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Category: United States of America

  • MIL-OSI: Announcement of the final result of Nykredit’s recommended voluntary public tender offer for Spar Nord Bank A/S – Nykredit Realkredit A/S

    Source: GlobeNewswire (MIL-OSI)

    THIS ANNOUNCEMENT IS PUBLISHED PURSUANT TO SECTION 21(3) OF EXECUTIVE ORDER NO. 636 OF 15 MAY 2020

    NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR TO ANY JURISDICTION WHERE DOING SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

    Announcement of the final result of Nykredit’s recommended voluntary public tender offer for Spar Nord Bank A/S

    23 May 2025

    Nykredit announces the final result of the recommended voluntary public tender offer for Spar Nord Bank A/S

    In accordance with section 4(1) of the Danish Takeover Order1, Nykredit Realkredit A/S (“Nykredit”) announced on 10 December 2024 that Nykredit intended to submit a voluntary public takeover offer (the “Offer”) to acquire all shares in Spar Nord Bank A/S (“Spar Nord Bank”), with the exception of Spar Nord Bank’s treasury shares, for a cash price of DKK 210 per share, valuing the aggregated issued share capital of Spar Nord Bank at DKK 24.7 billion. As stated in a supplement dated 2 April 2025, the offer price has subsequently been increased to DKK 210.50 per share.

    On 8 January 2025, Nykredit published the offer document regarding the Offer (the “Offer Document”), as approved by the Danish FSA in accordance with section 11 of the Danish Takeover Order. The Offer Document was most recently supplemented in a supplement of 23 April 2025.

    The offer period expired on 20 May 2025 at 23:59 (CEST), and on 21 May 2025 Nykredit announced the preliminary result of the Offer in accordance with section 21(3) of the Danish Takeover Order. The preliminary result of the Offer showed that Nykredit had obtained acceptances which, combined Spar Nord Bank shares held by Nykredit, represent 96.54 per cent of the total share capital and voting rights in Spar Nord Bank, excluding Spar Nord Bank’s holding of treasury shares.

    Final result

    In accordance with section 21(3) of the Danish Takeover Order, Nykredit hereby announces the final result of the Offer.

    The final summation of acceptances shows that Nykredit has obtained acceptances for 72,169,763 shares, equal to 62.87 per cent of the share capital and the associated voting rights in Spar Nord Bank, excluding Spar Nord Bank’s holding of 2,918,044 treasury shares. The acceptances correspond to 61.32 per cent of the total share capital and voting rights in Spar Nord Bank.

    The acceptances received combined with the total of 38,646,475 Spar Nord Bank shares owned by Nykredit represent 96.54 per cent of the total share capital and voting rights in Spar Nord Bank, excluding Spar Nord Bank’s holding of treasury shares. The acceptances received and Nykredit’s holding of Spar Nord Bank shares correspond in total to 94.15 per cent of the total share capital and the total number of voting rights in Spar Nord Bank.

    The relevant regulatory approvals have been obtained, and the final summation of acceptances confirms that the minimum condition for acceptance is also fulfilled. Nykredit therefore considers that all conditions for completion of the Offer have been fulfilled, and Nykredit intends to complete the Offer on the terms and conditions set out in the Offer Document.

    Settlement

    The Offer is expected to be completed on 28 May 2025, on which date the cash consideration will be paid to the designated account of each Spar Nord Bank shareholder who has validly accepted the Offer and who has not validly withdrawn the acceptance of the Offer.

    Compulsory acquisition, delisting and changes to the management and articles of association

    As Nykredit stands to obtain an ownership interest corresponding to more than 90 per cent of the share capital and the associated voting rights in Spar Nord Bank (excluding treasury shares) upon completion of the Offer, it is Nykredit’s intention, as described in section 7.8 of the Offer Document, to initiate and complete a compulsory acquisition of the shares held by the remaining Spar Nord Bank shareholders in pursuance of sections 70-72 of the Danish Companies Act.

    Nykredit furthermore intends to seek to have the Spar Nord Bank shares removed from trading and official listing on Nasdaq Copenhagen A/S as described in section 7.9 of the Offer Document.

    In this connection, Nykredit will request Spar Nord Bank to convene an extraordinary general meeting at which Nykredit, as described in sections 7.4 and 7.5 of the Offer Document, will propose changes to the board of directors of Spar Nord Bank and changes to Spar Nord Bank’s articles of association.

    Detailed information on compulsory acquisition and delisting will be published in separate announcements.

    Additional information

    Contact persons:

    Investor contact:

    Morten Bækmand, Head of Investor Relations, Nykredit (+45 4455 1521)

    Media contact:

    Orhan Gökcen, Head of Press, Nykredit (+45 3121 0639)

    For further information about the Offer, please see: https://www.nykredit.com/en-gb/offer-spar-nord/

    This announcement and the Offer Document (with supplements) are not directed at shareholders of Spar Nord Bank A/S whose participation in the Offer would require the issuance of an offer document, registration or activities other than what is required under Danish law (and, in the case of shareholders in the United States of America, Section 14(e) of, and applicable provisions of Regulation 14E promulgated under, the US Securities Exchange Act of 1934, as amended). The Offer is not made and will not be made, directly or indirectly, to shareholders resident in any jurisdiction in which the submission of the Offer or acceptance thereof would be in contravention of the laws of such jurisdiction. Any person coming into possession of this announcement, the Offer Document or any other document containing a reference to the Offer is expected and assumed to independently obtain all necessary information about any applicable restrictions and to observe these.

    This announcement does not constitute an offer or an invitation to purchase securities or a solicitation of an offer to purchase securities in accordance with the Offer or otherwise. The Offer will be submitted only in the form of the Offer Document (with supplements) approved by the FSA, which sets out the full terms and conditions of the Offer, including information on how to accept the Offer. The shareholders of Spar Nord Bank are advised to read the Offer Document and any related documents as they contain important information.

    Restricted jurisdictions

    The Offer is not made, and acceptance of the Offer to tender Spar Nord Bank shares is not accepted, neither directly nor indirectly, in or from any jurisdiction in which the making or acceptance of the Offer would not be in compliance with the laws of such jurisdiction or would require any registration, approval or any other measures with any regulatory authority not expressly contemplated by the Offer Document (the “Restricted Jurisdictions”). Neither the United States nor the United Kingdom is a Restricted Jurisdiction.

    Restricted Jurisdictions include, but are not limited to: Australia, Canada, Hong Kong, Japan, New Zealand and South Africa.

    Persons obtaining documents or information relating to the Offer (including custodians, account holding institutions, nominees, trustees, representatives, fiduciaries or other intermediaries) should not distribute, communicate, transfer or send these in or into a Restricted Jurisdiction or use mail or any other means of communication in or into a Restricted Jurisdiction in connection with the Offer. Persons (including, but not limited to, custodians, custodian banks, nominees, trustees, representatives, fiduciaries or other intermediaries) intending to communicate this announcement, the Offer Document, supplements or any related document to any jurisdiction outside Denmark or the United States should inform themselves about these restrictions before taking any action. Any failure to comply with these restrictions may constitute a violation of the laws of such jurisdiction, including securities laws. It is the responsibility of all Persons obtaining this announcement, the Offer Document, supplements, an acceptance form and/or other documents relating to the Offer, or into whose possession such documents otherwise come, to inform themselves about and observe all such restrictions.

    Nykredit is not responsible for ensuring that the distribution, dissemination or communication of this announcement, the Offer Document or supplements to shareholders outside Denmark, the United States and the United Kingdom is consistent with applicable law in any jurisdiction other than Denmark, the United States and the United Kingdom.

    Important Information for Shareholders in the United States

    The Offer concerns the shares in Spar Nord Bank, a public limited liability company incorporated and admitted to trading on a regulated market in Denmark, and is subject to the disclosure and procedural requirements of Danish law, including the Danish capital markets act and the Danish takeover order.

    The Offer is being made to shareholders in Spar Nord Bank in the United States in compliance with the applicable US tender offer rules under the U.S. Securities Exchange Act of 1934, as amended, (the “U.S. Exchange Act”), including Regulation 14E promulgated thereunder, subject to the relief available for a “Tier II” tender offer, and otherwise in accordance with the requirements of Danish law and practice

    Accordingly, US Spar Nord Bank shareholders should be aware that this announcement and any other documents regarding the Offer have been prepared in accordance with, and will be subject to, the disclosure and other procedural requirements, including with respect to withdrawal rights, the Offer timetable, settlement procedures and timing of payments of Danish law and practice, which may differ materially from those applicable under US domestic tender offer law and practice. In addition, the financial information contained in this announcement or the Offer Document has not been prepared in accordance with generally accepted accounting principles in the United States, or derived therefrom, and may therefore differ from, or not be comparable with, financial information of US companies.

    In accordance with the laws of, and practice in, Denmark and to the extent permitted by applicable law, including Rule 14e-5 under the U.S. Exchange Act, Nykredit, Nykredit’s affiliates or any nominees or brokers of the foregoing (acting as agents, or in a similar capacity, for Nykredit or any of its affiliates, as applicable) may from time to time, and other than pursuant to the Offer, directly or indirectly, purchase, or arrange to purchase, outside of the United States, shares in Spar Nord Bank or any securities that are convertible into, exchangeable for or exercisable for such shares in Spar Nord Bank before or during the period in which the Offer remains open for acceptance. These purchases may occur either in the open market at prevailing prices or in private transactions at negotiated prices. Any information about such purchases will be announced via Nasdaq Copenhagen and relevant electronic media if, and to the extent, such announcement is required under applicable law. To the extent information about such purchases or arrangements to purchase is made public in Denmark, such information will be disclosed by means of a press release or other means reasonably calculated to inform US shareholders of Spar Nord Bank of such information.

    In addition, subject to the applicable laws of Denmark and US securities laws, including Rule 14e-5 under the U.S. Exchange Act, the financial advisers to Nykredit or their respective affiliates may also engage in ordinary course trading activities in securities of Spar Nord Bank, which may include purchases or arrangements to purchase such securities.

    It may not be possible for US shareholders to effect service of process within the United States upon Spar Nord Bank, Nykredit or any of their respective affiliates, or their respective officers or directors, some or all of which may reside outside the United States, or to enforce against any of them judgments of the United States courts predicated upon the civil liability provisions of the federal securities laws of the United States or other US law. It may not be possible to bring an action against Nykredit, Spar Nord Bank and/or their respective officers or directors (as applicable) in a non-US court for violations of US laws. Further, it may not be possible to compel Nykredit and Spar Nord Bank or their respective affiliates, as applicable, to subject themselves to the judgment of a US court. In addition, it may be difficult to enforce in Denmark original actions, or actions for the enforcement of judgments of US courts, based on the civil liability provisions of the US federal securities laws.

    The Offer, if completed, may have consequences under US federal income tax and under applicable US state and local, as well as non-US, tax laws. Each shareholder of Spar Nord Bank is urged to consult its independent professional adviser immediately regarding the tax consequences of the Offer.

    NEITHER THE U.S. SECURITIES AND EXCHANGE COMMISSION NOR ANY SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY IN ANY STATE OF THE U.S. HAS APPROVED OR DECLINED TO APPROVE THE OFFER OR THIS ANNOUNCEMENT, PASSED UPON THE FAIRNESS OR MERITS OF THE OFFER OR PROVIDED AN OPINION AS TO THE ACCURACY OR COMPLETENESS OF THIS ANNOUNCEMENT OR ANY OFFER DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE IN THE UNITED STATES.

    1 Executive Order no. 636 of 15 May 2020

    Attachment

    The MIL Network –

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

    Source: US FBI

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

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

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

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

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

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

    # # #

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

    MIL Security OSI –

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

    Source: US FBI

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

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

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

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

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

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

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

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

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

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

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

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

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

    MIL Security OSI –

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

    Source: US FBI

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

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

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

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

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

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

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

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

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

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

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

    MIL Security OSI –

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

    Source: US FBI

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

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

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

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

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

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

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

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

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

    MIL Security OSI –

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

    Source: US FBI

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

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

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

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

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

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

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

    MIL Security OSI –

  • MIL-OSI Security: Six Defendants Indicted in Multi-State Identity Theft Ring

    Source: US FBI

    TUCSON, Ariz. – On February 28, 2024, a federal grand jury returned a five-count indictment against Armani R. Purandah, 24, Rashawn L. Gray, 27, Tyshaun D. Ripley, 25, Awilda Reyes, 51, Richard M. Bah, 20, of Bronx, NY, and Harley D. Stuscavage, 41, of Phoenix. The defendants were each charged with one count of Conspiracy to Commit Bank Fraud and four counts of Aggravated Identity Theft. 

    The indictment alleges that the co-conspirators engaged in a scheme to defraud individuals and banks across the United States including in Arizona, Colorado, and California. The co-conspirators unlawfully used victims’ personal identifying information and fraudulent identifications to open fake business accounts linked to the victims’ legitimate bank accounts. They transferred the victims’ funds from the victims’ legitimate bank accounts to the fraudulent business bank accounts. Once the victims’ funds were transferred to the business accounts, the co-conspirators withdrew the funds in cash at financial institutions and tribal casinos. The co-conspirators also made other unauthorized transactions from the accounts.  

    Conspiracy to Commit Bank Fraud carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000. Aggravated Identity Theft carries a two-year mandatory minimum prison sentence.

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

    The Federal Bureau of Investigation conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
     

    CASE NUMBER:           CR-24-00927-JCH-MSA
    RELEASE NUMBER:    2024-027_Purandah, et al.

    # # #

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

    2024-027_Purandah, et al.

    MIL Security OSI –

  • MIL-OSI Security: Former Columbus Police Officer Pleads Guilty to Stealing, Selling Cocaine

    Source: US FBI

    COLUMBUS, Ohio – John Castillo, 31, of Grove City, pleaded guilty in U.S. District Court here today to possession with intent to distribute five kilograms or more of cocaine.

    According to court documents, Castillo was a Columbus police officer assigned to investigate drug crimes. In February 2021, he conspired with another officer to steal and sell approximately 10 kilograms of cocaine. Castillo and the other officer took approximately 10 kilograms of cocaine from a house on North Everett Avenue and did not turn it into evidence. They planted two additional kilograms of cocaine for law enforcement discovery later that day at the house. The 10 kilograms of cocaine were stored in the other officer’s basement before they were given to another individual to sell.

    Possession with intent to distribute five kilograms or more of cocaine is punishable by at least 10 years and up to life in prison.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea entered before U.S. District Judge Edmund A. Sargus Jr.

    Assistant United States Attorneys Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case.

    The case was investigated by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents and officers from the FBI, Ohio Attorney General’s Bureau of Criminal Investigation, the Ohio Auditor of State’s Office and the Columbus Division of Police.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Convicted Felon Sentenced to More Than Six Years for Unlawful Possession of a Firearm

    Source: US FBI

    PHOENIX, Ariz. – Leonard Stanley White, 41, of Phoenix, was sentenced on February 21, 2024, by United States District Judge David G. Campbell to 82 months in prison, followed by three years of supervised release. White pleaded guilty on November 21, 2023, to Felon in Possession of a Firearm and in doing so, he admitted to violating his supervised release conditions.

    On May 9, 2023, White was arrested on a supervised release violation warrant and was found to be in possession of a firearm at that time. White had previously been convicted of Voluntary Manslaughter. After the Voluntary Manslaughter conviction, White was sentenced to 70 months for possessing the firearm and an additional 12 months for violating his supervised release in another case.

    The investigation in this case was conducted by the Federal Bureau of Investigation and the Chandler Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
     

    CASE NUMBER:           CR-23-00819-PHX-DGC
    RELEASE NUMBER:    2024- 028_White

    # # #

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

    MIL Security OSI –

  • MIL-OSI Security: Cincinnati Area Man Sentenced to 78 Months in Prison for Laundering Proceeds From Online Romance-Fraud Conspiracy

    Source: US FBI

    CINCINNATI – De-love Kofi Amuzu, 25, of Fairfield, Ohio, was sentenced in U.S. District Court here today to 78 months in prison for his role as a money launderer in a romance fraud conspiracy that targeted elderly victims looking for companionship online.

    According to court documents, members of the conspiracy created fake online dating profiles using stolen photographs and false information, then communicated with the victims via chats, texts and phone calls while pretending to be the imaginary person pictured in the profile. They commonly claimed to be living abroad to explain why they could not meet in person.

    The conspirators instructed the victims to transfer money, often tens of thousands of dollars at a time, to accounts controlled by Amuzu. They also commonly instructed victims to mail Amuzu cash or other items of value, like Rolex watches and iPhones. After receiving the victims’ money, Amuzu laundered it to accounts in Ghana. Investigators tracked more than $1.1 million in fraud proceeds that flowed through Amuzu’s accounts. Amuzu was ordered to pay $835,487.65 in restitution.

    “According to court documents, several victims lost so much money to the scheme that they were forced to declare bankruptcy,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “Anyone who suspects they or a loved one is a victim of such a fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11, or go to the Department of Justice’s Elder Justice Initiative website for more information – www.Justice.gov/elderjustice.”

    A federal grand jury indicted Amuzu in 2022. He pleaded guilty on Feb. 2, 2024, to conspiring to launder money. His case was announced in October 2022 as part of the Justice Department’s National Elder Justice Sweep, an initiative to increase awareness of the various fraudulent schemes targeting the elderly.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Butler County Prosecutor Michael T. Gmoser and Butler County Sheriff Richard K. Jones announced the sentence imposed today by U.S. District Judge Timothy S. Black. U.S. Attorney Parker also recognized the contributions of Garrett Baker and Susan Monnin of the Butler County Prosecutor’s Office, as well as Butler County Prosecutor’s Office Investigator Steve Isgro. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.

    # # #

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  • MIL-OSI Security: Serial Bank Robber Sentenced to More Than Seven Years in Prison

    Source: US FBI

    TUCSON, Ariz. – James Valentine Siehien, 53, of Tucson, was sentenced on February 27, 2024, by United States District Judge Raner C. Collins to 87 months in prison, followed by five years of supervised release. Siehien pleaded guilty to one count of Bank Robbery and two counts of Armed Bank Robbery on March 16, 2023, for a series of bank robberies he committed in Tucson. 

    Siehien admitted that, on October 21, 2021, he robbed approximately $4,000 from Chase Bank. He also admitted that, on October 26, 2021, he robbed approximately $2,740 from PNC Bank, with what was later determined to be a fake explosive device. Siehien further admitted that, on November 5, 2021, while possessing an axe, he robbed approximately $2,200 from First Convenience Bank.

    The Federal Bureau of Investigation and the Tucson Police Department, as part of the Southern Arizona Violent Crime and Gang Task Force, conducted the investigation in this case. Assistant U.S. Attorney, Adam D. Rossi, District of Arizona, Tucson, handled the prosecution.
     

    CASE NUMBER:           CR-21-03071-TUC-RCC
    RELEASE NUMBER:    2024-029_Siehien

    # # #

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

    MIL Security OSI –

  • MIL-OSI Security: Last Fugitive from Operation Ghost Busted Captured in Mexico

    Source: US FBI

    BRUNSWICK, Georgia—FBI Atlanta special agents working with FBI Phoenix special agents and law enforcement partners in Mexico captured fugitive David D. Young on March 9 in Hermosillo, Sonora, Mexico. He has been brought back to the United States.

    Young was the last fugitive of 76 people indicted in Operation Ghost Busted in January 2023. The drug conspiracy case remains the largest indictment in Southern District of Georgia history.

    On December 8, 2022, a federal arrest warrant was issued for Young in the U.S. District Court for the Southern District of Georgia after he was charged with conspiracy to possess with intent to distribute and to distribute a controlled substance.

    FBI Atlanta would like to thank FBI Phoenix, the Tucson Resident Agency, and Legat Mexico City for their efforts in the capture.

    MIL Security OSI –

  • MIL-OSI Security: Clark County Man Sentenced to 22 Years in Prison for Producing Child Pornography by Paying Adults to Abuse Minor Victims Live on Social Media Apps

    Source: US FBI

    DAYTON, Ohio – Dustin Johnson, 38, of New Carlisle, Ohio, was sentenced in U.S. District Court to 22 years in prison for creating child pornography by paying adult females to sexually abuse minor girls live on social media chats.

    According to court documents, in June 2022, Johnson paid an adult female to engage in sexually explicit conduct with a prepubescent girl live on Snapchat. Johnson recorded the communications with a screen recorder app, saving video recordings approximately 10 minutes and 17 minutes in length on separate days in June.

    After diligent investigation, law enforcement was able to locate the adult female and the child, who were located overseas. The child victim was 5 years old. Local law enforcement was able to remove the child from the adult female offender’s custody.

    Johnson engaged in similar social media chats with other adult females, who at Johnson’s request sexually abused individuals who appeared to be children, on live video chat for Johnson to view.  Johnson also engaged in online chats discussing the possibility of meeting up with other adults who had children so that he could engage in sexually explicit conduct with their children.

    Investigators discovered more than 24,000 child pornography files on Johnson’s hard drives. The pornography included more than 500 files depicting bestiality, at least 400 files involving violence or masochistic abuse and more than 3,500 pornographic files depicting infants and toddlers.

    Johnson was arrested in February 2023 and pleaded guilty in February 2024 to producing child pornography.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed on July 2 by Senior U.S. District Court Judge Thomas M. Rose. Assistant United States Attorney Christina E. Mahy is representing the United States in this case.

    # # #

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  • MIL-OSI Security: Two Sentenced for Possession with Intent to Distribute Methamphetamine

    Source: US FBI

    PHOENIX, Ariz. – Clarizza Augustusa Jackson, 32, of Sacaton, was sentenced last week by Senior United States District Judge David G. Campbell to four years of probation. On June 28, 2023, Thomas Kee Montoya, Jr., 39, of Pinon, was sentenced by Judge Campbell to 100 months in prison, followed by three years of supervised release. Both defendants pleaded guilty to Possession with Intent to Distribute Methamphetamine. 

    In June 2022, the defendants were stopped by Hopi Law Enforcement Services (HLES) officers on the Hopi Reservation. Montoya was driving and Jackson was the front seat passenger. HLES officers located a drug ledger and 306 grams of pure methamphetamine in the car.

    The Federal Bureau of Investigation – Phoenix, and Hopi Law Enforcement Services conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
     

    CASE NUMBER:           CR-22-08129-PCT-DGC
    RELEASE NUMBER:    2024-032_Montoya

    # # #

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

    MIL Security OSI –

  • MIL-OSI Security: Former White Mountain Police Officer Indicted for Obstruction of Investigation

    Source: US FBI

    PHOENIX, Ariz. – Last week, a federal grand jury in Phoenix returned a two-count indictment against Joshua Ben Anderson, 49, of Whiteriver, for his actions in connection with the death of a woman on Thanksgiving Day, 2023.

    The grand jury charged Anderson, a former White Mountain Apache Tribal police officer, with one count of Engaging in Misleading Conduct to Hinder or Delay and one count of Corruptly Altering and Concealing Evidence.

    The indictment alleges that, at approximately 3:31 a.m. on November 23, 2023, Anderson was on-duty and was dispatched to conduct a welfare check of a body that had been observed on State Route 73, on White Mountain Apache Tribal lands. Anderson proceeded to the scene and discovered that the person was deceased. Anderson later acknowledged that only minutes before being dispatched to the scene, he had driven the same stretch of highway and felt a “bump” but continued southbound on SR 73 without stopping to investigate.

    Anderson actively took part in the police investigation into the pedestrian’s death. He spoke with paramedics, interviewed witnesses, briefed and directed officers, filled out an autopsy report, and notified the victim’s family of her death. The indictment alleges that Anderson did not inform his superiors or fellow officers about his likely involvement in the traffic fatality, but rather allowed the investigation to continue. It is further alleged that after returning to his home, Anderson removed the bumper from his patrol vehicle, which had been damaged in the accident, and concealed it. The next day, Anderson resigned from the police department.

    A conviction for each of the two alleged crimes carries a maximum penalty of 20 years in prison and a $250,000 fine.

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

    The Federal Bureau of Investigation and the White Mountain Apache Tribe Police Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
     

    CASE NUMBER:           CR-24-08027-PHX-SPL
    RELEASE NUMBER:    2024-036_Anderson

    # # #

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

    MIL Security OSI –

  • MIL-OSI Security: International Investigation Leads to Shutdown of Ransomware Group

    Source: US FBI

    “Radar/Dispossessor” servers and domains successfully dismantled

    On August 12, FBI Cleveland announced the disruption of “Radar/Dispossessor”—the criminal ransomware group led by the online moniker “Brain”—and the dismantling of three U.S. servers, three United Kingdom servers, 18 German servers, eight U.S.-based criminal domains, and one German-based criminal domain.

    Since its inception in August 2023, Radar/Dispossessor has quickly developed into an internationally impactful ransomware group, targeting and attacking small-to-mid-sized businesses and organizations from the production, development, education, healthcare, financial services, and transportation sectors. Originally focused on entities in the United States, the investigation discovered 43 companies as victims of the attacks, from countries including Argentina, Australia, Belgium, Brazil, Honduras, India, Canada, Croatia, Peru, Poland, the United Kingdom, the United Arab Emirates, and Germany. During its investigation, the FBI identified a multitude of websites associated with Brain and his team.

    Ransomware is a type of malicious software, or malware, that encrypts data on a computer making it unusable. A malicious cybercriminal holds the data hostage until the ransom is paid. If the ransom is not paid, the victim’s data remains unavailable. Cybercriminals may also pressure victims to pay the ransom by threatening to destroy the victim’s data or to release it to the public.

    Radar Ransomware follows the same dual-extortion model as other ransomware variants by exfiltrating victim data to hold for ransom in addition to encrypting victim’s systems. Simply, the ransomware identifies and attacks new victims and, re-victimizes current victims.

    Radar/Dispossessor identified vulnerable computer systems, weak passwords, and a lack of two-factor authentication to isolate and attack victim-companies. Once the criminals gained access to the systems, they obtained administrator rights and easily gained access to the files. The actual ransomware was then used for encryption. As a result, the companies could no longer access their own data. Once the company was attacked, if they did not contact the criminal actor, the group would then proactively contact others in the victim company, either through email or phone call. The emails also included links to video platforms on which the previously stolen files had been presented. This was always with the aim of increasing the blackmail pressure and increasing the willingness to pay.

    Finally, the compromise was announced by the attackers on a separate leak page and a countdown set until public release of the victim data if no ransom was paid.

    As ransomware can have many variants, such as this case, the total number of businesses and organizations affected is yet to be determined. The FBI encourages those with information about Brain or Radar Ransomware—or if their business or organization has been a target or victim of ransomware or currently paying a criminal actor—to contact its Internet Crime Complaint Center at ic3.gov or 1-800-CALL-FBI. Your identity can remain anonymous.

    The investigation and joint takedown were conducted in conjunction with the the U.K.’s National Crime Agency, Bamberg Public Prosecutor’s Office, Bavarian State Criminal Police Office (BLKA), and U.S. Attorney’s Office for the Northern District of Ohio.

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  • MIL-OSI Security: Tucson Man Arrested on Two Counts of Aiming a Laser Pointer at Aircraft

    Source: US FBI

    TUCSON, Ariz. – Charles William Preston II, 53, of Tucson, was arrested on March 6, 2024, after a federal grand jury returned a two-count indictment against him on November 1, 2023. Preston is charged with two counts of aiming a laser pointer at an aircraft. 

    The indictment alleges that on two separate occasions, Preston aimed the beam of a laser pointer at a fixed-wing aircraft operated by the Pima County Sheriff’s Department and in the flight path of the same aircraft.

    A conviction for aiming a laser pointer at an aircraft carries a maximum penalty of five years in prison, a $250,000 fine, 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.

    The Federal Bureau of Investigation and the Pima County Sheriff’s Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
     

    CASE NUMBER:           CR-23-01688-TUC-JAS
    RELEASE NUMBER:    2024-035_Preston

    # # #

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

    MIL Security OSI –

  • MIL-OSI Security: Two Drug Conspiracies Land Little Rock Man in Federal Prison for 18 Years

    Source: US FBI

          LITTLE ROCK—A Little Rock man’s involvement in two separate drug conspiracies will end with him spending 18 years in federal prison. Desmond Kelley, aka “Trell,” 28, was sentenced yesterday to 151 months in prison for his role in a conspiracy to distribute fentanyl, with that sentence to run consecutive to a 65-month sentence he recently received for being involved in a heroin distribution conspiracy. United States District Judge Brian S. Miller handed down the sentence.

          In May 2017, Kelley was named in a 33-defendant indictment that charged him with conspiracy to distribute heroin, distribution of heroin, and use of a telephone to facilitate a drug trafficking crime. In that case, Kelley worked with Aaron “Black” Clark to distribute heroin in Little Rock. In 2016 and 2017, Clark supplied Kelley with multiple ounces of heroin at a time, which Kelley then resold.

          The FBI arrested Kelley in that case on May 31, 2017, and Kelley was released on pretrial bond on January 30, 2018. At that point, the Drug Enforcement Administration (DEA) developed evidence that Kelley immediately went back to selling drugs, including both heroin and fentanyl, to a new group of people. This time, Kelley was at the top of the 17-defendant conspiracy and supplied significant amounts of fentanyl to multiple people who were also indicted.

          Kelley was then indicted for the second time and arrested by the DEA on October 15, 2019, and this time charged with conspiracy to distribute fentanyl. The next day, Kelley pleaded guilty conspiracy to distribute between 400-700 grams of heroin in the 2017 case. Kelley received a 65-month sentence from United States District Judge James M. Moody, Jr., on October 13, 2020. On February 1, 2021, Kelley pleaded guilty to conspiracy to distribute between 1.2 and 4 kilograms of fentanyl in the 2019 case.

          In addition to the prison sentence, which totals 216 months combined, Judge Miller sentenced Kelley to five years of supervised release. There is no parole in the federal prison system.

          The 2017 case was investigated by the FBI’s Met Rock Task Force, in coordination with the LRPD and NLRPD, and prosecuted by Assistant United States Attorney Benecia Moore. The 2019 case was investigated by the DEA, in coordination with the LRPD and NLRPD, and prosecuted by Assistant United States Attorney Chris Givens.

    # # #

    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: Adair County Resident Sentenced for Felony Assault

    Source: US FBI

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cody Wayne Tye, age 34, of Watts, Oklahoma, was sentenced to time served plus three years supervised release for one count of Assault of a Spouse, Intimate Partner, and Dating Partner in Indian Country.

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

    On March 11, 2024, Tye pleaded guilty to the charge.  According to investigators, on September 18, 2022, Tye assaulted an individual at an apartment in Westville, Oklahoma.  During the attack, Tye wrapped both hands around the victim’s neck and shoved the victim against a wall, strangling the victim and causing bruising and abrasions.  The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.

    The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.

    Assistant U.S. Attorneys Rachel Geizura and Edith Singer represented the United States.

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  • MIL-OSI Security: Former DEA Supervisory Agent Sentenced to 135 Months in Prison for Accepting Bribes from Drug Kingpin

    Source: US FBI

          LITTLE ROCK—A former Drug Enforcement Administration (DEA) agent was sentenced today for accepting bribes from a drug trafficker. Nathan Koen, 45, now of Auburn, Illinois, was sentenced to 135 months in federal prison by United States District Judge Brian S. Miller.

          Koen was charged by a federal grand jury in November 2019 with one count of conspiracy to possess with intent to distribute and to distribute heroin, cocaine, and methamphetamine, and one count of bribery of a public official. In August 2021, he pleaded guilty to bribery in exchange for dismissal of the drug-related charge.

          During the sentencing hearing, which took place over two days and concluded today, Judge Miller found that Koen accepted bribes from a known, large-scale drug trafficker for the purpose of helping facilitate a drug conspiracy, and that the conspiracy involved at least 15 to 45 kilograms of methamphetamine. The drug trafficker testified during the hearing and explained that he believed Koen provided was providing sensitive, law-enforcement information, which helped the trafficker avoid detection by law enforcement and run his drug organization. The drug trafficker, who is in federal custody, stated that his organization was responsible for distributing kilogram quantities of methamphetamine cocaine, heroin, fentanyl, and marijuana.

          “This defendant’s actions are a disgrace to the thousands of dedicated law enforcement officers who work with integrity every day to protect and serve our communities,” stated United States Attorney Jonathan D. Ross. “His greed and deception have no place in law enforcement, and we are pleased to see this case come to its rightful conclusion.”

          In 2018, the FBI began investigating Koen, who had been working for DEA since 2002 and had transferred in 2016 to work as a Group Supervisor in the Little Rock DEA office from Jacksonville, Florida. FBI agents interviewed the drug trafficker who told law enforcement he had paid Koen cash for information and protection related to his drug-trafficking activities.

          The drug trafficker told FBI agents he had been in custody on federal drug charges in 2013-2014 when another inmate told him he should contact Koen and offer to work as an informant, which he did. After his case was resolved, the informant resumed distributing large amounts of heroin, methamphetamine, marijuana, and cocaine in Florida, California, Arkansas, and elsewhere, while making payments to Koen for protection. The informant paid approximately $31,500 to Koen before he began cooperating with the FBI.

          The informant began working with FBI, and he agreed to set up a controlled delivery of a bribe payment to Koen. Koen and the informant agreed to meet in Las Vegas on December 3, 2018. FBI agents equipped the informant with $9,000 cash and multiple audio recording devices. Koen and the informant met on the sidewalk across from the Bellagio hotel and walked together to the Paris Las Vegas hotel, where they went inside a bathroom away from casino cameras. Once inside, the informant placed the cash in Koen’s backpack, and they left the hotel, each going in different directions.

          Recordings of the encounter revealed that Koen asked the informant, “Did you make this worth it?” The informant responded, “Come on, man, you know I always make it worth it for you.” Koen responded, “I know.” Koen also advised the informant that he should get rid of all his phones and change his address because he expected a search warrant to be executed at his home soon. Koen was arrested when he returned to Arkansas later that day, and he admitted to accepting bribes from the informant.

          “By protecting a drug trafficking organization and accepting bribes from a drug kingpin, former Group Supervisor Nathan Koen deceived and betrayed his brothers and sisters in the DEA,” FBI Little Rock Special Agent in Charge James A. Dawson said. “His disgraceful and corrupt conduct only strengthens our resolve to continue attacking corruption at all levels. We’re grateful for the strong, ongoing partnerships we share with both the Drug Enforcement Administration and U.S. Attorney’s Office.”

          “Today’s sentencing reflects DEA’s commitment to hold accountable any DEA employee who abuses the trust of the American people by violating their oath as a federal law enforcement officer,” said DEA Administrator Anne Milgram. “Nathan Koen put himself ahead of the principles he swore to protect. I commend our federal law enforcement partners who investigated this case and the U.S. Attorneys who prosecuted it.”

          “Koen turned his back on his duty to protect the public. As a DEA Agent, Koen was tasked with investigating drug traffickers. Instead, he accepted a cash bribe and provided a known drug trafficker with sensitive law enforcement information. The Department of Justice Office of the Inspector General will continue to investigate those who engage in this kind of conduct,” said Cloey C. Pierce, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.

          In addition to the term of imprisonment, Judge Miller also sentenced Koen to two years of supervised release following his term of imprisonment. The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Benecia Moore and Chris Givens.

    # # #

    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: Fort Towson Resident Sentenced for Murder

    Source: US FBI

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Thomas Raymond Phillips, III, age 36, of Fort Towson, Oklahoma, was sentenced to a term of life in prison for First Degree Murder in Indian Country.  Phillips was also sentenced to 120 months in prison for one count of Use, Carry, Brandish, and Discharge of a Firearm During and In Relation to a Crime of Violence.  The sentences are set to be served consecutively.

    The charges arose from an investigation by the Choctaw County Sheriff’s Office, the Oklahoma Highway Patrol, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.

    On October 25, 2023, Phillips was found guilty of the charges by a federal jury at trial.   According to investigators, on the evening of December 19, 2020, Phillips fired multiple shots into a Fort Towson bar after being ejected by management for instigating a fight.  One bullet struck a patron, killing the victim at the scene.  The crime occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.

    “The defendant’s malicious and senseless acts stole a life, and the defendant will spend his remaining days in prison paying the price justice demands for his crimes,” said United States Attorney Christopher J. Wilson.  “I commend county, state, and federal law enforcement for their investigative work and the prosecuting attorneys for presenting the case and advocating for the victim.”

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

    Assistant U.S. Attorneys Dean Burris and T. Cameron McEwen represented the United States.

    MIL Security OSI –

  • MIL-OSI Security: Two Drug Dealers Sentenced to Life in Prison for Murder of Federal Witness

    Source: US FBI

          LITTLE ROCK—Two drug dealers will spend the remainder of their lives in prison after conspiring to cause witness tampering resulting in death. Samuel “Big Hit” Sherman, 38, of Batesville, and Donald Bill Smith, 38, of Malvern, were both sentenced today to life in federal prison. There is no parole in the federal system. United States Chief District Judge D. P. Marshall, Jr., imposed the sentences.

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

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

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

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

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

          In September 2021, a jury trial resulted in both Smith and Sherman being convicted of conspiracy to cause witness tampering resulting in death. Smith was also convicted of witness tampering resulting in death, conspiracy to possess with intent to distribute and to distribute methamphetamine, and aiding and abetting the use of a firearm during and in relation to a drug trafficking crime. Smith, in addition to his life sentence, was ordered to serve a 50 year consecutive sentence.

          The case was investigated by the FBI, the Drug Enforcement Agency, and the Hot Springs County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Anne Gardner and Bart Dickinson.

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: January Federal Grand Jury 2024-B Indictments Announced

    Source: US FBI

    United States Attorney Clint Johnson today announced the results of the January Federal Grand Jury 2024-B Indictments.

    The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.

    Bradley Andrew Friend. Coercion and Enticement of a Minor; Production of Child Pornography; Receipt and Distribution of Child Pornography; Possession of Child Pornography. Friend, 40, of Oologah, is charged with enticing and persuading a minor child to engage in sexual activity. He is further charged with producing, possessing, receiving, and distributing materials that depict the sexual abuse of children. The Homeland Security Investigations is the investigative agency. Assistant U.S. Attorney Stacey P. Todd is prosecuting the case. 25-CR-013

    Gary Syd Goldberg. Possession of Child Pornography. Goldberg, 76, of Mannford, is charged with possessing visual images and videos depicting the sexual abuse of children under 12 years old. The Oklahoma State Bureau of Investigation and the Mannford Police Department are the investigative agencies. Assistant U.S. Attorney Mallory Richard is prosecuting the case. 24-CR-253

    Shawn Ray Murnan. Bank Fraud (Counts 1 through 4); False Statements (Counts 5 through 8); Unlawful Monetary Transactions (Counts 9 through 14). Murnan, 56, of Windemere, Florida, is charged with fraudulently submitting 14 applications on behalf of his various businesses seeking more than $2.7 million in CARES Act Funds. Of those applications, Murnan received more than $1.6 million in PPP and EIDL loans. After receiving CARES Act funds, Murnan requested loan forgiveness. More than $1.3 million was forgiven. Two of the PPP loans were funded by a bank located within the NDOK. Each application submitted by Murnan contained false representations and inaccurate accounting regarding employees’ wages, including that he owned no other businesses. The FRB-CFPB Office of the Inspector General, the SBA Office of the Inspector General, and TIGTA are the investigative agencies. Assistant U.S. Attorneys David D. Whipple and Cheryl Baber are prosecuting the case. 25-CR-014

    Xavion Eugene Paggett. Attempted Bank Robbery; Felon in Possession of a Firearm and Ammunition. Paggett, 24, of Broken Arrow, is charged with using a firearm to rob a bank in Nov. 2024. He is further charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The FBI and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Shakema M. Onias is prosecuting the case. 25-CR-012

    Anthony Clay Russell. First Degree Murder in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (superseding). Russell, 32, of Tulsa and a member of the Osage Nation, is charged with maliciously killing Tasha Shepard on Oct. 22, 2024. He is further charged with discharging a firearm during a crime of violence and intentionally assaulting a second victim with a dangerous weapon. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorneys Adam D. McConney and John Brasher are prosecuting the case. 24-CR-365

    Marcos Javier Suazo-Otero; Marcos Javier Suazo-Mancilla. Drug Conspiracy (Count 1); Possession of Methamphetamine with Intent to Distribute (Counts 2 and 3); Possession of Cocaine with Intent to Distribute (Count 4); Maintaining a Drug-Involved Premises (Counts 5 and 6); Unlawful Reentry of a Removed Alien (Count 7); Possession of Firearms in Furtherance of a Drug Trafficking Crime (Count 8); Alien Unlawfully in the United States in Possession of Firearms (Count 9) (superseding). Suazo-Otero, 46, and Suazo-Mancilla, 23, both Mexican nationals, are charged with conspiring to distribute methamphetamine from Jan. 2024 through Nov. 2024. They are further charged with maintaining a residence for drug distribution. Suazo-Otero knowingly possessed methamphetamine with intent to distribute and is additionally charged with unlawfully reentering the United States after having been previously removed in Aug. 2018. Lastly, Suazo-Mancilla knowingly possessed cocaine with intent to distribute, possessed firearms while drug trafficking, and knowingly did so while being an alien illegally in the United States. The Drug Enforcement Administration, the Tulsa Police Department, and the Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney David A. Nasar is prosecuting the case. 24-CR-397

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  • MIL-OSI Security: Searcy Man Sentenced to 30 Years in Prison for Producing Child Pornography

    Source: US FBI

          LITTLE ROCK—A Searcy man who sexually abused numerous young boys for years was sentenced yesterday afternoon for production of child pornography. United States District Court Judge Billy Roy Wilson sentenced John Ronald Ord, 51, to 30 years in federal prison. This 30-year sentence is the maximum allowed by law.

          In 2019, Searcy Police Department began investigating Ord after a teenager reported he had been sexually abused by Ord for several years, beginning in 2012. Their investigation revealed that the defendant had been preying on teenage boys as far back as 1999 by exploiting their weaknesses, such as hunger, lack of a stable environment, or financial needs. Ord would then provide the boys with drugs and alcohol before sexually abusing them. At least 19 of Ord’s victims have been identified.

          Law enforcement obtained a search warrant for Ord’s phone and saw a conversation on a dating app called Grindr. In the app, Ord had a conversation in December 2018 with a 14-year-old boy in which Ord asked the boy to send him a photograph of his penis. This conduct led to the production of child pornography charge in December 2019. Ord was detained at that time and pleaded guilty in December 2021.

          Five of Ord’s victims were present at the sentencing hearing and testified about their abuse at the hands of Ord. In addition to the prison term, Ord was sentenced to a lifetime of supervised release following his imprisonment. The investigation was conducted by the Searcy Police Department, the FBI, and the United States Secret Service. The case was prosecuted by Assistant United States Attorneys Kristin Bryant and John Ray White.

    # # #

    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

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  • MIL-OSI Security: U.S. Attorney’s Office Joins in Recognizing Missing and Murdered Indigenous Persons Awareness Day and Announces Appointment of Regional MMIP Coordinator

    Source: US FBI

    PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon joins its partners across the federal government, as well as people throughout American Indian and Alaska Native communities, in recognizing May 5, 2024, as National Missing and Murdered Indigenous Persons (MMIP) Awareness Day.

    The office also announced today the appointment of an MMIP Regional Coordinator based in the District of Oregon. Cedar Wilkie Gillette, who since June 2020 has served as the District of Oregon MMIP Coordinator, will now serve as regional coordinator for the Northwest Region under the Justice Department’s MMIP Regional Outreach Program. The Northwest Region includes the states of California, Hawaii, Idaho, Montana, Oregon, and Washington.

    Ms. Wilkie Gillette will work alongside Ms. Bree R. Black Horse who was appointed in February 2024 in the Eastern District of Washington to serve as the MMIP Assistant U.S. Attorney for the Northwest Region.

    “We are delighted that Cedar Wilkie Gillette will serve as northwest regional coordinator for the Justice Department’s MMIP Regional Outreach Program. This program is a critical next step in the department’s ongoing effort to address this crisis, which has affected tribes and communities across our region and country. Cedar is abundantly qualified for this position and we are eager for her to expand the great work she has done here in Oregon throughout the Northwest Region,” said Natalie Wight, U.S. Attorney for the District of Oregon.

    “There is still so much more to do in the face of persistently high levels of violence that Tribal communities have endured for generations, and that women and girls, particularly, have endured,” said Attorney General Merrick B. Garland. “In carrying out our work, we seek to honor those who are still missing, those who were stolen from their communities, and their loved ones who are left with unimaginable pain. Tribal communities deserve safety, and they deserve justice. This day challenges all of us at the Justice Department to double down on our efforts, and to be true partners with Tribal communities as we seek to end this crisis.”

    Launched in July 2023, the MMIP Regional Outreach Program permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered indigenous people. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, tribal, local, and state law enforcement and non-governmental partners on MMIP issues. 

    The regional outreach program program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to U.S. Attorney’s Offices promoting public safety in Indian Country and fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022. 

    The Department’s work to respond to the MMIP crisis is a whole-of-department effort. In March, the Departments of Justice and the Interior released their joint response to the Not Invisible Act Commission’s recommendations on how to combat the missing or murdered indigenous peoples and human trafficking crisis.

    Over the past year, the Department awarded $268 million in grants to help enhance Tribal justice systems and strengthen law enforcement responses. These awards have also gone toward improving the handling of child abuse cases, combating domestic and sexual violence, supporting Tribal youth programs, and strengthening victim services in Tribal communities.

    For additional information about the Department of Justice’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website. Click here for more information about reporting or identifying missing persons.

    In early 2022, the District of Oregon established an MMIP Working Group to increase multi-agency communication and collaboration in support of and response to Oregon-connected MMIP cases. The working group includes representatives from each of the nine federally recognized Tribes in Oregon, the FBI, Bureau of Indian Affairs, U.S. Department of Interior Regional Solicitor’s Office, U.S. Marshals Service, Oregon Department of Justice, Oregon State Medical Examiner’s Office, and Oregon State Police.

    Prior to joining the U.S. Attorney’s Office in 2020, Ms. Wilkie Gillette served as a law fellow for Earthjustice, a nonprofit environmental law organization. She has a juris doctorate from the Vermont Law School and a bachelor’s degree in applied social justice and human rights activism from the University of Minnesota. Ms. Wilkie Gillette is an enrolled member of the Mandan, Hidatsa, and Arikara Nation and a direct descendant of the Turtle Mountain Band of Chippewa. She has conducted extensive research on indigenous human rights and environmental justice issues.

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  • MIL-OSI Security: Hot Springs Man Sentenced to 27 Months for Pandemic Funds Fraud

    Source: US FBI

                Hot Springs, Arkansas – David Clay Fowlkes, United States Attorney for the Western District of Arkansas, announced that on May 26, 2022, James Heritage, 39 of Hot Springs, Arkansas, was sentenced to 27 months in prison and ordered to pay $469,082.73 in restitution after pleading guilty to two counts relating to fraud committed against the United States Small Business Administration’s Paycheck Protection Program (PPP) and numerous state unemployment benefits administrators.

    According to plea documents in the case, Heritage applied for and received a PPP loan for $183,937.32, using falsified employee and payroll data.  In addition, Heritage applied for and received Pandemic Unemployment Assistance, a supplemental form of unemployment benefits, from thirty different states, by falsely representing to those states’ benefits administrators that he was eligible for the benefits.

    Both the Paycheck Protection Program and Pandemic Unemployment Assistance program are parts of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law passed in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.

    The case was investigated by the Department of Labor Office of the Investigator General, the Federal Bureau of Investigations, the United States Postal Inspection Service, and the Small Business Administration Office of the Inspector General. Assistant United States Attorney Hunter Bridges prosecuted the case for the United States.

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

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

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  • MIL-OSI Security: Tigard Repeat Offender Sentenced to Federal Prison for Transporting a Victim Across State Lines for Illegal Sexual Activity and Laundering Proceeds Through a Bottled Water Company

    Source: US FBI

    PORTLAND, Ore.—A Tigard, Oregon man with a lengthy criminal history was sentenced to federal prison today for transporting an adult victim across state lines for illegal sexual activity and laundering the proceeds through a Portland-based bottled water company.

    Johnell Lee Cleveland, 42, was sentenced to 108 months in federal prison and seven years’ supervised release. He was also ordered to pay $32,115 in restitution to the Oregon Department of Employment. The sum of restitution Cleveland must pay to his adult victim will be determined at a later date.

    “In the summer of 2020, Johnell Cleveland received a rare early release from federal prison he could have used as an opportunity to chart a new path away from criminality. Unfortunately, he did the exact opposite, diving headfirst into a remarkable series of crimes,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the United States Attorney’s Office for the District of Oregon. “We thank the FBI, IRS, and PPB for their efforts in holding Cleveland accountable and securing this nine-year prison sentence.” 

    “Johnell Cleveland has demonstrated a flagrant disregard for the law,” said Douglas A. Olson, Special Agent in Charge of the FBI Portland Field Office. “Even after serving a prison term, Cleveland continued his chronic criminal behavior with money laundering, wire fraud, and transporting an adult victim for illegal sexual activity. The FBI, along with our partners, is dedicated to maintaining the safety of our communities, and with Cleveland behind bars, our community is more secure.”

    “30 days is long enough to form positive habits; it is also more than long enough to return to bad ones, as Mr. Cleveland unfortunately chose to do,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (CI), Seattle Field Office. “Given a second chance, Mr. Cleveland did not choose to better himself. Instead, he proceeded to cause immense harm to the people and to the communities around him. This sentencing shows that CI, along with our partners in law enforcement, will bring justice to repeat offenders as many times as needed, as Mr. Cleveland is finding out today.”

    According to court documents, in July 2019, Cleveland was sentenced to 57 months in federal prison for distributing cyclopropyl fentanyl, possessing a machine gun and money laundering. In the summer of 2020, nineteen months before his original projected release date, Cleveland sought and was granted a compassionate release from prison based on health risks associated with the COVID-19 pandemic.

    Less than 30 days following his release from prison, Cleveland and an associate submitted a fraudulent insurance policy application for nine pieces of jewelry previously seized by law enforcement. Approximately four months after Cleveland and his associate were issued an insurance policy worth more than $100,000, his associate submitted a false burglary report to the Las Vegas Police Department claiming her Mercedes-Benz sedan and various personal property, including the nine pieces of insured jewelry, had been stolen. Seeking reimbursement, Cleveland quickly notified his insurance company of the purported jewelry theft.

    While his insurance fraud scheme was ongoing, in October 2020, Cleveland devised a separate scheme to fraudulently obtain COVID relief program funds. On October 14, 2020, he applied for Pandemic Unemployment Assistance (PUA) benefits for a five-month period beginning in April 2020, claiming he was unemployed because of the COVID-19 pandemic. In reality, Cleveland was unemployed during this time because he was in federal prison. Despite his false claims, Cleveland’s application was approved, and he began receiving PUA benefits.

    Investigators later learned that during this same time period, Cleveland transported for illegal sexual activity an adult woman he had, in August 2020, commenced a romantic relationship with. Cleveland told the woman that he needed money to get his business ventures off the ground and fund their future together. Over time, Cleveland became less friendly and more menacing toward the woman, demanding she travel frequently and engage in more commercial sex. Meanwhile, Cleveland kept all the money the woman earned and threatened her with various punishments he claimed to have used on other women, including locking her in a dog cage.

    To conceal and disguise the nature of his victim’s proceeds, Cleveland used the money to pay business expenses for the bottled water company, including costs for bottling and manufacturing, rental of corporate office space in Portland, merchandising, and a monthly retainer with a modeling agency.

    On November 3, 2021, Cleveland was arrested without incident in Portland. The same day, investigators seized Cleveland’s vehicle. A subsequent search of the vehicle resulted in the discovery of a secret compartment in the driver-side door that concealed a loaded handgun.

    On October 19, 2021, a federal grand jury in Portland returned an indictment charging Cleveland and his insurance fraud associate with conspiring to commit and committing wire fraud. Later, in on March 10, 2022, Cleveland was indicted a second time for sex trafficking by force, fraud, and coercion; illegally possessing a firearm as a convicted felon; and money laundering. 

    On February 4, 2024, Cleveland pleaded guilty to both counts of his fraud indictment and a three-count superseding criminal information charging him with transportation for illegal sexual activity, illegally possessing a firearm as a convicted felon, and money laundering.

    This case was investigated by the FBI, IRS CI, and the Portland Police Bureau Human Trafficking Unit. It was prosecuted by Peter Sax and Nicole Bockelman, Assistant U.S. Attorneys for the District of Oregon.

    If you or someone you know is in danger, please call 911. If you are a human trafficking victim or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center at 1-888-373-7888 or by texting 233733. Calls and texts are answered 24 hours a day, seven days a week.

    Human trafficking is a serious federal crime where individuals are compelled by force, fraud, or coercion to engage in commercial sex, labor, or domestic servitude against their will. Traffickers exploit and endanger some of the most vulnerable members of our society and cause unimaginable harm. In February 2022, Attorney General Merrick B. Garland launched a new national strategy to combat human trafficking that aims to prevent all forms of trafficking, prosecute trafficking cases, and support trafficking victims and survivors.

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  • MIL-OSI Security: Hartford Man Sentenced to 30 Years for Sexual Exploitation of a Child

    Source: US FBI

                Montgomery, Alabama – On Tuesday, June 7, 2022, Steven Anthony Jackson, a 21-year-old from Hartford, Alabama, was sentenced to 360 months in prison for sexual exploitation of a child, announced United States Attorney Sandra J. Stewart. Following his 30-year prison sentence, Jackson will be on supervised release for the remainder of his life and will be required to register as a sex offender. There is no parole in the federal system.

                According to his plea agreement and other federal court documents, Jackson specifically admitted that, in 2019, he enticed a 12-year-old girl to send nude photos to him via computer or smartphone. Jackson pleaded guilty to the charge on April 18, 2022.

                This case was investigated by FBI offices in Mobile, Alabama; Little Rock, Arkansas; and Columbus, Ohio, along with the Alabama Law Enforcement Agency, the Geneva County, Alabama Sheriff’s Office; and the Knox County, Ohio Sheriff’s Office. Assistant United States Attorney J. Patrick Lamb prosecuted the case.

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  • MIL-OSI Security: Jury Finds Doctor Guilty in $10 Million TRICARE Scheme

    Source: US FBI

          LITTLE ROCK—An Alexander doctor has been convicted for his involvement in a multi-million-dollar kickback conspiracy at the conclusion of a week-long trial. A federal jury found Joe David “Jay” May, 41, guilty on all 22 counts for which he was indicted.

          The jury returned their verdict Thursday evening after deliberating for about three hours. United States District Judge Kristine Baker presided over the trial, and Judge Baker will sentence May at a later date. 

          “Dr. May used his signature as a rubber stamp to help his friends rake in millions of dollars in kickbacks from fraudulent prescriptions,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “His crimes are a reprehensible abuse of his Hippocratic oath and his medical license. Our office and our federal law enforcement partners at the FBI and Department of Health and Human Services Office of Inspector General (HHS-OIG) are resolved to continue to bring to justice all other health care professionals who defraud our nation’s healthcare systems.”

          A grand jury returned an indictment against May in January 2020. The indictment alleged that May signed off on illegitimate prescriptions for pain cream in order to trigger a payout from TRICARE, the nation’s insurance for veterans.  A pharmacy promoter paid recruiters to find TRICARE beneficiaries, regardless of whether they needed the drugs, and then paid others to get medical professionals, including Jay May, to rubber stamp prescriptions for TRICARE beneficiaries.

          TRICARE paid over $12 million for compounded drugs prescribed through this scheme. Evidence at trial indicated that May wrote 226 prescriptions over the course of ten months, for which TRICARE paid $4.63 million. All but one of those prescriptions were supplied by drug sales representatives, Glenn Hudson and Derek Clifton, both of whom have pleaded guilty in the scheme, and directed to prescribers, May and a nurse practitioner named Donna Crowder, who has also pleaded guilty. May accepted cash bribes totaling nearly $15,000 and signed off on the prescriptions without consulting patients and without determining whether or not the prescription was needed.

          One recruiter hosted a meeting at Fisher Armory in North Little Rock. At that meeting, he signed people up for the drugs and offered to pay them $1,000. Thirteen of those patients were routed to Dr. May, who signed each prescription, and this group alone cost TRICARE $370,000. The conspirators learned that reimbursements from TRICARE might fall in May 2015, so April was the last opportunity to profit from the program. In the last ten days of April 2015, May signed 59 prescriptions, for which TRICARE paid $1.4M. During a single 9-week period at the height of the scheme, May deposited $9,925 cash; an FBI forensic accountant testified this was more cash than he deposited in 2014 and 2016 combined.

          “TRICARE is dedicated to serving our veterans, military members, and their families,” said FBI Little Rock Special Agent in Charge James Dawson. “Dr. May displayed a lack of integrity by defrauding millions from our nation’s military insurer and lying to our Agents in an effort to conceal his crimes. The FBI is committed to working alongside our partners at the U.S. Attorney’s Office to protect our service members and their loved ones from corrupt medical professionals like Dr. May.”

          “Dr. May engaged in a kickback scheme that undermined federal health care programs,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General. “This verdict is a testament to strong law enforcement partnerships committed to holding physicians accountable for providing quality care to beneficiaries of these programs,” said HHS-OIG Special Agent in Charge Miranda Bennett.

          The statutory penalties for May’s convictions are: wire fraud, mail fraud, and falsifying records, not more than 20 years imprisonment; violation of the anti-kickback statute, not more than 10 years imprisonment; and conspiracy and making false statements, not more than five years imprisonment. In addition to any sentence imposed, May will also serve an added four years for convictions on two counts of aggravated identity theft. All offenses of conviction include a potential penalty of not more than a $250,000 fine and not more than three years of supervised release.

          The investigation was conducted by the FBI and HHS-OIG. The case was prosecuted by Assistant United States Attorneys Alexander Morgan and Stephanie Mazzanti.           

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

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  • MIL-OSI Security: Butte County Man Indicted for Child Enticement

    Source: US FBI

    SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Kevin Leslie Gipson, 58, of Oroville, charging him with attempted coercion and enticement of a minor to engage in sexual activity, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, Gipson attempted to persuade, coerce, and entice a minor to engage in oral copulation and to commit lewd and lascivious acts on a child under 14 years old.

    This case is the product of an investigation by the Sacramento Sheriff’s Office, the Sacramento Valley Hi-Tech Crimes Task Force/Internet Crimes Against Children Task Force and the Federal Bureau of Investigation. Assistant U.S. Attorney Jessica Delaney is prosecuting the case.

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

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

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