NewzIntel.com

Category: Security Intelligence

  • MIL-OSI Security: Armed Bank Robbery Lands Oklahoma City Man in Federal Prison for More Than a Decade

    Source: US FBI

    OKLAHOMA CITY – Yesterday, AKIN ZHON WOFFORD, 29, of Oklahoma City, was sentenced to serve 135 months in federal prison for armed bank robbery and possessing and brandishing a firearm in furtherance of a crime of violence, announced U.S. Attorney Robert J. Troester.

    On February 7, 2023, a federal grand jury returned a two-count Indictment against Wofford, charging him with armed bank robbery and possessing and brandishing a firearm in furtherance of a crime of violence. On August 21, 2024, a federal jury convicted Wofford on both counts.

    According to evidence presented at trial, on November 7, 2022, Wofford entered a branch of City National Bank and Trust in Oklahoma City. After he waited several minutes in the lobby, Wofford pulled out a firearm, jumped over the teller counter, pointed it at a bank employee, and demanded money. Wofford then opened the teller drawer and grabbed handfuls of cash before he exited the bank. An investigation into the vehicle used during the bank robbery ultimately led authorities to Wofford. He was arrested on November 18, 2022.

    At the sentencing hearing on January 9, 2025, U.S. District Judge David L. Russell sentenced Wofford to serve 135 months in federal prison, followed by three years of supervised release. In announcing the sentence, the Court noted the circumstances of the offense, including the risk of danger caused by the robbery, and Wofford’s history of violence.

    This case is the result of an investigation by the FBI Oklahoma City Field Office and the Oklahoma City Police Department. Assistant U.S. Attorneys Daniel Gridley and Stanley J. West prosecuted the case.

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

    Reference is made to public filings for additional information.

    MIL Security OSI –

  • MIL-OSI Security: $6 Million Worth of Oregon Properties Forfeited in Connection to Interstate Marijuana Trafficking Organization

    Source: US FBI

    PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that it has forfeited on behalf of the United States 14 real properties located in Oregon—together worth more than $5.7 million—that were used by an interstate drug trafficking organization to illegally grow marijuana for redistribution and sale in other states. The owner of a 15th property agreed to pay the government $400,000 in lieu of having their property forfeited.

    Beginning at an unknown time, and continuing until September 2021, the properties, located in Clatsop, Columbia, Linn, Marion, Polk, and Yamhill counties, were used as illegal marijuana grow houses by an interstate drug trafficking organization led by Fayao “Paul” Rong, 53, of Houston, Texas. On July 19, 2023, after previously pleading guilty to conspiracy to manufacture marijuana, Rong was sentenced to 30 months in federal prison and five years’ supervised release.

    “This prosecution and yearslong effort to forfeit properties used by the Rong organization to grow and process thousands of pounds of marijuana demonstrate the long reach of our commitment to holding drug traffickers accountable and mitigating the damage these criminal organizations inflict on neighborhoods and communities,” said Natalie Wight, U.S. Attorney for the District of Oregon.

    “The goal of drug traffickers is to generate profits through their crimes,” said David F. Reames, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), Seattle Field Division. “The DEA and our partners at the U.S. Attorney’s Office for the District of Oregon and the Oregon State Police worked hard in this case to investigate and forfeit the ill-gotten gains of this organization, benefiting our entire community.”

    “The Oregon State Police is committed to disrupting and dismantling drug trafficking organizations operating within our state. Our priorities include safeguarding Oregon’s natural resources and mitigating the impact illicit marijuana has on them,” said Tyler Bechtel, Oregon State Police (OSP) Lieutenant. “This case is a great example of the results that can be achieved when all levels of law enforcement work together toward our common goals.”

    According to court documents, Rong purchased numerous residential houses in Oregon using several different identities and, with others in his organization, used them to grow and process marijuana and prepare it for transport to states where its use remains illegal. In a 12-month period beginning August 2020, Rong’s organization trafficked more than $13.2 million dollars in black market marijuana.

    In early September 2021, a coordinated law enforcement operation led by DEA and OSP targeted Rong’s organization. Federal, state, and local law enforcement partners executed search warrants on 25 Oregon residences and Rong’s home in Houston. During the precipitating investigation and ensuing search warrants, investigators seized nearly 33,000 marijuana plants, 1,800 pounds of packaged marijuana, 23 firearms, nine vehicles, $20,000 in money orders, and more than $591,000 in cash.

    The Rong organization takedown followed a 14-month investigation initiated by OSP after the agency learned of excessive electricity use at the various properties, which, in several instances, resulted in transformer explosions. Multiple citizen complaints corroborated law enforcement’s belief that Rong was leading a large black market marijuana operation. With the assistance of the Columbia and Polk County Sheriff’s Offices, OSP found associated marijuana grows in Clatsop, Columbia, Linn, Marion, Multnomah, and Polk Counties. On February 18, 2022, Rong was arrested by DEA agents in Houston.

    This case was investigated by DEA, OSP, and the U.S. Marshals Service with assistance from the FBI; Homeland Security Investigations; Oregon Department of Justice; Portland Police Bureau; the Yamhill, Clatsop, Marion, Multnomah, Columbia, and Polk County Sheriff’s Offices; Central Oregon Drug Enforcement Team; and Linn Interagency Narcotics Enforcement Team. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon. Forfeiture proceedings were handled by the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Division.

    The proceeds of forfeited assets are deposited in the Justice Department’s Assets Forfeiture Fund (AFF) and used to restore funds to crime victims and for a variety of other law enforcement purposes. To learn more about the AFF, please visit: https://www.justice.gov/afp/assets-forfeiture-fund-aff.

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

    MIL Security OSI –

  • MIL-OSI Security: Nevada Man Sentenced to Federal Prison for Stealing COVID-19 Relief Funds

    Source: US FBI

    PORTLAND, Ore.—A Nevada man with a lengthy criminal history was sentenced to federal prison today for stealing more than $163,000 in Covid relief program funds while on supervised release for two separate state criminal convictions.

    Justin David Goulet, 36, of Las Vegas, Nevada, was sentenced to 27 months in federal prison and three years’ supervised release. He was also ordered to pay $163,100 in restitution to the U.S. Small Business Administration (SBA).

    According to court documents, in late December 2020, Goulet was released from Oregon state prison after completing concurrent sentences for felony forgery and theft. Less than four months after his release from prison, in April 2021, Goulet devised a scheme to defraud SBA of funds appropriated by Congress to help businesses during the Covid-19 pandemic. Specifically, Goulet applied for two Economic Injury Disaster Loans (EIDLs) and successfully obtained one for $163,100.

    To support his fraudulent applications, Goulet registered a straw company called Statement Venture Group, LLC, and falsely claimed to be doing business as an independent contractor while imprisoned in 2019. He further submitted bogus tax filings, including one purportedly created by a New York accounting firm, to the SBA to substantiate robust (and fictional) revenues and payrolls. Goulet used most of the $163,000 he obtained on travel, living expenses, cars, and illegal drugs.

    On February 8, 2022, a federal grand jury in Portland returned an indictment charging Goulet with wire fraud and, on August 30, 2022, he pleaded guilty.

    This case was investigated by the SBA Office of Inspector General and the FBI. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

    Since January 2021, more than 50 people have been charged in the District of Oregon for their roles in fraud schemes targeting federal Covid relief programs. Together, these defendants attempted to steal more than $778 million in federal funds. 23 individuals have been convicted for their crimes and sentenced to a combined total of 477 months in federal prison and 894 months of probation and/or supervised release. 

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

    MIL Security OSI –

  • MIL-OSI Security: Central Oregon Drug Trafficker Sentenced to Federal Prison

    Source: US FBI

    PORTLAND, Ore.—A Central Oregon drug trafficker who conspired with others to traffic fentanyl and methamphetamine to Madras and Redmond, Oregon, and surrounding areas, was sentenced to federal prison today.

    Israel Sarabia, 30, of Culver, Oregon, was sentenced to 70 months in federal prison and five years’ supervised release.

    According to court documents, as part of a joint drug trafficking investigation by the U.S. Drug Enforcement Administration (DEA) and the Central Oregon Drug Enforcement Team (CODE), investigators learned that a Central Oregon drug trafficking organization was using a courier to transport bulk quantities of drugs from either Southern California or Mexico into Oregon. On December 10, 2022, investigators located and stopped the courier in Klamath Falls, Oregon. While searching the courier’s vehicle, investigators located three packages containing approximately 30,000 counterfeit Oxycodone pills that later tested positive for fentanyl.

    Further investigation revealed that the courier was traveling to Sarabia’s residence and that he had been tasked by Sarabia with bringing him fentanyl from Southern California or Mexico. On March 15, 2023, investigators located and arrested Sarabia near his residence in Culver. On the same day, investigators located and seized 519 grams of methamphetamine, more than 1,000 fentanyl pills, 41 grams of cocaine, and nine firearms from the residence of a co-conspirator who was working for Sarabia and storing drugs on his behalf.

    On March 15, 2023, a federal grand jury in Portland returned a six-count indictment charging Sarabia and an accomplice with conspiring with one another to distribute and possess with intent to distribute fentanyl and methamphetamine, possessing with intent to distribute fentanyl, and distributing fentanyl and methamphetamine. A third individual was also charged with conspiracy. 

    On August 21, 2023, Sarabia pleaded guilty to conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine.

    This case was investigated by DEA and CODE. It was prosecuted by Lewis S. Burkhart, Assistant U.S. Attorney for the District of Oregon.

    The CODE team is a multi-jurisdictional narcotics task force supported by the Oregon-Idaho High-Intensity Drug Trafficking Area (HIDTA) program. CODE includes members of the Bend, Redmond, Prineville, Madras, Sunriver, and Black Butte Police Departments; the Warm Springs Tribal Police Department; the Deschutes, Crook, and Jefferson County Sheriff and District Attorney’s Offices; the Oregon State Police; the Oregon National Guard; DEA; and the FBI.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office Secures Guilty Plea From Gallup Man in Navajo Nation Shooting

    Source: US FBI

    ALBUQUERQUE – A Gallup man pleaded guilty today in federal court to shooting and seriously injuring another man during a confrontation on the Navajo reservation last year.

    According to court documents, on January 22, 2024, Arthur Chee Pat, 69, an enrolled member of the Navajo Nation, heard a commotion near his residence in Gallup and drove to investigate. Upon arriving at John Doe’s residence, where his son and three other men were gathered, Pat retrieved a firearm from his vehicle. He then fired three gunshots in the direction of one man and two more towards John Doe, striking Doe once in the knee.

    After the shooting, Pat fled the scene with his son. John Doe was initially transported to Gallup Indian Medical Center and later transferred to the University of New Mexico Hospital in Albuquerque for treatment. Law enforcement apprehended Pat at his residence shortly after the incident and recovered the handgun from his vehicle.

    Pat will remain on condition of release pending sentencing, which has not been scheduled. At sentencing, Pat faces up to 10 years in prison.

    U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Zachary Jones is prosecuting the case.

    # # #

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  • MIL-OSI Security: Two Pulaski County Men Convicted After Cocaine Conspiracy Trial

    Source: US FBI

         LITTLE ROCK—After a three-day trial, a federal jury has found two Pulaski County men guilty of their involvement in a cocaine distribution conspiracy. James “Richie Rich” Richards, 52, of Wrightsville, and Isaac May, 42, of Sweet Home, were found guilty on all counts when the jury returned their verdict late Wednesday evening. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Richards and May at a later date. 

          Both Richards and May were charged with and convicted of one count of conspiracy to distribute five kilograms or more of cocaine and several counts of using a phone to facilitate a drug trafficking crime. Richards was also convicted of conspiracy to distribute 28 grams or more of crack cocaine, and one count of distribution of cocaine.

          Richards and May were originally charged in August 2018 with nine other defendants, all of whom have already pleaded guilty. The investigation revealed that in December 2017, Richards began supplying May with cocaine that Richards obtained from supplier and codefendant John Garner. In January 2018, Garner began dealing with May directly. Garner supplied May with cocaine two to three times per week until April of 2018.

          Garner had a longer relationship with Richards and began using Richards’ home in Little Rock as a base of distribution in 2010. Garner supplied Richards with cocaine on a daily basis, in significant amounts large enough for Richards to distribute to other sellers, including kilogram and ounce quantities. A confidential informant recorded transactions in which he bought cocaine from Richards, and Richards discussing his cocaine distribution activities, and those recordings were played at trial.

          At trial, Garner testified against his former customers. He stated that the approximately seven kilograms of cocaine found in his home and at his storage unit during the execution of a search warrants in June 2018 was part of the supply he was using to distribute to Richards and May, among other customers. Had Garner not been arrested, he would have continued distributing to Richards and May from this supply.

          In July 2020, Garner was sentenced to 180 months in prison. Other codefendants who have been sentenced in the case include Larry Clark, Jr. – 262 months, Antwan Hardaway – 12 months and 1 day, and Bridgette Williams – 36 months. All remaining defendants, including Richards and May, are awaiting sentencing.

          The statutory penalty for conspiracy to distribute more than five kilograms of cocaine is not less than 10 years and not more than life imprisonment, a fine of not more than $10 million, and not less than five years of supervised release. The statutory penalty for distribution of less than 500 grams of cocaine is not more than 20 years’ imprisonment, a fine of not more than $1 million, and not less than three years of supervised release. The statutory penalty for using a phone in furtherance of a drug trafficking crime is not more than four years’ imprisonment, a fine of not more than $250,000, and not more than one year of supervised release. The investigation was conducted by the FBI with assistance from the Arkansas State Police and Arkansas National Guard Counter Drug. The case was prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.

         This case 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.

    # # #

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

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

    https://www.justice.gov/edar
     

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office Secures Sentencing of Espanola Man for Federal Drug Trafficking Charges

    Source: US FBI

    ALBUQUERQUE – A repeat offender from Espanola was sentenced today to 33 months in federal prison for drug trafficking charges after being found in possession of multiple controlled substances.

    There is no parole in the federal system.

    According to court documents, on April 19, 2023, Jeremy Isaac Lopez, 29, was apprehended at the Cities of Gold Casino by the Pueblo of Pojoaque Tribal Police Department on a bench warrant that had been issued, after Lopez removed his GPS ankle monitor in violation of the pretrial release conditions put in place for his State of New Mexico charges related to an armed robbery.

    As officers approached, Lopez attempted to flee, crashing into a parked vehicle. A search of the vehicle he was driving revealed Lopez was in possession of pure methamphetamine, heroin, fentanyl, suspected suboxone, , and dozens of small clear baggies.

    Upon his release from prison, Lopez will be subject to three years of supervised release.

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

    The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Pueblo of Pojoaque Tribal Police Department, Chief Freddie Trujillo of the Pojoaque Tribal Police Department, and the Espanola Police Department. Assistant U.S. Attorney Robert James Booth II is prosecuting the case.

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    MIL Security OSI –

  • MIL-OSI Security: Former Greene County Sheriff’s Lieutenant Sentenced to Two Years in Prison

    Source: US FBI

          LITTLE ROCK—A former Greene County Sheriff’s Lieutenant has been sentenced to two years in prison after stealing over $30,000 used in a ruse undercover drug operation. Allen Scott Pillow, 56, of Paragould, was sentenced today by United States District Judge Lee P. Rudofsky.

          Pillow pleaded guilty on December 21, 2020, to one count of theft of government funds. In addition to the term of 24 months’ imprisonment, Judge Rudofsky also sentenced Pillow to two years of supervised release following his term of imprisonment as well as a $15,200 fine.

          After receiving information that former Lieutenant Pillow might be abusing his role with the Greene County Sheriff’s Office, FBI Special Agents and Task Force Officers conducted a ruse narcotics investigation and sought Pillow’s help with the investigation. Pillow had previously retired from Arkansas State Police, where he was suspected to be involved with multiple instances of theft. On November 4, 2019, FBI task force officers parked a rental vehicle in a commercial parking lot in Paragould and staged a glass drug pipe in the vehicle along with a red backpack containing $76,000. The cash was divided into ten bundles of $7,600 each, and investigators recorded the serial numbers.

          After staging the vehicle, two FBI Task Force Officers contacted Pillow on his cell phone and asked him to respond to the scene. The officers relayed to Pillow that they began a narcotics investigation in Tennessee and now needed Pillow’s help as the target had traveled into Arkansas. Pillow traveled to the scene in his Sheriff’s Department vehicle, searched the staged rental vehicle, and recovered the glass pipe, backpack, and currency.

          Later that day, Pillow called the officers and informed them that the backpack had contained $45,600, leading agents to believe Pillow had taken four bundles of $7,600 each, totaling $30,400 of stolen FBI funds. Agents obtained a search warrant for Pillow’s residence and found $2,300 in his possession and $27,820 in a safe in his attic. The serial numbers on the discovered currency matched the original FBI serial numbers. The remaining $280 in stolen funds was not located.

          Pillow was indicted in November 2019, and the case was investigated by the FBI and prosecuted by Assistant United States Attorney Erin O’Leary.

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Malvern Residents Charged in Fraudulent Puppy Scam

    Source: US FBI

          LITTLE ROCK-Two Malvern residents have been charged with fraudulently selling purebred, registered puppies that did not actually exist. Helda Verla Berinyuy and Thierry Assoueesoh Ekwelle, both 31, are charged with one count of conspiracy to commit wire fraud and 22 counts of wire fraud in an indictment handed down by a federal grand jury on May 4, 2021, that became public today.

          The indictment alleges that Berinyuy and Ekwelle were Cameroon citizens who came to the United States and attended college in Arkansas, with Ekwelle eventually becoming a naturalized American citizen. According to the indictment, Berinyuy and Ekwelle were neighbors and students at Arkansas State University Three Rivers in Malvern.

          Allegedly, from August 2018 through November 2020, Berinyuy and Ekwelle used websites to advertise the sale of purebred, AKC registered puppies such as French Bulldogs, Boxers, Toy Poodles, English Bulldogs, and others, when in fact, they did not have any puppies for sale.

          In order to collect money from purchasers, the indictment claims, the defendants promised to deliver the puppies via airplanes. After receiving the initial purchase money, the defendants would request added fees to cover costs such as puppy crates, extra handling fees due to COVID-19, and pet insurance, among other things.

          The indictment alleges that each purchaser sent the defendants an amount of money ranging from $500 to $5,000. The defendants would use various aliases to pick up the money, which was sent via Western Union and Walmart transfers at various locations throughout Arkansas. As a result of the scheme, according to the indictment, Berinyuy and Ekwelle “sold” puppies to approximately 153 victims from multiple states and received approximately $110,691.50.

          Berinyuy and Ekwelle will appear for arraignment later this month before United States Magistrate Judge Thomas Ray. The FBI is conducting the investigation. Assistant United States Attorney Pat Harris is prosecuting the case.

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

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: White Supremacist President Sentenced to 35 Years in Violent Racketeering Case

    Source: US FBI

          LITTLE ROCK—Wesley Gullett, the president of a white supremacist organization which sold multiple kilograms of methamphetamine and committed numerous violent acts—including attempted murder—will spend the more than three decades in federal prison.

          On Wednesday, United States District Court Judge Brian S. Miller sentenced Gullett, 31, of Russellville, to 35 years imprisonment, with five years of supervised release to follow, for Gullett’s leadership role in a violent drug conspiracy. There is no parole in the federal system. Gullett was president of New Aryan Empire (NAE), a white supremacist group founded by inmates in the Arkansas Department of Corrections.

          Gullett was originally charged in October 2017, and a federal grand jury charged him along with 51 other defendants in a Second Superseding Indictment in September 2019. On February 3, 2021, Gullett pleaded guilty to conspiracy to commit racketeering and conspiracy to possess methamphetamine with intent to distribute. In his plea agreement, Gullett admitted to solicitation to commit murder and attempted murder, among other violent acts.

          At Wednesday’s hearing, before imposing the sentence, Judge Miller heard details of how Gullett attempted to murder Bruce Wayne Hurley, an individual who had purchased methamphetamine from NAE associates. Gullett attempted to murder Hurley because he believed Hurley was acting as an informant for law enforcement. Gullett also solicited other NAE members to murder Hurley.

          In addition, the NAE, under the direction of Gullett, carried out other retaliatory acts against those who they believed had provided information to law enforcement. Members of NAE retaliated against one alleged witness by kidnapping him, having people take turns beating him, branding his face with a hot knife, and having a dog bite him. Another alleged witness was kidnapped twice, beaten, and stabbed. For violating NAE’s code, the organization physically assaulted and battered, “X’ed” them out (also referred to as taking their patch), or killed violating members. 

          “This defendant used his corrupt white supremacist organization to commit heinous crimes of violence,” said Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “These despicable acts, which included trying to murder a witness, will now appropriately be punished with 35 years in prison, where this defendant can no longer wreak havoc and poison our community.”

          In addition to the violent acts, law enforcement officials investigated the NAE’s methamphetamine trafficking organization. During the coordinated federal and state investigation, law enforcement agents made 59 controlled purchases of methamphetamine, seizing more than 25 pounds of methamphetamine, as well as 69 firearms and more than $70,000 in drug proceeds.

          Three remaining defendants of the original 51 charged are awaiting trial, which is currently set for September 7, 2021. One defendant is still a fugitive, and all other defendants have pleaded guilty.

          Acting U.S. Attorney Ross, together with Drug Enforcement Administration Assistant Special Agent in Charge Jarad O. Harper, and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Resident Agent in Charge Clayton Merrell, announced today’s sentence.

          The investigation was conducted by FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Drug Enforcement Administration, in partnership with the Pope County Sheriff’s Office, Fifth Judicial District Drug Task Force, Russellville Police Department, Arkansas State Police, Conway Police Department, and United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys in the Eastern District of Arkansas with assistance from the Department of Justice Criminal Division’s Organized Crime and Gang Section.

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Teacher’s Assistant Charged with Multiple Child Pornography Crimes

    Source: US FBI

          LITTLE ROCK— A teacher’s assistant has been arrested and charged with production of child pornography. Augustus “Gus” Shenker, 21, was charged in a criminal complaint on May 19, 2021. He was arrested today and will be arraigned this week before United States Magistrate Judge J. Thomas Ray.

          On May 18, 2021, FBI agents arrested Shenker on a criminal complaint alleging transportation of child pornography and possession of child pornography. Through the course of the investigation, law enforcement learned that Shenker has been employed as a teacher’s assistant at Miss Selma’s School in Little Rock since 2017. On May 18, 2021, Shenker was released on conditions of bond, but the investigation continued, and based on new information, federal prosecutors filed a second criminal complaint charging him with production of child pornography.

          The FBI is seeking to identify potential victims in this case. Anyone with additional information to report about Augustus Shenker can call the FBI at 501-221-9100.

          The investigation is being conducted by the FBI and is being prosecuted by Assistant United States Attorneys Joan Shipley and Kristin Bryant.

          A criminal complaint only contains allegations. A defendant is presumed innocent unless and until proven guilty.

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: DOJ Announces Coordinated Law Enforcement Action to Combat Health Care Fraud Related to COVID-19

    Source: US FBI

    Federal charges in the Western District of Arkansas involve wire fraud and money laundering related to the theft of federal healthcare funds

    FORT SMITH – The Department of Justice today announced criminal charges against 14 defendants, including 11 newly-charged defendants and three who were charged in superseding indictments, in seven federal districts across the United States for their alleged participation in various health care fraud schemes that exploited the COVID-19 pandemic and resulted in over $143 million in false billings.

    “The multiple health care fraud schemes charged today describe theft from American taxpayers through the exploitation of the national emergency,” said Deputy Attorney General Lisa O. Monaco. “These medical professionals, corporate executives, and others allegedly took advantage of the COVID-19 pandemic to line their own pockets instead of providing needed health care services during this unprecedented time in our country. We are committed to protecting the American people and the critical health care benefits programs created to assist them during this national emergency, and we are determined to hold those who exploit such programs accountable to the fullest extent of the law.”

    As part of the national takedown, Billy Joe Taylor, 42, of Lavaca, Arkansas, was charged by criminal complaint with health care fraud in connection with an alleged scheme to defraud the United States of over $88 million, including over $42 million in false and fraudulent claims during the COVID-19 health emergency that were billed in combination with claims that were submitted for testing for COVID-19 and other respiratory illnesses. Taylor, the owner and operator of Vitas Laboratories LLC and Beach Tox LLC, two testing laboratories, allegedly used access to beneficiary and medical provider information from prior laboratory testing orders to submit fraudulent claims for urine drug tests and other laboratory tests, including respiratory pathogen panel and COVID-19 tests, that were not actually ordered or performed. The complaint also alleges that hundreds of claims were submitted for beneficiaries after they had died or otherwise ceased providing samples.

    “While the COVID-19 pandemic was raging, and Americans were suffering from the economic and health crisis brought on by this pandemic, these defendants were allegedly scheming to steal millions of dollars set aside to help ailing Americans through COVID-19 testing and other federal health-care programs,” said Acting U.S. Attorney David Clay Fowlkes.  “This case demonstrates the importance of investigating and prosecuting those who would seek to line their own pockets by stealing funds set aside to help those struggling with the symptoms of COVID-19 and other health ailments.”  

    Additionally, the Center for Program Integrity, Centers for Medicare & Medicaid Services (CPI/CMS) separately announced today that it took adverse administrative actions against over 50 medical providers for their involvement in health care fraud schemes relating to COVID-19 or abuse of CMS programs that were designed to encourage access to medical care during the pandemic.

    “Medical providers have been the unsung heroes for the American public throughout the pandemic,” said FBI Director Christopher Wray. “It’s disheartening that some have abused their authorities and committed COVID-19 related fraud against trusting citizens. The FBI, along with our federal law enforcement and private sector partners, are committed to continuing to combat healthcare fraud and protect the American people.”

    The defendants in the cases announced today are alleged to have engaged in various health care fraud schemes designed to exploit the COVID-19 pandemic. For example, multiple defendants offered COVID-19 tests to Medicare beneficiaries at senior living facilities, drive-through COVID-19 testing sites, and medical offices to induce the beneficiaries to provide their personal identifying information and a saliva or blood sample. The defendants are alleged to have then misused the information and samples to submit claims to Medicare for unrelated, medically unnecessary, and far more expensive laboratory tests, including cancer genetic testing, allergy testing, and respiratory pathogen panel tests. In some cases, and as alleged, the COVID-19 test results were not provided to the beneficiaries in a timely fashion or were not reliable, risking the further spread of the disease, and the genetic, allergy, and respiratory pathogen testing was medically unnecessary, and, in many cases, the results were not provided to the patients or their actual primary care doctors.  The proceeds of the fraudulent schemes were allegedly laundered through shell corporations and used to purchase exotic automobiles and luxury real estate.

    “It’s clear fraudsters see the COVID-19 pandemic as a money-making opportunity — creating fraudulent schemes to victimize beneficiaries and steal from federal health care programs,” said Deputy Inspector General for Investigations Gary L. Cantrell of  Health and Human Services – Office of Inspector General (HHS-OIG). “Our agency and its law enforcement partners are aggressively and effectively investigating these egregious crimes, which is made equally clear given the results of this takedown. We will continue to support the unprecedented COVID-19 public health effort by holding accountable people who use deceptive tactics to profit from the pandemic.”

    In another type of COVID-19 health care fraud scheme announced today, defendants are alleged to have exploited policies that were put in place by CMS to enable increased access to care during the COVID-19 pandemic. For example, pursuant to the COVID-19 emergency declaration, telehealth regulations and rules were broadened so that Medicare beneficiaries could receive a wider range of services from their doctors without having to travel to a medical facility. The cases announced today include first in the nation charges for allegedly exploiting these expanded policies by submitting false and fraudulent claims to Medicare for sham telemedicine encounters that did not occur. As part of these cases, medical professionals are alleged to have offered and paid bribes in exchange for the medical professionals’ referral of medically unnecessary testing.

    The law enforcement action today also includes the third set of criminal charges related to the misuse of Provider Relief Fund monies. The Provider Relief Fund is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 2020 designed to provide needed medical care to Americans suffering from COVID-19.

    The Fraud Section is prosecuting the cases in the following districts: Western District of Arkansas, Northern District of California, Middle District of Louisiana, Central District of California, Southern District of Florida, District of New Jersey, and the Eastern District of New York.

    Today’s enforcement actions were led and coordinated by Assistant Chief Jacob Foster and Trial Attorneys Rebecca Yuan and Gary A. Winters of the National Rapid Response Strike Force of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, in conjunction with the Health Care Fraud Unit’s Medicare Fraud Strike Forces (MFSF) in Miami, Los Angeles, the Gulf Coast, and Brooklyn, as well as the U.S. Attorneys’ Offices for the Northern District of California, Western District of Arkansas, and Middle District of Louisiana.

    The case here in the Western District of Arkansas is being prosecuted by Senior Litigation Counsel James Hayes and Trial Attorney D. Keith Clouser of the National Rapid Response Strike Force, and Assistant U.S. Attorney Kenneth Elser of the U.S. Attorney’s Office for the Western District of Arkansas.

    The MFSF is a partnership among the Criminal Division, U.S. Attorneys’ Offices, the FBI and HHS-OIG. In addition, U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation, Veterans Affairs Office of Inspector General, Department of Defense Office of Inspector General, Federal Deposit Insurance Corporation, Louisiana Medicaid Fraud Control Unit, and other federal and state law enforcement agencies participated in the law enforcement action.

    The law enforcement action was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.

    The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

    The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.

    To learn more about the department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.

    Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov

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

    ###

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  • MIL-OSI Security: Two Arkansas Physicians Sentenced to a Total of 150 Months in Federal Prison for Prescription Fraud

    Source: US FBI

    FORT SMITH – Fort Smith physician and Rogers physician were sentenced today on one count each of Distribution of a Controlled Substance without an Effective Prescription. The Honorable Judge P. K. Holmes III presided over the sentencing hearings in the U.S. District Court in Fort Smith.

    According to court documents, Cecil W. Gaby, 71, of Fort Smith,  a licensed physician in the State of Arkansas, pleaded guilty on December 18, 2019 to acting and intending to act outside the usual course of professional practice without a legitimate medical purpose in dispensing a Schedule II controlled substance namely, oxycodone, to an individual, thereby causing the death of the individual. Between January 2016 and July 2018, Gaby was an owner and operator of the Hinderliter Pain Clinic in Barling, Arkansas and from July 2018 through November 2018, was owner and operator of the Gaby Medical Clinic in Fort Smith, Arkansas. From January 2016 through November 2018, Gaby issued more than 11,000 prescriptions for opioids and/or benzodiazepines. Gaby prescribed approximately 1,156,044 dosage units of Schedule II controlled substances to 347 patients (3,332 pills per patient over the course of 2 years); 98% of Gaby’s patients were prescribed at least one opioid (hydrocodone, oxycodone, methadone, etc.); 94% of Gaby’s patients received either multiple narcotics or a combination of narcotics and sedatives; and 27% of Gaby’s patients were age 40 or younger. Evidence in the case revealed that Gaby issued a large number of prescriptions without a legitimate medical purpose and not in the usual course of professional practice. From 2016 through 2018, several of Gaby’s patients died of drug overdose or related causes. As part of his plea, Gaby admitted that prescriptions he issued directly resulted in the death of one of his patients.  Gaby was sentenced to 120 months in federal prison followed by 3 years of supervised release.

    Robin Ann Cox, 64, of Rogers, was employed by the Arkansas Medical Clinic (AMC) in Rogers, Arkansas. Cox and the owner of AMC contacted the DEA by telephone to report that prescriptions from Cox‘s previous employment had been fraudulently written and filled. Cox specifically identified a prescription for a patient written and filled on May 17, 2019, and a prescription for a patient dated May 19, 2019 and filled on May 20, 2019. During the investigation into these prescriptions, the DEA discovered that the prescriptions were for Schedule II opioid medications, and that Cox had written one of the prescriptions while meeting with the patient in the parking lot of a restaurant in Fort Smith, Arkansas, in the Western District of Arkansas, Fort Smith Division. The prescription was not written in conjunction with an appropriate medical examination and therefore was issued outside the course of a legitimate medical practice. Cox was sentenced to 30 months in federal prison followed by 3 years of supervised release

    “The abuse of opioids and other pain medications is an epidemic that is destroying the lives of many people across the Western District of Arkansas.  We will continue to use all the investigation and prosecution tools available to us to identify and prosecute those who are responsible for the over-prescription of these dangerous drugs.  It is my sincere hope that these cases today send a strong message to all of those in our District who would consider operating a “pill mill” or otherwise seeking to profit from the over-prescribing of opioid drugs and other pain-killers,” said Acting U.S. Attorney David Clay Fowlkes.

    “The abuse of prescription drugs remains a significant problem in our communities.  This abuse often leads to addiction, shattered lives, and even death.  For the health and safety of our citizens, DEA and our law enforcement partners in Arkansas and beyond will continue to target those who illegally distribute these potentially dangerous drugs.  It is particularly disappointing when trusted medical professionals are engaged in the diversion of controlled substances.  We hope that the convictions and sentencings of these Physicians will serve as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause,” said DEA Special Agent in Charge Brad L. Byerley.

    The Drug Enforcement Administration (DEA), DEA Diversion Little Rock, Federal Bureau of Investigation (FBI), the United States Department of Health and Human Services Office of Inspector General (HHS), Arkansas State Medical Board, the Fort Smith Police Department, the Springdale Police Department, and the Rogers Police Department investigated the case.

    Special Assistant U.S. Attorney Anne Gardner prosecuted the case for the United States.

    Cox’s prosecution is part of the Western District of Arkansas’ Operation Pillusional, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program.  The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy.  OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations.  Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement.  The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.

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  • MIL-OSI Security: St. Lawrence County Man Sentenced for Sexual Exploitation of a Child

    Source: US FBI

    Skyler Keleher to Serve 30 Years in Federal Prison for Livestreaming his Abuse of a 2-Year-Old Victim

    SYRACUSE, NEW YORK – Skyler Keleher, age 23, of St. Lawrence County, was sentenced today to serve 30 years in federal prison for his conviction on two counts of Sexual Exploitation of a Child.  United States Attorney Carla B. Freedman, Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Superintendent Steven G. James made the announcement.

    In his prior guilty plea, Keleher admitted that on at least two separate occasions in 2017 he sexually abused a two-year-old child and livestreamed the abuse to others over the Internet, using Facebook Messenger and Facebook Live.  Since then, video recordings of the abuse have been widely circulated over the Internet, and recovered by law enforcement in at least 26 separate investigations across the United States and abroad.  While the videos were first documented by law enforcement in 2018, Keleher’s identity was not confirmed until 2022, at which time he was arrested by authorities. 

    Following his term of imprisonment, Keleher will be placed on a term of supervised release for life, and will be required to register as a sex offender.

    This case was investigated by FBI Operation Rescue Me, the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force, and the New York State Police, Troop B.  Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York, prosecuted the case.

    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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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  • MIL-OSI Security: Former State Employee Sentenced to 20 Months for Pandemic Unemployment Insurance Fraud Scheme

    Source: US FBI

    ALBANY, NEW YORK – Carl J. DiVeglia III, age 36, of Albany, was sentenced today to 20 months in prison for engaging in a fraudulent scheme to obtain more than $1.6 million in unemployment insurance benefits by abusing his position with the New York State Department of Labor (NYSDOL).

    The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jonathan Mellone, Special Agent in Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG).

    As part of his previously entered guilty plea to conspiracy to commit mail fraud, DiVeglia admitted that he and another former NYSDOL employee, Wendell Giles, abused their state computer access to create and approve false unemployment insurance applications in 2020 and 2021, including applications for the federal Pandemic Unemployment Assistance (PUA) program.  DiVeglia admitted responsibility for over $1.6 million in losses to NYSDOL and to personally receiving approximately $225,000 in fraud proceeds.

    United States District Judge Glenn T. Suddaby also imposed a 2-year term of supervised release, to begin after DiVeglia is released from prison.  Judge Suddaby also ordered DiVeglia to pay $1,662,819 in restitution to the State of New York and to forfeit a $225,000 money judgment to the United States.

    Giles was previously sentenced to 36 months’ imprisonment for his role in the scheme.  Four related defendants—Todd Ward, a/k/a “Fats,” age 45, of Troy, New York; Christopher Ward, a/k/a “Reek,” age 46, of Troy; Rocco Resciniti a/k/a “Rock,” age 50, of Albany; and Jamaine Myers, age 46, of Troy—have also pled guilty to fraud charges for their involvement in DiVeglia’s scheme.  Resciniti was sentenced to three years of probation on July 31, 2024, and the remaining defendants are scheduled to be sentenced in the fall.      

    The FBI and USDOL-OIG investigated these cases, with assistance from the NYSDOL Office of Special Investigations. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian are prosecuting the cases.

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

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

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  • MIL-OSI Security: Rutland Man Sentenced to 27 Months for Distribution of Cocaine Base

    Source: US FBI

    Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on August 20, 2024, Bradley Saldi, 44, of Rutland, Vermont, was sentenced by Chief United States District Judge Christina Reiss to a term of 27 months’ imprisonment to be followed by a 3-year term of supervised release. Saldi previously pleaded guilty to distributing cocaine base.
      
    According to court records, between May 15, 2023, and June 14, 2023, Saldi made four sales of controlled substances, cocaine base or fentanyl, to a confidential informant at the Highlander Motel in Rutland, Vermont, where Saldi was employed as a handyman.  Prior to these controlled purchases from Saldi, court records indicate that Saldi was involved in the drug trafficking activities of Jose Maldonado and Edgar Correa, who were previously convicted and sentenced in the District of Vermont for their illegal activities.  Saldi also participated with Maldonado and Correa in the assault of an individual related to a presumed drug debt.
      
    United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Vermont State Police Drug Task Force, Federal Bureau of Investigation, Homeland Security Investigations, and Rutland City Police Department.

    The case was prosecuted by Assistant U.S. Attorneys Jonathan Ophardt and Jason Turner. Saldi was represented by Mark Oettinger, Esq.

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  • MIL-OSI Security: Texas Man Sentenced to 72 Months for Conspiring with Michael Mann to Defraud Lenders

    Source: US FBI

    ALBANY, NEW YORK – Derek R. Schwartz, age 55, of Coppell, Texas, was sentenced today to 72 months in prison for conspiring with former ValueWise CEO Michael T. Mann to defraud companies that loaned millions of dollars to ValueWise subsidiaries. 

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

    Schwartz pled guilty in September 2023 to one count of conspiring to commit wire fraud and four counts of wire fraud.  He admitted to helping Mann fraudulently obtain millions of dollars in loans from financing companies.

    Mann obtained millions of dollars in loans from two financing companies, located in New York and Colorado, by falsifying his companies’ receivables.  Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his Clifton Park-based companies.  Mann routinely created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for loans.

    Schwartz was a high-level executive at Optum, and then began working for ValueWise in October 2013.  Until about August 2016, he operated TrueHR, LLC, a ValueWise subsidiary based in Dallas, Texas.

    Schwartz admitted that in October 2013, he and Mann asked Luke Steiner, a UHG/Optum employee whom Schwartz used to supervise, to represent to the financing companies that the fake invoices created by Mann were valid and payable by Optum.  With Schwartz’s encouragement, Steiner regularly made these false verifications for six years, ending in August 2019.

    Schwartz also admitted he took these other actions in furtherance of the fraudulent scheme:

    • In 2014 and 2015, he asked two other UHG/Optum employees to verify false invoices that Mann submitted to one of the financing companies, identified in court papers as “Financing Company-1.”  He instructed these employees to respond to Financing Company-1’s inquiries in the same manner as Steiner.
    • From 2014 through 2018, Schwartz lied directly to one of Mann’s lenders, “Financing Company-2.”  Mann falsely represented to Financing Company-2 that one of his companies, Weitz & Associates, needed loans in order to pay its vendors.  As part of its due diligence process, Financing Company-2 verified, with Weitz’ purported vendors, that they were receiving payments from Weitz.  One such purported vendor was TrueHR, a ValueWise company operated by Schwartz.  In fact, TrueHR was not a Weitz vendor, and Schwartz regularly lied to Financing Company-2 about TrueHR receiving payments from Weitz – and continued to do so even after TrueHR ceased to exist as a company.

    Senior United States District Judge Lawrence E. Kahn also ordered Schwartz to serve 3 years of post-imprisonment supervised release and to pay a total of $12,968,505.20 in restitution to Financing Company-1 and Financing Company-2; Judge Kahn ordered Schwartz to pay $2,000 in restitution per month, including while incarcerated. In addition, Schwartz has already made a $1 million restitution payment to the Court for distribution to his victims.

    Mann, formerly of Saratoga County, New York, pled guilty to various crimes in connection with his fraudulent scheme, and was sentenced in August 2021 to 144 months in prison.  Steiner pled guilty in February 2020 to conspiring with Mann and was sentenced to probation.

    The FBI investigated this case, and Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck prosecuted this case.

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  • MIL-OSI Security: Latham Man Arrested for Receipt of Child Pornography

    Source: US FBI

    ALBANY, NEW YORK – Eduardo Abreu, age 48, of Latham, New York, was arrested yesterday on a criminal complaint charging him with receipt of child pornography. 

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

    The criminal complaint alleges that on or about August 21, 2024, Abreu received approximately 225 images of child pornography over the internet.  The charges in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

    Abreu appeared yesterday in Albany before United States Magistrate Judge Christian F. Hummel, and ordered detained pending a detention hearing scheduled for Thursday, August 29. 

    Abreu faces at least 15 years and up to 40 years in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Abreu may also be ordered to pay restitution to the victims of his offense and forfeit any devices used in the offense. Abreu would also have to register as a sex offender upon his release from prison.

    The FBI’s Child Exploitation and Human Trafficking Task Force is investigating the case. Assistant U.S. Attorney Allen J. Vickey is prosecuting the case.

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.

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  • MIL-OSI Security: Two Men Plead Guilty to Acting as Illegal Agents of the PRC Government and Bribery

    Source: US FBI

    John Chen and Lin Feng Furthered the PRC Government’s Transnational Repression Campaign Against the Falun Gong by Bribing a Purported IRS Official

    Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN CHEN and LIN FENG pled guilty to acting as unregistered agents of the government of the People’s Republic of China (“PRC”) and bribing an Internal Revenue Service (“IRS”) agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC.  CHEN pled guilty yesterday before U.S. Magistrate Judge Andrew E. Krause and is scheduled to be sentenced on October 30, 2024, before U.S. District Judge Nelson S. Román.  FENG pled guilty today before Judge Krause and will be sentenced on October 31, 2024, before Judge Román.

    U.S. Attorney Damian Williams said: “John Chen and Lin Feng brazenly attempted to bribe an undercover agent they believed to be an IRS agent here in the United States on behalf of the PRC Government in order to harass and intimidate the Falun Gong, a target of PRC repression.  Efforts such as this to repress free speech by targeting critics of the PRC in the United States will not be tolerated.  This Office remains committed to thwarting malicious transnational repression attempts by foreign influences on American soil.”

    According to Indictment and other court documents:

    From at least approximately January 2023 to May 2023, CHEN and FENG worked inside the United States at the direction of the PRC Government, including an identified PRC Government official (“PRC Official-1”), to further the PRC Government’s campaign to repress and harass Falun Gong practitioners.  The PRC Government has designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule.  In China, Falun Gong adherents face a range of repressive and punitive measures from the PRC Government, including imprisonment.

    As part of the PRC Government’s campaign against the Falun Gong, CHEN and FENG engaged in a PRC Government-directed scheme to manipulate the IRS’s Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners (“Entity-1”).  After CHEN filed a defective whistleblower complaint with the IRS (the “Chen Whistleblower Complaint”), CHEN and FENG paid $5,000 in cash bribes, and promised to pay substantially more, to a purported IRS agent who was, in fact, an undercover officer (“Agent-1”) in exchange for Agent-1’s assistance in advancing the complaint.  Neither CHEN nor FENG notified the Attorney General that they were acting as agents of the PRC Government in the United States.

    In the course of the scheme, CHEN, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC Government, was to carry out the PRC Government’s aim of “toppl[ing] . . . the Falun Gong.”  During a call intercepted pursuant to a judicially authorized wiretap, CHEN and FENG discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if CHEN and FENG’s meetings to bribe Agent-1 did not go as planned.  CHEN and FENG also discussed that PRC Official-1 was the PRC Government official “in charge” of the bribery scheme targeting the Falun Gong.

    As part of this scheme, CHEN and FENG met with Agent-1 in Newburgh, New York, on May 14, 2023.  During the meeting, CHEN gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment.  CHEN further offered to pay Agent-1 a total of $50,000 for opening an audit of Entity-1, as well as 60% of any whistleblower award from the IRS if the Chen Whistleblower Complaint were successful.  On May 18, 2023, FENG paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme. 

    *                *                *

    CHEN, 71, of Chino, California, and FENG, 44, a PRC citizen and resident of Los Angeles, California, each pled guilty to one count of acting as an unregistered agent of a foreign government, which carries a maximum sentence of 10 years in prison, and one count of bribing a public official, which carries a maximum sentence of 15 years in prison.

    The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

    Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York and Los Angeles Field Offices and Counterintelligence Division and the Office of the U.S. Treasury Inspector General for Tax Administration.  Mr. Williams also thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for their assistance.

    The case is being handled by the Office’s White Plains Division and National Security and International Narcotics Unit.  Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard, and Kathryn Wheelock are in charge of the case, with assistance from Trial Attorney Christina Clark of the Counterintelligence and Export Control Section.

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  • MIL-OSI Security: Tonawanda Man Pleads Guilty to Production of Child Pornography

    Source: US FBI

    BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Michael E. Swain, 36, of Tonawanda, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to production of child pornography, carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.

    Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between October 20 and November 1, 2021, Swain coerced five minor victims to engage in sexually explicit conduct for the purpose of producing visual depictions. Specifically, Swain communicated with a 15-year-old minor female who resided in Colorado using Discord, a social media platform. The communications included sexually graphic conversations, during which Swain requested that the minor female take sexually explicit videos and images and send them to him. In addition, Swain engaged in numerous sexual communications with the minor female from approximately 2019 to 2022, during which other sexually explicit images and videos were sent to Swain. On February 28, 2023, the FBI executed a search warrant at Swain’s residence and seized a desktop computer tower, a laptop computer, and an external hard drive, all of which were found to contain child pornography.

    The plea is the result of an investigation by the Tonawanda Police Department, under the direction of Chief James Stauffiger, the Federal Bureau of Investigation Buffalo Office Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the New York State Police, under the direction of Stanley Edwards III.     

    Sentencing is scheduled for December 4, 2024, at 2:00 p.m. before Judge Vilardo.

    # # # #

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  • MIL-OSI Security: Five Charged with Operating Cockfighting Events in Inland Empire

    Source: US FBI

    RIVERSIDE, California – Four Inland Empire residents have been arrested on a federal criminal complaint alleging they organized and ran cockfighting events in San Bernardino County.

    The following defendants, who were arrested Sunday at a cockfighting event, are charged with aiding, abetting, inducing, and willfully causing another person to sponsor and exhibit an animal in an animal fighting venture and are expected to make their initial appearances this afternoon in United States District Court in Riverside:

    • Isidro Chaparro Sanchez, 59, of Corona;
    • Luis Octavio Angulo, 61, of Rialto;
    • Sergio Jimenez Maldonado, 51, of San Bernardino; and
    • Eva Anilu Pastor Uriostegui, 53, of Moreno Valley.

    Law enforcement is looking for Cirilo Esquivel Alcantar, 56, of San Bernardino, who also is charged in this case.

    According to an affidavit filed with the complaint, the defendants organized and facilitated cockfighting events in Muscoy. The defendants held events on Sundays during the cockfighting “season,” which generally runs from January to August. Individuals brought roosters to fight (i.e., cockfighters) and spectators attended the events, which at times drew more than 100 attendees. 

    Attendees parked – at the cost of $20 – at a different location nearly one mile away from the event location. Attendees were then shuttled to the cockfighting location, where they paid another fee – usually $40 – to enter the arena where the cockfights took place. Attendees could also place bets on the cockfights and participate in a raffle. 

    Cockfighters paid a fee to enter their roosters into fights – $1,000 for four roosters – and then entered the fighting arena with their roosters when it is their turn to fight. Several cockfights took place on a given day. Before the fights, a sharp blade, known as a “gaff” and usually curved and approximately 1.5 inches in length, was often attached to each rooster’s leg. At times, the fights ended in the death of one or both roosters.

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

    If convicted, the defendants would each face a statutory maximum sentence of five years’ imprisonment.

    The FBI is investigating this matter.

    Assistant United States Attorneys Cory L. Burleson of the Riverside Branch Office and Dennis Mitchell of the Environmental Crimes and Consumer Protection Section are prosecuting this case.

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  • MIL-OSI Security: Ventura Men Receive Prison Terms for Crime Spree in Which Taco Truck Vendor Extorted, Small Businesses Robbed Last Year

    Source: US FBI

    LOS ANGELES – Two Ventura County men were sentenced today to federal prison terms for their roles in a crime spree late last year in which a taco truck vendor was extorted, two small businesses were robbed, and for fraudulently using debit and credit cards from a victim robbed at gunpoint.

    Oscar Aguirre Silva, 31, of Ventura, was sentenced to 72 months (six years) in federal prison by United States District Judge Hernán D. Vera, who also ordered him to pay $2,941 in restitution.

    Silva pleaded guilty on April 25 to one count of interference with commerce by extortion (Hobbs Act), two counts of interference with commerce by robbery (Hobbs Act), three counts of bank fraud, two counts of attempted bank fraud, and two counts of aggravated identity theft.

    At a separate hearing today, Judge Vera sentenced Edward Donaldo Ramirez Martinez, 28, of Ventura, a co-defendant, to 54 months (4½ years) in federal prison. Ramirez was ordered to pay $1,597 in restitution.

    Ramirez pleaded guilty on April 25 to one count of aggravated identity theft and one count of being a felon in possession of ammunition.

    “The victims in this case were people just trying to make a living by operating a food truck when they were allegedly robbed at gunpoint,” said United States Attorney Martin Estrada. “Violent gun crime tears at the fabric of our society. Punishing those who engage in violent gun offenses is and will continue to be a priority for my office. Our community deserves no less.”

    On November 6, 2023, Silva threatened violence to extort a taco truck vendor in Oxnard. Four days later, Silva robbed a woman at gunpoint and stole her iPhone, and her purse, which contained a credit card and a debit card in the victim’s name as well as a debit card in the name of another victim. Ramirez served as the getaway driver during this armed robbery. Both men then traveled to a Walmart store in Ventura, where they used the stolen cards to purchase $524 worth of merchandise. Later, Silva and another co-defendant, David Ray Reyes, 30, of Ventura, then used and attempted to use the stolen cards to purchase other items at an Oxnard smoke shop.

    On November 25 and 26, 2023, Silva robbed two Oxnard businesses – a smoke shop and a grocery outlet.

    Finally, on December 2, 2023, Ramirez, while under the influence of methamphetamine, possessed an assault rifle that did not bear a serial number – commonly known as a “ghost gun.” The firearm carried four rounds of ammunition. Ramirez was not legally permitted to possess the ghost gun or the ammunition because of his February 2020 felony conviction in Ventura County Superior Court for carrying a loaded firearm.

    Reyes pleaded guilty on March 6 to one count of attempted bank fraud, one count of bank fraud, and two counts of aggravated identity theft. On June 6, Judge Vera sentenced Reyes to 26 months in federal prison.

    All three defendants remain in federal custody.

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

    The Ventura County Violent Crime Task Force, which includes the FBI, the Oxnard Police Department, the Ventura County Sheriff’s Office, and the Ventura Police Department, conducted this investigation.

    Assistant United States Attorney Lyndsi C. Allsop of the Violent and Organized Crime Section prosecuted this case.

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  • MIL-OSI Security: Prior Felon Going to Prison on New Child Pornography Charge

    Source: US FBI

    BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Scott Millar 55, of Buffalo, NY, who was convicted of possession of child pornography, was sentenced to serve 138 months in prison by U.S. District Judge Richard J. Arcara.

    Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated in July 2023, Millar was under the supervision of the United States Probation Department based on a 2009 conviction for possessing child pornography. A condition of his supervision was that he was not allowed to commit another criminal offense. A probationary search of Millar’s telephone revealed images and videos of child pornography. 

    The sentencing is the result of an investigation by the Federal bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the United States Probation Office, under the direction of Chief Probation Officer Timothy Englert.

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  • MIL-OSI Security: Compton Man Sentenced to More Than 10 Years in Prison for Leading Ring That Trafficked Cocaine from California to Alaska

    Source: US FBI

    LOS ANGELES – A Compton man was sentenced today to 127 months in federal prison for leading a Southern California-based drug trafficking organization that shipped kilogram quantities of cocaine to Alaska via commercial flights and U.S. mail.

    Raul Cisneros Jr., 46, was sentenced by United States District Judge Fernando M. Olguin.

    Cisneros pleaded guilty May 9 to one count of possession with intent to distribute cocaine. He has been in federal custody since October 2020 and was the final defendant to plead guilty to criminal charges in this case.

    From at least July 2014 to August 2016, Cisneros managed the operations of a drug trafficking outfit that sold cocaine and methamphetamine to customers.

    In October 2015, law enforcement stopped Cisneros in his car while he was en route to an accomplice’s home to pick up money. In his car, Cisneros possessed approximately $5,003 in cash, which were drug proceeds. He also possessed approximately 10 kilograms (22.1 pounds) of cocaine packaged in five separate bundles, which he intended to sell to customers.

    After obtaining a search warrant for Cisneros’ home, law enforcement seized from Cisneros’ kitchen cabinets approximately 30.7 kilograms (66.1 pounds) of cocaine, approximately 167.7 grams of crack cocaine, and approximately 3.6 kilograms (1.1 pounds) of methamphetamine. Law enforcement also found hundreds of used empty green cellophane wrappers and a money counter, which Cisneros used to facilitate his drug distribution operation.

    Law enforcement also seized from Cisneros’ kitchen four firearms and 72 rounds of ammunition during this search.

    In total, agents recovered $568,357 in cash proceeds from drug deals and – in the trunk of Cisneros’ white Honda Accord vehicle, which was parked in the driveway of his residence – approximately 7.02 kilograms (15.5 pounds) of cocaine wrapped in seven packages of green cellophane stashed inside a bag. Cisneros intended to distribute the cocaine to others as part of his drug trafficking operation.

    Federal prosecutors secured eight convictions in this matter.

    The High Intensity Drug Trafficking Area (HIDTA) Southern California Drug Task Force (SCDTF) consisting of the FBI and the Drug Enforcement Administration investigated this matter.  Substantial assistance was provided by the Los Angeles County Sheriff’s Department.  This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).

    Assistant United States Attorneys Kathy Yu, Chief of Ethics and Post-Conviction Review, and Chelsea Norell of the Violent and Organized Crime Section prosecuted this case.

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

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  • MIL-OSI Security: Grand Jury Indicts Prior Felon on Drug and Gun Charges

    Source: US FBI

    BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a three-count indictment charging Robert L. Robinson with possession with intent to distribute cocaine,  possession with intent to distribute cocaine, possession of firearms in furtherance of drug trafficking, and being a felon in possession of firearms. The charges carry a maximum penalty of life in prison.

    Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the indictment and a previously filed complaint, on June 7, 2024, law enforcement executed a search warrant at Robinson’s Buffalo residence. During the search, investigators recovered quantities of suspected cocaine and marijuana, $35,869.00 in cash, two firearms, ammunition, and drug paraphernalia. One of the firearms was reported as a duty weapon stolen from a member of the Miami Dade Police Department on July 18, 2019. After the execution of the search warrant, Robinson was taken into custody.

    Robinson was previously convicted of felony crimes in 2003 and 2011 and is legally prohibited from possessing firearms.

    The indictment is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia. 

    The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

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  • MIL-OSI Security: Former Syrian Prison Official Charged with Immigration Fraud

    Source: US FBI

    LOS ANGELES – A former Syrian government official was indicted today for allegedly lying to United States immigration authorities about his time running a Syrian prison where prisoners, including political dissidents, were physically mistreated.

    Samir Ousman Alsheikh, 72, of Lexington, South Carolina, is charged with one count of obtaining, using, and possessing a green card that was procured through false statements and one count of attempted naturalization fraud.

    Alsheikh was arrested on a federal criminal complaint on July 10 at Los Angeles International Airport and remains in federal custody. His arraignment is scheduled for August 16 in United States District Court in downtown Los Angeles.

    “Samir Alsheikh attempted to settle in Southern California after allegedly participating in grave abuses while part of the Assad regime in Syria,” said United States Attorney Martin Estrada. “His indictment sends a clear message that those who seek immigration benefits in our country after having previously committed human rights violations will find no shelter here.”

    According to court documents, Alsheikh was a Syrian government official who held a variety of positions in the Syrian police and the Syrian state security apparatus, and was associated with the Syrian Ba’ath Party, the totalitarian party that ruled Syria.

    He allegedly served as the head of Damascus Central Prison (colloquially known as “Adra Prison”) from approximately 2005 to 2010. As described in the indictment, political dissidents and other prisoners were severely physically abused at Adra Prison during Alsheikh’s tenure there. The indictment further alleges that Alsheikh was subsequently appointed governor of the province of Deir Ez-Zour by Syrian President Bashar al-Assad.

    Alsheikh allegedly concealed his employment at the prison, persecution of any person because of political opinion, and involvement in harming others when he applied for U.S. citizenship in 2023. He allegedly made similar false statements when applying for a visa that enabled him to enter the United States in 2020, become a lawful permanent resident, and obtain a green card.

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

    If convicted, Alsheikh faces a maximum penalty of 10 years in federal prison.

    HSI and the FBI are investigating the case, with support from U.S. Citizenship and Immigration Services and the HSI-led Human Rights Violators and War Criminals Center (HRVWCC).

    Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section and Justice Department Trial Attorneys Patrick Jasperse and Alexandra Skinnion of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case. The Justice Department’s Office of International Affairs also provided assistance.

    Members of the public who have information about human rights violators in the United States are urged to contact U.S. law enforcement through the FBI tip line at 1-800-CALL-FBI or the HSI tip line at 1-866-DHS-2-ICE, or complete the FBI online tip form or the ICE online tip form.

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  • MIL-OSI Security: Cheektowaga Man Pleads Guilty to Child Pornography Charge

    Source: US FBI

    BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that John Stuart, 35, of Cheektowaga, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to possession of child pornography involving a prepubescent minor, which carries a maximum penalty of 20 years in prison, and a fine of $250,000.

    Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that in August 2019, the FBI received a lead indicating that in May 2019, an online user accessed child sexual abuse and exploitation material via a website on the Tor network. Subsequent investigation traced the IP address to Stuart. In October 2020, a search warrant was executed at Stuart’s residence, during which law enforcement seized multiple electronic devices, including two laptop computers, a cell phone, a hard drive, and a desktop computer tower. A forensic review recovered approximately 8,000 videos and approximately 2,000 images of child pornography on one of the laptops, and approximately 150 images and one video of child pornography on the second laptop. Approximately 90 images and 150 videos of child pornography were recovered from the cell phone and approximately 90 images and two videos on the hard drive. Some of the images included depictions of violence against children.

    Stuart also admitted during his plea that during the execution of the search warrant, law enforcement recovered live marijuana plants, more than a pound of dried marijuana ready for consumption, and that he was a chronic user of marijuana. Stuart was also found to be in possession of three firearms. Because he was a user of controlled substances, Stuart was legally prohibited from owning or possessing firearms.

    The plea is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Cheektowaga Police Department, under the direction of Chief Brian Coons. 

    Sentencing will be scheduled at a later date.    

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  • MIL-OSI Security: Owner of South Gate-Based Tattoo Removal Business Pleads Guilty to Health Care Fraud Scheme That Recruited Paraplegics

    Source: US FBI

    LOS ANGELES – The owner of a tattoo removal business in South Gate pleaded guilty today to federal criminal charges for recruiting paraplegics in a health care fraud scheme that netted more than $1.7 million and for cheating on his taxes.

    Joseph Tusia, 60, of Leominster, Massachusetts, pleaded guilty to a two-count information charging him with health care fraud and tax evasion.

    According to his plea agreement, Tusia operated a laser tattoo removal business in South Gate and 10 durable medical equipment supply companies (DMEs) in California, Nevada, and Massachusetts. Tusia controlled the tattoo removal companies and the DMEs but intentionally withheld his name from bank accounts and state registrations to evade tax liability.

    On December 30, 2015, Tusia and a co-schemer submitted an application to Anthem Blue Cross (“Anthem”) for a small group health insurance plan. Anthem’s small group plan permitted benefits and health coverage for permanent employees who worked full-time. Despite the eligibility requirements, Tusia caused to be submitted to Anthem the names of nine individuals purported to be full-time employees of Tattoo Removal and a person who was a dependent of the Tusia. None of these purported employees were employed by Tattoo Removal or eligible for health insurance coverage under Tattoo Removal’s plan with Anthem. 

    According to his plea agreement, Tusia identified the Purported Tattoo Removal Employees from his friends and associates who were paraplegic and required medical supplies, knowing and expecting that the Purported Tattoo Removal Employees would purchase their medical supplies from the DMEs that were controlled by Tusia and his associates.

    From March 2016 to June 2020, Tusia and his co-schemers submitted fraudulent claims to Anthem on behalf of the DMEs for medical supplies provided to the purported employees, knowing that none of them were eligible for coverage. As a result of these fraudulent claims, Anthem paid the DMEs controlled by Tusia approximately $1,731,215.

    Tusia also admitted in his plea agreement to knowingly and willfully failing to report income he received from the DMEs in tax years 2017 through 2020, totaling more than $1,573,644. Tusia admitted that he failed to pay tax to the IRS and that he took affirmatives steps to evade paying taxes, such as by creating the DMEs and opening bank accounts for the DMEs in the names of his associates and co-schemers.

    United States District Judge George Wu scheduled a December 5 sentencing hearing, at which time Tusia will face a statutory maximum sentence of 10 years in federal prison on the health care fraud count, and up to five years in federal prison for the tax evasion count.

    The United States Department of Labor – Employee Benefits Security Administration, the FBI, and IRS Criminal Investigation are investigating this matter.

    Assistant United States Attorney Jeff Mitchell of the Major Frauds Section is prosecuting this case.

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  • MIL-OSI Security: Grand Jury Charges 37 Florencia 13 Members and Associates with Federal Crimes, Including Three Murders, One of Them a Beating Death

    Source: US FBI

    LOS ANGELES – Federal and local law enforcement officials today announced the unsealing of federal grand jury indictments charging a total of 37 members and associates of the South Los Angeles-based Florencia 13 (F13) street gang, alleging a series of crimes, including fentanyl trafficking, extortion, and three murders, including that of a man beaten to death outside a bar in the gang’s “territory.”

    Today’s takedown resulted in the arrests of 23 F13 members and associates who are expected to be arraigned on 11 indictments this afternoon in United States District Court in downtown Los Angeles. Six of the defendants were already in state or federal custody, and authorities continue to search for eight other defendants charged in these cases, including multiple defendants currently believed to be fugitives in Mexico.

    As part of this investigation, law enforcement has seized approximately 21 pounds of methamphetamine, nine pounds of fentanyl, and 6.5 pounds of heroin. Authorities also have seized 25 firearms and approximately $70,000 in cash connected to this investigation.

    “Through murder, drug trafficking, violent robberies, and other criminal behavior, street gangs bring devastation upon our communities,” said United States Attorney Martin Estrada. “We must stand united against gang violence. Today’s arrests and seizures demonstrate that we will be relentless in combating these criminal organizations.”

    “Florencia-13 is known for its barbaric tactics which, tragically, resulted in several murders alleged in the indictment,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field office. “Residents of the community in which Florencia-13 operates deserve to live their lives without fear from violence and extortion, and this joint investigation demonstrates our shared commitment to that goal.”

    “Today’s coordinated take down of gang members associated with the ‘Florencia 13’ criminal street gang creates safer neighborhoods by removing dangerous individuals from our communities and disrupting their criminal network that fuels this violence,” said Sheriff Robert G. Luna. “By removing key offenders from our streets who instill fear and terrorize our communities, we are taking decisive action to restore safety and enhance the quality of life for all residents. Our commitment to reducing gang violence remains unwavering as we work together to build safer, stronger communities.”

    The bulk of the charges in today’s takedown comes from two federal grand jury indictments targeting Florencia 13. The first indictment charges 19 defendants – including Celerino Jaramillo, 30, a.k.a. “Bizzy,” of South Los Angeles, a “shot caller” in one of F13’s cliques – with conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.

    Among a series of alleged racketeering-related crimes, during one incident on October 17, 2022, a mob of F13 members – including Jonathan Reyes, 19, a.k.a. “Creeper,” of South Los Angeles – beat one victim to death in the early morning outside a bar in the Florence-Firestone neighborhood of Los Angeles. The victim repeatedly was stomped, kicked, and punched, and beaten with a baseball bat.

    The indictment further alleges that Jaramillo and co-defendant Oscar Hernandez, 30, a.k.a. “Drex,” of South Los Angeles, on June 19, 2023, murdered a victim identified in court documents as “R.A.,” an F13 member who had violated the gang’s rules. The day after R.A.’s was shot and killed, Jaramillo allegedly told fellow gang members that he wanted Hernandez inducted into F13’s Jokers clique because he “proved [Jaramillo] solid.”

    The following month, Jaramillo and Hugo Armando Pineda, 36, a.k.a. “Menace,” of South Los Angeles, allegedly murdered “D.E.,” another F13 member in bad standing.

    The rest of this superseding indictment alleges a series of criminal activity by Jaramillo and others, including the running of “casitas,” or illegal after-hours bars and clubs, including collection of extortionate “taxes” from them, trafficking of narcotics such as fentanyl and methamphetamine, and illegal use and possession of firearms.

    A second indictment unsealed today charges eight Florencia 13 associates – including Saul Ayon Quintero, 50, of Bellflower – with drug-related crimes, including conspiracy to distribute fentanyl, methamphetamine, and heroin, and illegally using and possessing firearms and ammunition.

    Finally, nine additional Florencia 13 members and associates are charged in eight separate indictments with methamphetamine distribution counts, and another Florencia 13 member is charged in a separate indictment with possession of an unregistered firearm and being a felon in possession of firearms and ammunition.

    An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

    If convicted, most of the defendants would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.

    The FBI, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, and the United States Marshals Service are investigating this matter.

    Assistant United States Attorneys Christopher C. Kendall and Daniel H. Weiner of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting these cases.

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

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  • MIL-OSI Security: Federal Grand Jury Indicts Buffalo Man for Selling Methamphetamine

    Source: US FBI

    BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Mario Pittman Jr., 30, of Buffalo, NY, with possession with intent to distribute methamphetamine, which carries a maximum penalty of life in prison.

    Assistant U.S. Attorney Jeffrey E. Intravatola, who handled the case, stated that according to the indictment and a previously filed complaint, since March 2024, the FBI Safe Streets Task Force and the Lackawanna Police Department have been investigating Pittman’s drug trafficking activities. The investigation included multiple controlled purchases of methamphetamine from Pittman. The investigation also determined that Pittman has two prior violent felony convictions.

    The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Lackawanna Police Department, under the direction of Chief Mark Packard, and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia.

    The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.  

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