NewzIntel.com

Category: Law

  • MIL-OSI Security: Operation Restore Justice Initiative Results in Indictment Charging Man with Attempting to Cause Minor to Engage in Criminal Sexual Activity

    Source: US FBI

    ALEXANDRIA, La. – Acting United States Attorney Alexander C. Van Hook announced that as a result of Operation Restore Justice, a nationwide initiative to identify, track, and arrest child predators which was announced last week, a Rapides Parish man has been indicted. The federal grand jury in Shreveport has returned an indictment charging Keith William Noce, 45, with use of a facility to attempt to cause a minor to engage in criminal sexual activity.

    The indictment alleges that between April 29, 2025, and May 1, 2025, in the Western District of Louisiana, Noce used a facility and means of interstate commerce to knowingly attempt to persuade, induce, entice, and coerce a minor under the age of 18 years old to engage in sexual activity. 

    Noce, along with two other subjects in Louisiana, were charged last week following a joint, undercover operation by the FBI, Alexandria Police Department and Louisiana State Police. A fourth subject was indicted in the Eastern District of Louisiana on child pornography charges. 

    If convicted, Noce faces a sentence of up to 10 years to life in prison, and a fine of up to $250,000.  

    The case was investigated by the FBI, Alexandria Police Department, and Louisiana State Police and is being prosecuted by Assistant United States Attorney Earl M. Campbell.

    To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material (CSAM) – referred to in legal terms as “child pornography” – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. 

    An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

    # # #

    MIL Security OSI –

  • MIL-OSI Australia: Nine-year-old bitten and dingo injured on K’gari

    Source: Tasmania Police

    Issued: 23 May 2025

    A nine-year-old boy has been injured after a dingo attack at Yidney Rocks at K’gari/Fraser Island.

    The dingo was injured by passers-by who ran to the boy’s aid.

    The boy has been transported to hospital for treatment.

    Rangers are now searching for the dingo and will increase patrols in the area.

    Visitors to K’gari/Fraser Island are reminded to keep a stick with them, and watch children at all times.

    Report any concerning dingo encounters by calling 07 4127 9150 or emailing dingo.ranger@des.qld.gov.au

    Visitors to K’gari are reminded to Be dingo-safe! at all times:

    • Always stay close (within arm’s reach) to children and young teenagers
    • Always walk in groups and carry a stick
    • Never feed dingoes
    • Camp in fenced areas where possible
    • Do not run. Running or jogging can trigger a negative dingo interaction
    • Lock up food stores and iceboxes (even on a boat)
    • Never store food or food containers in tents, and
    • Secure all rubbish, fish and bait.

    For more information go to K’gari dingoes.

    MIL OSI News –

  • MIL-OSI: Imperial Petroleum Inc. Reports First Quarter 2025 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    ATHENS, Greece, May 23, 2025 (GLOBE NEWSWIRE) — IMPERIAL PETROLEUM INC. (NASDAQ: IMPP; the “Company”), a ship-owning company providing petroleum products, crude oil and dry bulk seaborne transportation services, announced today its unaudited financial and operating results for the first quarter ended March 31, 2025.

    OPERATIONAL AND FINANCIAL HIGHLIGHTS

    • Fleet operational utilization of 83.8% in Q1 25’ versus 86% in Q4 24’ and 80.6% in Q1 24’.
    • About 47% of fleet calendar days were dedicated to time charter activity while 53% to spot activity.
    • Delivery of the dry bulk carrier, Supra Pasha (2012 built) on April 26th 2025; the remaining six contracted dry bulk carriers will be delivered by June 2025.
    • Revenues of $32.1 million in Q1 25’ compared to $41.2 million in Q1 24’- a 22.1% decline as market rates were stronger during Q1 24’.
    • Net income of $11.3 million in Q1 25’ versus $16.7 million in Q1 24’, corresponding to an EPS, basic of $0.32.
    • EBITDA1 of $14.7 million for Q1 25’.
    • Revenues and net income increased by $5.9 million (or 22.5%) and $7.4 million (or 189.7%), respectively, in Q1 25’ compared to Q4 24’.
    • Cash and cash equivalents including time deposits of $227.4 million as of March 31, 2025 which is 167.5% higher than our current market capitalization of about $85 million.
    • Recurring profitability and debt free capital structure facilitate robust cash flow generation.

    First Quarter 2025 Results:

    • Revenues for the three months ended March 31, 2025 amounted to $32.1 million, a decrease of $9.1 million, or 22.1%, compared to revenues of $41.2 million for the three months ended March 31, 2024, primarily due to a decrease in the spot market tanker rates. During the three months ended March 31, 2024 average spot rates for product and suezmax tankers were 26.9% and 24.2% higher than average spot rates during the three months ended March 31, 2025.
    • Voyage expenses and vessels’ operating expenses for the three months ended March 31, 2025 were $10.5 million and $7.1 million, respectively, compared to $13.5 million and $6.0 million, respectively, for the three months ended March 31, 2024. The $3.0 million decrease in voyage expenses is mainly attributed to increased time charter activity leading to a decline in spot days by 16.1%. The decline in spot days along with the decrease in the Suez Canal transits compared to the same period of last year, led to decreased bunker consumption by 21.2% and lower port expenses by 30.8%. The $1.1 million increase in vessels’ operating expenses is primarily due to the increased size of our fleet by an average of 2.1 vessels between the two periods.
    • Drydocking costs for the three months ended March 31, 2025 and 2024 were nil and $0.6 million, respectively. This decrease is due to the fact that during the three months ended March 31, 2025, no vessel underwent drydocking whereas during the three months ended March 31, 2024 our aframax tanker commenced its drydocking which was concluded within April 2024.
    • General and administrative costs for both the three months ended March 31, 2025 and 2024 were $1.2 million.
    • Depreciation for the three months ended March 31, 2025 and 2024 was $5.0 million and $4.0 million, respectively. The change is attributable to the increase in the average number of vessels in our fleet.
    • Management fees for the three months ended March 31, 2025 and 2024 were $0.5 million and $0.4 million, respectively. The change is attributable to the increase in the average number of vessels in our fleet.
    • Interest and finance costs for the three months ended March 31, 2025 and 2024 were $0.6 million and $0.002 million, respectively. The $0.6 million of costs for the three months ended March 31, 2025 relate mainly to accrued interest expense – related party in connection with the $14.0 million and $24.0 million part of the acquisition prices of our bulk carriers, Neptulus and Clean Imperial, respectively. These balances were completely settled in April 2025. For accounting purposes, the outstanding balances payable on the two vessels were required to be allocated between principal and imputed interest, despite the fact that no interest was contractually charged by the sellers. The total amounts ultimately paid remained consistent with the originally agreed purchase prices.
    • Interest income for the three months ended March 31, 2025 was $2.2 million as compared to $1.0 million for the three months ended March 31, 2024. The $1.2 million increase is mainly attributed to a higher amount of funds placed under time deposits.
    • Interest income – related party for the three months ended March 31, 2025 was nil as compared to $0.8 million for the three months ended March 31, 2024. The decrease is mainly attributed to the $0.8 million of accrued interest income – related party for the three months ended March 31, 2024 in connection with the $38.7 million of the sale price of the Aframax tanker Afrapearl II (ex. Stealth Berana). The balance was collected in July 2024, thus the balance for the three months ended March 31, 2025 was nil.
    • Foreign exchange (loss)/gain for the three months ended March 31, 2025 was a gain of $1.7 million as compared to a loss of $0.8 million for the three months ended March 31, 2024. The $1.7 million foreign exchange gain for the three months ended March 31, 2025, is mainly attributed the strengthening of the euro currency against the dollar at the end of the three months ended March 31, 2025 when compared to the respective currency values at the end of year 2024.
    • As a result of the above, for the three months ended March 31, 2025, the Company reported net income of $11.3 million, compared to net income of $16.7 million for the three months ended March 31, 2024. Dividends paid on Series A Preferred Shares amounted to $0.4 million for the three months ended March 31, 2025. The weighted average number of shares of common stock outstanding, basic, for the three months ended March 31, 2025 was 32.9 million. Earnings per share, basic and diluted, for the three months ended March 31, 2025 amounted to $0.32 and $0.30, respectively, compared to earnings per share, basic and diluted, of $0.56 and $0.50, respectively, for the three months ended March 31, 2024.
    • Adjusted net income1 was $12.2 million corresponding to an Adjusted EPS1, basic of $0.34 for the three months ended March 31, 2025 compared to an Adjusted net income of $17.5 million corresponding to an Adjusted EPS, basic, of $0.59 for the same period of last year.
    • EBITDA1 for the three months ended March 31, 2025 amounted to $14.7 million, while Adjusted EBITDA1 for the three months ended March 31, 2025 amounted to $15.6 million.
    • An average of 11.90 vessels were owned by the Company during the three months ended March 31, 2025 compared to 9.84 vessels for the same period of 2024.

    1 EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.

    Fleet Employment Table

    As of May 23, 2025, the profile and deployment of our fleet is the following:

                           
    Name Year
    Built    		    Country
    Built    		    Vessel Size
    (dwt)    		    Vessel
    Type    		    Employment
    Status    		    Expiration of
    Charter(1)
    Tankers                           
    Magic Wand 2008    Korea    47,000    MR product tanker    Time Charter   October 2025
    Clean Thrasher 2008    Korea    47,000    MR product tanker    Time Charter    May 2025
    Clean Sanctuary (ex. Falcon Maryam) 2009    Korea    46,000    MR product tanker    Spot     
    Clean Nirvana 2008    Korea    50,000    MR product tanker    Spot     
    Clean Justice 2011    Japan    46,000    MR product tanker    Time Charter    September 2027
    Aquadisiac 2008   Korea   51,000   MR product tanker   Spot    
    Clean Imperial 2009   Korea   40,000   MR product tanker   Time Charter   January 2026
    Suez Enchanted 2007    Korea    160,000    Suezmax tanker    Spot     
    Suez Protopia 2008    Korea    160,000    Suezmax tanker    Spot     
    Drybulk Carriers(2)                           
    Eco Wildfire 2013    Japan    33,000    Handysize drybulk    Time Charter    May 2025
    Glorieuse 2012    Japan    38,000    Handysize drybulk    Time Charter    June 2025
    Neptulus 2012   Japan   33,000   Handysize drybulk   Time Charter   June 2025
    Supra Pasha 2012   Japan   56,000   Supramax drybulk   Spot    
    Fleet Total           807,000 dwt               
    (1)
    (2)    		 Earliest date charters could expire.
    We have contracted to acquire six Japanese built drybulk carriers, aggregating approximately 387,000 dwt, which are
    expected to be delivered to us by June 2025.
       

    CEO Harry Vafias Commented

    Another year commenced with a positive momentum for Imperial Petroleum. We are happy as we consider the $11.3 million of net income generated in Q1 25’ a very good result given the eventful but softish market. This is a busy period for our Company but at the same time exciting as we are taking on delivery of another six drybulk vessels. Within the short life of Imperial Petroleum, we are expanding our fleet from four vessels to nineteen by the second quarter of 2025; our goal of growing fast and transforming a small company to medium sized was achieved. We feel confident that the diversified quality non- Chinese fleet we have created will pay off. Imperial Petroleum enjoys fast growth, recurring profits, zero bank debt and liquidity as of March 31, 2025 in excess of $220 million and as per our view ticks all the boxes that define a successful operation.

    Conference Call details:

    On May 23, 2025 at 10:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

    Online Registration:

    Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.

    https://register-conf.media-server.com/register/BIaef045aa9f5b46a7b5e8eb48c2e56115

    Slides and audio webcast:

    There will also be a live and then archived webcast of the conference call, through the IMPERIAL PETROLEUM INC. website (www.ImperialPetro.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

    About IMPERIAL PETROLEUM INC.        

    IMPERIAL PETROLEUM INC. is a ship-owning company providing petroleum products, crude oil and drybulk seaborne transportation services. The Company owns a total of thirteen vessels on the water – seven M.R. product tankers, two suezmax tankers and four handysize drybulk carriers – with a total capacity of 807,000 deadweight tons (dwt), and has contracted to acquire an additional six drybulk carriers of 387,000 dwt aggregate capacity. Following these deliveries, the Company’s fleet will count a total of 19 vessels with an aggregate capacity of 1.2 million dwt. IMPERIAL PETROLEUM INC.’s shares of common stock and 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock are listed on the Nasdaq Capital Market and trade under the symbols “IMPP” and “IMPPP,” respectively.

    Forward-Looking Statements

    Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although IMPERIAL PETROLEUM INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, IMPERIAL PETROLEUM INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, geopolitical conditions, including any trade disruptions resulting from tariffs and other protectionist measures imposed by the United States or  other countries, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, changes in IMPERIAL PETROLEUM INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, the conflicts in the Middle East, potential disruption of shipping routes due to ongoing attacks by Houthis in the Red Sea and Gulf of Aden or accidents and political events or acts by terrorists.

    Risks and uncertainties are further described in reports filed by IMPERIAL PETROLEUM INC. with the U.S. Securities and Exchange Commission.

    Fleet List and Fleet Deployment        
    For information on our fleet and further information:
    Visit our website at www.ImperialPetro.com

    Company Contact:
    Fenia Sakellaris
    IMPERIAL PETROLEUM INC.
    E-mail: info@ImperialPetro.com

    Fleet Data:
    The following key indicators highlight the Company’s operating performance during the three month periods ended March 31, 2024 and 2025.

    FLEET DATA Q1 2024 Q1 2025
    Average number of vessels (1) 9.84 11.90
    Period end number of owned vessels in fleet 11 12
    Total calendar days for fleet (2) 895 1,071
    Total voyage days for fleet (3) 878 1,067
    Fleet utilization (4) 98.1% 99.6%
    Total charter days for fleet (5) 207 504
    Total spot market days for fleet (6) 671 563
    Fleet operational utilization (7) 80.6% 83.8%
         

    1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.
    2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.
    3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.
    4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.
    5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.
    6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.
    7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days excluding idle days by fleet calendar days for the relevant period.

    Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

    Adjusted net income represents net income before share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation and share based compensation.
    Adjusted EPS represents Adjusted net income attributable to common shareholders divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

    EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

    (Expressed in United States Dollars,
    except number of shares)    		 Third Quarter Ended March 31st,
      2024   2025
    Net Income – Adjusted Net Income      
    Net income 16,654,604   11,290,986
    Plus share based compensation 858,810   889,076
    Adjusted Net Income 17,513,414   12,180,062
           
    Net income – EBITDA      
    Net income 16,654,604   11,290,986
    Plus interest and finance costs 2,430   606,383
    Less interest income (1,785,878)   (2,184,394)
    Plus depreciation 4,027,061   5,002,837
    EBITDA 18,898,217   14,715,812
           
    Net income – Adjusted EBITDA      
    Net income 16,654,604   11,290,986
    Plus share based compensation 858,810   889,076
    Plus interest and finance costs 2,430   606,383
    Less interest income (1,785,878)   (2,184,394)
    Plus depreciation 4,027,061   5,002,837
    Adjusted EBITDA 19,757,027   15,604,888
           
    EPS      
    Numerator      
    Net income 16,654,604   11,290,986
    Less: Cumulative dividends on preferred shares (435,246)   (435,246)
    Less: Undistributed earnings allocated to non-vested shares (856,950)   (453,265)
    Net income attributable to common shareholders, basic 15,362,408   10,402,475
    Denominator      
    Weighted average number of shares 27,613,661   32,944,925
    EPS – Basic 0.56   0.32
           
    Adjusted EPS      
    Numerator      
    Adjusted net income 17,513,414   12,180,062
    Less: Cumulative dividends on preferred shares (435,246)   (435,246)
    Less: Undistributed earnings allocated to non-vested shares (902,326)   (490,387)
    Adjusted net income attributable to common shareholders, basic 16,175,842   11,254,429
           
    Denominator      
    Weighted average number of shares 27,613,661   32,944,925
    Adjusted EPS, Basic 0.59   0.34
           

    Imperial Petroleum Inc.
    Unaudited Consolidated Statements of Income
    (Expressed in United States Dollars, except for number of shares)

        Quarters Ended March 31,
        2024   2025
             
    Revenues      
      Revenues 41,203,281   32,091,626
             
    Expenses      
      Voyage expenses 12,963,607   10,054,114
      Voyage expenses – related party 514,414   401,753
      Vessels’ operating expenses 5,951,561   7,021,928
      Vessels’ operating expenses – related party 82,000   98,500
      Drydocking costs 625,457   —
      Management fees – related party 393,800   471,240
      General and administrative expenses 1,207,168   1,217,977
      Depreciation 4,027,061   5,002,837
    Total expenses 25,765,068   24,268,349
             
    Income from operations 15,438,213   7,823,277
             
    Other (expenses)/income      
      Interest and finance costs (2,430)   (3,607)
      Interest expense – related party —   (602,776)
      Interest income 1,035,261   2,184,394
      Interest income – related party 750,617   —
      Dividend income from related party 189,583   187,500
      Foreign exchange (loss)/gain (756,640)   1,702,198
    Other income, net 1,216,391   3,467,709
             
    Net Income 16,654,604   11,290,986
             
    Earnings per share      
    – Basic 0.56   0.32
    – Diluted 0.50   0.30
             
    Weighted average number of shares      
    -Basic 27,613,661   32,944,925
    -Diluted 30,951,012   34,258,803
             

    Imperial Petroleum Inc.
    Unaudited Consolidated Balance Sheets
    (Expressed in United States Dollars)

        December 31,   March 31,
        2024   2025
             
    Assets      
    Current assets      
      Cash and cash equivalents 67,783,531   126,520,450
      Time deposits 138,948,481   100,900,500
      Trade and other receivables 13,456,083   8,772,549
      Other current assets 652,769   67,374
      Inventories 7,306,356   6,705,115
      Advances and prepayments 250,562   209,858
    Total current assets 228,397,782   243,175,846
             
    Non current assets      
      Operating lease right-of-use asset 78,761   60,239
      Vessels, net 208,230,018   227,015,031
      Investment in related party 12,798,500   12,794,333
    Total non current assets 221,107,279   239,869,603
    Total assets 449,505,061   483,045,449
             
    Liabilities and Stockholders’ Equity      
    Current liabilities      
      Trade accounts payable 5,243,872   5,923,098
      Payable to related parties 18,725,514   39,232,604
      Accrued liabilities 3,370,020   3,604,467
      Operating lease liability, current portion 1,419,226   60,239
      Deferred income 78,761   1,812,557
    Total current liabilities 28,837,393   50,632,965
             
    Total liabilities 28,837,393   50,632,965
             
    Commitments and contingencies      
             
    Stockholders’ equity      
      Common stock 382,755   386,671
      Preferred Stock, Series A 7,959   7,959
      Preferred Stock, Series B 160   160
      Treasury stock (8,390,225)   (8,390,225)
      Additional paid-in capital 282,642,357   283,527,517
      Retained earnings 146,024,662   156,880,402
    Total stockholders’ equity 420,667,668   432,412,484
    Total liabilities and stockholders’ equity 449,505,061   483,045,449
           

    Imperial Petroleum Inc.
    Unaudited Consolidated Statements of Cash Flows
    (Expressed in United States Dollars

        Three Month Periods Ended March 31,
        2024   2025
         
    Cash flows from operating activities      
      Net income for the period 16,654,604   11,290,986
             
    Adjustments to reconcile net income to net cash      
      provided by operating activities:      
      Depreciation 4,027,061   5,002,837
      Non – cash lease expense 17,550   18,522
      Share based compensation 858,810   889,076
      Unrealized foreign exchange loss/(gain) on time deposits 799,150   (358,420)
      Dividend income from related party (189,583)   —
             
    Changes in operating assets and liabilities:      
      (Increase)/decrease in      
      Trade and other receivables (3,249,129)   4,683,534
      Other current assets (532,029)   585,395
      Inventories (574,256)   601,241
      Changes in operating lease liabilities (17,550)   (18,522)
      Advances and prepayments (45,536)   40,704
      Due from related parties (879,732)   4,167
      Increase/(decrease) in      
      Trade accounts payable (1,100,028)   679,226
      Due to related parties 2,839,227   (3,369,040)
      Accrued liabilities 903,784   234,447
      Deferred income (869,166)   393,331
    Net cash provided by operating activities 18,643,177   20,677,484
             
    Cash flows from investing activities      
      Dividends income received 191,667   —
      Acquisition and improvement of vessels (72,257,190)   (4,350)
      Increase in bank time deposits (31,695,420)   (57,958,390)
      Maturity of bank time deposits 31,368,080   96,364,791
    Net cash (used in)/provided by investing activities (72,392,863)   38,402,051
             
    Cash flows from financing activities      
      Stock issuance costs (2,504,498)   —
      Dividends paid on preferred shares (341,947)   (342,616)
    Net cash used in financing activities (2,846,445)   (342,616)
             
    Net (decrease)/increase in cash and cash equivalents (56,596,131)   58,736,919
    Cash and cash equivalents at beginning of period 91,927,512   67,783,531
    Cash and cash equivalents at end of period 35,331,381   126,520,450
    Cash breakdown       
      Cash and cash equivalents 35,331,381   126,520,450
    Total cash and cash equivalents shown in the statements of cash flows 35,331,381   126,520,450

    The MIL Network –

  • MIL-OSI Security: Chicago Man Sentenced for Conspiracy to Distribute Cocaine Resulting in the Death of a Young Dubuque Woman

    Source: US FBI

    A man who conspired with others to distribute large quantities of cocaine that resulted in the death of a young Dubuque, Iowa, woman was sentenced today to more than 24 years in federal prison.

    Maurice Levelle Randolph, age 45, from Chicago, Illinois, received the prison term after a December 5, 2024, guilty plea to one count of conspiracy to distribute 500 grams of more of cocaine within 1000 feet of several parks and schools in Dubuque between 2017 and April 2021, that resulted in the death of a young Dubuque woman on February 14, 2021.

    At the plea hearing, Randolph admitted he was a member of a conspiracy to distribute cocaine in the Dubuque area near numerous parks and schools.  He admitted he brought cocaine from Chicago and then worked with others to distribute the cocaine to customers in Dubuque.  On February 14, 2021, one of Randolph’s co-conspirators distributed cocaine to a young woman in Dubuque who went home, used the cocaine and died.  

    Randolph was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams.  Randolph was sentenced to 292 months’ imprisonment.  He was ordered to make $13,911 in restitution jointly with two other individuals to the victim’s family.  He must also serve an 8-year term of supervised release after the prison term.  The Court also forfeited $17,203 in drug proceeds seized from Randolph.  There is no parole in the federal system.

    Randolph is being held in the United States Marshal’s custody until he can be transported to a federal prison.

    The case was prosecuted by Assistant United States Attorneys Patrick J. Reinert and Nicole Nagin and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department

    of Justice through a cooperative effort of the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Iowa Medical Examiner’s Office and the Dubuque Drug Task Force, comprised of Dubuque Police Department, Dubuque Sheriff’s Office.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. 

    Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

    The case file number is 23-CR-01013.

    Follow us on X @USAO_NDIA.

    MIL Security OSI –

  • MIL-OSI Security: Waterloo Man Who Attempted to Murder Victim Sentenced to Federal Prison

    Source: US FBI

    A man who discharged multiple rounds of ammunition in downtown Waterloo during a murder attempt was sentenced on May 12, 2025, to more than thirteen years in federal prison.

    Laindrell Myquail Cooper, age 22, from Waterloo, Iowa, received the prison term after an October 21, 2024 guilty plea to possession of ammunition by a felon.

    Information from sentencing showed that Cooper was a member of a gang in Waterloo.  On the morning of November 18, 2022, an associate of Cooper’s got into an argument with the victim at a barbershop in downtown Waterloo.  Cooper’s associate called someone to bring Cooper downtown.  Cooper was dressed in all black clothing, including a mask.  Cooper was dropped off a few blocks from the barbershop.  After briefly entering and exiting the barbershop, he located the victim across the street.  Cooper walked into the middle of the street, around a city bus, and then fired at least six rounds of ammunition at the victim, pursuing him as he sought shelter in the entryway of a storefront.  Cooper’s actions caused another man to discharge his firearm as three of his family members were in a car in or near the line of fire.  No one was injured.  Two storefronts and two cars were damaged by gunfire.  Additional evidence established that Cooper previously possessed a firearm that ballistics testing showed was discharged in a shots-fired incident that occurred in Waterloo on July 5, 2021.    

    Cooper was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams.  In pronouncing the sentence, Chief Judge Williams stated that Cooper represented “a clear and present danger to the public.”  Cooper was sentenced to 160 months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

    This case is 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 Department 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.

    Cooper is being held in the United States Marshal’s custody until he can be transported to a federal prison.

    The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.    

    Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

    The case file number is 23-CR-2034.

    Follow us on X @USAO_NDIA.

    MIL Security OSI –

  • MIL-OSI Security: Cedar Rapids Man Involved in Two Shootings Sentenced to a Decade in Federal Prison

    Source: US FBI

    A man who shot at a woman and child, and later pointed a gun at someone who shot back at him, was sentenced today to 10 years in federal prison.

    David Rafael Walker, age 38, from Cedar Rapids, Iowa, received the prison term after a December 11, 2024 jury verdict finding him guilty of one count of possession of a firearm by a felon.

    Evidence at trial and the sentencing hearing showed that on December 14, 2021, in Cedar Rapids, Walker shot at a woman and a child because he was mad that she went to lunch with another man.  Three days later, Walker was driving a car in Cedar Rapids and noticed that he was being followed by another car.  He stopped his car in the middle of the street, opened his car door, and pointed a gun at the other car.  A person in the other car shot at him.  This shooting was captured on doorbell cameras in the area.  Walker has felony convictions for attempting to elude, manufacturing or delivering heroin, and other drug offenses.  

    Walker was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams.  Walker was sentenced to 120 months’ imprisonment and must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.

    This case is 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 Department 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.

    Walker is being held in the United States Marshal’s custody until he can be transported to a federal prison.

    The case was prosecuted by Assistant United States Attorneys Devra Hake, Emily Nydle, and Dan Tvedt, and was investigated by the Cedar Rapids Safe Streets Task Force.  The task force is composed of representatives from the Federal Bureau of Investigation, the Cedar Rapids Police Department, and the Marion Police Department.  

    Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

    The case file number is 23-CR-65.

    Follow us on X @USAO_NDIA.

    MIL Security OSI –

  • MIL-OSI Security: Murray Man Sentenced for Distribution of Child Pornography

    Source: US FBI

    United States Attorney Lesley A. Woods announced that Michael Scott, 60, of Murray, Nebraska, was sentenced on May 8, 2025, in federal court in Lincoln, Nebraska, for Distribution of Child Pornography. United States District Judge Susan M. Bazis sentenced Scott to 300 months’ imprisonment. There is no parole in the federal system. After Scott’s release from prison, he will begin a 10-year term of supervised release. Scott was also ordered to pay $69,000 in restitution.

    The Nebraska State Patrol (NSP) received a cybertip from Discord reporting a user had uploaded two files depicting alleged child pornography. An Investigator with NSP was able to view the images and confirm they were child pornography.

    The Investigator confirmed the phone number from the cybertip belonged to Scott at his address in Murray. A search warrant was executed for the Discord account from the cybertip. A review of the contents found the distribution of additional child pornography. There were at least seven images of child pornography uploaded to the Discord account, at least one of which was included in the cybertip.

    During a search of Scott’s residence, Investigators recovered 14 electronic devices.  During a review of Scott’s cellphone, Investigators found a total of 19,807 photos of child pornography and 5,126 videos of child pornography. Among the other devices, Investigators found 200 additional photos of child pornography. Investigators also found a conversation on Discord where Scott sent at least one image of child pornography to another user on January 9, 2024. Investigators also located at least four files of child pornography that were uploaded to Discord on January 17, 2024.

    In a consensual interview at the residence, Scott confirmed the Discord account and username, phone number and email address all belonged to him. Scott admitted to using his cell phone for viewing and trading child pornography.

    This case was brought 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 United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

    This case was investigated by the Omaha FBI’s Child Exploitation and Human Trafficking Task Force and the Nebraska State Patrol.

    MIL Security OSI –

  • MIL-OSI Security: Director of Mobile Medical Diagnostics Company Agrees to Plead Guilty to Kickback Scheme

    Source: US FBI

    Scheme allegedly resulted in approximately $70.6 million in fraudulent bills to Medicare

    BOSTON – A New York-based director of operations and sales for the Northeast region of a mobile medical diagnostics company has been charged and has agreed to plead guilty to conspiring to provide kickbacks to doctors in exchange for ordering medically unnecessary brain scans.

    James Rausch, 57, of Port Jefferson Station, N.Y., has been charged with one count of conspiracy to violate the anti-kickback statute. A plea hearing has not yet been scheduled by the Court.  

    According to the charging documents, from approximately March 2015 through September 2020, Rausch conspired with others, including two managers for a mobile medical diagnostics company that performed transcranial doppler (TCD) scans, to enter into kickback agreements with various doctors. TCD scans are brain scans that measure blood flow in parts of the brain. It is alleged that Rausch and his co-conspirators agreed to offer and pay doctors kickbacks, some in cash and others by check, based on the number of TCD ultrasounds the doctors ordered. Rausch and his co-conspirators allegedly created purported rental and administrative service agreements that, on paper, made it appear as if the doctors’ practices were compensated for the TCD company’s use of space as well as for administrative costs associated with processing each order – based on fair market value, not based on the volume or value of referrals. It is alleged that these agreements were shams that hid the true nature of the payment arrangement for each test.  

    It is alleged that the scheme as a whole resulted in fraudulent bills of approximately $70.6 million to Medicare. Medicare paid approximately $27.2 million to the TCD company for the fraudulent claims.

    The charge of conspiracy to violate the Anti-Kickback Statute provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    United States Attorney Leah B. Foley; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Kimberly Milka, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation, Boston Field Office; Kelly M. Lawson, Acting Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office made the announcement. Assistant U.S. Attorneys Howard Locker and Mackenzie Queenin of the Health Care Fraud Unit are prosecuting the case.

    The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
     

    MIL Security OSI –

  • MIL-OSI Security: ATF Updates National Policy on Federal Firearm Licensee Inspections To Promote Fairness, Consistency, and Public Safety

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    The Bureau of Alcohol, Tobacco, Firearms and Explosives today issued an updated national policy for administrative actions related to compliance inspections of federal firearms licensees. The guidance promotes clear, consistent and fact-based decisions that uphold ATF’s commitment to public safety and respect for Second Amendment rights.

    The policy replaces the 2021 Enhanced Regulatory Enforcement policy, also known as the “zero-tolerance” policy. It directs industry operations investigators to consider all circumstances of an inspection rather than applying automatic outcomes, ensuring ATF uses its regulatory authority fairly and effectively.

    “This update is about getting it right and making sure we’re focused on public safety,” ATF Acting Director Daniel Driscoll said. “Under the previous policy, some licensees were being penalized for simple mistakes such as, forgetting to put their license number on forms. This new guidance gives our investigators the discretion to tell the difference between an honest mistake and a real threat to public safety. Law-abiding dealers deserve a system that treats them fairly, not like suspects. They are our partners and the first line of defense in our efforts to combat firearms trafficking.”

    The policy provides investigators and field leadership clearer guidelines for evaluating violations, weighing mitigating and aggravating factors, and determining the proper response—from education and warnings to administrative actions. Decisions must factor in whether licensees self-reported issues, implemented corrective actions, or present a continuing threat to public safety.

    These updates support the administration’s efforts to increase transparency and public confidence in government oversight, reaffirming ATF’s commitment to accountability and legitimate business practices.

    Key points of the updated policy

    • Context-driven enforcement: Serious, willful violations may lead to administrative action, while minor or clerical errors may be addressed with education or warnings.
    • No automatic revocation: Removes the prior policy’s presumption of license revocation, instead considering intent, compliance history and public-safety risks.
    • Stronger public-safety focus: Investigators must evaluate whether continued operations pose a public-safety threat or contribute to violent crime, and whether the licensee demonstrates the ability to comply moving forward.
    • Clear legal standards and timelines: Defines key terms such as “willful” and “knowing” and establishes uniform timelines for reviews, actions and coordination.
    • Support for lawful industry engagement: ATF continues early intervention and collaboration with responsible licensees, while firmly addressing repeat or serious violations.

    ATF conducts compliance inspections as part of its mission to ensure firearms are sold, transferred and documented in accordance with federal law. The revised policy ensures inspections are fair, consistent and focused on reducing violent crime while protecting the rights of responsible gun owners.

    Compliance inspections also support ATF’s broader efforts to combat firearms trafficking. By examining dealer records and business practices, industry operations investigators can identify suspicious patterns—such as straw purchases or missing inventory—that may indicate firearms are being diverted into illegal markets. These findings assist in criminal investigations and help reduce violent crime by preventing guns from falling into the wrong hands.

    ATF is the federal law enforcement agency responsible for regulating the firearm industry and enforcing laws related to firearms and violent crime. For more information, visit atf.gov or follow @ATFHQ on X.

    Contact: ATF Public Affairs Division, Liaison2@atf.gov

    MIL Security OSI –

  • MIL-OSI USA: Fish barrier removal project along US 2 begins May 27 near Snohomish

    Source: Washington State News 2

    WSDOT and Snohomish County will improve fish access along Sexton Creek south of Three Lakes Road

    SNOHOMISH – A new project that will remove barriers to fish along Sexton Creek, a tributary to the Pilchuck River, east of Snohomish shows how important collaboration can be in reconnecting streams and keeping state waterways healthy.

    The Washington State Department of Transportation and Snohomish County will begin a joint project Tuesday, May 27, to replace existing 5½-foot culverts along Sexton Creek with new structures that will allow fish to swim freely.

    Contractor crews working for WSDOT will install an improved, three-sided box structure beneath US 2, while the county project will replace culverts under Sexton Road with a 29-foot-wide, steel arch culvert and remove other barriers on Sexton Creek near where it empties into the Pilchuck River.

    WSDOT’s US 2/Sexton Creek to Pilchuck River Fish Passage and Snohomish County’s Sexton Road Culvert Replacement projects will restore access to the full reach of the tributary for Chinook, coho, pink and chum salmon and steelhead, sea-run cutthroat, bull and resident trout. WSDOT will oversee construction for both projects.

    What to expect

    Beginning Tuesday, May 27, crews will begin building a bypass road along US 2, creating a safe work zone to remove and replace the existing culvert while allowing traffic to flow. People traveling in the area also can expect:

    • Up to three Saturday night full closures of US 2 with detours.
    • Nighttime lane closures of US 2 with alternating traffic.
    • Traffic shifts on US 2, with one lane remaining open in each direction.
    • Daytime shoulder closures along US 2.
    • Sexton Road closed to through traffic for up to two months beginning in July.
    • Local access to homes along Sexton Road near the closure.

    Construction is expected to finish in fall 2025.

    Fish passage program

    WSDOT has worked for nearly three decades to improve fish passage and open natural habitat. A 2013 federal injunction also directed WSDOT to significantly speed up efforts to replace fish barriers. The US 2 culvert along Sexton Creek is subject to the federal injunction.

    Snohomish County has been improving fish passage for over 35 years, with an increased emphasis on barrier removal and improvements since 2015. The county works closely with Washington State Department of Fish and Wildlife and local tribes to identify and correct barriers related to county roads.

    New fish-friendly structures are larger, more resilient to change in the landscape and provide long-term fish passage. People can use the WSDOT interactive map to learn about corrected and uncorrected barriers and the injunction boundary.

    Funding for the $9 million US 2 portion of the project comes from state gas tax, Connecting Washington and Move Ahead Washington accounts. Snohomish County’s portion of the project is funded by a Washington State Department of Recreation and Conservation Office Fish Barrier Removal Board grant, a Bi-Partisan Infrastructure Law grant administered by the National Oceanic and Atmospheric Administration and Snohomish County Surface Water Management utility fees.

    MIL OSI USA News –

  • MIL-OSI USA: Georgian National Extradited from Moldova to Face Charges for Soliciting Hate Crimes and Planning Mass Casualty Attack in New York City

    Source: US State of California

    Leader of White Supremacist Group ‘Maniac Murder Cult’ Recruited Others to Bomb and Poison the Jewish Community and Racial Minorities 

    Defendant Allegedly Planned Scheme to Distribute Poisoned Candy on New Year’s Eve

    Georgian national Michail Chkhikvishvili, also known as Mishka, Michael, Commander Butcher, and Butcher, 21, of Tbilisi, was extradited to the United States from Moldova on May 22, and will be arraigned in federal court in Brooklyn today. Chkhikvishvili was arrested in Chișinău, Moldova, in July 2024 in connection with a four-count indictment returned in the Eastern District of New York charging him with soliciting hate crimes and acts of mass violence in New York City.

    According to court documents, Chkhikvishvili is a leader of the Maniac Murder Cult, also known as Maniacs Murder Cult, Maniacs: Cult of Killing, MKY, MMC and MKU, an international racially-motivated violent extremist group. As alleged in the indictment, Chkhikvishvili recruited people to commit violent acts in furtherance of MKY’s ideologies, including planning and soliciting a mass casualty attack in New York City.

    “This case is a stark reminder of the kind of terrorism we face today: online networks plotting unspeakable acts of violence against children, families, and the Jewish community in pursuit of a depraved, extremist ideology,” said Attorney General Pamela Bondi. “The Department of Justice will not tolerate hate-fueled violence, and we will pursue those who threaten innocent lives wherever they may be.”

    “The defendant is accused of recruiting others to kill Jewish people, kill racial minorities, and of providing instructions on how to commit other lethal attacks — even targeting children around the holidays by poisoning candy,” said FBI Director Kash Patel. “These allegations are despicable, and thanks to the work and partnership of the FBI and the authorities in Moldova, Michail Chkhikvishvili has been brought to the United States to face charges in our justice system.”

    “As alleged, the defendant, a white supremacist, recruited others to participate in a violent campaign of hatred against racial minorities and the Jewish community and to engage in the mass killing of children and others in these communities using poison, suicide bombs, firearms, arson fires, and vehicle explosions. Today’s extradition is a giant step forward in holding the defendant accountable for his unspeakably reprehensible and vile efforts to spread fear, chaos, and hate,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Protecting our homeland, city, district, and country from violent extremists will always be one of the top priorities of the Justice Department and my office.”

    Chkhikvishvili’s MKY adheres to a neo-Nazi accelerationist ideology and promotes violence against racial minorities, the Jewish community and other groups it deems “undesirables.” MKY members share a common goal of challenging social order and governments via terrorism and violent acts that promote fear and chaos. MKY has members in the United States and abroad.

    Since approximately September 2021, Chkhikvishvili has distributed a manifesto titled the “Hater’s Handbook” to MKY members and others. The Hater’s Handbook encourages people to commit acts of mass violence. In the Hater’s Handbook, Chkhikvishvili states that he has “murdered for the white race” and encourages and instructs others to commit acts of mass violence and “ethnic cleansing.” For example, the Hater’s Handbook encourages its readers to commit school shootings and to use children to perpetrate suicide bombings and other mass killings targeting racial minorities. The Hater’s Handbook describes methods and strategies for committing mass “terror attacks,” including, for example, using vehicles to target “large outdoor festivals, conventions, celebrations and parades” and “pedestrian congested streets.” The Hater’s Handbook specifically encourages committing attacks within the United States.

    In June 2022, Chkhikvishvili traveled to Brooklyn. As alleged, beginning at least as early as July 2022, Chkhikvishvili repeatedly encouraged others, primarily via the encryption-enabled mobile messaging platform Telegram, to commit violent hate crimes and other acts of violence on behalf of MKY. This included conspiring to solicit violent acts with the leader of a separate violent extremist neo-Nazi group, and soliciting acts of mass violence in New York from an individual who claimed to be a prospective MKY recruit, but who, unbeknownst to Chkhikvishvili, was actually an undercover FBI employee (the UC).

    In a September 2023 conversation, the UC messaged Chkhikvishvili asking whether there was an application process to join MKY. The defendant responded, “we ask people for brutal beating, arson/explosion or murder vids on camera.” Chkhikvishvili further stated that “[p]oisoning and arson are best options for murder,” and suggested also considering a larger “mass murder[]” within the United States. Chkhikvishvili advised the UC that the victims of these acts should be “low race targets.”

    Beginning in approximately November 2023, Chkhikvishvili solicited the UC to commit violent crimes, such as bombings and arsons, for the purpose of harming racial minorities, Jewish individuals and others. Chkhikvishvili provided detailed plans and materials such as bomb-making instructions and guidance on making Molotov cocktails to facilitate carrying out these crimes. In November 2023, Chkhikvishvili began planning a mass casualty attack in New York City to take place on New Year’s Eve. The scheme involved an individual dressing up as Santa Claus and handing out candy laced with poison to racial minorities.

    In January, the scheme evolved and Chkhikvishvili specifically directed the UC to target the Jewish community, Jewish schools, and Jewish children in Brooklyn with poison. Chkhikvishvili drafted step-by-step instructions to carry out the scheme and shared detailed manuals about creating and mixing lethal poisons and gases with the UC. He also instructed the UC on methods of making ricin-based poisons in powder and liquid form, including by extracting ricin from castor beans. Chkhikvishvili sent materials linked to radical Islamist jihadist groups and designated foreign terrorist organizations such as ISIS. 

    Chkhikvishvili wanted the planned attack to be a “bigger action than Breivik,” referring to Anders Behring Breivik, a Norwegian neo‑Nazi who killed 77 people in a bombing and mass shooting in Norway in 2011. Meanwhile, Chkhikvishvili told others of his plan and claimed to have previously committed other hate crimes while living in Brooklyn in 2022. Chkhikvishvili boasted to others that he was “glad I have murdered,” and that he would “murder more” but “make others murder first.”     

    Chkhikvishvili’s solicitations of violence have resulted in multiple attacks and killings around the world. In August 2024, an individual livestreamed himself stabbing approximately five people outside of a mosque in Eskisehir, Turkey, wearing a tactical vest adorned in Nazi symbols. A manifesto attributed to the attacker included explicit references to Chkhikvishvili and to violent statements made by him. Before the attack, the attacker also distributed a link to the Hater’s Handbook, authored by Chkhikvishvili, and other violent propaganda.

    If convicted, Chkhikvishvili faces a maximum penalty of 20 years in prison for solicitation of violent felonies (including hate crime acts and transporting an explosive with intent to kill or injure); five years in prison for conspiring to solicit violent felonies; 20 years in prison for distributing information pertaining to the making and use of explosive devices and ricin poison; and five years in prison for transmitting threatening communications.

    The FBI’s New York Joint Terrorism Task Force which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies, as well as the Department of State, and U.S. Customs and Border Protection are investigating the case. The Justice Department’s Office of International Affairs and the U.S. Department of State’s Diplomatic Security Service (DSS) agents provided significant assistance in securing the arrest and extradition of Chkhikvishvili from Moldova.

    Assistant U.S. Attorneys Ellen H. Sise and Andrew D. Reich for the Eastern District of New York and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section are prosecuting the case, with valuable assistance from Paralegal Specialists Wayne Colon and Rebecca Roth. The Justice Department’s Civil Rights Division has also provided 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 OSI USA News –

  • MIL-OSI Security: Georgian National Extradited from Moldova to Face Charges for Soliciting Hate Crimes and Planning Mass Casualty Attack in New York City

    Source: United States Attorneys General

    Leader of White Supremacist Group ‘Maniac Murder Cult’ Recruited Others to Bomb and Poison the Jewish Community and Racial Minorities 

    Defendant Allegedly Planned Scheme to Distribute Poisoned Candy on New Year’s Eve

    Georgian national Michail Chkhikvishvili, also known as Mishka, Michael, Commander Butcher, and Butcher, 21, of Tbilisi, was extradited to the United States from Moldova on May 22, and will be arraigned in federal court in Brooklyn today. Chkhikvishvili was arrested in Chișinău, Moldova, in July 2024 in connection with a four-count indictment returned in the Eastern District of New York charging him with soliciting hate crimes and acts of mass violence in New York City.

    According to court documents, Chkhikvishvili is a leader of the Maniac Murder Cult, also known as Maniacs Murder Cult, Maniacs: Cult of Killing, MKY, MMC and MKU, an international racially-motivated violent extremist group. As alleged in the indictment, Chkhikvishvili recruited people to commit violent acts in furtherance of MKY’s ideologies, including planning and soliciting a mass casualty attack in New York City.

    “This case is a stark reminder of the kind of terrorism we face today: online networks plotting unspeakable acts of violence against children, families, and the Jewish community in pursuit of a depraved, extremist ideology,” said Attorney General Pamela Bondi. “The Department of Justice will not tolerate hate-fueled violence, and we will pursue those who threaten innocent lives wherever they may be.”

    “The defendant is accused of recruiting others to kill Jewish people, kill racial minorities, and of providing instructions on how to commit other lethal attacks — even targeting children around the holidays by poisoning candy,” said FBI Director Kash Patel. “These allegations are despicable, and thanks to the work and partnership of the FBI and the authorities in Moldova, Michail Chkhikvishvili has been brought to the United States to face charges in our justice system.”

    “As alleged, the defendant, a white supremacist, recruited others to participate in a violent campaign of hatred against racial minorities and the Jewish community and to engage in the mass killing of children and others in these communities using poison, suicide bombs, firearms, arson fires, and vehicle explosions. Today’s extradition is a giant step forward in holding the defendant accountable for his unspeakably reprehensible and vile efforts to spread fear, chaos, and hate,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Protecting our homeland, city, district, and country from violent extremists will always be one of the top priorities of the Justice Department and my office.”

    Chkhikvishvili’s MKY adheres to a neo-Nazi accelerationist ideology and promotes violence against racial minorities, the Jewish community and other groups it deems “undesirables.” MKY members share a common goal of challenging social order and governments via terrorism and violent acts that promote fear and chaos. MKY has members in the United States and abroad.

    Since approximately September 2021, Chkhikvishvili has distributed a manifesto titled the “Hater’s Handbook” to MKY members and others. The Hater’s Handbook encourages people to commit acts of mass violence. In the Hater’s Handbook, Chkhikvishvili states that he has “murdered for the white race” and encourages and instructs others to commit acts of mass violence and “ethnic cleansing.” For example, the Hater’s Handbook encourages its readers to commit school shootings and to use children to perpetrate suicide bombings and other mass killings targeting racial minorities. The Hater’s Handbook describes methods and strategies for committing mass “terror attacks,” including, for example, using vehicles to target “large outdoor festivals, conventions, celebrations and parades” and “pedestrian congested streets.” The Hater’s Handbook specifically encourages committing attacks within the United States.

    In June 2022, Chkhikvishvili traveled to Brooklyn. As alleged, beginning at least as early as July 2022, Chkhikvishvili repeatedly encouraged others, primarily via the encryption-enabled mobile messaging platform Telegram, to commit violent hate crimes and other acts of violence on behalf of MKY. This included conspiring to solicit violent acts with the leader of a separate violent extremist neo-Nazi group, and soliciting acts of mass violence in New York from an individual who claimed to be a prospective MKY recruit, but who, unbeknownst to Chkhikvishvili, was actually an undercover FBI employee (the UC).

    In a September 2023 conversation, the UC messaged Chkhikvishvili asking whether there was an application process to join MKY. The defendant responded, “we ask people for brutal beating, arson/explosion or murder vids on camera.” Chkhikvishvili further stated that “[p]oisoning and arson are best options for murder,” and suggested also considering a larger “mass murder[]” within the United States. Chkhikvishvili advised the UC that the victims of these acts should be “low race targets.”

    Beginning in approximately November 2023, Chkhikvishvili solicited the UC to commit violent crimes, such as bombings and arsons, for the purpose of harming racial minorities, Jewish individuals and others. Chkhikvishvili provided detailed plans and materials such as bomb-making instructions and guidance on making Molotov cocktails to facilitate carrying out these crimes. In November 2023, Chkhikvishvili began planning a mass casualty attack in New York City to take place on New Year’s Eve. The scheme involved an individual dressing up as Santa Claus and handing out candy laced with poison to racial minorities.

    In January, the scheme evolved and Chkhikvishvili specifically directed the UC to target the Jewish community, Jewish schools, and Jewish children in Brooklyn with poison. Chkhikvishvili drafted step-by-step instructions to carry out the scheme and shared detailed manuals about creating and mixing lethal poisons and gases with the UC. He also instructed the UC on methods of making ricin-based poisons in powder and liquid form, including by extracting ricin from castor beans. Chkhikvishvili sent materials linked to radical Islamist jihadist groups and designated foreign terrorist organizations such as ISIS. 

    Chkhikvishvili wanted the planned attack to be a “bigger action than Breivik,” referring to Anders Behring Breivik, a Norwegian neo‑Nazi who killed 77 people in a bombing and mass shooting in Norway in 2011. Meanwhile, Chkhikvishvili told others of his plan and claimed to have previously committed other hate crimes while living in Brooklyn in 2022. Chkhikvishvili boasted to others that he was “glad I have murdered,” and that he would “murder more” but “make others murder first.”     

    Chkhikvishvili’s solicitations of violence have resulted in multiple attacks and killings around the world. In August 2024, an individual livestreamed himself stabbing approximately five people outside of a mosque in Eskisehir, Turkey, wearing a tactical vest adorned in Nazi symbols. A manifesto attributed to the attacker included explicit references to Chkhikvishvili and to violent statements made by him. Before the attack, the attacker also distributed a link to the Hater’s Handbook, authored by Chkhikvishvili, and other violent propaganda.

    If convicted, Chkhikvishvili faces a maximum penalty of 20 years in prison for solicitation of violent felonies (including hate crime acts and transporting an explosive with intent to kill or injure); five years in prison for conspiring to solicit violent felonies; 20 years in prison for distributing information pertaining to the making and use of explosive devices and ricin poison; and five years in prison for transmitting threatening communications.

    The FBI’s New York Joint Terrorism Task Force which consists of investigators and analysts from the FBI, the New York City Police Department, and over 50 other federal, state, and local agencies, as well as the Department of State, and U.S. Customs and Border Protection are investigating the case. The Justice Department’s Office of International Affairs and the U.S. Department of State’s Diplomatic Security Service (DSS) agents provided significant assistance in securing the arrest and extradition of Chkhikvishvili from Moldova.

    Assistant U.S. Attorneys Ellen H. Sise and Andrew D. Reich for the Eastern District of New York and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section are prosecuting the case, with valuable assistance from Paralegal Specialists Wayne Colon and Rebecca Roth. The Justice Department’s Civil Rights Division has also provided 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: Venezuelan National Residing Unlawfully in the U.S. Charged with Illegal Possession of a Firearm and Making False Statements

    Source: Office of United States Attorneys

    TOLEDO, Ohio – A Venezuelan man residing in Perrysburg, Ohio, has been accused of lying on immigration forms and on applications to purchase a firearm. Anthony Emmanuel Labrador-Sierra, 24, was charged by criminal complaint today for possession of a firearm by an alien unlawfully in the United States, making false statements during the purchase of a firearm, and for using false documents.

    According to the criminal complaint and underlying affidavit, Perrysburg Schools reported to the Perrysburg Police Department that they had received information that Labrador-Sierra, a student attending Perrysburg High School, was actually a 24-year-old man who enrolled under false pretenses. Labrador-Sierra is also alleged to have submitted false material information to U.S. Citizenship and Immigration Services about his date of birth in connection with applications for Temporary Protective Status and Employment Authorization Documents in 2024 and 2025.

    The complaint further alleges that Labrador-Sierra does not have lawful status to purchase, own or possess a firearm in the United States and that he submitted false information on the Alcohol, Tobacco, Firearms, and Explosives (ATF) Form 4473 to purchase a firearm. Among the alleged false statements he submitted when he purchased a Taurus 9mm, semiautomatic pistol from a licensed firearms dealer, were that he attested to being a United States citizen or national.

    If convicted, Labrador-Sierra faces up to 15 years in prison for possession of a firearm by an alien; 10 years in prison for making a false statement during the purchase of a firearm; and up to five years in prison for using false documents.

    This case is being investigated by the City of Perrysburg Police Department, U.S. Border Patrol Detroit Sector−Sandusky Bay Station, the FBI Toledo Field Office, the ATF, with assistance from the Wood County Prosecutor’s Office.

    The case is being prosecuted by Assistant U.S. Attorneys Robert Melching and Tracey Tangeman for the Northern District of Ohio, and Special Assistant U.S. Attorney Paul Dobson.

    This investigation is ongoing. Anyone with knowledge and information about this matter, please call the FBI at 1-800-CALL-FBI (1-800-225-5324) or visit fbi.gov/tips.

    A criminal complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: Alburgh, Vermont Man Sentenced to 12 Years Imprisonment for Producing and Distributing Child Sexual Abuse Material

    Source: Office of United States Attorneys

    Rutland, Vermont – The United States Attorney’s Office for the District of Vermont stated that on May 21, 2025, Brian Bluto, 60, formerly of Alburgh, Vermont, was sentenced by United States District Judge Mary Kay Lanthier to a term of 144 months’ imprisonment to be followed by a 15-year term of supervised release. Bluto previously pleaded guilty to distribution of child sexual abuse material on October 21, 2024, and has been detained since his guilty plea.

    According to court records, Bluto produced child sexual abuse material by hiding a camera to covertly record a child with whom he was living. Bluto began recording the minor victim when she was approximately 13 years old, and continued to do so until she was 16 years old. Bluto distributed still images and a video of the minor victim to a person on the internet, who unbeknownst to Bluto, was an Australian law enforcement officer. The Australian officer alerted Homeland Security Investigations, who obtained a search warrant for Bluto’s residence in Alburgh. The search warrant resulted in the seizures of numerous electronic devices, one of which was located in a backpack that was pointing toward the bathroom in the residence. The backpack had a homemade cut in the fabric where the lens of the camera on the electronic device could stick out without detection. A search of Bluto’s electronic devices revealed hundreds of images and videos of child sexual abuse material, including a depiction of a toddler being sexually abused by an adult.

    Acting United States Attorney Michael P. Drescher commended the investigatory efforts of Homeland Security Investigations, the Queensland, Australia, Police Service and the Vermont Internet Crimes Against Children Task Force.

    The case was prosecuted by Assistant U.S. Attorney Jonathan Ophardt. Bluto was represented by Assistant Federal Defenders Emily Kenyon and Steven Barth.

    This case was brought 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 Justice.gov/PSC.

    MIL Security OSI –

  • MIL-OSI Global: Split Supreme Court blocks Oklahoma’s Catholic charter school − but future cases could hinge on whether charters are, at their core, public or private

    Source: The Conversation – USA – By Preston Green III, John and Maria Neag Professor of Urban Education, University of Connecticut

    The Supreme Court building is seen on April 30, 2025, in Washington, D.C. AP Photo/Mark Schiefelbein

    In April 2025, the Supreme Court heard arguments about whether the nation’s first religious charter school could open in Oklahoma. The St. Isidore of Seville Catholic Virtual School would have been funded by taxpayer money but run by a local archdiocese and diocese. Several justices appeared open to the idea during questioning, leading some analysts to predict a win for the school.

    They were proved wrong on May 22, 2025, when the court blocked St. Isidore. The one-sentence, unsigned order did not indicate how individual justices had voted, nor why, simply declaring it was a split 4-4 decision that leaves in place the Oklahoma Supreme Court’s ruling against the school. Justice Amy Coney Barrett recused herself from the case. Her former employer, the University of Notre Dame, runs a law clinic representing the school’s supporters.

    Ever since the proposed school started making headlines, attention has focused on religion. Critics warned a decision in the school’s favor could allow government dollars to directly fund faith-based charter schools nationwide. In part, the justices had to decide whether the First Amendment’s prohibition on government establishing religion applies to charter schools.

    But the answer to that question is part of an even bigger issue: Are charters really public in the first place?

    The Supreme Court’s order applies only to Oklahoma, so similar cases attempting to open religious charter schools may emerge down the road. As two professors who study education law, we believe future court decisions could impact more than issues of religion and state, determining what basic rights students and teachers do or don’t have at charter schools.

    Dueling arguments

    In June 2023, the Oklahoma Statewide Virtual Charter School Board approved St. Isidore’s application to open as an online K-12 school. The following year, however, the Oklahoma high court ruled that the proposal was unconstitutional. The justices concluded that charter schools are public under state law, and that the First Amendment’s establishment clause forbids public schools from being religious. The court also found that a religious charter school would violate Oklahoma’s constitution, which specifically forbids public money from benefiting religious organizations.

    The Oklahoma Supreme Court in the Oklahoma State Capitol in Oklahoma City, May 19, 2014.
    AP Photo/Sue Ogrocki, File

    On appeal, the charter school claimed that charter schools are private, and so the U.S. Constitution’s establishment clause does not apply.

    Moreover, St. Isidore argued that if charter schools are private, the state’s prohibition on religious charters violates the First Amendment’s free exercise clause, which bars the government from limiting “the free exercise” of religion. Previous Supreme Court cases have found that states cannot prevent private religious entities from participating in generally available government programs solely because they are religious.

    In other words, while St. Isidore’s critics argued that opening a religious charter school would violate the First Amendment, its supporters claimed the exact opposite: that forbidding religious charter schools would violate the First Amendment.

    Are charters public?

    The question of whether an institution is public or private turns on a legal concept known as the “state action doctrine.” This principle provides that the government must follow the Constitution, while private entities do not have to. For example, unlike students in public schools, students in private schools do not have the constitutional right to due process for suspensions and expulsions – procedures to ensure fairness before taking disciplinary action.

    Charter schools have some characteristics of both public and private institutions. Like traditional public schools, they are government-funded, free and open to all students. However, like private schools, they are free from many laws that apply to public schools, and they are independently run.

    Because of charters’ hybrid nature, courts have had a hard time determining whether they should be considered public for legal purposes. Many charter schools are overseen by private corporations with privately appointed boards, and it is unclear whether these private entities are state actors. Two federal circuit courts have reached different conclusions.

    In Caviness v. Horizon Learning Center, a case from 2010, the U.S. Court of Appeals for the 9th Circuit held that an Arizona charter school corporation was not a state actor for employment purposes. Therefore, the board did not have to provide a teacher due process before firing him. The court reasoned that the corporation was a private actor that contracted with the state to provide educational services.

    In contrast, the 4th Circuit ruled in 2022 that a North Carolina charter school board was a state actor under the equal protection clause of the Fourteenth Amendment. In this case, Peltier v. Charter Day School, students challenged the dress code requirement that female students wear skirts because they were considered “fragile vessels.”

    The court first reasoned that the board was a state actor because North Carolina had delegated its constitutional duty to provide education. The court observed that the charter school’s dress code was an inappropriate sex-based classification, and that school officials engaged in harmful gender stereotyping, violating the equal protection clause.

    If the Supreme Court had sided with St. Isidore – as many analysts thought was likely – then all private charter corporations might have been considered nonstate actors for the purposes of religion.

    But the stakes are even greater than that. State action involves more than just religion. Indeed, teachers and students in private schools do not have the constitutional rights related to free speech, search and seizure, due process and equal protection. In other words, if charter schools are not considered “state actors,” charter students and teachers may eventually shed constitutional rights “at the schoolhouse gate.”

    Amtrak: An alternate route?

    People ride an Amtrak Acela train through Pennsylvania, en route from New York City to Washington, in 2022.
    AP Photo/Ted Shaffrey

    When courts have held that charter schools are not public in state law, some legislatures have made changes to categorize them as public. For example, California passed a law to clarify that charter school students have the same due process rights as traditional public school students after a court ruled otherwise.

    Likewise, we believe states looking to clear up charter schools’ ambiguous state actor status under the Constitution can amend their laws. As we explain in a recent legal article, a 1995 Supreme Court case involving Amtrak illustrates how this can be done.

    Lebron v. National Railroad Passenger Corporation arose when Amtrak rejected a billboard ad for being political. The advertiser sued, arguing that the corporation had violated his First Amendment right to free speech. Since private organizations are not required to protect free speech rights, the case hinged on whether Amtrak qualified as a government agency.

    The court ruled in the plaintiff’s favor, reasoning that Amtrak was a government actor because it was created by special law, served important governmental objectives and its board members were appointed by the government.

    Courts have applied this ruling in other instances. For example, the 10th Circuit ruled in 2016 that the National Center for Missing and Exploited Children was a governmental agency and therefore was required to abide by the Fourth Amendment’s protection from unreasonable search and seizure.

    Since the Supreme Court did not release any reasoning for its order, we do not know how the justices viewed the “government actor” question in the case from Oklahoma. That said, we believe charter schools fail the test set out in the Amtrak decision. Charter schools do serve the governmental purpose of providing educational choice for students. However, charter school corporations are not created by special law. They also fall short because most have independent boards instead of members who are appointed and removed by government officials.

    However, we would argue that states can amend their laws to comply with Lebron’s standard, ensuring that charter schools are public or state actors for constitutional purposes.

    This is an updated version of an article originally published on Feb. 27, 2025.

    Preston Green III is affiliated with the National Education Policy Center.

    Suzanne Eckes does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Split Supreme Court blocks Oklahoma’s Catholic charter school − but future cases could hinge on whether charters are, at their core, public or private – https://theconversation.com/split-supreme-court-blocks-oklahomas-catholic-charter-school-but-future-cases-could-hinge-on-whether-charters-are-at-their-core-public-or-private-257438

    MIL OSI – Global Reports –

  • MIL-OSI Security: FBI Seeking to Identify Potential Victims in Donovan Nungasak Investigation

    Source: US FBI

    The FBI Anchorage Field Office is seeking to identify potential victims of Donovan Nungasak, 31, of Utqiagvik, Alaska. This week, a federal grand jury in the District of Alaska returned an indictment against Nungasak charging him with one count of production of child pornography and one count of possession of child pornography.

    The FBI arrested Nungasak on April 28, 2025, for allegedly having sexually explicit conversations with a minor online, as previously announced by the U.S. Attorney’s Office for the District of Alaska as part of Operation Restore Justice, a joint initiative to identify and arrest those accused of child exploitation crimes.

    If you and/or your minor dependent(s) have information concerning Nungasak’s alleged actions, please contact the FBI Anchorage Field Office at (907) 276-4441 or anonymously online at tips.fbi.gov.

    The FBI is legally mandated to identify victims of federal crimes it investigates. Victims may be eligible for certain services, restitution, and rights under federal and/or state law. All identities of victims will be kept confidential.

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

    For additional resources and information, please visit: 

    MIL Security OSI –

  • MIL-OSI Europe: OSCE and Greek experts train future Romanian border police agents in detecting forged documents

    Source: Organization for Security and Co-operation in Europe – OSCE

    Headline: OSCE and Greek experts train future Romanian border police agents in detecting forged documents

    Participants in an OSCE training course for future Romanian border police agents detecting forged documents and impostors at border crossing points, Oradea, 22 May 2025. (OSCE) Photo details

    The OSCE Transnational Threats Department, in co-operation with Greek document experts, held a training course on detecting forged documents and impostors at border crossing points for 193 future border police agents studying at the ‘Avram Iancu Training School for Border Police Agents’ in Oradea, Romania, on 22 and 23 May.
    The training is particularly timely as Romanian Border Police identified 1,090 cases of forged documents in 2024 and ongoing training ensures border agents can quickly detect fraudulent documents, keeping the country’s borders secure. Through discussions with document experts from Greece, the participants enhanced their knowledge about the latest trends in document forgery including high-quality counterfeit residence permits, signs of tampering such as overprinting on document holder photos and real-world case studies of forged passports with missing pages.
    “The training brings added value to the Avram Iancu Training School for Border Police Agents Oradea study programme, making a significant contribution to the training of future border guards in document forgery detection proficiency and, hence, to increased security at Schengen borders. The timing of the training activity is also appropriate, as the students will take the graduation exam between 24 May and 5 June 2025, and will join the operational structures of the Romanian Border Police on 6 June 2025. Therefore, this OSCE training improves their professional capabilities at the beginning of their career in the field of public order and security,” said Police Chief Commissioner Felicia Voicu, Director of the Avram Iancu Training School for Border Police Agents.
    This training course is part of an ongoing OSCE project supporting the Organization’s participating States and Partners for Co-operation in reducing the illegal crossing of borders with a fake or stolen identity, funded by the United States.

    MIL OSI Europe News –

  • MIL-OSI USA: City of Miami Police Officer Pleads Guilty to COVID-19 Relief Fraud

    Source: United States Small Business Administration

    Click Here to View the Original U.S. Department of Justice (DOJ) Press Release

    Yesterday, Tramaine Liptrot, 43, a police officer with the City of Miami Police Department (MPD) who has been relieved of duty, pleaded guilty to wire fraud in connection with fraudulent applications for two Paycheck Protection Program (PPP) loans totaling over $200,000. Liptrot entered his guilty plea in Miami before U.S. District Judge Beth Bloom.

    According to the facts admitted at the change of plea hearing, Liptrot, along with being an MPD Police Officer, was the owner and President of Liptrots Tax Services L.L.C (Liptrots Tax). With the assistance of an associate, Liptrot fraudulently obtained two PPP loans in the name of Liptrots Tax.

    On June 22, 2020, working with the associate, Liptrot caused the submission of a false and fraudulent PPP loan application on behalf of Liptrots Tax, falsely claiming that Liptrots Tax had an average monthly payroll of $36,700 for four employees, and a fraudulent IRS Form 944 in support thereof, falsely claiming that Liptrots Tax paid its employees $440,397 during 2019. As a result of this fraudulent PPP application, Liptrots Tax obtained approximately $91,750 in PPP loan proceeds from an SBA approved PPP lender.

    On March 3, 2021, again working with the associate, Liptrot caused the submission of a false and fraudulent second-draw PPP loan application on behalf of Liptrots Tax, falsely claiming that Liptrots Tax had an average monthly payroll of $43,369, and including as part of the application process, a fraudulent IRS Form 944, falsely claiming that Liptrots Tax paid $496,428 in wages and other compensation in 2020. As a result of this fraudulent second-draw PPP application, Liptrots Tax obtained approximately $108,422 in PPP loan proceeds from a different SBA approved PPP lender.

    Liptrot is scheduled for sentencing on August 6, 2025, at 10:30 a.m., where he faces a possible maximum sentence of up to 20 years in prison.

    U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, acting Special Agent in Charge Brett D. Skiles of FBI Miami and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region, announced the guilty plea.

    FBI Miami’s Area Corruption Task Force, which includes task force officers from the City of Miami Police Department’s Internal Affairs Section, and SBA-OIG investigated the case. Assistant U.S. Attorney Edward N. Stamm is prosecuting the case and Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling asset forfeiture.

    In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (EIDLs) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred.  EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

    On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

    On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.

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

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20155.

    MIL OSI USA News –

  • MIL-OSI USA: Former Solon-based Manufacturer to Pay $6M to Resolve False Claims Act Allegations Relating to Paycheck Protection Program

    Source: United States Small Business Administration

    Click Here to View the Original U.S. Department of Justice (DOJ) Press Release

    The Justice Department has announced that Cosmax USA, a corporation having previously done business as two separate entities, Cosmax USA and Nu-World Corporation, has agreed to pay $6 million, of which $3 million is restitution, to resolve allegations under the False Claims Act (FCA) that they knowingly provided false information to obtain Paycheck Protection Program (PPP) loans and loan forgiveness. The companies are part of a global conglomerate that supplies cosmetics and nutritional supplements. Nu-World was merged into Cosmax USA in 2023.

    Cosmax USA operated a manufacturing facility in Solon, Ohio up until 2023. This settlement resolves a lawsuit filed by a former employee who worked at that location. Under the whistleblower provisions of the FCA, an individual, known in legal terms as the “relator,” may file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator in this case, Alexander Novik, served as Cosmax USA’s controller and also in its human resources department.

    The PPP was launched through the Small Business Administration (SBA), with the enactment of the Coronavirus Aid, Relief and Economic Security (CARES) Act in 2020. The program provided eligible companies with financial support as businesses faced unprecedented challenges brought on by the COVID-19 pandemic. This resolution addresses two alleged violations in which the United States contended that Cosmax USA and Nu-World submitted false information to be eligible to receive PPP funds.

    First, the resolution addresses allegations that Nu-World submitted an application in April 2020 for a First-Draw PPP loan, and an application for forgiveness of that loan in 2021, based on a calculated loan amount that was partially based on payments to temporary employees who were not employees of Nu-World.

    Second, the resolution addresses allegations that Cosmax USA falsely certified that it was a small business with fewer than 300 employees (including employees at affiliated companies) when it submitted its Second-Draw PPP loan application. In reality, the number of Cosmax USA’s employees, when combined with the number of employees working at its affiliate Nu-World, exceeded the PPP program’s 300-employee limit.

    The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Ohio, with assistance from the SBA’s Office of General Counsel (SBA-OGC) and Office of Inspector General (SBA-OIG).

    Trial Attorney Graham D. Welch of the Justice Department’s Civil Division and Assistant U.S. Attorney J. Jackson Froliklong for the Northern District of Ohio handled the matter, with assistance from Thomas W. Rigby and Arlene P. Messinger Lerner of the SBA.

    Anyone with information about allegations of CARES Act fraud may submit a report with the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or online at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    The claims resolved by the settlement are allegations only. There has been no determination of liability.

    executed_settlement_agreement-cosmax_0.pdf

    MIL OSI USA News –

  • MIL-OSI USA: Mooresville Man Sentenced To Prison For Defrauding Investors And Stealing Millions in COVID Relief Funds

    Source: United States Small Business Administration

    Click Here to View the Original U.S. Department of Justice (DOJ) Press Release

    Steven Andiloro, 53, of Mooresville, N.C., was sentenced today to 45 months in prison followed by three years of supervised release for orchestrating a $6.1 million investment fraud scheme and fraudulently obtaining over $2.6 million in COVID relief funds, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Andiloro to pay $5,341.155 in restitution the victims of his fraud.

    Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and James C. Barnacle, Jr., Acting Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Amelaka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration, Office of Inspector General, join U.S. Attorney Ferguson in making today’s announcement.

    According to documents filed in the case and the sentencing hearing, from 2018 to 2021, Andiloro operated an investment fraud scheme where he induced victims to invest in businesses, both real and fictitious, by making false representations about where and how the investors’ money would be invested. For example, some of Andiloro’s victims were told their money would be invested into his car service business, while others believed they were investing into a non-existent marijuana dispensary business. Contrary to representations made to victims, Andiloro did not invest the money as promised. Instead, he used the funds to pay for personal expenses and to operate a Ponzi scheme, where he used money from new investors to pay earlier investors purporting that the returns were the result of profitable investments.

    In addition to the investment scheme, Andiloro also engaged in COVID fraud. Court records show that, from April 2020 to March 2021, Andiloro obtained funds from the Paycheck Protection Program (PPP) by submitting fraudulent applications for disaster relief loans intended for businesses that suffered economic hardship due to the pandemic. To obtain the PPP funds, Andiloro submitted applications that contained false financial information about his businesses, including fake employment data and inflated revenues, costs, and payroll expenses. Andiloro received more than $2.6 million in disaster relief funds, which he used to fund his personal lifestyle and to make payments in furtherance of the investment scheme.

    Andiloro remains released on bond. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

    In making today’s announcement, U.S. Attorney Ferguson thanked the U.S. Secret Service, the FBI, and the SBA-OIG for their investigation of the case.

    Assistant U.S. Attorneys Graham Billings and Katherine Armstrong with the U.S. Attorney’s Office in Charlotte prosecuted the case.

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

    MIL OSI USA News –

  • MIL-OSI Security: Two teenagers have pleaded guilty to the murder of Kelyan Bokassa

    Source: United Kingdom London Metropolitan Police

    Two boys, both aged 16-years old, have pleaded guilty to the murder of 14-year-old Kelyan Bokassa.

    The pair, who cannot be named because of their age, are due to be sentenced on Wednesday, 25 July at the Old Bailey.

    They were arrested on Wednesday, 15 January after a man hunt by Met officers and charged the next day.

    Detective Chief Inspector Sarah Lee, Specialist Crime, who led the Met’s investigation said: Today I wish to express my team’s heartfelt sympathies to Kelyan’s family.

    “The brutal and senseless attack on Kelyan’s has deeply impacted his friends, the wider community and everyone that has worked tirelessly to identify, arrest and prosecute those responsible.

    “I hope Kelyan’s family can take some solace in this outcome but I know they remain deeply bereft at the waste of three young lives.”

    An investigation was launched after police were called at 14:28hrs on Tuesday, 7 January to reports of a stabbing on a bus in Woolwich, SE18. The incident occurred on a Route 472 bus on Woolwich Church Street near the junction with the A205 South Circular Road.

    Officers attended, along with London Ambulance Service and London’s Air Ambulance. Paramedics treated a Kelyan at the scene, but he very sadly died shortly after medics arrived.

    MIL Security OSI –

  • MIL-OSI Security: Portland Gang Leader Sentenced to Federal Prison for Role in Drug Trafficking Conspiracy

    Source: US FBI

    PORTLAND, Ore.—The leader of Portland’s 18th Street Gang was sentenced to federal prison today for his role in a conspiracy to traffic large quantities of fentanyl, methamphetamine and cocaine into the Portland area for redistribution and sale.

    Gustavo Torres-Mendez, 38, a Portland resident, was sentenced to 168 months in federal prison and five years’ supervised release.

    According to court documents, in 2019, following his release from state prison for first degree robbery with a firearm, Torres-Mendez established himself as the leader of the 18th Street Gang in Portland. At the time, investigators were aware that Torres-Mendez maintained a significant stature with and history in the gang developed while serving time in Oregon state prisons and for his activities out of custody.

    By late summer 2022, investigators had obtained significant evidence that Torres-Mendez and a close associate were leading a criminal enterprise active in selling counterfeit Oxycodone pills containing fentanyl, methamphetamine and cocaine in and around the Portland metro area. In early September 2022, investigators uncovered a major effort by Torres-Mendez and several associates to collect money for a large drug purchase and, within days, the group had collected more than $126,000 in cash. At around the same time, on September 7, 2022, police stopped a vehicle connected to the group traveling near Grants Pass, Oregon. A search of the vehicle returned more than 104 pounds of methamphetamine and eight pounds of cocaine.

    On November 15, 2022, a federal grand jury in Portland returned a seven-count indictment charging Torres-Mendez and six associates for conspiring with one another to distribute fentanyl, methamphetamine, and cocaine. Two days later, on November 17, 2022, a multi-agency law enforcement operation was conducted targeting Torres-Mendez and his associates. A search of Torres-Mendez’s North Portland home returned a handgun, ammunition, tactical body armor, a small bag of “M30” counterfeit Oxycodone pills, and $6,386 in cash. On the same day, investigators located and seized 10 additional firearms at a location in Portland used by the 18th Street Gang to store and distribute drugs and keep weapons.

    On September 6, 2023, Torres-Mendez pleaded guilty to conspiring with his associates to distribute fentanyl, methamphetamine, and cocaine. Three of Torres-Mendez’s co-conspirators have also pleaded guilty and been sentenced to federal prison.

    This case was investigated by the FBI and Portland Police Bureau. It was prosecuted by Thomas H. Edmonds and Nicole M. Bockelman, Assistant U.S. Attorneys for the District of Oregon.

    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.

    This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. 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.

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  • MIL-OSI Security: Eastern Oregon Man Sentenced to More Than 12 Years in Federal Prison for Sexually Abusing Two Minors He Met Online

    Source: US FBI

    PORTLAND, Ore.—A La Grande, Oregon man was sentenced to more than 12 years in federal prison Wednesday for sexually abusing and transporting two minors from Washington State he met through Snapchat.

    Albert Wayne Johnson, 42, was sentenced to 151 months in federal prison and 10 years’ supervised release.

    According to court documents, on August 8, 2022, deputies from the Clackamas County Sheriff’s Office responded to a call of two minors abandoned at Barton Park in Boring, Oregon. The children told the deputies they met Johnson on Snapchat and that he had driven them from Washington State through Idaho and into Oregon, and had sexually abused both during the trip. Along the way, Johnson stopped at a motel in Othello, Washington, where he abused the children, and a campground near La Grande, where he continued to abuse one of the children. After arriving in Boring, Johnson left the children at a campsite in Barton Park and never returned.

    In August 2022, after receiving information about the abduction and abuse that had occurred, detectives from the Othello Police Department contacted the motel in Othello and obtained surveillance footage showing Johnson with the two children.

    On August 30, 2022, officers and deputies from the La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, and Umatilla Tribal Police Department located Johnson at his residence in La Grande and arrested him on an outstanding parole violation warrant.

    On October 5, 2022, Johnson was charged by criminal complaint with coercing and enticing a minor and transporting a minor with intent to engage in criminal sexual activity. Later, on November 2, 2022, a federal grand jury in Portland returned a three-count indictment charging Johnson with traveling across state lines to engage in a sexual act with a minor, transporting a minor with intent to engage in criminal sexual activity, and commission of a sex offense by a registered sex offender.

    On January 24, 2024, Johnson pleaded guilty to transporting a minor with intent to engage in criminal sexual activity.

    This case was investigated by the FBI Pendleton Resident Agency with assistance from the Othello Police Department, La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, Umatilla Tribal Police Department, and Clackamas County Sheriff’s Office. It was prosecuted by Cassady Adams, Assistant U.S. Attorney for the District of Oregon.

    Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.

    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: North Carolina Man Indicted for Civil Rights Offenses Due to Bias-Motivated Threats

    Source: US FBI

    CHARLOTTE, N.C. – A three-count indictment was unsealed today in the Western District of North Carolina charging a North Carolina man with federal civil rights and firearms violations for threatening eight individuals with force because of their race, color, religion and national origin, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

    Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office join U.S. Attorney King in making the announcement.

    According to the indictment, on June 8, 2024, Maurice Hopkins, 31, threatened eight individuals with a firearm inside Zambies Pizza, a restaurant in Charlotte. Count one of the indictment charges Hopkins with threatening the eight individuals with force because of their race, color, religion and national origin and because they were enjoying the goods, services and facilities of the restaurant. Count two of the indictment charges Hopkins with threatening the eight individuals with force on account of their race, color, religion and national origin to intimidate the individuals from exercising their federally protected housing rights. Count three of the indictment charges Hopkins with carrying, using and brandishing a firearm during and in relation to a crime of violence.

    If convicted, Hopkins faces a maximum penalty of 10 years in prison on each of the civil rights charges and a mandatory minimum prison sentence on the firearms charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Charlotte Field Office investigated the case.

    Assistant U.S. Attorney Nick J. Miller for the Western District of North Carolina and Trial Attorneys Daniel Grunert and Chloe Neely of the Civil Rights Division’s Criminal Section are prosecuting the case.

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

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  • MIL-OSI Security: Drug Coordinator Sentenced to 63 Months in Prison

    Source: US FBI

    TUCSON, Ariz. – Enrique Heriberto Nunez-Tiznado, 45, of Sasabe, Sonora, Mexico, was sentenced yesterday by United States District Judge Scott H. Rash to 63 months in prison. Nunez-Tiznado pleaded guilty to Possession with Intent to Distribute Fentanyl, Heroin, Cocaine, and Methamphetamine, and Conspiracy to Launder Monetary Instruments on December 13, 2023.

    Nunez-Tiznado admitted he was a Mexico-based leader of an organization that supplied drugs that were mailed throughout the United States. Nunez-Tiznado used individuals to smuggle drugs into the United States through ports of entry. He then coordinated the mailing of those drugs from Tucson to various locations throughout the United States. Finally, he coordinated the laundering of drug proceeds through a co-defendant’s bank account.

    Colombian authorities apprehended Nunez-Tiznado in February 2022, pursuant to an Interpol Red Notice, and Nunez-Tiznado was extradited from Colombia to the United States on April 12, 2023.

    This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

    The Drug Enforcement Administration and the Federal Bureau of Investigation conducted the investigation in this case. The Justice Department’s Office of International Affairs, the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office at the U.S. Embassy in Bogota, the U.S. Marshals Service, and Colombian law enforcement authorities provided critical assistance in securing the arrest and extradition of Nunez-Tiznado. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
     

    CASE NUMBER:           CR 21-2667-TUC-SHR
    RELEASE NUMBER:    2024-020_Nunez-Tiznado

    # # #

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

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  • MIL-OSI Security: Virginia Man Charged with Assaulting Law Enforcement and Other Offenses During January 6 Capitol Breach

    Source: US FBI

               WASHINGTON — A Virginia man is charged with assaulting law enforcement and other felony and misdemeanor offenses related to his alleged conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His alleged actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

               Mark Mercurio, 56, of Bracey, Virginia, is charged in a criminal complaint filed in the District of Columbia with felony offenses of obstruction of law enforcement during a civil disorder and assaulting, resisting, or impeding certain officers.

               In addition to the felonies, Mercurio is charged with misdemeanor offenses of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, engaging in physical violence in a restricted building or grounds, disorderly conduct in a Capitol building, act of physical violence in the Capitol grounds or buildings, and parading, demonstrating, or picketing in a Capitol building.

               Mercurio was arrested by the FBI on Nov. 21, 2024, in North Carolina and made his initial appearance in the Eastern District of North Carolina.

               According to court documents, surveillance video footage captured Mercurio entering the U.S. Capitol building on Jan. 6, 2021, through the Upper West Terrace Door at approximately 2:40 p.m. After entering the building, Mercurio proceeded to the front of a large group of rioters near the entrance and confronted a small group of U.S. Capitol Police (USCP) officers. At one point, it is alleged that Mercurio held open an interior door to the Rotunda staircase for an associate and others before heading up the stairs. Surveillance video footage shows that Mercurio and an associate entered the Rotunda at 2:45 p.m., where Mercurio intermittently held up his phone, appearing to record the events.

               At about 2:46 p.m., Mercurio and an associate briefly disappeared from the Rotunda and reappeared at about 3:01 p.m. The two then walked past a USCP officer and approached a man addressing the crowd with a bullhorn. Mercurio again appeared to use his phone to record the man’s speech. Shortly after, it is alleged that Mercurio joined a mob of rioters who pushed back against police officers attempting to clear the Rotunda. At approximately 3:08 p.m., Mercurio positioned himself at the front of the rioters’ line, confronting the officers.

               Court documents say that at about 3:09 p.m., Mercurio shoved a police officer’s baton into their chest with both hands while yelling expletives. Another officer nearby warned Mercurio not to assault police and urged him to leave. Seconds later, it is alleged that Mercurio physically interfered with another police officer by pushing the officer’s arm downward while continuing to yell obscenities.

               Mercurio then exited the Capitol at approximately 3:12 p.m.

               This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of North Carolina.

               This case is being investigated by the FBI’s Charlotte and Washington Field Offices. Valuable assistance was provided by the United States Capitol Police and the Metropolitan Police Department.

               In the 46 months since Jan. 6, 2021, more than 1,561 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 590 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

               Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

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

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  • MIL-OSI Security: Three Charlotte Men Charged with Stealing High-End Vehicles Appear in Federal Court

    Source: US FBI

    CHARLOTTE, N.C. – Three Charlotte men charged with conspiring to steal high-end vehicles appeared in federal court today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A grand jury returned the criminal indictment earlier this week, which remained under seal until today.

    Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.

    Jonathan Marquis Stitt, 36, Francisco Arnoldo Lopez Pena, 41, and Jason Randall Spearman, 43, all of Charlotte, are charged with conspiring to violate federal laws prohibiting the transportation, possession, and sale of stolen vehicles and the altering and removal of Vehicle Identification Numbers (VINs).  Each defendant is separately charged with altering the VINs of specific vehicles. In addition, Stitt is also charged with two counts of possession of a stolen vehicle and Spearman is charged with possession of a firearm by a convicted felon.

    The indictment alleges that, between 2020 and October 2024, the defendants and their co-conspirators engaged in a conspiracy to steal high-end motor vehicles worth millions of dollars from businesses and individuals in North Carolina, South Carolina, Georgia, Virginia, and Maryland. In order to maximize profits, Stitt and other co-conspirators allegedly sought to obtain high-end vehicles, including various luxury models made by Acura, Cadillac, Lamborghini, Land Rover, and Mercedes-Benz, as well as trucks and other expensive models from Chevrolet, Dodge, Ford, Freightliner, and GMC.

    According to allegations in the indictment, once in possession of the stolen vehicles, the defendants and their co-conspirators regularly altered or tampered with the stolen vehicles’ original VINs to avoid detection by law enforcement and to maximize resale value. Stitt and his co-conspirators also used fraudulent 30-day tags on the stolen vehicles, caused certain of the stolen vehicles to be fraudulently registered with state motor vehicle agencies, and repainted stolen vehicles, all in an effort to further avoid detection from law enforcement.

    According to allegations in the indictment, Stitt and his co-conspirators often sought to sell the stolen vehicles at prices significantly below their fair market value, and also possessed several of the stolen vehicles for personal use and to further facilitate the scheme.

    The defendants were detained by the U.S. magistrate judge at their initial appearance pending detention hearings next week. The conspiracy charge carries a maximum penalty of five years in prison. The charge of possession of a stolen vehicle carries a maximum penalty of 10 years in prison. The charge of altering or removing a VIN carries a maximum penalty of five years in prison. And the charge of possession of a firearm by a convicted felon carries a maximum prison term of 15 years.

    This is the fifth indictment filed in the U.S. District Court in Charlotte related to federal offenses involving stolen vehicles since August 2023. In July 2024, a Charlotte man was indicted for stealing high end luxury vehicles and altering VINs, including several vehicles from the Charlotte Douglas International Airport. Also, in March 2023, two individuals were charged for a scheme that involved buying and selling stolen vehicles from across the country. In August 2023, five individuals were indicted for stealing luxury vehicles from dealerships throughout the United States, and two additional individuals were indicted in November 2023, for orchestrating high-end auto thefts from businesses in South Carolina.

    The charges against the defendants are allegations and they are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    U.S. Attorney King commended the FBI and CMPD for their investigation of the case and thanked the National Insurance Crime Bureau and Homeland Security Investigations for their assistance. 

    Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the case. 

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  • MIL-OSI Security: Elizabeth City Man Sentenced to 12 Years for Fentanyl and Firearm Offenses

    Source: US FBI

    RALEIGH, N.C. – Karem Felton, age 31, from Elizabeth City, was sentenced to 147 months in prison for possession with the intent to distribute forty grams or more of a mixture and substance containing fentanyl and ten grams or more of a mixture and substance containing a fentanyl analogue after investigators with Pasquotank County Sheriff’s Office searched Felton’s residence on May 19, 2023, in response to shots fired a day earlier.

    “Disrupting drug trafficking in our communities is a critical part of our mission. The FBI and our local partners are working very hard to take dangerous drugs off of our streets, along with the people who peddle them. This case is another great example of law enforcement working together to make our communities safer,” said Robert M. DeWitt, the Special Agent in Charge of the FBI in North Carolina.

    “I want to thank my Deputies at the Pasquotank County Sheriff’s Office, Elizabeth City Police Department, Federal Bureau of Investigations and the U.S. Attorney’s Office for the great work that has been done to combat the drug and violent crime issues we face on a daily basis,” said Pasquotank County Sheriff Tommy Wooten.

    On May 18, 2023, Elizabeth City Police officers responded to shots fired at a vehicle. Officers collected eight .300 caliber rifle shell casings in the area and reviewed city cameras around the area of the incident. They were able to see a male step out of a BMW and fire shots at a Dodge Charger. Law enforcement saw Felton driving the same BMW with the same license plate earlier in the month on March 6, 2023.

    On May 19, 2023, investigators from the Pasquotank County Sheriff’s Office conducted a search of Felton’s residence. During the search, they discovered several items in the bedroom: a 7.62 x 39mm pistol hidden under the bed, a .300 Blackout pistol in the closet, and a 10mm pistol containing fentanyl inside the headboard of the master bed. Additionally, officers found two AR pistol braces in a soft-sided cooler and a .300 Blackout magazine with 18 rounds of .300 Blackout ammunition placed between the mattress and box spring.

    In a spare bedroom, officers located a safe that contained $11,050 in cash, assorted ammunition, and a digital scale. In the living room, they found $1,108 in cash and two cell phones hidden inside the couch. A firearm holster was also discovered in the children’s bedroom. After conducting a further search of the vehicle, officers uncovered fentanyl, cocaine, and additional cash.

    Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by United States District Court Judge Louis W. Flanagan. Elizabeth City Police Department,  Pasquotank County Sheriff’s Office, and the Federal Bureau of Investigation investigated the case and Assistant U.S. Attorneys Julie A. Childress and Katherine S. Englander are prosecuted the case.

    This investigation was an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:24-CR-114-M-BM.

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  • MIL-OSI Security: Raleigh Man Pleads Guilty to Seven-Figure Fraud Against COVID Relief Program

    Source: US FBI

    RALEIGH, N.C. – Raleigh businessman Wilson Alfredo Olivera Borda pled guilty to nine counts of defrauding the Paycheck Protection Program (PPP) for over $1 million. At sentencing, Olivera faces a statutory maximum of 30 years imprisonment and a fine of up to $1,000,000.

    According to court documents and other information presented in court, in 2020 and 2021, Borda received nine PPP loans for five separate companies. To obtain those loans, Olivera submitted applications falsely claiming that each business had substantial employees and operations. Olivera bolstered those falsehoods by submitting fabricated tax returns supporting his applications.

    In truth, two of the companies, The Insurance Centers.Com and The Insurance Centers LLC, were not separate businesses, but trade names used by a different company for which Borda had already applied for and received COVID relief funding. The other three, Realty Vestors LLC, US-Kaizen LLC, and Ecobuild LLC, had little or no operations and no employees. After obtaining the loans, Borda made additional false statements to obtain forgiveness. All nine loans were fully forgiven and paid off by the U.S. Small Business Administration.

    “This businessman pocketed over $1 million in PPP relief funds by submitting bogus tax returns suggesting his business had legitimate operations and employees.  When the FBI dug in, the house of cards came tumbling down,” said U.S. Attorney Michael F. Easley, Jr.  “We should be proud to live in a nation that cares for the needy and moves quickly to handle the greedy.  Law enforcement is working daily to root out fraud on public programs.”

    Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the arraignment by United States District Judge Terrence Boyle. The Federal Bureau of Investigation investigated the case.

    Assistant United States Attorney Chris Cogburn prosecuted the case for the government.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-215-BO.

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  • MIL-OSI Security: Two Charged for Involvement with Online Groups Dedicated to Monkey Torture and Mutilation

    Source: US FBI

    CINCINNATI – Two individuals were charged this week for their involvement with online groups dedicated to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.

    Nicholas T. Dryden, of Cincinnati, Ohio, and Giancarlo Morelli, of New Jersey, were charged with conspiracy to create and distribute so-called “animal crush videos,” and with distributing animal crush videos. Dryden is also charged with the creation of animal crush videos, as well as with production, distribution and receipt of a visual depiction of the sexual abuse of children because a minor was paid to abuse the monkeys.

    According to court documents, in March and April 2023, the two co-defendants allegedly conspired to create and distribute videos depicting acts of sadistic violence against baby, adolescent and adult monkeys. The conspirators allegedly funneled money through Dryden, who then paid the minor in Indonesia to commit the requested acts on camera.

    The videos alleged to have been created as part of the conspiracy included depictions of monkeys having their genitals burned, having their genitals cut with scissors, being sodomized with a wooden skewer and being sodomized with a spoon.

    The conspiracy charge carries a maximum penalty of five years in prison, the charges related to the creation and distribution of animal crush videos each carry a maximum penalty of seven years in prison and the charges of producing and distributing depictions of the sexual abuse of children each carry a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement.

    The U.S. Fish and Wildlife Service and FBI investigated the case.

    Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Tim Oakley for the Southern District of Ohio are prosecuting the case.

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

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