NewzIntel.com

Category: Security Intelligence

  • MIL-OSI Security: Marion Woman Pleads Guilty to Wire Fraud for Misspending Money from Special Needs Trust

    Source: Office of United States Attorneys

    A woman who spent nearly all of the funds in a special needs trust on her own expenses pled guilty on March 20, 2025, in federal court in Cedar Rapids.  Megan Middaugh, age 39, from Marion, Iowa, was convicted of wire fraud.

    In a plea agreement, Middaugh admitted that in September 2019 she petitioned a state court for the authority to, among other things, settle a personal injury lawsuit on behalf of the victim and establish a special needs trust for the victim.  The court granted her petition in October 2019.  In February 2020, Middaugh opened a checking account as the medical assistance special needs trust for the victim and funded it with $67,070.50 from the lawsuit settlement.  Middaugh was the trustee on the account.  Thereafter, Middaugh spent nearly all of the funds in the trust on her own personal expenses, including gambling.  Between February 2020 and January 2021, Middaugh spent $52,000 of the trust funds on online gaming.  Middaugh failed to file required annual accountings of the trust in 2020, 2021, and 2022 with the state court.  After appearing at a compliance hearing with the court, Middaugh created and filed false reports that appeared to show regular expenditures on the behalf of the victim.

    Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared.  Middaugh remains free on bond previously set.  Middaugh faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and up to three years of supervised release following any imprisonment.

    The case is being prosecuted by Assistant United States Attorney Kyndra Lundquist and was investigated by Marion Police Department.  

    Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

    The case file number is 24-CR-0089.  

    Follow us on X @USAO_NDIA.

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  • MIL-OSI Security: Hartford Man Charged with Narcotics Trafficking Offenses

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, Stephen P. Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford has returned a three-count indictment charging JOSE BARET, 33, of Hartford, with narcotics trafficking offenses.

    The indictment was returned on January 29, 2025.  Baret appeared today before U.S. Magistrate Judge Thomas O. Farrish in Hartford and pleaded not guilty to the charges.  He has been detained since May 23, 2024, when he was arrested in Lebanon, New Hampshire, on separate charges.

    As alleged in court documents and statements made in court, Baret was arrested on related state charges on April 10, 2024.  On that date, a search of Baret’s vehicle and a hotel room he used revealed a distribution quantity of fentanyl, and a search of his residence on Goodrich Street in Hartford revealed quantities of fentanyl, heroin, methamphetamine, and cocaine.

    The indictment charges Baret with two counts of possession with intent to distribute 40 grams or more of fentanyl, and one count of possession with intent to distribute 500 grams or more of cocaine, 40 grams or more of fentanyl, 50 grams or more of methamphetamine, and heroin.  Each offense carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.

    Acting U.S. Attorney Silverman stressed that an indictment is only a charge and is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

    This matter is being investigated by the Drug Enforcement Administration and the Hartford Police Department.  The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

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  • MIL-OSI Security: Rapid City Man Sentenced for Larceny

    Source: Office of United States Attorneys

    PIERRE – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced a Rapid City, South Dakota, man convicted of Larceny. The sentencing took place on March 24, 2025.

    Zyin Wright, age 22, was sentenced to time served from his arrest on March 27, 2024, through March 24, 2025, equal to approximately one year in custody, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Wright was further ordered to pay restitution in the amount of $4,124.47.

    Wright was indicted by a federal grand jury in June 2024. He pleaded guilty on December 16, 2024.

    The conviction stems from conduct that occurred in March of 2024. On the evening of March 26, 2024, Wright stole a motor vehicle from a residence in Rapid City. He then drove the vehicle to Mission, South Dakota, in the Rosebud Indian Reservation. The vehicle was reported stolen on the morning of March 27, 2024, and it was located in Mission a short time later with the assistance of vehicle-tracking software. Wright was arrested in Mission later that day.

    This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.

    This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Rapid City Police Department. Assistant U.S. Attorney Kirk Albertson prosecuted the case.

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  • MIL-OSI Security: Arizona man gets life in prison for kidnapping victim and sexually exploiting minors

    Source: Office of United States Attorneys

    WICHITA, KAN. – An Arizona man was sentenced to life in prison for kidnapping and sexually assaulting his victim at gunpoint as he transported her across state lines. A federal judge also sentenced the defendant to 95 years in prison for other related crimes, to be served concurrent with his life sentence.

    Martin Brandon Gillen, 27, of Phoenix, Arizona, pleaded guilty to one count of kidnapping, two counts of sexual exploitation of a minor, one count of transportation for criminal sexual activity, one count of transportation of child pornography, and one count of possession of child pornography.

    In late 2021, Martin Brandon Gillen began an online relationship with a minor female who was then 17 years of age. He persuaded her to take and send him sexually explicit images and videos which he kept and later used to threaten the victim. Over the course of the online relationship, Gillen repeatedly made violent threats against the victim. In March 2024, Gillen traveled to Illinois to pick up the victim then transported her across state lines, from Illinois to Missouri to Kansas. During this trip, Gillen sexually assaulted her on multiple occasions.

    Gillen and the victim were found in Kansas by officers with the Iola Police Department. In his possession, Gillen had a firearm, multiple magazines, and zip ties. Gillen admitted to officers that his cell phone contained child sexual abuse materials. Subsequent examination by law enforcement revealed hundreds of images and videos of child sexual abuse materials on his cell phone, as well as sexually explicit images of the female from when she was 17 years old. Agents with Homeland Security Investigations (HSI) also found images of Gillen sexually abusing an unrelated 4-year-old child from Utah on the phone.

    This case was investigated by Homeland Security Investigations (HSI), the Iola Police Department, the New Baden, Illinois Police Department, and the Illinois State Police.

    Assistant U.S. Attorney Jason Hart prosecuted the case.

    Project Safe Childhood
    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit     https://www.justice.gov/psc.

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  • MIL-OSI Security: Bakersfield Man Sentenced to 24 Months in Prison for Burglarizing a Kern County Post Office

    Source: Office of United States Attorneys

    FRESNO, Calif. — Shawn Van Dixon, 39, of Bakersfield, was sentenced today to 24 months in prison by U.S. District Judge John A. Mendez for burglarizing a U.S. Post Office in Caliente, Acting U.S. Attorney Michele Beckwith announced. 

    According to court documents, on Oct. 28, 2023, Van Dixon forcefully broke into the U.S. Post Office in Caliente by smashing in a glass door with a black hatchet. Van Dixon broke in just before working hours when the post office was empty. Once inside he stole several mail items, including envelopes, letters, and packages, from P.O. boxes and other locations belonging to more than 10 victims before driving off in a stolen truck.

    This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Cody S. Chapple prosecuted the case.

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  • MIL-OSI Security: Corpus Christi jury convicts Cuban national for transporting illegal aliens

    Source: Office of United States Attorneys

    CORPUS CHRISTI, Texas – A 52-year-old Cuban citizen lawfully residing in Jacksonville, Florida, has been convicted for transporting seven illegal aliens in a tractor-trailer, announced U.S. Attorney Nicholas J. Ganjei.

    The federal jury deliberated for under two hours before finding Jorge Grimon Maturell guilty following a less than two-day trial.

    On Nov. 1, 2024, Maturell drove to the Falfurrias Border Patrol checkpoint in a tractor-trailer. After a K-9 alerted to the vehicle, authorities directed him to secondary inspection. At that time, they discovered three individuals hiding in the corner of the sleeper area and four underneath a mattress. All seven were illegal aliens with no authority to be in the United States.

    The jury heard that authorities also found $20,684 in his possession and discovered communications between Maturell and others discussing transporting people for approximately that same amount of money

    Maturell claimed an unknown person at a gas station in Edinburg had threatened him earlier that day to smuggle the illegal aliens. The investigation revealed no evidence he had stopped at the specified gas station at all that day.

    The jury also heard Maturell directed the illegal aliens where to hide when entering his vehicle and to not make any noise when they arrived at the checkpoint. Testimony further revealed Maturell made no stops after the aliens got into the vehicle before arriving at the checkpoint.

    The defense attempted to convince the jury he transported the illegal aliens under duress. Maturell took the stand and admitted his original statement of being threatened in Edinburg was not true, but that he was really threatened in Laredo. He claimed he was directed to travel to McAllen where he then picked up the illegal aliens and proceeded to travel north through the checkpoint.

    The jury did not believe defense claims and found him guilty as charged.

    U.S. District Judge David Morales presided over the trial and set sentencing for June 25, at which time Maturell faces up to five years in federal prison.

    Previously released on bond, Maturell was taken into custody following the verdict where he will remain pending sentencing.

    Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Zachary Bird and Patrick Overman are prosecuting the case. 

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  • MIL-OSI Security: Whitehorse — Crime Reduction Unit arrest three people for trafficking offences

    Source: Royal Canadian Mounted Police

    Shortly after 8 pm on March 21, 2025, officers from the Crime Reduction Unit (CRU) arrested three individuals on Main Street in Whitehorse for trafficking drugs.

    Subsequently, a related vehicle was examined. During this investigation, CRU confiscated cash, a scale, substances suspected to be fentanyl, as well as weapons including a machete, a knife, and bear spray.

    Two of the individuals, an adult male and an adult female, were released on an undertaking to attend court at a later date on charges of trafficking a controlled substance.

    34-year-old Whitehorse resident, Jared Skookum was held in custody on the following charges: two counts of possession for the purposes of trafficking, possession of property obtained by crime and two counts of failure to comply with a release order.

    Mr. Skookum’s next court appearance is scheduled for March 26 at 9:30 am.

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  • MIL-OSI Security: Ottumwa Man Sentenced to 125 Months in Federal Prison for Firearm Charge

    Source: Office of United States Attorneys

    DES MOINES, Iowa – An Ottumwa man was sentenced today to 125 months in federal prison for possessing a firearm as a felon.

    According to public court documents and evidence presented at sentencing, in early 2024, Nolan Ryan Rork, 19, was on probation with the State of Iowa. In April 2024, Rork removed his electronic ankle monitor. In June 2024, law enforcement located Rork. While fleeing, Rork threw his backpack, which had two loaded firearms and more than 60 grams of methamphetamine.

    After completing his term of imprisonment, Rork will be required to serve a three-year term of supervised release. There is no parole in the federal system.

    United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Wapello County Sheriff’s Office and the Ottumwa Police Department.

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

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  • MIL-OSI Security: Romanian Men Indicted For Card Skimming

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA – Acting U.S. Attorney Michael M. Simpson announced that DANIEL IULIAN TEUTOC (“TEUTOC”), a/k/a “Simon Mikula,” and CONSTANTIN CALIN (“CALIN”), citizens of Romania, were charged on March 21, 2025, in a nine-count indictment for conspiracy to commit wire and bank fraud, in violation of Title 18, United States Code, Sections 1343, 1344, and 1349; conspiracy to commit access device fraud, in violation of Title 18, United States Code, Sections 371, 1029(a)(3) and 1029(a)(4); and seven counts of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3). 

    According to the indictment, TEUTOC and CALIN went to Walmart stores across the Eastern District of Louisiana, including Laplace, Slidell, Harvey, Boutte, Chalmette, and New Orleans. TEUTOC and CALIN captured card information at different the points of sale, from card skimming devices that had been previously installed by other members of the conspiracy.  TEUTOC and CALIN used magnets to activate the card skimmers and send the card information electronically to TEUTOC and CALIN’s cell phones.  After gaining possession of the Walmart customer’s credit, debit, and EBT card information, TEUTOC and CALIN sent the information to another co-conspirator with the intent to allow members of the conspiracy to make fraudulent charges with the stolen card information.

    If convicted of the conspiracy to commit bank and wire fraud, TEUTOC and CALIN face up to 30 years imprisonment, up to a $1,000,000 fine, and up to 5 years of supervised release.  If convicted of the conspiracy to commit access device fraud, TEUTOC and CALIN face up to 5 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.  If convicted of possession of unauthorized access devices, TEUTOC and CALIN face up to 10 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release.  As to each count, TEUTOC and CALIN, individually, face payment of a mandatory $100 special assessment fee.

    Acting U.S. Attorney Simpson reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.

    Acting U.S. Attorney Simpson praised the work of Homeland Security Investigations, United States Secret Service, New Orleans Police Department, St. Bernard Sheriff’s Office, and St. John the Baptist Parish’s Sheriff’s Office, in investigating this matter. Assistant United States Attorneys Paul J. Hubbell of the General Crimes Unit, Nicholas Moses, Healthcare Fraud Coordinator, and André Jones, lead OCDETF Narcotics Task Force Attorney, are in charge of the prosecution.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

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  • MIL-OSI Security: Woodbury Man Pleads Guilty in Child Sextortion Scheme

    Source: Office of United States Attorneys

    ST. PAUL, Minn. – Timothy Lennard Gebhart, a Woodbury man, has pleaded guilty to the production and distribution of child sexual abuse material and for coercing minors to engage in sexually explicit conduct, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    According to court documents, on multiple occasions between approximately July 10, 2021, and March 11, 2022, Timothy Lennard Gebhart, 38, coerced a 16-year-old child, Minor A, and a 14-year-old, Minor B, to engage in sexually explicit conduct for the purpose of producing pornographic videos. After obtaining the images of minors engaged in sexually explicit conduct, Gebhart distributed the videos via computer and cellular phone. Gebhart then used the pornographic videos to extort money and other items of value from Minor A, threatening to damage the victim’s reputation by sending nude photos and videos to their family and friends.

    Gebhart pleaded guilty in U.S. District Court today before Judge Jerry W. Blackwell to two counts of child pornography production, one count of child pornography distribution, and one count of interstate communication with the intent to extort. A sentencing hearing will take place at a later date.  Gebhart faces a mandatory minimum 15-year sentence.

    “Sextortion—threatening to share explicit images of a victim unless they comply with a predator’s demands—is abhorrent,” said Acting U.S. Attorney Lisa D. Kirkpatrick. “All too often, our children become victims of these monstrous schemes.  My office will continue to prosecute these cases to the fullest extent of the law.”

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

    This case is the result of an investigation conducted by the Woodbury Police Department, Greene County (Indiana) Sheriff’s Department, the Indiana State Police, and the FBI, with assistance from the Owatonna Police Department.

    Assistant U.S. Attorney David M. Classen is prosecuting the case.

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  • MIL-OSI Security: Fort Eisenhower woman pleads guilty to murder in child’s death

    Source: Office of United States Attorneys

    AUGUSTA, GA:  A U.S. Army spouse at Fort Eisenhower awaits sentencing after pleading guilty to the stabbing murder of her infant son.

    April Evalyn Short, 31, of Fort Eisenhower, pled guilty to Murder in the Second Degree, said Tara M. Lyons, Acting U.S. Attorney for the Southern District of Georgia. The negotiated plea agreement subjects Short to a sentence of 20 years in prison, along with substantial financial penalties and five years of supervised release following her prison term. There is no parole in the federal system.

    “The plea agreement in this disturbing case represents a difficult but appropriate resolution to this tragic and shocking homicide,” said Acting U.S. Attorney Lyons.

    As described in the plea agreement, on Nov. 15, 2023, at Fort Eisenhower, Short killed her 11-month-old son “willfully, deliberately, maliciously, and with malice aforethought,” using a knife.

    Short remains in custody of the U.S. Marshals Service, and U.S. District Court Judge J. Randal Hall will schedule sentencing upon completion of a presentence investigation by U.S. Probation Services.

    “This plea is a testament to the outstanding investigative efforts of our Army CID personnel, particularly the child forensic interview team, as well as the dedication of the DOJ prosecution and Victim Advocacy teams, and is indicative of our commitment to ensure justice for victims of heinous crimes such as this,” said Steven Ausfeldt, Special Agent in Charge of the Department of the Army Criminal Investigation Division Southeast Field Office. “Army CID will continue to work closely with our law enforcement and prosecutorial partners to pursue those who would harm the most innocent members of our communities, and to hold them fully accountable for their actions.”

    “April Short will now have 20 years to think about her heinous actions,” said Paul Brown, Special Agent in Charge of FBI Atlanta. “This plea cannot undo that tragedy and loss, but brings another measure of justice to those who knew and loved the child during his short life.”

    The case is being investigated by Department of the Army Criminal Investigation Division with assistance from the FBI, and prosecuted for the United States by Assistant U.S. Attorneys Henry W. Syms Jr. and Patricia G. Rhodes.

    For any questions, please call the U.S. Attorney’s Office at (912) 652-4422. 

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  • MIL-OSI Security: Woodbury Felon Sentenced to 15 Years in Prison for Illegal Possession of a Machinegun and Armed Robbery

    Source: Office of United States Attorneys

    ST. PAUL, Minn. – Alfonso Lee Seals, a Woodbury man, has been sentenced to 182 months in prison followed by three years of supervised release for possessing a firearm as a felon and interfering with commerce by robbery, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    According to court documents, on June 14, 2023, Minneapolis police responded to a 911 call reporting a shootout between two cars along University Avenue Northeast. Responding officers found an abandoned car crashed into a utility pole. On the floorboard of the driver’s seat, law enforcement discovered a Glock model 27 .40 caliber pistol with a “switch” or “auto-sear” attached to it, making it fully automatic. Forensic testing confirmed that that the defendant, Alfonso Lee Seals, 28, possessed the pistol. On November 7, 2023, law enforcement executed a search warrant at the defendant’s brother’s home where they recovered a Taurus model G2S 9-millimeter semi-automatic pistol, which had been reported stolen from Mounds View, Minnesota, in October 2022.  Forensic testing confirmed that the defendant possessed that pistol as well. On October 17, 2023, the defendant and an accomplice robbed a convenience store at gunpoint in Oakdale, Minnesota. Security camera footage showed the defendant ordering the victim cashier to his knees, placing a semiautomatic firearm to the cashier’s back, forcing him to open a cash register, and repeatedly threatening to kill the cashier during the robbery.

    On December 23, 2024, Seals pleaded guilty to two counts of possession of a firearm as a felon and one count of interfering with commerce by robbery. In his plea agreement, Seals admitted that he knowingly and willingly possessed both firearms and that he possessed the Glock in connection with two other felonies—felony drive-by shooting and intentionally discharging a firearm under circumstances that endanger the safety of another. He also admitted that he and his accomplice robbed the convenience store at gunpoint and threatened to kill the victim cashier. Because Seals has multiple prior felony convictions for assault in both Hennepin and Dakota Counties, he is prohibited under federal law from possessing firearms or ammunition at any time.

    “Minnesotans should have no tolerance for armed and violent career criminals,” said Acting U.S. Attorney Lisa D. Kirkpatrick. “This behavior is shocking and unacceptable.  My office will continue to hold Seals—and others who would terrorize our community—accountable.”  

    Seals was sentenced today in U.S. District Court by Judge Donovan W. Frank.

    This case is the result of an investigation by the Minneapolis Police Department, the Oakdale Police Department, the Dakota County Drug Task Force, the Minnesota Bureau of Criminal Apprehension, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  

    Assistant U.S. Attorney Campbell Warner prosecuted the case.
     

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  • MIL-OSI Security: Armed robber sentenced to over 12 years in prison

    Source: Office of United States Attorneys

    RICHMOND, Va. – A Chesterfield man was sentenced today to 12 years and three months in prison for armed robbery.

    According to court documents, on April 22, 2023, two victims were robbed at gunpoint on Dunston Avenue in Richmond. The victims described the incident and the robber to police, who then located surveillance cameras that captured a suspect vehicle. Police identified the vehicle as a four-door Acura with a moon roof and distinctive stickers on the two rear passenger windows. They also identified the license plate and determined that the Acura was registered to the girlfriend of Kumkio Leftha Martin, 31.

    The next day, Martin entered a convenience store in Chesterfield, pointed a gun at the victims inside, and demanded money and cigarettes. He took the victims’ iPhones as well as a bag containing a laptop, payroll checks, credit cards, cash, and car keys. Footage from a nearby camera showed a sedan resembling the Acura.

    On May 4, 2023, Martin entered a tobacco store in Richmond and, while brandishing a firearm, demanded money and vaping products from a store employee. Martin’s girlfriend was also in the store. About two minutes after Martin fled, the Acura with the distinctive stickers on the passenger side rear windows drove past the store.

    Police located Martin and the vehicle and performed a felony traffic stop. Law enforcement later performed a search of Martin’s girlfriend’s residence and located the firearm the defendant used in the May 4, 2023, robbery.

    On Nov. 12, 2024, Martin pled guilty to armed robbery and brandishing a firearm during a crime of violence related to the May 4, 2023, robbery. As a part of his plea, the defendant also admitted to committing the April 23, 2023, robbery.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.

    Assistant U.S. Attorneys Stephen E. Anthony and Vetan Kapoor prosecuted the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-150.

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  • MIL-OSI Security: Security News: Evolutions Flooring Inc. and Its Owners to Pay $8.1 Million to Settle False Claims Act Allegations Relating to Evaded Customs Duties

    Source: United States Department of Justice 2

    Evolutions Flooring Inc. (Evolutions), a South San Francisco, California-based importer of multilayered wood flooring, and its owners, Mengya Lin and Jin Qian, have agreed to resolve allegations that they violated the False Claims Act by knowingly and improperly evading customs duties on imports of multilayered wood flooring from the People’s Republic of China (PRC). The settlement is based on Evolutions’ and its owners’ ability to pay.

    “Import duties provide an important source of government revenue and level the playing field for U.S. manufacturers against their global competitors,” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. “The department will pursue those who seek an unfair advantage in U.S. markets, including by evading the duties owed on goods imported into this country from China.” 

    To enter goods into the United States, an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are subject to duties, and the amount of duties owed. U.S. Customs and Border Protection (CBP) collects applicable duties, including antidumping and countervailing duties assessed by the Department of Commerce and Section 301 duties imposed by the Office of the United States Trade Representative. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. Section 301 duties similarly protect U.S. industry by imposing trade sanctions on foreign countries that violate U.S. trade agreements or engage in other unreasonable acts that burden U.S. commerce. During the relevant time period, PRC-manufactured multilayered wood flooring products were subject to antidumping, countervailing, and Section 301 duties.

    The settlement resolves allegations that Evolutions, at the direction of Lin and Qian, knowingly and improperly evaded customs duties, including antidumping, countervailing, and Section 301 duties, on multilayered wood flooring manufactured in the PRC that Evolutions imported between Sept. 1, 2019 and July 31, 2022. Among other things, the United States alleged that Evolutions caused false information to be submitted to CBP regarding the identity of the manufacturers and country of origin of the imported multilayered wood flooring.

    “The outcome of this case demonstrates that the United States Attorney’s Office for the Central District of California and its CBP partners will continue to safeguard the nation’s economic well-being,” said Acting U.S. Attorney Joseph McNally for the Central District of California. “Fraud in international commerce deprives the United States of vital revenue and creates an unfair advantage over businesses that operate legitimately. The settlement sends a message that we will not stand aside when companies try to cheat the system.”

    “The team at CBP was instrumental in providing expertise and logistical support to this investigation,” said Director of Field Operations Cheryl M. Davies of the CBP Los Angeles Field Office. “Through its efforts, which included a site visit to factories in Thailand, review of identified shipments by CBP experts on multilayered wood flooring, an analysis of import records and data by Office of Trade Regulatory Audit, and involvement in interviews with witnesses, CBP contributed to a successful outcome in this matter.”

    The settlement with Evolutions and its owners resolves a lawsuit filed by Urban Global LLC under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Central District of California and is captioned United States ex rel. Urban Global LLC v. Struxtur Inc. et al., No. CV20-7217 (C.D. Cal.). As part of today’s resolution, relator Urban Global LLC will receive approximately $1,215,000 of the settlement proceeds.

    The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from CBP’s Office of Chief Counsel, West Region and Trade Regulatory Audit and the Center of Excellence and Expertise for Industrial and Manufacturing Materials within CBP’s Office of Trade.

    Senior Trial Counsel Christelle Klovers of the Justice Department’s Civil Division and Assistant U.S. Attorney Desmond Jui for the Central District of California handled the case. 

    The claims resolved by the settlement are allegations only; there has been no determination of liability.

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  • MIL-OSI Security: Justice Department Announces Anticipated Distribution of at Least $2B to Victims of State Sponsored Terrorism in 2026

    Source: United States Attorneys General 11

    Today, Special Master Mary Patrice Brown announced that she will authorize sixth-round payments for all eligible claims in the United States Victims of State Sponsored Terrorism Fund (the Fund) by Jan. 1, 2026. The Fund, which continues to collect deposits, anticipates that the sixth distribution will be at least $2 billion. The amounts available for this distribution come from qualifying federal enforcement actions and the termination of the Beirut barracks / Khobar Tower reserve fund.

    “It is a privilege for the Criminal Division to administer the United States Victims of State Sponsored Terrorism Fund, which has provided more than $7 billion to victims of state sponsored terrorism since its founding,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Today’s announcement of a distribution of at least $2 billion to victims in 2026 is the largest general distribution in the Fund’s history and will make a significant difference in victims’ lives. Victims are at the heart of everything we do at the Criminal Division, and we are proud to support them through our administration of the Fund.”

    The Fund was established by Congress and is administered by the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), under the leadership of the Fund’s Special Master. To date, the Fund has paid more than $7 billion to thousands of victims of state sponsored terrorism and their families in five rounds of distributions and two rounds of lump-sum catch-up payments. The anticipated distribution announced today is in addition to these prior distributions. Apart from an initial appropriation of approximately $1 billion from Congress and additional congressional appropriations for lump-sum catch-up payments, funds available for distribution come from certain Justice Department prosecutions and cases and other United States government enforcement actions.

    The Fund continues to accept applications from potential new claimants. As the Special Master announced, the deadline for new claimants to submit applications to be considered for sixth-round payments is June 1. Claimants who were eligible for payments in prior rounds remain eligible for the sixth distribution and should not complete new applications.

    More information about the Fund’s compensation to victims of state sponsored terrorism is available on the Fund’s website at www.usvsst.com, including application materials, frequently asked questions, and publications.

    MIL Security OSI –

  • MIL-OSI Security: Evolutions Flooring Inc. and Its Owners to Pay $8.1 Million to Settle False Claims Act Allegations Relating to Evaded Customs Duties

    Source: United States Attorneys General

    Evolutions Flooring Inc. (Evolutions), a South San Francisco, California-based importer of multilayered wood flooring, and its owners, Mengya Lin and Jin Qian, have agreed to resolve allegations that they violated the False Claims Act by knowingly and improperly evading customs duties on imports of multilayered wood flooring from the People’s Republic of China (PRC). The settlement is based on Evolutions’ and its owners’ ability to pay.

    “Import duties provide an important source of government revenue and level the playing field for U.S. manufacturers against their global competitors,” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. “The department will pursue those who seek an unfair advantage in U.S. markets, including by evading the duties owed on goods imported into this country from China.” 

    To enter goods into the United States, an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are subject to duties, and the amount of duties owed. U.S. Customs and Border Protection (CBP) collects applicable duties, including antidumping and countervailing duties assessed by the Department of Commerce and Section 301 duties imposed by the Office of the United States Trade Representative. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. Section 301 duties similarly protect U.S. industry by imposing trade sanctions on foreign countries that violate U.S. trade agreements or engage in other unreasonable acts that burden U.S. commerce. During the relevant time period, PRC-manufactured multilayered wood flooring products were subject to antidumping, countervailing, and Section 301 duties.

    The settlement resolves allegations that Evolutions, at the direction of Lin and Qian, knowingly and improperly evaded customs duties, including antidumping, countervailing, and Section 301 duties, on multilayered wood flooring manufactured in the PRC that Evolutions imported between Sept. 1, 2019 and July 31, 2022. Among other things, the United States alleged that Evolutions caused false information to be submitted to CBP regarding the identity of the manufacturers and country of origin of the imported multilayered wood flooring.

    “The outcome of this case demonstrates that the United States Attorney’s Office for the Central District of California and its CBP partners will continue to safeguard the nation’s economic well-being,” said Acting U.S. Attorney Joseph McNally for the Central District of California. “Fraud in international commerce deprives the United States of vital revenue and creates an unfair advantage over businesses that operate legitimately. The settlement sends a message that we will not stand aside when companies try to cheat the system.”

    “The team at CBP was instrumental in providing expertise and logistical support to this investigation,” said Director of Field Operations Cheryl M. Davies of the CBP Los Angeles Field Office. “Through its efforts, which included a site visit to factories in Thailand, review of identified shipments by CBP experts on multilayered wood flooring, an analysis of import records and data by Office of Trade Regulatory Audit, and involvement in interviews with witnesses, CBP contributed to a successful outcome in this matter.”

    The settlement with Evolutions and its owners resolves a lawsuit filed by Urban Global LLC under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in the Central District of California and is captioned United States ex rel. Urban Global LLC v. Struxtur Inc. et al., No. CV20-7217 (C.D. Cal.). As part of today’s resolution, relator Urban Global LLC will receive approximately $1,215,000 of the settlement proceeds.

    The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from CBP’s Office of Chief Counsel, West Region and Trade Regulatory Audit and the Center of Excellence and Expertise for Industrial and Manufacturing Materials within CBP’s Office of Trade.

    Senior Trial Counsel Christelle Klovers of the Justice Department’s Civil Division and Assistant U.S. Attorney Desmond Jui for the Central District of California handled the case. 

    The claims resolved by the settlement are allegations only; there has been no determination of liability.

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  • MIL-OSI Security: Richland County Man Sentenced for Drug Smuggling Conspiracy

    Source: Office of United States Attorneys

    COLUMBIA, S.C. — Jocobia Dozier-Eaddy, 37, of Columbia, has been sentenced to more than three years in federal prison for conspiracy to possess with the intent to distribute cocaine, crack cocaine, fentanyl, and marijuana.

    Evidence obtained in the investigation revealed that Dozier-Eaddy and others were responsible for shipping and selling cocaine and counterfeit oxycodone pills made with fentanyl and shipped through the U.S. Postal Service from Arizona into South Carolina. During this investigation agents seized marijuana, cocaine, crack cocaine, and counterfeit oxycodone pills. Agents were able to identify Dozier-Eaddy following his sale of counterfeit pills to an undercover agent. During the sale, Dozier-Eaddy sold the undercover agent 200 counterfeit pills laced with fentanyl.

    Following his identification, the agents learned that Dozier-Eaddy called the USPS to inquired about a package that had been seized by them. The package contained two individually wrapped packages containing over 900 grams of cocaine and 5 grams of crack cocaine. The package was supposed to be delivered that day. Dozier-Eaddy confirmed the package seized was the correct package and gave the correct tracking number, his cellular telephone number, and the correct address for delivery. During the time of this conspiracy, Dozier-Eaddy also wired money to the supplier of the drugs in Arizona who was arrested by Homeland Security Investigations in a separate investigation in Arizona.

    United States District Mary Geiger Lewis sentenced Dozier-Eaddy to 46 months imprisonment, to be followed by a two-year term of court-ordered supervision.  There is no parole in the federal system.

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

    This case was investigated by Drug Enforcement Administration, U.S. Postal Inspection Service, and Homeland Security Investigations. Assistant U.S. Attorney William K. Witherspoon is prosecuting the case.

    ###

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  • MIL-OSI Security: Clairton Resident Pleads Guilty to Wire Fraud Charges

    Source: Office of United States Attorneys

    PITTSBURGH, Pa – A resident of Clairton, Pennsylvania, pleaded guilty in federal court to charges of wire fraud, Acting United States Attorney Troy Rivetti announced today.

    Tracey Smith, age 56, pleaded guilty to four counts before United States District Judge Cathy Bissoon.

    In connection with the guilty plea, the court was advised that in 2023, Smith was hired as a comptroller at a Pittsburgh engineering firm where she embezzled company funds for her personal use by issuing herself additional payroll checks to herself, making unauthorized credit card transactions with company credit cards, and by falsifying expense reports, all totaling approximately $673,556.80 in embezzled funds.

    Judge Bissoon scheduled sentencing for July 17, 2025. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both as to each count. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

    Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.

    The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Smith.

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  • MIL-OSI Security: Starkville Man Sentenced to Three Years for Possession and Sale of Illegal Glock Device

    Source: Office of United States Attorneys

    Oxford, MS – A Starkville man was sentenced today to three years in prison for possession and transfer of a “Glock switch,” which is a device that converts a semi-automatic handgun to fully automatic.

    According to court documents, Kylen Ingram, also known as “KTM Prime,” 22, previously pled guilty to possession and transfer of a “Glock switch” which constitutes a machinegun under federal law. U.S. District Judge Sharion Aycock sentenced Ingram today to 36 months in prison followed by three years of supervised release. Ingram was remanded to the custody of the U.S. Marshals following sentencing.

    U.S. Attorney Clay Joyner of the Northern District of Mississippi; Bureau of Alcohol, Tobacco, Firearms, and Explosives New Orleans Special Agent in Charge Joshua Jackson; and FBI Jackson Field Office Special Agent in Charge Robert Eikhoff made the announcement.

    This case was investigated by the FBI, the Starkville Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

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

    MIL Security OSI –

  • MIL-OSI Security: A Resident of Both Pittsburgh and Chicago Pleads Guilty to Possessing Child Sexual Abuse Material

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A resident of both Pittsburgh, Pennsylvania and Chicago, Illinois, pleaded guilty in federal court to a charge of violating federal law regarding the sexual exploitation of children, Acting United States Attorney Troy Rivetti announced today.

    Ashok Panigrahy, age 53, pleaded guilty to one count before United States District Judge Christy Criswell Wiegand.

    In connection with the guilty plea, the court was advised that from on or about November 21 through November 22, 2022, in the Western District of Pennsylvania, Panigrahy knowingly possessed images and videos depicting the sexual exploitation of a minor.

    Judge Wiegand scheduled sentencing for July 17, 2025, at 1:00 p.m. The law provides for a total sentence of not more than 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

    Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.

    The Homeland Security Investigations (Pittsburgh and Chicago) conducted the investigation that led to the prosecution of Panigrahy.

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

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  • MIL-OSI Security: Brazilian Citizen Charged with Illegal Re-entry into U.S.

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A citizen of Brazil has been indicted by a federal grand jury in Pittsburgh on a charge of illegal re-entry of a removed alien, Acting United States Attorney Troy Rivetti announced today.

    The one-count Indictment named Paulo Henrique Fernandes Evaristo, 25, as the sole defendant.

    According to the Indictment, on March 5, 2025, Fernandes Evaristo was found in western Pennsylvania after having been removed from the United States on or about October 7, 2021.

    The law provides for a maximum total sentence of up to two years in prison, a fine of up to $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

    Assistant United States Attorney Justin E. Lewis is prosecuting this case on behalf of the United States.

    U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations conducted the investigation leading to the Indictment in this case.

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

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  • MIL-OSI Security: San Francisco Man Charged With Production Of Child Sexual Abuse Materials

    Source: Office of United States Attorneys

    SAN FRANCISCO – A federal grand jury has indicted Ricci Lee Wynne on charges of producing child sexual abuse materials.  Wynne made his initial appearance in federal court this morning.

    According to the indictment filed March 18, 2025, Wynne, 39, of San Francisco, allegedly employed, used, persuaded, induced, enticed, and coerced minor victims to engage in sexually explicit conduct for the purpose of producing videos and/or images of the conduct on or about April 9, 2022, and Oct. 29, 2022.

    Wynne has been in federal custody since December 2024 following a report of a supervised release violation in another case.   He is next scheduled to appear in district court on March 26, 2025, for a status conference before Senior U.S. District Judge Charles R. Breyer.

    Acting United States Attorney Patrick D. Robbins and FBI Special Agent in Charge Sanjay Virmani made the announcement.  

    Wynne is charged with two counts of production of child pornography under 18 U.S.C. § 2251(a).  An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, the defendant faces a minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison and a fine of $250,000 for each violation of 18 U.S.C. § 2251(a).  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.  

    Assistant U.S. Attorneys E. Wistar Wilson and Eric Cheng are prosecuting the case with the assistance of Soana Katoa and Marina Ponomarchuk.  The prosecution is the result of an investigation by the FBI.  The U.S. Attorney’s Office and the FBI appreciate the assistance of the San Francisco Police Department and HSI.  Anyone with information relevant to this case can report it by contacting the FBI at (415) 553-7400 or tips.fbi.gov.

    Ricci Lee Wynne Indictment
     

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  • MIL-OSI Security: Defendant Who Failed to Surrender for Service of Prison Sentence Gets More Prison Time

    Source: Office of United States Attorneys

    DETROIT – Tamara Smith, 39, of Detroit, was sentenced to 18 months in prison for failing to surrender to the United States Marshal in Detroit for service of a prison sentence as ordered by the Court, announced Acting United States Attorney, Julie A. Beck.

    Beck was joined in the announcement by Megan Howell, Acting Special Agent-in-Charge of the Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

    On June 26, 2024, U.S. District Judge Jonathan J.C. Grey sentenced Smith to imprisonment for 60 months for her convictions for wire fraud and aggravated identity theft. At that time, Smith was out on bond. Rather than being taken immediately into custody to commence service of her 60-month sentence, Smith asked for more time on bond, assuring the Court she would voluntarily surrender for service of her sentence when ordered by the Court. The Court agreed to her request, ordering her to voluntarily surrender to the United States Marshal in Detroit on July 1, 2024. Smith acknowledged her obligation in court at the time of the sentencing hearing.

    Despite being aware of her representation to the Court that she would voluntarily turn herself in, Smith deliberately failed to self-surrender to the U.S. Marshal as ordered. On July 2, 2024, the Court issued an arrest warrant for Smith for failing to surrender. Smith failed to surrender as ordered, and the U.S. Marshal’s Service arrested her on July 18, 2024.

    Judge Grey’s 18-month sentence for failing to surrender as ordered will run consecutive to Smith’s underlying 60-month sentence for fraud and identity theft.

    “This case should send a message to anyone who deliberately chooses to violate a court order in a criminal case that you will be punished.  Orders of courts must be respected and followed. This defendant violated the trust of the court and abused the criminal justice system – she needed to be held accountable,” said Acting United States Attorney Beck.

    “Tamara Smith has been convicted multiple times of defrauding unemployment insurance (UI) programs that are intended to support unemployed American workers. Following her recent conviction and sentencing related to UI fraud charges, she failed to surrender as mandated and made efforts to avoid apprehension. This sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to hold accountable those who attempt to circumvent the justice system,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

    The investigation of this case was conducted by the U.S. Department of Labor, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Patrick Corbett.

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  • MIL-OSI Security: Shiprock Man Charged with Assault After Shots Fired at Pedestrian

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Shiprock man has been charged with assault with a dangerous weapon after he allegedly fired multiple shots at an unsuspecting pedestrian.

    According to court records, on March 13, 2025, the Navajo Nation Police responded to a shots-fired report. Isaiah Benally, 33, an enrolled member of the Navajo Nation, allegedly fired multiple shots at a passerby who escaped unharmed despite bullets striking nearby. Benally was taken into custody by the Navajo Nation SWAT team after a brief standoff. Inside his residence, officers found body armor and firearm accessories. Benally has a history of arrests for aggravated battery and assault.

    Benally will remain in custody pending trial, which has not been set. If convicted of the current charges, Benally faces up to 10 years in prison.

    Acting U.S. Attorney Holland S. Kastrin and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Brittany DuChaussee is prosecuting the case.

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

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  • MIL-OSI Security: Defense Contractor MORSECORP, Inc. Agrees to Pay $4.6 Million to Settle Cybersecurity Fraud Allegations

    Source: Office of United States Attorneys

    BOSTON – MORSECORP, Inc. (MORSE), of Cambridge, Mass., has agreed to pay $4.6 million to resolve allegations that MORSE violated the False Claims Act by failing to comply with cybersecurity requirements in its contracts with the Departments of the Army and Air Force.  

    The settlement resolves allegations that MORSE submitted false or fraudulent claims for payment on contracts with the Departments of the Army and Air Force, and that those claims were false or fraudulent because Morse knew it had not complied with those contracts’ cybersecurity requirements. As part of the settlement, MORSE admitted, acknowledged and accepted responsibility for the following facts:

    • From January 2018 to September 2022, MORSE used a third-party company to host MORSE’s emails without requiring and ensuring that the third party met security requirements equivalent to the Federal Risk and Authorization Management Program Moderate baseline and complied with the Department of Defense’s requirements for cyber incident reporting, malicious software, media preservation and protection, access to additional information and equipment necessary for forensic analysis and cyber incident damage assessment;
    • The contracts required that MORSE implement all cybersecurity controls in National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171, but from January 2018 to February 2023, MORSE had not fully implemented all those controls, including controls that, if not implemented, could lead to significant exploitation of the network or exfiltration of controlled defense information and controls that could have a specific and confined effect on the security of the network and its data;
    • From January 2018 to January 2021, despite the contracts’ system security plan requirement, MORSE did not have a consolidated written plan for each of its covered information systems describing system boundaries, system environments of operation, how security requirements are implemented and the relationships with or connections to other systems;
    • In January 2021, MORSE submitted to the Department of Defense a score of 104 for its implementation of the NIST SP 800-171 security controls. That score was near the top of the possible score range from -203 to 110. In July 2022, a third-party cybersecurity consultant notified MORSE that its score was actually -142. MORSE did not update its score in the Department of Defense reporting system until June 2023—three months after the United States served MORSE with a subpoena concerning its cybersecurity practices.

    “Federal contractors must fulfill their obligations to protect sensitive government information from cyber threats,” said United States Attorney Leah B. Foley. “We will continue to hold contractors to their commitments to follow cybersecurity standards to ensure that federal agencies and taxpayers get what they paid for, and make sure that contractors who follow the rules are not at a competitive disadvantage.”  

    “We are pleased with today’s settlement, which further demonstrates the resolve of the Department of the Army Criminal Investigation Division and our law enforcement partners to protect and defend the assets of the United States Army and Department of Defense,” said Special Agent in Charge Keith K. Kelly, Department of the Army Criminal Investigation Division Fraud Field Office. “We’re committed to protecting the warfighter and maintaining the Army’s operational readiness while holding those who engage in such acts accountable.”

    “Failure to implement cybersecurity requirements can have devastating consequences, leaving sensitive DoD data vulnerable to cyber threats and malicious actors,” said Special Agent in Charge William W. Richards of the Air Force Office of Special Investigations (AFOSI). “AFOSI, alongside our investigative partners and the Department of Justice, will continue to combat fraud affecting the Department of the Air Force and hold those accountable that fail to properly safeguard sensitive defense information.”

    “Protecting the integrity of Department of Defense (DoD) procurement activities is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Failing to comply with DoD contract specifications and cybersecurity requirements puts DoD information and programs at risk. We will continue to work with our law enforcement partners and the Department of Justice to investigate allegations of false claims on DoD contracts.”

    The settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery. The settlement in this case provides for the whistleblower to receive an $851,000 share of the settlement amount. The qui tam case is captioned United States ex rel. Berich v. MORSECORP, Inc., et al., No. 23-cv-10130 (D. Mass.).  

    The settlement announced today was the result of a coordinated effort between the U.S. Attorney’s Office for the District of Massachusetts, the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from the Department of the Army Criminal Investigation Division’s Fraud Field Office, the Air Force Office of Special Investigations, DCIS and the General Services Administration Office of Inspector General. The matter was handled by Brian LaMacchia, Chief of the Affirmative Civil Enforcement Unit, Assistant U.S. Attorney Julien Mundele in the U.S. Attorney’s Office and DOJ Senior Trial Counsel Christopher Terranova. 

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  • MIL-OSI Security: Hardy County Man Admits to Federal Firearms Violation

    Source: Office of United States Attorneys

    ELKINS, WEST VIRGINIA – Justin Ray Guessford, age 40, of Fisher, West Virginia, has admitted to the unlawful possession of a firearm. 

    According to court documents, Guessford, also known as “Justin Ray Gilbert,” was found with a .22 caliber rifle in Hardy County. Guessford is prohibited from having firearms because of prior malicious wounding and child neglect convictions.

    Guessford is facing up to 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.

    U.S. Magistrate Judge Michael John Aloi presided.

    MIL Security OSI –

  • MIL-OSI Security: Fourteen Charged in Federal Indictment Following Takedown of Violent Indianapolis Drug Trafficking Ring

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    INDIANAPOLIS— 14 individuals have been charged in a federal indictment alleging a conspiracy to distribute methamphetamine, heroin, fentanyl, and cocaine in Indianapolis, Lafayette, and surrounding communities. The charges follow a successful law enforcement operation in which 13 total individuals have been arrested and are in federal custody. Eight individuals were arrested on March 21, 2025. The following lists the individuals indicted and the charges they face:

    Defendant Charge(s)
    Tanesha M. Turner, 39
    • Conspiracy to distribute controlled substances
    • Kidnapping
    • Carrying and brandishing a firearm during and in relation to a drug trafficking crime
    • Accessory to a crime after the fact
    • Possession of a firearm by a convicted felon
    Charles T. Dunson, 44
    • Conspiracy to distribute controlled substances
    • Carrying and brandishing a firearm during and in relation to a drug trafficking crime.
    • Distribution of methamphetamine
    • Possession of a machinegun
    • Possession of a firearm by a convicted felon
    Tre J. Dunn, 27
    • Conspiracy to distribute controlled substances
    • Carrying and brandishing a firearm during and in relation to a drug trafficking crime.
    • Causing Death by Using a Firearm During and in Relation to a Drug Trafficking Crime
    • Possessing, Brandishing, and Discharging a Firearm During and in Relation to a Drug Trafficking Crime
    Nahamani I. Sargent, 34
    • Conspiracy to distribute controlled substances
    • Retaliating against a witness
    • Use of fire or explosives
    • Possession of a firearm by a convicted felon
    Byron A. Mason, 38
    • Conspiracy to distribute controlled substances
    • Unlawful use of a cell phone
    Adrian J. Bullock, 34
    • Conspiracy to distribute controlled substances
    • Possession of a firearm by a convicted felon
    Avery J. Bullock, 27
    • Conspiracy to distribute controlled substances
    • Possession of methamphetamine with intent to distribute
    John M. Whitfield, 37
    • Conspiracy to distribute controlled substances
    • Possession of a firearm by a convicted felon
    Aaliyah Hackett, 23
    • Conspiracy to distribute controlled substances
    • Unlawful use of a cell phone
    Emorrie J. Dunn, 26
    • Conspiracy to distribute controlled substances
    Chancelor R. Walker, 38
    • Conspiracy to distribute controlled substances
    D’Ericka Lee, 30
    • Conspiracy to distribute controlled substances
    Lamar T. Browning, 39
    • Conspiracy to distribute controlled substances
    Mark C. Marshall, 57
    • Conspiracy to distribute controlled substances

    This was a multi-agency operation, involving ten agencies who assisted with the investigation and the arrests on the morning of March 21, 2025. Law enforcement has asked the public for assistance in locating fugitive Lamar T. Browning. He should be considered armed and dangerous. Those with information are asked to call 1-800-CALL-FBI.

    According to the indictment, all 14 defendants allegedly operated a drug trafficking conspiracy, selling meth, fentanyl, cocaine and heroin out of several trap houses in Indianapolis.

    Some members of the conspiracy allegedly committed multiple acts of violence, including murder, firing gunshots, throwing Molotov cocktails at a home, kidnapping, and pistol-whipping in order to intimidate drug customers and rival drug dealers The violence was used as a tool to collect money owed to them by their drug customers, to protect the locations that they used to distribute drugs, and to retaliate against potential witnesses.

    Specifically, Nahamani Sargent allegedly fired gunshots and threw Molotov cocktails at the home of a customer, believing that the victim had provided information about the conspiracy to law enforcement.

    Additionally, Tanesha Turner allegedly kidnapped a victim at gunpoint and held them for ransom because they owed $40. Tre Dunn then allegedly shot the same victim for owing money and providing information to law enforcement.

    Tre Dunn also allegedly aided and abetted the murder of a man because he disrespected him and his associate during a failed drug deal. Tanesha Turner then allegedly aided Dunn by driving him to another location following the murder to prevent his arrest.

    If convicted, each defendant faces up to life in federal prison.

    The following investigative agencies collaborated to make this investigation and recent warrant execution possible:

    • Federal Bureau of Investigation (Indianapolis, Chicago, and Cincinnati SWAT)
    • Indianapolis Metropolitan Police Department, SWAT
    • Fishers Police Department, SWAT
    • Drug Enforcement Administration
    • United States Department of Agriculture
    • Indiana Capitol Police Department
    • Indiana Department of Homeland Security
    • Johnson County Sheriff’s Department

    Acting U.S. Attorney Childress thanked Assistant U.S. Attorneys Bradley A. Blackington and Kelsey Massa, who are prosecuting this case.

    This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). This operation is part of the Indiana High Intensity Drug Trafficking Areas (HIDTA) program.

    An indictment or criminal complaint are merely allegations, 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: Camden County Company Settles Matter Alleging Receipt Of Improper Cares Act Loans

    Source: Office of United States Attorneys

    Newark, N.J. – A furniture rental company based in Pennsauken, New Jersey entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking a Paycheck Protection Program (PPP) loan to which it was not entitled, United States Attorney John Giordano announced today.

    According to the allegations in the complaint and the contentions of the United States in the settlement agreement:

    In January 2021, American Furniture Rentals, Inc. (AFR) applied for and received a $2 million PPP loan.  Under the eligibility rules in effect at that time, a company was required to have 300 employees or less to qualify for a PPP loan. Despite the fact that AFR had more than 300 employees at the time, AFR certified in its loan application that it was eligible to participate in the PPP program. After receiving the PPP loan, AFR sought and received forgiveness of the total amount of the loan, plus interest that had accrued.

    AFR fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement agreement, AFR will pay the United States $2,907,703. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.

    The government is represented by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit in Newark.

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

    The qui tam case is captioned United States ex rel. Verity Investigations, LLC v. American Furniture Rentals, Inc., 24-7540 (D.N.J.).

    25-086                                                             ###

    Counsel for American Furniture Rentals, Inc.: Brian K. Kidd, Esq., Washington, D.C.

    Counsel for Relator Verity Investigations, LLC: Steven Shepard, Esq., New York, NY

    MIL Security OSI –

  • MIL-OSI Security: Boston Man Sentenced to 28 Years in Prison for Sexually Exploiting Minors

    Source: Office of United States Attorneys

    BOSTON – A Boston man was sentenced yesterday in federal court in Worcester for child exploitation offenses.

    Jalen Latimer, 26, of Roxbury, was sentenced by U.S. District Court Judge Margaret R. Guzman to 28 years in prison, to be followed by 15 years of supervised release. The defendant was also ordered to pay restitution in an amount to be determined at a later date. In December 2024, Latimer pleaded guilty to one count of conspiracy to commit sex trafficking and two counts of sexual exploitation of a minor. Latimer is currently serving a state prison sentence on related offenses. The defendant was previously charged by criminal complaint with one count of sexual exploitation of a minor on Feb. 16, 2024.

    In July 2022, Latimer and another adult recorded themselves raping a ten year old. The minor victim’s five year old sibling was used to create the recording of the sexual assault. Over a year later, in July 2023, Latimer conspired with that same adult to arrange the sexual assault of another child. Latimer was asked to pay $50 for the child, however, Latimer offered $20 and marijuana.

    Latimer was arrested in January 2024. He was subsequently convicted by state authorities in Worcester Superior Court of three counts of aggravated rape of a child, four counts of aggravated indecent assault and battery on a child and human trafficking of a minor. On March 17, 2024, he was sentenced to 15 years in state prison which will run concurrent with the federal sentence.

    United States Attorney Leah B. Foley; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Worcester Police Chief Paul B. Saucier; and Oxford Police Chief Michael K. Daniels made the announcement. Valuable assistance was provided by Rhode Island State Police and Massachusetts State Police. Assistant U.S. Attorney Kristen M. Noto of the Worcester Branch Office prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as 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: Council Bluffs Couple Sentenced to Federal Prison for Methamphetamine Conspiracy

    Source: Office of United States Attorneys

    COUNCIL BLUFFS, Iowa – A Council Bluffs woman and man were sentenced on March 20, 2025 to federal prison for their roles in conspiracy to distribute methamphetamine.

    According to public court documents and evidence presented at sentencing, Heather Lee Vore, 34, and Nicholas Carl Thomas, 42, facilitated the distribution of methamphetamine in Council Bluffs, Omaha, and elsewhere. Vore sent money to a drug source of supply in Mexico, and recruited others, including Thomas, to communicate with the Mexican source of supply and send money to Mexico for meth.

    On January 16, 2025, Vore received a ten-year prison sentence, followed by a five-year term of supervised release. On March 20, 2025, Thomas received a twelve-year sentence, followed by a five-year term of supervised release. There is no parole in the federal system.

    United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Council Bluffs Police Department.

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