NewzIntel.com

Category: United States of America

  • MIL-OSI Security: FBI Helps Return Missing Musket to Museum of the American Revolution

    Source: US FBI

    Now, investigators had to determine what these items were and where they had been stolen from.  

    Some of these answers came from Scott Corbett, AUSA Newton said. “He had a very good memory and could tell us where Michael had stolen some of the firearms,” she noted. 

    The investigative team also traveled to Cody, Wyoming, to attend a national museum curator’s meeting to see if any experts could help identify these mystery items. 

    “It turns out Michael stole these items from museums from Massachusetts to as far south as Mississippi,” Newton said. “A lot of them were stolen from Pennsylvania. We believe he was responsible for two of the thefts at Valley Forge. He was also responsible for a theft at the U.S. Army War College Museum in Carlisle, Pennsylvania. So, we were able to identify some of these firearms.” 

    Based on the evidence at hand, AUSA Newton explained, “We couldn’t charge him with the thefts, but what we could charge him with was possession of stolen property that had been transported interstate because he’s in Delaware.”  

    Michael Corbett was indicted and pleaded guilty. As part of his plea, he agreed to help recover some of the items that the investigators were initially looking for when they searched his Delaware residence.  

    “Leads in the Corbett case took the FBI Art Crime Team as far west as San Francisco,” Archer added. 

    Coincidentally, during the investigation, a concerned collector called Dr. Stephenson because he believed he might’ve accidentally purchased a stolen rifle. 

    The collector initially purchased the gun from a man named Thomas Gavin, believing it to be a copy of a famous rifle built by Moravian gunsmith John Christian Oerter. But the more he researched, the more he suspected he had the genuine article. The collector turned the rifle over to the authorities. 

    Thomas Gavin turned out to be “a significant museum thief” in his own right, having robbed items from the Valley Forge Park, the Philadelphia Museum of Art, the Academy of Natural Sciences of Drexel University, and additional museums in the greater Philadelphia area. “But he too cooperated and told us what he had stolen,” AUSA Newton said. 

    “We had to then stop, solve that case in order to figure out who stole what from where, in order to then pick the Corbett case back up and bring it home,” Archer recalled of the Gavin section of the overall investigation. “So, it was staggeringly complex across space and time and material.” 

    But just like in Corbett’s case, investigators are still searching for items that Gavin stole, including a rifle that was once owned by naturalist John James Audubon. 

    Even though the investigators’ work is ongoing, the impact of the partnership and the recovery of the artifacts cannot be overstated. 

    “With the 250th anniversary of the American Revolution coming up,” said James Taub, an associate curator at the museum, “the teamwork and partnership between local police and the FBI have given us in Philadelphia and the historical community at large a really strong opportunity to reach people in ways that we haven’t before, through objects that people of my generation haven’t seen and that previous generations might not have seen since before the 200th anniversary of the American Revolution.” 

    Dr. Stephenson echoed that sentiment, noting that “for us, as educator- and preservation-oriented institutions, these objects are irreplaceable.” 

    Stephenson says the museum’s work isn’t done. “It may be that the person who stole an object say 50 years ago may have passed away long ago. In many cases, families may have things that they don’t realize where they came from, how they came into that collection, or things that were sold and passed around.”  

    For this reason, he said, the museum is reexamining how it describes the missing objects, to highlight any valuable details that might spark someone’s memory. The museum is also spreading the word about the stolen items to antique enthusiasts and collectors. 

    “The fact is, the vast majority of people want to do the right thing,” he said. 

    But the FBI stands ready to investigate anyone who knowingly holds onto looted artifacts. 

    “Ultimately,” said Special Agent Archer, “people who know that they are in possession of these stolen items and do the wrong thing, we certainly are prepared to investigate.” 

    MIL Security OSI –

  • MIL-OSI Security: FBI Marks 100 Years of Fingerprints and Criminal History Records

    Source: US FBI

    Director Wray joined past and present CJIS leaders, lawmakers, FBI staff, and dozens of retired fingerprint examiners at the July 10 event, which celebrated 100 years since the Bureau established its Identification Division on July 1, 1924. The new division consolidated 810,000 fingerprint files from the United States Penitentiary in Leavenworth, Kansas, and the National Bureau of Criminal Identification, which had been the keeper of crime data for the International Association of Chiefs of Police since 1896.

    Wray described the history of fingerprint technology in investigations spanning a century.

    “I’m proud that we’ve maintained that focus on growing our capabilities, because there’s simply no other way to remain as effective as a law enforcement and intelligence agency when the threats are as dynamic and evolving as they are today,” Wray said. He also highlighted the introduction of new biometric modalities—like facial recognition, palm prints, and iris scans—as innovations that will help the FBI and its partners better carry out their missions into the future. NGI’s National Iris Service, for example, allows users like police and prison staff to enroll iris images without physical contact, linking a subject’s irises to their respective fingerprint records. “You want to talk about the textbook illustration of innovation,” Wray said. 

    To help mark the occasion, artifacts spanning the fingerprint repository’s century-long history were on display for visitors. Items included vintage fingerprint cards, magnifiers, and the colored pencils that fingerprint examiners have used for generations. And a gallery of images illustrated the progression of fingerprint technology—from taking impressions with ink rollers and paper cards to the digital mobile devices that many agencies use today.

    MIL Security OSI –

  • MIL-OSI Security: Meet the Cyber Action Team

    Source: US FBI

    Across the globe, malicious cyber activity threatens public safety and national and economic security. Criminals target organizations such as schools, hospitals, power and utility companies, and other critical infrastructure entities that serve communities.

    As the lead federal agency for investigating cyberattacks and intrusions, the FBI developed a specialty group—the Cyber Action Team, or CAT—that can deploy across the globe within hours to respond to major cyber threats and attacks against these critical services.

    Composed of about 65 members, CAT is an investigative rapid response fly team that leverages special agents, computer scientists, intelligence analysts, and information technology specialists from across FBI field offices and Headquarters.

    “We respond onsite to victims who may include national government entities, private companies, or even sometimes foreign partner networks that have been compromised by an adversary,” said Scott Ledford, head of the Cyber Action Team and the Advanced Digital Forensics Team. “Our job is to help conduct the investigation—we collect digital evidence and locate, identify, and reverse engineer malware. We also help the victim understand when they were compromised and how, writing a timeline and a narrative of that intrusion with the ultimate goal of identifying who is responsible, attributing that attack.”

    CAT was established in 2005 in response to an increase in the number and complexity of computer intrusion investigations in FBI field offices. At the time, not all field offices had personnel with the cyber expertise necessary to properly respond to and investigate sophisticated computer intrusions.

    “There was this transition that was taking place between what investigations the FBI was responsible for and the types of crimes that we were starting to see,” explained Ledford. “Cyber was such a growing threat at the time, and so it became necessary that some field offices would reach out and say, ‘Hey, do you know of any cyber experts who can help me work through an investigation?”

    As the team formalized its processes and expanded, in 2016, the Presidential Policy Directive 41, “United States Cyber Incident Coordination” was signed, setting forth principles for the federal government’s response to cyber incidents involving government or private sector entities. The FBI was appointed the lead federal agency for cyber threat response activities.

    “From an investigative standpoint, the FBI is unique. We’re one of the few agencies in the U.S. government that has both law enforcement and counterintelligence authorities,” said Ledford. “And those authorities, and the American people’s trust in us, help us to deliver a unique blend of national security and criminal investigative skills, expertise, and resources to implement that blended response and help facilitate an investigation, regardless of whether it leads us overseas or to a courtroom here in the U.S.”

    The bulk of CAT’s cases usually involve the FBI identifying an organization with a particular intrusion that’s either so complex or large-scale that the local field office requests additional assistance.

    In one case, CAT deployed to a health care company that a separate intrusion investigation had identified as compromised. CAT’s response helped lead to the identification of several compromised systems and accounts on their network. While working alongside the company, CAT disrupted the threat—and prevented further exploitation across their network.

    CAT also receives requests from FBI legal attachés, the State Department, the National Security Council, and the White House to assist other countries when they face cyberattacks.

    “It could be a country that doesn’t have the resources or the expertise that the U.S. government has, and they’ve reached out and asked for help,” said Ledford. “There can be a NATO or a non-NATO ally country that says, ‘We’ve been hit hard by this adversary, and we don’t have the localized personnel, we don’t have the resources, we don’t have the expertise to respond to this. Can you help us with it?”

    In another case, CAT deployed overseas to provide incident response support to a NATO ally that had been targeted by a destructive cyberattack. CAT responded and worked together with U.S. partners to determine the initial intrusion vector, identify other networks that were impacted, collect and analyze digital evidence, and ultimately attribute the intrusion to a foreign government. The NATO ally severed diplomatic ties with the foreign government, closed the foreign government’s in-country embassy, and evicted them from the country.

    “We have some talented people, and they work hard every single day,” said Ledford. “It’s an honor to sit alongside them.”

    Key Tactic: Strong Communication Skills

    In addition to excellent technical skills, CAT members are closely vetted for strong communication skills. Ledford explained that part of the CAT applicant selection process entails a multi-day live technical exercise that’s designed and curated by CAT:

    “We design a network environment. We may mimic an industry, for example, an electric utility. And then we compromise that environment, and we litter it with artifacts, digital evidence, and malware. Then we task applicants to investigate this cyber incident and present their findings.

    At the end of the five days, applicants present their findings, and we identify who has the technical capability and expertise to find digital evidence of a crime hidden within this mountain of data that we’ve thrown at them.

    If the applicant passes that phase of that selection exercise, we invite them to participate in a panel presentation. Our CAT members will play the roles of the victims we’re trying to help and their own resource teams, for example, a company CEO, a U.S. attorney, a third-party legal counsel, or IT administrator.

    You’re essentially giving us the narrative of the cyber intrusion. You’re telling us a story about what happened. While some of the panel questions will be very technical in nature, some will be more basic questions—the applicant will need to be able to explain to a CEO, for example, who might not have technical expertise, what the problem was and how to fix it. We’re looking to see whether you can take something that’s exceptionally technically complex and explain it in such a way that everyone in the room understands it.

    We’re also looking for interpersonal ability. For example, in the case of a company CEO, at that moment during a cyberattack, they may be going through one of the most stressful times of their company’s existence—there may be data leaked that can make or break that company’s future and their profits, as well as their ability to employ people and their ability to deliver services to their customers. You need the communications skills to interact with them during a difficult time and gain trust.”

    MIL Security OSI –

  • MIL-OSI Security: Highlighting Safety Measures to Protect Nation’s Food Infrastructure

    Source: US FBI

    “Wherever in the country you may live—from California to Nebraska to Georgia to points in between—the cyber risk and the national security risk for farms and ranches and our food processing facilities is growing exponentially,” said Gene Kowel, special agent in charge of the FBI’s Omaha Field Office, which partnered with the Nebraska Farm Bureau to host the August 12 symposium. “The threats are evolving. They’re becoming more complex and more severe.”

    Examples shared during the daylong event included ransomware attacks that cripple operations, network hacks that take control of systems, and the theft of seeds worth millions of dollars in intellectual property and research.

    Kowel said the FBI is monitoring four major threats to the nation’s agriculture sector, which—like water, power, and transportation—is considered part of the nation’s critical infrastructure. The threats include ransomware attacks, malicious software (malware) from foreign adversaries, theft of data and intellectual property, and bioterrorism.

    Foreign actors—most notably the People’s Republic of China—are actively seeking ways to disrupt the United States’ agriculture industry, Kowel said. He urged farmers, cattle ranchers, and others to add cyber hygiene to their long list of chores. Cyber hygiene includes basic steps like using multi-factor authentication to access networks and backing up critical data.

    “We all know that in agriculture today, almost all of our data is stored in the cloud,” Kowel said. “Almost all of our complex machinery is connected to the internet, connected to the cloud, so protecting that control and protecting that data is critical.”

    MIL Security OSI –

  • MIL-OSI Security: FBI Director Announces Chinese Botnet Disruption, Exposes Flax Typhoon Hacker Group’s True Identity at Aspen Cyber Summit

    Source: US FBI

    The FBI and our partners disrupted a Chinese botnet and freed thousands of impacted devices from its clutches, Director Christopher Wray announced September 18. 

    The botnet, which was operated by a Chinese government-sponsored hacker group known as Flax Typhoon, targeted internet-connected devices such as storage devices, cameras, and video recorders to compromise victims’ systems and steal their confidential data, Director Wray said during a keynote at the 2024 Aspen Cyber Summit in Washington, D.C.

    “Ultimately, as part of this operation, we were able to identify thousands of infected devices, and, then, with court authorization, issued commands to remove the malware from them, prying them from China’s grip,” Wray said.  

    Approximately half of the devices under the botnet’s control were based in the United States, he noted. The hacker group’s targets included organizations in the public and private sectors, as well as academia and the media, he added. Wray also revealed the hacker group’s true identity to be an information security company known as the Integrity Technology Group. “But their chairman has publicly admitted that for years his company has collected intelligence and performed reconnaissance for Chinese government security agencies,” Wray added. 

    Wray called the cyber disruption a success but cautioned that the effort was “just one round in a much longer fight.” 

    “The Chinese government is going to continue to target your organizations and our critical infrastructure—either by their own hand or concealed through their proxies,” Wray said. “And we’ll continue to work with our partners to identify their malicious activity, disrupt their hacking campaigns, and bring them to light.” 

    Saving victims time and money 

    During his remarks, Wray also underscored the Bureau’s dedication to working with victims of cyber intrusions, whether they’re individuals or organizations. According to Wray, reporting ransomware attacks to the FBI can potentially help us: 

    • Recover ransomed data 
    • Negotiate-down ransoms demanded by cybercriminals—or spare victims from having to pay ransoms at all 
    • Help impacted organizations resume their normal operations in a speedy manner 

    “I’m extremely proud to report that, in just the past two years, the FBI has handed out nearly 1,000 decryptors, and we’ve saved victims around the world something like $800 million in ransom payments,” Wray said. 

    Decryptors—also known as decryption keys—function like passwords to unlock data that ransomware criminals hold captive. But, Wray explained, some of those keys require information about the victim to work.  

    So it’s paramount that organizations contact the FBI if they fall victim to ransomware attacks. Otherwise, he cautioned, the Bureau “might not be able to make that match—and we might not be able to save you that ransom payment.” 

    Wray also discussed how information sharing between the Bureau and our public and private sector partners can help the FBI combat ongoing cyberattacks and lessen the impact of future cyber incidents.  

    As an example, he pointed to a recent interagency effort to alert the private sector that a pro-Russian hacktivist group was targeting “operational technology networks.”  

    “They had set their sights across our critical infrastructure—from dams and wastewater systems to the energy, food, and agriculture sectors,” Wray explained.  

    But, he said, the FBI’s joint advisory about the cyber threat allowed private sector organizations to fix the vulnerability these bad actors were using to infiltrate networks, thereby protecting the companies and the American public, alike. 

    “So, if there’s only one thing you take away from my time here today, I hope it’s this: The FBI needs and wants to work with you,” Wray said. “Let us save you money, save you time, and save you from future attacks so that you can keep your organization’s focus where it should be: on your operations, and—together—we can help keep our nation safe.” 

    West Palm Beach investigation updates 

    During his remarks, Wray also addressed the Bureau’s investigation into the September 15 assassination attempt on former President Donald Trump.  

    “For the second time in just over two months, we’ve witnessed what appears to be an attempt to attack our democracy and our democratic process,” he said. “I’m relieved that former President Trump is safe, and I want the American people to know the men and women of the FBI are working tirelessly to get to the bottom of what happened.” 

    Wray acknowledged that the ongoing nature of the investigation limited how much the Bureau could say about the matter. 

    “What I can say is that we have dedicated the full force of the FBI to this investigation, and that runs the gamut from criminal to national security resources, from tactical support to Evidence Response Teams, from forensic scientists to operational technology personnel,” he said.“Together, we’re working around the clock to investigate this.” 

    MIL Security OSI –

  • MIL-OSI Security: McAlester Resident Sentenced to 11 Years for Maiming in Indian Country

    Source: US FBI

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced Cody Ray McFadden, age 36, of McAlester, Oklahoma, was sentenced to 132 months in prison for one count of Maiming in Indian Country.

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

    On December 16, 2024, McFadden pleaded guilty to the charge.  According to investigators, on July 16, 2022, McFadden invited a visitor to his residence. Once inside, McFadden beat the victim, forced the victim into a cage, and padlocked the door.  During the next 36 hours, McFadden proceeded to assault and torture the victim, threatening to kill the victim with a cross bow and intentionally striking at the victim with an axe.  The victim, who sustained a head laceration, burns, bruises, and a broken arm, managed to break free, escape through a window, and run to a neighbor’s home.  Law enforcement responding to the neighbor’s emergency call took McFadden into custody after a brief standoff.  The crime occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.

    “This defendant demonstrated a complete lack of humanity, subjecting the victim to an extended period of violence resulting in unimaginable physical and mental trauma,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater.  “The FBI and our law enforcement partners are committed to rooting out violent offenders through aggressive investigations and prosecutions.”

    “This is the stuff of nightmares, but unfortunately, it was sickeningly real,” said United States Attorney Christopher J. Wilson.  “I commend the bravery of this survivor, the quick work of law enforcement in securing an end to this horrifying ordeal, and the steadfastness of investigators and prosecutors who ensured that McFadden spends the next decade in prison answering for his ruthless crimes.”

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

    Assistant U.S. Attorney Joshua Satter represented the United States.

    MIL Security OSI –

  • MIL-OSI Security: Okmulgee Resident Sentenced to Over 20 Years for Voluntary Manslaughter

    Source: US FBI

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brett Wayne Pigeon, age 45, of Okmulgee, Oklahoma, was sentenced to 126 months in prison for one count of Voluntary Manslaughter in Indian Country, and 120 months in prison for one count of Using, Carrying, Brandishing and Discharging a Firearm in Relation to a Crime of Violence.  The terms will be served consecutively.

    The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Okmulgee Police Department, and the Muscogee (Creek) Nation Lighthorse Police Department.

    On January 6, 2025, Pigeon pleaded guilty to the charges.  According to investigators, on November 27, 2023, law enforcement responding to reports of shots fired discovered the victim deceased from apparent gunshots to the back, head, and hip.  Pigeon was identified as a suspect, and later admitted shooting the victim with a 12-gauge shotgun.    The crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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

    Assistant U.S. Attorneys Patrick M. Flanigan and Rachel Geizura represented the United States.

    MIL Security OSI –

  • MIL-OSI Security: Adair County Resident Pleads Guilty to Federal Firearm Crime

    Source: US FBI

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jimmy Darrell Porter Jr., age 40, of Westville, Oklahoma, entered a guilty plea to one count of Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence, punishable by a minimum of 10 years in prison and a fine up to $250,000.00.

    The Indictment alleged that on August 4, 2024, Porter knowingly used, carried, brandished, and discharged a firearm during and in relation to a crime of violence.

    The charge arose from an investigation by the Federal Bureau of Investigation, the Cherokee Nation Marshal Service, and the Westville Police Department.

    The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.

    A U.S. District Court Judge will determine the sentence to be imposed after considering the U.S. Sentencing Guidelines and other statutory factors.

    Porter will remain in the custody of the United States Marshals Service pending sentencing.

    Assistant U.S. Attorney Jonathan E. Soverly represented the United States.

    MIL Security OSI –

  • MIL-OSI Security: Ecuadorian National Sentenced to 30 Years in Prison for Production of Child Pornography

    Source: US FBI

    HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 23, 2025, Alvaro Andres Valarezo Sandoval, age 35, an Ecuadorian National residing in Miami, Florida, was sentenced by Senior United States District Judge Malachy E. Mannion to 30 years’ imprisonment on two counts of production of child pornography.

    According to Acting United States Attorney John C. Gurganus, Sandoval sexually exploited six Central Pennsylvania minors by deceiving and threatening them into creating and sending him explicit photos and videos between 2013 and 2019.  As part of the scheme, Valarezo Sandoval would often build a rapport with the minor victims by showing affection and then entice and encourage them to send images or videos of themselves that were sexually provocative and/or sexually explicit. If a minor attempted to cease the relationship, Valarezo Sandoval would extort them by threatening to post their explicit images online unless they complied with his demands to continue providing him with sexually explicit content.

    There were at least six victims in central Pennsylvania and at least 30 others worldwide. One victim gave an impassioned statement to the court explaining the devastating impact this crime had on her and her family.

    The case was investigated by the Federal Bureau of Investigation and Pennsylvania State Police. Assistant United States Attorney Michael Scalera prosecuted the case.

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

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Farmington Resident Charged with Sexual Exploitation of a Minor as Part of DOJ/FBI Operation Restore Justice

    Source: US FBI

    PITTSBURGH, Pa. – A resident of Farmington, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal laws regarding the sexual exploitation of a minor, Acting United States Attorney Troy Rivetti announced today.

    The two-count Indictment named Nathan Fike, 40, as the sole defendant.

    According to the Indictment presented to the Court, on or about October 4, 2023, Fike distributed material depicting the sexual exploitation of a minor. The government further alleges that, on or about February 9, 2024, Fike knowingly possessed material depicting the sexual exploitation of a minor. The Indictment occurred in connection with Operation Restore Justice, a coordinated, nationwide enforcement effort to identify, track, and arrest child sex predators that, as announced today by the Department of Justice and the Federal Bureau of Investigation, resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders over a five-day period. The coordinated effort was executed by all 55 FBI field offices, the Child Exploitation and Obscenity Section (CEOS) in the Department’s Criminal Division, and United States Attorneys’ Offices around the country (read the Operation Restore Justice news release here).

    The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

    Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.

    The Federal Bureau of Investigation conducted the investigation leading to the Indictment.

    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 CEOS, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Man Indicted and Arrested for Firearms Violations

    Source: US FBI

    SAN JUAN, Puerto Rico – On December 12, 2024, a federal grand jury in the District of Puerto Rico returned an indictment charging Ángel Javier Avilés-Monzón, a.k.a. “Chimi/Yovngchimi” with two counts for firearms violations. FBI special agents arrested Avilés-Monzón today at the Luis Muñoz Marín International Airport.

    According to court documents, on or about June 4, 2023, and on or about August 25, 2024, Ángel Javier Avilés-Monzón knowingly possessed a machinegun, that is, a pistol of unknown make and model, modified to fire automatically more than one shot without manually reloading by a single function of the trigger.

    If convicted, the defendant faces a maximum penalty of 10 years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico, and Joseph González, Special Agent in Charge of the Federal Bureau of Investigation San Juan Field Office made the announcement.

    Assistant U.S. Attorney (AUSA) Alberto López-Rocafort, Chief of the Gang Section, and AUSA Joseph Russell are prosecuting the case.

    An indictment 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: Arizona Man Receives 22-Year Prison Sentence for Aggravated Sexual Abuse of Child

    Source: US FBI

    ALBUQUERQUE – An Arizona man was sentenced to 22 years in prison for the prolonged sexual abuse of a minor over nearly a decade in the Navajo Nation.

    There is no parole in the federal system.

    According to court documents, between May 16, 2009, and May 15, 2012, Cedric Martinez, 31, engaged in unlawful sexual contact with a minor victim, who was under the age of 12, at a residence in Upper Fruitland, New Mexico, within the Navajo Nation.

    Upon his release from prison, Martinez will be subject to fifteen years of supervised release and must register as a sex offender.

    U.S. Attorney Ryan Ellison and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

    The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorneys Brittany DuChaussee and Meg Tomlinson are prosecuting the case. 

    MIL Security OSI –

  • MIL-OSI Security: Eight Individuals Plead Guilty to Wide-Ranging Scheme to Monopolize Transmigrante Forwarding Industry, Fix Prices, Extort Competitors, and Launder Money

    Source: US FBI

    The U.S. Department of Justice today announced that eight defendants have pleaded guilty for their conduct in a long-running and violent conspiracy to monopolize the transmigrante forwarding agency industry in the Los Indios, Texas, border region near Harlingen and Brownsville, Texas. The three remaining defendants to the superseding indictment remain at large as fugitives. Transmigrantes are individuals who transport used vehicles and other goods from the United States through Mexico for resale in Central America. Transmigrante forwarding agencies are U.S.-based businesses that provide services to transmigrante clients, including helping those clients complete the customs paperwork required to export vehicles into Mexico.

    “The Criminal Division is committed to holding violent criminal organizations accountable in whatever markets in which they operate,” said Matthew R. Galeotti, head of the Justice Department’s Criminal Division. “Transnational criminal organizations that use violence to dominate industries will be prosecuted to the fullest extent of the law.”

    “These guilty pleas bring to justice individuals who used violence and extortion to fix prices and monopolize the market for essential services that Americans rely on to earn a living,” said Director of Criminal Enforcement Emma Burnham of the Justice Department’s Antitrust Division. “The Antitrust Division will continue to use every tool at its disposal to protect the public by prosecuting violent criminals – including those who aim to corrupt America’s free markets.”

    “Price fixing harms both the public and the business community,” said U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas. “Schemes like this artificially drive up prices, forcing consumers to pay more than they ordinarily would. At its core, such market collusion is nothing more than theft from consumers.”

    “These defendants tried to rule through fear, using threats, violence and intimidation to eliminate competition,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Their guilty pleas send a clear message that price fixing and market allocation are serious crimes, and we will hold those accountable who put profits over the law and fair commerce.”

    “Today’s pleas reflect the relentlessness of the federal government’s pursuit of transnational criminal organizations that exploit international trade and the U.S. economy,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI) San Antonio. “This violent scheme was fueled by greed that undermined the safety and economic security of the border region; HSI has prioritized significant resources to protect the U.S. and our legitimate trade.”

    According to documents filed in the U.S. District Court in Houston, defendants Carlos Martinez also known as “Cuate,” Pedro Antonio Calvillo Hernandez, Roberto Garcia Villareal, Sandra Guerra Medina, and Mireya Miranda pleaded guilty to one count of conspiracy to fix prices and allocate the market for transmigrante forwarding agency services in violation of Section 1 of the Sherman Act, and one count of conspiracy to monopolize the same market in violation of Section 2 of the Sherman Act. The conspirators fixed the prices for transmigrante forwarding agency services and created a centralized entity known as the “Pool” to collect and divide revenues among the conspirators, limit competition from other agencies, and increase prices for their services. Market participants who were not part of the conspiracy had to join and pay into the Pool. Pool members enforced the rules of the Pool by monitoring whether forwarding agencies were charging the agreed-upon prices, including by posting prices publicly on social media, and monitoring whether agencies were paying into the Pool as required.

    Martinez, Calvillo, Villareal, and Carlos Yzaguirre pleaded guilty to one count of conspiracy to interfere with commerce by extortion. Martinez also pleaded guilty to one count of interference with commerce by extortion. The defendants conspired to force forwarding agencies to pay money to the Pool and to pay other extortion fees, including a “piso” for every transaction processed in the industry as well as a “fine” for operating in the market outside of Pool rules. The conspirators perpetrated acts of intimidation, coercion, and violence in furtherance of the antitrust and extortion conspiracies. Defendant Martinez was responsible for at least $9.5 million in extortion payments.

    Martinez and Jose de Jesus Tapia Fernandez also pleaded guilty to a money laundering conspiracy, through which they laundered extortion proceeds. Cash obtained from the extortion conspiracy was deposited into bank accounts controlled by Martinez and his family, and those deposits were made to conceal and disguise the nature, source, ownership, and control of the proceeds. Juan Hector Ramirez Avila pleaded guilty to one count of structuring a financial transaction to evade reporting requirements.

    Martinez agreed to forfeit four real properties and $375,000 in seized U.S. currency, to pay a fine, and to pay full restitution to extortion victims. Guerra, Miranda, Calvillo, and Villareal have also agreed to pay fines as part of their plea agreements.

    Rigoberto Brown and Miguel Hipolito Caballero Aupart, and Diego Ceballos-Soto were also charged in the superseding indictment and remain fugitives. Anyone with information about their whereabouts is asked to contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.

    Conspiracies to allocate the market, fix prices, or monopolize in violation of the Sherman Act carry a maximum penalty of 10 years’ imprisonment and a maximum $1 million fine for an individual. Conspiracy to interfere with commerce by extortion in violation of the Hobbs Act carries a maximum penalty of 20 years’ imprisonment and a maximum $250,000 fine. Money laundering conspiracy carries a maximum penalty of 20 years’ imprisonment and a maximum $500,000 fine. Structuring a financial transaction to evade reporting requirements carries a maximum penalty of five years’ imprisonment and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The Justice Department’s Antitrust Division, the Criminal Division’s Violent Crime and Racketeering Section (VCRS), the U.S. Attorney’s Office for the Southern District of Texas, HSI, and the FBI are investigating the case.

    Trial Attorneys Brittany E. McClure, Anne Veldhuis, and Michael G. Lepage of the Antitrust Division, Trial Attorney Christina Taylor of VCRS, and Assistant U.S. Attorney Alexander L. Alum for the Southern District of Texas are prosecuting the case.

    Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.

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  • MIL-OSI Security: Theodore Roosevelt’s Historic Pocket Watch Recovered

    Source: US FBI

    When a Florida auctioneer was asked to auction off a pocket watch from the late 1800s, his research led him to believe that he may be holding a piece of U.S. presidential history.

    The auctioneer realized that the watch may have belonged to Theodore “Teddy” Roosevelt, the 26th president of the United States. He contacted two historic sites closely associated with Roosevelt—Sagamore Hill National Historic Site and Theodore Roosevelt Inaugural National Historic Site—who confirmed the authenticity of the watch.

    Roosevelt’s watch had been in possession of Sagamore Hill National Historic Site since he died in 1919. They loaned the watch to the Theodore Roosevelt Inaugural National Historic Site in 1971 for a six-year term to be shown in an exhibition. The loan was extended, but, unfortunately, the watch was reported stolen from the site in Buffalo, New York, on July 21,1987, and wouldn’t be identified again until 2023 at the Florida auction house.

    Since Sagamore Hill National Historic Site and the Theodore Roosevelt Inaugural National Historic Site fall under the jurisdiction of the National Park Service (NPS), they reached out to NPS to recover the stolen artifact. NPS, the lead investigative agency, contacted the FBI Art Crime team for additional assistance. Both the NPS and FBI confirmed that this was the watch stolen almost 40 years earlier.

    “This watch was a fairly pedestrian Waltham 17 jewel watch with an inexpensive coin silver case. It’s a ‘Riverside’ grade and model ‘1888’ with a hunter-style case, meaning it has a lid on either side which fold and encase the dial and the movement,” said Special Agent Robert Giczy, a member of the FBI Art Crime Team who investigated the provenance of the watch in this case.

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  • MIL-OSI Security: President and CEO of Las Vegas-Based Company Pleads Guilty for Role in Investment Fraud Scheme Where He Stole Millions in Victim Investor Funds

    Source: US FBI

    LAS VEGAS – A Nevada man pleaded guilty yesterday to one count of wire fraud stemming from his role in a years-long fraud scheme, during which he stole more than $6.1 million in victim investor funds.

    According to court documents, Mykalai Kontilai, formerly Michael Contile, 55, of Las Vegas, facilitated an investment fraud scheme involving his company, Collector’s Coffee Inc., doing business as Collector’s Café (Collector’s Coffee), a company incorporated in California and headquartered in Las Vegas. From 2012 to 2018, Kontilai made or caused to be made numerous materially false and misleading representations to induce victims to invest in Collector’s Coffee — a company he claimed was on the verge of launching an online auction house for third-party owned collectibles, such as Hollywood and sport memorabilia. As a result of Kontilai’s numerous false and misleading statements, including that investor funds would be used for legitimate business purposes, that Kontilai had personally invested millions of his own money in the company, and that he did not take a salary, Kontilai successfully raised approximately $23 million from Collector’s Coffee investors. However, rather than using the proceeds as represented, Kontilai stole approximately $6.1 million for his own personal use, including for the purchase of luxury goods, apartments, and vehicles.

    The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai for misappropriating investor funds in or around 2017. Kontilai obstructed the investigation by forging documents that he caused to be transmitted to the SEC and lied under oath to the SEC. Kontilai was charged in connection with this conduct both in the present case on June 3, 2020, and in a separate case in the District of Colorado on March 10, 2020. While under investigation but prior to charging, Kontilai fled to Russia and was ultimately arrested on an Interpol Red Notice in Germany in 2023. He was extradited back to the United States to face the pending charges in May. As part of the plea agreement in this case, the government will move to dismiss the Colorado case at sentencing.

    Kontilai pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on Dec. 4 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jason M. Frierson for the District of Nevada; Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office; and Special Agent in Charge Carissa Messick of IRS Criminal Investigation (IRS-CI) made the announcement.

    The FBI and IRS-CI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the extradition from Germany of Kontilai.

    Trial Attorneys Brandon Burkart and Sara Hallmark of the Criminal Division’s Fraud Section (FRD) and Assistant U.S. Attorney Jessica Oliva for the District of Nevada prosecuted this case. Former FRD Trial Attorney Emily Scruggs provided valuable assistance. 

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  • MIL-OSI Security: Las Vegas Man Sentenced to Prison for Defrauding More Than $7 Million From Loan Lenders

    Source: US FBI

    LAS VEGAS – A Las Vegas resident was sentenced today by United States District Judge Gloria M. Navarro to 51 months in prison to be followed by three years of supervised release for orchestrating a scheme to defraud loan lenders and cause more than $7 million in losses.

    According to court documents, from February 1, 2017 to October 1, 2018, Brandon David Sattler, 47, devised a scheme to defraud and obtain loans from three individual lenders. As part of the scheme, Sattler made false representations that his company needed loans to fulfill renovation contracts that he had with one hotel and casino and claimed to hold with other hotels and casinos. Sattler altered information from his bank to show his bank account held more than it actually did in order to influence the three individual lenders to loan money to his company. After obtaining the loans, Sattler made misrepresentations in order to extend the maturity date of the loans and delay the deadline for repayment. In total, Sattler caused a loss of more than $7 million.

    Sattler pleaded guilty to one count of wire fraud. He has two prior convictions for fraud in California and Texas.

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

    This case was investigated by the FBI, and Assistant United States Attorney Daniel Schiess prosecuted the case.

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  • MIL-OSI Security: President and CEO of Las Vegas-Based Company Sentenced for Role in Investment Fraud Scheme Where He Stole Millions in Victim Investor Funds

    Source: US FBI

    LAS VEGAS — A Nevada man was sentenced yesterday to 51 months in prison and was ordered to pay $6.1 million in restitution stemming from his role in a years-long fraud scheme.

    According to court documents, Mykalai Kontilai, formerly Michael Contile, 55, of Las Vegas, facilitated an investment fraud scheme involving his company, Collector’s Coffee Inc., doing business as Collector’s Café (Collector’s Coffee), a company incorporated in California and headquartered in Las Vegas. From 2012 to 2018, Kontilai made or caused to be made numerous materially false and misleading representations to induce victims to invest in Collector’s Coffee — a company he claimed was on the verge of launching an online auction house for third-party owned collectibles, such as Hollywood and sport memorabilia. As a result of Kontilai’s numerous false and misleading statements, including that investor funds would be used for legitimate business purposes, that Kontilai had personally invested millions of his own money in the company, and that he did not take a salary, Kontilai successfully raised approximately $23 million from Collector’s Coffee investors. However, rather than using the proceeds as represented, Kontilai stole approximately $6.1 million for his own personal use, including for the purchase of luxury goods, apartments, and vehicles.

    The U.S. Securities and Exchange Commission (SEC) began investigating Kontilai for misappropriating investor funds in or around 2017. Kontilai obstructed the investigation by forging documents that he caused to be transmitted to the SEC and lied under oath to the SEC. Kontilai was charged in connection with this conduct both in the present case on June 3, 2020, and in a separate case in the District of Colorado on March 10, 2020. While under investigation but prior to charging, Kontilai fled to Russia and was ultimately arrested on an Interpol Red Notice in Germany in 2023. He was extradited back to the United States to face the pending charges in May.

    On Nov. 21, Kontilai pleaded guilty to one count of wire fraud. As part of the plea agreement in this case, the government has moved to dismiss the Colorado case.

    Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jason M. Frierson for the District of Nevada; Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office; and Special Agent in Charge Carissa Messick, IRS Criminal Investigation (IRS-CI)’s Phoenix Field Office made the announcement.

    FBI and IRS-CI investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the extradition from Germany of Kontilai.

    Trial Attorneys Brandon Burkart and Sara Hallmark of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva for the District of Nevada prosecuted this case. Former Fraud Section Trial Attorney Emily Scruggs provided valuable assistance.

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  • MIL-OSI Security: Sacramento Man Sentenced to 15 Years in Prison for Armed Bank Robberies

    Source: US FBI

    RENO – A Sacramento, Calif., resident was sentenced yesterday by United States District Judge Miranda M. Du to 15 years in prison to be followed by five years of supervised release for committing two armed robberies of financial institutions.

    Devon Jones, 32, pleaded guilty to one-count each of interference with commerce by robbery, bank robbery, and discharging a firearm during and in relation to a crime of violence.

    According to court documents and admissions made by Jones, on January 24, 2022, he robbed a money lending business in Reno. During the robbery, he pointed a semi-automatic 9mm pistol at an employee and demanded money. Jones then fired a round and fled the scene with cash. Later, on January 27, 2022, Jones robbed a bank in Carson City. After he entered the bank, he started yelling and fired a shot. Then, he approached a teller and demanded money. Jones fired another shot after noticing alarm lights flashing. He ordered all the employees to the ground and fired another shot before leaving the bank with the stolen cash.

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

    The case was investigated by the FBI. Assistant United States Attorney Megan Rachow prosecuted the case.

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  • MIL-OSI Security: Schenectady Man Sentenced for Assaulting Trial Witness’s Son

    Source: US FBI

    ALBANY, NEW YORK – Patrick Civitello, age 19, of Schenectady, New York, was sentenced today to 18 months in prison for assaulting a 15-year-old boy in retaliation for the boy’s mother testifying in a federal criminal trial.

    Acting United States Attorney Daniel Hanlon and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    Patrick Civitello is the son of Jeffrey Civitello Sr. and the younger brother of Jeffrey Civitello Jr., both of whom were convicted of federal drug trafficking charges following a jury trial in Albany in April 2023. A witness, identified in the indictment as V-1, testified at that trial.

    In pleading guilty, Patrick Civitello admitted that on the evening of May 19, 2024, while at a restaurant in Glenville, New York, he observed V-1, who was with her 15-year-old son (“V-2”). At the time he observed V-1, Patrick Civitello was speaking on the phone with Jeffrey Civitello Jr. (who was incarcerated), and Patrick Civitello told his brother that he had just seen V-1 walk into the restaurant. Patrick Civitello then said “I gotta rag this bitch, I gotta call you back,” meaning that he intended to retaliate against V-1 for her trial testimony. Jeffrey Civitello Jr. responded, “Ok run down, but do it away from everyone if you could.”

    V-1 and V-2 then exited the restaurant and headed to their vehicle in the parking lot. Patrick Civitello, who was following V-1 and V-2 out of the restaurant, briefly stopped in the parking lot to remove his watch and a cross-body bag. Having placed those items on the ground of the parking lot, Patrick Civitello charged in the direction of V-1 and V-2. He punched V-2 in the head, and continued to punch and kick V-2 after V-2 fell to the ground. V-2 suffered minor abrasions and bruises, including to his head, neck, and hand. 

    FBI agents arrested Patrick Civitello on June 13, 2024, on a criminal complaint. As he was being transported to the FBI Albany Field Office, he asked agents, “Don’t you think the witness deserved it?” and “What do you expect when you betray family and people you trust?”

    United States District Judge Mae A. D’Agostino called the assault an “attack on the justice system” that sends “a chilling message to anyone who might be subpoenaed to trial” to testify. She ordered Patrick Civitello to pay a $5,000 fine and to serve a 3-year term of post-imprisonment supervised release.

    The FBI’s Capital District Safe Streets Gang Task Force investigated this case, with assistance from the Glenville Police Department. Assistant U.S. Attorneys Michael Barnett and Dustin Segovia prosecuted this case.

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  • MIL-OSI Security: Timothy Gabriel Imprisoned on Federal Firearms Charge

    Source: US FBI

    Burlington, Vermont –  The United States Attorney’s Office for the District of Vermont announced that Timothy Gabriel, 31, who most recently has been living in the Rutland area, was sentenced today in United States District Court in Burlington to 60 months of imprisonment following his guilty plea to a charge that he possessed a firearm as a convicted felon. Senior U.S. District Judge William Sessions III also ordered that Gabriel serve a three-year term of supervised release after he completes his prison sentence. He directed that the federal sentence run concurrently to state sentences that Gabriel is serving on related and unrelated cases. Gabriel has been held in federal custody since his arrest in October 2023.

    According to court records, someone stole a Vermont State Police cruiser from a residence in Rutland where it was parked in the pre-dawn hours of October 17, 2023. A few hours later, the car was found parked behind a downtown Rutland business. Investigators found that a police-issued Sig Sauer rifle had been forcibly removed from a secure locking device in the vehicle. Surveillance camera footage from businesses near where the cruiser was found showed the car enter a parking lot before dawn. The footage depicted a man, later identified as Timothy Gabriel, get out of the car, then leave the area with what appeared to be a rifle in his hand. DNA evidence later connected Gabriel to blood found inside the stolen cruiser. Gabriel is prohibited from possessing any firearms because he has several prior convictions in Vermont for felony offenses. Gabriel was arrested in Burlington on the afternoon of October 18, 2023. Court records show that Gabriel traded the stolen rifle for drugs. Law enforcement recovered the police rifle from a bag abandoned beside U.S. Route 7 near Bennington.

    Acting United States Attorney Michael P. Drescher commended the collaborative investigatory efforts of the Vermont State Police, the Rutland Police Department and the Federal Bureau of Investigation.

    Gabriel is represented by Federal Public Defender Michael Desautels. The prosecutor is Assistant U.S. Attorney Gregory Waples.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

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  • MIL-OSI Security: Rapids Theatre Owner Pleads Guilty to Defrauding COVID Relief Programs Out of More Than $1.8 Million

    Source: US FBI

    BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that John L. Hutchins, 71, of Lewiston, NY, pleaded guilty before Judge Meredith A. Vacca to conspiracy to commit wire fraud and bank fraud, which carry a maximum penalty of 30 years in prison and a $1,000,000 fine.

    Assistant U.S. Attorneys Paul E. Bonanno and Douglas A. C. Penrose, who are handling the case, stated that between March 2020, and March 2024, Hutchins conspired with co-defendant Roberto Soliman and others to file fraudulent loan applications under the Economic Injury Disaster Loan (EIDL), the Paycheck Protection Program (PPP), and the Shuttered Venue Operators Grant (SVOG). The loans available for these programs were designed to provide emergency financial assistance pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES Act). Hutchins and Soliman applied for loans under the following companies, which were owned by Hutchins:

    •           Rapids Theatre Niagara Falls, USA, Inc.

    •           1711 Main, LLC

    •           Bear Creek Entertainment, LLC

    •           Hutch Enterprises, LLC

    •           The Hutchins Agency, LLC

    •           CWE Entertainment, Corp. (owned by defendant Soliman)

    Between March and August 2020, Hutchins and Soliman received five Economic Injury Disaster Loans totaling $779,500.00. In addition, they received SVOG loans totaling $989,905.05, a PPP loan from Bank on Buffalo totaling $74,838, and a PPP loan from Northwest Bank totaling $41,140. In support of each of the loans, Hutchins and Soliman submitted false revenue and expense figures for the businesses on the loan applications.

    Charges remain pending against Roberto Soliman.

    The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent-in-Charge Harry Chavis, U.S. Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, and the New York State Office of Professional Discipline. 

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  • MIL-OSI Security: Private Investigator Sentenced to 18 Months in Prison for Acting as an Illegal Agent of the People’s Republic of China

    Source: US FBI

    Michael McMahon, a Former New York City Police Department Sergeant, Was Convicted at Trial for Participating in a Scheme to Stalk and Coerce a U.S. Resident to Return to the PRC as Part of the PRC’s “Operation Fox Hunt”

    Earlier today, in federal court in Brooklyn, Michael McMahon was sentenced by United States District Judge Pamela K. Chen to 18 months in prison for acting as an illegal agent of the government of the People’s Republic of China (PRC), as well as for interstate stalking and conspiracy to commit such acts in connection with his participation in a scheme to coerce a U.S. resident to return to the PRC as part of its international repatriation effort known as “Operation Fox Hunt.”  McMahon and co-defendants Zhu Yong and Congying Zheng were convicted by a federal jury in June 2023 following a three-week trial.  As part of his sentence, McMahon was also ordered to pay a fine of $11,000.

    John J. Durham, United States Attorney for the Eastern District of New York; Sue J. Bai, head of the Justice Department’s National Security Division; Terence G. Reilly, Acting Special Agent in Charge, Federal Bureau of Investigation, Newark Field Office (FBI); and Michael Alfonso, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI New York) announced the sentences. 

    “McMahon, a former law enforcement officer who swore an oath to protect the public, went rogue and dishonorably engaged in a scheme at the direction of the People’s Republic of China, terrorized victims living in the New York metropolitan area, and shattered their sense of safety and security,” stated United States Attorney Durham.  “Thanks to the efforts of law enforcement, the defendants’ plan to coerce the victims to return to China failed, and the defendants have instead been brought to justice for their role in China’s insidious Operation Fox Hunt.  My Office remains unwavering in its commitment to exposing and undermining efforts by foreign governments to perpetrate transnational repression schemes that threaten our national security interests and harm individuals living in the United States.” 

    Mr. Durham expressed his appreciation to the Department of State’s Diplomatic Security Service and the FBI’s New York Field Office for their work on the case. 

    “Most private investigators operate within the bounds of the law and ethical conduct. McMahon knew exactly what he was doing—and at trial, we proved his knowing and willing participation in this scheme,” stated FBI Special Agent in Charge Reilly.  “His client, the People’s Republic of China, has invested years and millions of dollars trying to silence dissent beyond its borders. When those efforts cross into our country, they threaten our national security.  The PRC needs to understand: we will not tolerate it.”

    “This defendant allowed himself to become a partner in the PRC’s cruel harassment and intimidation campaign,” stated HSI New York Special Agent in Charge Alfonso.  “HSI, together with our federal counterparts, will continue to outfox our adversaries’ attempts to circumvent U.S. regulations, undermine national security, and target the American public.”

    As proven at trial, between approximately 2016 and 2019, McMahon and his co-conspirators participated in an international campaign to threaten, harass, surveil, and intimidate John Doe #1 and his family in order to force him and his wife, Jane Doe #1, to return to the PRC to face purported corruption charges.  Beginning in 2012, John Doe #1 and Jane Doe #1 had been targeted for repatriation as part of the PRC’s transnational repression programs known as “Operation Fox Hunt” and “Operation Sky Net.”  John Doe #1 and his family had accordingly sought to keep their address out of public records.

    Yong hired McMahon, a retired NYPD sergeant working as a private investigator, to locate John Doe #1.  McMahon obtained sensitive information about John Doe #1, which he then reported back to Zhu and others, including a PRC police officer.  McMahon also conducted surveillance outside the New Jersey home of John Doe #1’s relative and provided Zhu and PRC officials with detailed reports of what he observed.  The operation was supervised and directed by several PRC officials, including a PRC police officer and a PRC prosecutor.

    As proven at trial, McMahon knew the operation was intended not only to locate John Doe #1, but to coerce him to return to the PRC by exerting pressure on his family members.  In April 2017, PRC officials threatened to jail John Doe #1’s sister, who lived in the PRC, in order to coerce John Doe #1’s then-82-year-old father to travel from the PRC to their relative’s home in New Jersey.  John Doe #1’s father, who had recently suffered a brain hemorrhage, was so frail that a doctor accompanied him for the trip.  McMahon followed John Doe #1’s father from the relative’s New Jersey home, and, by doing so, was able to learn John Doe #1’s address. McMahon immediately provided this information to a PRC operative. 

    On September 4, 2018, Zheng and another co-conspirator drove to the New Jersey residence of John Doe #1 and Jane Doe #1 – at the address that McMahon had provided – where they pounded on the front door, attempted to enter the house, and then peered through the windows in the back of the home.  They left a note on the front door informing John Doe #1 that his “wife and children will be okay” if John Doe #1 surrendered himself to face a ten-year prison term in the PRC.

    McMahon knew that the subjects of his investigation were wanted by the PRC government, a fact that he texted about with another investigator he hired to help him.  Following his arrest, McMahon acknowledged knowing that his employers wanted to get the victim back to China “so they could prosecute him.”  After providing the victims’ address, McMahon told his surveillance partner that he was “waiting for a call” to find out what to do next.  McMahon’s partner responded, “Yeah.  From NJ State Police about an abduction,” to which McMahon responded “Lol.”  McMahon later suggested to a PRC co-conspirator that they “harass” John Doe #1 by “[p]ark[ing] outside his home and let[ting] him know we are there.”  McMahon took other investigative steps designed to harass the victims, such as researching their daughter’s university residence and college major.

    McMahon was paid more than $19,000 in total for his role in the illegal repatriation scheme.  In an apparent attempt to conceal the source of payments from his PRC clients, McMahon deposited those payments into his son’s bank account, the only time he had done so with client payments.

    Previously, in January 2025, Zhu and Zheng were sentenced respectively to 24 months’ and 16 months’ imprisonment.  Three additional co-defendants pleaded guilty in connection with their roles in the PRC-directed harassment and intimidation campaign.  They are awaiting sentencing.  Five co-defendants in the indictment, Hu Ji, Li Minjun, Tu Lan, Zhu Feng, and Zhai Yongqiang are fugitives.

    The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States.  If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.

    The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Meredith A. Arfa and Irisa Chen are in charge of the prosecution, with assistance from Trial Attorneys Christine A. Bonomo and Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.  Paralegal Specialist Rebecca Roth also has provided valuable assistance.

    The Defendants:

    MICHAEL MCMAHON
    Age: 57
    Mahwah, New Jersey

    ZHU YONG
    Age: 68
    East Elmhurst, New York

    CONGYING ZHENG
    Age: 29
    Brooklyn, New York

    E.D.N.Y. Docket No. 21-CR-265 (S-1) (PKC)

    MIL Security OSI –

  • MIL-OSI Security: Ringleader of COVID-19 Relief Fraud Scheme Sentenced to Federal Prison

    Source: US FBI

    CINCINNATI – Joseph Lentine III, 55, of Cincinnati, was sentenced in U.S. District Court to 63 months in prison for orchestrating a COVID-19 relief fraud scheme involving millions of dollars.

    According to court documents, Lentine oversaw a fraud scheme in which he prepared and filed fraudulent loan applications and controlled a significant portion of the loan proceeds once obtained. He knowingly and intentionally made false statements to receive funds to which he and other applicants were not entitled. In addition to defrauding Small Business Administration loan programs, Lentine also fraudulently sought unemployment assistance and emergency rental assistance.

    In total, Lentine submitted more than 20 loan applications seeking more than $3 million and obtaining $1.5 million.

    The defendant personally received more than $450,000 in PPP loan proceeds related to this scheme and used the money to buy a yacht and a Mercedes Benz vehicle.

    As part of his sentence, Lentine was ordered to pay $1.2 million in restitution to the Small Business Administration and nearly $33,000 to the Ohio Department of Job and Family Services.

    Lentine pleaded guilty in April 2023 to conspiring to commit bank fraud and making a false statement on a loan or credit application.

    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 yesterday by U.S. District Court Judge Jeffery P. Hopkins. Assistant United States Attorney Ebunoluwa A. Taiwo is representing the United States in this case.

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  • MIL-OSI Security: Jury Convicts Two Defendants Who Were Charged with 23 Other Ohioans in Narcotics Distribution Ring

    Source: US FBI

    One defendant also convicted of sex-trafficking victims through use of drug withdrawals, violence

    COLUMBUS, Ohio – A federal jury has convicted two local men for their roles in a narcotics distribution ring involving bulk amounts of fentanyl, crack cocaine, cocaine, methamphetamine & other narcotics. As part of this case, the government has seized more than $1.7 million, 50 firearms, and nine vehicles, including a motorcycle. One of the defendants convicted at trial also sex-trafficked at least three adult victims.

    The jury found David Price, 56, of Columbus, guilty on all counts, and Tavaryyuan Johnson, 25, of Columbus, guilty on drug trafficking counts.

    The verdict was announced on Feb. 5 following a trial that began on January 13, 2025 before U.S. District Judge Edmund A. Sargus, Jr.

    A multi-agency law enforcement task force initially announced the case in July 2022 after a federal grand jury initially indicted 11 defendants for distributing bulk amounts of fentanyl, cocaine, and crack cocaine in central Ohio within 1,000 feet of a Columbus elementary school.

    A superseding indictment returned in October 2022 charged additional co-conspirators with distributing those same drugs in addition to methamphetamine, heroin, marijuana, Xanax and Oxycodone.

    Price, who is also known as “DP,” was charged in a third superseding indictment in December 2024 with 11 drug, firearm and sex trafficking crimes. He faces a minimum of 25 years and up to life in prison.

    Johnson is also known as “Gucci” and “TJ,” and was also charged in a third superseding indictment in December 2024. He was convicted of four drug offenses, including using a family residence in Columbus as his stash house for bulk amounts of narcotics. Johnson faces a minimum of 10 years and up to life in prison.

    According to court documents and trial testimony, the two men were part of a conspiracy to distribute and possess to distribute 400 grams or more of fentanyl, five kilograms or more of cocaine, 280 grams or more of “crack” cocaine and 100 grams or more of heroin, as well as marijuana, oxycodone and alprazolam. The drug trafficking organization operated from January 2008 until it was dismantled by law enforcement in 2022.

    Drug offenses took place at residences on Burgess and Harris avenues, which are within 1,000 feet of Burroughs Elementary School.

    In July 2021, Price distributed fentanyl, methamphetamine and cocaine that resulted in the overdose death of an adult female.  The testimony at trial indicated he purposefully killed her to get rid of her as she was talking to the police about his drug business.

    The government also proved beyond a reasonable doubt at trial that Price conspired to commit sex trafficking. From 2016 until 2022, Price and other members of the conspiracy would force and/or coerce adult female drug addicts into performing commercial sex acts by providing, withholding, or threatening to withhold controlled substances and lodging. Law enforcement’s investigation showed that various women engaged in a “rinse and repeat” cycle where they would be allowed to stay at a drug residence associated with Price, receive a front of drugs so they were not in active drug withdrawal, go to Sullivant Avenue, have sex for money, pay the debt from the front drugs, and then be allowed to remain at the house.

    Price was also found guilty of three counts of sex trafficking related to his violence and coercion towards three adult females.  The testimony at trial indicated that he would lock the females inside his residence for days or weeks at a time and refuse to let them leave, forcing them to engage in sex acts.  One victim was locked in a dog cage, shot and stabbed by Price. Another was restrained.  A third was beaten and choked and left with a black eye. Price would refuse to provide them drugs unless or until they engaged in the sex acts, forcing them into withdrawal if they did not comply.

    U.S. Attorney Kenneth L. Parker commended the investigation coordinated by Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission task force, which includes Columbus Division of Police Chief Elaine Bryant; Angie M. Salazar, Special Agent in Charge, Homeland Security Investigations (HSI) Detroit; and Andrew Lawton, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA). Other agencies that have assisted the task force with the investigation include the Franklin County Sheriff’s Office, HIDTA Task Force, IRS-Criminal Investigation, FBI, Ohio Bureau of Criminal Investigations (BCI), Ohio National Guard Counter Drug Task Force, Pickerington Police Department, New Albany Police Department, and the Fairfield County Sheriff’s Office SWAT Team.

    Assistant United States Attorneys Timothy Prichard and Emily Czerniejewski are representing the United States in this case.

    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 OCDETF can be found at https://www.justice.gov/OCDETF.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Texas Man Formerly Employed by Ohio Company Convicted of Damaging Source Code and Deleting Data

    Source: US FBI

    CLEVELAND — A federal jury in Cleveland convicted a Texas man today for writing and deploying malicious code on his former employer’s network.

    According to court documents and evidence presented at trial, Davis Lu, 55, of Houston, was employed as a software developer for the victim company headquartered in Beachwood, Ohio, from November 2007 to October 2019.

    Following a 2018 corporate realignment that reduced his responsibilities and system access, Lu began sabotaging his employer’s systems. By Aug. 4, 2019, he introduced malicious code that caused system crashes and prevented user logins. Specifically, he created “infinite loops” (in this case, code designed to exhaust Java threads by repeatedly creating new threads without proper termination and resulting in server crashes or hangs), deleted coworker profile files, and implemented a “kill switch” that would lock out all users if his credentials in the company’s active directory were disabled. The “kill switch” code — which Lu named “IsDLEnabledinAD”, abbreviating “Is Davis Lu enabled in Active Directory” — was automatically activated upon his termination on Sept. 9, 2019, and impacted thousands of company users globally. Lu named other code “Hakai,” a Japanese word meaning “destruction,” and “HunShui,” a Chinese word meaning “sleep” or “lethargy.”

    Additionally, on the day he was directed to turn in his company laptop, Lu deleted encrypted data. His internet search history revealed he had researched methods to escalate privileges, hide processes, and rapidly delete files, indicating an intent to obstruct efforts of his co-workers to resolve the system disruptions. Lu’s employer suffered hundreds of thousands of dollars in losses as a result of Lu’s actions.

    “Mr. Lu was calculating in his intent to inflict damage to a company that provides products and services to businesses and organizations that span a variety of industries and fields,” said Acting United States Attorney Carol M. Skutnik of the United States Attorney’s Office for the Northern District of Ohio. “Together with our colleagues from the Criminal Division and the FBI, the U.S. Attorney’s Office will prosecute those who intend to disrupt business operations, especially, if it has the potential to inflict greater harm on national and international levels. We will hold perpetrators accountable and pursue justice against vindictive employees who break federal laws.”

    “Sadly, Davis Lu used his education, experience, and skill to purposely harm and hinder not only his employer and their ability to safely conduct business, but also stifle thousands of users worldwide,” said FBI Special Agent in Charge Greg Nelsen. “The FBI and its cadre of exceptionally qualified agents and analysts will continue to identify, find, and investigate individuals who seek to carry out deliberate and destructive actions against businesses or organizations for retaliatory or malicious purposes.”

    The jury convicted Lu of causing intentional damage to protected computers, for which he faces a maximum penalty of 10 years in prison. A sentencing date has not been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Cleveland Division investigated the case.

    Senior Counsel Candina S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Daniel J. Riedl and Brian S. Deckert for the Northern District of Ohio are prosecuting the case.

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  • MIL-OSI Security: Ohio Woman Loses Life Savings in Cryptocurrency Investment Scam

    Source: US FBI

    CLEVELAND – The United States Attorney’s Office for the Northern District of Ohio (USAO) has filed a civil complaint in forfeiture against 8,207,578 Tether (USDT) cryptocurrency, valued at more than $8.2 million. USDT is a virtual currency which are digital tokens of value circulated over the internet. Its transactions are publicly recorded on what is known as a blockchain.

    According to court documents, the FBI has identified 33 victims of an investment fraud scheme across the country, including a victim from Northeast Ohio residing in the city of Mentor. In total, victims lost approximately $4.9 million. Five more accounts have also been found to be affected and the FBI is attempting to identify the respective owners. The victims associated with the additional accounts have lost approximately $1,071,086.

    Investigators found that scammers initially contacted the victims through seemingly misdirected, or “wrong number,” text messages. The fraudster then gained the victim’s trust and affection using various manipulative tactics. Once trust was established with the victim, the fraudster would share how much success they, or someone they knew, had with investing in cryptocurrency. This personal testimonial lessened any uncertainties the victims may have had about virtual currencies and eventually had the intended effect to persuade the victim to proceed with the investment.

    The fraudster would then guide the victim, step-by-step, on how to open a legitimate cryptocurrency account, most often with a U.S. based virtual currency exchange such as Crypto.com or Coinbase. The scammer would walk the victim through the entire process of transferring money from their bank to the newly created cryptocurrency account. Next, the victim received instructions on how to transfer the purchased cryptocurrency assets to an online “investment platform,” which would turn out to be a fake site created by the fraudsters to look like a legitimate company. Information on the platforms promised lucrative returns which encouraged victims to invest further. However, once the victim transferred their funds to the “investment platform” they unknowingly handed over complete control and ownership of their funds to the scammer. 

    The complaint also outlines that the perpetrators of such investment fraud schemes often allow victims to withdraw a portion of their “profits” early on in the scheme to build trust and reinforce their belief that the “investment platform” was legitimate. But as the scheme progressed, victims were unable to withdraw their funds and given excuses as to why they could not access their funds. For example, the fraudsters referred to a fake “tax” requirement, stating that taxes must be paid on the proceeds generated from the investment platform. Knowing that the scam would run its course soon, the fraudsters used last-ditch efforts to lie to victims that they had to pay a tax. Ultimately, victims were locked out of their account on the investment platform and lost their funds.

    A woman in Lake County, Ohio became the target of such a scam when she responded to a text on her phone from an unknown number in November 2023. She began sharing information via text with the person and the two bonded over topics such as hobbies and religion. Over a period of time, the victim followed instructions from her new “friend” and opened an account at Crypto.com and then transferred funds into the account. When the victim wanted to withdraw funds, her “friend,” relented and said additional payments were needed and she complied. When the victim no longer had any funds left after making additional payments, her “friend” began to threaten her that he would send his friends to “take care of” her friends and family. Having lost her entire life savings of approximately $663,352, including funds from her Roth IRA, the victim filed a complaint with the FBI’s Internet Crime Complaint Center to report the losses in June 2024. The FBI Cleveland Division subsequently initiated an investigation.

    Investigators conducted a blockchain analysis and determined that a portion of the funds stolen from victims were converted to USDT cryptocurrency and placed into three cryptocurrency addresses. Law enforcement officers executed a federal seizure warrant to recover 8,207,578 USDT tokens, in November 2024. Tether Limited then transferred these funds to a law-enforcement-controlled virtual currency wallet.

    By the Complaint in Forfeiture filed on Feb. 27, 2025, the United States seeks to forfeit the entire 8,207,578 USDT cryptocurrency. In the complaint, the United States alleges that the cryptocurrency accounts also contained additional funds above the victims’ traceable losses and, as proceeds of fraud, are also subject to forfeiture. Additionally, the complaint alleges that such other funds were involved in money laundering violations.     

    The claims asserted in the complaint are allegations only, and the United States must prove these allegations by a preponderance of the evidence at trial.

    If successful in this forfeiture action, the United States would seek to return the stolen funds to the victims.

    The FBI Cleveland Division is actively investigating cryptocurrency fraud schemes perpetrated on victims throughout the United States, including in the Northern District of Ohio. The United States is represented in this matter by Assistant United States Attorney James L. Morford. The USAO would like to acknowledge Tether for its assistance in this matter.

    If you observe something that you believe might be fraudulent conduct involving an older adult, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov to report it.

    View Complaint:

    /usao-ndoh/media/1391461/dl?inline 

    MIL Security OSI –

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

    Source: US FBI

    MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nathaniel Dewayne Meashintubby, age 42, of McAlester, Oklahoma, was sentenced to 77 months in prison for one count of Assault of a Spouse, Intimate Partner, and Dating Partner by Strangling, Suffocating, or Attempting to Strangle or Suffocate.

    The charge arose from an investigation by the Pittsburg County Sheriff’s Office, the Choctaw Nation Lighthorse Police, and the Federal Bureau of Investigation.

    On November 18, 2024, Meashintubby pleaded guilty to the charge.  According to investigators, on March 10, 2024, Meashintubby assaulted the victim by suffocation, resulting in serious bodily injury.  The crime occurred in LeFlore County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.

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

    Assistant U.S. Attorney Michael E. Robinson represented the United States.

    MIL Security OSI –

  • MIL-OSI Security: Redmond Man Sentenced to Federal Prison for Identity Theft and Evading Tax Debt Payments

    Source: US FBI

    EUGENE, Ore.—A Redmond, Oregon man was sentenced to federal prison Tuesday for using a stolen identity to open more than 30 bank accounts and credit cards and evading payments on his $1.1 million tax debt.

    Michael David Anastasia, 69, was sentenced to 24 months in federal prison and three years’ supervised release. He was also ordered to pay $777,899 in restitution to his victim. Restitution to the IRS will be determined at a later date.

    According to court documents, from 2002 until January 2020, Anastasia knowingly and intentionally used the social security number of a victim to open numerous bank accounts and credit cards. In addition, between 1991 and 2003, Anastasia received $1.4 million from another victim after convincing them of a fabricated agreement with the United States to secure access to allegedly seized funds. In 2007, Anastasia was convicted of tax evasion for failing to pay federal income taxes on the funds received from the victim.

    In November 2015, following his release from prison, Anastasia entered into an agreement with the IRS whereby he would make payments towards his tax debt if he received more than $4,526 per month. Rather than pay his taxes, Anastasia convinced the victim to send funds over this amount to his roommate. Anastasia instructed his roommate to withdraw the overage in cash, which Anastasia stored in a safe in his residence. Between March 2016 and September 2018, Anastasia evaded paying more than $180,000 to the IRS.

    On February 15, 2024, a federal grand jury in Eugene returned a nine-count superseding indictment charging Anastasia with wire fraud, aggravated identity theft, tax evasion, and making false statements to financial institutions.

    On September 4, 2024, Anastasia pleaded guilty to tax evasion and identity theft.

    This case was investigated by the FBI and IRS. It was prosecuted by Gavin W. Bruce and William M. McLaren, Assistant U.S. Attorneys for the District of Oregon.

    MIL Security OSI –

  • MIL-OSI Security: Seven Chilean Nationals Charged in Connection with Residential Burglaries in Multiple States

    Source: US FBI

    NEWARK, N.J. – Seven members of an interstate burglary crew were charged for conspiring to target homeowners across multiple states in residential burglaries, Acting U.S. Attorney Vikas Khanna announced.

    Christofer Sanguesa Aguirre, Fabiana Prado Scatarzi, Santana Arturo Castillo Gonzalez, Felipe Andres Del Valle Munoz, Carlos Alfredo Calderon Valencia, Diego Antonio Calderon Leiva, and Pedro Alejandro Salgado Vallejos, all Chilean nationals, were each charged by complaint with one count of conspiracy to sell and receive stolen property that had crossed state lines and one count of receiving stolen property that had crossed state lines.

    “Residential burglaries have a traumatic and personal impact upon the people whose homes are violated.  Seven Chilean nationals have been charged with conspiring to target homeowners in residential burglaries across multiple states from New Jersey to Massachusetts, resulting in the theft of expensive wristwatches, designer handbags, and thousands of dollars in cash.  This office will continue to pursue those who commit these serious crimes.”

    Acting U.S. Attorney Vikas Khanna

    “We allege these men and women ransacked houses here in New Jersey and the East Coast, and then quickly traveled across the country, stealing over one hundred thousand dollars in valuables from private homes.” FBI-Newark Special Agent-in-charge Brian J. Driscoll, Jr. said.  “These alleged criminals are part of South American theft groups who have been coming in and out of the United States for months.  They hit an area and immediately disappear, using fake identifications and short-term rentals to evade getting caught.  It’s like chasing ghosts.  We put in a tremendous amount of hard work with incredible partner agencies from here to Oregon.  We caught this group—and a warning to others, this doesn’t end here.”

    “This is another outstanding example how cooperation, both on a local and national level amongst law enforcement agencies, yields positive outcomes for public safety in our communities,” said Immigrations and Customs Enforcement – Enforcement and Removal Operations, Newark Field Office Director John Tsoukaris.  “ERO’s contributions to this investigation, initially with the defendants’ arrests on immigration charges, were critical in facilitating the criminal charges.”

    “To disrupt these fast-moving, well-traveled crime networks, it often takes strong collaboration and state-of-the-art technology.  Thankfully, we have both,” said Port Authority Police Superintendent Edward Cetnar.  “By working together and leveraging our advanced technology, including CCTV and ALPR systems, we were able to track these subjects across state lines so that we could assist our law enforcement partners in apprehending them.  This operation is a testament to the strength of cooperation throughout our vast law enforcement family, including our longtime partners at the FBI Newark Joint Organized Crime Task Force and the New Jersey U.S. Attorney’s Office.”

    Sanguesa Aguirre and Castillo Gonzalez appeared on January 15, 2025, before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and were detained.  Del Valle Munoz and Calderon Valencia had their initial appearances on January 15, 2025, before U.S. Magistrate Judge Theresa L. Fricke in federal court in Tacoma, Washington, and were detained.  Calderon Leiva had his initial appearance on January 15, 2025, before U.S. Magistrate Judge Daryl F. Bloom in federal court in Harrisburg, Pennsylvania and was detained. Prado Scatarzi appeared before U.S. Magistrate Judge Carol B. Whitehurst in federal court in Lafayette, Louisiana today and was detained.  Salgado Vallejos appeared before U.S. Magistrate Judge Paul G. Levenson in federal court in Boston, Massachusetts today and was detained.

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

    The defendants were part of a sophisticated burglary ring that committed multiple residential burglaries in November 2024 in New Jersey and Massachusetts.  The defendants conspired to possess large amounts of jewelry, watches, designer handbags, and other valuable goods, among other items, with the losses totaling over $100,000.

    Law enforcement searched a vehicle the defendants were using to transport the stolen goods and recovered multiple pieces of jewelry, designer handbags and belts, perfume bottles, paper currency, watches, and other valuable items, alongside tools commonly used to burglarize residences. After law enforcement stopped the vehicle, Del Valle Munoz and Calderon Valencia fled across the country, eventually appearing near Seattle, Washington before traveling to a residence in Carlton, Oregon.  Law enforcement searched the residence where Del Valle Munoz, Calderon Valencia, and others had arrived and recovered bags and backpacks containing additional gold jewelry, diamonds, and watches, along with additional burglary tools.

    The charge of conspiracy to sell or receive stolen property carries a maximum penalty of five years in prison; and the charge of receipt of stolen property carries a maximum potential penalty of ten years in prison. Both charges also carry a maximum potential penalty of up to a $250,000 fine, or twice the amount of money involved in the offense, whichever is greater.

    Acting U.S. Attorney Khanna credited the FBI Newark’s Joint Organized Crime Task Force (JOCTF), under the direction of Special Agent in Charge Brian J. Driscoll, Jr. in Newark; Immigration and Customs Enforcement – Enforcement and Removal Operations, under the direction of Field Office Director John Tsoukaris; and the Port Authority of New York and New Jersey Police Department, under the direction of Superintendent of Police Edward T. Cetnar, with the investigation leading to the charges. He also thanked the Colts Neck Police Department, Keansburg Police Department, Fort Lee Police Department, Paramus Police Department, New Jersey State Police, Monmouth County Prosecutor’s Office, Spring Valley Police Department (NY), Town of Greenburgh Police Department (NY), Wellesley Police Department (MA), Westwood Police Department (MA), Massachusetts State Police, Renton Police Department (WA), King County Sheriff’s Office (WA), Tukwila Police Department (WA), Oregon State Police, Yamhill County Sheriff’s Office (OR), Carlton Police Department (OR), Denver Police Department (CO), Pennsylvania State Police, Novi Police Department (MI), ICE/ERO Portland, ICE/ERO Seattle, U.S. Customs and Border Protection, FBI New York, FBI Philadelphia, FBI Seattle, FBI Portland, FBI Denver, FBI New Orleans, FBI Boston, and FBI Legal Attaché Santiago, Chile.

    Anyone who believes they may be a victim, or has information about the theft group or burglaries, is asked to call 1-800-CALL-FBI, submit the information online at tips.fbi.gov, or call a local field office.

    The government is represented by Assistant U.S. Attorney Trevor A. Chenoweth of the Narcotics/OCDETF Unit in Newark.

    The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

                                                                 ###

    Defense counsel:

    Christofer Sanguesa Aguirre: Claressa Lowe, Esq., Newark, New Jersey

    Fabiana Prado Scatarzi:  James N. Green, Esq., Lafayette, Louisiana

    Santana Arturo Castillo Gonzalez: Michael Simon, Esq., Mountainside, New Jersey

    Felipe Andres Del Valle Munoz: John Carpenter, Esq., Tacoma, Washington

    Carlos Alfredo Calderon Valencia: Thomas Weaver, Esq., Bremerton, Washington

    Diego Antonio Calderon Leiva: Thomas Thornton, Esq., Harrisburg, Pennsylvania

    Pedro Alejandro Salgado Vallejos: Michael Tumposky, Esq., Boston, Massachusetts

    MIL Security OSI –

  • MIL-OSI Security: Two Individuals Charged in Conspiracy to Sexually Exploit Children

    Source: US FBI

    BIRMINGHAM, Ala. – Two individuals have been indicted on multiple child sexual exploitation charges, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peeples.

    A five-count indictment filed in U.S. District Court charges Wisam A. Sharieff, 43, of Euless, Texas, and Blake Miller Barakat, aka “Hamna,” 50, of Shelby County, Alabama, with conspiracy to engage in the sexual exploitation of children, conspiracy to receive and distribute child pornography, sexual exploitation of children, distribution of child pornography, and possession of child pornography. 

    According to the indictment, between September 27, 2024, and October 15, 2024, Sharieff and Barakat conspired together to coerce a minor child to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct; and they conspired to receive and distribute child pornography.

    FBI Birmingham’s Child Exploitation and Human Trafficking Task Force investigated the case along with the FBI Dallas-Fort Worth Violent Crimes Task Force and the Shelby County Sheriff’s Office. Assistant United States Attorney R. Leann White is prosecuting the case.

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

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

    MIL Security OSI –