Category: Politics

  • MIL-OSI Security: U.S. Attorney’s Office for the Northern District of Ohio Recognizes World Elder Abuse Awareness Day

    Source: US FBI

    Rebecca C. Lutzko, U.S. Attorney for the Northern District of Ohio, joins national, state, and local leaders in recognizing June 15, 2024, as World Elder Abuse Awareness Day.  Since 2006, leaders and organizations around the world have commemorated this day to promote awareness and increase understanding of the many forms of elder abuse and the resources available to those at risk.

    Highlighting the partnership between law enforcement and the public, U.S. Attorney Lutzko emphasized the importance of awareness and education.

    “Elder abuse often takes the form of fraud.  Together with our law enforcement partners, we aggressively investigate and prosecute individuals, organizations, and networks who lie to older adults in our community, attempting to steal money from them through a scam,” said U.S. Attorney Lutzko.  “Every day, more and more scammers pretend to call or email from a government entity or well-known business and attempt to obtain personal identity and financial information from older adults and others, which they then use to commit financial crimes.  We hope that by bringing awareness to this issue, more of us will look out for our family and friends who might be the target of such a crime, and report it to federal, state, or local authorities.”

    Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person who is in or creates a trust relationship.  Such harm may be financial, physical, sexual, or psychological.  The Justice Department maintains a variety of programs and initiatives to combat elder abuse.

    The Justice Department’s Transnational Elder Fraud Strike Force includes federal and state agencies that work together to investigate and prosecute foreign-based schemes that target older Americans.  This initiative also provides the public with information to guard against both traditional scams, like tech-support fraud, as well as trending schemes, such as romance scams.

    Some fraudsters take a different tack in abusing older adults, using them as unwitting money mules to move the proceeds of illegal activity that they have already committed.  Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money from the scammers’ crimes, in ways that avoid notice.  Scammers might recruit people to act as money mules through online job ads or social media postings, seeking people to send or receive money or packages, or to open accounts and forward money.  The Justice Department’s Money Mule Initiative identifies and addresses this type of activity to disrupt these fraud schemes, and helps people learn how to recognize the signs of suspicious activity.

    The U.S. Attorney’s Office for the Northern District of Ohio continues to work with federal, state, and local law enforcement partners to investigate and prosecute elder-abuse crimes that touch our District.  Most recently, the Office prosecuted a case in which two men ran a “grandparent scam” where they pretended to be a relative, or an attorney for a relative, and claimed that the family member needed money for bail to get out of jail.  This scheme caused the victims a combined loss of more than $383,932.  In another case, a lottery scheme took more than $260,000 from older adults. The fraudsters contacted people by mail or phone and told them that they had won a lottery or sweepstakes.  But they required the victims to pay upfront fees or taxes to claim the purported “prize.”  In yet another instance, the Office prosecuted a woman for forging the victim’s signature on a power of attorney form so she could take money from the victim’s financial accounts.  In each case, these fraudsters caused older adults and their families financial loss and emotional turmoil.

    To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides periodic Senior Scam Alerts with information about the tactics used in specific schemes.   For example, in Social Security Administration Impostor schemes, scammers impersonate government administrators and tell victims that there has been suspicious activity in connection with their social security account, or that their account is suspended, and claim that the victim must provide their Social Security number for confirmation.  In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems.  They then ask that the victim give them remote access to their computer and the fraudster will lie and say their computer has a problem, and then demand large sums of money for unnecessary services to fix the “problem.”  In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.

    To learn more about the Department’s elder-justice efforts, please visit the Elder Justice Initiative page.

    In addition, representatives of the U.S. Attorney’s Office for the Northern District of Ohio periodically speak about elder-fraud issues at community presentations throughout northern Ohio.  If an organization is interested in coordinating such a presentation, they can contact the U.S. Attorney’s Office at (216) 622-3600 or at usaohn.contact@usdoj.gov.

    Finally, 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.

    MIL Security OSI

  • MIL-OSI United Kingdom: Leeds man arrested in recycling fraud investigation

    Source: United Kingdom – Executive Government & Departments

    Press release

    Leeds man arrested in recycling fraud investigation

    Environment Agency and Yorkshire and Humberside Regional Organised Crime Unit apprehend a 34-year-old man in Leeds

    A Leeds local has been arrested for conspiracy to commit money laundering, as part of an active Environment Agency investigation into illegal recycling export paperwork.

    In a joint raid earlier this week (Wednesday 21 May), Environment Agency officers worked with the Yorkshire and Humberside Regional Organised Crime Unit to apprehend a 34-year-old man at a property in Leeds.

    After being interviewed, the suspect has been released pending ongoing investigations and evidence gathered during the arrest will support action going forward.

    The arrest forms a crucial part of an ongoing investigation by the Environment Agency and Joint Unit for Waste Crime into fraud, money laundering and offences under the producer responsibility regulations. This now brings the total number of arrests to seven, after four individuals across Leeds, Doncaster and Calderdale were arrested in April last year, and two others being arrested in 2023.

    Emma Viner, Enforcement and Investigations Manager at the Environment Agency, said:

    We are calling time on fraud in the recycling sector, which undermines hard-working businesses and trashes our natural environment.

    Our teams are thoroughly examining all the evidence gathered in the raid to further progress the investigation and help put an end to this unacceptable, organised criminal activity.

    The Packaging Producer Responsibility Regulations were introduced to oblige the producers of waste packaging made from materials such as plastic, glass and cardboard to contribute towards the financial cost of recycling and disposing the waste.

    Businesses that meet the criteria are required to prove they have made a financial contribution by purchasing credits, known as Packaging Export Recovery Notes, from waste reprocessors or exporters. However, the credits have a monetary value which means organised criminal gangs can look to infiltrate the sector and engage in high value fraud and money laundering.

    In 2024, the Environment Agency launched a new Economic Crime Unit to boost its efforts to tackle money laundering and carry out financial investigations in the waste sector. This arrest marks another vital step in the unit’s work to ensure those working in waste management do the right thing and waste criminals are rooted out of the sector.

    If a member of the public has any information that may assist with this investigation, they should call the Environment Agency’s 24-hour hotline on 0800 807060. They can also report it anonymously via Crimestoppers on 0800 555111 or the Crimestoppers website.

    Updates to this page

    Published 23 May 2025

    MIL OSI United Kingdom

  • PM Modi: ₹21,000 crore invested in education sector in North-East over last decade

    Source: Government of India

    Source: Government of India (4)

    Prime Minister Narendra Modi, while addressing the Rising North East Summit in New Delhi, underscored the pivotal role of skill development in accelerating growth and shaping a secure future for the region. He said the North-East offers a conducive environment for progress in this direction, with the central government consistently investing in education and capacity-building efforts.
     
    The Prime Minister informed that over the last ten years, ₹21,000 crore has been allocated to the education sector in the North-East. This has led to the establishment of more than 800 new schools, nine new medical colleges, two new Indian Institutes of Information Technology (IIITs), and the region’s first All India Institute of Medical Sciences (AIIMS).
     
    Further emphasizing the region’s growing educational infrastructure, he said a new campus of the Indian Institute of Mass Communication (IIMC) has been set up in Mizoram. In addition, nearly 200 skill development institutes have been established across the region to support youth empowerment and employment.
     
    The Prime Minister also highlighted major strides in the field of sports. He said the country’s first Sports University is being developed in the North-East, supported by significant investment under the Khelo India initiative. So far, eight Khelo India Centres of Excellence and over 250 Khelo India Centres have been set up to nurture sports talent across the region.
     
    He said the North-East is now emerging as a hub of top-tier talent across various sectors and urged industries and investors to explore the vast opportunities the region presents.
  • North-East to lead ‘heal in India’ mission: PM Modi

    Source: Government of India

    Source: Government of India (4)

    Prime Minister Narendra Modi on Friday outlined a comprehensive vision for the North-East region as a global hub for wellness, tourism, and digital innovation.
     
    Speaking at the Rising North East Summit at Bharat Mandapam, New Delhi, the Prime Minister underscored the importance of the Heal in India initiative, which aims to establish India as a global provider of health and wellness solutions. He highlighted the North-East’s natural advantages—its rich biodiversity, pristine environment, and organic way of life—as ideal for wellness tourism and urged investors to see the region as an integral part of the Heal in India mission.
     
    “The North-East offers the perfect climate and ecological diversity for wellness-driven industries. This makes it a critical component of India’s global health and wellness roadmap,” he said.
     
    Emphasizing the region’s vibrant cultural heritage, the Prime Minister praised its deep-rooted traditions in music, dance, and festivals, positioning the North-East as a complete tourism destination. He noted that the area is well-suited for international conferences, concerts, and even destination weddings.
     
    “As development reaches every corner of the North-East, the tourism sector has experienced a surge in growth. Tourist numbers have doubled, leading to a rise in homestays, employment for young guides, and a thriving travel ecosystem,” he added.
     
    He called for greater investment in eco-tourism and cultural tourism, stating that the region holds vast untapped potential.
     
    Touching upon security, the Prime Minister emphasized that peace and stability are vital for sustained development. “Our government follows a zero-tolerance policy towards terrorism and insurgency,” he said. He recalled the earlier perception of the North-East as a conflict-prone area, plagued by blockades and unrest. “That image has changed. In the last 10–11 years, over 10,000 youth have shunned violence and embraced peace through several landmark peace agreements,” he said.
     
    This, he said, has opened new avenues for employment and entrepreneurship in the region.
     
    Highlighting the impact of the MUDRA Yojana, PM Modi said that financial support worth thousands of crores has been extended to lakhs of young entrepreneurs in the North-East. He also pointed to the growing network of educational institutions that are skilling the youth for future challenges.
     
    “The youth of the North-East are not just consumers of the internet—they are becoming digital innovators,” he said, adding that over 13,000 kilometres of optical fibre have been laid in the region, alongside the expansion of 4G and 5G coverage.
     
    He remarked that the North-East is fast emerging as India’s digital gateway, with young entrepreneurs launching impactful startups across sectors.
     
    The Rising North East Investors Summit, being held on May 23–24, is aimed at attracting both domestic and international investment to unlock the region’s potential as a driver of economic growth and innovation.
     
  • MIL-OSI Security: Attorney General Garland Honors U.S. Department of Justice Employees and Others for Their Service at Annual Awards Ceremony

    Source: US FBI

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

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

    San Diego recipients include:

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

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

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

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

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

    MIL Security OSI

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

    Source: US FBI

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

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

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

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

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

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

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

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

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

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

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

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

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

    DEFENDANTS                                Case Number 23cr1114-JLS                              

    Hector Hernandez                              Age: 55                          Chula Vista, CA

    SUMMARY OF CHARGES

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

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

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

    Maximum penalty: Fifteen years in prison

    INVESTIGATING AGENCIES

    Department of Homeland Security, Office of the Inspector General

    Drug Enforcement Administration

    Federal Bureau of Investigation

    IRS Criminal Investigation

    MIL Security OSI

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

    Source: US FBI

    NEWS RELEASE SUMMARY – February 15, 2024

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

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

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

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

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

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

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

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

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

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

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

    DEFENDANTS                                             Case Number 23CR2090-LAB                                

    Eduard Buse                                                    Age: 30                                   Transient, Romanian

    Florentina Sima                                              Age: 29                                   Transient, Romanian

    SUMMARY OF CHARGES

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

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

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

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

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

    AGENCY

    Federal Bureau of Investigation

    San Diego Police Department Economic Crimes Unit

    IRS Criminal Investigation

    California Employment Development Department Investigative Division

    U.S. Department of Labor Office of Inspector General

    U.S. Department of Homeland Security

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

    MIL Security OSI

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

    Source: US FBI

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

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

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

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

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

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

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

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

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

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

    MIL Security OSI

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

    Source: US FBI

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

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

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

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

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

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

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

    MIL Security OSI

  • MIL-OSI Security: Colorado Man Sentenced to Prison for Assaulting Law Enforcement During the January 6 Capitol Breach

    Source: US FBI

                WASHINGTON— A Colorado man was sentenced to prison today after he previously pleaded guilty to assaulting law enforcement during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

                Patrick Montgomery, 51, of Littleton, Colorado, was sentenced to 37 months in prison and 36 months of supervised release by U.S. District Judge Randolph D. Moss.

                Montgomery was previously convicted of felony offenses of obstruction of an official proceeding and assaulting, resisting, or impeding certain officers. Following the Supreme Court’s decision in Fischer v. United States, the government voluntarily moved pre-sentencing to dismiss Montgomery’s conviction on obstruction of an official proceeding.

                According to court documents, on the morning of Jan. 6, 2021, Montgomery and co-defendants Brady Knowlton, and Gary Wilson met at the Yours Truly hotel in Washington, D.C., and walked to an area near the Washington Monument and the Ellipse to hear the speakers at the “Stop the Steal” rally. After the rally, the three men made their way to the West Front of the U.S. Capitol building, crossing over inside the restricted perimeter.

                At approximately 2:02 p.m., Montgomery grabbed a law enforcement officer’s baton and attempted to wrestle it away from the officer. The officer held onto the baton and fell to the ground with Montgomery. The two then attempted to wrestle control of the baton from each other while Knowlton and Wilson watched nearby. During the scuffle, Montgomery kicked the police officer in the chest.

                After this incident, the three men ascended the Upper West Terrace Stairs with a mass of individuals and approached the Upper West Terrace Door. As they approached, the exterior double doors were propped open, people were screaming, and a loud alarm sounded as people were streaming into the Capitol building. Inside the doors, signage stated, “EMERGENCY EXIT ONLY.” The three men entered the Capitol building via the Upper West Terrace Door at approximately 2:35 p.m.

                After entering the building, the three men climbed the stairs to the second floor, entered the Rotunda, and climbed the stairs to the third floor. At about 2:40 p.m., the three were walking together in the hallway on the third floor towards the Senate Gallery, at which point Knowlton stated, in substance, “We have a right to choose our electors. We’re not going to have communist China choose them for us. We’re not going to have the Democratic Party choose them for us.” Court documents say that Montgomery and Wilson were a few feet away from Knowlton when he made this statement.

                At approximately 2:43 p.m., the three men entered the Senate Gallery, where they saw another rioter jump down to the Senate Floor.

                The three men left the Senate Gallery and proceeded to the second floor to an area near the Senate Floor, where they confronted a U.S. Capitol Police officer. Knowlton yelled at the officer: “This is not about us. This is bigger than me, it’s bigger than you. It’s about this – everyone’s right to self-government . . . We’re with you guys. You think these people in this building would fight for you?” Montgomery yelled: “You gotta stop doing your job sometime and start being American. You gotta quit doing your job and be an American!” Wilson yelled: “We came all the way from our job to do your job, and the freaking Senators’ job!”

                After this confrontation, the defendants exited the Capitol building at approximately 2:53 p.m.

                The FBI arrested Montgomery on Jan. 17, 2021, in Colorado.

                Co-defendant Brady Knowlton is awaiting sentencing, and Gary Wilson was previously sentenced to 30 days incarceration followed by 12 months supervised release for his role in the events of the day.

                The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section are prosecuting this case. The U.S. Attorney’s Offices for the District of Colorado and Utah provided valuable assistance.

                The FBI’s Denver and Washington Field Offices investigated this case. The FBI listed Montgomery as BOLO (Be on the Lookout) #459 in its seeking information photographs. The U.S. Capitol Police and the Metropolitan Police Department provided valuable assistance.

                In the 45 months since Jan. 6, 2021, more than 1,532 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 571 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

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

    MIL Security OSI

  • MIL-OSI Security: Nevada Resident Pleads Guilty to COVID-19 Fraud Scheme

    Source: US FBI

    LAS VEGAS – A Nevada woman pleaded guilty Monday to fraudulently seeking over $1 million in COVID-19 Paycheck Protection Program (PPP) loans.

    According to court documents, Karen Chapon, aka Karen Hannafious, 53, submitted six fraudulent PPP loan applications to three financial institutions for her companies. From April 2020 to July 2020, Chapon made multiple false statements about her companies’ respective business operations and payroll expenses, and submitted false documents to support the loan applications, including false federal tax filings. As part of the loan applications, Chapon falsely stated that she had not been convicted of a felony in the past five years, but in fact, she pleaded guilty to felony fraud offenses in 2016. She received four loans totaling approximately $596,931. Chapon used fraudulently obtained funds for her own benefit, including the purchase of a Mercedes Benz SUV.    

    Chapon pleaded guilty to one count of bank fraud. U.S. District Judge James C. Mahan scheduled sentencing for November 29, 2023. She faces a maximum statutory penalty of 30 years in prison, a five-year term of supervised release, restitution, and a fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

    The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

    Acting Assistant Attorney General Nicole M. Argentieri 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 for the FBI; Inspector General J. Russell George for the Treasury Inspector General for Tax Administration (TIGTA); and Special Agent in Charge Weston King for the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Western Region, made the announcement.

    This case was investigated by the FBI, TIGTA, and SBA-OIG. Trial Attorneys Lucy Jennings and Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the District of Nevada are prosecuting the case.

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

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

    # # #

    MIL Security OSI

  • MIL-OSI Security: Former Owner of Collapsed Nursing Home Empire Admits $38 Million Tax Fraud Scheme

    Source: US FBI

    NEWARK, N.J. – A New York man today admitted his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Philip R. Sellinger announced.

    Joseph Schwartz, 64, of Suffern, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.

    “Schwartz ran a vast, multistate nursing home empire, but cheated taxpayers out of more than $38 million so he could line his own pockets. Having admitted his crime, he will now be held accountable. My office will continue to work with our law enforcement partners to prosecute those who willfully participate in tax fraud schemes.”

    U.S. Attorney Philip R. Sellinger

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

    Schwartz, an insurance broker and operator of Skyline Management Group LLC (Skyline), with headquarters in New Jersey, willfully failed to pay employment taxes relating to numerous health care and rehabilitation facilities that Skyline operated in 11 states.

    According to the indictment, Schwartz was required to collect, truthfully account for, and pay over to the IRS trust fund taxes withheld from the pay of employees of Skyline and related companies. From October 2017 through May 2018, Schwartz caused taxes to be withheld from employees’ pay but failed to then pay over more than $38 million in employment taxes to the IRS. As an administrator of the Skyline 401K plan, Schwartz further had an obligation to file an annual Form 5500 financial report with the Secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.

    The employment tax fraud count is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The failure to file a Form 5500 related to the retirement plan count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 10, 2025.

    U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Thomas Licetti in the New York Regional Office; and special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to today’s guilty plea.

    The government is represented by Assistant U.S. Attorneys Kendall Randolph and Daniel H. Rosenblum of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.

    MIL Security OSI

  • MIL-OSI Security: West New York Financial Advisor Sentenced to 41 Months in Prison for Role in Multimillion-Dollar Health Care Fraud Conspiracy

    Source: US FBI

    CAMDEN, N.J. – A West New York financial advisor was sentenced today to 41 months in prison for 11 counts of defrauding public health insurance plans out of more than $4 million and transacting in the criminal proceeds, U.S. Attorney Philip R. Sellinger announced.

    Kaival Patel, 55, of West New York, New Jersey, was convicted on Dec. 7, 2023, of one count of conspiracy to commit wire fraud and health care fraud, four counts of health care fraud, one count of conspiracy to commit money laundering by transacting in criminal proceeds, and five counts of money laundering by transacting in criminal proceeds following an 11-day trial before U.S. District Judge Robert B. Kugler. U.S. District Judge Edward S. Kiel imposed the sentence today in Camden federal court.

    “This defendant lined his own pockets by taking advantage of health insurance plans for New Jersey state and local government employees, defrauding them of millions of dollars by conspiring to obtain reimbursements for medically unnecessary compound prescription medications. Together with our law enforcement partners, we will continue to investigate and prosecute those who abuse and defraud the health care system.”

    U.S. Attorney Philip R. Sellinger

    According to documents filed in this case and the evidence at trial:

    Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded medications require a prescription from a physician.

    Patel created and operated a company called ABC Healthy Living LLC to market compound prescription medications. Patel and his conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications such as vitamins, scar creams, pain creams, libido creams, and acid reflux medications. Patel and a conspirator approached Patel’s family member, a medical doctor who owns and operates a clinic in Newark, New Jersey, and convinced him to authorize prescriptions for the compound medications for patients who had no medical need for the prescriptions. Patel received commissions for the compound medication prescriptions.

    Patel and his conspirators paid a group of corrections officers to go to Patel’s family member’s medical practice for the purpose of receiving fraudulent prescriptions. Patel conspired with a compounding pharmacist to add unnecessary ingredients to the compound medications to further increase their cost and augment his illicit profits. Patel engaged in a series of financial transactions to receive proceeds from the health care fraud and wire fraud conspiracy.

    To date, approximately 48 people have been convicted or pleaded guilty in the overarching conspiracy.

    In addition to the prison term, Judge Kiel sentenced Patel to three years of supervised release and ordered him to pay restitution of $4.72 million.

    U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.

    The government is represented by Assistant U.S. Attorneys Daniel A. Friedman of the Criminal Division and R. David Walk Jr., Deputy Chief of the Criminal Division.

    MIL Security OSI

  • MIL-OSI Security: Bergen County Investment Advisor Admits Stealing Millions of Dollars from Clients

    Source: US FBI

    TRENTON, N.J. – A former broker and investment advisor today admitted stealing more than $3 million from five clients, U.S. Attorney Philip R. Sellinger announced.

    Kenneth A. Welsh, 42, of River Edge, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to and indictment charging him with four counts of wire fraud and one count of investment advisor fraud.

    According to documents filed in this case:

    From July 2017 through March 2021, Welsh, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated at least $3 million from five clients. Welsh, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud the five clients by diverting money from their brokerage accounts to accounts under his control. Welsh then used the unlawfully obtained money to fund his gambling and to purchase high-end, luxury items for himself.

    Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The investment advisor fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 26, 2025.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to the guilty plea.

    The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.

    MIL Security OSI

  • MIL-OSI Security: Monmouth County Man Charged with Armed Bank Robbery

    Source: US FBI

    TRENTON, N.J. – A Monmouth County, New Jersey, man made his initial court appearance today for an alleged armed bank robbery, U.S. Attorney Philip R. Sellinger announced today.

    Jeffrey L. Kniffin, 50, of Wall Township, is charged by complaint with one count of armed bank robbery. He appeared before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court and was detained. A detention hearing is scheduled for November 25, 2024.

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

    On Oct. 23, 2024, Kniffin entered a bank in Wall Township, New Jersey, and demanded cash from a bank teller before grabbing and displaying for the teller a firearm. On several occasions during the robbery, Kniffin instructed the teller and other bank employees who were present, “Don’t do anything stupid.” After taking by force and intimidation cash from the teller, Kniffin fled the bank. He was apprehended and arrested by law enforcement several minutes later. At the time of his arrest, law enforcement recovered from Kniffin and his immediate surroundings a loaded firearm and more than $17,000 in cash.

    The count of armed bank robbery carries a maximum penalty of 25 years in prison and a fine of $250,000.

    U.S. Attorney Sellinger credited officer of FBI Newark’s Jersey Shore Safe Streets Task Force, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the charges. He also thanked the Wall Township Police Department, under the direction of Chief Sean O’Halloran, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, for their assistance.

    The government is represented by Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

    MIL Security OSI

  • MIL-OSI Security: Essex County Man Sentenced to 70 Months in Prison for Defrauding Victims in Car Theft and Fraudulent Resale Scheme

    Source: US FBI

    NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 70 months in prison for defrauding victims by orchestrating a multistate car theft and fraud ring, U.S. Attorney Philip R. Sellinger announced.

    Warren Guerrier, 47, of Newark, previously pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an indictment charging him with conspiracy to commit wire fraud.

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

    From November 2016 to June 2020, Guerrier and several conspirators acting at his direction orchestrated a scheme to steal and then fraudulently sell vehicles to unsuspecting buyers. Guerrier and his conspirators identified vehicles to steal, then photographed, tracked, and advertised them for sale on the internet. The buyer victims were provided with electronically programmed keys and falsified certificates of title for the stolen vehicles in exchange for a negotiated purchase price in cash. Buyer victims also were provided with fraudulent identity documents utilized by conspirators to obscure their true identities.

    The scheme involved the theft of at least 40 stolen vehicles, approximately 30 of which were sold by Guerrier and his conspirators to buyer victims. As a result of the scheme, Guerrier and his conspirators collected approximately $285,000.

    In addition to the prison term, Judge Martini sentenced Guerrier to three years of supervised release and ordered restitution of $291,637.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and Special Agent in Charge Lyonel Myrthil in New Orleans, with the investigation leading to the sentencing.

    The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the Criminal Division in Newark.

    MIL Security OSI

  • Taliban in talks with Russia, China for trade transactions in local currencies

    Source: Government of India

    Source: Government of India (4)

    The Taliban administration is in advanced talks with Russia for banks from both sanctions-hit economies to settle trade transactions worth hundreds of millions of dollars in their local currencies, Afghanistan’s acting commerce minister said.

    The Afghan government has made similar proposals to China, the minister, Haji Nooruddin Azizi, told Reuters on Thursday. Some discussions have been held with the Chinese embassy in Kabul, he said.

    The proposal with Russia, Azizi said, was being worked on by technical teams from the two countries. The move comes as Moscow focuses on using national currencies to shift reliance away from the dollar and as Afghanistan faces a stark drop in the U.S. currency entering the country due to aid cuts.

    “We are currently engaged in specialised discussions on this matter, considering the regional and global economic perspectives, sanctions, and the challenges Afghanistan is currently facing, as well as those Russia is dealing with. Technical discussions are underway,” Azizi said in an interview at his office in Kabul.

    The Chinese foreign ministry and the Russian central bank did not immediately respond to requests for comment.

    Azizi added that annual bilateral trade between Russia and Afghanistan was currently around $300 million and that was likely to grow substantially as the two sides boost investment. His administration expected Afghanistan to buy more petroleum products and plastics from Russia, he said.

    “I am confident that this is a very good option…we can use this option for benefit and interests of our people and our country,’ Azizi said.

    “We want to take steps in this area with China as well,” he said, adding Afghanistan had around $1 billion in trade with China each year. “A working team composed of members from the (Afghan) Ministry of Commerce and the Chinese embassy which is an authorized body representing China in economic programmes has been formed, and talks are ongoing.”

    Afghanistan’s financial sector has been largely cut off from the global banking system due to sanctions placed on some leaders of the ruling Taliban, which took over the country in 2021 as foreign forces withdrew.

    Rivalry with China and fallout from Russia’s war in Ukraine have put the dollar’s status as the world’s dominant currency under fresh scrutiny in recent years.

    In December, Russian President Vladimir Putin questioned the need to hold state reserves in foreign currencies since they could easily be confiscated for political reasons, saying that domestic investment of such reserves was more attractive.

    The dollar has had a lock on commodity trading, allowing Washington to hinder market access for producer nations from Russia to Venezuela and Iran.

    Afghanistan since 2022 has imported gas, oil and wheat from Russia, the first major economic deal after the Taliban returned to power facing international isolation following 20 years of war against U.S.-led forces.

    Billions of dollars in cuts to aid to Afghanistan, accelerated this year by the United States, have meant far fewer dollars, which are flown in cash for humanitarian operations, are entering the country.

    Development agencies and economists say the Afghani currency has so far remained relatively stable but may face challenges in future.

    Azizi said that the stability of the currency and his administration’s efforts to boost international investment including with the Afghan diaspora, would prevent a shortage of U.S. dollars in the country.

    (Reuters)

  • MIL-OSI Global: International Booker prize 2025: six experts review the shortlisted novels, including winner Heart Lamp

    Source: The Conversation – UK – By Helen Vassallo, Associate Professor of French and Translation, University of Exeter

    Heart Lamp by Banu Mushtaq has won the 2025 International Booker prize. Here, our literature experts review the book and the other five novels that were shortlisted for the prize.

    Heart Lamp by Banu Mushtaq, translated by Deepa Bhasthi

    Banu Mushtaq’s Heart Lamp shines a light on the lives of Muslim women in rural India. In a bold and memorable translation from Kannada by Deepa Bhasthi, this quietly powerful collection of short stories opens up the intimate space of domestic rituals and family tensions.

    Mushtaq’s fervent advocacy of women’s rights is evident in the compassion with which she brings to life the women in the stories: from the lack of autonomy suffered by young girls forced into wedlock to the indignity of an older woman obliged to accept her husband taking a second wife or a widow whose son arranges a new marriage for her, the women’s lives are dictated by men.

    Heart Lamp is perhaps best summed up in the final story, “Be a Woman Once, O Lord!” Throughout these stories, Mushtaq invites us – and whichever male deity might be listening – to walk in the shoes of women overlooked by an unquestioned patriarchal hierarchy.

    Helen Vassallo, Associate Professor of French and Translation




    Read more:
    Heart Lamp by the Indian writer Banu Mushtaq wins 2025 International Booker prize – a powerful collection of stories inspired by the real suffering of women


    Under the Eye of the Big Bird by Hiromi Kawakami, translated by Asa Yoneda

    Hiromi Kawakami’s Under the Eye of the Big Bird offers us glimpses of one imagined future for earth and humanity.

    Its vision could be described as post-apocalyptic. After unspecified cataclysmic events, humans exist only in tiny, scattered communities and extinction seems imminent. But this is also a beautiful, if dreamlike, world and one in which humanity still has the potential for astonishing growth and change.

    Each chapter introduces something new and startling to the reader. Many of the tropes are familiar – cloning, superpowers, mutation, AI. Yet they are configured in unfamiliar ways and prompt reflections on the nature of humanity and our relationship with the rest of creation – as well as on time, religion and the possibility of an afterlife.

    Despite grappling with so many huge questions, Under the Eye of the Big Bird is an accessible and absorbing novel. And, although tragedy is never far away, there remains humour – and hope.

    Sarah Annes Brown, Professor of English Literature

    A Leopard-Skin Hat by Anne Serre, translated by Mark Hutchinson

    Published in France in 2008 as Un chapeau léopard, A Leopard-Skin Hat is a novel about a friendship spanning 20 years between a woman called Fanny and a man known throughout only as “the Narrator”. He is not, though, the narrator of the novel. Rather, an unknown storyteller tells us how the Narrator sees Fanny gradually lose the fight against madness (the novel’s word) and, in the end, death.

    This is a novel about the mystery of other people, about how unknowable others are to us. It explores how we narrate to try to understand people who are not us, but whom we love. What is most extraordinary about Serre’s novel is the way it shows us two friends doing very ordinary things – going out for dinner, going on holiday, walking in the countryside and swimming in lakes – but shows us through this the strangeness and complexity of friendship, love and life.

    Leigh Wilson, Professor of English Literature




    Read more:
    A Leopard-Skin Hat by Anne Serre explores what its like being human in relation to other human beings


    Perfection by Vincenzo Latronico, translated by Sophie Hughes

    Perfection is a slim account of the way that time “disappears” for Anna and Tom, an expat couple living in Berlin as creative freelancers in the 2010s.

    Written in homage to Georges Perec’s Things: The Story of the Sixties (1965), the novel opens with an overbearing description of the items in their apartment, moving in and out of the characters’ dissatisfaction with the aesthetic, social, creative, economic and political routes open to them in 120 pages spanning a little over 10 years.

    As international elections, the European refugee crises and climate catastrophe dance in and out of their peripheral vision, Anna and Tom find neither satisfaction with their current moment nor successfully imagine a better one. As such, Latronico gently, but with an increasing sense of fatalism, considers the stagnation of a millennial creative class whose views on influence, status, power and happiness remain deeply linked to the “new emotions” of digital mediation.

    By Rachel Sykes, Associate Professor in Contemporary Literature and Culture

    On The Calculation of Volume I by Solvej Balle, translated by Barbara Haveland

    In On The Calculation of Volume, a woman, Tara Selter, finds herself trapped in an endlessly repeating day, November 18. Volume I, the first of seven books, recounts the first 365 days of this time loop, with Tara attempting to make sense of her predicament, to explain it to her husband – who is still bound by the normal rules of time – and to try to fix whatever has initiated this situation.

    As the novel continues, it becomes less focused on the novelty of the situation and more on the philosophical questions it raises: the alternate claustrophobia and liberation of replaying the same day; how our friends and partners sometimes feel like they inhabit a different reality; the way in which time pulls things and people apart; of the importance we place in the idea of “tomorrow”.

    What’s remarkable about Balle’s novel is how compulsive it is – even though we know time is standing still, we still want to know what will happen next.

    David Hering, Senior Lecturer in English Literature

    Small Boat by Vincent Delecroix, translated by Helen Stevenson

    Vincent Delecroix’s Small Boat is a slim, bruising novel that centres on a real horror: the drowning of 27 migrants in the English Channel in November 2021. In a small, inflatable craft, they reached out over crackling radio lines, asking for help that never came.

    Small Boat focuses not on the migrants themselves, but on a French coastguard operator who spent that night on the radio, fielding their calls for rescue. Delecroix’s brilliance lies in showing how violence at the border is carried out not by villains, but by workers. It was not evil that allowed those people to die in the water, it was a string of decisions made by people in warm rooms who believed they were doing their jobs.

    In a world ever more brutal towards those who flee war, hunger and despair, Delecroix’s novel is a necessary – and merciless – indictment. It reminds us that the shipwreck is not theirs alone. It is ours too.

    Fiona Murphy, Assistant Professor in Refugee and Intercultural Studies




    Read more:
    Small Boat: this slim, devastating novel about a real migrant shipwreck reminds us of the cruelty of indifference


    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. International Booker prize 2025: six experts review the shortlisted novels, including winner Heart Lamp – https://theconversation.com/international-booker-prize-2025-six-experts-review-the-shortlisted-novels-including-winner-heart-lamp-255464

    MIL OSI – Global Reports

  • MIL-OSI Security: Former High School Teacher Found Guilty of Possessing Child Pornography

    Source: US FBI

    ABERDEEN, MS – A federal jury convicted a Booneville man for possessing child sexual abuse materials after hearing evidence for three days in a trial before Senior District Judge Glen H. Davidson in Aberdeen, Mississippi.

    According to court documents and evidence presented at trial, Andrew Murphy, 36, a former high school science teacher, was found guilty today for possessing child pornography. Sentencing has been scheduled for July 28, 2025, at the U.S. Courthouse in Aberdeen, Mississippi.

    Over two days of testimony, the government presented evidence to establish that Murphy collected images of child exploitation material, child nudity, child erotica, and images of children engaged in sexual activity, using a peer-to-peer network online.

    The statutory penalties are up to ten years imprisonment, five years to life on supervised release, and registration on the sex offender registration.

    “The case presented to the jury by AUSAs Parker King and John Herzog clearly established the guilt of this teacher who possessed images that demonstrated his sexual interest in children,” said U.S. Attorney Clay Joyner. “I cannot overstate the importance of our partnership with the Mississippi Attorney General’s Office, the FBI, and our local law enforcement partners, such as the Prentiss County Sheriff’s Department, in protecting children, and this partnership will continue to do just that.”

    “For every image of child pornography there is a child who is a victim and who will relive his or her abuse over and over again while that image circulates. We are committed to holding all predators who exploit Mississippi children accountable, and particularly those that hold positions of trust and care for our children,” said Attorney General Lynn Fitch. “I appreciate the strong partnership our office has with the U.S. Attorney’s Office and the FBI.  Together, we are dedicated to serving justice for the victims in this case and all others.”

    “Safeguarding our society’s future begins with protecting children in our community from predatory individuals like, Andrew Murphy,” said Special Agent in Charge Robert Eikhoff of the FBI Jackson Field Office. “Murphy held a position of trust and violated that trust that our communities had in him with these heinous crimes against our youth; it will not be tolerated. The FBI maintains a steadfast commitment, in working alongside our federal, state, and local partners, to protect the innocence of our minors, and aggressively investigate predators, like Murphy, to hold them accountable and make sure they are brought to justice.”

    The case was investigated and conducted by the Mississippi Attorney General’s Office and the FBI.

    Assistant U.S. Attorneys Parker S. King and John Herzog are prosecuting the case.

    The case against Andrew Murphy was brought as part of the Project Safe Childhood nationwide initiative by the Department of Justice to combat the 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov

    MIL Security OSI

  • MIL-OSI Security: Two Former Employees of New Jersey Mortgage Lending Business Indicted for Roles in Mortgage Fraud Scheme

    Source: US FBI

    NEWARK, N.J. – Two men were arraigned today on charges related to their roles in a large-scale mortgage fraud scheme, U.S. Attorney Philip R. Sellinger announced today.

    Christopher J. Gallo, 44, of Old Tappan, New Jersey, and Mehmet Ali Elmas, 32, a U.S. citizen who resided in Turkey until the time of his arrest, were indicted by a federal grand jury on Oct. 24, 2024, on one count of conspiracy to commit bank fraud, eight counts of bank fraud, eight counts of false statements to a financial institution; and one count of aggravated identity theft. They appeared today before U.S. District Judge Brian R. Martinotti in Newark federal court and each pleaded not guilty.

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

    Gallo and Elmas were previously employed by a New Jersey-based, privately owned licensed residential mortgage lending business. Gallo was a senior loan officer and Elmas was a mortgage loan officer and Gallo’s assistant. From 2018 through October 2023, Gallo and Elmas used their positions to conspire and engage in a fraudulent scheme to falsify loan origination documents sent to mortgage lenders in New Jersey and elsewhere, including their former employer, to fraudulently obtain mortgage loans. Gallo and Elmas routinely mislead mortgage lenders about the intended use of properties to fraudulently secure lower mortgage interest rates.  Gallo and Elmas often submitted loan applications falsely stating that the listed borrowers were the primary residents of certain proprieties when, in fact, those properties were intended to be used as rental or investment properties. By fraudulently misleading lenders about the true intended use of the properties, Gallo and Elmas secured and profited from mortgage loans that were approved at lower interest rates.

    The conspiracy also included falsifying property records, including building safety and financial information of prospective borrowers to facilitate mortgage loan approval. Between 2018 through October 2023, Gallo originated more than approximately $3 billion in loans.

    The charges of conspiracy to commit bank fraud, bank fraud, and false statements to a financial institution each carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. The aggravated identity theft charge carries an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense, whichever is greatest.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to the indictment.

    The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.

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

    MIL Security OSI

  • MIL-OSI Security: Executive of Louisiana Compounding Pharmacy Admits Defrauding State Health Benefits Programs

    Source: US FBI

    CAMDEN, N.J. – The former vice president of sales of a Louisiana compounding pharmacy today admitted conspiring to use the Louisiana pharmacy to defraud New Jersey and military health benefits programs, Attorney for the United States Vikas Khanna announced.

    Christopher Casseri, 56, of Baton Rouge, Louisiana, pleaded guilty before U.S. District Judge Edward S. Kiel to one count of conspiring to commit health care fraud. Casseri was previously charged with Christopher Kyle Johnston, 45, of Mandeville, Louisiana, Trent Brockmeier, 62, of Pigeon Forge, Tennessee, in a 24-count indictment with conspiracy to commit health care fraud and wire fraud and a second conspiracy to commit identity theft by using individuals’ personal identifying information without their consent. Johnston and Brockmeier were charged with additional charges of conspiring to commit money laundering and substantive counts of money laundering for transactions involving the over $43 million in illicit profits they realized from the scheme. The charges against Johnston and Brockmeier remain pending and they are scheduled to proceed to trial in January 2025.

    According to court documents and statements made in Court:

    Central Rexall was a retail pharmacy in Louisiana that prepared compounded medications, which are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. In 2013, Johnston and Brockmeier entered into an agreement with Central Rexall Chief Executive Officer Hayley Taff, who pleaded guilty on Aug. 12, 2020, to conspiracy to commit health care fraud, to take over the management of the pharmacy and expand the compounding business in exchange for 90 percent of the profits.  Brockmeier became chief operating officer of Central Rexall and Johnston became general counsel. They hired Casseri as vice president of sales to manage Central Rexall’s outside sales force.

    Johnston, Brockmeier, and Casseri learned that certain insurance plans administered by an entity referred to in the indictment as the “Pharmacy Benefits Administrator” would reimburse thousands of dollars for a one-month supply of certain compounded medications – including pain, scar, and antifungal creams, as well as vitamin combinations. The health plans for New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had this insurance coverage, as did TRICARE, which insures current and former members of the armed forces and their families.

    The three conspirators designed compounded medications and manipulated the ingredients in the medications in order to obtain high insurance reimbursements rather than serve the medical needs of patients. To determine which ingredients and combinations resulted in the highest insurance reimbursements, Johnston, Brockmeier, and Casseri had Central Rexall employees send the Pharmacy Benefits Administrator false prescription claims to test out different combinations of ingredients, but the prescriptions did not exist. By trial and error, Johnston, Brockmeier, and Casseri designed compounded medications with combinations of ingredients that were chosen solely based on the amount of money that insurance would pay rather than on the medications’ ability to serve the medical needs of patients. At their direction, Central Rexall sent compounded medications to patients based solely on financial gain, without any research or testing showing that the combination of ingredients was effective.

    When the Pharmacy Benefits Administrator would stop covering one combination, the conspirators would develop a compounded medication with a different combination of ingredients based solely on the insurance reimbursement and without considering the medical necessity or effectiveness of the new combination. Central Rexall then would send that new compounded medication to patients, even though the new combination of ingredients was not medically equivalent to the combination originally prescribed for the patients and without telling the patients or their doctor about the differences.

    The outside sales force retained and directed by Johnston, Brockmeier, and Casseri used various methods to get doctors to prescribe these medications and patients to accept them, including having prescriptions signed without the patient seeing a doctor or knowing about the medications, having medications or refills ordered with the patients’ knowledge, and paying patients to accept the medications and paying doctors to prescribe them.

    Casseri and his conspirators caused over $46 million in fraudulent insurance claims for compounded medications that were not medically necessary.

    Casseri faces a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 18, 2025.

    Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea.

    The charges and allegations against Johnston and Brockmeier are merely accusations, and they are presumed innocent unless and until proven guilty.

    The government is represented by R. David Walk Jr., Deputy Chief of the Criminal Division and Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division in Camden.

    MIL Security OSI

  • MIL-OSI Security: Former Vice President of Product Development Admits Theft of Trade Secrets From New Jersey-Based Producer of Oil Products and Proprietary Flavors

    Source: US FBI

    NEWARK, N.J. – A former vice president of product development at a New Jersey-based producer of oil products and proprietary flavors admitted possessing and conspiring to possess stolen trade secrets, U.S. Attorney Philip R. Sellinger announced today.

    Andrew Blum, 63, of North Brunswick, New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court on Nov. 12, 2024, to an information charging him conspiracy to possess stolen trade secrets and possession of stolen trade secrets.

    “A company’s intellectual property – its proprietary materials and trade secrets –  have enormous value to the companies that develop them, sometimes constituting their most valuable assets. Stealing them is a crime. This defendant admitted stealing trade secrets, including a secret formula used in one of the most recognizable names in the global soft drink industry. Our office will prosecute cases like this with the same vigor as any other theft.”

    U.S. Attorney Philip R. Sellinger

    “Blum admits he stole his employer’s trade secrets and hoped to use the information so he could get a job across the street,” FBI – Newark Acting Special Agent in Charge Nelson I. Delgado said. “Protecting the proverbial keys to the castle is essential for companies to remain in business and stay competitive. It’s even common for corporations to house formulas and recipes in literal vaults to keep them from being stolen. One of the FBI’s priorities is protecting companies from these types of crimes and holding accountable anyone who tries to sneak out the back door.”

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

    From 2013 to Dec. 12, 2018, Blum was the vice president of product development for a company that is a subsidiary of a New Jersey-based corporation that maintained its principal place of business in Northern New Jersey. The company’s parent corporation was one of the world’s largest producers of oils, juices, peel and byproducts, as well as a leading manufacturer of proprietary flavors sold to, among others, the world’s largest beverage companies. The company’s entire business was predicated on the development of formulas used in the production of flavors and as such, the intellectual property represented in formulas is one of the company’s most important assets.

    In December 2018, the company’s information technology team discovered that another employee from company used a personal email account to forward 82 files, each of which contained proprietary and trade secret information, to Blum on his personal email account. The list of 82 files included virtually all of the formulas used in the department where Blum worked. The company later learned that Blum and the other employee accessed other sensitive formulas belonging to the company that Blum and the employee were not working on and should not have accessed, including a secret formula used in one of the most recognizable names in the global soft drink industry. Other email communication between non-company accounts showed that Blum and the other employee were planning to leave the company to work for competitor companies. Law enforcement later recovered other trade secret information from Blum’s residence and from one of Blum’s cloud-based storage accounts, including handwritten notes for a product that the company produces that is sold by one of the world’s largest soda companies in a country in Asia.

    The counts of conspiracy to possess stolen trade secrets and possession of stolen trade secrets each carry a maximum potential penalty of 10 years in prison and a fine of up to $250,000 fine, or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 20, 2025.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the  guilty plea.

    The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the U.S. Attorney’s Office General Crimes Unit in Newark, with assistance from the National Security Unit.

    MIL Security OSI

  • MIL-OSI Security: Somerset County Man Sentenced to 87 Months in Prison for Defrauding New Jersey Traumatic Brain Injury Fund of Millions of Dollars and Committing Tax Evasion

    Source: US FBI

    TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 87 months in prison for conspiracy to commit healthcare fraud, five acts of healthcare fraud, and four counts of tax evasion, U.S. Attorney Philip R. Sellinger announced.

    C.R. Kraus, 58, of Manville, New Jersey was convicted in April 2024 of all 10 counts of an indictment following a trial before U.S. District Judge Zahid N. Quraishi in Trenton federal court. In January 2023, Kraus’s conspirators, Harry Pizutelli and Maritza Flores, pleaded guilty to conspiracy to commit healthcare fraud and tax evasion relating to defrauding the New Jersey Traumatic Brain Injury Fund (TBI Fund) of millions of dollars for their own personal benefit. Both are awaiting sentencing.

    “This defendant stole millions of dollars earmarked for victims of traumatic brain injuries. Stealing resources intended to help New Jersey residents who are already coping with serious challenges is especially egregious. This office will never relent in holding such criminals accountable. Today, this defendant learned the price of his criminal acts.”

    U.S. Attorney Philip R. Sellinger

    “C.R. Kraus was intent on defrauding the Traumatic Brain Injury Fund by making false claims that he treated patients who suffer from such maladies,” FBI – Newark Acting Special Agent in Charge Nelson I. Delgado said. “This not only took away valuable resources from other deserving patients but enabled Kraus and his co-conspirators to benefit substantial monetary gain, to the tune of more than $4 million. The FBI investigative team worked to put a stop to their fraudulent behavior, and bring to justice criminals who use the healthcare system as a personal piggy bank.”

    “Motivated entirely by greed, C.R. Kraus and his co-conspirators stole millions of dollars from a government program meant to aid individuals with life-altering injuries,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office, said. “Today’s sentence reinforces IRS-CI’s dedication to investigating financial crimes and ensuring bad actors are held accountable for their misconduct.”

    According to documents filed in this case and the evidence at trial:

    The TBI Fund is a publicly funded program run by the New Jersey Division of Disability Services, a component of the New Jersey Department of Human Services. The TBI Fund’s purpose is to provide New Jersey residents who have suffered a traumatic brain injury with services and support in order to maximize their quality of life when funding from insurance, personal resources, or other programs is unavailable to meet their needs. Services funded by the TBI Fund include physical, occupational, and speech therapy; service coordination; assistive technology; cognitive therapy; neuropsychological services; pharmaceuticals; wheelchair ramp installation and other home modifications; and general home management and maintenance.

    After a prospective patient applies for services, TBI Fund personnel review the application and, if approved, the patient is authorized to secure designated services from a third-party vendor. Once a patient receives services approved by the TBI Fund, the vendor or service provider submits an invoice to the TBI Fund for payment. When an invoice is received, TBI Fund personnel review the invoice to ensure that the patient had been approved to receive the services. If the invoice is approved, an internal payment voucher is generated, authorized by TBI Fund personnel, and then submitted to the New Jersey Department of the Treasury for payment, which issues a check directly to the vendor.

    Pizutelli was the manager of the TBI Fund and was responsible for its day-to-day operation. He supervised, managed, and oversaw the process by which third-party vendors were paid for services rendered to eligible TBI Fund beneficiaries. From 2009 through June 2019, Pizutelli, Kraus, and Flores conspired to defraud the TBI Fund by misappropriating more than $4 million in fraudulent vendor payments for purported services that were never actually provided. Pizutelli orchestrated the distribution of fraudulent vendor payments to Flores and Kraus by generating and processing false invoices and internal payment vouchers. Pizutelli generated these invoices and vouchers to give the appearance that Flores and Kraus had provided approved services to eligible patients when, in fact, they had not provided any services. Pizutelli then approved and transmitted the internal payment vouchers so that his conspirators received vendor payments.

    Pizutelli orchestrated these fraudulent payments to maintain and further romantic and/or sexual relationships with Flores, including more than $940,000 in fraudulent distributions to Flores and more than $3.245 million in fraudulent distributions to Kraus. To obscure their fraudulent conduct, Flores and Kraus also evaded the payment of substantial amount of income taxes by making material misstatements and omissions on their federal income tax returns and significantly underreporting the income they had derived from the fraudulent scheme.

    In addition to the prison term, Judge Quraishi sentenced Kraus to three years of supervised release and ordered restitution of $4.19 million.

    U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Acting Special Agent in Charge Delgado, and special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the guilty verdict. He also thanked the New Jersey Attorney General’s Office, Division of Law, and the New Jersey Department of Human Services, for its assistance.

    The government is represented by Eric A. Boden, Attorney-in-Charge in Trenton, and Assistant U.S. Attorney Eric Suggs of the U.S. Attorney’s Office Trenton Branch Office.

    MIL Security OSI

  • MIL-OSI Security: Former CEO of 500.Com (now Bit Mining Ltd.) Indicted for Role in Bribing Japanese Officials and Bit Mining Ltd. Resolves Foreign Bribery Investigation

    Source: US FBI

    NEWARK, N.J. – An indictment was unsealed today charging the former CEO of 500.com (now BIT Mining Ltd.), Zhengming Pan, a Chinese national, with violations of the Foreign Corrupt Practices Act (FCPA). BIT Mining Ltd. has agreed to resolve investigations by the Justice Department and the Securities and Exchange Commission (SEC) into related FCPA violations arising from the company’s participation in a corrupt scheme to pay bribes to Japanese government officials.

    BIT Mining entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the District of New Jersey charging BIT Mining with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA and one count of violating the books and records provisions of the FCPA.

    A federal grand jury in the District of New Jersey returned an indictment against Pan on June 18. Pan is charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.

    “Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, directed consultants to pay bribes to Japanese government officials to win a bid to open a large resort in Japan. The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them. The company has admitted its crimes and agreed to pay a $10 million penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”

    U.S. Attorney Philip R. Sellinger

    “BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2 million in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan,” Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, said. “Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”

    “Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct,” Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division said. “This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”

    According to court documents, between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its -CEO Pan, employees, and agents, agreed to pay approximately $1.9 million in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials. The purpose of the bribes was to try to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities, and entertainment venues) in Japan. On behalf of 500.com, Pan allegedly engaged third-party consultants to assist 500.com in paying and concealing these bribes. 500.com, through these consultants, paid bribes in the form of cash, travel, entertainment, and gifts. Pan and others allegedly covered up the payment of these bribes by, among other things, entering into sham contracts with the consultants and falsely recording the payments as legitimate expenses, including as management advisory fees. Ultimately, despite carrying out this bribery scheme, 500.com did not win an integrated resort bid in Japan.

    Pursuant to the DPA, BIT Mining agreed, based on the application of the U.S. Sentencing Guidelines, that the appropriate criminal penalty is $54 million. However, due to BIT Mining’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, BIT Mining and the Justice Department agreed, consistent with the department’s inability to pay guidance, that BIT Mining will pay a total criminal penalty of $10 million. The Justice Department has agreed to credit up to $4 million against the civil penalty BIT Mining has agreed to pay to the SEC to resolve a parallel investigation.

    BIT Mining has also agreed to continue to cooperate with the Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in any ongoing or future criminal investigations. In addition, BIT Mining has agreed to continue to enhance its compliance programs and provide reports to the Justice Department regarding remediation and the implementation of compliance measures for the three-year term of the DPA.

    The Justice Department reached this resolution with BIT Mining based on a number of factors, including, among others, the nature and seriousness of the offense. BIT Mining received credit for its cooperation with the department’s investigation, which included (i) voluntarily producing relevant documents, financial data, and other information, including from foreign countries, while navigating some foreign data privacy and related criminal laws, accompanied by translations of a limited number of documents; and (ii) providing the government with facts learned during its internal investigation. The cooperation was, however, reactive and limited in degree and impact.

    BIT Mining engaged in certain timely remedial measures, which included, among other things, (i) increasing governance and oversight of compliance risks and audit findings by the Board of Directors, (ii) promoting compliance and ethics through company-wide communications, (iii) incorporating compliance criteria in performance evaluations for senior management, (iv) conducting annual risk assessments, (v) creating an anti-corruption policy and engaging in company-wide training and communications to promote it, and (vi) transitioning its business model to an industry that presents a lower corruption risk and reducing its presence in high risk regions. In light of these considerations, BIT Mining’s criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable guidelines fine range.

    The FBI’s International Corruption Unit is investigating the case.

    Assistant U.S. Attorney Jennifer Kozar for the District of New Jersey and Trial Attorneys Jil Simon and Ligia Markman of the Criminal Division’s Fraud Section are prosecuting the cases.

    The Justice Department’s Office of International Affairs and authorities in Japan provided assistance in this matter.

    The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

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

    MIL Security OSI

  • MIL-OSI Security: Three High-Ranking MS-13 Gang Members Plead Guilty to Racketeering Charges in Connection with Nine Murders

    Source: US FBI

    Two Defendants Were the New York Leaders of the Gang’s Hollywood and Sailors Cliques

    Earlier today and on January 16, 2025, in federal court in Central Islip, three members of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, pleaded guilty to multiple crimes, including nine murders committed on Long Island and elsewhere between 2016 and 2017.  David Sosa-Guevara, also known as “Risky,” the New York regional leader of the Hollywood Locos Salvatruchas (Hollywood) clique of MS-13, and Victor Lopez-Morales, also known as “Persa,” a high-ranking member of the Hollywood clique, pleaded guilty on January 16, 2025.  Kevin Torres, also known as “Inquieto” and “Quieto,” the New York regional leader of the Sailors Locos Salvatruchas Westside (Sailors) clique of MS-13, pleaded guilty on January 17, 2025.  

    Collectively, the three defendants pleaded guilty to racketeering charges in connection with their respective roles in nine MS-13 driven murders: (1) the April 26, 2016 murder of Samuel Martinez-Sandoval in Freeport; (2) the April 29, 2016 murder of Oscar Acosta in Brentwood; (3) the May 21, 2016 murder of Kerin Pineda in Freeport; (4) the September 4, 2016 murder of Josue Amaya-Leonor in Roosevelt; (5) the September 5, 2016 murder of Marcus Bohannon in Central Islip; (6) the October 10, 2016 murder of Javier Castillo in Freeport; (7) the October 14, 2016 murder of Carlos Ventura-Zelaya in Roosevelt; (8) the July 21, 2017 murder of Angel Soler in Roosevelt; and (9) the August 29, 2017 murder of David Rivera in Maryland, as well as narcotics trafficking. Additionally, Sosa-Guevara and Lopez-Morales pleaded guilty to participating in an August 2017 conspiracy to kidnap an individual identified in the superseding indictment as “John Doe #3.”

    The three guilty plea proceedings were held before United States Magistrate Judge Lee G. Dunst.  When sentenced by United States District Judge Joan M. Azrack, pursuant to the terms of their plea agreements, Sosa-Guevara and Torres each face up to 65 years in prison, and a minimum sentence of 40 years in prison.  Victor Lopez-Morales faces up to 60 years in prison and minimum sentence of 40 years. 

    Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD) and Anne T. Donnelly, Nassau County District Attorney, announced the guilty pleas.

    “The defendants have admitted to their participation in numerous murders savagely committed with machetes and guns, all on behalf of the MS-13 and to increase their status in that depraved criminal organization,” stated Acting United States Attorney Pokorny.  “As a result of the guilty pleas, the defendants will be severely punished by serving decades in prison and provide some measure of relief and closure to the families of the many victims.” 

    FBI Assistant Director in Charge Dennehy stated: “MS-13 callously used murder in an attempt to exert control over territory for their ruthless gang operations.   As demonstrated by the guilty pleas of these three, high-ranking MS-13 members for their roles in nine murders, this type of extreme and senseless violence will not go unpunished. The FBI’s Long Island Gang Task Force, along with our law enforcement partners, will continue to bring to justice members of MS-13 or any other violent gang using violence and murder to terrorize our communities.”

    “These defendants used their rank in the gang to help orchestrate multiple brutal murders and other crimes,” stated SCPD Acting Commissioner Waring.  “We in law enforcement will never stop working to fight the pervasive violence sowed throughout these gangs.”

    “The charges brought forth is a clear example of the results when Law Enforcement Personnel from Federal and Local Agencies combine their efforts and resources,” stated NCPD Commissioner Ryder.  “Their relentless and continued investigations resulted with the charging of these criminals who were responsible for committing these murders. This combined investigation demonstrates the diligence of the well trained and determined investigators.  The Nassau County Police Department remains committed in working with our law enforcement partners halting any gang activity on our streets and keeping our residents safe.  I would like to thank all of the assisting agencies and their investigators on a job well done.”

    “These defendants carried out vicious and senseless violence to instill fear and assert their dominance. Today’s guilty pleas bring us one step closer to ridding this dangerous gang activity from Nassau County communities,” stated Nassau County District Attorney Donnelly.  “Together with our partners, we remain committed to protecting Long Island from this criminal organization’s brutality and ensuring individuals involved in these devastating acts are held accountable for their crimes.”  

    According to court filings and statements made during the guilty plea proceedings, Torres was the New York regional leader of the Sailors clique, Sosa-Guevara was the New York regional leader of the Hollywood clique, and Lopez-Morales was a high-ranking member of the Hollywood clique.  The defendants admitted to committing the crimes set forth below in order to maintain and increase their membership and status within the gang, and to further the mission of the MS-13.

    April 26, 2016 Murder of Samuel Martinez-Sandoval

    The defendants pleaded guilty to the murder of 20-year-old Martinez-Sandoval, which was carried out in April 2016, by the defendants and other members from the Sailors, Hollywood and Normandie Locos Salvatruchas cliques, who planned a joint operation to lure and kill Martinez-Sandoval because they believed that he was a member of the rival Sureños gang.   

    On April 26, 2016, MS-13 members convinced Martinez-Sandoval to drive with them to a secluded, wooded area near Freeport Lake in Roosevelt, under the guise of smoking marijuana.  Separately, more than a half dozen MS-13 members, including the defendants, armed with machetes and other weapons, had gathered at a designated location along Freeport Lake where it was agreed that the other gang members would bring the victim.  When Martinez-Sandoval arrived, Sosa-Guevara, Torres, Lopez-Morales and the other MS-13 members surrounded and attacked the victim, each taking turns hacking him with a machete and other weapons.  After the victim was killed, the MS-13 members dug a shallow grave and buried the victim.  However, because the initial hole was not deep enough to conceal Martinez-Sandoval’s body, a group of MS-13 members went back the following day, reburied the victim and covered his body with cement and dirt.  Martinez-Sandoval’s body was not found until September 2024.

    April 29, 2016 Murder of Oscar Acosta

    Torres pleaded guilty to the murder of 19-year-old Acosta.  In early 2016, Torres, as leader, ordered a “greenlight” authorizing other gang members to murder Acosta because the gang suspected that he was associating with the rival 18th Street gang after previously aligning himself with the MS-13.  Torres assigned roles as to which members would take the lead in planning and carrying out the murder. 

     On April 29, 2016, MS-13 members met Acosta in a wooded area near an elementary school in Brentwood where he had been lured under the guise of smoking marijuana.  They brutally beat Acosta with tree limbs, knocking him unconscious. They bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise and summoned other MS-13 members who arrived in two cars.  The MS-13 members loaded Acosta into the trunk of one of the cars and drove to a more secluded area in Brentwood near the abandoned Pilgrim State Psychiatric Hospital.  The MS-13 members then removed Acosta, who was still alive, from the trunk and carried him deeper into the woods where they took turns hacking him to death with a machete.  The murder was supervised by the local leaders of the Sailors clique who reported back to Torres once completed.  After killing Acosta, the MS-13 members buried his body in a shallow grave.

    Acosta’s body was discovered by law enforcement nearly five months later, on September 16, 2016, during a search for another MS-13 victim.  His cause of death was homicidal violence, including sharp and blunt force injuries to his head and torso.

    May 21, 2016 Murder of Kerin Pineda

    The defendants also pleaded guilty to the murder of 20-year-old Pineda, who, like Acosta, was killed because of his suspected membership in the 18th Street gang. Torres, again, ordered the “greenlight” for Pineda, marking him for death.  In response, MS-13 members from the Sailors and Hollywood cliques, including Sosa-Guevara and Lopez-Morales, devised a plan to kill Pineda.

    On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border.  Torres, Lopez-Morales, and Sosa-Guevara acted as lookouts for police and coordinated the attack, staying in contact with the MS-13 members in the woods while they waited for Pineda.  When Pineda arrived, he was surrounded and violently attacked by the group of MS-13 members, each of whom took turns hacking and slashing him with the machetes. Pineda’s body was then buried in a hole that had been dug in the ground the day before, in anticipation of the murder. Before leaving the scene, the MS-13 members contacted the lookouts – Torres, Lopez-Morales, and Sosa-Guevara – who advised them that they could safely come out of the woods and drove them away from the scene.

    September 4, 2016 Murder of Josue Amaya-Leonor

    Sosa-Guevara and Lopez-Morales pleaded guilty for their roles in the murder of 19 year-old Amaya-Leonor on September 4, 2016.  Like the other victims, Amaya-Leonor was lured to a secluded wooded area and killed because of his perceived association with the 18th Street gang.  On the evening of the murder, MS-13 members convinced Amaya-Leonor to venture deep into the Roosevelt Preserve, in Roosevelt, to smoke marijuana.  Sosa-Guevara was in communication with the gang members by cell phone and was directing them on where to bring the victim.  Once there, Amaya-Leonor was surrounded by the MS-13 members who were armed with machetes; he was struck repeatedly, and killed.  Thereafter, Lopez-Morales, who was in the immediate area of the murder looking out for police, arrived on the scene and supervised the other MS-13 members as they dug a hole and buried Amaya-Leonor’s body, which was not found until May 2018 – over a year and a half after the murder had occurred.

    September 5, 2016 Murder of Marcus Bohannon

    Torres pleaded guilty to authorizing the murder of 27-year-old Marcus Bohannon.  On September 4, 2016, members of the Sailors clique met at the house of local clique leaders Alexi Saenz and Jairo Saenz, in Central Islip, where Torres directed the gang members to go out hunting for rival gang members to kill.  The MS-13 members separated into several cars and drove around Central Islip and Brentwood, until one of the cars spotted Bohannon walking along Lowell Avenue in Central Islip in the early morning hours of September 5.  Suspecting that Bohannon was a member of the rival Bloods gang, two MS-13 members, carrying firearms, got out of the vehicle, approached him and started shooting. Bohannon was struck nine times, including in his head, neck, and chest, and died from his wounds.

    October 10, 2016 Murder of Javier Castillo

    Torres also pleaded guilty to the murder of 15-year-old Javier Castillo.  In October 2016, the MS-13 targeted Castillo because he was believed to be a member of the 18th Street gang.  On October 10, 2016, members of the Sailors clique in Brentwood convinced Castillo, who lived in Central Islip, to go with them to Freeport – approximately 30 miles away – to smoke marijuana.  Torres authorized the members of the clique operating in Brentwood to bring Castillo to his territory in Freeport to be killed.  The MS-13 members took Castillo to an isolated marsh area along the water in Cow Meadow Park, in Freeport, where they attacked and killed him, taking turns hacking him with a machete.  Torres also served as the lookout for police in the area during the murder. Thereafter, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in October 2017.

    October 14, 2016 Murder of Carlos Ventura-Zelaya

    Sosa-Guevara and Lopez-Morales pleaded guilty to the murder of 24-year-old Ventura-Zelaya, who had been marked for death by the MS-13 because of his suspected membership in the rival 18th Street gang.  On the day of the murder, Ventura-Zelaya was observed at a deli in Roosevelt by a member of the Hollywood clique. Sosa-Guevara mobilized other members of the clique to kill Ventura-Zelaya and conducted surveillance of the victim until the other gang members arrived.  The gang members tasked with carrying out the murder first drove to pick up a gun from Lopez-Morales.  After obtaining the weapon, the group drove in the direction of the deli to look for and kill the victim.  Once they spotted Ventura-Zelaya walking on Hudson Street in Roosevelt, two MS-13 members got out of the car, approached him and one

    of them fired multiple times, striking and killing the victim.  They then ran back to the car and drove away from the scene.  

    July 21, 2017 Murder of Angel Soler

    Sosa-Guevara and Lopez-Morales also pleaded guilty to the murder of 15-year-old Soler. The MS-13 suspected Soler was an 18th Street gang member, and Sosa-Guevara ordered his murder. Lopez-Morales and other MS-13 members carried out the murder, luring Soler to wooded lot near Milburn Creek in Roosevelt to smoke marijuana.  The group attacked Soler with machetes and a pickaxe, and buried his body in a shallow grave.  The following day, MS-13 members went back to lay cement over Soler’s body, in order to better conceal it.  Soler’s remains were recovered in October 2017.

    August 2017 Conspiracy to Kidnap John Doe #3

    Lopez-Morales and Sosa-Guevara also admitted that, just weeks after the Soler murder, they and other MS-13 members planned the kidnapping, assault, and/or murder of John Doe #3, an MS-13 member who had violated the rules of the gang. Specifically, Sosa-Guevara assigned Lopez-Morales and two other MS-13 members to carry out the kidnapping and attack. Lopez-Morales was instructed that, once they had John Doe #3, to wait for further guidance from MS-13 leadership as to whether to kill or brutally assault him.  On August 6, 2017, Lopez-Morales and the other gang members’ plan to kidnap John Doe #3 was foiled by law enforcement, who had been intercepting the calls arranging the attack, pursuant to court-ordered wiretaps of certain MS-13 members’ cell phones, and Lopez-Morales was taken into custody.

    August 29, 2017 Murder of David Rivera

    Sosa-Guevara also admitted to his participation in the murder of 16-year-old Rivera in Maryland.  To avoid law enforcement in New York, Sosa-Guevara and another Hollywood member from Long Island relocated to Maryland where they connected with the local Hollywood clique.  After arriving, Sosa-Guevara learned of a plan to kill a rival gang member and directed the other Long Island member of his clique to participate.  On August 29, 2017, Sosa-Guevara drove the other gang member to a park outside of Edgewater, Maryland, for him to participate in the Rivera murder.  The victim was brought to that location by other MS-13 members, attacked with machetes and killed.  After the murder, Sosa-Guevara drove the member of his clique away from the scene. Rivera’s body was not found until June 7, 2024.

    Narcotics Trafficking Conspiracies

    Finally, Torres pleaded guilty to conspiring with the members of the Sailors clique to distribute cocaine and marijuana, and Sosa-Guevara and Lopez-Morales pleaded guilty to conspiring with members of the Hollywood clique to distribute marijuana. These charges stemmed from the MS-13 cliques’ street-level sales of cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations.

                                                                  *          *          *          *

    These guilty pleas are the latest achievements in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.

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

    The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office and Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.

    The Defendants:

    VICTOR LOPEZ-MORALES (also known as “Persa”)
    Age:  36
    Roosevelt, New York

    DAVID SOSA-GUEVARA (also known as “Risky”)
    Age:  33
    Roosevelt, New York

    KEVIN TORRES (also known as “Quieto” and “Inquieto”)
    Age:  29
    Freeport, New York

    E.D.N.Y. Docket No. 20-CR-251 (S-1)(JMA)

    MIL Security OSI

  • MIL-OSI Security: Former Finance Minister of Mozambique Sentenced to 102 Months’ Imprisonment for His Role in $2 Billion Fraud and Money Laundering Scheme

    Source: US FBI

    BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Manuel Chang, the former Finance Minister of Mozambique, was sentenced by United States District Judge Nicholas G. Garaufis to a term of imprisonment of 102 months and ordered to pay $7 million in forfeiture.  The restitution amount will be determined at a later date.   Chang was convicted after a four-week trial in July and August 2024 of conspiring to commit wire fraud and money laundering in connection with his role in a $2 billion international fraud, bribery and money laundering scheme that victimized investors in the United States and elsewhere.  He was arrested in December 2018 in South Africa, pursuant to a provisional arrest warrant issued at the request of the United States and extradited to the Eastern District of New York in July 2023.

    Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, Brent S. Wible, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

    “Today’s sentence shows that foreign officials who abuse their power to commit crimes targeting the U.S. financial system will meet U.S. justice,” stated Acting United States Attorney Pokorny.  “My Office will continue to pursue those who violate our laws and harm U.S. investors regardless of their power, position or title.”  

    “Manuel Chang abused his position as Finance Minister of Mozambique by obtaining $7 million in bribe payments in exchange for helping secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Chang’s brazen misconduct betrayed his duty to the people of Mozambique and defrauded investors, including those in the United States, of substantial amounts. With today’s sentence, Chang has been held accountable for his violations of U.S. law.”

    “Manuel Chang abused his authority as the former Mozambique Finance Minister by helping to obtain billions of dollars in loans, a large portion of which was diverted from its intended purposes to satisfy bribe payments, ultimately causing significant financial loss to U.S. and global investors,” stated FBI Assistant Director in Charge Dennehy.  “With the support of his co-conspirators, Chang violated the trust of his office and wielded his position to enrich himself and other Mozambican officials. May today’s sentencing reiterate the FBI’s commitment to dismantling all corruptive malpractices orchestrated by foreign governments, especially those targeting our country as their personal piggy bank.”

    As proven at trial, Chang received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects.  As part of the scheme, Chang and his co-conspirators falsely stated to banks and investors that the loan proceeds would be used for the projects and that the borrower would not pay bribes to Mozambican government officials. In fact, however, Chang and his co-conspirators facilitated the criminal diversion of more than $200 million of the loan proceeds that were used to pay bribes and kickbacks to Chang and others.

    Between approximately 2013 and 2016, in his capacity as Mozambique’s Minister of Finance, Chang, together with his co-conspirators – including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company – ensured that Credit Suisse AG, through its subsidiary in the United Kingdom, Credit Suisse Securities (Europe) Limited (CSSEL), and another foreign investment bank would arrange for more than $2 billion to be extended to companies owned and controlled by the Mozambican government:  Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM).  The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services. Specifically, Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards.

    Instead, Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks.  These funds included more than $150 million that Privinvest used to bribe Chang and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government would enter into the loan arrangements, and that the government of Mozambique would guarantee those loans.  The loans were subsequently sold in whole or in part to investors worldwide, including in the United States.  In doing so, the participants in the scheme conspired to defraud these investors by misrepresenting how the loan proceeds would be used.  Ultimately, Proindicus, EMATUM, and MAM each defaulted on their loans and proceeded to miss more than $700 million in loan payments, causing substantial losses to investors.

    In October 2021, Credit Suisse AG and CSSEL admitted to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project. CSSEL pleaded guilty to conspiracy to commit wire fraud and Credit Suisse AG entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York, the Criminal Division’s Fraud Section (Fraud Section) and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS).  As a part of the resolution, Credit Suisse AG and CSSEL paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.

    The Office’s Business & Securities Fraud Section is handling the case.  Assistant United States Attorneys Hiral D. Mehta, Genny Ngai and Jonathan Siegel, and Trial Attorneys Peter Cooch of the Fraud Section and Morgan Cohen of MLARS, are in charge of the prosecution, with assistance from Paralegal Specialist Timothy Migliaro.  The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department appreciates the assistance of South African authorities, particularly those in the South African Department of Justice and Constitutional Development and the South African Police Service, as well as authorities in the United Kingdom, Switzerland, Spain and Portugal.

    The Defendant:

    MANUEL CHANG
    Age: 69
    Mozambique

    E.D.N.Y. Docket No. 18-CR-681 (NGG)

    MIL Security OSI

  • MIL-OSI Security: U.S. Attorney Easley Announces Appointment of District Election Officer

    Source: US FBI

    RALEIGH, N.C. – United States Attorney Michael F. Easley, Jr., announced today that Assistant United States Attorney (AUSA) Karen Haughton will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election.  AUSA Haughton has been appointed to serve as the District Election Officer (DEO) for the Eastern District of North Carolina, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with the Justice Department in Washington.

    The Department of Justice has an important role in deterring and combating discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

    Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying, and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from interference, including intimidation and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).

    In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, the DEO will be on duty in this district while the polls are open. The DEO can be reached by the public at the following telephone number, 919-856-4530 or 919-856-4808, or by email at Karen.Haughton@usdoj.gov.

    In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public by calling 704-672-6100 or 1-800-CALL-FBI (1-800-225-5324) or by email at tips.fbi.gov.

    Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

    Please note, however, that in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency. 

    MIL Security OSI

  • MIL-OSI Security: Fifteen Gang Members Indicted for Drug Trafficking and Firearms Possession

    Source: US FBI

    CLEVELAND – Federal, state, and local law enforcement officials announce the unsealing of a superseding indictment charging 15 members of the Fully Blooded Felons, a criminal street gang that was active in Northeast Ohio and in the Ohio prison system. The gang members were charged for their roles in a drug trafficking conspiracy involving their importing and distributing fentanyl, methamphetamine, cocaine, and buprenorphine in Northeast Ohio, and their illegal possession of firearms. Three defendants have been in federal custody since December 2023. Authorities have arrested several newly charged defendants. They transported several of them to federal court in Cleveland, while the others are in custody elsewhere.

    This announcement is made by United States Attorney Rebecca C. Lutzko, FBI Special Agent in Charge Gregory Nelsen, and Cleveland Division of Police Chief Dorothy Todd.

    “The indictment alleges that Raven Mullins and other members of the Fully Blooded Felons operated an open-air drug market, distributing the deadliest types of drugs sold on Cleveland’s streets. This organization is charged not only with peddling such poisons in Cleveland’s Cedar Estates neighborhood, but also with actively plotting to recruit persons to infiltrate the Ohio prison system to distribute drugs there so gang members could reap the profits,” said United States Attorney Rebecca C. Lutzko. “This indictment and these arrests are a product of the dedication, cooperation, and tireless efforts of Northern District of Ohio federal, state, and local law enforcement partners who, working together, identified and disrupted this criminal organization. Because of these efforts, the many law-abiding members of the Cedar Estates neighborhood have a real opportunity to come together and make positive changes.”

    “This operation and subsequent arrests underscore the FBIs mission to investigate, disrupt, and dismantle gangs not only in the larger cities across America, but also right here in northern Ohio,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “Identifying criminal networks takes careful coordination and collaboration. We are proud to partner with the agencies that make up the FBI Safe Streets Gang Task Force, which includes the Cleveland Division of Police, Ohio Adult Parole Authority, and the Ohio Investigative Unit. In addition, the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Cleveland’s Third District played a major role in this operation. We thank them as well as our other federal, state, and local partners who work seamlessly together to protect our communities and keep offenders off the streets.”

    The following defendants are charged in the 33-count superseding indictment:

    Raven Mullins, aka Dunny, aka Dun, 34, Cleveland, Ohio
    Henry Burchett, aka Noodles, aka Noo, 39, Cleveland, Ohio
    Cortez Tyree, aka Seed, 34, Cleveland, Ohio
    Rodney Linson, aka Scrap, 37, Willoughby Hills, Ohio
    Elijah Johnson, aka Loon, 36, Unknown
    Demarcus Elliott, aka Moo, 37, Westlake, Ohio
    Dontez Hammond, aka Donny, 35, Cleveland, Ohio
    Jeffrey Lee, aka Fatty, 23, Cleveland, Ohio
    Jerrell Jones-Ferrell, aka Ruga, 25, Cleveland, Ohio
    Jerry Mullins, aka B. Money, 32, Cleveland, Ohio
    Devonte Johnson, aka D Nut, aka Nut, 31, Cleveland, Ohio
    Jerome Williams, aka Jay, 29, Cleveland, Ohio
    Christepher Horton, aka Cam, aka Killa, 40, Erie, Pennsylvania
    Deeundra Perkins, aka Drizzy, 32, Unknown
    Deon Blackwell, aka White Boy, 37, Cleveland, Ohio

    The defendants were all charged in a conspiracy to distribute and possess with intent to distribute controlled substances. Additionally, six defendants were charged with possession with intent to distribute controlled substances offenses, five defendants were charged with illegal possession of firearms, and five defendants were charged with possessing firearms in furtherance of drug trafficking crimes. One defendant was charged with interstate travel in aid of racketeering, and 11 defendants were charged with using a communications facility to facilitate a felony drug offense.

    The superseding indictment alleges that between as early as January 2022, and continuing through April 2, 2024, the defendants did knowingly and intentionally conspire with each other to distribute and possess with the intent to distribute mixtures and substances containing fentanyl, a Schedule II controlled substance, methamphetamine, a Schedule II controlled substance, cocaine, a Schedule II controlled substance, cocaine base (“crack”), a Schedule II controlled substance, and buprenorphine, a Schedule III controlled substance.

    According to court documents, Raven Mullins and other defendants operated an organized gang hierarchy that committed violent acts, possessed and transferred firearms, and distributed controlled substances in Northeast Ohio. The Fully Blooded Felons used two apartments at the Cedar Estates in Cleveland, Ohio, to store controlled substances and firearms and to distribute different controlled substances to customers. Subordinate gang members used a grassy area immediately adjacent to the Cedar Estates, and the area surrounding the 28th Street Liquor Store, to distribute controlled substances to customers at the direction of Raven Mullins and other high-ranking members. The superseding indictment alleges that Elijah Johnson travelled to Texas and Arizona to obtain kilogram quantities of pills containing fentanyl, which he then supplied to Fully Blooded Felon members for distribution in Northeast Ohio. Additionally, the superseding indictment alleges that the Fully Blooded Felons operated a drug smuggling and distribution ring inside numerous Ohio state prisons and federal detention centers.

    An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

    If convicted, each defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.

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

    The specific mission of the OCDETF Cleveland Strike Force is to disrupt and dismantle major criminal organizations and subsidiary organizations, including criminal gangs, transnational drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security and are related to the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Northern District of Ohio. The OCDETF Cleveland Strike Force consists of agents and officers from the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations, the United States Marshals Service, the U.S. Postal Inspection Service, the Internal Revenue Service, the U.S. Border Patrol, and the Cleveland Division of Police. The prosecution is being led by the Office of the United States Attorney for the Northern District of Ohio.

    The investigation preceding the superseding indictment was conducted by the Federal Bureau of Investigation, Safe Streets Task Force, the Cleveland Division of Police’s Third District and Gang Impact Unit, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ohio State Highway Patrol, the Ohio Adult Parole Authority, the Ohio Department of Rehabilitation and Correction, and the Ohio Investigative Unit. The United States Marshals Service coordinated the arrests of those defendants apprehended.

    This case is being prosecuted by Assistant U.S. Attorneys Robert J. Kolansky and Paul E. Hanna, with assistance from Trial Attorneys Brian W. Lynch and Alyssa Levey-Weinstein of the Justice Department’s Violent Crime and Racketeering Section.

    MIL Security OSI

  • Northeast emerges as investment hub with Rs 6.75 lakh crore boost in a decade: Scindia

    Source: Government of India

    Source: Government of India (4)

    Union Minister for Communications and Development of the North Eastern Region, Jyotiraditya M. Scindia, on Friday lauded the remarkable transformation of the north eastern states over the past decade under the leadership of Prime Minister Narendra Modi.

    Addressing the inaugural session of the Rising North East Investors Summit at Bharat Mandapam in New Delhi, Scindia underlined the government’s unwavering commitment to the region’s progress. He announced that gross budgetary support for the northeast has surged dramatically, enabling investments worth nearly ₹6.75 lakh crore in the past ten years.

    “This significant allocation has been a game changer in redefining the region’s growth trajectory, turning it into a land of opportunity,” the minister said.

    The summit, which aims to attract both domestic and international investors, seeks to highlight the untapped economic potential of the northeast.

    Scindia highlighted the region’s historical importance, particularly the areas surrounding the Brahmaputra and Barak rivers, describing it as a cradle of India’s ancient culture and commerce. “There was a time when these eight states served as South Asia’s global trading hubs, playing a vital role in linking the East and West through both land and water routes,” he noted.

    Despite this legacy, he lamented that the region had been neglected for nearly seventy years after India’s independence. “In the past ten years, the destiny and story of this entire region have transformed. And the architect of that transformation stands before us today in the form of our esteemed Prime Minister, Narendra Modi ji,” Scindia said, crediting PM Modi for spearheading the region’s revival.

    Recounting the region’s past infrastructure challenges, the minister pointed out that the northeast previously had only nine airports, and two states had no airport facilities at all. Today, that number has risen to seventeen, significantly enhancing connectivity and economic integration.

    ANI

  • MIL-OSI United Kingdom: EA prosecutes father and son for assaulting fisheries officers

    Source: United Kingdom – Executive Government & Departments

    Press release

    EA prosecutes father and son for assaulting fisheries officers

    A father and son who assaulted 2 Environment Agency water bailiffs at a Shropshire fishery have been ordered to pay fines and costs totalling more than £12,000.

    An Environment Agency bailiff being assaulted.

    • Defendants ordered to pay fines and costs totalling over £12,000
    • Water bailiffs struck in the face and poked in the eye at Shropshire fishery near Bridgnorth
    • Police called to incident after defendants refused to co-operate

    Fines and costs totalling £6,937.00 were imposed on Andrew Bowman, 44 , of Cross Place Dudley. 

    This was made up of a £488 fine for assault, £146 for fishing without a licence, a victim surcharge of £253 and costs of £6,000. He was also ordered to pay £50 compensation to one of the water bailiffs he assaulted. 

    He had pleaded guilty at a previous hearing to assaulting the officers at Poole Hall Fishery on 6 September 2023. This case was heard by Telford Magistrates court on April 25 2025.

    His father, Sidney Bowman, 75, also of Cross Place Dudley, had admitted similar charges in a hearing on 3 October 2024. 

    He was ordered to pay fines and costs totalling £5,128. This was made up of a £660 fine for assault, £146 for fishing without a licence, a victim’s surcharge of £322 and costs of £4,000.

    Environment Agency water bailiffs are deemed to be constables for the purposes of enforcing fisheries legislation and are also protected under the Assaults on Emergency Workers (Offences) Act 2018. 

    The court was told that the pair were fishing when approached by the 2 bailiffs who were checking fishing licences. 

    Andrew Bowman refused to give the officers his details and advised his father not to do so as well. Failing to provide name and address details, when requested by a water bailiff, is an offence. 

    After the officers cautioned Andrew Bowman for not providing his details, he became verbally and physically threatening and began to move his equipment.  

    The officers fearing for their safety moved a fishing knife away from the defendants. Andrew Bowman then assaulted one officer by striking him in the face after the bailiffs said they were removing their fishing gear for evidence. 

    This was followed by Sidney Bowman also assaulting the officer by attempting to grab his chest, where the officer’s radio was, and in doing so poked him in the eye with flailing arms.  

    The court was told as the incident continued Andrew Bowman had to be taken to the ground after he refused to allow the officers to put handcuffs on him. 

    Andrew Bowman gave the officers incorrect details, stating he was called David Wilkes and a wrong address. 

    The incident ended with police attendance resulting in Andrew and Sidney Bowman providing their correct details.

    A spokesperson for the Environment Agency said: 

    These sentences handed out show that the courts will not allow assault of public servants to go unpunished.  

    It sends out a strong message to other people trying to stop our officers from performing their duties. 

    Our officers do endure abuse and threats of violence in carrying out important work to protect people and the environment.  

    The Environment Agency will not hesitate to prosecute those that obstruct or assault its staff. 

    If people suspect illegal fishing incidents they should call our 24/7 hotline on 0800 807060.

    Background

    The charges:

    Andrew Bowman 

    On the 6 September 2023, assaulted an emergency worker, namely a person (other than a constable) who has the powers of a constable, acting in the exercise of his functions as such a worker, by beating him. Contrary to section 39 of the Criminal Justice Act 1988 and Section 1 of the Assaults on Emergency Workers (Offences) Act 2018. 

    On 6 September 2023, assaulted an emergency worker, namely a person (other than a constable) who has the powers of a constable, acting in the exercise of his functions as such a worker. Contrary to section 39 of the Criminal Justice Act 1988 and Section 1 of the Assaults on Emergency Workers (Offences) Act 2018.  

    On 6 September 2023, obstructed a Water Bailiff, a constable in the execution of his duty. Contrary to Section 89(2) of the Police Act 1996.  

    On 6 September 2023, obstructed a Water Bailiff, a constable in the execution of his duty. Contrary to Section 89(2) of the Police Act 1996.  

    On 6 September 2023, at Poole Hall Fisheries, Alverley, in a place where fishing is regulated, was fishing and he was not entitled to do so by virtue of a fishing licence. Contrary to section 27(1)(a)(i) of the Salmon and Freshwater Fisheries Act 1975. 

    Sidney Bowman 

    On 6 September 2023, assaulted an emergency worker, namely a person (other than a constable) who has the powers of a constable, acting in the exercise of his functions as such a worker, by beating him. Contrary to section 39 of the Criminal Justice Act 1988 and Section 1 of the Assaults on Emergency Workers (Offences) Act 2018.  

    On 6 September 2023, assaulted an emergency worker, namely a person (other than a constable) who has the powers of a constable, acting in the exercise of his functions as such a worker. Contrary to section 39 of the Criminal Justice Act 1988 and Section 1 of the Assaults on Emergency Workers (Offences) Act 2018.  

    On 6th September 2023, in a place where fishing is regulated, was fishing and he was not entitled to do so by virtue of a fishing licence. Contrary to section 27(1)(a)(i) of the Salmon and Freshwater Fisheries Act 1975.

    Updates to this page

    Published 23 May 2025

    MIL OSI United Kingdom