NewzIntel.com

Category: United States of America

  • MIL-OSI Security: Rap Artist Sentenced for Carrying a Loaded Semiautomatic Pistol with Extended Clip in Carry-On Bag at LAX

    Source: US FBI

    An Atlanta man and known rap artist was sentenced today to 20 months in federal prison for attempting to carry a loaded weapon in his carry-on bag as he attempted to board a flight to Atlanta.

    Tiwan Raybon, 36, of Douglasville, Georgia, was sentenced this afternoon by United States District Judge André Birotte Jr. to one year and 8 months in federal prison.

    Raybon, also known as “Fat Money” was indicted by a federal grand jury in United States District Court in Los Angeles on June 27, 2022, for knowingly possessing a Glock 9mm-caliber semiautomatic pistol and several rounds of ammunition—which were contained in his carry-on luggage—while attempting to board a flight from Los Angeles destined for Atlanta, Georgia. In April 2024, Raybon pleaded guilty to one federal count of being a prohibited person in possession of a firearm and ammunition.

    At the time of the offense, Raybon fled after officers with the Transportation Security Administration (TSA) found the firearm and ammunition during a routine luggage inspection. TSA then contacted the FBI for further investigation. Raybon was in possession of the weapon illegally as he had been convicted previously of multiple felonies and a misdemeanor crime of domestic violence in Cook County, Illinois.

    It is unlawful for a person convicted of a felony or a misdemeanor crime of domestic violence to ship, transport, receive, or possess a firearm or ammunition.

    The FBI’s Task Force located at Los Angeles International Airport (LAX) and the Transportation Security Administration (TSA) investigated this case. The FBI’s Task Force at LAX is comprised of FBI Agents and detectives with the Los Angeles Police Department and the Los Angeles World Airport Police Department.

    The case against Raybon was prosecuted by Assistant United States Attorney Jennifer Chou with the United States Attorney’s Office in Los Angeles.

    MIL Security OSI –

  • MIL-OSI Security: Stockton Man Pleads Guilty to Attempted Sexual Exploitation of a Minor

    Source: US FBI

    SACRAMENTO, Calif. — Elmer Yusay Ngo, 28, of Stockton, pleaded guilty today to one count of attempted sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, Ngo utilized social media to sexually exploit female minors. This sexual exploitation included attempting to coerce, entice, and persuade the minors to produce child pornography for Ngo.

    This case is the product of an investigation by the Federal Bureau of Investigation and the Internet Crimes Against Children Task Force, with assistance from state and local police departments nationwide. Assistant United States Attorney Kristin F. Scott is prosecuting the case.

    Ngo is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Nov. 4, 2024. Ngo faces a minimum statutory penalty of 15 years in prison, a maximum statutory penalty of 30 years in prison, a $250,000 fine, supervised release and restitution. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

    MIL Security OSI –

  • MIL-OSI Security: FBI Returns Fugitive to Sacramento County to Face Charges

    Source: US FBI

    SACRAMENTO—The Federal Bureau of Investigation (FBI) Sacramento Field Office and Sacramento County Sheriff’s Department announced the successful extradition from Mexico of Baltazar Guevara Ortiz, who fled to avoid prosecution in Sacramento County. The agencies worked with the FBI Legal Attaché Office in Mexico City, the U.S. Department of State’s Diplomatic Security Service, U.S. Customs and Border Protection, and the Department of Justice’s Office of International Affairs to secure Ortiz’s arrest and extradition.

    Following an investigation by the Sacramento County Sheriff’s Department Major Crime Unit, the Sacramento County District Attorney’s Office charged Ortiz, a Mexican national, on June 22, 2010, with multiple counts for the alleged sexual assault of a minor. The charges are mere allegations, and all defendants are presumed innocent pending prosecution.

    The FBI obtained a federal arrest warrant for the unlawful flight to avoid prosecution on Nov. 12, 2010, following information indicating that Ortiz left the United States to avoid prosecution in Sacramento County. Ortiz was apprehended by Agencia de Investigación Criminal in Guanajuato, Mexico on March 13, 2024, and was held while extradition was pending.

    Ortiz’s return is funded by the United States Government’s “Project Welcome Home,” which provides funding to assist in the transportation of federal fugitives to the United States.

    The FBI continues to collaborate with its law enforcement partners to apprehend criminals charged with state crimes who flee the jurisdiction. Cases seeking information from the public, including fugitive matters, are posted on the FBI Sacramento Field Office’s Most Wanted web page and FBI Most Wanted application. Anyone with information that may aid these cases may contact their local FBI office, United States embassy, or submit information online at tips.fbi.gov.

    Questions regarding Ortiz’s detention and pending prosecution should be directed to the Sacramento County District Attorney’s Office.

    MIL Security OSI –

  • MIL-OSI Security: Firearms Trafficker Sentenced to 15 Years in Prison for Supplying Weapons and Ammunition to Sinaloa Cartel

    Source: US FBI

    NEWS RELEASE SUMMARY – October 18, 2023

    SAN DIEGO – Alfredo Lomas Navarrete, a prolific firearms trafficker, was sentenced in federal court today to 15 years in custody for his role in supplying hundreds of high-powered weapons and tens of thousands of rounds of ammunition to the Sinaloa Cartel.

    This case is part of a long-running investigation targeting the Valenzuela Transnational Criminal Organization (TCO), which is a significant component of the Sinaloa Cartel. The Valenzuela TCO is one of the largest importers of cocaine into the United States. The TCO sources cocaine and other controlled substances (including fentanyl, heroin, methamphetamine, and marijuana) from South America and Mexico, transports the drugs to multiple locations along the U.S.-Mexico border using commercial trucking companies, smuggles the narcotics into the country, and distributes them throughout the U.S. The TCO then smuggles the bulk cash proceeds from its drug trafficking activities back to the TCO’s leadership in Mexico.

    According to court records, throughout 2020, the Valenzuela TCO, including one of its leaders, Jorge Alberto Valenzuela Valenzuela (“Jorge”), was engaged in violent conflict with another component of the Sinaloa Cartel led by Ivan Archivaldo Guzman-Salazar. During this conflict, Jorge’s brother and previous TCO leader, Gabriel Valenzuela-Valenzuela, was killed. This led the Valenzuela TCO to procure large quantities of firearms, ammunition, tactical gear, armored vehicles, and ballistic vests. A considerable number of these items were sourced from within the United States and clandestinely smuggled into Mexico, using numerous arms trafficking networks.

    During the multi-year investigation, agents identified Alfredo Lomas Navarrete as a major firearms trafficker for the TCO. Agents recovered hundreds of messages between Jorge and Lomas in which they discussed firearms trafficking. Lomas worked closely with Jorge and other high-ranking organization members to supply hundreds of firearms to the TCO. These firearms ranged from .50 caliber rifles, submachine guns, and grenade launchers, to assault rifles (AK-47s, AR-15s, FN SCARs) and handguns. In addition to the weapons, Lomas and his co-conspirators supplied tens of thousands of rounds of ammunition to the TCO. Some of these weapons and ammunition were acquired in the United States, including in California, Arizona, and Nevada, and then smuggled through the Ports of Entry in San Diego and Arizona into Mexico

    To date, this investigation has resulted in the charging of 109 defendants and the seizure of approximately 2,000 kilograms of cocaine and fentanyl, over $16 million in cash, and 21,000 rounds of ammunition.

    Lomas pleaded guilty in April 2023 to conspiring to import cocaine, distribute cocaine, commit money laundering, and to smuggle goods from the United States.

    “The amount of cash, ammunition, and narcotics seized in this case is staggering,” said U.S. Attorney Tara McGrath. “The collaboration in this case sends a clear message that the U.S. Attorney’s Office will attack every facet of drug trafficking organizations from money to drugs to firearms. We will stay after it for as long as it takes to bring them to justice.”

    “The Venezuelan transnational criminal organization has brought death and suffering to countless people through their once prosperous criminal enterprise,” said Chad Plantz, special agent in charge for HSI San Diego. “The sentencing of this firearms trafficker sends a resounding message to traffickers and criminals around the world that HSI and the law enforcement community will vehemently pursue those who seek to harm not only Americans, but humanity as a whole with their brutality and deadly drugs.”

    “Drug cartels use drug proceeds to purchase weapons and ammunition, fueling violence in our communities,” said DEA Special Agent in Charge Shelly Howe.  “DEA and our federal, state, and local partners will continue to hold drug traffickers and the cartels responsible for the carnage and destruction they cause.”

    “The sentencing of Mr. Navarrete is a major milestone in federal law enforcement’s efforts to disrupt and dismantle illegal trafficking operations of all kinds,” said FBI San Diego Special Agent in Charge, Stacey Moy. “We are proud to support our law enforcement partners in all efforts that target and take down crime organizations that threaten the citizens of the United States of America.”

    “Mr. Navarrete’s enablement of violence on both sides of the U.S.-Mexico border is over,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Crime leaves a money trail, and when we pool our resources we are able to find the evidence necessary to lead to conviction. Navarrete is going to prison because of a well-coordinated joint investigation we are proud to have been part of.”

    This case is being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton and Mikaela Weber.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

    DEFENDANT                                               Case Number 21-cr-2960-AGS                              

    Alfredo Lomas Navarrete                                           Age: 33                                   Culiacan, Mexico

    SUMMARY OF CHARGES

    International Conspiracy to Distribute Cocaine for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963.

    Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.

    Conspiracy to Import Cocaine, in violation of Title 21 U.S.C. §§ 952, 960 and 963.

    Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.

    Conspiracy to Distribute Cocaine, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846.

    Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.

    Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. 1956(h).

    Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.

    Conspiracy to Smuggle Goods, in violation of Title 18, U.S.C. §§ 371 and 554(a).

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

    AGENCY

    Homeland Security Investigations

    Drug Enforcement Administration

    Federal Bureau of Investigation

    Internal Revenue Service – Criminal Investigation

    United States Marshals Service

    Customs and Border Protection, Office of Field Operations

    Customs and Border Protection, Office of Border Patrol

    Department of Justice, Organized Crime Drug Enforcement Task Forces

    Department of Justice, Office of Enforcement Operations

    Department of Justice, Office of International Affairs

    San Diego County Sheriff’s Department

    San Diego Police Department

    Border Crime Suppression Team

    San Diego County District Attorney’s Office

    MIL Security OSI –

  • MIL-OSI Security: Imperial Valley Doctor Sentenced for Years-Long Use of Unapproved Cosmetic Drugs

    Source: US FBI

    NEWS RELEASE SUMMARY – October 20, 2023

    SAN DIEGO – Tien Tan Vo, a doctor practicing in Imperial Valley, was sentenced in federal court yesterday for crimes related to his years-long use of foreign unapproved and misbranded cosmetic drugs.  According to his plea and court records, Vo injected as many as 178 patients with unapproved drugs that had been smuggled into the United States from Mexico. 

    Magistrate Judge Allison H. Goddard sentenced Vo to three years of probation and ordered him to pay a $201,534 fine and forfeit the $100,767 in proceeds he made from his use of unlawful cosmetic drugs.  A restitution hearing is set for December 7, 2023, to finalize an order for restitution to potential victims.

    In August, Vo pleaded guilty to two misdemeanor counts: receipt of misbranded drugs in interstate commerce and being an accessory after the fact to Flor Cham, who smuggled the unapproved drugs into the United States from Mexico.  Cham is charged in case number 23-cr-01926-JLS.

    In his plea agreement, Vo admitted that none of the injectable botulinum toxin or lip fillers used by his clinics between November 2016 and October 2020 were approved for use in the United States. This specifically included a botulinum toxin product called “Xeomeen” and an injectable lip filler called Probcel—both products that have not been approved by the U.S. Food and Drug Administration. 

    According to court papers, Vo used these unapproved drugs on approximately 178 patients over about four years.  Many were never told that they received unapproved drugs as part of their treatment. 

    “The public faith in the FDA approval process relies on medical providers adhering to those rules,” said U.S. Attorney Tara McGrath. “By side-stepping the safety and approval protocols of the FDA, Dr. Vo compromised care and put profits before patients. But thanks to the hard work of the agencies and our federal restitution process, those ill-gained profits will be recovered in this case.”

    “Today’s sentencing serves as our promise to use every tool to investigate and hold accountable those who deliberately smuggle and administer products that pose a significant public health threat,” said Chad Plantz, special agent in charge for HSI San Diego. “HSI, together with the U.S. Attorney’s Office will continue to work together to prosecute those individuals who deceive and threaten our communities.”

    “The FDA’s requirements help ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing unapproved drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations, Los Angeles Field Office.  “We will continue to investigate and hold accountable those who traffic in unapproved drugs.”

    A restitution hearing is set for December 7, 2023, at 9:30 a.m. before Judge Allison H. Goddard. 

    Potential victims related to this case may provide or request information by emailing USACAS.Cosmetic.Case@usdoj.gov.  Individuals may submit written statements including information about potential losses or requests for refunds that may be included as part of the restitution ordered on December 7, 2023. 

    DEFENDANT                                               Case Number 23cr1700-AHG                                      

    Tien Tan Vo                                                    Age: 47                                   El Centro, CA

    SUMMARY OF CHARGES

    Accessory After the Fact to Entry of Goods by Means of False Statement – Title 18, U.S.C., Sections 542 and 3

    Maximum penalty: one year in prison, fine of $100,000 or twice the pecuniary gain or loss

    Receipt in Interstate Commerce of Misbranded Drugs and Delivery for Pay or Otherwise – Title 21, U.S.C., Sections 331(c) and 333(a)(1)

    Maximum penalty: one year in prison, fine of $1,000 or twice the pecuniary gain or loss

    AGENCIES

    Homeland Security Investigations

    U.S. Food and Drug Administration, Office of Criminal Investigations

    Federal Bureau of Investigation

    U.S. Department of Health and Human Services, Office of Inspector General

    MIL Security OSI –

  • MIL-OSI Security: Fourteen Defendants Indicted in $5 Million California State Unemployment Fraud Scheme

    Source: US FBI

    NEWS RELEASE SUMMARY – November 16, 2023

    SAN DIEGO – An indictment partially unsealed today charges 14 defendants with fraud and money laundering offenses for a scheme centered around fraudulent unemployment applications submitted to the California Employment Development Department during the pandemic. The indictment alleges the fraud netted the defendants almost $5.2 million in funds from the state of California.

    According to the indictment, David Constantin and Constantin Bobi Sandu, who was arrested and charged separately in March 2023, helped hundreds of applicants apply for EDD benefits using fraudulent documents. Constantin and Sandu recruited potential applicants through Facebook and met applicants at parks throughout Southern California to complete the application process. Applicants paid Constantin or Sandu a partial fee up front for assisting with fraudulent applications and another fee after applicants received EDD payments.

    The indictment alleges that from July 2020 to August 2022, Constantin transmitted more than $128,000 in fraud proceeds to associates in Romania. Another defendant who fraudulently obtained EDD benefits with Constantin’s help, Eduard Buse, transmitted almost $129,000 to Romania in the same period. Buse also purchased a 2020 BMW X6 with over $105,000 in cash fraud proceeds in December 2022 and shipped the vehicle to Romania. Several other defendants also transmitted fraud proceeds to accounts in Romania.

    David Constantin was arrested in Romania at the request of the United States on November 13th by Romanian authorities who also served search warrants and seized, among other things, the BMW with California license plates. The Department of Justice will seek Constantin’s extradition to the United States. Buse and defendants Leonard Miclescu, Constantin Iosif Constantin and Florentina Sima were arrested in California and Texas. Nine other defendants remain at large.

    This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu with assistance from the Department of Justice’s Office of International Affairs, FBI’s Legal Attaché in Bucharest, and Romanian authorities including the Directorate for Combating Organized Crime (DCCO) Service for Countering of Organized Criminal Groups, Brigade for Combating Organized Crime (BCCO) – Pitești, County Service for Countering Organized Crime – Teleorman, Romanian Gendarmerie Battalion, Romanian Ministry of Justice, and Romanian Criminal Investigative Directorate – Fugitive Unit.

    DEFENDANTS                                             Case Number 23CR2090-LAB                                

    David Constantin                                            Age: 27                                   Arges County, Romania

    aka Vlad Alexandru                           

    Eduard Buse                                                    Age: 30                                   Transient, Romanian

    Leonard Miclescu                                           Age: 49                                   Transient, Romanian

    Constantin Iosif Constantin                            Age: 30                                   Transient, Romanian

    Florentina Sima                                              Age: 29                                   Transient, Romanian

    *Additional defendants are not in custody and their names are redacted

    SUMMARY OF CHARGES

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

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

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

    Title 18 U.S.C. § 1956(h) — Conspiracy to Launder Monetary Instruments

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

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

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

    AGENCY

    Federal Bureau of Investigation

    San Diego Police Department Economic Crimes Unit

    IRS Criminal Investigation

    California Employment Development Department Investigative Division

    Department of Labor Office of Inspector General

    U.S. Department of Homeland Security

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

    MIL Security OSI –

  • MIL-OSI Security: California Woman Sentenced in Multi-Million-Dollar Medicare Fraud Scheme

    Source: US FBI

    BOSTON – A California woman was sentenced yesterday for her role in a multi-million-dollar Medicare fraud scheme.

    Stefanie Hirsch, 51, of Los Angeles, Calif., was sentenced by U.S. Senior District Court Judge George A. O’Toole Jr. to three years of probation. Hirsch was also ordered to pay a fine of $2,500. On Feb. 24, 2021, Hirsch pleaded guilty to violating the HIPAA statute.

    Hirsch sold access to a Medicare eligibility tool that allowed Juan C. Perez Buitrago and Nathan LaParl to improperly access patients’ detailed personal, demographic, medical and insurance information. Hirsch owned EI Medical, Inc., a Medicare-enrolled wheelchair and scooter repair company that qualified for access to a health care clearinghouse that contains Medicare patients’ personal, medical and insurance information. Hirsch improperly gave Perez Buitrago and LaParl access to that clearinghouse and charged them about $0.25 per patient eligibility check. Using Hirsch’s credentials, LaParl accessed the personal and medical data of more than 350,000 patients and Perez Buitrago’s credentials were used for 150,000 patients. 

    Perez Buitrago and LaParl pleaded guilty to federal health care crimes in October 2020 and January 2021, respectively.

    Acting United States Attorney Nathaniel R. Mendell; Johnnie Sharp Jr., Special Agent in Charge of the Federal Bureau of Investigation, Birmingham Field Division; Phillip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Boston Division; and Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorney Elysa Q. Wan of Mendell’s Health Care Fraud Unit prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Nineteen-Year-Old Woman Charged for Assaulting TSA Officers

    Source: US FBI

    PHOENIX, Ariz. – Ma’Kiah Cherae Coleman, 19, of Glendale, Arizona, was indicted on May 17, 2023, by a federal grand jury in Phoenix. The six-count indictment included three counts of assault on Transportation Security Administration (TSA) officers and three counts of Interference with Airport Security Screening Personnel. 

    The indictment alleges that, at approximately 6:00 a.m. on April 25, 2023, at Sky Harbor International Airport in Phoenix, Arizona, Coleman interfered with TSA officers who were conducting security screenings at Security Checkpoint D of Terminal 4. The indictment further alleges that during her interference with TSA officers, Coleman inflicted bodily injury on two TSA officers; specifically, she grabbed one officer by the hair, forcing the officer’s head down against a table, and hitting the officer in the head multiple times, and elbowed the other TSA officer in the head. Coleman also is alleged to have bit the hair of a third TSA officer who had come to the aid of the other two officers who were struggling with Coleman during the altercation.

    Each conviction for Assault on a Federal Officer resulting in Bodily Injury carries a maximum penalty of 20 years in prison, a fine of up to $250,000, and up to three years of supervised release. Assault on a Federal Officer with contact and during the commission of another felony carries a maximum penalty of eight years in prison, a fine of up to $250,000, and up to three years of supervised release. Each conviction for Interference with Airport Security Screening Personnel carries a maximum penalty of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release.

    An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. Coleman has been released from detention on personal recognizance with conditions pending trial.

    The Federal Bureau of Investigation investigated this case with assistance from the Phoenix Police Department. Assistant United States Attorney Glenn McCormick, U.S. Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.

    CASE NUMBER:           23-00780-PHX-DLR
    RELEASE NUMBER:    2023-080_M. Coleman

    # # #

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

    2023-080_M. Coleman

    MIL Security OSI –

  • MIL-OSI Security: Former Youth Pastor Pleads Guilty to Transporting Minors for Sexual Activity

    Source: US FBI

          LITTLE ROCK – A former Little Rock youth pastor pleaded guilty today to transporting minors across state lines for the purpose of unlawful sexual activity. Robert Shiflet, 50, now of Denton, Texas, entered his guilty plea earlier today before United States District Judge Lee P. Rudofsky. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, announced today’s guilty plea

          Shiflet pleaded guilty to two separate instances of criminal conduct. One of these accounts began in 1996, when Shiflet met a 14-year-old girl in the youth group he pastored in Denton, Texas. Shiflet frequently made inappropriate comments to the minor and often told her he loved her. In May of 1997, when the minor was 15 years old, Shiflet led an eighth grade camping trip to the Buffalo National River in Arkansas. Shiflet was able to isolate the minor away from the group and then sexually assaulted her. He told her not to tell anyone.

          Another minor reported that in 2002, when Shiflet was her youth pastor at a Little Rock church, Shiflet engaged in inappropriate sexual contact with her when she was 16 years old. Shiflet had sex with the minor multiple times during 2002-2003, when Shiflet was 32. In the summer of 2002, the youth group attended an event in Panama City, Florida. On that trip, Shiflet asked the minor to ride on the charter bus with him instead of riding on another bus with her friends. On the bus ride, he sexually assaulted the minor.

          “This defendant took advantage of his position of trust as a mentor to young people and instead used his power to isolate and sexually abuse them,” stated U.S. Attorney Hiland. “This predatory behavior is never acceptable, but it is particularly disturbing when the offender is a youth pastor. Our office will continue to aggressively pursue those who commit these deplorable crimes.”

          Shiflet was indicted in June 2020 with three counts of transportation of a minor to engage in illegal sexual activity and one count of coercion of a minor to engage in sexual activity. In exchange for his guilty plea, the remaining charges were dismissed.

          Judge Rudofsky will sentence Shiflet at a later date. Transportation of a minor to engage in illegal sexual activity is punishable by not more than 15 years imprisonment and not more than three years of supervised release. The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kristin Bryant.

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Arizona Adoption Attorney Sentenced to Over Six Years in Prison for Alien Smuggling for Financial Gain

    Source: US FBI

    Fayetteville, Arkansas – First Assistant United States Attorney David Clay Fowlkes for the Western District of Arkansas, Special Agent in Charge Diane Upchurch of the FBI Little Rock Field Office, Special Agent in Charge Peter Kapoukakis of the U.S. Department of State’s Diplomatic Security Service, Miami Field Office and Arkansas Attorney General Leslie Rutledge announced that Paul Petersen, age 45, of Mesa, Arizona was sentenced today to 72 months in federal prison, followed by three years of supervised release and ordered to pay a fine and court costs totaling $105,100.00 for Conspiracy to Smuggle Illegal Aliens for Commercial Advantage and Private Financial Gain. The Honorable Timothy L. Brooks presided over the sentencing in the U.S. District Court in Fayetteville.

    “The defendant in this case violated the laws of three states and two countries during the course of his criminal scheme,” stated First Assistant United States Attorney Fowlkes.”  He exploited a legal loophole and used it to run an International adoption business outside the necessary oversight from the United States or the Republic of the Marshall Islands.  During the scheme, the defendant lied to state court judges, falsified records, encouraged others to lie during court proceedings, and manipulated birth mothers into consenting to adoptions they did not fully understand.  This unique case merited the strong sentence ordered by the Court today.  It is our sincere hope that this sentence sends a message to those who would seek to conduct human trafficking operations in the Western District of Arkansas, and to those who would seek to manipulate and take advantage of people like the Marshallese citizens in this case.”

    According to the Plea Agreement filed in this case, the FBI, the DSS and local law enforcement, have been actively investigating the criminal activities of Paul Petersen, 44, of Mesa, Arizona, for several years. During the course of the investigation, law enforcement determined that the defendant, Paul Petersen, among other things, orchestrated the travel of several pregnant women from the Republic of the Marshall Islands to the Western District of Arkansas.  The purpose of this travel was for Petersen to arrange adoption of their children by families living in the United States. 

    The Republic of the Marshall Islands (RMI) is an island country near the equator in the Pacific Ocean, slightly west of the International Date Line.  In 1983, the United States entered into a Compact of Free Association (hereinafter, the “Compact”) with the RMI government.  The United States and the RMI signed an Amended Compact in 2003, which Congress codified at Public Law 108-188.  Section 141 of the Compact grants RMI citizens the ability to freely enter and take up employment within the United States.  Section 141(b) prohibits RMI citizens from entering the United States under the Compact agreement if their travel is for the purpose of adoption.

    According to the Plea Agreement, the Defendant, Paul Petersen, is a licensed attorney who practices law in Arizona, Utah, and Arkansas.  During the course of the investigation, FBI and DSS agents discovered that Petersen used credit card accounts that he controlled to purchase airline tickets for several women, all citizens of the RMI who did not have official authorization to enter or reside in the United States, to travel from the RMI to the Western District of Arkansas.  This travel arranged and funded by Petersen was in violation of the Immigration and Nationality Act because the women were all citizens of the RMI and were not eligible for admission into the United States under the terms of the Compact.  According to State of Arkansas Circuit Court records, the families who adopted these children paid Petersen significant sums of money for him to act as a legal facilitator of the adoptions.  Finally, also according to the Plea Agreement, witness interviews conducted by the agents investigating Petersen revealed that it was part of the conspiracy that Petersen’s co-conspirators offered the women $10,000 to induce them to travel to the United States and consent to the adoptions.

     A federal grand jury indicted Petersen in October 2019, and he entered a guilty plea in June 2020.

    The FBI and the DSS conducted the investigation. First Assistant United States Attorney David Clay Fowlkes, Deputy Criminal Chief Kim Harris, and Assistant United States Attorney Sydney Butler are prosecuting the case. The Justice Department’s Office of International Affairs of the Department’s Criminal Division also assisted in the investigation.

    MIL Security OSI –

  • MIL-OSI Security: Former Craighead County Clerk Federally Indicted

    Source: US FBI

          LITTLE ROCK – A federal grand jury has indicted former Craighead County Clerk Jacob Kade Holliday for allegedly taking more than $1.4 million in county money for his personal use. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced the indictment of Holliday, 32, of Jonesboro.

          The indictment, which was returned by the grand jury late on December 1, 2020, alleges that Holliday, as the elected County Clerk in Craighead County, served as the official bookkeeper of county government. In that capacity, Holliday was tasked with keeping an accurate account of all financial transactions within the county. The funds Holliday controlled included county payroll tax obligations as well as employment retirement contributions.

          According to the indictment, from January 29, 2020, to June 24, 2020, Holliday transferred money from the Craighead County Clerk’s banking account to his own personal and business accounts. He then allegedly obtained cashier’s checks in approximately the same amounts and further converted them to his own use.

          “We take all allegations of undermining public trust very seriously,” stated U.S. Attorney Hiland. “In this case and in all potential cases, any reports of public corruption will be thoroughly investigated by our office with the help of our law enforcement partners.”

          “Without the diligent efforts of our partners at the Arkansas State Police, Mr. Holliday’s alleged theft of over $1.4 million from the citizens of Craighead County would not have been uncovered,” said FBI Special Agent in Charge Upchurch. “Every day, we work closely with our state partners to protect Arkansans from crimes like the ones alleged in this case.”

          Holliday is charged with 11 counts of wire fraud; one for each of the 11 transactions he made during the time alleged in the indictment. Holliday will appear before United States Magistrate Judge Joe J. Volpe for plea and arraignment on December 17, 2020. The maximum penalty for wire fraud is not more than 20 years’ imprisonment, a fine of not more than $250,000, and not more than three years of supervised release.

          The FBI and the Arkansas State Police conducted the investigation. Assistant United States Attorney Allison W. Bragg is prosecuting the case.

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

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Texas Man Sentenced to Nine Months in Federal Prison for Operating Website That Offered Computer Attack Services

    Source: US FBI

    LOS ANGELES – A Texas man was sentenced today to 9 months in federal prison for running a website that allowed paying users to launch powerful distributed denial of service – or DDoS – attacks that flooded tens of thousands of targeted computers with information and prevented them from being able to access the internet.

    Scott Raul Esparza, 24, of Katy, Texas, was sentenced by United States District Judge Michael W. Fitzgerald who also ordered two years of supervised release with conditions including a full computer monitoring program after serving his prison sentence.

    Esparza pleaded guilty on March 6 to one count of conspiracy to commit unauthorized impairment of a protected computer and one count of unauthorized impairment of a protected computer.

    From 2019 to September 2022, Esparza operated and co-administrated with Shamar Shattock, 21, of Margate, Florida, a DDoS-for-hire service called “Astrostress.com.” The term “DDoS” refers to a type of computer attack in which multiple computers attempt to make connections through the Internet to a targeted computer at the same time. The amount of internet traffic generated by such an attack quickly overwhelms the capacity of the victim computer, resulting in the victim computer being unable to send, receive or respond to commands.

    Astrostress.com was a type of DDoS-for-hire service known as a “booter” service, referring to its ability to “boot” victims off the internet. Customers of Astrostress.com were offered various levels of subscriptions – depending on how many attacks they wanted to conduct and with what power – and were charged accordingly. This site thus enabled co-conspirators worldwide to set up accounts on Astrostress.com and then use the Astrostress.com resources to direct attacks at internet-connected computers around the globe.

    Esparza was responsible for procuring the attack servers and maintaining the attack functionality of Astrostress.com. Esparza also helped Shattock market the service, and he hired a co-conspirator to assist with responding to support requests from customers of the service.

    Esparza neither owned nor had the rights to use the third-party computers he exploited to generate the amplified attack power made available via the Astrostress.com website. He was aware that his customers were using the site to attack computers that did not belong to the customers, and which the customers had no authorization to impair. Esparza personally conducted thousands of attacks using his own service.

    From September 2021 to September 2022, while Esparza administered the website, customers used Astrostress.com to attack tens of thousands of protected computers. As a result, they impaired or attempted to impair the availability of the victim computers by knocking them offline.

    In or around September 2022, shortly after the FBI caused Astrostress.com to shut down, Esparza called Shattock and left him a voicemail message in which he instructed Shattock to “clear” all his social media accounts “so nothing gets linked back to us.”

    Shattock pleaded guilty in March 2023 to one felony conspiracy count and faces up to five years in federal prison at his sentencing hearing, which is expected to occur in the coming months.

    The FBI investigated this matter as part of Operation PowerOFF, a multi-national effort to combat DDoS-for-hire services.

    Assistant United States Attorneys Cameron L. Schroeder, Chief of the National Security Division, and Aaron B. Frumkin of the Cyber and Intellectual Property Crimes Section prosecuted this case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling the seizure of the Astrostress domain.

    MIL Security OSI –

  • MIL-OSI Security: CEO of “Smart Ring” Wearable Tech Company Arrested on Securities Fraud Charges

    Source: US FBI

    LOS ANGELES – A Boca Raton woman was arrested today on charges alleging she lied to investors to obtain over $2 million for her company ESOS Rings, Inc., which she then used for personal expenses and Ponzi payments to keep the scheme going. 

    Michelle Bisnoff, also known as “Michelle Angeline Silverstein” and “Shelly Silverstein,” 57, previously of Pacific Palisades and Santa Barbara and currently living in Boca Raton, Florida, is charged in a criminal complaint with one count of securities fraud and one count of wire fraud.  Bisnoff was released on bond and ordered to appear for further proceedings in United States District Court in downtown Los Angeles on August 7.

    According to the affidavit in support of the criminal complaint, Bisnoff is the founder and CEO of ESOS.  Allegedly, from 2017 through the end of 2023, Bisnoff fraudulently solicited investments in ESOS by falsely representing ESOS’s business activities and profitability, and the returns that the investors would receive on their investments. Bisnoff allegedly told prospective investors that ESOS owned patents for “smart rings,” a wearable device encoded with financial information, which could be used to make contactless payments. Bisnoff allegedly said ESOS earned transaction fees each time a ring was used, generating profits for ESOS.  Bisnoff also allegedly told prospective investors that ESOS was already manufacturing and selling these smart rings, and that ESOS would soon be bought by Apple or another suitor, resulting in a buy back of the investors’ shares at prices significantly above the share price she was offering to the investors. 

    According to the affidavit, neither Bisnoff nor ESOS owned the patents at issue; the majority of investor funds raised were used to allegedly make Ponzi payments to earlier investors and to benefit Bisnoff personally; the prospective acquirors of ESOS had no knowledge of ESOS and/or no plan to provide capital for it; and ESOS had virtually no business operations, let alone profits.

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

    If convicted of both charges, Bisnoff faces a statutory maximum sentence of 40 years. 

    The U.S. Securities and Exchange Commission sued Bisnoff and ESOS for allegedly fraudulently raising $1.95 million from ESOS investors.  On September 19, 2023, United States District Judge Consuelo B. Marshall imposed a judgment finding Bisnoff and ESOS jointly and severally liable for disgorgement of $566,483, representing net profits from the fraud, as well as $46,836 in pre-judgment interest and a civil penalty of $223,229, with the total amount due—$836,548—to be paid to the SEC within 30 days.  According to the affidavit, to date neither Bisnoff nor ESOS has paid any of the amounts due.

    The Federal Bureau of Investigation is investigating this matter.  Substantial assistance was provided by the SEC and the United States Attorney’s Office, Southern District of Florida

    Assistant United States Attorney Ranee A. Katzenstein of the Criminal Appeals Section is prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Los Angeles Duo Found Guilty for 10-Day Liquor Store Robbery Spree Ending in Police Chase, Car Crash and Foot Pursuit

    Source: US FBI

    LOS ANGELES – Two Los Angeles men have been found guilty today for committing a string of robberies in a 10-day span that ended in the duo leading law enforcement in a chase in Los Angeles County before crashing a stolen car into a tree then running across six lanes of highway traffic during rush hour.

    At the conclusion of a three-day trial, a jury convicted the two defendants with Hobbs Act robbery. They will be sentenced by United States District Judge Hernán D. Vera on October 24:

    Anthony Flores, a.k.a. “BabyGfar”, 28, of Los Angeles; and

    Ivin Kitu Sanford, 32, of Los Angeles.

    According to court documents, beginning in May 2023, the defendants conspired to rob and robbed two BevMo stores, stealing high-end liquor stored behind security glass and, in some instances, threatened employees with violence. Flores and Sanford would then sell the liquor to individuals on Instagram. The incidents involved the following locations:

    • Long Beach: Flores stole approximately $2,604 worth of liquor.
    • Lakewood: Flores stole approximately $800 worth of liquor. Additionally, Hardgraves allegedly threatened to shoot a store employee if he attempted to interfere with the robbery.

    Furthermore, Flores and Sanford conspired to rob two additional BevMo stores located in Pasadena and West Covina.

    After the robberies, Flores was surveilled and seen selling the bottles. Flores was arrested and released. On June 5, 2023, the two defendants again attempted to rob the Canyon Country BevMo store. Flores and Sanford physically subdued a store victim-employee and attempted to steal high-end bottles of liquor. The defendants fled in a stolen silver Dodge Charger with a stolen license plate and attempted to evade officers during a traffic stop. Flores and Sanford led law enforcement on a chase through Los Angeles County before crashing into a tree. After the crash, defendants ran on foot across the California State Route 14, a 65-mile-per-hour highway, during rush hour traffic. Flores and Sanford were later found in bushes in a desolate area.

    “Callous disregard for the law undermines our community’s sense of safety,” said United States Attorney Martin Estrada. “These defendants’ violent robberies and attempts to evade officers put lives at risk.  Our Operation Safe Cities initiative aims to ensure that violent crimes are met with serious consequences, and today’s convictions demonstrate our steadfast commitment to that goal.”

    Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.

    The case against the third defendant, Jabco Hardgraves, a.k.a. “Jacob Hardgraves,” Baby Monster,” “Lil Turtle”, 27, of Los Angeles is still pending and is not currently set for trial.

    The Federal Bureau of Investigation, Los Angeles County Sheriff’s Department, West Covina Police Department, and Long Beach Police Department investigated this matter.

    Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section prosecuted this case.

    MIL Security OSI –

  • MIL-OSI Security: Imperial County Dentist and Former Office Manager Plead Guilty in Multimillion-Dollar Medicare Fraud

    Source: US FBI

    SAN DIEGO – Dr. Javad Aghaloo, an Imperial County dentist, and Theresa Flores, his office manager, pleaded guilty in federal court yesterday, admitting that they conspired to defraud Medicare and cover it up. 

    Aghaloo entered a guilty plea to conspiring to commit health care fraud by billing Medicare for procedures that were not covered, not performed, or otherwise not necessary. As part of his plea, Aghaloo agreed to forfeit more than $1 million in property and pay restitution to Medicare in the amount of $8,476,466.23.  Flores entered a guilty plea to obstructing a Medicare audit.

    According to court records, Aghaloo and others recruited Medicare beneficiaries to get dental work done at one of Aghaloo’s offices. To recruit Medicare patients, Aghaloo and Flores marketed dental services to individuals in Imperial County as being covered by Medicare. Aghaloo and Flores knew this was untrue since Medicare does not cover dental services.

    Once a Medicare beneficiary was in one of Aghaloo’s offices, Aghaloo and others performed some type of procedure (usually a tooth extraction) and submitted false claims to Medicare using the person’s Medicare beneficiary number. Since tooth extractions are not covered by Medicare, Aghaloo’s offices instead submitted false claims for procedures like bone grafts that were never performed. 

    Between March 1, 2016, and October 18, 2018, Aghaloo and Flores caused Aghaloo’s dental offices to submit over 7,000 false claims to Medicare, totaling over $18 million for which Aghaloo’s offices were paid $8,476,466.23 by Medicare. 

    To conceal the fraud, between April of 2017 and October of 2018, Flores and Rosas caused false documents to be submitted to Noridian Healthcare Solutions, LLC. (“NHS”), a Federal auditor for the Medicare program.

    Sentencing is set for January 12, 2024, at 9:00 a.m. before U.S. District Judge Jinsook Ohta.

    This case is being prosecuted by Assistant U.S. Attorney Christopher Alexander. 

    DEFENDANT                                               Case Number 23cr0616-JO                                     

    Javad Aghaloo                                                Age: 50                                   San Diego, CA

    Theresa Flores                                                 Age: 45                                   San Diego, CA

    SUMMARY OF CHARGES

    Conspiracy to Commit Health Care Fraud, a felony, in violation of Title 18, United States Code, Section 371.

    Maximum Penalty:  Five years in prison and a fine of $250,000. 

    Obstructing a Federal Audit, a felony, in violation of Title 18, United States Code, Section 1516.

    Maximum Penalty:  Five years in prison and a fine of $250,000. 

    AGENCIES

    Federal Bureau of Investigation.

    U.S. Department of Health and Human Services, Office of Inspector General.

    MIL Security OSI –

  • MIL-OSI Security: Second Executive Admits Participating in $150 Million Fraud on Qualcomm

    Source: US FBI

    NEWS RELEASE SUMMARY – October 5, 2023

    SAN DIEGO – Ali Akbar Shokouhi, the primary investor of a technology company sold to Qualcomm for over $150 million, pleaded guilty in federal court today, admitting his role in a massive fraud.

    Shokouhi, a San Diego resident, pleaded guilty to one count of money laundering related to a transaction involving proceeds of the fraud on Qualcomm. In his plea agreement, Shokouhi admitted that he schemed with co-defendant Karim Arabi and others to hide both Arabi’s and Shokouhi’s involvement in Abreezio—the tech firm that they marketed to Qualcomm. 

    Arabi was a Qualcomm employee throughout the entire marketing period, and hiding his involvement in the firm and the development of its patented technology allowed Abreezio’s principals to claim that the company was an “angel-funded” outside firm while disguising its true connections to Qualcomm.  In that regard, Shokouhi admitted Arabi was intimately involved in Abreezio’s formation, development, and marketing to Qualcomm, including choosing the “Abreezio” name.  Shokouhi further admitted that he referred to Arabi by a different name in text messages with co-conspirators to obscure Arabi’s involvement in Abreezio.  According to court documents, Qualcomm agreed to pay roughly $180 million for Abreezio—$150 million of which was paid in October 2015. 

    Like co-defendant Sanjiv Taneja, who recently pleaded guilty and admitted his own role in the fraud, Shokouhi acknowledged that he never actually met the purported creator of Abreezio’s core technologies, who is Arabi’s family member and was never involved in the company’s technical or strategic decision-making as far as Shokouhi knew.

    Shokouhi further admitted that he and Arabi concealed Shokouhi’s involvement in Abreezio in part because Shokouhi had previously been terminated from Qualcomm because of a conflict-of-interest violation.  As part of his plea agreement, Shokouhi agreed to forfeit over $16 million that he personally received from Qualcomm’s purchase of Abreezio, and to pay restitution.

    This case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak, Janaki G. Chopra and Eric R. Olah.

    DEFENDANTS                                 Case Number 22-CR-1152-BAS                                       

    Karim Arabi                                        Age: 57                                   San Diego, CA

    Sanjiv Taneja                                      Age: 60                                   Cupertino, CA

    Ali Akbar Shokouhi                            Age: 64                                   San Diego, CA

    AGENCIES

    Federal Bureau of Investigation

    Internal Revenue Services, Criminal Investigation

    United States Marshals Service

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

    MIL Security OSI –

  • MIL-OSI Security: Former U.S. Navy Service Member Sentenced for $2 Million Insurance Fraud Scheme

    Source: US FBI

    NEWS RELEASE SUMMARY – October 17, 2023

    SAN DIEGO – Christopher Toups, who at the time of his crimes was a chief petty officer in the U.S. Navy, was sentenced in federal court to 30 months in prison after admitting that he and others defrauded an insurance program meant to compensate service members who suffer serious and debilitating injuries while on active duty.

    Toups’ sentence followed his guilty plea to conspiracy to commit wire fraud. According to his plea agreement, participants in the scheme obtained approximately $2 million in payments from fraudulent claims submitted to Traumatic Servicemembers Group Life Insurance Program, or TSGLI, and Toups personally obtained about $400,000. TSGLI was funded by service members and the Department of the Navy.

    Toups admitted that from 2012 to at least December 2015, he conspired with his then-spouse Kelene McGrath, Navy Dr. Michael Villarroel, and others to obtain money from the United States by making claims for life insurance payments based on exaggerated or fake injuries and disabilities.

    “Lying and stealing funds meant for injured service members is appalling,” said U.S. Attorney Tara McGrath. “The United States Attorney’s Office is committed to protecting those who serve, and this case is an excellent example of law enforcement collaboration to do just that.”

    “Fraudulently filing claims for unearned benefits diverts compensation from deserving service members who suffered serious and debilitating injuries while on active duty,” said Special Agent in Charge Rebeccalynn Staples with the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “This sentence holds the defendant accountable for his egregious actions, and the VA OIG will continue to work tirelessly with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”

    “Mr. Toups participated in a fraud scheme that defrauded the American taxpayer and diverted vital money, care, and resources from service members recovering from traumatic injuries,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This sentence demonstrates the commitment of NCIS and its partners to combatting fraud that harms the Department of the Navy and its warfighters.”

    “Stealing from a program set in place to aid injured and disabled servicemembers diverts compensation from deserving individuals,” said FBI San Diego Special Agent in Charge Stacey Moy. “Willingly defrauding the American people, especially those who protect our country, will not be tolerated. The FBI will continue to collaborate with our law enforcement partners to ensure those who commit such acts are held accountable.”

    According to the plea agreement, in addition to submitting his own TSGLI claims based on fake injuries and disabilities, Toups encouraged numerous current or former Navy service members to submit claims and sometimes told them to provide medical records to McGrath. McGrath, a nurse, falsified or doctored medical records to exaggerate or fake injuries. Villarroel certified that he reviewed the records and determined activities of daily living were lost or impaired and consistent with the claimed injuries as required for claims to be processed and qualify, at times supporting the determination by falsely stating he interviewed the claimant. Villarroel also, at times, provided others’ medical records for McGrath to use in fabricating claims.

    Toups admitted that he encouraged recipients of claim payments to give him part of the money, sometimes characterizing it as a “processing fee.” McGrath and Villarroel received part of the kickback depending on their involvement in the claim. Toups paid Villarroel in cash and by cashier’s check. At times, Toups and others conducted financial transactions in amounts under $10,000 to evade perceived financial reporting requirements.

    According to court records, Toups and his co-defendants were part of the Explosive Ordinance Disposal Expeditionary Support Unit One (“EOD ESU One”), based in Coronado, California. Toups was a Chief Petty Officer Construction Mechanic.

    DEFENDANT           18CR1674-JLS

    Christopher Toups      46        White, GA

    RELATED CASES

    Kelene Meyer                         18CR1674-JLS                       Jacksonville, FL

    Dr. Michael Villarroel            18CR1674-JLS                       Coronado, CA

    Paul Craig                               18CR1674-JLS                       Austin, TX

    Richard Cote                           18CR1674-JLS                       Oceanside, CA

    Earnest Thompson                  18CR1674-JLS                       Murrieta, CA

    Ronald Olmsted                      20CR0659-JLS                       Mobile, AL

    Anthony Coco                         20CR0197-JLS                       San Diego, CA

    Stephen Mulholland               20CR0052-JLS                       Panama City Beach, FL

    SUMMARY OF CHARGES

    Toups:

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

    Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

    Others:

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

    Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

    18 U.S.C. § 1343, Wire Fraud

    Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

    18 U.S.C. § 287, Making a False Claim

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

    AGENCIES

    Federal Bureau of Investigation

    Naval Criminal Investigative Service

    Department of Veterans Affairs – Office of Inspector General

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

    MIL Security OSI –

  • MIL-OSI Security: Justice Department Announces Results of Operation Restore Justice: 205 Child Sex Abuse Offenders Arrested in FBI-Led Nationwide Crackdown, Including One in the District of South Dakota

    Source: US FBI

    SIOUX FALLS – Today, the Department of Justice announced the results of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators. The operation resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders in the nationwide crackdown. The coordinated effort was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.
     
    “The Department of Justice will never stop fighting to protect victims — especially child victims — and we will not rest until we hunt down, arrest, and prosecute every child predator who preys on the most vulnerable among us,” said Attorney General Pamela Bondi. “I am grateful to the FBI and their state and local partners for their incredible work in Operation Restore Justice and have directed my prosecutors not to negotiate.”

    “Every child deserves to grow up free from fear and exploitation, and the FBI will continue to be relentless in our pursuit of those who exploit the most vulnerable among us,” said FBI Director Kash Patel. “Operation Restore Justice proves that no predator is out of reach and no child will be forgotten. By leveraging the strength of all our field offices and our federal, state and local partners, we’re sending a clear message: there is no place to hide for those who prey on children.”

    Those arrested around the country are alleged to have committed various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. In South Dakota, the FBI received a Cybertip through NCMEC that Brandon Rouillard, age 31, of Evergreen, South Dakota, had engaged in sexual conversations with a local 14-year-old girl over Facebook. The FBI investigated the Cybertip and learned Rouillard requested that the 14-year-old send him sexual videos and images constituting child sexual abuse material. Rouillard received and saved the child sexual abuse material to his Facebook account. Rouillard also discussed meeting the 14-year-old for a sexual encounter. Rouillard was arrested on a criminal complaint on May 1, 2025, and his initial appearance was held before a federal magistrate judge on May 2, 2025. He was detained pending a preliminary hearing scheduled for May 9, 2025.

    “The U.S. Attorney’s Office in the District of South Dakota routinely partners with federal, state, local, and tribal law enforcement to hold accountable those who seek to sexually exploit children through social media applications and gaming platforms,” said U.S. Attorney Alison J. Ramsdell. “Whether part of a nationwide effort, a local operation, or an individual investigation, our office does not shy away from aggressively prosecuting those who use the Internet to take advantage of vulnerable youth in our communities.”

    “Protecting children from exploitation is one of the FBI’s highest priorities,” said Special Agent in Charge, Alvin M. Winston Sr., of FBI Minneapolis. “Operation Restore Justice underscores the strength of our partnerships and our shared determination to bring child predators to justice. Those who exploit children should know there is no hiding place – we will find you and bring you to justice.”

    In many cases, parental vigilance and community outreach efforts played a critical role in bringing these offenders to justice. It is of vital importance that parents and guardians talk frequently and openly with children about responsible Internet use. It is also essential that the community understands the warning signs of cyberbullying and sextortion, including:

    1. Sudden changes in behavior, such as becoming withdrawn, anxious, or secretive;
    2. Abruptly deleting social media accounts or frequently creating new accounts;
    3. Turning off or hiding devices in the presence of a parent or other adult;
    4. Clearing their web browser cache and/or history;
    5. Unexplained money or gift cards; and
    6. Spending less time with friends.

    This effort follows the Department’s observance of National Child Abuse Prevention Month in April and underscores the Department’s unwavering commitment to protecting children, seeking justice for victims, and raising awareness through community education. These types of cases are brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.

    The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.

    The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI’s tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.

    Other online resources:

    Electronic Press Kit

    Violent Crimes Against Children

    How we can help you: Parents and caregivers protecting your kids

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

    MIL Security OSI –

  • MIL-OSI Security: Pine Ridge Man Sentenced to 20 Years in Federal Prison for Conspiring to Distribute Methamphetamine Within the Pine Ridge Reservation and in Rapid City

    Source: US FBI

    RAPID CITY – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on May 6, 2025.

    Phil Pond, age 42, was sentenced to 20 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

    A federal grand jury indicted Pond in January 2024. He pleaded guilty on July 29, 2024.

    From 2022 to 2024, Pond and others conspired to distribute at least 500 grams of methamphetamine in South Dakota. Some of the co-conspirators traveled to the Denver area, and/or acquired the methamphetamine locally from Pine Ridge and Rapid City. Pond knew some of this methamphetamine he was selling would be further distributed. Evidence presented at Pond’s sentencing established that he acted as the enforcer and used intimidation, force, and threats of violence against others to acquire money to satisfy their drug debts. Pond was a leader and organizer of the conspiracy and also provided methamphetamine to a person under the age of 21.

    This case was investigated by the FBI and the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Megan Poppen and Anna Lindrooth prosecuted the case.

    Pond was immediately remanded to the custody of the U.S. Marshals Service.

    MIL Security OSI –

  • MIL-OSI Security: Four Pierre Residents Sentenced to Substantial Terms in Federal Prison for Conspiracy to Distribute a Controlled Substance

    Source: US FBI

    PIERRE – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced four Pierre, South Dakota, residents convicted of Conspiracy to Distribute a Controlled Substance. The sentencings took place on May 5, 2025.

    Whitney Marrowbone, age 30, was sentenced to 11 years in federal prison, followed by five years of supervised release.

    Wendy Mealer, age 49, was sentenced to six years in federal prison, followed by three years of supervised release.

    Brent Larvie, age 36, was sentenced to four years and six months in federal prison, followed by three of supervised release.

    David Rinehart, age 33, was sentenced to two years in federal prison, followed by three years of supervised release.

    All four defendants were each also ordered to pay a $1,000 fine and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

    These convictions stemmed from a drug distribution conspiracy beginning in June 2023 and continuing until September 2024.  Marrowbone, Mealer, Larvie, and Rinehart were involved in an extensive conspiracy with several other individuals to distribute methamphetamine in and around Pierre and surrounding areas. The four co-defendants received significant quantities of methamphetamine from two other co-defendants, Heather and Misty Stahlhoefer, and then further distributed it. During the course of the investigation law enforcement recovered over 550 grams of pure methamphetamine.

    Heather Stahlhoefer is scheduled to be sentenced May 14, 2025, and Misty Stahlhoefer is scheduled to be sentenced July 14, 2025.

    This case was investigated by the FBI North Plains Safe Trails Drug Enforcement Task Force, the Pierre Police Department, the Chamberlain Police Department, and the Lyman County Sheriff’s Office.  This case was prosecuted by Assistant United States Attorney Meghan Dilges.

    Marrowbone, Rinehart, Mealer, and Larvie were immediately remanded to the custody of the U.S. Marshals Service.

    MIL Security OSI –

  • MIL-OSI Security: Second Former Memphis Police Officer Pleads Guilty to Federal Civil Rights and Conspiracy Charges Tied to Death of Tyre Nichols

    Source: US FBI

    Memphis, TN – A former Memphis, Tennessee, Police Department (MPD) officer facing federal civil rights charges for the tragic killing of Tyre Nichols pleaded guilty in federal court today.

    Emmitt Martin III, pleaded guilty to civil rights and conspiracy charges arising out of the Jan. 7, 2023, incident. Martin is the second MPD officer to plead guilty in this case.

    On Sept. 12, 2023, a federal jury returned a four-count indictment against Martin and four co-defendants. The charges included using excessive force resulting in the death of Nichols; aiding and abetting each other in using that excessive force; failing to intervene to stop the excessive force; failing to render medical aid; and conspiring or taking action to cover up their misconduct. On Nov. 2, 2023, co-defendant Desmond Mills entered a guilty plea to civil rights and conspiracy charges.

    The remaining three defendants will face a federal trial scheduled for Sept. 9.

    In today’s court appearance, Martin pleaded guilty to counts one and three of the indictment. Count one charged Martin with using excessive force and failing to intervene in the unlawful assault. Count three charged Martin with conspiring to cover up his use of unlawful force by omitting material information and by providing false and misleading information to his supervisor and to others. A sentencing hearing is scheduled for Dec. 5. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors. 

    Attorney General Merrick B. Garland, FBI Director Christopher Wray, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Kevin Ritz for the Western District of Tennessee, and Special Agent in Charge Joseph E. Carrico of the FBI Memphis Field Office made the announcement.

    The FBI Memphis Field Office investigated this case. 

    Assistant U.S. Attorneys David Pritchard and Elizabeth Rogers for the Western District of Tennessee and Special Litigation Counsel Kathryn E. Gilbert, Trial Attorney Andrew Manns and Deputy Chief Forrest Christian of the Justice Department’s Civil Rights Division are prosecuting the case. 

    ###

    Topic

    CIVIL RIGHTS

    Components

    Civil Rights Division 

    Civil Rights – Criminal Section 

    Federal Bureau of Investigation (FBI) 

    USAO – Tennessee, Western

    Press Release Number: 24-1049

    MIL Security OSI –

  • MIL-OSI Security: United States Attorney Ritz Announces 10 Federal Indictments for Firearm and Violent Crimes

    Source: US FBI

    Memphis, TN – United States Attorney Kevin G. Ritz announced today the indictments of ten individuals who were charged with federal gun and violent crime offenses in West Tennessee.  United States Attorney Ritz also reinforced his office’s commitment to federal prosecution of individuals who commit violent crimes, illegally possess machine-gun conversion devices (also known as “switches”), or commit other federal firearm offenses. 

    “As alleged, these individuals have committed serious federal crimes involving firearms or violent activity,” said United States Attorney Ritz.  “Our office will continue to work with the Project Safe Neighborhoods Task Force and other law enforcement partners to reduce violent crime in our community.  The citizens of Memphis and Shelby County deserve to feel safe.” 

    The following defendants were charged with federal crimes involving switches: 

    • Wayne Sanders, 31. Sanders was charged in June 2024 with being a felon in possession of firearms and possessing a machine gun on February 24, 2024.  A superseding indictment returned on August 29, 2024, charged Sanders with four additional counts related to his arrest by officers in April 2024:
      • Possession of a machine gun;
      • Being a felon in possession of a firearm;
      • Assault of a Task Force Officer with the U.S. Marshals Service; and
      • Brandishing a firearm during and in relation to the assault on a federal officer. 
    • Myles Bowens, 22. Bowens was indicted on August 29, 2024, for being a felon in possession of a firearm and possessing a gun with an attached machine-gun conversion device. 
    • Taveon Earnest, 20. Earnest was indicted on August 29, 2024, for possessing a gun with an attached machine-gun conversion device. 
    • Actavious Ellis, 30. Ellis was indicted on August 29, 2024, for possessing a gun with an attached machine-gun conversion device. 

    The following defendants were charged with other firearm or violent crime offenses: 

    • Nathenael Tekle, 23. Tekle was indicted on August 29, 2024, for four separate armed business robberies in Memphis, committed over a 10-day span in October and November 2023.  He is charged with four counts of robbery of a business affecting interstate commerce and four counts of brandishing a firearm during and in relation to the robberies. 
    • Caran Stokes, 26. Stokes was indicted on August 29, 2024, on one count of carjacking and one count of brandishing a firearm during and in relation to the carjacking.  
    • Tony Thomas, 27. Thomas was indicted on August 29, 2024, on one count of carjacking and one count of brandishing a firearm during and in relation to the carjacking.  
    • Pierre Jones, 34. Jones was indicted on August 29, 2024, for possession of a firearm after having at least three prior convictions for serious drug offenses or violent felonies.  
    • Marcus Oher, 26. Oher was indicted on August 29, 2024, for being a felon in possession of a firearm on two different occasions. 
    • Jermaine Cooper, 35. Cooper was indicted on August 29, 2024, for being a felon in possession of a firearm. 

    These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation’s Safe Streets Task Force; the Project Safe Neighborhoods Gun Task Force; the Memphis Police Department; and the Shelby County Sheriff’s Office.  Anyone with information about switches or other federal gun crimes can call 1-800-ATF-GUNS (1-800-283-4867).

    The charges and allegations contained in the indictments are merely accusations of criminal conduct, not evidence.  The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law.  If convicted, each defendant’s sentence will be determined by the Court after review of the factors unique to the case, including the defendant’s prior criminal records (if any), the defendant’s role in the offense, and the characteristics of the violation. 

    These indictments are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the 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, using data-driven methods to set focused and strategic enforcement priorities, and measuring the results. 

    United States Attorney Kevin Ritz thanked the Assistant United States Attorneys prosecuting these cases, as well as the law enforcement partners who investigated the cases.   

    ###

    For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.

    MIL Security OSI –

  • MIL-OSI Security: Chattanooga Man Sentenced to 60 Months in Prison for Defrauding Elderly Widow with Dementia of $1.2 Million

    Source: US FBI

    NASHVILLE – Karl Hampton, 65, of Chattanooga, Tennessee, was sentenced to 60 months in prison, followed by 3 years of supervised release, and ordered to pay over $1.2 million in restitution for executing a scheme to defraud an elderly widow who had dementia, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee.

    Hampton and his wife Deborah, both formerly of Franklin, Tennessee, were indicted in June 2021 on multiple counts of conspiracy and money laundering and Karl Hampton was also charged with eight counts of wire fraud.  After a week-long jury trial in April 2023, Karl Hampton was convicted on all counts.

    At trial, the evidence showed that Karl Hampton met the 86-year-old widow while he was working as an exterminator for a pest control company based in Nashville. Between January 2018 and February 2020, Karl Hampton tricked the woman into believing that he would care for her personally and financially. Hampton held himself out to the woman and others as her “personal representative,” her “son” or “godson,” and pretended that he was acting on her behalf.  In April 2019, Hampton convinced her to sign over her Power of Attorney and to name him in her Revocable Living Trust and in her will.  He then methodically drained the woman’s bank accounts, took out a $500,000 line of credit in her name, and amassed huge charges on her credit cards for his own personal expenses.

    Some of the funds Hampton stole came from two investment accounts that belonged to the estate of the woman’s deceased sister. Those funds were supposed to be split between the woman and another individual. Instead, Hampton transferred the funds to himself.

    In total, Hampton took more than $1.2 million. from the woman’s accounts in the form of checks, cashier’s checks, and bank transfers, cash withdrawals, and using the woman’s credit card for his own benefit.  Hampton frequently purchased luxury items, including a car and a luxury SUV, and a 4.3-karat diamond ring that cost more than $21,000. Hampton often spent over $1,000 per day in cash buying lottery tickets.

    Deborah Hampton pleaded guilty to one count of money laundering on February 13, 2023. She was sentenced to time served, 3 years of supervised release, and ordered to pay restitution in the amount of $21,000.

    This case was investigated by the Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency.  Assistant U.S. Attorney Kathryn Booth prosecuted the case.

    # # # # #

    MIL Security OSI –

  • MIL-OSI Security: Former Tennessee State Public Official and a Corporate Executive Charged with Conspiracy to Obstruct Justice and Commit Perjury in Connection with a $123 Million State Contract

    Source: US FBI

    NASHVILLE – Wesley Olan Landers, 55, of Cumming, Georgia, and Jeffrey Scott Wells, 54, of Canton, Georgia, have been charged by felony information with conspiracy to obstruct justice and to commit perjury in connection with a $123 million contract to provide behavioral health services to Tennessee Department of Corrections (“TDOC”) inmates, announced Thomas J. Jaworski, Acting United States Attorney for the Middle District of Tennessee.

    According to the information, Landers was the Deputy Commissioner and Chief Financial Officer for TDOC from 2012 until March 2020. From at least 2018 until February 2021, Wells was a Vice President of Company B.

    In 2019, Company A provided behavioral health services to TDOC inmates. In anticipation of the contract’s expiration, the State of Tennessee issued Requests for Proposals (“RFP”) for a new TDOC behavioral health services contract. Pursuant to the RFPs, prospective vendors could bid for the new contract. The State received bids from several prospective vendors and, in July 2020, issued a notice of its intent to award the new contract to Company B in Tennessee. The total amount for the new contract was $123,513,819.

    Before the new contract was awarded, from September 2018 until February 2020, Landers (while serving as a Tennessee State official) used his personal email account to provide confidential TDOC information related to the bidding process to Wells. On March 1, 2020, Company B hired Landers as its Vice President of Operations, reporting to Wells. This position was created specifically for Landers; it was not advertised to other candidates and neither Landers nor any other candidates were interviewed before he was hired. By February 2021, senior leadership of Company B learned that Landers had given confidential TDOC information to Wells in connection with the RFPs, and the CEO of Company B fired them both.

    A few months earlier, in October 2020, Company A filed a civil lawsuit relating to the RFPs in federal court in Nashville, naming among others, Company B and the State of Tennessee as defendants. In that lawsuit, Company A served subpoenas for documents and testimony on Landers and Wells for all their communications with TDOC employees related to the RFPs.

    To impede an investigation into a matter within the FBI’s jurisdiction – namely, bribery – and to conceal that Landers gave confidential TDOC information to Wells about the RFPs, Landers and Wells agreed to engage in a cover up and to commit perjury in the federal civil lawsuit. Landers began using a specialized program to delete his personal email account’s communications with Wells that were sought in the subpoena. Landers and Wells both got new cell phones which they used to discuss the need to hide information in response to Company A’s subpoenas and deposition notices. They also both testified falsely under oath in their depositions, including about whether they shared documents related to the RFPs, when they last spoke, and if they communicated on WhatsApp.

    If convicted, both defendants face up to five years in federal prison.

    This case was investigated by the Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency. Assistant U.S. Attorneys Taylor J. Phillips and M. Scott Cole are prosecuting the case.

    An information is merely an accusation. All defendants are considered innocent until proven guilty.

    # # # # #

    MIL Security OSI –

  • MIL-OSI Security: Tennessee Father and Son Sentenced to Prison for Assaulting Law Enforcement with a Weapon During January 6 Capitol Breach

    Source: US FBI

                WASHINGTON— A Father and son from Tennessee were sentenced to prison today after they were both previously convicted of assaulting law enforcement and other charges stemming from their conduct during the Jan. 6, 2021, breach of the U.S. Capitol. Their 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 Waynick, 53, of Charlotte, Tennessee, was sentenced to 54 months in prison, 36 months of supervised release, and ordered to pay $2,000 in restitution.

                Jerry McKane Waynick, 21, also of Charlotte, Tennessee, was sentenced to 30 months in prison, 36 months of supervised release, and ordered to pay $2,000 in restitution.

                Both men were sentenced by U.S. District Judge Timothy J. Kelly.

                Mark and Jerry Waynick were each convicted of 11 felony offenses and three misdemeanors, including, among other charges, assaulting law enforcement with a dangerous weapon. The men were found guilty following a bench trial before Judge Kelly.

                According to the evidence presented during the trial, on Jan. 6, 2021, the Waynicks attended the “Stop the Steal” rally in Washington, D.C., near the Ellipse. After the rally, the two men made their way to the U.S. Capitol building wearing helmets, tactical vests, gloves, and goggles. The pair then entered the closed U.S. Capitol grounds shortly after the initial breach of the Peace Circle at 12:55 p.m. The men then made their way to the West Front, where a line of Metropolitan Police Department (MPD) and United States Capitol Police (USCP) officers were attempting to prevent rioters from breaching the Capitol.

                On the West Front, the Waynicks joined other rioters’ efforts to push against a line of police officers just before 1:36 p.m.  During that time, McKane Waynick saw that police officers were attempting to detain another rioter and rushed to the barricade to grab the rioter and pull him away from the officers, interfering with the detention. While grabbing the other rioter, Jerry Waynick swiped at an officer’s riot baton.

                At the same time that McKane Waynick reached for the baton, Mark Waynick swung an American flag attached to a metal pole with a metal finial into the line of police officers. Before the pole hit any officers, an officer intercepted the pole by grabbing it from Mark and throwing it behind the line of police officers. Minutes later, McKane Waynick returned to the metal barricades and joined with at least four other rioters to separate one metal bicycle rack from the others and pull it into the crowd to create an opening in the barricade; however, police prevented them from achieving their intent.

                Less than a minute later, at 1:40 p.m., McKane Waynick picked up a large plastic construction marker, aimed it at police, and hurled it with both hands, striking two officers. Court documents say that this marker weighed approximately ten pounds and was three feet tall. After hurling the object at police, McKane Waynick retreated back into the crowd.

                The Waynicks entered the Capitol building from the Senate Wing Door at 2:20 p.m., just minutes after the initial breach at 2:13 p.m. Once inside, they moved throughout the building for approximately 35 minutes, entering the Will Rogers Hallway, which was outside the House Chamber, and joining with a mob of rioters who pushed past the handful of officers guarding that hallway.

                At approximately 2:35 p.m., the mob pushed through police officers and entered the House Chamber’s Main Door. The Waynicks followed the advancing rioters and moved to within a few feet of the House Chamber as the mob repeatedly chanted, “Break it down!” An individual recording video captured the scene afterward and asked McKane Waynick about what he had seen, to which he replied that he saw “guns” and said, “We’re an imminent threat to the people inside.”

                The Waynicks exited the Capitol building at 2:55 p.m. via the Upper House Door.

                The FBI arrested the Waynicks on Feb. 17, 2022, in Tennessee.

                This case was 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 Middle District of Tennessee.

                This case was investigated by the FBI’s Memphis Field Office and the FBI’s Washington Field Office, which identified Jerry McKane Waynick as #157 on its seeking information photos. Valuable assistance was provided by the Metropolitan Police Department and the U.S. Capitol Police.

                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.

    MIL Security OSI –

  • MIL-OSI Security: United States Seizes More Than $6 Million in Alleged Proceeds of a Crypto-Confidence Scheme

    Source: US FBI

                WASHINGTON – The United States seized over $6 million worth of cryptocurrency from perpetrators overseas, announced U.S. Attorney for the District of Columbia Matthew M. Graves, U.S. Attorney for the Eastern District of Tennessee Francis M. Hamilton III, Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Criminal Division, and FBI Special Agent in Charge Joseph E. Carrico of the Knoxville Division.

                The perpetrators in Southeast Asia targeted one or more individuals in the United States and fraudulently obtained millions of dollars’ worth of cryptocurrency through a cryptocurrency confidence investment scheme.

                The FBI was able to trace victim funds on the blockchain and located multiple cryptocurrency wallet addresses which still held victim funds totaling more than $6 million. 

                Cryptocurrency confidence investment schemes begin by criminals contacting potential victims through seemingly misdirected text messages, dating applications, or professional meetup or investment groups. Next, using various means of manipulation, the criminal gains the victim’s affection and trust. The perpetrator then recommends cryptocurrency investment by touting their own, or an associate’s, success in the field. Means of carrying out the scheme vary, but a common tactic is to direct a victim to a fake investment platform hosted on a website. These websites, and the investment platforms hosted there, are created by criminals to mimic legitimate platforms. The subject assists the victim with opening a cryptocurrency account, often on a U.S.- based exchange, and then walks the victim through transferring money from a bank account to that cryptocurrency account. Next, the victim will receive instructions on how to transfer their cryptocurrency assets to the fake investment platform.

                On its surface, the fraudulent platforms often show lucrative returns, encouraging further investment; however, all deposited funds are actually routed to a cryptocurrency wallet address controlled completely by the perpetrators. The perpetrators frequently allow victims to withdraw some of their “profits” early in the scheme to engender trust and help convince victims of the legitimacy of the platform. As the scheme continues, victims are unable to withdraw their funds and are provided various excuses as to why. Ultimately, victims are locked out of their accounts and lose all their funds.

                “In these scams, fraudsters trick U.S. citizens into believing they are transferring funds to cryptocurrency investment opportunities when, in fact, they are just unwittingly turning their money over to the fraudsters,” said U.S. Attorney Graves. “The fact these fraudsters and their accounts are typically located outside the United States, will not stop us or our partners at the FBI from doing all we can to recover the proceeds of these frauds and to hold the people running them accountable.”

                “Investment scams and schemes are not new, but committing fraud with digital currency presents new challenges for law enforcement attempting to recover lost funds,” said Special Agent in Charge Carrico. “The FBI along with our law enforcement partners will continue to investigate allegations of crypto scams, but the best defense is to educate yourself before making any investment. Remember, if it sounds too good to be true, it probably is.”

               Based on data submitted to the FBI’s Internet Crime Complaint Center (https://www.ic3.gov/) in 2022 alone, perpetrators of these schemes targeted tens of thousands of victims in the United States and resulted in over two billion dollars in private assets being siphoned overseas. The loss amount reported in IC3 complaints involving cryptocurrency increased 45% since 2022, from more than $3.8 billion to over $5.6 billion in 2023. 

               The FBI Knoxville Division is investigating the case. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit are providing invaluable assistance. 

               The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets. This case is being prosecuted by Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr. of the District of Columbia, Assistant U.S. Attorney Joseph DeGaetano of the Eastern District of Tennessee, and Trial Attorney Stefanie Schwartz from the National Cryptocurrency Enforcement Team with the Computer Crime and Intellectual Property Section of the Department of Justice.

    ###

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    MIL Security OSI –

  • MIL-OSI Security: Federal Jury Convicts Kingston Man of Attempting to Entice Minors to Engage in Unlawful Sexual Activity and Other Child Sex Crime Offenses

    Source: US FBI

    KNOXVILLE, Tenn. – On September 25, 2024, following a-three-day trial in United States District Court at Knoxville, a federal jury convicted Christopher Edward Allen, 34, of Kingston, TN, of nine counts involving child pornography and attempting to entice minors to engage in unlawful sexual activity.  Specifically, Allen was convicted of three counts of attempting to entice a minor to engage in unlawful sexual activity, one count of producing child pornography, two counts of attempting to produce child pornography, two counts of transporting a visual depiction of a minor engaged in sexually explicit conduct, and one count of transferring obscene material.

    Sentencing is set for February 6, 2025, at 2:00 pm, in front of the Honorable Judge Thomas A. Varlan, United States District Judge, United States District Court at Knoxville. Allen faces a sentence of up to life in prison.

    The evidence presented at trial showed that, among other things, Allen used various social media platforms to identify minors online.  Once Allen identified the minors, he enticed them over social media and texting apps to engage in unlawful sexual activity and to send nude images of themselves engaged in sexually explicit conduct.  In two instances, Allen paid the minors for nude images of themselves, which Allen later emailed to himself using the minor’s name as the subject line of the emails.  Allen also sent sexually explicit images of himself to minors using social media.  In at least one instance, Allen met a minor in person at the restaurant where Allen worked.  Allen added the minor to one of his social media accounts.  Later that night, Allen communicated with the minor over social media.  Law enforcement learned of those messages and, with consent from the minor’s parents, assumed the minor’s identity on social media two days later.  That same day, Allen was arrested at a park in Kingston, TN, after arriving with the intent to meet the minor.

    U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation (FBI) made the announcement.

    FBI and the Tennessee’s Ninth Judicial District Attorney General’s Office investigated the case that led to the indictment and subsequent conviction of Allen.

    Assistant U.S. Attorneys Jennifer Kolman and William A. Roach, Jr., represented the United States at trial.

    This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about PSC, please visit www.justice.gov/psc.

    For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab “resources.”

                                                                                                               ###

    MIL Security OSI –

  • MIL-OSI Security: Chattanooga Man Sentenced for Firearm and Explosives Violations

    Source: US FBI

    CHATTANOOGA, Tenn. – On November 1, 2024, Anthony Christopher Lively, 41, of Chattanooga, was sentenced to 54 months in prison by the Honorable Travis R. McDonough, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga.  Following imprisonment, Lively will be on supervised release for three years.

    As part of the plea agreement filed with the court, Lively agreed to plead guilty to possession of an unregistered firearm silencer and unregistered destructive devices, in violation of the National Firearms Act (“NFA”), 26 U.S.C. §§ 5841. 5861(d), and 5871.

    According to filed court documents, in August of 2022, law enforcement executed a search warrant at Lively’s Chattanooga home.  Investigators located and seized a Grand Power Stribog, Model SP9A1, 9-millimter, short-barrel rifle (8-inch barrel length) equipped with a foldable stock and a fully loaded magazine; multiple firearm magazines; multiple lists detailing explosive components and parts; and assorted ammunition.  Further investigation revealed that prior to the execution of the warrant, Lively enlisted a family member to remove contraband from his home.  From that family member’s home, law enforcement located and seized a firearm silencer; improvised explosive devices, commonly referred to as “pipe bombs” and “Molotov cocktails”, an improvised incendiary device, commonly referred to as a “Molotov cocktail”, and various fuzes, initiators, and other explosives-related components.  Lively later admitted to purchasing and modifying the short-barrel rifle and firearm silencer and constructing the pipe bombs and Molotov cocktail.  He also admitted that he directed his family member to remove the items from his home.  The firearms and devices were not registered, to Lively or otherwise, in the National Firearms Registration and Transfer Record, as required by the NFA.

    U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement. 

    The criminal indictment was the result of an investigation by Homeland Security Investigations-Chattanooga Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives Chattanooga Field Office; the Federal Bureau of Investigation; Chattanooga Police Department Bomb Squad and Special Victims Unit; and the Hamilton County Sheriff’s Office

    Assistant United States Attorney Kevin T. Brown represented the United States.

    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.

                                                                                                                               ###

    MIL Security OSI –

  • MIL-OSI Security: Tennessee Man Convicted of Assaulting Law Enforcement and Other Charges for Actions During January 6 Capitol Breach

    Source: US FBI

                WASHINGTON – A Tennessee man was convicted of assaulting law enforcement and other felony and misdemeanor charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His 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.

                Edward Kelley, 35, of Maryville, Tennessee, was found guilty of three felonies, including civil disorder, one count of destruction of government property in an amount over $1,000, and assaulting, resisting, or impeding certain officers.

                In addition to the felonies, Kelley was convicted of eight misdemeanor offenses, including of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, entering and remaining in the Gallery of Congress, disorderly conduct in a Capitol building, act of physical violence in the Capitol grounds or buildings, destruction of government property under $1,000, and parading, demonstrating, or picketing in a Capitol building.

                Kelley was convicted of these charges following a bench trial before U.S. District Judge Colleen Kollar-Kotelly and will be sentenced on April 7, 2025.

                According to evidence presented during the trial, Kelley was identified in open-source images and video footage outside the West Front of the U.S. Capitol building on Jan. 6, 2021, in Washington, D.C. There, Kelley is seen moving to the scaffolding over a set of stairs and becomes involved in an altercation with a United States Capitol Police (USCP) officer where he and two other men throw the officer to the ground.

                Kelley then moves to the top of the stairs with a crowd of rioters before being stopped by law enforcement. However, Kelley is seen in open-source video footage pushing and pulling on a metal barricade with police on the other end. The crowd and Kelley eventually pushed past police and made their way closer to the Capitol building. Kelley arrived just outside the Senate Wing Door and is then seen in an open-source video using a piece of wood to smash and breach the window adjacent to the door. Kelley then entered the building through this window at approximately 2:13 p.m. Evidence showed that Kelley was the fourth person to enter the building through this breached window.

                After entering into the building, Kelley moved to the still-closed Senate Wing Door and kicked it open. As the crowd of rioters poured into the building, Kelley moved further into the building and can be seen in an open-source video confronting Capitol Police Officer Eugene Goodman. Kelley then made his way through several areas of the Capitol, including the Ohio Clock Corridor, the Crypt, the Senate Gallery, and the Rotunda. In another open-source video, Kelley is identified in the Senate Gallery.

                Kelley exited the Capitol through the Rotunda Door at 2:54 p.m. and was inside the building for approximately 40 minutes.

                Kelley was arrested on May 5, 2022, in Tennessee.

                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 Tennessee.

                The case is being investigated by the FBI’s Knoxville and Washington Field Offices. Valuable assistance was provided by the U.S. 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.

    MIL Security OSI –

  • MIL-OSI Security: Four Arizona Swindlers Sentenced for Paycheck Protection Program Fraud

    Source: US FBI

    PHOENIX, Ariz. – Four Arizona residents were sentenced to significant prison terms in connection with their schemes to fraudulently obtain millions of dollars in Paycheck Protection Program (PPP) loans, a federal loan initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic. All four defendants, Willie Mitchell, Sean Swaringer, Kimberly Coleman, and Jason Coleman pleaded guilty to Bank Fraud.

    They were each sentenced as follows:

    • Willie Mitchell, aka Blu Mitchell, 41, of Phoenix, Arizona, was sentenced on February 6, 2023, by United States District Judge G. Murray Snow to 97 months in prison.
    • Sean Swaringer, 57, of Peoria, Arizona, was sentenced on April 4, 2023, by United States District Judge Steven P. Logan to 121 months in prison.
    • Kimberly Coleman, 39, of Mesa, Arizona, was sentenced on April 10, 2023, by Judge Logan to 120 months in prison.
    • Jason Coleman, 41, of Mesa, Arizona, was sentenced on May 15, 2023, by Judge Logan to 60 months in prison.

    In addition to their respective prison terms, all four defendants also were ordered to serve five years of supervised release.

    Mitchell, working with others, fraudulently obtained seven PPP loans totaling $9,470,900. He purchased a vehicle, multiple properties, and vacations with the PPP funds.

    Swaringer obtained four fraudulent PPP loans totaling more than $1.5 million on behalf of two entities: Cryotherapy for Veterans and Cryoworld Therapy, LLC. In addition to his own loans, Swaringer also recruited more than 10 individuals to apply for fraudulent PPP loans. He assisted in preparing and submitting their PPP applications in exchange for kickbacks from their PPP loan proceeds. Swaringer was ordered to pay more than $3.8 million in restitution for his own loans and the kickbacks from at least 15 other PPP loans. Swaringer purchased jewelry, vehicles, vacations, and real estate with the fraudulent funds.

    Kimberly Coleman and her husband, Jason Coleman, collectively prepared and submitted approximately two dozen fraudulent PPP loan applications in an attempt to receive more than $30 million in PPP funds. They were successful in at least 10 of those submissions and fraudulently obtained more than $13 million in PPP funds. The Colemans’ purchases included luxury vehicles and real estate properties, personal property from several high-end retail outlets, vacation, and jewelry.

    The Federal Bureau of Investigation led the investigation in these cases, with significant assistance from Internal Revenue Service – Criminal Investigation, Homeland Security Investigations, and the Small Business Administration-Office of the Inspector General. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecutions.

    CASE NUMBERS:         CR21-00977-001-PHX-GMS
                                              CR21-00981-001-PHX-SPL
                                              CR21-00975-002-PHX-SPL
                                              CR21-00975-001-PHX-SPL
    RELEASE NUMBER:    2023-088_Mitchell-Swaringer-Coleman

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

    MIL Security OSI –