NewzIntel.com

Category: Security Intelligence

  • MIL-OSI Security: Hong Kong-Based Company Agrees to Pay $876,000 to Resolve Alleged False Claims Act Violations

    Source: United States Attorneys General 11

    Schaefer Systems International Ltd. (SSI) has agreed to pay $876,000 to resolve alleged False Claims Act violations relating to the payment of a prohibited finder’s fee in connection with the award of an Army and Air Force Exchange Service (AAFES) contract to supply a pallet racking system for a warehouse at a U.S. military base in South Korea. SSI markets and sells warehouse logistics systems and provides related services throughout Asia. SSI disclosed the prohibited payment to the government following an internal compliance review and internal investigation.

    The settlement resolves allegations that prior to the award of the AAFES contract in 2018, SSI falsely certified its compliance with a procurement integrity provision limiting the payment of commissions to certain bona fide employees and agencies. Unbeknownst to AAFES, SSI intended to pay a finder’s fee to a South Korean national who had informed SSI of the potential contracting opportunity and helped secure the contract.

    “Those who do business with the government must do so fairly and honestly,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will hold accountable contractors that fail to follow procurement rules, but we will also give credit to those who disclose their wrongdoing, take appropriate remedial actions, and meaningfully cooperate with the government’s investigation.”      

    “Department of Defense contractors have a duty to uphold their contractual obligations and deliver honest value to the American taxpayer,” said Special Agent-in-Charge Stanley A. Newell of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS), Transnational Operations Field Office. “This civil settlement demonstrates that illicit payment schemes and kickbacks will not be tolerated. The dedicated professionals of DCIS will work tirelessly to hold those who violate the public trust accountable.”

    In connection with the settlement, the United States acknowledged that SSI took a number of significant steps entitling them to credit for cooperating with the government. Following an internal compliance review and independent investigation, SSI promptly disclosed to the government the prohibited payment. SSI also provided the government with a detailed and thorough written disclosure and cooperated with the government throughout its investigation.

    The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and DCIS.

    Fraud Section Senior Trial Counsel Andrew A. Steinberg handled the matter.

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

    MIL Security OSI –

  • MIL-OSI Security: Hong Kong-Based Company Agrees to Pay $876,000 to Resolve Alleged False Claims Act Violations

    Source: United States Attorneys General 11

    Schaefer Systems International Ltd. (SSI) has agreed to pay $876,000 to resolve alleged False Claims Act violations relating to the payment of a prohibited finder’s fee in connection with the award of an Army and Air Force Exchange Service (AAFES) contract to supply a pallet racking system for a warehouse at a U.S. military base in South Korea. SSI markets and sells warehouse logistics systems and provides related services throughout Asia. SSI disclosed the prohibited payment to the government following an internal compliance review and internal investigation.

    The settlement resolves allegations that prior to the award of the AAFES contract in 2018, SSI falsely certified its compliance with a procurement integrity provision limiting the payment of commissions to certain bona fide employees and agencies. Unbeknownst to AAFES, SSI intended to pay a finder’s fee to a South Korean national who had informed SSI of the potential contracting opportunity and helped secure the contract.

    “Those who do business with the government must do so fairly and honestly,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will hold accountable contractors that fail to follow procurement rules, but we will also give credit to those who disclose their wrongdoing, take appropriate remedial actions, and meaningfully cooperate with the government’s investigation.”      

    “Department of Defense contractors have a duty to uphold their contractual obligations and deliver honest value to the American taxpayer,” said Special Agent-in-Charge Stanley A. Newell of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS), Transnational Operations Field Office. “This civil settlement demonstrates that illicit payment schemes and kickbacks will not be tolerated. The dedicated professionals of DCIS will work tirelessly to hold those who violate the public trust accountable.”

    In connection with the settlement, the United States acknowledged that SSI took a number of significant steps entitling them to credit for cooperating with the government. Following an internal compliance review and independent investigation, SSI promptly disclosed to the government the prohibited payment. SSI also provided the government with a detailed and thorough written disclosure and cooperated with the government throughout its investigation.

    The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and DCIS.

    Fraud Section Senior Trial Counsel Andrew A. Steinberg handled the matter.

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

    MIL Security OSI –

  • MIL-OSI Security: Belmont County Man Sentenced to 60 Years in Prison for Sexually Exploiting Multiple Children

    Source: US FBI

    COLUMBUS, Ohio – Dennis Stopar, 65, of Flushing, Ohio, was sentenced in U.S. District Court today to 720 months in prison for sexually exploiting minors and possessing child pornography.

    According to court documents, between 2022 and 2023, Stopar sexually assaulted at least nine minor victims, both male and female, and created hundreds of videos and images of the horrific abuse. At the time of the sexual assaults, most of the minor victims were in foster care of a family member of Stopar.

    In December 2023, while investigating a CyberTip to the National Center for Missing and Exploited Children (NCMEC) regarding child pornography being uploaded to a Dropbox account at an address in Belmont County, law enforcement encountered Stopar. Further investigation revealed Stopar, a convicted sex offender, possessed child pornography he had created of one of the minor victims on his phone. Stopar was arrested and his electronic devices were subsequently processed via a federal search warrant, and he was charged federally in April 2024.

    Forensic examinations on his devices revealed Stopar had filmed the sexual assaults of at least seven of the minor victims he had access to.  Approximately 160 images and 12 videos of the identified victims being sexually assaulted by Stopar were recovered.

    Stopar’s prior sex offense is a rape conviction for sexually abusing a victim beginning when the victim was approximately 6 years old until the victim was 16 years old.

    The defendant pleaded guilty in this case in December 2024.

    Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Belmont County Sheriff James G. Zusack announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Emily Czerniejewski and Jennifer M. Rausch are representing the United States in this case.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Belmont County Man Sentenced to 60 Years in Prison for Sexually Exploiting Multiple Children

    Source: US FBI

    COLUMBUS, Ohio – Dennis Stopar, 65, of Flushing, Ohio, was sentenced in U.S. District Court today to 720 months in prison for sexually exploiting minors and possessing child pornography.

    According to court documents, between 2022 and 2023, Stopar sexually assaulted at least nine minor victims, both male and female, and created hundreds of videos and images of the horrific abuse. At the time of the sexual assaults, most of the minor victims were in foster care of a family member of Stopar.

    In December 2023, while investigating a CyberTip to the National Center for Missing and Exploited Children (NCMEC) regarding child pornography being uploaded to a Dropbox account at an address in Belmont County, law enforcement encountered Stopar. Further investigation revealed Stopar, a convicted sex offender, possessed child pornography he had created of one of the minor victims on his phone. Stopar was arrested and his electronic devices were subsequently processed via a federal search warrant, and he was charged federally in April 2024.

    Forensic examinations on his devices revealed Stopar had filmed the sexual assaults of at least seven of the minor victims he had access to.  Approximately 160 images and 12 videos of the identified victims being sexually assaulted by Stopar were recovered.

    Stopar’s prior sex offense is a rape conviction for sexually abusing a victim beginning when the victim was approximately 6 years old until the victim was 16 years old.

    The defendant pleaded guilty in this case in December 2024.

    Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Belmont County Sheriff James G. Zusack announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Emily Czerniejewski and Jennifer M. Rausch are representing the United States in this case.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office Filed 81 Border-Related Cases This Week

    Source: US FBI

    SAN DIEGO – Federal prosecutors in the Southern District of California filed 81 border-related cases this week so far, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.

    The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

    In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

    A sample of border-related arrests this week:

    • On June 28, Wilmar Morales Ramirez, a citizen of Mexico, was arrested at the San Onofre gate of Camp Pendleton and charged with Deported Alien Found in the United States. He was previously deported to Mexico in December 2024.
    • On June 29, Almida Ayala Torres, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, a dog alerted to her vehicle as she tried to cross the border at the San Ysidro Port of Entry. Customs and Border Protection officers found 85 packages containing 113 pounds of methamphetamine hidden in the trunk hatch, driver’s side back door, passenger’s side back door, passenger’s side front door, center console, firewall, driver’s side quarter panel and passenger’s side quarter panel.
    • On June 30, Daniel Yanez Arriaga, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers at the Otay Mesa Port of Entry found that Yanez was hiding five pounds of fentanyl on his body when he attempted to cross the border in his car.
    • On July 2, Fernando Ojeda Martinez, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers at the San Ysidro Port of Entry found 52 packages containing 221 pounds of methamphetamine concealed in the rear passenger’s quarter panel, driver’s side passenger’s quarter panel, spare tire and gas tank of the defendant’s car.

    Also this week, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are some of those cases:

    • On July 1, Anderson Fabricio Leon-Chirinos, a citizen of Honduras who was previously convicted of two federal immigration felony convictions as well as state robbery and batter convictions, was found guilty by a jury of Attempted Re-entry of Remove Alien for again reentering the U.S. illegally. Sentencing is scheduled for September 29, 2025; Leon-Chirinos faces a maximum sentence of 20 years in prison.
    • On July 1, Anderson Fabricio Leon-Chirinos, a Honduran national who was previously convicted of felony Robbery in May 2014, and illegally re-entering the United States in 2018 and 2021, was found guilty by a jury of Attempted Reentry of Removed Alien for again entering the U.S. illegally. Sentencing is scheduled for September 29, 2025, and Leon-Chirinos faces a maximum sentence of 20 years in prison.
    • On July 2, Juan Carlos Ojeda-Saldana, a Mexican national, was sentenced in federal court to 70 months in custody for conspiring to distribute methamphetamine.
    • On July 2, Ana Maria Rosas-Ortega, a Mexican national who was previously convicted of two illegal re-entry offenses (Texas 2014 and Arizona 2015), and misuse of a U.S. passport (California 2016), was sentenced in federal court to 46 months in custody for attempting to illegally reenter the United States.

    Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

    The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

    Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office Filed 81 Border-Related Cases This Week

    Source: US FBI

    SAN DIEGO – Federal prosecutors in the Southern District of California filed 81 border-related cases this week so far, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.

    The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

    In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

    A sample of border-related arrests this week:

    • On June 28, Wilmar Morales Ramirez, a citizen of Mexico, was arrested at the San Onofre gate of Camp Pendleton and charged with Deported Alien Found in the United States. He was previously deported to Mexico in December 2024.
    • On June 29, Almida Ayala Torres, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, a dog alerted to her vehicle as she tried to cross the border at the San Ysidro Port of Entry. Customs and Border Protection officers found 85 packages containing 113 pounds of methamphetamine hidden in the trunk hatch, driver’s side back door, passenger’s side back door, passenger’s side front door, center console, firewall, driver’s side quarter panel and passenger’s side quarter panel.
    • On June 30, Daniel Yanez Arriaga, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers at the Otay Mesa Port of Entry found that Yanez was hiding five pounds of fentanyl on his body when he attempted to cross the border in his car.
    • On July 2, Fernando Ojeda Martinez, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers at the San Ysidro Port of Entry found 52 packages containing 221 pounds of methamphetamine concealed in the rear passenger’s quarter panel, driver’s side passenger’s quarter panel, spare tire and gas tank of the defendant’s car.

    Also this week, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are some of those cases:

    • On July 1, Anderson Fabricio Leon-Chirinos, a citizen of Honduras who was previously convicted of two federal immigration felony convictions as well as state robbery and batter convictions, was found guilty by a jury of Attempted Re-entry of Remove Alien for again reentering the U.S. illegally. Sentencing is scheduled for September 29, 2025; Leon-Chirinos faces a maximum sentence of 20 years in prison.
    • On July 1, Anderson Fabricio Leon-Chirinos, a Honduran national who was previously convicted of felony Robbery in May 2014, and illegally re-entering the United States in 2018 and 2021, was found guilty by a jury of Attempted Reentry of Removed Alien for again entering the U.S. illegally. Sentencing is scheduled for September 29, 2025, and Leon-Chirinos faces a maximum sentence of 20 years in prison.
    • On July 2, Juan Carlos Ojeda-Saldana, a Mexican national, was sentenced in federal court to 70 months in custody for conspiring to distribute methamphetamine.
    • On July 2, Ana Maria Rosas-Ortega, a Mexican national who was previously convicted of two illegal re-entry offenses (Texas 2014 and Arizona 2015), and misuse of a U.S. passport (California 2016), was sentenced in federal court to 46 months in custody for attempting to illegally reenter the United States.

    Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

    The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

    Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: Bonita Man Pleads Guilty in $5.8 Million Medicare Fraud Scheme

    Source: US FBI

    SAN DIEGO – Jacobo Melcer, a Bonita resident and businessowner, pleaded guilty in federal court today, admitting that he conspired with others to defraud Medicare of millions of dollars and to pay unlawful kickbacks for patient referrals.

    According to his plea agreement, Melcer submitted more than $5.88 million in false and fraudulent claims to Medicare through his ownership and operation of two durable medical equipment (DME) companies, which sold orthotics – including back, wrist, and knee braces – to Medicare beneficiaries.

    Melcer admitted that in operating the DME companies, he paid unlawful kickback payments to multiple companies for the referral of Medicare beneficiaries and prescriptions for DME, knowing that the prescriptions were signed by physicians who had no legitimate doctor-patient relationship with the beneficiary and had not conducted a legitimate medical evaluation of the beneficiary.

    In total, Melcer admitted that he paid more than $227,000 in kickbacks, and fraudulently billed Medicare $5,885,382 and was paid $3,479,303. As part of his guilty plea, Melcer agreed to forfeit and pay restitution in the amount of $3,479,303. 

    Melcer further admitted that he created and sold two DME companies to a co-conspirator for the sole purpose of putting the ownership under a nominee owner to conceal the true ownership from Medicare due to Medicare suspending the co-conspirator as a Medicare provider and the co-conspirator’s inability to continue to submit claims to Medicare.

    Melcer’s sentencing is scheduled for October 10, 2025. The case is being prosecuted by Assistant U.S. Attorney Blanca Quintero of the Southern District of California.

    DEFENDANT                                                Case Number 25cr2568-DMS                                 

    Jacobo Melcer                                                 Age: 85                                   Bonita, CA

    SUMMARY OF CHARGES

    Conspiracy to Commit Health Care Fraud and Pay Illegal Remunerations – Title 18, U.S.C., Section 371

    Maximum penalty: Five years in prison and $500,000 fine

    INVESTIGATING AGENCIES

    Federal Bureau of Investigation

    U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG)

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

    MIL Security OSI –

  • MIL-OSI Security: Bonita Man Pleads Guilty in $5.8 Million Medicare Fraud Scheme

    Source: US FBI

    SAN DIEGO – Jacobo Melcer, a Bonita resident and businessowner, pleaded guilty in federal court today, admitting that he conspired with others to defraud Medicare of millions of dollars and to pay unlawful kickbacks for patient referrals.

    According to his plea agreement, Melcer submitted more than $5.88 million in false and fraudulent claims to Medicare through his ownership and operation of two durable medical equipment (DME) companies, which sold orthotics – including back, wrist, and knee braces – to Medicare beneficiaries.

    Melcer admitted that in operating the DME companies, he paid unlawful kickback payments to multiple companies for the referral of Medicare beneficiaries and prescriptions for DME, knowing that the prescriptions were signed by physicians who had no legitimate doctor-patient relationship with the beneficiary and had not conducted a legitimate medical evaluation of the beneficiary.

    In total, Melcer admitted that he paid more than $227,000 in kickbacks, and fraudulently billed Medicare $5,885,382 and was paid $3,479,303. As part of his guilty plea, Melcer agreed to forfeit and pay restitution in the amount of $3,479,303. 

    Melcer further admitted that he created and sold two DME companies to a co-conspirator for the sole purpose of putting the ownership under a nominee owner to conceal the true ownership from Medicare due to Medicare suspending the co-conspirator as a Medicare provider and the co-conspirator’s inability to continue to submit claims to Medicare.

    Melcer’s sentencing is scheduled for October 10, 2025. The case is being prosecuted by Assistant U.S. Attorney Blanca Quintero of the Southern District of California.

    DEFENDANT                                                Case Number 25cr2568-DMS                                 

    Jacobo Melcer                                                 Age: 85                                   Bonita, CA

    SUMMARY OF CHARGES

    Conspiracy to Commit Health Care Fraud and Pay Illegal Remunerations – Title 18, U.S.C., Section 371

    Maximum penalty: Five years in prison and $500,000 fine

    INVESTIGATING AGENCIES

    Federal Bureau of Investigation

    U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG)

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

    MIL Security OSI –

  • MIL-OSI Security: Denver Man Charged with 27 Counts in Connection with CARES Act Fraud

    Source: US FBI

    DENVER – An indictment was unsealed on Wednesday in Denver charging Steve Randall Howe with twenty counts of bank fraud and seven counts of money laundering in connection with a scheme to defraud the United States Small Business Administration (SBA).

    According to the indictment, between April 2020 and January 2022, Howe obtained more than $1.2 million in Paycheck Protection Program (PPP) loans on behalf of six businesses he owned.  To obtain the loans, Howe submitted false information and fabricated documents to lenders to make it appear that those companies were eligible for PPP loans when they were not.  Howe then used the loan money for ineligible expenses, like purchases of residential properties, retail purchases, travel expenses, and transfers of money to China.  The indictment alleges that Howe then applied for, and received, forgiveness on each loan, never making a single payment on them.

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic.  The CARES Act created the PPP, a program administered by the SBA that provided loans to small businesses to retain workers, maintain payroll, and pay for certain other expenses consistent with PPP rules.  Small businesses could subsequently request forgiveness of the loan after certifying the loan was used to pay for eligible costs.    

    The defendant made his initial appearance on July 2, 2025, in Denver in front of United States Magistrate Judge N. Reid Neureiter.

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

    This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation.  The case is being prosecuted by Assistant United States Attorneys Taylor Glogiewicz and Craig Fansler.

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

    Case Number:                    25-cr-00197-NYW             

    MIL Security OSI –

  • MIL-OSI Security: Denver Man Charged with 27 Counts in Connection with CARES Act Fraud

    Source: US FBI

    DENVER – An indictment was unsealed on Wednesday in Denver charging Steve Randall Howe with twenty counts of bank fraud and seven counts of money laundering in connection with a scheme to defraud the United States Small Business Administration (SBA).

    According to the indictment, between April 2020 and January 2022, Howe obtained more than $1.2 million in Paycheck Protection Program (PPP) loans on behalf of six businesses he owned.  To obtain the loans, Howe submitted false information and fabricated documents to lenders to make it appear that those companies were eligible for PPP loans when they were not.  Howe then used the loan money for ineligible expenses, like purchases of residential properties, retail purchases, travel expenses, and transfers of money to China.  The indictment alleges that Howe then applied for, and received, forgiveness on each loan, never making a single payment on them.

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic.  The CARES Act created the PPP, a program administered by the SBA that provided loans to small businesses to retain workers, maintain payroll, and pay for certain other expenses consistent with PPP rules.  Small businesses could subsequently request forgiveness of the loan after certifying the loan was used to pay for eligible costs.    

    The defendant made his initial appearance on July 2, 2025, in Denver in front of United States Magistrate Judge N. Reid Neureiter.

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

    This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation.  The case is being prosecuted by Assistant United States Attorneys Taylor Glogiewicz and Craig Fansler.

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

    Case Number:                    25-cr-00197-NYW             

    MIL Security OSI –

  • MIL-OSI Security: Georgia Man Sentenced for Exploiting North Mississippi Boy

    Source: US FBI

    Greenville, MS – A Georgia man was sentenced today to 20 years in prison for attempting to coerce a Mississippi minor to send sexually explicit images through an online platform.

    According to court documents, Davin Buckner, 24 years old, of Resaca, Georgia, engaged in an online conversation over a gaming platform with a ten-year old child in Lafayette County. Buckner invited and allowed the minor to access and use credits on Buckner’s account to play games. Once the minor used some credits, Buckner advised the minor that he would have to repay the money by sending explicit images of himself. Buckner thought the child was 9 years old. Using emojis, Buckner requested the minor send pictures of his penis “stimulated.” The minor complied and took a picture using his cell phone which he then sent to Buckner.

    The minor’s parents discovered the messages and turned the cell phone over to the FBI. Buckner committed this online crime while out on bond awaiting trial for hands on sexual exploitation offenses out of Georgia that occurred in 2020.

    District Judge Debra M. Brown sentenced Buckner to serve 240 months in federal prison followed by lifetime supervised release for the online offense.

    “I can think of no more egregious crime than an adult who sexually exploits a child, and this office will continue to exercise zero tolerance for sexual predators, period,” said U.S. Attorney Clay Joyner.  “AUSA Parker King and our invaluable partners at the FBI have yet again run an extremely dangerous individual to ground and provided protection and justice to the most vulnerable among us.”

    “Protecting children from exploitation is one of the FBI’s highest priorities,” said Special Agent in Charge of the FBI Jackson Field Office Robert Eikhoff. “Mr. Buckner, who was awaiting trial for sexual exploitation of another child, continued to violate the innocence of a minor. Buckner is a dangerous sexual predator who preyed on our most vulnerable victims, our children. The FBI maintains a steadfast commitment to protect minors and their innocence by aggressively investigating and holding accountable predators, like Buckner.”

    This case was investigated by the FBI.

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

    MIL Security OSI –

  • MIL-OSI Security: Ohio Man Pleads Guilty to Federal Gun Crime

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

    HUNTINGTON, W.Va. – Douglas Lee Brown, also known as “Wiggles,” 56, of Columbus, Ohio, pleaded guilty today to being a felon in possession of a firearm.

    According to court documents and statements made in court, on April 18, 2024, law enforcement officers arrested Brown on domestic battery and wanton endangerment warrants in Huntington and found he possessed a loaded Taurus model G2C 9mm pistol in his waistband. Officers determined the firearm was reported stolen.

    Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Brown knew he was prohibited from possessing a firearm because of his prior felony conviction for burglary in Franklin County, Ohio, Common Pleas Court on November 15, 2012.

    Brown has a long criminal history and was on a term of supervision as a result of the burglary conviction at the time of the current offense.

    Brown is scheduled to be sentenced on October 20, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.

    United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case.

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

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-168.

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    MIL Security OSI –

  • MIL-OSI Security: Wake County Felon Sentenced to Over Six Years after Posting a Video Possessing a Firearm

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

    RALEIGH, N.C. – Diamonique Shawn Newton, age 33, was sentenced to 78 months in federal prison for being a felon in possession of a firearm.  Newton pled guilty to the charge on March 24, 2025.

    According to court records and evidence presented at sentencing, in February 2024, officers with the Raleigh Police Department (RPD) investigated Newton after they saw he had posted pictures of himself on his Facebook page possessing a firearm. RPD was aware of Newton’s felon status and inability to possess a firearm. The investigation culminated on February 26, 2024, when Newton streamed a live Facebook video of himself pointing a gun at the camera multiple times. Based on the investigation, on February 29, RPD obtained and executed a search warrant for Newton’s Raleigh home. During the search, RPD found two firearms, one of which was stolen, over 180 grams of marijuana, and drug paraphernalia. Newton admitted that the stolen firearm was his and that he had bought it off the street.

    Newton has a criminal history that spans almost two decades and includes two felony convictions for possession with intent to sell or deliver marijuana from 2011 and 2018. Newton was also previously convicted of attempted possession of a firearm by a felon in 2013.

    Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III.  Agencies involved in the investigation include the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Jaren Kelly and Kimberly Dixon prosecuted the case.

    A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:24-CR-00074-D-RJ.

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  • MIL-OSI Security: District of Arizona Charges 114 Individuals for Immigration-Related Criminal Conduct This Week

    Source: US FBI

    PHOENIX, Ariz. – During the week of enforcement operations from June 28, 2025, through July 4, 2025, the U.S. Attorney’s Office for the District of Arizona brought immigration-related criminal charges against 114 individuals. Specifically, the United States filed 60 cases in which aliens illegally re-entered the United States, and the United States also charged 45 aliens for illegally entering the United States. In its ongoing effort to deter unlawful immigration, the United States filed 7 cases against 8 individuals responsible for smuggling illegal aliens into and within the District of Arizona. Protecting law enforcement officers is a key part of border vigilance, and federal prosecutors also charged one individual for assaulting a Customs and Border Protection Officer.

    These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), ICE Homeland Security Investigations (HSI), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

    Recent matters of interest include:

    United States v. Marselino Garcia-Gonzalez:  On June 27, 2025, Border Patrol Agents attempted to conduct a stop on Marselino Garcia-Gonzalez while he was driving a vehicle on Arizona Highway 93. Garcia-Gonzalez failed to yield, attempting to flee law enforcement by driving over 106 miles per hour. He eventually slammed on the brakes and stopped in the median of the highway. Three subjects, including Garcia-Gonzalez, then exited the vehicle and ran across the northbound lanes of Highway 93. All three subjects were ultimately apprehended. The two passengers were citizens of Mexico, illegally present in the United States. One of the passengers was an unaccompanied 14-year-old male. Garcia-Gonzalez was charged by criminal complaint with Transportation of an Illegal Alien. [Case Number: 25-MJ-01710]

    United States v. Victor Adolfo Zepeda-Arreola:  On July 1, 2025, Victor Adolfo Zepeda-Arreola, was charged by criminal complaint with Re-entry of a Removed Alien. Zepeda-Arreola had been previously removed from the United States in 2023 after being convicted of Attempted Burglary in the Third Degree for Purposes of Sexual Gratification, a felony, in the Superior Court of Arizona, Pima County. [Case Number: 25-MJ-06270]

    A criminal complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

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

    RELEASE NUMBER:    2025-111_July 4 Immigration Enforcement

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI Security: District of Arizona Charges 114 Individuals for Immigration-Related Criminal Conduct This Week

    Source: US FBI

    PHOENIX, Ariz. – During the week of enforcement operations from June 28, 2025, through July 4, 2025, the U.S. Attorney’s Office for the District of Arizona brought immigration-related criminal charges against 114 individuals. Specifically, the United States filed 60 cases in which aliens illegally re-entered the United States, and the United States also charged 45 aliens for illegally entering the United States. In its ongoing effort to deter unlawful immigration, the United States filed 7 cases against 8 individuals responsible for smuggling illegal aliens into and within the District of Arizona. Protecting law enforcement officers is a key part of border vigilance, and federal prosecutors also charged one individual for assaulting a Customs and Border Protection Officer.

    These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), ICE Homeland Security Investigations (HSI), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

    Recent matters of interest include:

    United States v. Marselino Garcia-Gonzalez:  On June 27, 2025, Border Patrol Agents attempted to conduct a stop on Marselino Garcia-Gonzalez while he was driving a vehicle on Arizona Highway 93. Garcia-Gonzalez failed to yield, attempting to flee law enforcement by driving over 106 miles per hour. He eventually slammed on the brakes and stopped in the median of the highway. Three subjects, including Garcia-Gonzalez, then exited the vehicle and ran across the northbound lanes of Highway 93. All three subjects were ultimately apprehended. The two passengers were citizens of Mexico, illegally present in the United States. One of the passengers was an unaccompanied 14-year-old male. Garcia-Gonzalez was charged by criminal complaint with Transportation of an Illegal Alien. [Case Number: 25-MJ-01710]

    United States v. Victor Adolfo Zepeda-Arreola:  On July 1, 2025, Victor Adolfo Zepeda-Arreola, was charged by criminal complaint with Re-entry of a Removed Alien. Zepeda-Arreola had been previously removed from the United States in 2023 after being convicted of Attempted Burglary in the Third Degree for Purposes of Sexual Gratification, a felony, in the Superior Court of Arizona, Pima County. [Case Number: 25-MJ-06270]

    A criminal complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

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

    RELEASE NUMBER:    2025-111_July 4 Immigration Enforcement

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

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  • MIL-OSI Security: Stockton Man Sentenced to 20 Years in Prison for Nationwide Sexual Exploitation of Minors Using Social Media

    Source: US FBI

    Elmer Yusay Ngo, 29, of Stockton, was sentenced today by U.S. District Judge Kimberly J. Mueller to 20 years in prison, to be followed by 50 years of supervised release for child exploitation, Acting U.S. Attorney Michele Beckwith announced.

    According to court records, Ngo utilized social media to sexually exploit female minors nationwide. This sexual exploitation included attempting to coerce, entice, and persuade the minors to produce child pornography of themselves at Ngo’s direction. Ngo persistently sought out minor females and engaged in similar patterns of behavior, which included befriending the minor on social media, obtaining at least one nude or partially nude image of the minor, using that image as leverage to demand the minors engage in video calls while nude, and ordering the minors to perform various sexual acts on themselves while on video. Ngo would keep his end of the video call blacked out so that the minors could not see his face.

    This case was the product of an investigation by the Federal Bureau of Investigation and the Internet Against Crimes Against Children Task Force, with assistance from state and local police departments nationwide. Assistant U.S. Attorney Kristin F. Scott prosecuted the case.

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

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  • MIL-OSI Security: Stockton Man Sentenced to 20 Years in Prison for Nationwide Sexual Exploitation of Minors Using Social Media

    Source: US FBI

    Elmer Yusay Ngo, 29, of Stockton, was sentenced today by U.S. District Judge Kimberly J. Mueller to 20 years in prison, to be followed by 50 years of supervised release for child exploitation, Acting U.S. Attorney Michele Beckwith announced.

    According to court records, Ngo utilized social media to sexually exploit female minors nationwide. This sexual exploitation included attempting to coerce, entice, and persuade the minors to produce child pornography of themselves at Ngo’s direction. Ngo persistently sought out minor females and engaged in similar patterns of behavior, which included befriending the minor on social media, obtaining at least one nude or partially nude image of the minor, using that image as leverage to demand the minors engage in video calls while nude, and ordering the minors to perform various sexual acts on themselves while on video. Ngo would keep his end of the video call blacked out so that the minors could not see his face.

    This case was the product of an investigation by the Federal Bureau of Investigation and the Internet Against Crimes Against Children Task Force, with assistance from state and local police departments nationwide. Assistant U.S. Attorney Kristin F. Scott prosecuted the case.

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

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  • MIL-OSI Security: Three More District Men Sentenced for Trafficking Fentanyl in Trinidad Neighborhood of Northeast Washington

    Source: US FBI

                WASHINGTON —  U.S. Attorney Jeanine Ferris Pirro today announced the sentencings of three District men — Jalonie Hooper, 26, Edward Frizell Williams, Jr., 53, and Dandre Goodwine, 30 — for their roles in a narcotics trafficking conspiracy that operated an open-air drug market in the Trinidad neighborhood in Northeast Washington D.C.

                Goodwine, aka “Dreads,” pleaded guilty March 3 before Chief Judge James E. Boasberg to conspiracy to distribute fentanyl, fentanyl analogue, and cocaine base. Judge Boasberg today sentenced Goodwine to 36 months in federal prison and ordered three years of supervised release.

                Hooper, aka “JR,” pleaded guilty April 4 to conspiracy to distribute and possess with the intent to distribute fentanyl and cocaine base. Judge Boasberg sentenced Hooper on July 1 to 15 months in prison followed by three years of supervised release.

                Williams, aka “Pooh,” pleaded guilty March 3 to conspiracy to distribute fentanyl, fentanyl analogue, cocaine base, and heroin. Judge Boasberg sentenced Williams on July 1 to 22 months in prison followed by three years of supervised release.

                According to court documents, during the course of the conspiracy, the Trinidad neighborhood crew sold approximately 468 kilograms of fentanyl, fentanyl analogue, and cocaine base on and around the 1100 block of Raum Street, NE.

                On May 23, 2022, law enforcement executed a search warrant at 1657 11th Place, NE, at a stash house where Goodwine was known to frequent. Agents recovered multiple five firearms, digital scales with white residue suspected controlled substance; a false book containing six twists and 27 small twists each containing a white substance suspected to be a controlled substance, and multiple magazines and rounds of various ammunition. Goodwine’s DNA was found on the magazine of a Glock 22 .40 caliber semi-automatic handgun.

                On August 12, 2023, at 11 p.m., MPD officers were called to investigate an incident on the 1600 block of V Street, NW and arrested Hooper. Officers found approximately 50 grams of cocaine base on his person.

                When law enforcement agents executed the search warrant at the 11th Place stash house, they found Williams outside within arms-length of a .40 caliber handgun. DNA on the firearm connected it to Williams.

                This operation 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 Trinidad trafficking investigation was a multi-agency effort between the Drug Enforcement Administration’s Washington Division, the Narcotics Enforcement Unit of the Violent Crime Suppression Division of the Metropolitan Police Department, and the FBI Washington Field Office’s Violent Crimes Task Force.

                The case is being prosecuted by Assistant U.S. Attorneys Nihar Mohanty and Daniel Seidel of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by Criminal Division Trial Attorneys Christina Taylor and Gaelin Bernstein.

    24cr246

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  • MIL-OSI Security: St. Petersburg Man Sentenced to More Than Four Years in Federal Prison for Committing $1.2 Million Fraud Scheme While in Florida State Prison

    Source: US FBI

    Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Jared Borgesto Murray (41, St. Petersburg) to four years and nine months in federal prison for conspiracy to commit mail fraud and wire fraud. Murray pleaded guilty on March 24, 2025.

    According to court documents,between January 2019 and September 2020, Murray­ orchestrated a $1.2 million fraud conspiracy while he was incarcerated in a Florida state prison for a Pinellas County robbery conviction. From the state prison, Murray organized and directed the fraud conspiracy targeting a nationwide merchant. Murray used dozens of customers’ store accounts at the merchant to fraudulently purchase products. Murray and his conspirators sold the products online and retained the fraud proceeds, causing the merchant to lose $1,260,495.89.

    Murray conducted the conspiracy using multiple contraband phones he had smuggled into the prison. Murray identified customers with merchant accounts and then called the merchant locations impersonating the customers to place orders for products using the customers’ open lines of credit.

    Murray and his co-conspirators then advertised the products for sale online at a substantial discount. Murray communicated with potential buyers and sold the products from state prison via phone and email. Murray and the conspirators arranged delivery of the fraudulently purchased products to the purchasers who paid Murray and the conspirators via wire transfers and mailed checks. Murray directed several individuals to pick up fraud proceeds or fraudulently obtained products.

    Murray used some of the fraud proceeds and fraudulently purchased products to build a house in Lake Placid, Florida. The house was forfeited by law enforcement along with $43,550 in fraud proceeds seized from two of Murray’s bank accounts.

    This case was investigated by the Federal Bureau of Investigation and Tampa Police Department. It was prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Suzanne Nebesky.

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  • MIL-OSI Security: Tampa Man Sentenced to Five Years in Prison for Embezzling More Than $500,000 From St. Petersburg Company

    Source: US FBI

    Tampa, Florida –U.S. District Judge Virginia M. Hernandez Covington has sentenced Zachary Rugen (34, Tampa) to 5 years in federal prison for wire fraud and possessing a firearm as a convicted felon. As part of the sentence, the court also entered an order of forfeiture in the amount of $440,755.18. Rugen pleaded guilty on April 8, 2025.

    According to testimony and court documents, between October 2020 and March 2022, Rugen was employed as the personnel director for a small company in St. Petersburg, Florida. Rugen exploited that role to embezzle at least $503,372.01 from the company. He used his access to the employer’s payment processing system to direct funds intended for vendors and contractors to bank accounts he controlled. Rugen also paid some of his outstanding debts with company funds. To cover the fraud scheme, Rugen electronically submitted falsified and fraudulent payment invoices. Rugen used the ill-gotten funds to live lavishly, including taking expensive vacations and gambling, and for his personal expenses. During the sentencing hearing, the victim-company’s chief operating officer testified that the fraud caused substantial financial hardship from which it will take the company at least five years to recover. As a result of the embezzlement, one of the company’s vendors nearly went out of business.

    During the investigation of Rugen’s embezzlement, law enforcement learned that Rugen was also illegally possessing two firearms. Rugen was prohibited from possessing the firearms due to a prior felony conviction involving impersonating a law enforcement officer. 

    This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Tiffany Fields and Jennifer L. Peresie. 

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  • MIL-OSI Security: North Carolina Man Sentenced for Making False Statements Under Oath in a Bankruptcy Case

    Source: US FBI

    BLUEFIELD, W.Va. – Travis Lee Harry, 40, of Kernersville, North Carolina, was sentenced today to three years of federal probation, including 90 days on home detention, and fined $4,000 with interest for making false statements under oath in a bankruptcy case.

    According to court documents and statements made in court, Harry had owned and lived in a house in Princeton, West Virginia, which he sold on December 23, 2019. On February 5, 2020, Harry filed for Chapter 7 bankruptcy in United States Bankruptcy Court for the Southern District of West Virginia. On the Statement of Financial Affairs he submitted as part of the bankruptcy filing, and which he signed under penalty of perjury, Harry falsely stated that he and his spouse co-owned the house and sold it together. At a March 6, 2020, meeting of creditors as part of the bankruptcy proceeding, Harry falsely testified under oath that he had co-owned the house with his spouse. Harry admitted as part of his guilty plea that he solely owned the house, and that his spouse was never a co-owner. Harry further admitted that he falsely indicated during the creditors’ meeting that all of the proceeds from selling the house went to pay taxes.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI). The United States Trustee’s Charleston field office, which serves West Virginia, made the criminal referral of this case to the U.S. Attorney’s Office. The United States Trustee Program is a component of the Department of Justice whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public.

    Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:24-cr-143.

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  • MIL-OSI Security: Fairburn Felon Sentenced to Federal Prison for Stealing Prescription Drugs Worth Nearly $400,000 and Possessing a Firearm

    Source: US FBI

    ATLANTA – Malik Kiell Forte, 29, from Fairburn, Georgia has been sentenced for possessing a firearm after numerous felony convictions and stealing prescription drugs by burglarizing a warehouse and breaking into delivery vehicles parked outside of pharmacies around metro Atlanta. 

    “Criminals who steal prescription medications for profit will be identified, apprehended, and prosecuted,” said U.S. Attorney Theodore S. Hertzberg. “Our office remains committed to protecting vulnerable patients and punishing gun-toting thieves.”

    “Forte’s actions not only harmed the businesses he targeted but impacted the safety and costs for anyone who relies on these medications,” said FBI Atlanta Special Agent in Charge Paul Brown. “The FBI will hold anyone accountable who looks to line their own pockets by harming others.”

    According to U.S. Attorney Hertzberg, the charges, and other information presented in court: Between March 2021 and June 2022, Forte and others stole nine shipments of prescription drugs from delivery vehicles parked in front of various pharmacies. Forte, and a co-conspirator, Jaquay Joseph, also stole prescription shipments from a pharmaceutical distribution center in Stone Mountain, Georgia. The pharmaceutical drugs, which included hydrocodone, oxycodone, and morphine among other drugs, had a value of nearly $400,000. When agents searched Forte’s home, they found some of the stolen pharmaceuticals. Additionally, agents recovered a Glock pistol from Forte’s bedroom. As a multi-convicted felon, Forte was prohibited from possessing that gun. 

    On July 2, 2025, Senior U.S. District Judge Thomas W. Thrash, Jr. sentenced Forte to four years, nine months in prison followed by five years of supervised release. Forte was convicted of conspiracy to commit theft, theft of medical products, theft of interstate shipments, drug trafficking conspiracy, possession with intent to distribute controlled substances, and possession of a firearm by a prohibited person, after he pleaded guilty on February 5, 2025.

    This case was investigated by the Federal Bureau of Investigation.

    Assistant United States Attorney Dash A. Cooper prosecuted the case.

    For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6185. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

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  • MIL-OSI Security: California Businessman Pleads Guilty in Federal Court to Orchestrating $14 Million COVID-Relief Fraud

    Source: US FBI

    CHICAGO — A California businessman has pleaded guilty to a federal fraud charge for fraudulently obtaining more than $14 million in small business loans under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.

    DARREN CARLYLE SADLER participated in a scheme to fraudulently apply for loans pursuant to the Paycheck Protection Program (“PPP”), which was created by the CARES Act to provide financial relief for small businesses during the Covid-19 pandemic.  A PPP loan allowed for the interest and principal to be forgiven if businesses spent a certain amount of the proceeds on essential expenses, such as payroll.  Sadler admitted in a plea agreement that in 2020 he submitted and caused the submission of at least 63 PPP loan applications for himself and his clients. The applications falsely represented the number of employees, if any, and the average monthly payroll of the purported businesses.  The false applications resulted in the issuance of more than $14 million in loan funds to Sadler and his clients.  Sadler also received more than $1.9 million in fees from clients for fraudulently obtaining the loans on their behalf.

    Sadler used the fraud proceeds to rent a villa for several months during the pandemic and to travel across the country on private jets to meet clients at bank branches to secure fund transfers. He also purchased luxury vehicles, including a Rolls Royce, multiple Mercedes-Benzes, and a Land Rover, and purchased designer clothing, a luxury watch, and numerous meals at expensive restaurants.

    Sadler, 38, of Costa Mesa, Calif., pleaded guilty on Monday to a federal wire fraud charge, which is punishable by up to 20 years in federal prison.  U.S. District Judge Thomas M. Durkin has not yet set a sentencing date.

    The guilty plea was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The investigation was worked jointly with the U.S. Small Business Administration Office of Inspector General and the U.S. Postal Inspection Service.  The government is represented by Assistant U.S. Attorney Kartik K. Raman.

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  • MIL-OSI Security: Six Defendants Indicted in Federal Investigation Targeting Fentanyl, Heroin, and Cocaine Sales in Chicago

    Source: US FBI

    CHICAGO — A federal investigation into fentanyl, heroin, and cocaine sales in Chicago has resulted in a grand jury returning multiple drug and/or firearm charges against six individuals.

    A superseding indictment returned in U.S. District Court in Chicago accuses the six defendants of conspiring to distribute the drugs in Chicago in 2024.  Two of the defendants are charged with firearm offenses for illegally possessing semiautomatic handguns as previously convicted felons.

    Charged with drug conspiracy are ANDRE DEBRUCE, 40, of Schiller Park, Ill., TERRANCE PATTON, 40, of Chicago, CRAIG CALDWELL, 43, of Chicago, TIMOTHY BELIN, 48, of Chicago, JENNIFER WORD, 39, of Chicago, and DENOMOIUS WELLS, 41, of Chicago.  Patton and Caldwell are the previously convicted felons charged with illegal firearm possession.  Caldwell also faces an additional gun charge for allegedly possessing a firearm in furtherance of drug trafficking.

    The charges against Caldwell carry a maximum sentence of life in federal prison, with a mandatory minimum of five years. Patton and Debruce face maximum sentences of 40 years, with a mandatory minimum of five years.  Belin, Word, and Wells each face up to 20 years, with no mandatory minimum.

    Wells pleaded not guilty to the charges during his arraignment on Tuesday before U.S. Magistrate Judge M. David Weisman.  The five other defendants have also been arraigned and also pleaded not guilty to the charges.

    The superseding indictment was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  Substantial assistance was provided by IRS Criminal Investigation in Chicago, the Chicago Police Department, and the Evanston, Ill. Police Department.  The government is represented by Assistant U.S. Attorneys Hayley Altabef and Adam Rosenbloom.

    The superseding indictment in this case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to protect our communities from the perpetrators of violent crime, among other areas of focus. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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  • MIL-OSI Security: Former Bank President and Contractor Plead Guilty to Federal Charge in Loan Fraud Scheme

    Source: US FBI

    EAST ST. LOUIS, Ill. – A former bank president and contractor appeared in federal court and admitted to committing bank fraud by conspiring together to falsify loan applications and obtain funds.

    Francis Eversman, 74, of Collinsville, and Gregg Crawford, 65, of Columbia, each pleaded guilty to conspiracy to commit bank fraud for their roles in a scheme that extended from 2011 to 2020.

    “The integrity of our banking system relies on the integrity of loan officers and applicants,” said U.S. Attorney Steven D. Weinhoeft. “We will continue to work closely with our law enforcement partners to ensure that those who violate their fiduciary duties and those who obtain loans through fraud are brought to justice.”

    According to court documents, Eversman was a senior loan officer at former Tempo Bank in Trenton. Crawford was the owner of construction companies in southern Illinois. Eversman and Crawford admitted in district court that Crawford recruited straw purchasers to act as nominal loan applicants on what were often highly overvalued properties.

    “Every American citizen deserves to walk into their bank and trust the people behind the counter. In southern Illinois, these people are usually our neighbors and friends, people that we trust with our money and wellbeing. The defendants in this case violated that trust through schemes aimed to self-serve and increase wealth,” said FBI Springfield Assistant Special Agent in Charge Karen Marinos. “FBI Springfield and our partners with the Office of Inspector General – Treasury and the Office of the Comptroller of the Currency will always look out for the wellbeing of the citizens of Illinois and ensure their money is being put in the hands of people they can truly trust.”

    His brother-in-law, Eversman, steered these loans through the approval process. Crawford then used the loan proceeds for other purposes. In some cases, Crawford provided fake lease agreements to purport to show rental income from subject properties. When at audit by the Office of the Comptroller of the Currency discovered the suspect loans, Crawford instructed a straw purchaser to provide investigators with false information. 

    Both Crawford and Eversman waived their right to be indicted by a grand jury and pled guilty to an Information.

    Conspiracy to commit bank fraud carries penalties of up to 30 years in prison, five years of supervised release and fines up to $1 million. Sentencing is scheduled for Oct. 14, 2025.

    The investigation was conducted by the FBI Springfield Field Office, the Office of Inspector General – Treasury Department, and the Office of the Comptroller of the Currency. Assistant U.S. Attorney Kevin Burke is prosecuting the case. 

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  • MIL-OSI Security: Princeton Couple Sentenced to Combined 14 Years in Federal Prison for $2 Million Mail Theft Scheme and Firearms Offenses

    Source: US FBI

    EVANSVILLE- Michael Jerome Wright, 45, and Cortney Lashea Young, 36, of Princeton, Indiana, have been sentenced to 12 and 2 years in federal prison, respectively, for their roles in a mail theft scheme.

    Wright pleaded guilty to mail theft, unlawful possession of a mail key, access device fraud, aggravated identity theft, possession of ammunition by a felon, and possession of a machinegun. Young pleaded guilty to mail theft and possession of a firearm by a felon. Both will serve three years of supervised release following their prison sentence.

    According to court documents, in 2023, law enforcement officials began receiving numerous complaints about mail theft and check forgery.

    In March and April of 2024, Evansville Police Department officers surveilled local United States Postal Service (USPS) collection boxes. On six different occasions, investigators saw Wright open collection boxes with an arrow key around 4:30 in the morning, sort through the mail, then drive off with stolen mail. On at least two of those occasions, investigators saw Young behind the wheel of the getaway car.

    The USPS uses a unique type of lock known as an “arrow lock” to secure collection boxes, lockers, and apartment mailbox panels. These locks can only be opened with an arrow key. It is a crime for anyone not authorized by the Postal Service to knowingly have or use arrow keys.

    On April 3, 2023, law enforcement officers stopped the pair just as they drove away from another mail theft. Officers searched the vehicle and uncovered an arrow key and stolen mail on the passenger floorboard.

    Investigators conducted a court-authorized search of Wright and Young’s apartment in Princeton and located hundreds of checks and their corresponding envelopes, many of which had been previously reported as stolen.  The stolen checks had a total face value of $1,857,460.91.

    Investigators also found two handguns under the mattress in Wright and Young’s bedroom. On Wright’s side of the bed was a partially 3D printed, privately made firearm with no serial number. This type of weapon is commonly referred to as a “ghost gun” because it has no records related to its manufacture or sale. Investigators also recovered two, 30-round extended magazines. The ghost gun had a machinegun conversion device, also called a “Glock switch,” installed, allowing it to fire as a fully automatic weapon. Glock switches are themselves considered machine guns under federal law, whether they are installed in a firearm or not. On Young’s side of the bed was a Ruger pistol.

    Wright has sustained multiple felony convictions including murder, dealing in a synthetic drug, operating a vehicle as a habitual traffic violator, and operating a vehicle while intoxicated. Young has sustained a felony conviction for fraud. These prior felony convictions prohibit Wright and Young from ever legally possessing a firearm or ammunition.

    Also in the bedroom of the apartment, law enforcement found two backpacks. In Wright’s backpack, investigators found 30 debit and credit cards bearing the names of other individuals, as well as a piece of notebook paper that had the names, dates of birth, and Social Security numbers for three other individuals written on it.

    “Americans rely on the U.S. Postal Service to securely deliver everything from birthday cards to critical financial documents,” said John E. Childress, Acting U.S. Attorney for the Southern District of Indiana. “This couple exploited that trust through a widespread mail theft and identity fraud scheme that caused two million dollars in losses, while arming themselves with very dangerous illegal weapons. We will continue to work with our law enforcement partners to hold accountable those who target the public and abuse systems we all depend on.”

    “This case highlights the distinguished partnership between the Indianapolis Field Office, the Evansville Police Department, the United States Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation. The United States Secret Service has a duty to safeguard the nation’s financial infrastructure, but we protect far more than just the economic interest of the communities we serve,” said Special Agent in Charge of the Indianapolis Field Office, Ike Barnes. “This case is a prime example of how those who look to victimize our communities will do so in numerous ways. Michael Wright and Cortney Young not only exploited our community of roughly $1.8 million in illicit funds but also brought dangerous weapons into our neighborhoods to carry out their depraved scheme.”   

    “Protecting the U.S. mail and its customers is at the core of our mission as postal inspectors,” said Acting Inspector in Charge Sean McStravick of USPIS – Detroit Division.  “Thanks to incredible collaborative efforts with our law enforcement partners and the U.S. Attorney’s Office, we were able to do just that by putting these individuals behind bars. This sentencing should be considered a warning to anyone else looking to prey on the Postal Service or its customers – we will bring you to justice.”

    The U.S. Secret Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Postal Inspection Service, and Evansville Police Department investigated this case. The sentences were imposed by U.S. District Judge Matthew P. Brookman.  

    Acting U.S. Attorney Childress thanked Assistant U.S. Attorneys Matthew B. Miller and Todd S. Shellenbarger, who prosecuted this case.

     

    ###

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  • MIL-OSI Security: Inchelium Man Sentenced to 57 Months in Prison for Beating and Strangling His Intimate Partner

    Source: US FBI

    Spokane, Washington – Acting United States Attorney Richard R. Barker announced that Rodney Alan Signor, 49, of Inchelium, Washington, was sentenced after pleading guilty to Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner in Indian Country. United States District Judge Thomas O. Rice imposed a sentence of 57 months in prison to be followed by three years of supervised release.

    According to court documents and information presented at the sentencing hearing, on June 9, 2022, Signor assaulted his intimate partner by striking her and causing her to suffer bruising. In addition to beating his victim, Signor also strangled her, which caused her to lose consciousness. Signor also gagged his victim, wielded a knife toward her, and threatened to kill her.

    “This case raised serious concerns for the victim’s safety, and I’m incredibly proud of the FBI’s swift and decisive response once the crime came to light,” said Acting U.S. Attorney Barker. “Our office remains firmly committed to protecting victims and holding domestic abusers accountable through aggressive prosecution.”

    “Mr. Signor treated his former partner reprehensibly, endangering her safety in multiple violent attacks. We hope this sentence sends a clear message to Mr. Signor and others like him that violent crime will not be tolerated. The FBI is committed to continuing our work to reduce violent crime in tribal communities alongside our tribal partners,” said W. Mike Herrington, Special Agent in Charge of the FBI Seattle field office.

    Compared to all other groups in the United States, Native American women experience some of the highest rates of domestic violence. Particularly pervasive among violent crime is nonfatal strangulation by intimate partners. Nearly half of domestic violence victims report being choked. Although nonfatal strangulation often leaves few visible signs of injury, it can cause severe physical, neurological, and psychological complications and too often forebodes future domestic homicide. A woman who has been nonfatally strangled is over seven times more likely to be killed by the same intimate partner. The recent increased focus on the dangers of nonfatal strangulation confirms what survivors of it have known for years—that many domestic violence perpetrators do not strangle their intimate partners to kill them; they strangle them to let them know they can kill them any time they wish.

    This case was investigated by the FBI and the Colville Tribal Police Department. It was prosecuted by Special Assistant United States Attorney Michael L. Vander Giessen and Assistant United States Attorney Nowles H. Heinrich.

    2:23-cr-00145-TOR

    MIL Security OSI –

  • MIL-OSI Security: Inchelium Man Sentenced to 57 Months in Prison for Beating and Strangling His Intimate Partner

    Source: US FBI

    Spokane, Washington – Acting United States Attorney Richard R. Barker announced that Rodney Alan Signor, 49, of Inchelium, Washington, was sentenced after pleading guilty to Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner in Indian Country. United States District Judge Thomas O. Rice imposed a sentence of 57 months in prison to be followed by three years of supervised release.

    According to court documents and information presented at the sentencing hearing, on June 9, 2022, Signor assaulted his intimate partner by striking her and causing her to suffer bruising. In addition to beating his victim, Signor also strangled her, which caused her to lose consciousness. Signor also gagged his victim, wielded a knife toward her, and threatened to kill her.

    “This case raised serious concerns for the victim’s safety, and I’m incredibly proud of the FBI’s swift and decisive response once the crime came to light,” said Acting U.S. Attorney Barker. “Our office remains firmly committed to protecting victims and holding domestic abusers accountable through aggressive prosecution.”

    “Mr. Signor treated his former partner reprehensibly, endangering her safety in multiple violent attacks. We hope this sentence sends a clear message to Mr. Signor and others like him that violent crime will not be tolerated. The FBI is committed to continuing our work to reduce violent crime in tribal communities alongside our tribal partners,” said W. Mike Herrington, Special Agent in Charge of the FBI Seattle field office.

    Compared to all other groups in the United States, Native American women experience some of the highest rates of domestic violence. Particularly pervasive among violent crime is nonfatal strangulation by intimate partners. Nearly half of domestic violence victims report being choked. Although nonfatal strangulation often leaves few visible signs of injury, it can cause severe physical, neurological, and psychological complications and too often forebodes future domestic homicide. A woman who has been nonfatally strangled is over seven times more likely to be killed by the same intimate partner. The recent increased focus on the dangers of nonfatal strangulation confirms what survivors of it have known for years—that many domestic violence perpetrators do not strangle their intimate partners to kill them; they strangle them to let them know they can kill them any time they wish.

    This case was investigated by the FBI and the Colville Tribal Police Department. It was prosecuted by Special Assistant United States Attorney Michael L. Vander Giessen and Assistant United States Attorney Nowles H. Heinrich.

    2:23-cr-00145-TOR

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  • MIL-OSI Security: Two California Residents Plead Guilty in Connection with $16M Hospice Fraud Scheme and Money Laundering Scheme

    Source: United States Attorneys General

    Two California residents pleaded guilty yesterday in connection with their roles in defrauding Medicare of nearly $16 million through sham hospice companies and to laundering the proceeds of the fraud as part of a multi-year scheme.

    According to court documents, Karpis Srapyan, 35, of Winnetka, California, conspired with others, including co-defendants Petros Fichidzhyan and Juan Carlos Esparza, to bill Medicare for hospice services that were not medically necessary and never provided. To conduct their fraudulent scheme, they used a series of four sham hospice companies: one owned by Esparza and the other three owned by foreign nationals but controlled by the defendants. Srapyan and his co-defendants concealed the scheme by using foreign nationals’ personal identifying information to open bank accounts, submit information to Medicare, and sign property leases. They also misappropriated names and other identifying information of several doctors, two of whom were deceased, to fraudulently bill Medicare for purported hospice services. In total, Medicare paid the fake hospice companies nearly $16 million.

    Fichidzhyan, Esparza, and Srapyan worked with others to launder the fraudulent proceeds from their hospice scheme. Susanna Harutyunyan, 39, of Winnetka, was aware that her husband and co-defendant Mihran Panosyan was involved in illegal activity with Srapyan and Fichidzhyan. As part of the money laundering scheme, Harutyunyan and her co-defendants maintained fraudulent identification documents, bank documents, checkbooks, and credit and debit cards in the names of purported foreign owners in the residence where she and Panosyan lived and another residence that was owned in her name. Srapyan conducted dozens of financial transactions, totaling approximately $3.2 million, moving funds between accounts in the names of the sham hospice companies, accounts in the names of foreign nationals that were controlled by the defendants, and other accounts involved in the money laundering scheme. Harutyunyan knowingly spent fraudulent proceeds on personal expenses, including payments for a BMW automobile.

    Srapyan pleaded guilty to conspiracy to commit health care fraud and money laundering and is scheduled to be sentenced on Oct. 6. He faces a maximum penalty of 20 years in prison. Harutyunyan pleaded guilty to money laundering and is scheduled to be sentenced on Nov. 17; she faces a maximum penalty of 10 years in prison. A federal district court judge will determine their sentences after considering the U.S. Sentencing Guidelines and other statutory factors. Harutyunyan faces deportation.

    Co-defendant Petros Fichidzhyan previously pleaded guilty to health care fraud, aggravated identity theft, and money laundering. In May, Fichidzhyan was sentenced to 12 years in prison. Co-defendant Mihran Panosyan pleaded guilty to money laundering in June and is scheduled to be sentenced Sept. 8. Co-defendant Juan Carlos Esparza’s change of plea hearing is scheduled for July 14.

    The guilty pleas today are the most recent convictions in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area. Last year, a doctor was convicted at trial for his role in a scheme to bill Medicare for hospice services patients did not need, and two other defendants were sentenced for their roles in a hospice fraud scheme.  

    Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.

    The FBI and HHS-OIG are investigating the case.

    Trial Attorneys Michael Bacharach, Sarah E. Edwards, and Allison L. McGuire of the Criminal Division’s Fraud Section are prosecuting the case, and Assistant U.S. Attorney Tara B. Vavere for the Central District of California is handling asset forfeiture.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

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  • MIL-OSI Security: Group convicted after Russian-ordered arson attack in London

    Source: United Kingdom London Metropolitan Police

    Five men have been convicted for their involvement in a Russian-ordered arson attack on a London warehouse full of supplies destined for Ukraine.

    Approximately £1 million of damage was caused after two units in an industrial estate in Leyton were deliberately set alight on 20 March last year.

    An investigation led by the Met’s Counter Terrorism Command found that Dylan Earl, aged 21, established contact with the Wagner Group, a private military organisation that acts on behalf of the Russian state, in 2023.

    Earl then recruited a group of men to set fire to the Leyton warehouse and organised surveillance of two businesses in Mayfair in preparation for further arson attacks.

    Commander Dominic Murphy, head of the Met’s Counter Terrorism Command, said; “This case is clear example of an organisation linked to the Russian state using ‘proxies’ – in this case British men – to carry out very serious criminal activity in this country on their behalf.

    “The ringleaders – Earl and Reeves – willingly acted as hostile agents on behalf of the Russian state. I am pleased that, working closely with the Crown Prosecution Service, we were able to use the new National Security Act legislation, which meant the severity of Earl and Reeves’s offending was reflected in the charges they faced.

    “The warehouse arson put members of the public at great risk, and it was only by good fortune nobody was seriously injured or worse. Those involved showed little or no regard for the potential impact of their actions on the UK’s wider security. Seemingly motivated by the promise of money, they were prepared to commit criminal acts on behalf of Russia.

    “I hope these convictions send a strong warning of the very serious consequences of committing offences on behalf of a foreign country.”

    The businesses based in the warehouses damaged by the arson were both Ukrainian-owned.

    The fire was initially investigated by local Met officers in Waltham Forest. However, after officers became aware that another warehouse belonging to the same Ukrainian company was also subject to an arson attack in Madrid, Spain, detectives from the Met’s Counter Terrorism Command took over the investigation.

    Met counter terrorism detectives then worked quickly to identify the individuals involved, which led them to suspect that Earl was the architect of the plot.

    Earl was the first to be arrested in a B&Q car park in Hinckley, Leicestershire, on 10 April 2024. Analysis of his mobile phone revealed his contact with the Wagner Group on Telegram, via an account with the usernames ‘Privet Bot’ and ‘Lucky Strike’.

    In total, detectives extracted 56GB of data from Earl’s phone including, 5702 instant messages, 1244 e-mails, 51528 images, 3629 videos, 183 documents and 4840 social media files; some of the content required translation from Russian.

    The swift investigation was crucial in preventing Earl and others from carrying out further arson attacks at two premises in Mayfair – evidence of which was found by officers following his arrest. Messages recovered from Earl’s phone showed that reconnaissance had already been carried out and discussions were ongoing about the use of explosives to damage buildings.

    Detectives found that Earl was also raising the possibility of kidnapping the owner of the business, a Russian dissident, and “exiling him back to Russia to face prison.”

    Analysis of Earl’s Telegram messages showed the first person he recruited for the warehouse arson plot was Jake Reeves, who then recruited his friend Kojo Mensah to carry out the arson. In turn, Mensah recruited his friend Jakeem Rose. Ugnius Asmena was also recruited to take part.

    The investigation team established that three men – Mensah, Rose and Asmena met up on the evening of 20 March 2024 and travelled in a red Kia Picanto to the scene of the arson. Officers found evidence that Mensah filmed the warehouse being set alight and livestreamed it on Face Time to Earl and Reeves.

    Dmitrijus Paulauskas, a friend of Reeves, and Ashton Evans, who helped Earl supply drugs, were also charged as part of the investigation as social media messages allegedly showed they were both aware of the arson attack and the planned offences in Mayfair.

    On 8 July Mensah , 23 (03.06.02) from Thornton Heath, Rose 23 (24.05.02), of Croydon and Asmena, 21 (31.12.04) of no fixed address, were convicted of aggravated arson.

    Paul English 61 (02.10.63) from Roehampton was found not guilty of the same charge.

    Paulauskas 23 (02.01.02), of Croydon was found not guilty of two counts of failing to disclose information about terrorist acts.

    Evans 20 (11.01.2005) of Newport. Evans was found not guilty of the first count (relating to the Leyton arson) but guilty of the second count related to the plot to damage businesses in Mayfair.

    Rose previously pleaded guilty to having a bladed article in a public place (in relation to a knife he left at the scene of the arson in Leyton). Evans also previously pleaded guilty to possession with intent to supply Class A drugs.

    Earl 21 (17.02.04) of Elmesthorpe, Leicester, pleaded guilty to preparatory conduct, contrary to section 18 of the National Security Act (NSA) 2023, aggravated arson, possession with intent to supply Class A drugs and possession of criminal property.

    Reeves, 23 (20.10.01), of Croydon pleaded guilty to agreeing to accept a material benefit from a foreign intelligence service, contrary to section 17(2) and (11), NSA 2023, and aggravated arson.

    Earl and Reeves are the first people to be convicted of offences under the National Security Act, which came into legislation at the end of 2023.

    All the defendants will be sentenced at the Old Bailey at a later date.

    All the material is available to download here

    https://mps.box.com/s/xfydvnz3dfddzsqyi7mntuzen88u17z7

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