requires all of us to do the right thing in the right way.” 

    Director Wray hosted the 2023 DCLA winners in a special ceremony at FBI Headquarters on April 19th, emphasizing the importance of community partnerships in keeping our shared communities safe. These partnerships – as exemplified by the breadth of the work by the DCLA recipients – have led to a host of crime prevention programs that protect the most vulnerable in our communities, educate families and businesses about cyber threats, and work to reduce violent crime in our neighborhoods. Learn more about the Director’s Community Leadership Award, IPAC, and the FBI Portland Field Office online DCLA 2023 Winners — FBI. FBI’s general outreach efforts, and the Portland Field Office online About — FBI.

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  • MIL-OSI Security: Coos County Man Suspected of Abusing Children Indicted in Federal Court

    Source: US FBI

    EUGENE, Ore.—A North Bend, Oregon man suspected of abusing multiple children has been indicted in federal court.

    Christopher Jay Young, 39, has been charged in a two-count indictment with attempting to use a minor to produce a visual depiction of sexually explicit conduct and attempting to coerce and entice a minor.

    According to the indictment, on or about January 20, 2024, Young is alleged to have knowingly and intentionally persuaded a minor to engage in sexually explicit conduct and record the conduct. Young’s crimes involving one minor victim, as alleged in the indictment, are part of a broader series of similar abusive crimes he is suspected to have committed involving multiple other children during a similar timeframe.

    Between April 4 and 8, 2024, the FBI applied for and obtained multiple federal search warrants for Young’s person, home and vehicles. On April 11, 2024, special agents and deputies from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Oregon State Police, the Lincoln County Sheriff’s Office, and the Lane County Sheriff’s Office executed the warrants and arrested Young.

    Five days later, on April 16, 2024, a federal grand jury in Portland returned an indictment charging Young. He was arraigned on the indictment Wednesday in federal court in Eugene by a U.S. Magistrate Judge. Young pleaded not guilty and was ordered detained pending further court proceedings.

    Attempting to use a minor to produce a visual depiction of sexually explicit conduct is punishable by up to 30 years in federal prison with a 15-year mandatory minimum sentence. Attempted coercion and enticement of a minor is punishable by up to life in prison with a 10-year mandatory minimum sentence.

    This case is being investigated by the FBI in conjunction with the Lane County Sheriff’s Office. It is being prosecuted by William M. McLaren, Assistant U.S. Attorney for the District of Oregon.

    An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

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

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

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

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  • MIL-OSI Security: Second Anchorage Man Sentenced to 35 Years in Federal Prison for Kidnapping and Drug Trafficking

    Source: US FBI

    Defendants brutally beat victim to near death and put him in a metal dog kennel which they loaded into a person’s truck at gunpoint.

    ANCHORAGE – A second Anchorage man was sentenced late yesterday by Chief U.S. District Judge Sharon Gleason to 35 years in prison for kidnapping and drug trafficking.

    According to court documents, Faamanu Vaifanua, aka “Junior,” 31, and his brother Macauther Christmas Vaifanua, aka “Mac,” 35, distributed heroin in the Anchorage area through the kidnapped victim between January 2015 and August 2017.

    Believing that the victim had stolen drugs from them, Mac lured the victim to his home on August 13, 2017. As the victim was leaving the residence, he was led instead into the garage where he was forcibly bound and gagged. The victim was then beaten and tortured for nearly an hour by Junior and Mac and two other co-defendants in an assault that was captured on Mac’s home video surveillance system. The Vaifanua brothers and their co-defendants used an aluminum baseball bat, a metal broom stick and their hands and feet to beat the defendant into unconsciousness, causing severe injuries and permanent disability. After a certain point, believing that the victim was either dead or near death, they placed the victim inside a metal dog kennel while still bound and gagged.

    The Vaifanua brothers and co-defendants then threatened a person in the area at gunpoint to back his pickup truck to the garage door. The group loaded the kennel into the back of the truck with the victim still in it. The driver was told at gunpoint to leave and never be seen again. After driving away from the area, the driver stopped to see what had been loaded into his truck. Upon seeing the victim, he immediately drove to a hospital emergency room where the victim received life-saving medical attention including brain surgery.

    “Junior” Vaifanua pleaded guilty to federal kidnapping and drug trafficking charges in June 2021.

    “This was a calculated act of savagery against another human being, not a random act of violence,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The Vaifanua brothers will spend decades in federal prison for their complete disregard for human life. Drug dealers across the state should take note – vicious attacks will not be tolerated for any reason. My office is committed to working tirelessly with our law enforcement partners to ensure justice is served.”

    “The defendant’s cruel disregard to human life and suffering is appalling,” said Assistant Special Agent in Charge Donald W. Lee II of the FBI Anchorage Field Office. “When individuals, such as the defendant and his co-conspirators, threaten the safety of our neighborhoods and communities, they will be met with a certain justice.”

    “The abuse suffered by the victim is heinous,” stated Anchorage Police Chief Michael Kerle. “The physical, emotional, and psychological effects of this magnitude of trauma are incomprehensible. It is our sincere hope today’s sentencing will aid in the victim’s life-long healing process.”

    Co-defendants in this case include:

    • Macauther Christmas Vaifanua, 35, aka “Mac” was sentenced to 50 years in federal prison on kidnapping and drug trafficking charges.
    • Jeffrey Ahvan, 33, pleaded guilty to kidnapping in October 2019 and is awaiting sentencing.
    • Rex Faumui, 28, pleaded guilty to kidnapping in October 2022 and is awaiting sentencing.
    • Tamole Lauina, 25, was sentenced to seven years in prison on being an accessory after the fact charge.  

    The Anchorage Police Department (APD), the Federal Bureau of Investigation (FBI), U.S Marshals Service (USMS) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case.

    Assistant U.S. Attorneys Stephan A. Collins and Adam Alexander prosecuted 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.

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    MIL Security OSI –

  • MIL-OSI Security: Want to Know More About Your Local FBI Office?

    Source: US FBI

    Apply for the FBI Phoenix Citizens Academy

    ARIZONA—The FBI Phoenix field office is seeking candidates for the 2024 Citizens Academy. Classes are held in person at our Phoenix, Tucson, and Flagstaff offices.

    The FBI Citizens Academy program is an engaging six to eight-week program that gives business, religious, civic, and community leaders an inside look at the FBI. Classes meet in the evenings at FBI field offices around the country. The mission of the FBI Citizens Academies is to foster a greater understanding of the role of federal law enforcement in the community through frank discussion and education.

    Candidates are nominated by FBI employees, former Citizens Academy graduates, and community leaders. Interested community members may also self-nominate if they hope to be selected.

    The deadline to submit nominations for the 2023 Citizens Academy in Arizona is November 28, 2023 by 12:00 p.m. If you are interested in applying, or if you are a Citizens Academy graduate or past/present FBI employee who would like to recommend someone you know, please complete the nomination process below.

    Incomplete and late nominations will not be accepted. Once nominations are received/reviewed, candidates will be notified within 3-4 weeks of the next step in the process.

    Nomination forms can be found online on the FBI Phoenix Outreach webpage, or at the following location: https://www.fbi.gov/contact-us/field-offices/phoenix/community-outreach

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  • MIL-OSI Security: Twenty-Nine-Year-Old Pascua Yaqui Man Sentenced to 120 Months in Prison for Molesting Fellow Tribal Member 10 Years Earlier

    Source: US FBI

    TUCSON, Ariz. – Orlando Miguel Valenzuela, 29, of Tucson, was sentenced on Monday by United States District Judge Cindy K. Jorgenson to 10 years in prison, followed by lifetime supervised release. Valenzuela pleaded guilty to Abusive Sexual Contact on January 23, 2023.

    In August 2019, the victim reported several instances of sexual abuse committed by Valenzuela that had occurred between 2013-2014, when the victim was under 12 years old and Valenzuela was over 18 years old. Valenzuela was located by law enforcement and indicted in April 2022. When Valenzuela is released from prison, he will be required to register as a sex offender for the rest of his life.

    The Federal Bureau of Investigation and the Pascua Yaqui Police Department conducted the investigation in this case. Assistant U.S. Attorney, Micah Schmit, District of Arizona, Tucson, handled the prosecution.
     

    CASE NUMBER:           22-CR-0682-TUC-CKJ
    RELEASE NUMBER:    2023-173_Valenzuela

    # # #

    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: Foreign National Charged with International Drug Trafficking

    Source: US FBI

    An indictment was unsealed in the District of Columbia today charging a foreign national with international fentanyl, heroin, methamphetamine, cocaine, and marijuana trafficking.

    According to court documents, between January 2017 and April 2021, Juan Carlos Morgan Huerta, aka Cacayo, conspired to import large quantities of fentanyl, heroin, methamphetamine, cocaine, and marijuana from Mexico into the United States. 

    Morgan Huerta is charged with conspiracy to manufacture and distribute 400 grams or more of fentanyl, one kilogram or more of heroin, 500 grams or more of methamphetamine, five kilograms or more of cocaine, and over 1,000 kilograms of marijuana for importation into the United States. If convicted, Morgan Huerta faces a mandatory minimum of 10 years in prison and a statutory maximum penalty of life in prison.

    Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Drug Enforcement Administration (DEA) Administrator Anne Milgram, and Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI) made the announcement.

    The Organized Crime Drug Enforcement Task Forces (OCDETF) supported the case.

    The FBI Tucson Field Office, OCDETF Strike Force, DEA Nogales Field Division, and HSI Tucson Field Office are investigating this case.

    Trial Attorneys Kirk Handrich and Lernik Begian of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs and Criminal Division’s Office of Enforcement Operations provided significant assistance.  

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

    MIL Security OSI –

  • MIL-OSI Security: Two Arizona Scammers Charged in Cryptocurrency Investment Scheme

    Source: US FBI

    PHOENIX, Ariz. – On September 19, 2023, a federal grand jury in Phoenix returned a 55-count indictment against Luis Ortega, 42, of Litchfield Park, and Jeremie Sowerby, 45, of Fountain Hills, for Wire Fraud and Transactional Money Laundering.

    The indictment alleges that Ortega and Sowerby scammed hundreds of victims out of millions of dollars in a cryptocurrency investment scheme. Under the guise of three entities, Ortega and Sowerby marketed a “risk-free” investment opportunity in “leases” of purported Bitcoin mining machines located abroad (Now Mining); a direct investment in Bitcoin mining machines in Arizona (VIP Mining); and a real estate and technology company through which investors could purchase custom-built container houses using the defendants’ proprietary “Millennium” cryptocurrency. Each entity involved the promise of lavish giveaways and profits that could be accessed and liquidated immediately. In reality, the entire scheme was based on lies. Ortega and Sowerby siphoned the victim funds to bank accounts they controlled and used the money for themselves, including for the purchase of properties and a new vehicle, and extensive cash withdrawals.

    A conviction for wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000, or both. A conviction for transactional money laundering carries a maximum penalty of 10 years in prison and a fine of up to $250,000, or both.

    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 and IRS Criminal Investigation are conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.

    A number of victims have been identified by the FBI and IRS CI. However, there is evidence that victims remain unidentified. Anyone who believes they were defrauded by the defendants in this case should contact the Victim Witness Section at the U.S. Attorney’s Office for the District of Arizona at usaaz.victimassist@usdoj.gov or fill out the questionnaire at this link: https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/seeking-potential-victims-of-jeremie-sowerby-luis-ortega-fraud-schemes. Victims can access information regarding the case status here: https://www.justice.gov/usao-az/us-v-luis-ortega-jeremie-sowerby.

    CASE NUMBER:           CR-23-01321-PHX-SMB
    RELEASE NUMBER:    2023-180_Ortega/Sowerby

    # # #

    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: Woman Ordered to Pay Over $38,000 in Restitution for Interference with Flight Crew on Hawaii-Bound Flight

    Source: US FBI

    PHOENIX, Ariz. – Cayla Farris, 29, of Hawaii, was sentenced last week by United States District Judge Susan M. Brnovich to a time-served sentence of 3.6 months in prison, followed by three years of supervised release. During her term of supervised release, Farris will not be permitted to travel by commercial aircraft without prior approval. Farris was ordered to pay $38,952.00 in restitution to American Airlines for delay-related costs due to her actions. Farris pleaded guilty on September 12, 2023, to Interference with a Flight Crew Member.

    On February 13, 2022, Farris boarded an American Airlines flight from Phoenix to Honolulu, Hawaii. During the flight, Farris used profanity and threatened the flight crew and passengers onboard. As a result of her behavior, the flight crew was unable to continue their duties. The captain ultimately decided to turn the plane back to Phoenix. For passengers onboard, this disturbance caused several flights to be re-routed to Hawaii.  

    The Federal Bureau of Investigation and the Phoenix Police Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.

    CASE NUMBER:           CR-22-01393-PHX-SMB
    RELEASE NUMBER:    2023-176_Farris

    # # #

    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: Two Drug Dealers Convicted of Conspiring to Murder Federal Witness

    Source: US FBI

          LITTLE ROCK—After almost two weeks of trial, a federal jury has found two drug dealers guilty of their involvement in conspiracy that resulted in the murder of a federal informant. Don Smith, 38, of Malvern, Arkansas, and Samuel Sherman, 38, of Batesville, Arkansas, were found guilty when the jury returned their verdict late Tuesday evening. Chief United States District Judge D. Price Marshall, Jr., presided over the trial, and Judge Marshall will sentence Smith and Sherman later.

          Both Smith and Sherman were convicted of conspiracy to cause witness tampering resulting in death. Smith was also convicted of witness tampering resulting in death, conspiracy to distribute methamphetamine, and possession of a firearm during and in relation to a drug trafficking crime resulting in first degree murder.

          Smith and Sherman were originally charged in September 2019 in connection with the death of Susan Cooper, who had bought methamphetamine from Sherman but had begun working as an informant for law enforcement. In May 2016, Sherman was arrested and charged with selling methamphetamine to Cooper. As his case progressed, Sherman was released and permitted to work as an informant himself.

          Though Sherman was supposed to be working as an informant, he had not provided enough information to help his case, and in September 2016, Sherman learned he was facing a significant federal prison sentence. Evidence at trial showed that upon learning this, Sherman called Smith, who was a methamphetamine dealer in the Malvern area. Smith had sold drugs to Rachael Cooper, who was Susan Cooper’s sister-in-law (they were married to brothers).

          Cellular tower data presented at trial showed that shortly thereafter, Smith drove from Malvern to Batesville, where Sherman lived, and stayed in Batesville for approximately 40 minutes before returning to Malvern. On the way back to Malvern, Smith called Rachael. Rachael had been communicating with Susan about making arrangements for Susan to trade some hydrocodone pills for methamphetamine. Susan did not know the trade was with Smith.

          That night, Rachael picked Susan up and drove her to meet Smith for the drug exchange. Rachael testified at trial that as they waited, she heard a gunshot followed by Susan crying out “I’m shot—get me out of here!” Rachael jumped in the driver’s seat and saw Smith shoot Susan several more times. Smith pulled Susan from the truck as Rachael sped away.

          For a year and a half, Susan Cooper’s body had not been found. In July 2018, Smith was charged in state court with the murder, and after his arrest, a witness came forward to disclose Smith had demanded he help bury the body. This witness took federal agents to the location of Cooper’s body.

          “Rest assured that any attempt to harm a federal witness will be met with swift and forceful justice,” said Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “Our entire system of justice is based on the ability of witnesses to speak truthfully in open court. Any attempt to prevent a witness from doing so—especially an attempt that results in a witness’s death—will be investigated and prosecuted. We appreciate the work of the many agencies who collaborated to bring this brutal crime to a resolution.”

          “The conviction of Sherman and Smith sends a clear message to all who conspire to commit murder in our district: we will work together with our federal, state, and local and law enforcement partners to see that anyone involved in this type of horrific crime is brought to justice. This case highlights the impact multiple agencies can have when they join forces,” said DEA Assistant Special Agent in Charge Jarad Harper.

          “Smith and Sherman callously planned the brutal execution of Susan Cooper in an effort to protect their criminal activity,” said FBI Little Rock Special Agent in Charge James Dawson. “In response to the murder of a federal informant, FBI agents joined forces with DEA investigators, Malvern police detectives, and Hot Spring County Sheriff’s deputies to bring Smith and Sherman to justice. This case highlights the value of law enforcement partnerships and proves that the FBI and our partners will use every available resource to investigate and pursue criminals who harm or intimidate federal witnesses.”

          The statutory penalty for conspiracy to cause witness tampering resulting in death is life imprisonment, as is the penalty for witness tampering resulting in death. Neither Smith nor Sherman will be eligible for release.

          The investigation was conducted by the Hot Springs County Sheriff’s Office, Malvern Police Department, the Drug Enforcement Administration, and the FBI. The case involved significant collaboration between the Hot Spring County Prosecutor’s Office and the United States Attorney’s Office for the Eastern District of Arkansas. The case was prosecuted by Assistant United States Attorneys Anne Gardner and Bart Dickinson.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Pope County White Supremacist Operative Convicted of Racketeering

    Source: US FBI

          LITTLE ROCK—A two-week federal jury trial has resulted in the conviction of the financial backer of a white supremacist gang for his involvement in a racketeering and drug conspiracy. Marcus Millsap, 54, of Little Rock, was found guilty on all counts when the jury returned their verdict late Friday afternoon. United States District Judge Brian S. Miller presided over the trial, and Judge Miller will sentence Millsap later.

          Millsap was indicted in September 2019 for his involvement in a white supremacist prison gang known as the “New Aryan Empire,” or NAE. NAE’s slogan is “to the dirt,” referring to the fact that members must remain in the organization until they die. Millsap was charged with, and ultimately convicted of, conspiracy to violate racketeering influenced corrupt organization laws, or RICO, attempted murder in aid of racketeering,  and drug conspiracy. Evidence at trial established that Millsap and others used the NAE as a corrupt organization to conduct racketeering activities including drug distribution, solicitations of murder, and attempted murder.

          At trial, the prosecution presented evidence that in May 2014, Millsap sold methamphetamine to an individual named Bruce Hurley, who was working as a confidential informant. Once Hurley completed the controlled purchase of methamphetamine and reported back to law enforcement, a traffic stop located more methamphetamine in Millsap’s vehicle. Millsap was convicted in the methamphetamine case, and while on an appeal bond, Millsap solicited members and associates of NAE  to kill Hurley for his work in cooperating with law enforcement against Millsap. In January 2016, other NAE members attempted to murder Hurley. That attempt failed, and NAE members and associates continued attempting to arrange Hurley’s death.  This conduct resulted in Millsap’s conviction Friday for attempted murder in aid of racketeering.

          Another 54 defendants were indicted in the case, all of whom have pleaded guilty except for Millsap and Troy Loadholt, who is currently a fugitive. While some defendants are still awaiting sentencing, the highest sentence so far has been given to Wesley Gullett, who was the President of the New Aryan Empire. Gullett was sentenced to 35 years imprisonment.

          “The United States will not tolerate the vile and outrageous crimes committed by members and associates of the New Aryan Empire or any other white supremacist group,” said Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “If you are a member or associate of this or any other violent criminal organization, know that the United States will stop at nothing to dismantle and disrupt those who pose a threat to our communities and the future of our children.”

          The statutory penalty for conspiracy to violate racketeering laws is up to life imprisonment. The statutory penalty for attempted murder in aid of racketeering is up to 10 years imprisonment. The statutory penalty for conspiracy to possess with intent to distribute methamphetamine, based on the amount of methamphetamine involved in the case, is a minimum of 15 years and up to life imprisonment.

          The investigation included the Bureau of Alcohol, Tobacco, and Firearms; the Drug Enforcement Administration; the Federal Bureau of Investigation; the Pope County Sheriff’s Office; the Russellville Police Department; the U.S. Marshals Service; the U.S. Postal Inspection Service; the Arkansas State Police; 5th Judicial Drug Task Force; the Conway Police Department, and the Arkansas Army National Guard’s Counterdrug Unit. The case was prosecuted by Assistant United States Attorneys Liza Brown and Stephanie Mazzanti.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: River Valley Group Sentenced to More Than 206 Years Combined in Federal Prison for Drug Trafficking

    Source: US FBI

    FORT SMITH, Ark. – The final members of an Arkansas River Valley group have been sentenced to federal prison for the Distribution of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings for the United States District Court in Fort Smith.

    In the fall of 2019, Agents with the DEA and the FBI launched an investigation into drug trafficking and money laundering in the Western District of Arkansas. For approximately a year between September 2019 and September of 2020, agents conducted extensive investigative activities into a large, River Valley-based drug trafficking organization led by Manuel “Chuy” De Jesus Perez-Echeverria.

    This investigation resulted the arrest, prosecution, and imprisonment of twenty-two (22) individual drug traffickers and money launderers and the seizure of approximately 6.5 kilograms of methamphetamine, 15 firearms, and $146,687 in funds derived from drug trafficking.

    The sentencings of the drug trafficking organization members are as follows:

    WDAR Case No. 2:20 CR 20014 – 001-004 – (Indictment issued July 28, 2020)

    Alexis Tirado – age 27, Fort Smith, Arkansas – sentenced April 8, 2021 to 180 months BOP and $100 special assessment for Aiding and Abetting in the Distribution of More Than 50 Grams of Methamphetamine.

    Emmanuel Miranda – age 25, Fort Smith, Arkansas – sentenced April 1, 2021 to 78 months BOP and $100 special assessment for Conspiracy to Distribute More Than 5 Grams of Methamphetamine.

    Israel Miranda-Zapata – age 30, Fort Smith, Arkansas – sentenced April 1, 2021 to 108 months BOP and $100 special assessment for Conspiracy to Distribute More Than 5 Grams of Methamphetamine.

    Brenda Golden Day – age 36, Fort Smith, Arkansas – sentenced April 1, 2021 to 60 months BOP and $100 special assessment for Distribution of More Than Five Grams of Methamphetamine.

    WDAR Case No. 2:20 CR 20017-001-018 (Original Indictment issued August 26, 2020, Superseding Indictment issued October 7, 2020)

    Manuel “Chuy” De Jesus Perez-Echeverria – age 36, Fort Smith, Arkansas – sentenced October 22, 2021 to 360 months BOP, $100 special assessment, and $20,000 fine for Conspiracy to Distribute More Than Five Hundred (500) Grams of a Mixture or Substance Containing Methamphetamine.

    Humberto “Beto” Acosta-Martinez – age 33, Poteau, Oklahoma – sentenced October 12, 2021 to 48 months BOP, $100 special assessment, $300 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.

    Shaun Michael Easton – age 40, Fort Smith, Arkansas – sentenced November 9, 2021 to 108 months BOP, $100 special assessment, $900 fine for Distribution of More Than Five (5) Grams of Methamphetamine.

    Julio Ivan Enriquez-Munoz – age 41, Oklahoma City, Oklahoma – sentenced November 8, 2021 to 51 months BOP, $100 special assessment, $400 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.

    Alberto Ledesma – age 43, Fort Smith, Arkansas – sentenced October 18, 2021 to 188 months BOP, $100 special assessment and $2,900 fine for Distribution of More than Fifty (50) Grams of Methamphetamine.

    Efrain Maciel-Martinez – age 54, Fort Smith, Arkansas – sentenced October 14, 2021 to 78 months BOP, $100 special assessment, $300 fine for Possession of More Than Fifty (50) Grams of a Mixture or Substance Containing Methamphetamine with Intent to Distribute.

    Makayla Nicole Martin – age 22, Fort Smith, Arkansas – sentenced October 15, 2021 to 63 months BOP, $100 special assessment and $1,400 fine for Money Laundering.

    Traye Everett Martin – age 26, Fort Smith, Arkansas – sentenced October 14, 2021 to 57 months BOP, $100 special assessment, $1,400 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.

    Nicholas “Nico” Moron-Rivera – age 29, Fort Smith, Arkansas – plead guilty on September 16, 2021 to Distribution of Methamphetamine. Sentencing has not yet been scheduled.

    Julie Ann Pyles – age 42, Fort Smith, Arkansas – sentenced October 13, 2021 to 78 months BOP, $100 special assessment, $1,400 fine for Money Laundering.

    Paula Lynne Rider – age 58, Fort Smith, Arkansas – sentenced October 6, 2021 to 87 months BOP, $100 special assessment and a $900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.           

    Ezequiel Rodriguez – age 43. Heavener, Oklahoma – sentenced October 21, 2021 to 210 months BOP, $100 special assessment, $14,653.19 in restitution to the DEA for methamphetamine laboratory cleanup/abatement for Conspiracy to Distribute More Than Five-Hundred (500) Grams of a Mixture or Substance Containing Methamphetamine.

    Ronal Salinas – age 24, Fort Smith, Arkansas – sentenced October 5, 2021 to 33 months BOP, $100 special assessment, $900 fine for Distribution of More Than Five (5) Grams of Methamphetamine.

    Benjamin Valdez – age 38, Paris, Arkansas – sentenced October 21, 2021 to 262 months BOP, $100 special assessment and a $5,000 fine for Distribution of More Than Five (5) Grams of Methamphetamine.

    Amber Renee Vance – age 35, Fort Smith, Arkansas – sentenced July 21, 2021 to 130 months BOP and a $100 special assessment for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.

    Richard James Vineyard – age 33, Fort Smith, Arkansas – sentenced November 9, 2021 to 120 months BOP, $100 special assessment, $900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.

    Emily Elizabeth Williams – age 31, Fort Smith, Arkansas – sentenced October 5, 2021 to 70 months BOP, $100 special assessment, $900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.

    Michael Dean Wilson – age 38, Hot Springs, Arkansas – sentenced October 13, 2021 to 110 months BOP, $100 special assessment, $1900 fine for Conspiracy to Distribute a Mixture or Substance Containing Methamphetamine.

    Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas, FBI Little Rock, Special Agent in Charge Jim Dawson, and DEA Little Rock, Assistant Special Agent in Charge Jarad Harper made the announcement.

    DEA – Fort Smith, AR; McAllister, OK; Atlanta, GA, FBI – Fort Smith, AR; Oklahoma City, OK; Miami, FL, U.S. Marshals Service, ATF – Fort Smith, AR, State & Local Agencies – Logan County Sheriff’s Office, Fort Smith Police Department, Sebastian County Sheriff’s Office, Greenwood Police Department, Paris Police Department, Crawford County Sheriff’s Office, 12th/21st Judicial District Drug Task Force, Arkansas State Police, and the Oklahoma Highway Patrol investigated the case.

    Assistant U.S. Attorney Brandon Carter prosecuted the case for the United States.

    Today’s announcement is part of the Western District of Arkansas’ Operation Bear Mountain Bingo, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program.  The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy.  OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations.  Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement.  The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.

    MIL Security OSI –

  • MIL-OSI Security: Bismarck Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of a Minor

    Source: US FBI

    HOT SPRINGS, ARK. – Aaron Edward Briggs, 28, formerly of Morgan City, Louisiana, was sentenced yesterday to thirty (30) years in prison without the possibility of parole on one count of Sexual Exploitation of a Minor via the Production of Child Pornography. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.

    According to court documents, in 2019, Briggs met and began a sexual relationship with a 15-year-old female. During the course of the sexual relationship, Briggs sent a picture of his genitals to the minor via Facebook Messenger. During a subsequent online conversation, Briggs requested that the minor take and send him sexually explicit images of herself. The evidence recovered during the investigation revealed numerous sexually explicit images of the minor that were sent to Briggs.

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

    The Federal Bureau of Investigations, Little Rock Division investigated the case.

    Assistant U.S. Attorney Kyra Jenner prosecuted the case for the United States.

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

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  • MIL-OSI Security: Culver City Restauranteur Pleads Guilty to Fraudulently Obtaining More Than $4 Million in COVID-19 Business-Relief Loans

    Source: US FBI

    SANTA ANA, California – A Culver City man and restauranteur who owns a hospitality company that has developed restaurants and hotels in California, Tennessee, and Kentucky pleaded guilty today to fraudulently obtaining more than $4 million COVID-19 economic-relief loans.

    Philip Frederick Camino, 45, pleaded guilty to one count of conspiracy to commit wire fraud.

    During the spring of 2020, Congress created these two federal programs to provide financial assistance to Americans suffering economic harm because of the COVID-19 pandemic.

    According to his plea agreement, Camino owns several companies based in Hollywood, Westwood, Studio City, and Beverly Hills as well as in Arizona. From April 2020 to April 2021, Camino submitted and caused to be submitted false and fraudulent applications to the United States Small Business Administration (SBA) and banks for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).

    In these applications, Camino made false statements, including inflating the number of employees to whom were paid wages, providing fictitious federal tax forms that were never filed with the IRS, and falsely certifying that the loan proceeds would be used for permissible business purposes.

    Relying on Camino’s false information, the SBA and lenders approved and funded these loans, the proceeds of which were transferred to a bank account under Camino’s control. Camino used most of the fraudulently obtained money for expenses prohibited under the PPP and EIDL programs, including paying more than $100,000 in kickbacks to his accomplice.

    For example, in June 2020, Camino emailed a bank containing false documentation to support a $144,270 fraudulent PPP loan application on behalf of a company controlled by a co-conspirator.

    In total, Camino submitted more than 20 fraudulent loan applications from which he obtained more than $4 million.

    United States District Judge Fred W. Slaughter scheduled a March 6, 2025, sentencing hearing, at which time Camino will face a statutory maximum sentence of 20 years in federal prison.

    Homeland Security Investigations, the FBI, and IRS Criminal Investigation are investigating this matter.

    Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office is prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: California Doctor Sentenced for Health Care Fraud Scheme

    Source: US FBI

    A California man was sentenced today to 37 months in prison for his role in a $2.8 million fraud scheme in which Medicare was billed for hospice services that the patients did not need.

    According to court documents and evidence presented at trial, John Thropay, M.D., 75, of Arcadia, was the medical director of multiple hospice companies, including Blue Sky Hospice Inc., located in Van Nuys, California. From October 2014 to March 2016, Thropay fraudulently certified Medicare patients of Blue Sky Hospice as having terminal illnesses that the patients did not have so that the company could bill Medicare for hospice services. In 2015, Thropay was listed as attending provider for more hospice claims paid by Medicare than any other provider in the nation.

    Thropay was convicted at trial in the Central District of California of one count of conspiracy to commit health care fraud and four counts of health care fraud on Feb. 15.

    Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney E. Martin Estrada for the Central District of California, Acting Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office and Special Agent in Charge Timothy DeFrancesca of the Department of Health and Human Services, Office of Inspector General (HHS-OIG)’s Los Angeles Regional Office made the announcement.

    The FBI and HHS-OIG investigated the case.

    Assistant Deputy Chief Niall M. O’Donnell and Trial Attorney Eric C. Schmale of the Criminal Division’s Fraud Section prosecuted the case.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit. 

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  • MIL-OSI Security: Former San Gabriel Valley Teacher Charged with Receiving and Possessing Child Sexual Abuse Material

    Source: US FBI

    LOS ANGELES – A former elementary school teacher in the San Gabriel Valley is scheduled for arraignment today on a federal grand jury indictment charging him with receiving and possessing child sexual abuse material.

    Steven Pilar, 47, of Las Vegas, is charged in a four-count federal indictment with two counts of receiving child pornography and two counts of possessing child pornography.

    A federal grand jury returned the indictment on July 19, 2024. Pilar was arrested on August 2 in Las Vegas, where he made his initial appearance. A federal magistrate judge in Nevada ordered Pilar jailed without bond. Pilar’s arraignment is scheduled for this afternoon in United States District Court in downtown Los Angeles.

    According to the indictment, on February 8, 2020, and April 10, 2020, Pilar knowingly received and downloaded over 400 videos and images of child sexual abuse material (CSAM) via BitTorrent for viewership. Pilar was employed as an elementary school teacher in La Puente at the time. He no longer works at the school.

    Pilar was arrested on state charges, which were later dropped so a federal case could be pursued.

    “This defendant, whose former job put him in a position of trust with children, is accused of participating in an underground market that trades on the sexual exploitation of kids,” said United States Attorney Martin Estrada. “Protecting children from sexual predators is critical and my office will be unrelenting in our efforts to punish those who commit these crimes.”

    An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty beyond a reasonable doubt in court.

    If convicted, Pilar would face a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 80 years in federal prison.

    The FBI and the San Bernardino County Sheriff’s Department are investigating this matter.

    Assistant United States Attorney Joshua J. Lee of the General Crimes Section is prosecuting this case.

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  • MIL-OSI Security: Aryan Brotherhood Prison Gang Member Sentenced to Life in Prison for Murder-in-Aid of Racketeering

    Source: US FBI

    SACRAMENTO, Calif. — Jason Corbett, 52, of Paradise, was sentenced today by U.S. District Judge Kimberly J. Mueller to life in prison for murder in aid of racketeering, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. AB members oversaw a significant heroin and methamphetamine trafficking operation from their California prison cells using smuggled cellphones to direct drug trafficking activities, order murders, and oversee other criminal activities inside and outside of the prisons.

    According to Corbett’s plea agreement, on July 28, 2018, Corbett murdered an inmate at High Desert Prison as part of an AB-related killing. Corbett admitted that he committed the murder because the victim falsely claimed to be an AB member and had run up a significant drug debt at his previous prison — both violations of the AB’s expected codes of conduct. Corbett willfully, deliberately, and with premeditation, murdered the victim in order to maintain his status within the gang.

    On Jan. 3, 2024, Corbett’s co-defendant in the murder, Pat Brady, 54, pleaded guilty to the same murder in aid of racketeering. He was sentenced to life in prison on Aug. 5, 2024.

    In April 2024, following a nine-week trial, a federal jury found three of Corbett’s co-defendants guilty of RICO conspiracy, conspiracy to murder, murder in aid of racketeering, and multiple counts of drug trafficking. Ronald Yandell, 62, and Billy Sylvester, 56, are scheduled to be sentenced by Judge Mueller on Nov. 19, 2024. Danny Troxell, 71, will be sentenced at a date to be set by the Court.

    During a status conference today, Kathleen Nolan, 70, of Calimesa, entered a guilty plea for her part in the drug trafficking conspiracy with AB members and associates. She is scheduled to be sentenced on Dec. 17, 2024. Charges are pending against Kevin MacNamara, 44, of La Palma. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

    This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case.

    The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) program. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

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  • MIL-OSI Security: Former UC Davis and Davis Club Water Polo Coach Sentenced to Over Seven Years in Prison for Distribution of Visual Depictions of Minors Engaged in Sexually Explicit Conduct

    Source: US FBI

    SACRAMENTO, Calif. — Daniel Joseph Noble, 28, residing in San Diego County, was sentenced Thursday by U.S. District Judge Daniel J. Calabretta to seven years and three months in prison for knowing distribution of visual depictions of minors engaged in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced. Noble was also ordered to pay $20,000 in restitution to the victims of his crimes.

    According to court records, between March 10, 2022, and April 12, 2022, Noble participated in a Kik private group chat dedicated to sharing videos of children being sexually abused or exploited. Noble shared over a dozen video files with the Kik group. Some of those files that Noble shared showed prepubescent minors being sexually and sadistically abused by adults. At the time he engaged in this conduct, Noble was working as the assistant water polo coach for UC Davis men’s team and the associated youth team.

    “This sentence of more than seven years sends a clear message that this content and the horrific abuse it depicts is neither legal nor acceptable in our society,” Special Agent in Charge Sid Patel of the FBI Sacramento Field Office stated. “The FBI continues to make the pursuit of individuals who produce, share, and consume content that is the result of abuse of a child a top priority. We are deeply committed to working with our law enforcement partners and prosecutors in an effort to protect children.”

    This case was the product of an investigation by the Federal Bureau of Investigation in Sacramento and in Jacksonville, Florida, and the Sacramento Valley Hi-Tech Crimes Task Force. Assistant U.S. Attorney Christina McCall prosecuted 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

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  • MIL-OSI Security: Project Safe Neighborhoods News for September 2024

    Source: US FBI

    SACRAMENTO, Calif. — The Project Safe Neighborhoods (PSN) initiative brings together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence. At the core of PSN is setting focused and strategic enforcement priorities that help prevent violence from occurring in the first place. U.S. Attorney Phillip A. Talbert announces the following actions in federal PSN cases.

    Indictments

    Anthony Carter, 22, of Elk Grove, and Isaiah Rowland, 28, of Antelope, were indicted on Aug. 15, 2024, each charged with being a felon in possession of a firearm. The indictment was unsealed following their arrests on Sept. 5. According to court documents, Carter is prohibited from possessing a firearm due to prior felony convictions for reckless evasion of a peace officer, felon in possession of a firearm, and possession of a firearm by a person on probation. Rowland, too, is prohibited from possessing a firearm due to prior felony convictions for robbery, failure to appear on a felony charge, and carrying a loaded firearm. This case is the result of the ongoing collaboration between the Sacramento Police Department and its local, state, and federal partners as part of a Public Safety Partnership (PSP) to address violent crime in the community. Started in 2022, the Sacramento PSP is a multi-faceted violence-reduction strategy that relies on innovative data-driven strategies to promote public and community safety. Participating PSP partners include: the Sacramento District Attorney’s Office, Sacramento FBI, Sacramento DEA, Sacramento ATF, the Sacramento U.S. Marshals, and the U.S. Attorney’s Office. Assistant U.S. Attorney Zulkar Khan is prosecuting the case.

    Richard Lee Dazo, 38, of West Sacramento, was indicted on Sept. 12, 2024, charged with being a felon in possession of a firearm and ammunition. According to court documents, on Aug. 13, 2024, Dazo was found to be in possession of a loaded Remington 870 shotgun and a pellet gun loaded with live ammunition. Dazo is prohibited from possessing a firearm due to prior felony convictions for assault with force likely to produce great bodily injury and criminal street gang activity, being a felon in possession of a firearm, possession of metal knuckles, and possession of a concealed dirk or dagger. This case is the product of an investigation by the West Sacramento Police Department, FBI Safe Streets Task Force, and Yolo County District Attorney’s Office. Special Assistant U.S. Attorney Matthew De Moura is prosecuting the case.

    If convicted, defendants Carter, Rowland and Dazo face a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

    Guilty Plea

    Sean Arthur Robinson, 37, of Stockton, pleaded guilty on Sept. 10, 2024, to illegal possession of a firearm. According to court documents, law enforcement officers recovered a loaded Glock 27 semi-automatic firearm and a loaded magazine inside a vehicle while serving a search warrant at Robinson’s residence in Stockton in September 2022. The firearm had previously been reported stolen from Sacramento. Robinson is prohibited from possessing firearms due to prior convictions for elder abuse and for carrying a loaded firearm in public. Law enforcement’s investigation into Robinson began at least as early as May 2021, when surveillance footage captured him engaging in a violent shootout at the Grand Hyatt Hotel near San Francisco International Airport. During this incident, Robinson and a compatriot attempted to carjack at least two other vehicles. Following the shootout, law enforcement officers seized a black duffel bag that surveillance footage captured Robinson carrying just before the firefight began and contained three illegal firearms. This case is the product of an investigation by the FBI with assistance from the San Francisco Police Department. Assistant U.S. Attorneys Justin Lee and Sam Stefanki are prosecuting the case.

    Robinson is scheduled to be sentenced on Jan. 7, 2025. He faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

    Sentencings

    Jacob Harding-Abeyta, 31, of Vallejo, was sentenced on Sept. 10, 2024, to four years and nine months in prison for being a felon in possession of a firearm and possession of cocaine for sale. According to court documents, on Oct. 7, 2020, a parole search of Harding-Abeyta’s residence resulted in the discovery of a loaded .45-caliber Springfield XDS firearm in his bedroom. Harding-Abeyta is prohibited from possessing firearms or ammunition because he was previously convicted in Solano County for attempted murder in 2014. Officers also discovered 39 grams of powder cocaine, a digital scale, plastic baggies, and other drug paraphernalia. A search of the defendant’s phone revealed that he was selling this and other cocaine. Additionally, Harding-Abeyta also admitted in his plea agreement that he committed obstruction of justice by attempting to suborn perjury of a witness during a prior evidentiary hearing in this case. This case was the product of an investigation by the Solano County Sheriff’s Office, the Solano County District Attorney’s Office, the ATF, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorneys Haddy Abouzeid, Jason Hitt, Adrian T. Kinsella prosecuted the case.

    Sovan Leng, 34, of Stockton was sentenced on Sept. 10, 2024, to two years and six months in prison for being a felon in possession of a firearm. According to court documents, on Oct. 16, 2023, Leng was found to be in possession of a Glock-17 9 mm pistol. Leng is prohibited from possessing a firearm due to several prior felony convictions for assault with a deadly weapon, carrying a loaded firearm, possession of a stolen vehicle, being a felon in possession of a firearm, and possession of a controlled substance. This case was the product of an investigation by the Stockton Police Department and ATF. Assistant U.S. Attorneys Alstyn Bennett and Zulkar Khan prosecuted the case.

    These cases are 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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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  • MIL-OSI Security: Tehama County Man Sentenced to Over 19 Years in Prison for Child Exploitation Offense

    Source: US FBI

    SACRAMENTO, Calif. — Eduardo Castillo, 39, of Corning, was sentenced today to 19 years and seven months in prison for online enticement of a minor for sexual purposes, U.S. Attorney Phillip A. Talbert announced.

    Castillo had previously fled to Mexico to avoid prosecution; however, he was returned to the United States in August 2023 thanks to the collaboration of the FBI, Mexican law enforcement officials, and Mexican immigration officials.

    According to court documents, between July 13, 2020, and Aug. 27, 2020, Castillo used a cellphone and the internet to entice at least five minor victims into sending him images and videos of themselves engaging in sexually explicit conduct.

    During that timeframe, Castillo posed as one or more teenage girls on social media platforms such as Snapchat and Instagram. Using images of teenage girls that he had downloaded from the internet, Castillo initiated chats and then exchanges of images with his male victims. Castillo then asked for child sexual abuse material in return, assuring his victims that the images and videos would be deleted. In reality, Castillo screen-recorded the videos and images and saved them on his devices.

    This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow prosecuted 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

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  • MIL-OSI Security: Attorney General Garland Honors U.S. Department of Justice Employees and Others for Their Service at Annual Awards Ceremony

    Source: US FBI

    SAN DIEGO – Attorney General Merrick B. Garland today announced the recipients of the annual Attorney General’s Awards recognizing extraordinary work of Justice Department employees and others. Recipients included several San Diego-based federal prosecutors and San Diego County District Attorney Summer Stephan.

    “Each of today’s recipients has served with distinction, and in so doing, they have enabled the Justice Department to advance its work on behalf of the American people,” said Attorney General Garland. “Their exceptional leadership, heroism, and dedication have benefited people and communities across the country.”

    San Diego recipients include:

    • Chief of National Security and Cybercrimes John Parmley; Assistant U.S. Attorneys Fred Sheppard and Sabrina Feve; FBI Special Agents Amy Poling, Adam James, Marina Shalfeyeva, Nicholas Arico, and Udell Hardy; and FBI Supervisory Special Agent Edison Constante. They received the Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security, which recognizes outstanding achievements and contributions toward protecting U.S. national security. They were singled out for their work on an espionage case. Please see https://www.justice.gov/usao-sdca/pr/four-chinese-nationals-working-ministry-state-security-charged-global-computer.

      “This extraordinary team identified and exposed a worldwide computer-hacking campaign,” said U.S. Attorney Tara McGrath.  “Their perseverance and dedication disrupted China’s efforts to steal trade secrets and sensitive data from universities, companies, and governmental organizations around the globe.”
       

    • First Assistant U.S. Attorney Peter Ko, second-in-command of the U.S. Attorney’s Office, was recognized for exemplary leadership over the course of his DOJ career. “Mr. Ko has demonstrated outstanding professionalism and commitment to justice for more than two decades,” McGrath said. “I can’t think of anyone more deserving of this recognition.”
       
    • San Diego County District Attorney Summer Stephan received the Attorney General’s Award for Meritorious Public Service. Each year the DOJ gives out just one award for meritorious public service nationwide. The award is designed to recognize significant contributions of citizens and organizations that have assisted the Department in accomplishing its mission and objectives.

      “During Summer Stephan’s tenure as DA, San Diego has remained one of the safest large cities in America,” McGrath said. “Collaborative law enforcement relationships have been a hallmark of DA Stephan’s leadership.  Her work with Department of Justice partners has resulted in dozens of high-impact cases, from fentanyl trafficking and elder fraud to illegal firearms and violent crime.”

    For a comprehensive list of all award winners, please see https://www.justice.gov/opa/pr/attorney-general-merrick-b-garland-honors-justice-department-employees-and-partners-70th-and.

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  • MIL-OSI Security: Man Sentenced to 12 Years for Sex Trafficking a 15-Year-Old Girl

    Source: US FBI

    NEWS RELEASE SUMMARY – February 12, 2024

    SAN DIEGO – Gabriel Joseph Gonzalez of Pomona, California was sentenced in federal court today to 12 years in prison for sex trafficking a 15-year-old girl in early 2023.

    Gonzalez pleaded guilty in July 2023 to one count of sex trafficking of a minor. The victim was a runaway living at a group home in Los Angeles County when Gonzalez began trafficking her. Gonzalez had known the victim since she was 13. He enticed her to leave the group home to engage in commercial sex work for Gonzalez’s financial benefit. He then transported the victim to San Diego and forced her to walk areas known for prostitution on Dalbergia Street in San Diego and Roosevelt Avenue in National City.

    During January 2023, Gonzalez forced the victim to engage in commercial sex work every day for seven straight days– except for the victim’s 16th birthday. He allowed her to take that day “off.”

    The victim escaped by calling 911. She was rescued by the San Diego Police Department on January 26, 2023, and the case was turned over to the San Diego Human Trafficking Task Force.

    Even after entering a guilty plea in July 2023, Gonzalez attempted to continue to traffic the victim while in custody through jail calls. U.S. District Judge Larry Alan Burns pronounced the 12-year sentence, noting Gonzalez’s “absolute lack of remorse” in his conduct while in custody and his continued victimization of the minor.

    “The victim’s courage to call 911 in this case was extraordinary,” said U.S. Attorney Tara McGrath. “Her trust in law enforcement demonstrated that when someone reports abuse, the public servants in this community are all hands on deck to bring abusers to justice.”

    “Human trafficking and sexual exploitation of a minor is inexcusable,” said Attorney General Rob Bonta. “At the California Department of Justice, we are fighting to hold perpetrators accountable and help survivors get a fresh start. I’m thankful to all our partners for their collaboration in the California DOJ-led San Diego Human Trafficking Task Force. I’m proud of our office’s work to help uplift vulnerable Californians. When we work together, we get results.”

    “The vital work being done by local and federal partners on the Human Trafficking Task Force to combat sex trafficking cannot be quantified,” said FBI San Diego Special Agent in Charge Stacey Moy. “The violence or coercion that is committed against sex trafficking victims can have a lasting negative impact on the victim, their families, and the community for years to come.”

    If you are living or working under threat of violence or extortion, or you suspect someone else may be, call the National Human Trafficking Resource Center toll free, 24/7 Hotline: CALL: (888) 373-7888 or TEXT BeFree or 233733.

    This case was prosecuted by Assistant U.S. Attorney Derek Ko and Lyndzie M. Carter.

    DEFENDANTS                                             Case Number 23-cr-0513-LAB                              

    Gabriel Joseph Gonzalez                                            Age: 20                                   Pomona, CA

    SUMMARY OF CHARGES

    Sex Trafficking of a Minor – Title 18, U.S.C., Section 1591(a) and (b)(1)

    Maximum penalty: Up to life in prison and $250,000 fine; Ten-year mandatory minimum sentence

    AGENCY

    San Diego Police Department

    National City Police Department

    Federal Bureau of Investigation, San Diego

    San Diego Human Trafficking Task Force

    MIL Security OSI –

  • MIL-OSI Security: Former U.S. Border Patrol Agent Pleads Guilty to Attempting to Distribute Methamphetamine and Receiving Bribes

    Source: US FBI

    SAN DIEGO – Former U.S. Border Patrol Agent Hector Hernandez pleaded guilty in federal court today, admitting that he used his official position to smuggle unauthorized immigrants and illegal drugs across the border in exchange for money.

    According to his plea agreement, Hernandez admitted to using his official position to open border fences and allowing undocumented immigrants and controlled substances to enter the United States from Mexico. Hernandez also admitted to moving the drugs from the Southern District of California to other locations within the United States.

    “Agent Hernandez betrayed his badge and his country,” said U.S. Attorney Tara McGrath. “Instead of providing protection from smugglers and drug traffickers, he joined them.”

    “Border Patrol Agent Hernandez broke the public’s trust and abandoned his oath,” said DEA Special Agent in Charge Shelly Howe. “Law enforcement officers are required to uphold the law, not break it.”

    “It’s always disheartening when individuals misuse their positions of trust within our government for nefarious activities,” said FBI San Diego Special Agent in Charge Stacey Moy. “Let this be a clear message, that we are absolutely resolved with our partners to rigorously investigate and pursue justice in all cases—even when they involve one of our own.”

    “Department of Homeland Security Office of the Inspector General is grateful for the continued collaboration with our law enforcement partners as we root out corruption and crime along the Southwest Border. Today’s plea agreement sends a clear message that federal employees will be held accountable for their actions,” said the DHS Inspector General, Dr. Joseph V. Cuffari.

    Hernandez admitted to taking Mexico-based smugglers on a tour of the US/Mexico border, identifying the best locations to sneak unauthorized immigrants into the United States, and sharing the locations of monitoring devices and cameras near the border to help them evade detection. Hernandez also admitted to opening restricted border fences on at least five occasions and allowing immigrants to enter the United States for cash payments of $5,000 each time.

    On May 9, 2023, Hernandez met with someone he believed to be a drug trafficker but who was, in fact, an undercover federal agent. During this meeting, Hernandez agreed to pick up a bag full of narcotics that would be hidden near the border fence and bring it to the undercover agent in exchange for $20,000. Undercover agents loaded the bag with 10 kilograms of fake methamphetamine, one pound of real methamphetamine, and a tracking device, before placing the bag in a storm drain near the border fence.

    Later that evening and while on duty, Hernandez drove his official vehicle to the storm drain and retrieved the bag. He drove the bag to his residence in Chula Vista and left it there for the remainder of his work shift. On May 10, 2023, after his shift was over, Hernandez returned home, retrieved the bag, and drove to meet with the undercover agent. He was arrested at that meeting. Upon arrest, investigators confirmed the bag still contained both the fake and real methamphetamine.

    After Hernandez was arrested, agents searched his residence and found close to $140,000 in cash and 9 grams of cocaine. By Hernandez’s own admission, at least $110,000 of the seized cash represented proceeds from narcotics trafficking and bribery.

    As part of his plea agreement, Hernandez forfeited his personal vehicle used to bring the drugs to the undercover agent; $110,000 of the seized cash; and his interest in the residence where the drugs were maintained.

    This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Lawrence A. Casper.

    Hernandez is scheduled to be sentenced on April 19, 2024 at 9 a.m. before U.S. District Judge Janis L. Sammartino.

    DEFENDANTS                                Case Number 23cr1114-JLS                              

    Hector Hernandez                              Age: 55                          Chula Vista, CA

    SUMMARY OF CHARGES

    Attempted Distribution of Methamphetamine – 21 U.S.C., Sections 841(a)(1) and 846

    Maximum penalty: Life imprisonment with a 10-year mandatory minimum

    Receiving Bribe by Public Official – 18 U.S.C., Section 201(b)(2)

    Maximum penalty: Fifteen years in prison

    INVESTIGATING AGENCIES

    Department of Homeland Security, Office of the Inspector General

    Drug Enforcement Administration

    Federal Bureau of Investigation

    IRS Criminal Investigation

    MIL Security OSI –

  • MIL-OSI Security: FBI San Diego Warns of Romance Scams

    Source: US FBI

    SAN DIEGO—Scammers are targeting victims using online dating sites. A whirlwind online romance can turn into fraud that causes victims to lose large amounts of money. Romance scams, a type of confidence fraud, begin when an individual believes they are in a romantic relationship and is tricked into sending money, personal information, financial information, or items of value to the perpetrator. They may also be deceived into laundering money or other valuable items to assist the perpetrator.

    In a romance scam, the scammers target and take advantage of people looking for companionship or romantic partners and con them out of their money. The criminals who carry out romance scams typically target victims via social media messaging and emails with the intention of establishing a relationship and building trust as quickly as possible.

    Confidence fraud/romance scams have resulted in one of the highest amounts of financial losses when compared to other Internet-facilitated crimes. The FBI’s Internet Crime Complaint Center (IC3) received more than 19,000 complaints about confidence fraud in 2022, with reported losses of nearly $740 million.

    FBI San Diego is monitoring a trend where romance scams turn into crypto investment fraud schemes. The scam starts similarly as an online relationship, but instead of asking for cash, the scammer convinces the victim to invest in cryptocurrency. To demonstrate the returns on investment, victims are directed to websites that appear authentic but are instead controlled by the scammer. Once the victim makes a purchase, they are unable to cash out their investments and the scammer disappears.

    If you develop a relationship with someone you meet online, FBI San Diego suggests the following tips to avoid becoming a victim of a romance scam:

    • If it doesn’t feel right, then it probably isn’t. Trust your instincts.
    • If you suspect an online relationship is a scam, stop all contact immediately.
    • Do not give any personal information or money to anyone you have only communicated with by telephone or online.
    • Be careful what you post online. Scammers can use details shared on social media platforms and dating sites to legitimize their story.
    • If you are planning to meet someone in person you have met online, proceed with caution, especially if you plan to travel to a foreign country. Review the State Department’s travel advisories before arranging travel. (travel.state.gov)

    Anyone who believes they’ve been a victim of fraud or knows someone who may be a victim should file a report on ic3.gov or call the FBI San Diego Field Office at (858) 320-1800. For more information on romance scams, visit www.fbi.gov/romancescams.

    MIL Security OSI –

  • MIL-OSI Security: Husband and Wife Plead Guilty to $5 Million Unemployment Fraud Scheme

    Source: US FBI

    NEWS RELEASE SUMMARY – February 15, 2024

    SAN DIEGO –Eduard Buse and Florentina Sima pleaded guilty in federal court today to fraud and money laundering charges, admitting they participated in a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic.

    Buse and Sima were indicted by a federal grand jury in October 2023 along with 12 others. The indictment alleged that the fraud scheme involved helping hundreds of undeserving applicants apply for benefits using fraudulent documents. In their respective plea agreements, Buse and Sima admitted the fraud resulted in almost $5.2 million in bogus claims paid by the state of California.

    “These covid relief funds were meant to provide critical financial relief during the pandemic. Instead, the money was used to buy luxury cars and jewelry,” said U.S. Attorney Tara McGrath. “We will not only continue to prosecute those who diverted money intended to serve as a lifeline, but we will pursue every avenue to recover and return that money to public use.”

    “The Covid-19 pandemic placed an enormous financial strain on millions of Americans; however, some individuals decided to use other people’s pain as an opportunity for financial gain,” said FBI San Diego Special Agent in Charge Stacey Moy. “Our pursuit of justice for those affected by fraud during the pandemic will not stop until each and every person who took advantage of individuals during this critical time is prosecuted for defrauding the U.S. government and innocent people.”

    “The defendants’ abuse of programs designed to help people in need during and in the wake of the Covid pandemic is particularly despicable,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Even worse, they took money intended to help people keep their heads above water and showered themselves with luxury items. IRS Criminal Investigation is committed to rooting out this sort of evil by following the money to bring people like these defendants to justice.”

    According to Buse’s plea agreement, he not only collected $28,350 in undue EDD benefits for himself but also facilitated payouts of $244,050 to 14 co-conspirators, including Sima. Buse then sent $128,902.99 and Sima sent $58,881.53 of fraud proceeds to their associates in Romania through money service businesses.

    Buse admitted that he purchased a 2020 BMW X6 for $105,044 in Glendale, California, with proceeds from the fraud and shipped it from San Diego to Romania on April 28, 2023.

    On November 13, 2023, Romanian authorities served search warrants on addresses affiliated with Buse at the request of the United States. They seized the BMW with California license plates along with approximately $9,476.50 in U.S. currency; a Rolex Yacht Master II and a rose gold luxury men’s watch purchased for $15,550 U.S. dollars; a Rolex Sky Dweller watch; a Breitling 1884 men’s watch; and a Rolex Oyster Perpetual Date women’s watch.

    As part of their plea agreements, Buse and Sima agreed to forfeit the BMW, cash and luxury watches, along with all other property seized in connection with the case.

    Buse also agreed to forfeit $128,902.99 and agreed to pay restitution in the amount of $244,050 to the State of California Employment Development Department. Sima agreed to forfeit $58,881.53 and pay the same amount in restitution to the State of California Employment Development Department.

    Buse and Sima are scheduled to be sentenced on May 20, 2024, at 9 a.m. before U.S. District Judge Larry A. Burns. This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu.

    DEFENDANTS                                             Case Number 23CR2090-LAB                                

    Eduard Buse                                                    Age: 30                                   Transient, Romanian

    Florentina Sima                                              Age: 29                                   Transient, Romanian

    SUMMARY OF CHARGES

    Title 18, U.S.C. § 1349 — Conspiracy to Commit Wire Fraud

    Title 18, U.S.C. § 1343 — Wire Fraud

    Maximum penalty: Thirty years in prison, $1 million fine

    Title 18 U.S.C. § 1956(a)(2)(B)(i) — Laundering of Monetary Instruments

    Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater

    AGENCY

    Federal Bureau of Investigation

    San Diego Police Department Economic Crimes Unit

    IRS Criminal Investigation

    California Employment Development Department Investigative Division

    U.S. Department of Labor Office of Inspector General

    U.S. Department of Homeland Security

    *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: San Francisco Tow Company Operator Charged with Insurance Fraud and Money Laundering

    Source: US FBI

    Jose Badillo and a Co-Defendant Are Accused of Submitting a Fraudulent Auto Insurance Claim and Pocketing the Proceeds

    SAN FRANCISCO – Jose Vicente Badillo and Jessica Elizabeth Najarro appeared in federal court today to face mail fraud, wire fraud, and money laundering charges related to a scheme to defraud an auto insurance company, announced United States Attorney Ismail J. Ramsey; FBI Special Agent in Charge Robert K. Tripp; and IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The case has been assigned to the Hon. Rita F. Lin, United States District Judge.

    According to an indictment returned by a federal grand jury on July 9, 2024, Badillo, 28, and Najarro, 30, both of San Francisco, conspired to defraud an insurance company by submitting a fraudulent insurance claim on a wrecked car that Badillo purchased in June 2019. The indictment alleges that, when Badillo bought the car, it was undrivable, with severe front-end damage and a non-functioning engine. Nevertheless, the indictment says, Najarro obtained an insurance policy on, and later took title to, the car before falsely reporting to the insurance company in July 2019 that she had been in a single-car accident in it in San Francisco. The indictment further alleges that Najarro spoke with, and made materially false statements and misrepresentations to, an insurance representative in another state, after which the insurance company processed and approved her claim and sent her an insurance reimbursement check for $34,037.48. The indictment alleges that the full amount of the insurance reimbursement check was deposited a few days later into a Wells Fargo Bank account controlled by Badillo.

    The indictment also alleges that, at the time of the offenses in 2019, Badillo owned and/or controlled at least two companies engaged in the business of towing vehicles: Jose’s Towing, LLC, and Auto Towing, LLC, both of which operated out of San Francisco.

    Both defendants are charged with one count each of (i) conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349; (ii) mail fraud, in violation of 18 U.S.C. §§ 1341 and 2; (iii) wire fraud, in violation of 18 U.S.C. §§ 1343 and 2; and (iv) money laundering, in violation of 18 U.S.C. §§ 1957 and 2.

    Badillo and Najarro were arrested in San Francisco on August 8, 2024, and released on a $50,000 bond at their initial appearances later that day. Both defendants are next scheduled to appear in court on August 12, 2024, at 10:30 a.m., before the Hon. Lisa J. Cisneros for arraignment and identification of counsel.

    An indictment merely alleges that crimes have been committed, and both defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Badillo and Najarro each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 1 through 3, which charge mail fraud, wire fraud, and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1341, 1343, 1349, and 2. They face a maximum sentence of 10 years in prison, and a fine of $250,000 or twice the amount of criminally derived property involved in the transaction, whichever is greater, plus restitution, if appropriate, on Count 4, which charges money laundering, in violation of 18 U.S.C. §§ 1957 and 2. The court also may order an additional term of supervised release to begin after any prison term as part of the sentence for either or both defendants. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    Assistant U.S. Attorneys Kyle F. Waldinger and Galen A. Phillips are prosecuting the case with the assistance of Amala James and Carolyn Jusay Caparas. The prosecution is the result of a lengthy investigation by the FBI and IRS CI.
     

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  • MIL-OSI Security: San Jose Man Sentenced to Nearly Three Years for Defrauding Investors of $4.7 Million

    Source: US FBI

    Joon Woo Kim Started An Investment Fund Focused On Publicly Traded Electric Vehicle Companies But Secretly Diverted Investors’ Funds To His Failing Private Business And Lost Millions

    SAN FRANCISCO – Joon Woo Kim was sentenced today to 33-months in prison for two fraud schemes – the first, a scheme to mislead investors to contribute millions to an electric vehicle investment fund he formed in San Francisco, and the second, a scheme to obtain multi-million dollar business loans by lying to a bank – announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp.  The sentence was handed down by United States District Judge James Donato.

    On March 4, 2024, Kim, 58, of San Jose, Calif., pleaded guilty to two fraud charges against him, one count of committing wire fraud and the other for making false statements to a bank to obtain a loan.  The first fraud scheme occurred from June 2015 through March 2022 and involved creating and running an investment fund that Kim named the M5 Doctors Fund.  Kim admitted in his plea agreement that he ran the M5 Doctors Fund, along with a separate management entity M5 Management, with the intent to deceive investors.  Kim represented to investors that he would invest the funds of the M5 Doctors Fund in securities of electric vehicle companies, including Tesla, and would always invest only in publicly traded securities.  Instead, Kim transferred nearly all the millions invested by investors in the M5 Doctors Fund into a failing private company called CKR Enterprise, Inc. (CKR).  CKR was a wholesale food distribution company operated by Kim and his wife and owned by them, among others.

    Kim defrauded investors out of $4,690,000 due to his transfer of the M5 Doctors Fund assets to CKR.  While this was occurring, Kim continued to mislead investors by sending quarterly reports to them suggesting their money was invested in public securities such as Tesla.

    Kim engaged in a second fraud scheme in which he defrauded Hanmi Bank by applying for two loans for CKR, a $1,300,000 line of credit and a $3,200,000 business loan.  Kim admitted the bank loan application contained materially false and fraudulent representations.  Based on those representations, Kim obtained the proceeds of these loans.

    In a memorandum filed for the sentencing hearing, the government argued that Kim gained the trust of his investors due to his impressive profile, which included multiple Ivy League degrees and extensive investment experience.  Many M5 Doctors Fund investors were non-profit institutions that could invest only in public securities and would not have invested with Kim if they knew the truth, that is, that Kim transferred their money to a private company owned by Kim and his wife.  The government pointed out that while Kim drained this fund, he continued to deceive his investors into believing the fund still had money that it no longer had.

    A federal grand jury charged Kim on June 27, 2023, with multiple counts of wire fraud, bank fraud, and making a false statement to a bank.  In his plea agreement, Kim pleaded guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of making a false statement to a bank, in violation of 18 U.S.C. § 1014.

    In addition to the 33-month term of imprisonment, U.S. District Judge James Donato sentenced the defendant to a three-year period of supervision following his release from prison and ordered Kim to pay more than $4.7 million in restitution to his victims.  Kim was ordered as one condition of his supervised release to make at least three 30-minute presentations to university MBA classes to inform students about the consequences of engaging in fraudulent business practices and behaviors.

    Kim was ordered to surrender into custody on September 3, 2024.

    Chris Highsmith is the Assistant U.S. Attorney prosecuting the case, with the assistance of Tina Rosenbaum and Aarian Beti and Victim Specialist Alicia Guevara.  The prosecution is the result of an investigation by the FBI.
     

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  • MIL-OSI Security: San Francisco Tow Company Operator Charged in Second Insurance Fraud Case

    Source: US FBI

    Jose Badillo and His Co-Defendants Are Accused of Submitting Fraudulent Auto Insurance Claims Regarding Multiple Vehicles

    SAN FRANCISCO – Jose Vicente Badillo, Kirill Afanasyev, Jason Naraja, and Jaime Respicio have been charged in an indictment with various crimes related to two schemes to defraud auto insurance companies, announced United States Attorney Ismail J. Ramsey; FBI Special Agent in Charge Robert K. Tripp; and IRS Criminal Investigation (IRS-CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The case has been assigned to the Hon. James Donato, United States District Judge.

    According to an indictment returned by a federal grand jury on August 20, 2024, Afanasyev, 36, Badillo, 28, both of San Francisco, and Respicio, 38, of Pleasant Hill, California, conspired to defraud an auto insurance company by submitting a fraudulent insurance claim on a wrecked car that Afanasyev purchased in May 2019. The Indictment alleges that, when Afanasyev bought the car, it was undrivable, with significant front-end damage. Nevertheless, the Indictment says, Respicio obtained an insurance policy on, and later took title to, the car before Afanasyev, posing as Respicio, falsely reported to the insurance company in August 2019 that Respicio had been in a single-car accident in it in San Francisco. The Indictment further alleges that Afanasyev made materially false statements and misrepresentations to the insurance company, after which the insurance company processed and approved the claim and sent Respicio an insurance reimbursement check for $47,856.34. The Indictment alleges that Badillo participated in this scheme to defraud by agreeing to falsely document that his towing company had towed the wrecked car from the purported accident location.

    The Indictment alleges that Afanasyev, Badillo, and Naraja, 37, of Hayward, California, engaged in a second conspiracy and scheme to defraud another insurance company by submitting a fraudulent insurance claim regarding an accident involving multiple vehicles that had been staged by Badillo in San Mateo County. Specifically, the Indictment alleges that Badillo and Afanasyev planned the staged accident in which Badillo loaded a vehicle carrier with four vehicles (several of which were inoperable or had pre-existing damage) and purposefully drove them off the road on Guadalupe Canyon Parkway in San Mateo County in August 2019. The Indictment alleges that, after Badillo reported this “accident” to his insurance company, Badillo, Afanasyev, Naraja, and another individual all made false or misleading statements to an insurance company representative. The Indictment alleges that the insurance company ultimately denied Badillo’s claim as fraudulent but nevertheless paid one of Badillo’s towing companies $5,210 for its recovery, towing, and storage of vehicles involved in the staged accident.

    The Indictment also alleges that, at the time of the offenses in 2019, Badillo owned and/or controlled at least two companies engaged in the business of towing vehicles: Jose’s Towing, LLC, and Auto Towing, LLC, both of which operated out of San Francisco.

    In the first conspiracy and scheme to defraud, Afanasyev, Badillo, and Respicio are charged with one count each of (i) conspiracy to commit mail fraud and wire fraud, in violation of 18 U.S.C. § 1349; (ii) mail fraud, in violation of 18 U.S.C. §§ 1341 and 2; and (iii) wire fraud, in violation of 18 U.S.C. §§ 1343 and 2. Afanasyev and Respicio are also charged with one count of money laundering, in violation of 18 U.S.C. §§ 1957 and 2.

    In the second conspiracy and scheme to defraud, Afanasyev, Badillo, and Naraja are charged with (i) one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and (ii) four counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2.

    Naraja and Respicio were arrested in Hayward and Pleasant Hill, respectively, on August 27, 2024, and released on $50,000 bonds at their initial appearances on August 28, 2024. Naraja is next scheduled to appear in court on August 29, 2024, at 10:30 a.m., before the Hon. Lisa J. Cisneros for arraignment and identification of counsel. Respicio is next scheduled to appear in court on September 5, 2024, at 10:30 a.m., before the Hon. Alex G. Tse for arraignment and identification of counsel. Badillo was previously arrested and made his initial appearance in another insurance fraud case on August 8, 2024. He is scheduled to appear before the Hon. Lisa J. Cisneros for arraignment and identification of counsel in both cases on August 30, 2024, at 10:30 a.m. Afanasyev’s initial appearance and arraignment has been scheduled for September 9, 2024, at 10:30 a.m. before the Hon. Alex G. Tse.

    An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Afanasyev, Badillo, and Respicio each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 1 through 3, which charge mail fraud, wire fraud, and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1341, 1343, 1349, and 2. Afanasyev and Respicio face a maximum sentence of 10 years in prison, and a fine of $250,000 or twice the amount of criminally derived property involved in the transaction, whichever is greater, plus restitution, if appropriate, on Count 4, which charges money laundering, in violation of 18 U.S.C. §§ 1957 and 2. Similarly, Afanasyev, Badillo, and Naraja each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 5 through 9, which charge wire fraud and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1343, 1349, and 2. The court also may order an additional term of supervised release to begin after any prison term as part of the sentence for any or all of the defendants. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    Assistant U.S. Attorneys Kyle F. Waldinger and Galen A. Phillips are prosecuting the case with the assistance of Amala James and Carolyn Jusay Caparas. The prosecution is the result of a lengthy investigation by the FBI and IRS-CI. The U.S. Attorney’s Office, the FBI, and IRS-CI appreciate the assistance and support of the San Francisco Police Department in this insurance fraud investigation.
     

    MIL Security OSI –

  • MIL-OSI Security: San Francisco Resident Sentenced to One Year in Prison for Stealing More Than $340,000 in Funds Intended for Low-Income Families

    Source: US FBI

    SAN FRANCISCO – Gregory Finkelson was sentenced to one year in prison for theft of government property in connection with his fraudulent receipt of hundreds of thousands of dollars in low-income housing benefits, announced United States Attorney Ismail J. Ramsey; Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp; U.S. Department of Housing and Urban Development (HUD) Office of the Inspector General (OIG) Special Agent in Charge Mark Kaminsky; and IRS Criminal Investigation (IRS-CI) Special Agent in Charge Michael Mosley of the Oakland Field Office. Finkelson’s sentence was imposed by the Honorable James Donato, United States District Judge, on September 9, 2023.

    The Section 8 Certificate Program is a rent subsidy program funded by HUD and administered in San Francisco by the San Francisco Housing Authority (SFHA). The program is intended to help low- and moderate-income families afford housing, and it has income limits and other eligibility requirements that applicants must meet to qualify for assistance.

    In his plea agreement, Finkelson, 64, admitted that, between approximately August 2006 and February 2020, he wrongfully claimed $341,455 in Section 8 Program subsidies by falsely reporting that he did not own his San Francisco residence, which he bought using a straw purchaser, and that he was merely an employee of a company that he in fact owned and operated out of his residence. Specifically, Finkelson admitted that he used the name of a Russian national living in Russia to purchase his San Francisco home, claiming, wrongfully, that she was his landlord and that he made rent payments to her. Finkelson also admitted he opened several bank accounts, including in the Russian national’s name, and that he used these bank accounts to conceal his use of the ill-gotten Section 8 Program subsidies. He then used the funds he fraudulently obtained to benefit himself, including by funding his business, paying his credit card bills, and making payments on a timeshare in Hawaii. His residence is now worth $2.4 million.

    In a memorandum filed for the sentencing, the government noted that Finkelson continued his fraudulent conduct even after SFHA acted to terminate his Section 8 subsidies. Because of his conduct, the government argued, Finkelson deprived low-income families actually in need of housing over the entire period of his scheme. According to the government, Finkelson’s actions damaged public trust in the government’s role as a fiduciary for taxpayer dollars.

    Finkelson was indicted by a federal grand jury on July 25, 2023. He pleaded guilty on May 7, 2024, to theft of government property and aiding and abetting, in violation of 18 U.S.C. §§ 641 and 2.

    In addition to the one-year term of imprisonment, Judge Donato further sentenced Finkelson to a three-year period of supervision following his release from prison and ordered Finkelson to pay $341,455 in restitution, which represents the total amount he admitted he stole from the government. Finkelson was ordered to surrender into custody on September 16, 2024.

    Assistant United States Attorneys Christiaan Highsmith and Kevin Yeh are prosecuting the case with the assistance of Claudia Hyslop. The prosecution is the result of a joint investigation by the FBI, HUD OIG, and IRS-CI, with assistance from SFHA.
     

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