NewzIntel.com

Category: Security Intelligence

  • MIL-OSI Security: Defense News: Chief of Naval Operations Inducted into Rhode Island Italian American Hall of Fame

    Source: United States Navy

    Chief of Naval Operations Adm. Lisa Franchetti, a native of Rochester, N.Y., was presented with the 2024 Lifetime Achievement Award from the Rhode Island Italian-American Hall of Fame (RIIAHF), in Providence, R.I., Nov. 2.

    RIIAHF, a non-profit organization, honors individuals who have succeeded at the highest of levels in their respective fields, and awards scholarships annually to rising college freshmen.

    Franchetti was one of three Italian Americans honored this year.

    Her full remarks are below:

    “Well, good evening and Senator Reed, thank you very much for your kind introduction and Grazie Millie to Joe Rocco and the entire team here at the Rhode Island Italian-American Hall of Fame for this incredible recognition. I also want to recognize my fellow award recipients and also the scholarship recipients, I know our future is bright when I got to see all that you’ve accomplished and I know what you will do in the future. Thanks in part to the scholarships that you’ll be receiving here this evening. Senator Reed, Provost of the Naval War College Mariano, ladies and gentlemen, and our veterans in the audience. I just got to meet 102 year, old Army artilleryman who fought in the Pacific in WWII and a Vietnam War Army nurse.

    It’s really an incredible honor to be with you all here this evening to receive this lifetime Achievement Award. As you just heard and saw in the video, my great grandparents came to America in search of the American dream, life, liberty, and the pursuit of happiness, and new opportunities for their families. They arrived with the firm belief and the strongest of convictions that if you worked hard learned, all you could and always did things the right way that you and your family would find success in this new land. My Grandfather Rebello Franchetti, a seasoned Stone Cutter. He lived those values. As did my grandmother Chiarina Rhea the matriarch of our family. Together, they laid a strong foundation for my father, Lawrence Franchetti to be the very first person in my family, to go to college, to become an engineer and find his own success as a plant manager. Through the example that they set, they passed on to me, the values, the values that I have now passed on to my own college freshman, Isabel Marie Franchetti, Who studied Italian and learned about our Italian Heritage first-hand when we lived in Bella Napoli as part of our Navy Journey. There is no doubt that these values and the love and the support of my family laid the foundation for my success, as a naval officer, and as the 33rd Chief of Naval Operations. But there’s also no doubt that this award and really my every success is owed to our amazing team of Navy Sailors and civilians, people who come from all across the rich fabric of America. People with whom, I’ve had the opportunity to serve over my 39-year career. And as we sit here tonight, enjoying this wonderful evening. Many of those Sailors and Marines are deployed. They’re standing the watch very far from home. In fact, on any given day, roughly, 110, ships, and 70,000 Sailors and Marines are deployed operating all around the world, all around the clock, to preserve our nation’s security and prosperity, to deter our would-be adversaries, and to stand ready to fight and win decisively if called to do so. I could not be more proud of our Navy and Marine Corps team and I hope you’re proud of them too, so send them a big round of applause.

    And those Sailors Marines are also standing the watch alongside amazing allies and partners including the very capable Marina Militare. The Italian Navy, who I’ve had a chance to work with for many many years. And in case, you didn’t see it in the news, the Abraham Lincoln Carrier Strike Group recently conducted a series of operations with the Italian Carrier Strike Group, led by ITS Cavour in the Indo-Pacific, and I can say with confidence that the partnership between the United States Navy and the Italian Navy grows stronger every single day. So, I want to say thank you again to Rhode Island Italian-American Hall of Fame for this incredible honor tonight. I could not be more proud of my Italian American heritage or more grateful for my family’s values that have always helped pave my way. Thank you very much.

    MIL Security OSI –

  • MIL-OSI Security: Security News: Turkish National Arrested for Allegedly Conspiring to Violate Venezuela-Related Sanctions

    Source: United States Department of Justice 2

    Taskin Torlak, 37, of Turkey, was arrested in Miami, on Nov. 2 for allegedly conspiring to violate U.S. sanctions as part of a scheme to transport oil from Venezuela for the benefit of Petróleos de Venezuela, S.A. (PdVSA), Venezuela’s state-owned oil and natural gas company.

    “As alleged, the defendant conspired to evade U.S. sanctions imposed on PdVSA, deploying deception to smuggle black-market oil from Venezuela,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will continue to hold accountable those involved in criminal efforts to circumvent sanctions imposed on the Maduro regime.”

    “This defendant allegedly conspired to illegally sell Venezuelan oil, using deceit and trickery to hide the fact that this oil originated from Venezuela,” said U.S. Attorney Matthew Graves for the District of Columbia. “Venezuela’s state-owned oil company, PdVSA, was sanctioned by the U.S. government to prevent the current regime from further depleting the nation’s resources while it unlawfully remains in power.  We remain dedicated to prosecuting violations of these sanctions until the government of Venezuela takes the necessary steps for these sanctions to be lifted.”

    Torlak was arrested as he attempted to depart the United States to return to Turkey. He is charged by complaint with one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA). According to the complaint, Torlak conspired with others to cause U.S. financial institutions to process transactions connected to the transport of Venezuelan oil for the benefit of PdVSA, which the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated as a Specially Designated National (SDN) in January 2019.

    According to the complaint, beginning at least in or around November 2020, Torlak and others devised and implemented a complex scheme to violate and evade U.S. sanctions related to petroleum products from Venezuela and Iran. The scheme included obfuscating the identities of tankers moving the oil by re-naming and re-flagging vessels, covering vessel names with paint or blankets, and turning off the electronics that track vessels’ locations for the safety of ships and their crews. Torlak and his co-conspirators allegedly received tens of millions of dollars from PdVSA in payment for transporting Venezuelan oil, and hid the ultimate beneficiaries of the related transactions from U.S. financial institutions, who then unwittingly processed payments in furtherance of the scheme. The complaint further alleges that Torlak and his co-conspirators explicitly discussed the need to hide their conduct from the U.S. Government and its agencies, including OFAC, as well as commercial maritime entities.

    Homeland Security Investigations Washington D.C. is investigating the case.

    Assistant U.S. Attorney Maeghan Mikorski for the District of Columbia and Trial Attorneys Sean Heiden and Chantelle Dial of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of Florida.

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

    MIL Security OSI –

  • MIL-OSI Security: Whitehorse — RCMP investigate a vehicle entering open water on Lake Laberge

    Source: Royal Canadian Mounted Police

    Content warning this information may be distressing.

    Whitehorse RCMP received a report on January 25, 2025 at 1:06 am that a vehicle had submerged in Lake Laberge with occupants inside. Whitehorse RCMP, Whitehorse Fire Department, and Yukon Emergency Medical Services responded.

    A group of people using two separate vehicles were ice fishing on Lake Laberge. It was reported to police that one vehicle drove into open water with three occupants inside. The vehicle submerged and only two occupants were able to safely make it from the vehicle.

    Police continue to investigate this tragic event with the assistance of the Yukon Coroner’s Service.

    Whitehorse Detachment General Investigation Section recommends, if possible, to avoid Lake Laberge while investigators are on scene. This investigation will involve a complex and lengthy recovery operation that will likely span over several days and will involve assistance of the British Columbia RCMP Underwater Recovery Team.

    Our thoughts go out to the family, and those involved, at this most difficult time.

    MIL Security OSI –

  • MIL-OSI Security: Swift Current — Swift Current Municipal RCMP: males wanted after serious assaults

    Source: Royal Canadian Mounted Police

    On October 25, 2024, Swift Current Municipal RCMP responded to a report of a firearm discharged during an altercation on Herbert Street in Swift Current, SK. Officers responded and no injuries were reported to police. Swift Current RCMP continued to investigate.

    On October 29, 2024 at approximately 6:00 a.m., Swift Current Municipal RCMP responded to a report of a break and enter at a residence on 10 Avenue NW in Swift Current. Investigation determined multiple individuals entered the residence with a firearm and assaulted two occupants inside. The firearm was not discharged. The suspects stole an amount of cash as well as a vehicle. The vehicle was recovered shortly after; however, the suspects remain outstanding.

    Both of these incidents are not believed to be random. Swift Current Municipal RCMP have identified and charged two males in relation to both of these incidents and warrants for their arrest have been issued.

    35-year-old Nicholas Belanger from Medicine Hat, AB and 28-year-old Mathew Neufeld from Swift Current, SK are each charged with:

    • one count, break and enter, Section 348(1)(b), Criminal Code;
    • two counts, assault causing bodily harm, Section 267(b), Criminal Code;
    • one count, theft over $5000, Section 334(a), Criminal Code;
    • one count, theft under $5000, Section 334(b), Criminal Code; and
    • one count, disguised with intent to commit offence, Section 351(2), Criminal Code.

    Nicholas Belanger is additionally charged with:

    • one count, robbery with a firearm, Section 344(1)(a), Criminal Code;
    • one count, assault with a weapon, Section 267(a), Criminal Code;
    • one count, careless use of a firearm, Section 86(1), Criminal Code;
    • one count, pointing a firearm, Section 87(1), Criminal Code;
    • one count, possession of a weapon for a dangerous purpose, Section 88(1), Criminal Code;
    • one count, dangerously discharged a firearm, Section 244(1), Criminal Code; and
    • six counts, fail to comply with probation order, Section 733.1(1), Criminal Code.

    Investigators have reason to believe Nicholas Belanger and Mathew Neufeld may be in the Swift Current or Medicine Hat areas, but their current whereabouts are unknown. If you see Nicholas Belanger or Mathew Neufeld, do not approach them. Report any sighting of them or information to your nearest police by calling 310-RCMP. Information can also be submitted anonymously by contacting Saskatchewan Crime Stoppers at 1-800-222-TIPS (8477) or www.saskcrimestoppers.com.

    MIL Security OSI –

  • MIL-OSI Security: Battlefords — Battlefords RCMP seeks public assistance locating missing 12-year-old female

    Source: Royal Canadian Mounted Police

    On October 31, 2024, Battlefords RCMP received a report of a missing 12-year-old female, Tyra Fineday.

    Tyra was last seen on October 31 at approximately 7:15 p.m. near the intersection of 17th Avenue and 100th Street in North Battleford, SK.

    Tyra is described as approximately 5’6″ tall and 110 lbs. She has brown eyes and medium-length brown hair. She was last seen wearing a black hoodie, grey sweatpants, and black and white sneakers. She has a scar above her right eye.

    If you have seen Tyra or know where she is, contact Battlefords RCMP at 310-RCMP. Information can also be submitted anonymously by contacting Saskatchewan Crime Stoppers at 1-800-222-TIPS (8477) or www.saskcrimestoppers.com.

    MIL Security OSI –

  • MIL-OSI Security: Freddie “Bankroll Freddie” Gladney, III Sentenced to Over 12 Years in Federal Prison Following Guilty Verdict at Jury Trial on Firearm and Drug Trafficking Charges

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

          LITTLE ROCK—Freddie “Bankroll Freddie” Gladney, III, will spend the next 150 months in federal prison after being convicted of multiple narcotics offenses, including a firearms offense, which involved a conspiracy to distribute large amounts of marijuana in and around central Arkansas. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by United States District Judge James M. Moody, Jr.

          Following a four-day trial, Gladney, 30, of Helena, was convicted by a federal jury on April 12, 2024. The jury found Gladney guilty of one count of conspiracy to distribute and possess with intent to distribute marijuana, one count of possession with intent to distribute marijuana, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of using a telephone in furtherance of a drug trafficking crime.

          In addition to the 150 months’ total imprisonment, which is more than twelve years, Judge Moody sentenced Gladney to three years supervised release. There is no parole in the federal system. Gladney was also ordered to pay a $242,000 money judgment as part of his conviction. 

          Gladney was indicted by a federal grand jury on May 3, 2023, in a 32-count superseding indictment that charged him with numerous offenses related to a conspiracy that was investigated by the Federal Bureau of Investigation (FBI).

          Two FBI operations, each focused on a rival gang, were created to address violence and drug trafficking in the corridor between Pine Bluff and Little Rock. The investigations focused on rival gangs responsible for violence throughout central Arkansas, with one operation focused on the EBK or Every Body Killas gang and resulting in the indictment of 35 defendants.

          An investigation revealed that on April 14, 2022, an Arkansas State Police trooper observed a black truck speeding and conducted a traffic stop in Marion. The trooper noted the odor of marijuana coming from inside the vehicle and asked Gladney to exit the vehicle. Gladney began to exit the vehicle but then reentered and started reaching for something in the vehicle. Because Gladney refused to exit the vehicle, the trooper was forced to remove him.

          During a search of Gladney’s vehicle, law enforcement officers located in the passenger seat near the area where Gladney had been reaching, a Romarm/Cugie Model Micro Draco 7.62x39mm caliber firearm and a Polymer 80 Model PF940C, 9mm privately made firearm (also known as a “ghost gun”). Additionally, during a search of the back seat of the vehicle, law enforcement officers located a duffle bag containing 21.4 pounds of high-grade marijuana and $33,662, which was located in the center console along with seven magazines, five of which were extended and fully loaded.

          At sentencing, Gladney received a 4-level increase for being an organizer or leader of criminal activity that involved five or more participants. Gladney received a 2-level increase in his guideline range for obstruction of justice related to a May 25, 2021, wiretap call in which he instructed a codefendant to remove guns and scales used for weighing illegal drugs from his Helena residence in anticipation that it would be searched by law enforcement. 

    GLADNEY III:           So where, what you got in the house in Helena?

    CODEFENDANT:     I got everything out of there.

    GLADNEY III:           You got everything out of there already?

    CODEFENDANT:     Yeah.

    GLADNEY III:           Scales and everything?

    CODEFENDANT:     Naw, I gotta, gotta, lemme call them. Send em back in to get that. I gotta find out where all they at.

    GLADNEY III:           Scales and shit. Get everything out the house. Any guns, anything.

    CODEFENDANT:     Alright, let me..

    GLADNEY III:           Where that MAK-90 at?

    CODEFENDANT:     It’s not there.

    GLADNEY III:           Alright get everything else out that house before they go search that b***h.

    CODEFENDANT:     Alright.

          Judge Moody cited the ghost gun in increasing Gladney’s sentence 2.5 years above the guidelines range. Judge Moody noted that based on trial testimony, it was apparent that Gladney’s ghost gun, which did not have a back plate, was either ready to receive a “switch,” or had recently had a “switch” on it, that would turn the ghost gun from a semi-automatic firearm to a fully-automatic firearm. Judge Moody also recognized that Gladney was on probation from a drug and gun case in Memphis at the time he was intercepted on the wiretap in this case. 

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

          The investigation was conducted by the FBI with assistance from Arkansas State Police, Arkansas Department of Community Corrections, Little Rock Police Department, North Little Rock Police Department, Pine Bluff Police Department, and Jonesboro Police Department. FBI’s GETROCK Task Force was formed in 2017 in response to the escalation in gang and gun violence in Little Rock. The unit’s investigations and operations are coordinated out of FBI Little Rock’s field office, and GETROCK continues to serve as the clearinghouse for gang-related law enforcement activity in Central Arkansas. Additional support was provided by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Homeland Security Investigations; United States Postal Inspection Service; Arkansas National Guard Counterdrug Joint Task Force; and the Arkansas State Crime Laboratory. These cases are being prosecuted by Assistant United States Attorneys Julie Peters, Amanda Fields, and Reese Lancaster.

    # # #

    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

    X (formerly known as Twitter):

    @USAO_EDAR 

    MIL Security OSI –

  • MIL-OSI Security: Johnstown Man Pleads Guilty to Straw Purchasing Firearms

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearms laws, United States Attorney Eric G. Olshan announced today.

    Keyshawn Savory, 24, pleaded guilty to six counts before United States District Judge Stephanie L. Haines.

    In connection with the guilty plea, the Court was advised that, on or about April 11, May 28, July 15, and August 1, 2021, in the Western District of Pennsylvania, Savory acted as a straw purchaser when purchasing firearms from several federally licensed firearms dealers by stating that the firearms were being purchased for himself, when he actually was purchasing the firearms on behalf of another person.

    Judge Haines scheduled sentencing for March 4, 2025. The law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

    Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Savory.

    This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.

    MIL Security OSI –

  • MIL-OSI Security: Repeat Offenders Plead Guilty in Separate Drug Trafficking Investigations

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    ALBANY, Ga. – Two Albany residents, both with lengthy criminal histories in the community, pleaded guilty to federal charges resulting from separate drug trafficking investigations in Southwest Georgia.

    Roderick Terrell Ferrell, 37, and Kerry Lamont Davis, 42, each pleaded guilty in separate cases to one count of distribution of cocaine before U.S. District Judge Leslie Gardner on Oct. 30. Due to their criminal histories, both Ferrell and Davis qualify as federal career offenders and each face a maximum of 30 years in prison to be followed by six years of supervised release and a maximum $2,000,000 fine. Sentencing hearings will be scheduled by the Court. There is no parole in the federal system.

    “Both defendants have lengthy criminal records and have repeatedly disregarded the law,” said U.S. Attorney Peter D. Leary. “These cases demonstrate how federal, state and local law enforcement are working together to make our communities safer and hold career offenders accountable.”

    “The FBI is proud to work with our local law enforcement partners in helping to convict these repeat offenders at the federal level, where they face stiffer penalties and no opportunity for parole,” said Rich Bilson, Supervisory Senior Resident Agent of the FBI Atlanta’s Albany office.

    “Our communities remain under attack by career criminals with no regard for the destruction they cause,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “This investigation demonstrates the DEA’s commitment to protecting our community.”

    “Our message is clear: individuals with histories of criminal behavior who continue to engage in illegal activities will be met with the full force of the justice system. We are dedicated to working alongside our partners to ensure that those who choose this path face serious consequences,” said Beau Kolodka, Assistant Special Agent in Charge of the ATF Atlanta Field Division.

    “Eliminating drug trafficking in our communities requires a united front,” said GBI Director Chris Hosey. “The successful convictions of these repeat offenders are a demonstration of the effectiveness of our collaboration across federal, state and local agencies to hold individuals accountable and ensure safer neighborhoods.”

    According to court documents and statements made public in court in the Ferrell case, federal, state and local law enforcement received information from various confidential sources that Terrell was distributing cocaine and was supplied by a metro-Atlanta unnamed co-conspirator. Due to COVID-19’s impact on drug supply at the time, Ferrell was charging $1,400 an ounce for powder cocaine. Law enforcement executed a search warrant at another dealer’s residence, seized cocaine, and discovered that Ferrell had sold at least 18 ounces of powder cocaine. Agents with the Drug Enforcement Administration (DEA), the FBI and the Georgia Bureau of Investigation (GBI) then conducted a controlled buy from Ferrell on Nov. 8, 2021, where Ferrell sold two ounces of powder cocaine for $2,150. In addition, Ferrell reported that he had been pulled over by local law enforcement on Oct. 13, 2022, and was in possession at the time of $30,000 from a recent drug transaction. On Nov. 30, 2023, a patrol officer pulled Ferrell over and found ten pounds of marijuana in ten plastic vacuum-sealed bags in the rear cargo area. Ferrell said he was transporting the drugs to Camilla, Georgia. During the investigation, agents discovered that Ferrell filed only one tax return between tax years 2019 and 2023, in which he claimed a negative income in 2022. DEA conducted a concealment money laundering investigation to look at how Ferrell was dispersing his drug trafficking money. Agents found that between Aug. 2021 and Dec. 2023, Terrell received and moved $383,057 through his and his co-conspirators’ CashApp accounts and bank accounts, despite having no employment or declaring any income on his taxes. Credit card and bank statements also showed that Terrell and his girlfriend used drug proceeds to purchase luxury goods from Christian Dior, Louis Vuitton, Saks, Gucci and Balenciaga, as well as took luxury vacations and invested in a business that was never operational. Terrell also has several prior felony convictions including robbery by force, terroristic threats and possession of cocaine with intent to distribute in Dougherty County, Georgia, Superior Court.

    According to court documents and statements made public in court in the Davis case, Albany Police Department (APD) officers responded to Ridgemont Road in Albany on March 26, 2023, about a suspicious auto parked in the middle of the road. Officers found Davis asleep in the driver’s seat. After Davis handed the officers his driver’s license, he fled at a high rate of speed and crashed his car. He then attempted to run away, but he was quickly apprehended. Inside the car, APD officers found a semiautomatic pistol, a semiautomatic rifle, a revolver, nearly four kilograms of vacuumed sealed marijuana, a distributable quantity of ecstasy and cocaine, a digital scale, plastic baggies and $25,039. Davis has two prior felony convictions for possession of marijuana with intent to distribute in Dougherty County, Georgia, Superior Court.

    The Ferrell case was investigated by the DEA, FBI and GBI.

    The Davis case was investigated by the ATF and APD.

    Assistant U.S. Attorney Matt Redavid prosecuted the cases for the Government.

    MIL Security OSI –

  • MIL-OSI Security: Justice Department to Monitor Compliance in South Carolina

    Source: Office of United States Attorneys

    COLUMBIA, S.C. — United States Attorney Adair Ford Boroughs announced today that the Justice Department will monitor compliance with federal voting rights laws in South Carolina for the Nov. 5 general election.

    The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country.

    The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day.

    The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.

    On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931.

    Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

    Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

    More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

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

    ###

    MIL Security OSI –

  • MIL-OSI Security: Owner of Florida Labor-Staffing Companies Pleads Guilty to Tax Fraud and Money Laundering

    Source: Office of United States Attorneys

    Defendant Caused a Tax Loss to the United States of more than $9.5M

    MIAMI – A Ukrainian national pleaded guilty today to conspiracy to defraud the United States and conspiracy to commit money laundering.

    According to the court documents and statements made in court, between April 2008 and July 2021, Oleksandr Yurchyk and others owned and operated a series of labor-staffing companies in southern Florida, including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC and Tropical City Group LLC. Through these staffing companies, Yurchyk and others facilitated the employment of non-resident aliens in the hospitality industry who were not authorized to work in the United States and helped evade the assessment and collection of federal income and employment taxes. Yurchyk and his co-defendants also laundered more than $11 million of proceeds from their scheme.

    Yurchyk is scheduled to be sentenced on Jan. 27, 2025. He faces a maximum penalty of 20 years in prison for the conspiracy to commit money laundering and five years in prison for the conspiracy to defraud the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

    Homeland Security Investigations and IRS Criminal Investigation are investigating the case.

    Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida and Sean Beaty and Trial Attorneys Matthew B. Hicks and Wilson R. Stamm of the Justice Department’s Tax Division are prosecuting the case.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Justice Department to Monitor Compliance in Dallas, Palo Pinto

    Source: Office of United States Attorneys

    United States Attorney Leigha Simonton announced today that the Justice Department will monitor compliance with federal voting rights laws in Dallas County and Palo Pinto County for the Nov. 5 general election.

    The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. 

    The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day. 

    The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion. 

    On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931. 

    Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

    Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

    More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting.

    Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

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

    MIL Security OSI –

  • MIL-OSI Security: Christmas Day Robbery Gets Woman Prison Term

    Source: Office of United States Attorneys

                WASHINGTON – Derricka Burton, 20, of Washington, D.C., was sentenced today to six years in prison for a Christmas Day robbery, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).

                The Honorable Robert Salerno sentenced Burton to six years in prison, to be followed by three years of supervised release. Burton was found guilty on June 20, 2024 of two counts of robbery and conspiracy to commit robbery, following a jury trial in the Superior Court of the District of Columbia.

                According to the government’s evidence, at around 2:38 p.m. on December 25, 2023, Burton and three co-conspirators saw the victims, a couple spending time together at the Alethia Tanner Park, located at 227 Harry Thomas Way Northeast. Video footage showed Burton and her co-conspirators huddle together before two of her co-conspirators walked up to the victims and robbed them. Burton’s co-conspirators pointed a gun at the victims and demanded the victims’ Canada Goose brand jacket, cellphone, and other items. The co-conspirators then walked back to Burton and the other co-conspirators. The group conferred with each other and left together. As they did so, one of the co-conspirators dropped some of the stolen property, which Burton picked up before she left with the group.  Police arrested Burton on February 12, 2024.

               In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the work of Assistant U.S. Attorneys Michael Toogun and Katrenia Shelly, who prosecuted the case.

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  • MIL-OSI Security: New Orleans Man Sentenced for Drug and Firearm Violations

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA – DONELL LEBANKS (“LEBANKS”), a/k/a “Shorty,” age 39, of New Orleans, was sentenced by U.S. District Judge Greg G. Guidry to 170 months incarceration, five (5) years of supervised release, and payment of a $400 mandatory special assessment fee, after previously pleading guilty to Counts 1 through 4 of a  superseding bill of information.

    Count 1 charged LEBANKS with conspiracy to distribute fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B) and, 846.  Count 2 charged LEBANKS with possession with the intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D).  Count 3 charged LEBANKS with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).  Count 4 charged LEBANKS with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).

    According to court records, during 2021, the Federal Bureau of Investigation (“FBI”) New Orleans Gang Task Force (“NOGTF”) investigated suspected drug sales on Touro Street, in New Orleans.  Using surveillance, FBI agents observed LEBANKS conducting possible hand-to-hand drug sales.  To confirm such drug sales, NOGTF agents made controlled purchases of fentanyl from LEBANKS.  On October 25, 2022, NOGTF obtained a search warrant for a residence as well as for LEBANKS’ vehicle. NOGTF members executed the search warrants and detained LEBANKS and detained him so they could effectuate the search warrant.  Inside the vehicle, agents recovered a nine-millimeter Glock handgun, with an extended magazine, tucked between the driver’s seat and the center console.  Additionally, agents recovered 180.7 grams of marijuana from the front passenger side of the vehicle.

    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 track violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    The case was investigated by the Federal Bureau of Investigation, and the New Orleans Police Department.  This case was prosecuted by Assistant United States Attorney Mike Trummel of the Violent Crimes Unit. 

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  • MIL-OSI Security: Drug Trafficking Biddeford Couple Sentenced

    Source: Office of United States Attorneys

    PORTLAND, Maine: A Biddeford man and woman were sentenced today in U.S. District Court in Portland for their roles in a fentanyl trafficking conspiracy in southern Maine.

    U.S. District Judge John A. Woodcock, Jr. sentenced Michael Bolster, 49, to a total of 72 months in prison on one count of conspiring to distribute fentanyl and two counts of distributing fentanyl, followed by five years of supervised release. Michael Bolster pleaded guilty on January 18, 2024.

    Jessica Bolster, 42, was sentenced to a total of 60 months in prison on one count of conspiring to distribute fentanyl and one count of distributing fentanyl, followed by four years of supervised release. Jessica Bolster pleaded guilty on February 21, 2024.

    According to court records, the Bolsters conspired together and with others to distribute and possess with intent to distribute fentanyl. In July 2023, the Bolsters sold fentanyl to a confidential source on three separate occasions. The sales were for approximately 9 grams, 30 grams and 29 grams of fentanyl, respectively. In August 2023, investigators executed a search warrant at the Bolsters’ residence and seized two large bundles of suspected fentanyl made up of small baggies wrapped for individual sale totaling approximately 542 grams. The U.S. Drug Enforcement Administration (DEA) lab tested a sample of the substance and confirmed the presence of fentanyl. Just 2 milligrams of fentanyl is considered a potentially lethal dose.

    Coconspirator Darwin Mateo, 25, is currently serving a 36-month sentence.

    The DEA investigated the case. 

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  • MIL-OSI Security: Justice Department to monitor compliance in Alaska

    Source: Office of United States Attorneys

    ANCHORAGE, Alaska – United States Attorney S. Lane Tucker announced today that the Justice Department will monitor compliance with federal voting rights laws in five Alaska jurisdictions for the Nov. 5 general election.

    The jurisdictions to be monitored are:

    • Bethel Census Area
    • Dillingham Census Area
    • Kusilvak Census Area
    • North Slope Borough
    • Northwest Arctic Borough

    The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country.

    The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day.

    The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.

    On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931.

    Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

    Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

    More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

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

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  • MIL-OSI Security: Schenectady Man Charged with Drug and Firearm Offenses

    Source: Office of United States Attorneys

    ALBANY, NEW YORK – Nekie Ricks, age 31, of Schenectady, New York, was ordered detained today following his indictment and arrest for possession with intent to distribute cocaine, and his possession of a firearm in furtherance of his drug trafficking.

    United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.

    According to the indictment, on August 24, 2022, Ricks possessed cocaine with the intent to distribute it, possessed a pistol in furtherance of that crime, and possessed that firearm even though he was a previously convicted felon. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

    The charges filed against Ricks carry a prison term of at least 5 years and up to life, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 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.

    Ricks was arraigned yesterday in Albany, before United States Magistrate Judge Christian F. Hummel. Following a detention hearing today, Ricks was ordered detained pending trial.

    ATF is investigating the case with assistance from the Schenectady Police Department and New York State Police. Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.

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  • MIL-OSI Security: Justice Department to Monitor Compliance in San Juan County, Utah

    Source: Office of United States Attorneys

    SALT LAKE CITY, Utah – United States Attorney Trina A. Higgins announced today that the Justice Department will monitor compliance with federal voting rights laws in San Juan County for the Nov. 5 general election.

    The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country.

    The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day.

    The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.

    On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931. The U.S. Attorney’s Office will also be available to receive complaints on Election Day at 801-325-3311.

    Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

    Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

    More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

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

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  • MIL-OSI Security: KS25 | The 623rd ACS can’t be pinned down

    Source: United States INDO PACIFIC COMMAND

    MISAWA AIR BASE, Japan  –  

     The 623 Air Control Squadron worked with the Japanese Air Self-Defense Force (JASDF) to provide battle management in support of Exercise Keen Sword 25 (KS25) Oct 18 – Nov 1, 2024.

    After travelling over 1,500 miles from their home station at Kadena Air Base, Japan, the 623rd ACS integrated with their U.S Air Force, U.S. Marine Corps and JASDF counterparts to successfully provide command and control capabilities to aircraft participating in KS25.

    “Maintaining a good relationship with joint service and the Japanese Self-Defense Force allows us to understand and use their systems,” said Capt. Zackary Schreiber, 623rd ACS detachment commander. “So, if we have to step for an exercise or a real world emergency, we know how each other functions and how to keep information flowing.”

    While at Misawa, the 623rd ACS operated out of two separate locations. One team assembled a shelter tent where they utilized the mobile Tactical Operations Center – Light kit while working side-by-side with the Marine Corps and their Ground/Air Task Oriented Radar system. The second team worked out of the direction center with the 610th ACS assigned to Misawa Air Base and the JASDF.

    Keen Sword demonstrates and advances U.S.-Japan interoperability and reinforces solidarity of the U.S.-Japan alliance by exercising the most modern equipment and procedures under realistic conditions.

    The direction center team worked with the JASDF and the 610th to control missions and provide information to aircraft flying in support of KS25. The teams debriefed extensively after every mission to continue optimizing their individual and combined capabilities.

    “Seeing the way that the JASDF out here uses their systems has opened a lot of doors for us to take back and improve our processes at Kadena,” said Tech. Sgt. Patrick Wolfe, 623rd ACS flight chief of weapons and tactics. “Also, we shared our standards and advancements with the other ACS units.”

    One thing that Wolfe said he specifically appreciated were the JASDF radio assignment and management processes because they were digitized which increased the ease of information flow.

    “It’s been a great experience working with the JASDF at Misawa,” said Schreiber. “They are just as experienced and professional as the service members I am used to working with.”

    The 623rd ACS, alongside joint force and allied partners, encountered realistic and relevant training opportunities that increased their ability to plan, communicate, and conduct multi-domain operations.

    “It feels like we’re actually deployed to the field,” said Tech. Sgt. Sherraye Carter, 623rd ACS noncommissioned officer in charge of command and control integrations. “It’s really important to fully experience that, not only for the Airmen personally, but for the equipment as well.”

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  • MIL-OSI Security: Keen Sword 25: U.S. Air Force, Japanese Forces Unite for First Integrated Rapid Airfield Damage Repair Training

    Source: United States INDO PACIFIC COMMAND

    AOMORI, Japan  –  

    U.S. and Japanese forces launched their first fully integrated Rapid Airfield Damage Repair (RADR) training on Oct. 30, 2024, as part of exercise Keen Sword 25, a biennial event focused on joint readiness and operational resilience in the Indo-Pacific.

    This year’s Keen Sword exercise unites all branches of the Japanese Self-Defense Forces (JSDF)—Ground, Maritime, and Air—in joint operations with U.S. forces. The training centers on strengthening interoperability and enhancing mission resilience in contingency scenarios, a critical aspect of maintaining security in the region.

    “This is the first time we’ve trained with all components of the Japanese military,” said U.S. Air Force Master Sgt. Alexander Manco, 35th Civil Engineer Squadron (CES) prime base engineer emergency force manager.

    In the past, the 35th CES and the Japan Air Self-Defense Force have conducted RADR training, but in this iteration, this is the first time the 35th CES has had the opportunity to work alongside all the branches of the JSDF.

    “Through RADR exercises, we’re able to practice real-world airfield recovery scenarios with our Japanese allies, which strengthens our ability to maintain airfield functionality under challenging conditions,” Manco added.

    RADR is a multi-staged process that quickly and effectively repairs airfields, allowing for flightline operations to continue in combat or natural disaster situations. This comprehensive training covers various aspects, including damage assessment, debris removal, and the application of expedient repair methods for runways and other critical infrastructure.

    The training also involves hands-on experience with heavy equipment and specialized materials, such as concrete or fiberglass covers, with an emphasis on safety protocols and efficient repair strategies in order to maintain operational readiness even under challenging conditions.

    The RADR training within Keen Sword 25 builds vital infrastructure repair skills ensuring both U.S. and Japanese forces are prepared to restore airfield capabilities quickly if needed.

    “This exercise not only reinforces the U.S.-Japan security alliance but also provides an invaluable opportunity for our members to work closely with Japanese counterparts,” Manco explained.

    The U.S.-Japan alliance is founded on shared interests, values, and a commitment to freedom and human rights. Both nations remain focused on maintaining regional peace and security in the Indo-Pacific, including building new partnerships and enhancing multilateral cooperation.

    “Our participation in Keen Sword 25 allows us to refine critical skills in rapid airfield recovery and reinforces our readiness to respond alongside our Japanese counterparts,” said, Lt Col. Daniel Blomberg, 35th Civil Engineer Squadron commander. “This exercise not only strengthens our interoperability but ensures we’re prepared to restore and maintain operational capabilities under any conditions, contributing to a stronger regional defense posture.”

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  • MIL-OSI Security: U.S., Japan successfully conclude joint bilateral exercise Keen Sword 25

    Source: United States INDO PACIFIC COMMAND

    JAPAN  –  

    Forces from the U.S., Japan, Australia and Canada concluded exercise Keen Sword 25 on Nov. 1 after ten days of integrated training across Japan.

    Keen Sword 25 was a joint bilateral exercise Japan designed to increase readiness and interoperability while strengthening the ironclad U.S.-Japan alliance. This year’s Keen Sword was the largest iteration of this exercise since its inception in 1986. The overall event included participants from the Japan Self-Defense Force (JSDF), Australian Defence Force (ADF), Canadian Armed Forces (CAF) and U.S. service members from across the joint force. The exercise began Oct. 23 following a bilateral press conference on Oct. 22.

    Throughout the exercise, U.S. forces worked alongside JSDF and partner nation forces to hone skills and maintain warfighting readiness. Bilateral and multilateral events undertaken as part of Keen Sword 25 included joint live fire training, medical mass casualty exercises, installation security forces training and simulated airfield damage repair, among others.

    Participants took advantage of the unique training environment to enhance tactics, techniques, and procedures across a wide range of military operations in support of furthering interoperability between U.S., JSDF and participating allied forces, strengthening deterrence, and regional stability. The training occurred throughout mainland Japan and its surrounding territorial waters.

    Keen Sword continues to be an opportunity to demonstrate the ironclad nature of the U.S. – Japan alliance, which is built on shared interests and values and a commitment to freedom and human rights. Both countries are focused on ensuring regional peace and security in the Indo-Pacific region, including building new partnerships and strengthening multilateral cooperation.

    Participants in Keen Sword 25 include U.S. Indo-Pacific Command (USINDOPACOM), U.S. Space Command (USSPACECOM), U.S. Pacific Fleet (PACFLT), U.S. Marine Corps Forces, Pacific (MARFORPAC), U.S. Army Pacific (USARPAC), Pacific Air Forces (PACAF), U.S. Forces Japan (USFJ), U.S. 7th Fleet (C7F), III Marine Expeditionary Force (III MEF), U.S. Army Japan (USARJ), U.S. Naval Forces Japan (CNFJ) 5th Air Force (5 AF) along with forces originating from units across the Department of Defense.

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  • MIL-OSI Security: New Haven — Missing person: Help the RCMP find Nathan David Lawrence

    Source: Royal Canadian Mounted Police

    November 2, 2024, New HAVEN, Queens District RCMP is asking for the public’s assistance in locating 19-year-old Nathan David Lawrence, who was last seen October 29 at 6:00 p.m. driving grey 2008 Dodge Calliber, with PEI plate: 680AEU.

    Nathan is described as 5-foot-9, 160 lbs, slim build, brown hair, brown eyes, with a go-tee, last seen wearing a black fleece, and black track pants.

    When someone goes missing, it has deep and far-reaching impacts for the person and those that know them. We ask that people spread the word through social media respectfully.

    Anyone with information on the whereabouts of Nathan David Lawrence is asked to contact Queens District RCMP at 902-368-9300. Should you wish to remain anonymous, call PEI Crime Stoppers toll free at 1-800-222-TIPS (8477)

    File: 20241615808

    Note to media: Photo of Nathan David Lawrence is attached.

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  • MIL-OSI Security: Court Permanently Stops Texas Professional and Business from Organizing and Selling “Tax Plans”

    Source: United States Attorneys General

    Agreed Order also Bars Professional from Preparing Tax Returns and Business from Preparing Tax Returns Reflecting Certain “Tax Plans”

    The U.S. District Court for the Northern District of Texas entered permanent injunctions today against Charles Dombek and The Optimal Financial Group LLC barring them from promoting any tax plan that involves creating or using sham management companies, deducting personal non-deductible expenses as business expenses or assisting in the creation of “captive” insurance companies. The injunctions also prohibit Dombek from preparing any federal tax returns for anyone other than himself and Optimal from preparing certain federal tax returns reflecting such tax plans. Dombek and Optimal consented to entry of the injunctions.

    According to the government’s complaint, Dombek is a licensed CPA and served as Optimal’s manager and president. Allegedly, Dombek and Optimal promoted a tax scheme throughout the United States to illegally reduce customers’ income tax liabilities by using sham management companies to improperly shift income to be taxed at lower tax rates, improperly defer taxable income or claim personal expenses as bogus business deductions. As alleged by the government, Dombek promoted himself as the “premier dental CPA” in America. The complaint further alleges that in promoting the schemes, Dombek and Optimal made false statements about the tax benefits of the scheme that they knew or had reason to know were false, then prepared and signed tax returns for their customers reflecting the sham transactions, expenses and deductions. The government contended that the total harm to the treasury from the scheme could have been $10 million or more.

    Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

    Each year the IRS highlights some of the tax scams that put taxpayers at risk of losing money, personal information, data and more. In the IRS’s most recent list, it specifically warned taxpayers “to beware of promoters peddling bogus tax schemes aimed at reducing taxes or avoiding them altogether.”

    Working with the IRS, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters over the past decade. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

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  • MIL-OSI Security: Readout of Director Rachel Rossi’s Trip to Northern California

    Source: United States Attorneys General 7

    Director Rachel Rossi of the Office for Access to Justice traveled to San Francisco to deliver the keynote address at the Pathways to Justice Conference, a statewide legal services conference held every three years. The engagement included meetings on access to justice issues and initiatives happening in Northern California.

    Opening the visit, Director Rossi participated in a listening session hosted by the California Community Justice Workers Working Group, a group of legal aid and access to justice leaders aiming to leverage professional support from nonlawyers to support legal service providers in delivering legal assistance to underserved and marginalized communities. Director Rossi delivered brief opening remarks and then heard from working group members on its proposed recommendations for a community justice worker program in California. The presentation was followed by a discussion with legal aid leaders from across California.

    Tuesday morning, Director Rossi delivered the keynote address for the Pathways to Justice Conference convened by the State Bar of California, the Legal Aid Association of California and the California Judicial Council. The conference convenes nonprofit legal service providers, private bar pro bono volunteers and staff from court departments and self-help centers from across the state to discuss access to justice topics. In her remarks, Director Rossi highlighted Office for Access to Justice initiatives and focused on the need to foster collaboration between state, local and federal access to justice stakeholders.

    Following the keynote, Director Rossi met with leadership from the Legal Aid Association of California, a statewide membership organization of over 100 legal aid providers. In the meeting, Director Rossi listened to the most pressing issues facing California’s legal aid community and discussed support for efforts to increase interagency collaboration at the state level in the pursuit of access to justice.

    That afternoon, Director Rossi attended a roundtable discussion with Bay Area public defense chiefs and leadership, including from San Francisco, Alameda, Santa Clara, Contra Costa, Sonoma, Solano and Marin County, California offices. Director Rossi shared information about Access to Justice Office resources including the Public Defense Resource Hub and the Legal Aid Interagency Roundtable federal funding digital resource. The discussion included the challenges confronting public defense professionals in Northern California such as lack of resources, caseload and workload challenges, recruitment and retention concerns and the unique resource needs for specialized and effective youth defense representation. The roundtable also touched on best practices and innovative public defense strategies spearheaded across bay area offices, including their advocacy and policy work, creative recruitment strategies and holistic representation models.

    Director Rossi then met with Prisoner Legal Services to discuss their work providing civil legal assistance to individuals incarcerated locally. She highlighted the pilot program launched by the Office for Access to Justice in partnership with the Federal Bureau of Prisons, which similarly provides civil legal services to adults in federal custody, including through the first medical-legal partnership in a federal prison in the United States. They discussed future collaboration and sharing of best practices.

    Director Rossi also met with the Federal Public Defender for the Northern District of California to discuss implementation of the Report and Recommendations Concerning Access to Counsel at the Federal Bureau of Prisons’ Pretrial Facilities, unique issues facing Criminal Justice Act panel attorneys, and other issues facing federal defenders in the district. Closing the trip, Director Rossi met with U.S. Attorney Ismail J. Ramsey for the Northern District of California.

    Director Rossi delivered the keynote address for the 2024 Pathways to Justice Conference in San Francisco. 
    Director Rossi and Bay Area public defense chiefs and leadership.
    Director Rossi and Office for Access to Justice staff met with representatives from Prisoner Legal Services. 

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  • MIL-OSI Security: Justice Department to Monitor Polls in 27 States for Compliance with Federal Voting Rights Laws

    Source: United States Attorneys General 7

    Civil Rights Division Staff Available to Receive Nationwide Reports Throughout Election Day

    The Justice Department announced today that it plans to monitor compliance with federal voting rights laws in 86 jurisdictions in 27 states for the Nov. 5 general election.

    The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country.

    For the general election, the department will monitor for compliance with federal voting rights laws on Election Day in 86 jurisdictions, including:

    • Bethel Census Area, Alaska;
    • Dillingham Census Area, Alaska;
    • Kusilvak Census Area, Alaska;
    • North Slope Borough, Alaska;
    • Northwest Arctic Borough, Alaska;
    • Apache County, Arizona;
    • Maricopa County, Arizona;
    • Pima County, Arizona;
    • Yuma County, Arizona;
    • San Joaquin County, California;
    • Broward County, Florida;
    • Miami-Dade County, Florida;
    • Orange County, Florida;
    • Osceola County, Florida;
    • Cobb County, Georgia;
    • DeKalb County, Georgia;
    • Fulton County, Georgia;
    • Gwinnett County, Georgia;
    • Macon-Bibb County, Georgia;
    • Jefferson County, Kentucky;
    • Kenton County, Kentucky;
    • City of Everett, Massachusetts;
    • City of Fitchburg, Massachusetts;
    • City of Leominster, Massachusetts;
    • City of Lowell, Massachusetts;
    • City of Malden, Massachusetts;
    • City of Methuen, Massachusetts;
    • City of Quincy, Massachusetts;
    • City of Salem, Massachusetts;
    • Prince George’s County, Maryland;
    • City of Ann Arbor, Michigan;
    • City of Detroit, Michigan;
    • City of Flint, Michigan;
    • City of Grand Rapids, Michigan;
    • City of Hamtramck, Michigan;
    • City of Warren, Michigan;
    • Hennepin County, Minnesota;
    • City of Minneapolis, Minnesota;
    • Ramsey County, Minnesota;
    • Covington County, Mississippi;
    • Scott County, Mississippi;
    • Warren County, Mississippi;
    • City of St. Louis, Missouri;
    • Blaine County, Montana;
    • Alamance County, North Carolina;
    • Mecklenburg County, North Carolina;
    • Wake County, North Carolina;
    • Bergen County, New Jersey;
    • Middlesex County, New Jersey;
    • Union County, New Jersey;
    • Bernalillo County, New Mexico;
    • Cibola County, New Mexico;
    • Clark County, Nevada;
    • Queens, New York;
    • Cuyahoga County, Ohio;
    • Portage County, Ohio;
    • Allegheny County, Pennsylvania;
    • Luzerne County, Pennsylvania;
    • Philadelphia County, Pennsylvania;
    • City of Pawtucket, Rhode Island;
    • City of Providence, Rhode Island;
    • City of Woonsocket, Rhode Island;
    • Charleston County, South Carolina;
    • Bennett County, South Dakota;
    • Jackson County, South Dakota;
    • Minnehaha County, South Dakota;
    • Oglala Lakota County, South Dakota;
    • Atascosa County, Texas;
    • Bexar County, Texas;
    • Dallas County, Texas;
    • Frio County, Texas;
    • Harris County, Texas;
    • Hays County, Texas;
    • Palo Pinto County, Texas;
    • Waller County, Texas;
    • San Juan County, Utah;
    • Hanover County, Virginia;
    • Henrico County, Virginia;
    • Loudoun County, Virginia;
    • City of Manassas, Virginia;
    • City of Manassas Park, Virginia;
    • Prince William County, Virginia;
    • Town of Lawrence (Rusk County), Wisconsin;
    • City of Milwaukee, Wisconsin;
    • Town of Thornapple, Wisconsin; and
    • City of Wausau, Wisconsin.

    The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include personnel from the Civil Rights Division, other department divisions, U.S. Attorney’s Offices and federal observers from the Office of Personnel Management. Throughout Election Day, division personnel will maintain contact with state and local election officials.

    The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.

    On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931.

    Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

    Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

    More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.

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  • MIL-OSI Security: Former Maryland Police Officer Convicted of Obstruction of Justice Related to Sex with Teen in Custody

    Source: United States Attorneys General 7

    A federal judge this week convicted a former Fairmount Heights, Maryland, police officer on one count of obstructing justice by writing a false police report.

    U.S. District Court Judge Deborah Boardman for the District of Maryland found Martique Vanderpool guilty following a 3-day bench trial that ended on Oct. 24. The judge found that former officer Vanderpool falsified a police report with intent to impede an investigation into an incident on Sept. 6-7, 2019, during which he and another officer arrested a 19-year-old woman and took her in handcuffs to the locked and otherwise-empty Fairmount Heights police station, where the officers uncuffed her and Vanderpool told her to “make this right” before having sex with her while she was in custody.

    “Martique Vanderpool obstructed justice to cover up his own serious police misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This former officer’s conduct is a betrayal both of the young woman who was in his care and of the entire law enforcement profession. With this verdict comes accountability for his crime.”

    “When those sworn to uphold the law choose instead to violate it, it undermines the very foundation of our society,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Martique Vanderpool abused his power and violated his oath as a police officer. He betrayed the community that put their trust in him and will now face the consequences of his actions.”

    According to evidence at trial and findings of fact made by the judge, Vanderpool and his partner, former Officer Phillip Dupree arrested the young woman for speeding and learned that she was rushing to get to her young son, who had been injured in an accident. Upon learning that the young woman had only a learner’s permit, Dupree asked her to get out of the car, at which point the young woman had a panic attack and Dupree took her to the ground and handcuffed her. In “an apparent state of mental distress,” the handcuffed young woman ran into the street and then banged her head on the side of the car she had been driving.

    The officers had the car towed from the scene and transported the young woman to the Fairmount Heights police station, even though the station had no holding cell or booking facilities and officers were not supposed to take prisoners there. The officers took the young woman inside, in handcuffs, and then removed the cuffs. Vanderpool told her “We gotta make this right,” and then had sex with her on a couch in the main room of the station. Afterward, the officers drove the young woman to a tow lot where the car, which was registered to someone else, was returned to her.

    According to the judge’s findings, Vanderpool then falsified an incident report to create a misleading impression that the officers and the young woman never left the scene of the traffic stop and that the car was returned to the registered owner. The report purposely omitted that the officers took the young woman from the scene to the police station; that Vanderpool had sex with her; and that the officers caused the car to be towed and later coordinated the release of the car to her. The report also purposely misstated that the car was returned to the registered owner.

    The judge, in finding that the false report was intended to interfere with an investigation that was within the jurisdiction of the FBI, noted that the young woman was a teenager, was slight of build, was in a state of panic, was forced to the ground by an officer, had her car towed, said that she needed to get to her son, was taken in handcuffs to the police station and was told to “make this right.”

    A sentencing hearing is scheduled for Feb. 20, 2025. Vanderpool faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Vanderpool’s partner, Phillip Dupree, was recently convicted in an unrelated case of committing a federal criminal civil rights violation by using unreasonable force during an unrelated arrest.

    The FBI Baltimore Field Office investigated the case.

    Deputy Chief Bobbi Bernstein and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division prosecuted the case, with assistance from Trial Attorney Betsy Hutson of the Justice Department’s Civil Rights Division. 

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  • MIL-OSI Security: Compound Ingredient Supplier Medisca Inc., to Pay $21.75M to Resolve Allegations of False and Inflated Average Wholesale Prices for Ingredients Used in Compounded Prescriptions

    Source: United States Attorneys General 7

    The Justice Department announced today that Medisca Inc. (Medisca), has agreed to pay $21.75 million to resolve allegations concerning the establishment of false and inflated Average Wholesale Prices (AWPs) for two ingredients used in compound prescriptions. Medisca’s pricing scheme allegedly caused pharmacies that purchased those ingredients to submit false prescription claims to the Defense Health Agency, which administers the TRICARE Program for the Department of Defense and the Department of Labor’s Office of Workers’ Compensation Programs (federal health care programs).

    “We will not tolerate fraudulent pricing schemes targeting health care programs that support veterans and other federal beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement demonstrates, we will hold accountable not just those who submit false claims, but all who participate in schemes designed to defraud the American taxpayers.”

    Compounding pharmacies purchase ingredients or chemicals from ingredient suppliers, such as Medisca, to prepare and fill compound prescriptions for patients who require a specially made prescription that is not generally available in the marketplace. Medisca knew that compound prescription reimbursement under federal health care programs was based in part on the AWPs it reported to various price listing agencies. The United States alleged that Medisca knowingly inflated the AWPs for resveratrol (NDC No. 38779-2863) and mometasone furoate (NDC No. 38779-2413) in order to increase the reimbursement that its pharmacy customers received from the federal healthcare programs for using those Medisca ingredients.

    Medisca acquired resveratrol from manufacturers for approximately $0.37 per gram. It repackaged and sold resveratrol for under $2 per gram. Medisca reported an AWP for resveratrol at $777 per gram, creating a spread of over $775 for each gram of resveratrol used by a pharmacy customer in a compound prescription reimbursed by the federal healthcare programs. Medisca acquired mometasone furoate from manufacturers for under $8 per gram. It repackaged and sold that ingredient to compound pharmacies for over $1,000 per gram. Medisca reported an AWP for mometasone furoate at over $7,300 per gram, thereby creating a spread of approximately $6,300 for each gram of the ingredient used by a pharmacy customer in a compound prescription reimbursed by the federal healthcare programs.  

    Medisca allegedly used the high AWPs it reported and the resulting profit potential it created for its customers as an inducement to its compound pharmacy customers to purchase those ingredients. Medisca’s alleged fraudulent pricing scheme enabled its pharmacy customers to bill federal healthcare programs inflated amounts – often thousands of dollars per prescription – for compound formulations containing those ingredients.

    “The systems establishing federal reimbursements for compounded pharmaceuticals should not be viewed by companies as an opportunity to artificially inflate reimbursements from federal payors such as TRICARE,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “When companies seek to manipulate the system for their own gain, the Eastern District of Texas will hold them accountable.”

    “When federal healthcare programs are defrauded it hurts all Americans,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office is committed to using the False Claims Act (FCA) to hold individuals and companies accountable for the impact their actions have on our critical programs. Taxpayers deserve honest pricing and assurances that the government is never overcharged.”

    “This settlement sends a clear message about the unwavering commitment of the Defense Criminal Investigation Service (DCIS) to protect the integrity of TRICARE, the Department of Defense’s health care benefit program which serves our U.S. military, their family members, and military retirees,” said Acting Special Agent in Charge Ryan Settle of the Department of Defense – Office of Inspector General, DCIS Southwest Field Office. “Health care providers who use fraudulent means to seek financial gain at the expense of TRICARE and the taxpayer will be diligently investigated and held accountable.”

    The settlement resolves claims brought under the whistleblower or qui tam provisions of the FCA by Doug McMakin against Medisca. Mr. McMakin is a pharmacist who owned and operated a compounding pharmacy that dispensed compounded prescriptions. Under the FCA, private parties may sue on behalf of the government for false claims for government funds and receive a share of any recovery. Mr. McMakin will receive $3,425,625 from the proceeds of the settlement. The lawsuit is captioned United States ex rel. McMakin v. Medisca Inc. (EDTX).  

    The resolution of these matters was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the Eastern District of Texas and the Western District of Texas, with investigative support from the DCIS, U.S. Postal Service Office of Inspector General (USPS OIG) and the Department of Labor.  

    The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

    Senior Trial Counsel Sanjay Bhambhani and Trial Attorney John Deck of the Civil Division, Assistant U.S. Attorney Mary Kruger for the Western District of Texas and Assistant U.S. Attorney James Gillingham for the Eastern District of Texas handled the matter, with investigative assistance from Special Agents Nicholas Koechig of DCIS and Timothy Jones of USPS OIG.

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

    Settlement

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  • MIL-OSI Security: Justice Department Secures Settlement Agreement with Colorado to Ensure Opportunities for People with Physical Disabilities to Live at Home

    Source: United States Attorneys General 7

    The Justice Department announced today that it secured a settlement agreement to resolve its lawsuit alleging that Colorado violates Title II of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C. by unnecessarily segregating adults with physical disabilities, including older adults, in nursing facilities.

    The ADA and the Olmstead decision require state and local governments to administer their services to people with disabilities in the most integrated setting appropriate to their needs. Today’s agreement gives thousands of Coloradans with physical disabilities the opportunity to move out of nursing facilities into the community — or avoid unnecessary nursing facility admission altogether — and receive the services they need at home. Community-based services that can help people live at home include assistance with bathing, dressing, managing medications and preparing meals.

    “People with disabilities should not have to give up their lives in the community and be isolated in nursing facilities to get the services they need,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement agreement sends the message that people with disabilities deserve the same kinds of lives as others, and makes clear that our family members, friends, and neighbors with disabilities add value to our lives and strengthen our communities when they can receive the services they need right inside their own home.”

    “Today’s resolution will give thousands of Coloradans with physical disabilities the information, resources, and opportunity to live in communities rather than being needlessly isolated. The agreement will also save taxpayer money by reducing state-funded institutionalization,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We commend our Civil Rights Division colleagues for their dedication and focus on this important issue, and we acknowledge the commitments made by the State of Colorado in this agreement.”   

    The department sued Colorado in September 2023, following a multi-year investigation. The lawsuit alleged that the state failed to provide adults with physical disabilities with the services they need to live at home or avoid moving into a nursing facility. In Colorado, most nursing facility residents and their families are unaware that they can receive services like nursing, personal care and housing assistance in the community. As a result, many move into, or remain in, nursing facilities even though they would prefer to live at home.

    To increase community integration for adults with physical disabilities, the state has made significant commitments in this agreement to:

    • Help thousands of nursing facility residents move back to the community;
    • Identify people at risk of unnecessary nursing facility admission to help them stay in their homes with the services they need;
    • Provide people with the information they need to make an informed choice about whether to live in a nursing facility or receive the services they need at home;
    • Connect people more quickly to Medicaid long-term care services in the community;
    • Increase opportunities for people with disabilities to hire and supervise their own caregivers;
    • Support family caregivers;
    • Facilitate prompt transitions to the community for interested nursing facility residents, by reducing administrative bottlenecks and problem-solving common transition barriers; and
    • Expand and improve services that help people find and keep affordable, accessible housing in the community.

    The parties have agreed that the federal district court will retain jurisdiction to enforce the agreement and that an independent monitor will evaluate the state’s compliance.

    Additional information about the Civil Rights Division is available at www.justice.gov/crt.

    Members of the public can report possible civil right violations at www.civilrights.justice.gov.

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  • MIL-OSI Security: Georgia CPA Sentenced in Syndicated Conservation Easement Tax Scheme

    Source: United States Attorneys General 7

    Defendant Helped Clients File Tax Returns Claiming $14M in False Deductions, Causing Nearly $5M in Loss to the IRS

    A Georgia accountant was sentenced today to 28 months in prison for his role in the promotion and sale of abusive syndicated conservation easement tax shelters.

    According to court documents and statements made in court, Herbert Lewis was a CPA and return preparer at an Atlanta-based accounting firm. Beginning at least in 2014 and through at least 2019, Lewis promoted and sold tax deductions to his wealthy clients in the form of units in illegal syndicated conservation easement tax shelters organized and created by co-defendants Jack Fisher, James Sinnott and others.

    According to court documents and statements made in court, Lewis also knew that, contrary to law, the transactions related to these illegal tax shelters lacked economic substance, that his wealthy clients participated only to obtain a tax deduction and that his clients received only a tax benefit for their participation in the shelters. For example, the scheme entailed the creation of partnerships that would purchase land and land-owning companies and then donate conservation easements over that land or the land itself. A client who purchased units in one of these partnerships had a “vote” ostensibly on what to do with the land the partnership owned. However, Lewis knew that the vote held by the partnership each year was just for optics and that the land invariably would be donated largely as a conservation easement.

    In some cases, in order to make it appear that his clients had joined the partnerships before the date of the conservation easement donation, which was necessary to claim the tax benefits, Lewis also instructed and caused his clients to falsely backdate documents — such as subscription agreements and checks — related to the partnerships. In 2019 alone, Lewis assisted 15 clients with claiming false deductions on their 2018 returns.

    In total, Lewis assisted in the preparation of tax returns that claimed nearly $14 million in false deductions based on backdated documents, causing a tax loss to the IRS of nearly $5 million.   

    Lewis earned over $1 million in commissions for his role in promoting and selling the illegal tax shelters to clients. Lewis also concealed the amount of commissions he had earned from selling units in these shelters by not fully reporting the commissions on his personal returns and instead fraudulently reporting commission income he had earned as income on the tax returns of nominee entities in his children’s names.

    In addition to his prison sentence, U.S. District Court Judge Timothy C. Batten Sr. for the Northern District of Georgia ordered Lewis to serve three years of supervised release and to pay $4,878,990.90 in restitution.

    Nine additional defendants have previously pleaded guilty to criminal conduct related to the syndicated conservation easement tax shelter scheme. These other defendants include appraiser Walter Douglas “Terry” Roberts, accountant Stein Agee, CPA Corey Agee, CPA Ralph Anderson, CPA James Benkoil, CPA Victor Smith, CPA William Tomasello, CPA and attorney Randall Lenz and attorney Vi Bui.

    Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia and IRS Criminal Investigation Chief Guy Ficco made the announcement. They also thanked U.S. Attorney Dena J. King for the Western District of North Carolina for her office’s assistance.

    IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case.

    Trial Attorneys Richard M. Rolwing, Parker Tobin, Jessica Kraft and Nicholas J. Schilling Jr. of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section of the Northern District of Georgia, are prosecuting the case.

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  • MIL-OSI Security: Lyft to Pay Civil Penalty to Resolve Allegations of Misleading Drivers About Their Potential Earnings

    Source: United States Attorneys General 7

    The Justice Department, together with the Federal Trade Commission (FTC), today announced that Lyft Inc. (Lyft) has agreed to resolve allegations that it made false and misleading statements about how much Lyft drivers would earn. The settlement includes an agreement to pay $2.1 million in civil penalties and a permanent injunction prohibiting such false and misleading earnings claims.

    Lyft operates a mobile app ride-hailing platform that connects consumers seeking rides with those who provide rides with their own personal vehicles. Through marketing campaigns and advertisements, Lyft recruits drivers. After a driver is hired, Lyft sets the rates the driver charges and collects a portion of the fare for each ride. In a civil complaint filed in the U.S. District Court for the Northern District of California, the government alleges that, as early as 2021, Lyft made false and misleading claims in its advertising and marketing regarding potential earnings and incentives to be earned by drivers who signed up to drive for Lyft. Lyft allegedly continued these practices even after it received a Notice of Penalty Offenses in October 2021 that placed the company on notice that false and misleading earnings claims were unlawful.

    The complaint alleges that Lyft disseminated advertisements promoting specific hourly amounts that drivers throughout the United States could earn. The company, however, did not disclose that the potential hourly amounts were based on the earnings of the top 20% of its drivers. The complaint also further alleges that Lyft also tried to induce drivers to offer more rides by promoting “earnings guarantees,” which guaranteed that drivers would be paid a set amount if they completed a specific number of rides in a certain time. These guarantees allegedly did not clearly disclose that drivers were paid only the difference between what they otherwise earned for the rides and Lyft’s advertised guaranteed amount, rather than receiving the full guaranteed amount in addition to their regular earnings for the rides.

    In the stipulated order entered today by the federal district court, Lyft is required to pay a $2,100,000 civil penalty. The order also enjoins Lyft from making any misrepresentations regarding driver earnings and includes other monitoring and reporting provisions aimed at promoting Lyft’s compliance with the order.

    “The Justice Department will vigorously enforce the law to stop companies from misleading Americans about their potential earnings in the gig economy,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the FTC to stop unfair and deceptive marketing practices.”

    “Lyft drivers deserve accurate information about how much they will be paid for the work they do,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Our settlement with Lyft bans exaggerated earnings claims and underscores the FTC’s commitment to ensuring gig workers are treated fairly.”

    Trial Attorney Paulina Stamatelos and Assistant Director Zachary Dietert of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorney Ekta Dharia for the Northern District of California and Abdiel Lewis and Evan Rose of the FTC’s Bureau of Consumer Protection handled the matter.

    For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.

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  • MIL-OSI Security: Jury Convicts San Diego Man in $35 Million Dollar Securities Fraud and COVID-Relief Fraud Scheme

    Source: Office of United States Attorneys

    SAN DIEGO – After an eight-day trial, a federal jury has convicted Denny Thakorbhai Bhakta on all 25 counts of securities fraud, bank fraud and money laundering in connection with a $35 million dollar investment fraud scheme and COVID-relief fraud scheme.

    Bhakta’s uncle, who was swindled out of $4.5 million, testified during the trial that he came to the U.S. as an immigrant, with only a suitcase and $8 in his pocket, and because of the defendant, he “lost everything he had worked for in 57 years in America. Everything.” Bhatka’s fraud scheme targeting numerous victims, including a childhood friend who lost hundreds of thousands of dollars; a friend of his family who lost $1.6 million; a high school classmate and her father who together lost more than $800,000; a cousin who lost $40,000; and an 88-year-old investor who was defrauded out of  $50,000.

    “This sophisticated scheme unraveled after several victims came forward and exposed the fraud,” said U.S. Attorney Tara McGrath. “Many of the victims are people who represent the best of us—hard working, honest Americans who made investments based on a trusted relationship. The jury’s verdict is a resounding affirmation that justice will prevail over deceit.”

    The evidence at trial showed Bhakta solicited investors in his companies Fusion Hotel Management LLC and Fusion Hospitality Corporation (collectively “Fusion”). Between at least 2016 and up to 2021, Bhakta falsely told investors that Fusion routinely acquired discounted blocks of hotel rooms from Hilton, which Fusion then sold to United Airlines and other companies at a higher price for a significant profit. To support these lies, Bhakta provided fabricated bank statements, fake contracts, and profit and loss statements purporting to show millions in revenue and profit. Instead of buying blocks of hotel rooms with investors’ funds, however, Bhakta used the money he obtained from investors for gambling, to make Ponzi-style payments to other investors, and to pay for Bhakta’s personal expenses, including a Mercedez-Benz S-Class and a Porsche 911 Turbo S.

    During the trial, prosecutors introduced evidence that Bhakta was flown into Las Vegas on the Wynn private jet and in just one 7.5-hour gambling binge in 2018, Bhakta lost $1 million at the Wynn Las Vegas. Through casino records, prosecutors demonstrated how Bhakta repeatedly took investors’ money straight to casinos and gambled (and lost) millions of dollars of investor money.

    As prosecutors argued at trial, in 2020, Bhakta doubled down on the fraud. Through the Paycheck Protection Program (“PPP”), Bhakta applied for 18 separate PPP loans totaling $4.4 million. To fraudulently obtain the PPP loans, and unbeknownst to his victim/investors, Bhakta created fake W-2 and other IRS documents and used the names and personally identifying information of his victim-investors to claim them as employees of Fusion and other entities under Bhakta’s control.  Bhakta used the more than $4.4 million he received in PPP loans to keep the Ponzi scheme going and to continue gambling and losing money at casinos.

    Bhakta was remanded into custody after the jury’s verdict. A sentencing hearing is set for January 25, 2025, at 9:00 a.m. in Courtroom 4D.

    This case is being prosecuted by Assistant U.S. Attorneys Kevin Mokhtari and Eric Olah.

    The Securities and Exchange Commission has also take civil action against the defendant.

    DEFENDANTS                                             Case Number 21cr3352-JLS                            

    Denny Thakorbhai Bhakta                             Age: 42                                   San Diego, CA

    SUMMARY OF CHARGES

    Securities Fraud—Title 15, U.S.C. §§ 78j(b), 78ff; Title 17, C.F.R. § 240.10b-5

    Maximum penalty:  Twenty years in prison and $5 million fine

    Bank Fraud—Title 18, U.S.C., Section 1344(2)

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

    Money Laundering– Title 18, U.S.C., Section 1957

    Maximum penalty: Ten years in prison and fine twice the amount of the criminally derived property involved in the transaction

    INVESTIGATING AGENCIES

    Federal Bureau of Investigation

    U.S. Securities and Exchange Commission, Los Angeles Regional Office

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