NewzIntel.com

Category: Transport

  • MIL-OSI Security: High-Ranking Member of Sinaloa Cartel Indicted on Drug Conspiracy Charge

    Source: US FBI

    SAN DIEGO — A federal grand jury in Chicago indicted a high-ranking member of the Sinaloa Cartel for allegedly manufacturing cocaine, fentanyl, and other drugs in Mexico and importing them into the United States.

    According to an indictment returned Monday in the Northern District of Illinois, Jose Angel Canobbio Inzunza, 44, served as a principal advisor, lieutenant, and security chief for Ivan Archivaldo Guzman Salazar. Ivan Archivaldo Guzman Salazar, along with his three brothers, allegedly led a faction of the Sinaloa Cartel in Mexico after the arrest and imprisonment of their father, Joaquin Guzman Loera. The indictment alleges Canobbio Inzunza conspired with the brothers — who are known as the “Chapitos” — and others to manufacture cocaine, fentanyl, methamphetamine, and marijuana in Mexico and import the drugs into the United States for further distribution. The indictment states that Canobbio Inzunza financed and led an armed security group known as “Los Chimales,” which provided security for the Guzman faction of the Sinaloa Cartel and engaged in armed conflict to assist the Chapitos in importing drugs into the United States. The Chapitos have been charged in other indictments in the United States within the last year.

    Canobbio Inzunza is charged with conspiracy to manufacture and distribute controlled substances for unlawful importation into the United States and to import controlled substances into the United States. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Canobbio Inzunza is believed to be currently residing in Mexico and a U.S. warrant has been issued for his arrest.

    Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, U.S. Attorney Tara K. McGrath for the Southern District of California, Assistant Director in Charge David Sundberg of the FBI Washington Field Office, Special Agent in Charge Stacey Moy of the FBI San Diego Field Office and Special Agent in Charge Francisco B. Burrola of Homeland Security Investigations (HSI) Arizona made the announcement.

    The FBI and HSI are investigating the case.

    Trial Attorney Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section, Assistant U.S. Attorneys Andrew Erskine and Michelle Parthum for the Northern District of Illinois and Assistant U.S. Attorney Matthew Sutton for the Southern District of California are prosecuting the case.

    The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies.

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

    MIL Security OSI –

  • MIL-OSI Security: Distributor of ANOM Hardened Encrypted Devices Sentenced to 63 Months in Prison for Racketeering Conspiracy

    Source: US FBI

    SAN DIEGO – Osemah Elhassen of Sydney, Australia, was sentenced in federal court today to 63 months in prison for participating in a worldwide conspiracy to distribute hardened encrypted communication devices to criminal syndicates to facilitate drug trafficking and other crimes.

    Elhassen was one of 17 defendants indicted in San Diego in 2021 in connection with Operation Trojan Shield, an international law enforcement effort in which the FBI secretly operated an encrypted messaging network used by criminals, leading to the arrests of hundreds worldwide.

    According to court records, the platform was known as ANOM. While ANOM’s criminal users unknowingly communicated on the system operated by the FBI, agents catalogued more than 27 million messages between users around the world whose criminal discussions were covertly obtained and reviewed by the FBI. The platform was taken down in June 2021. Please see Operation Trojan Shield in 2021.

    Elhassen pleaded guilty in May 2024 to Count 1 of a superseding indictment charging him and the others with a racketeering conspiracy in connection with the ANOM enterprise. A citizen of Australia, Elhassen was a Colombia-based distributor of ANOM devices who was also directly involved in drug trafficking and money laundering.

    Elhassen admitted that around November 2019, he became a member of the ANOM enterprise. According to his plea agreement, he admitted to helping accomplish the illegal objectives of that enterprise, including drug trafficking, money laundering, and obstruction of justice offenses. To that end, Elhassen distributed ANOM devices to criminal end-users for over a year and a half, and in doing so, facilitated the importation, exportation, and distribution of at least 15 kilograms of cocaine and the laundering of proceeds from the enterprise’s illegal activities.

    According to the government’s sentencing filings, Elhassen’s ANOM messages show significant distribution of ANOM devices in Colombia and other places. His messages also show that Elhassen participated in providing ANOM device support and arranging subscription renewals, among other sales and price-setting activity.

    Elhassen was arrested in Colombia in June 2021 and was extradited to the Southern District of California in May 2023. He pleaded guilty in May 2024.

    “Despite use of sophisticated technology and extreme measures to conceal the criminal enterprise, Mr. Elhassen could not thwart federal investigators,” said U.S. Attorney Tara McGrath. “The sentence today demonstrates that even those who go to the greatest lengths to hide will be held to account.”

    “Evidence collected during Operation Trojan Shield showed that distributors of ANOM devices, like Mr. Elhassen, were not merely providing a messaging service but enabling and facilitating Transnational Criminal Organizations,” said FBI San Diego Special Agent in Charge, Stacey Moy. “Today’s sentence should send a strong message to the users and distributors of these types of devices. The FBI will continue to collaborate with domestic and international partners on new and innovative strategies to combat the ever-evolving threat posed by transnational criminal organizations.”

    This case is being prosecuted by Assistant U.S. Attorneys Joshua C. Mellor, Mikaela L. Weber, and Peter S. Horn. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché Office in Bogota provided significant assistance in securing the arrest and extradition of Elhassen. The United States also thanks Colombian law enforcement authorities for their valuable assistance.

    Three other defendants in this case have pleaded guilty, including Dragan Nikitovic, aka Dr. Djek; Edwin Harmendra Kumar, aka Edwin Harmendra Valentine; and Miwand Zakhimi, aka Maiwand Zakhimi. They are scheduled to be sentenced in December 2024 and January 2025. A trial for four other defendants is scheduled for March 10, 2025. Eight other defendants in the case are yet to be extradited to the United States, and one is a fugitive.

    For further information on investigations and prosecutions of encrypted communication providers, see https://www.justice.gov/usao-sdca/pr/fbi-s-encrypted-phone-platform-infiltrated-hundreds-criminal-syndicates-result-massive (ANOM), https://www.justice.gov/usao-sdca/pr/sky-global-executive-and-associate-indicted-providing-encrypted-communication-devices (Sky Global), and https://www.justice.gov/usao-sdca/pr/chief-executive-communications-company-sentenced-prison-providing-encryption-services (Phantom Secure).

    Operation Trojan Shield 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.

    DEFENDANT                                               Case Number 21cr1623-JLS-17                                   

    Osemah Elhassen                                            Age: 51                                   Sydney, Australia

    SUMMARY OF CHARGES

    Count 1:  Racketeering Conspiracy – Title 18, U.S.C., Section 1962(d)

    Maximum penalty: Twenty years in prison, and fine of up to $250,000 or twice the gain or loss

    INVESTIGATING AGENCIES

    Federal Bureau of Investigation

    Drug Enforcement Administration

    United States Marshals Service

    Department of Justice, Office of International Affairs

    Australian Federal Police

    Swedish Police Authority

    Lithuanian Criminal Police Bureau

    National Police of the Netherlands

    EUROPOL                                                          

    MIL Security OSI –

  • MIL-OSI Security: Brentwood Man Arrested on Charges of Possession of 3D-Printed Machine Gun Conversion Device

    Source: US FBI

    OAKLAND – A Brentwood man has been charged with unlawful possession of a machine gun conversion device.  Noah Kanaye Bauer, 21, was arrested yesterday and made his initial appearance in federal district court in Oakland this morning.

    According to the criminal complaint and court documents unsealed today, on Sept. 6, 2024, officers with the Brentwood Police Department (BPD) responded to a call regarding an individual with a firearm at a grocery store in Brentwood and found Bauer with a 3D printed Glock style firearm.  Officers allegedly removed the firearm from the front of Bauer’s waistband and saw that there was no serial number on it.  In a search of Bauer’s home after his arrest for carrying a concealed weapon, BPD officers found a 3D printing machine, three 3D printed pistol frames, and a 3D printed machine gun conversion device in Bauer’s room.

    The complaint describes that machine gun conversion devices, also known as “switches” or “auto sears,” are designed and created for the purpose of converting a semi-automatic Glock type pistol into a fully automatic machine gun.  When BPD officers questioned Bauer on what the conversion devices were used for, Bauer allegedly stated, “to make it shoot faster.”

    Bauer is next scheduled to appear in court on March 17, 2025, for a detention hearing before U.S. Magistrate Judge Kandis A. Westmore.

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

    Bauer is charged with one count of 18 U.S.C. § 922(o).  A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 10 years in prison and a fine of $250,000.  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

    The National Security and Special Prosecutions Section of the U.S. Attorney’s Office is prosecuting this case. The prosecution is the result of an investigation by the FBI with assistance from the BPD and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

    Noah Kanaye Bauer Complaint
     

    MIL Security OSI –

  • MIL-OSI Security: FBI Warns of Fraudulent Federal Warrants in Wyoming

    Source: US FBI

    The FBI is warning of a scam in which people are presented with a fraudulent federal warrant and asked to pay fines to clear it up.

    In a recent case in Wyoming, the targeted victim received a copy of a warrant via text message, saying there was a warrant for her arrest because she failed to appear as a prospective juror.

    The warrant on the face appears to be a legitimate document, with a case number, date stamp, seal of the United States District Court for Wyoming and a judge’s signature. But this is a scam.

    A federal officer will serve a federal warrant in person, or you might receive it by certified mail. You will NEVER receive a copy of a federal warrant via regular U.S. mail, and especially not via email or via text.

    One victim in Wyoming followed instructions received via the scam text and lost more than $10,000.

    The FBI reminds the public to be vigilant and never share personal identifying information with a caller with whom you have not initiated contact or have not verified as legitimate. To check out someone who purports to be from the FBI, find the phone number of the local FBI field office and call that number directly. The field office will verify any legitimate contact.

    You can do the same with other federal law enforcement agencies.

    If you have questions about the validity of an arrest warrant, call the clerk of court for the court identified on the warrant. They can verify if the warrant is legitimate.

    Also know that no government agency at any level will ask you to pay in gift cards, gold, or cryptocurrency.

    If you think you have been a victim of this scam, report it at 1-800-CALL-FBI or tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI Security: Registered Sex Offender Charged with Sex Trafficking Children by Force

    Source: US FBI

    WASHINGTON – Linwood Barnhill, 59, a registered sex offender living in the District of Columbia, was arrested on May 1, 2025, and federally charged with sex trafficking children by force and related counts. The alleged offenses occurred between April 1, 2024, and April 29, 2025.

    The criminal complaint was announced today by U.S. Attorney Edward R. Martin Jr., FBI Special Agent in Chief Sean Ryan of the Washington Field Office Criminal and Cyber Division, and Chief Pamela Smith of the Metropolitan Police Department (MPD).

    Barnhill, a former officer with the Metropolitan Police Department, is charged with sex trafficking by force, fraud, or coercion; sex trafficking of children; coercion and enticement; transportation with intent to engage in criminal sexual activity; and interstate travel or transportation in aid of racketeering enterprises. According to the complaint, the defendant allegedly recruited a series of minor children to engage in commercial sex acts and financially profited from those commercial sex acts.

    This case is being investigated by FBI’s Child Exploitation and Human Trafficking Task Force. It is being prosecuted by Assistant U.S. Attorney Caroline Burrell.

    This case was brought as part of the Department of Justice’s Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

    MIL Security OSI –

  • MIL-OSI Security: Las Vegas Man Indicted for Cyberstalking Via Social Media

    Source: US FBI

    LAS VEGAS – A Las Vegas resident made his initial appearance Tuesday for allegedly sending thousands of messages, including threatening messages, via Instagram to two employees of the University of Texas at Austin.

    According to allegations contained in the indictment, beginning on or about June 6, 2024 to September 16, 2024, Brian Patrick Solomon, 38, sent direct messages threatening to injure two high level employees of the school. In May and June of 2024, Solomon requested a total of $450 via CashApp from a victim. A records check of Solomon revealed that on July 26, 2023, he was arrested in Austin for burglary of vehicle and criminal mischief; and on February 27, 2024,

    Solomon was arrested in Nevada for stalking. As a result, a protection order was entered against Solomon. In July 2024, one victim attended the ESPYs and was scheduled for a speaking engagement. Solomon communicated to the victim that he had purchased a ticket for the event. While the event revoked his ticket due to safety concerns, the victim paid out of pocket to hire security.

    On September 16, 2024, the FBI arrested Solomon. After he was advised of his Miranda rights, Solomon admitted that he used multiple Instagram accounts to send a few thousand direct messages to the victim and that he had become angry with her. Additionally, Solomon admitted he had requested money from the victim to travel to the victim, and he had previously traveled via airplane to Austin.

    A jury trial has been scheduled for December 17, 2024, before United States District Judge Jennifer A. Dorsey. Solomon is charged with one count of interstate communications with threat to injure and one count of cyberstalking. If convicted, he faces the maximum statutory penalty of five years in prison.

    United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Division made the announcement.

    This case was investigated by the FBI with assistance from the University of Texas Police Department. Assistant United States Attorney Courtney Strange is prosecuting the case.

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

    ###

     

    MIL Security OSI –

  • MIL-OSI Security: Alabama Man Convicted of Assaulting Law Enforcement and Other Charges During January 6 Capitol Breach

    Source: US FBI

                WASHINGTON – An Alabama man was convicted on May 10, 2024, of multiple felony and misdemeanor offenses, including assaulting law enforcement during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

                Bryan Shawn Smith, 37, of Huntsville, Alabama, was found guilty of civil disorder and assaulting, resisting, or impeding certain officers, both felony offenses, following a bench trial before U.S. District Judge Randolph D. Moss.

                In addition to the felonies, Judge Moss found Smith guilty of four misdemeanor offenses, including entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, engaging in physical violence in a restricted building or grounds, and act of physical violence in the Capitol grounds or buildings.

                Judge Moss will sentence Smith on Aug. 20, 2024.

                According to court documents and evidence presented during the trial, Smith was present on the Lower West Terrace of the Capitol building on Jan. 6, 2021, and was captured on police body-worn camera footage at approximately 2:10 p.m. confronting officers at a security barricade in this area. As rioters breached the security barricades on the Lower West Terrace, a group of officers fell back behind a door underneath the inaugural stage scaffolding. About 45 seconds later, the door was opened, and Smith held the door open and refused an officer’s command to step away from the doorway to allow the officer to close it.

                Evidence at trial showed that Smith later made his way to the Lower West Terrace Tunnel, the site of some of the most violent attacks against law enforcement on January 6th. As he entered the Tunnel, Smith carried a stun gun. At approximately 2:53 p.m., Capitol building surveillance footage captured Smith spark the stun gun and pass it to another rioter in the Tunnel. Within approximately one minute, the stun gun was passed from the rioter who received it from Smith to another rioter and then to yet another rioter.

                Court documents say that Smith then exited the Tunnel quickly after passing off the stun gun and pumped his fist in an apparent effort to inspire others in the large crowd to press into the Tunnel and continue the riot. A rioter who later received the stun gun, Vitali Gossjankowski, later exited the Tunnel and used the stun gun in at least one attempt to assault an officer who was already under assault by other rioters.

                Smith entered the Tunnel a third time at approximately 3:16 p.m. and made his way to the front of the mob in the Tunnel. Inside the Tunnel, Smith joined a group of rioters violently pushing against the police line in an attempt to breach the Capitol. Here, Smith witnessed rioters physically assault police and helped push other rioters into the police line.

                The FBI arrested Smith on Dec. 4, 2022, in Huntsville.

                The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section prosecuted this case. The U.S. Attorney’s Office for the Northern District of Alabama provided valuable assistance.

                The FBI’s Birmingham and Washington Field Offices investigated this case. The United States Capitol Police and the Metropolitan Police Department provided valuable assistance.

                In the 40 months since Jan. 6, 2021, more than 1,424 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 500 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

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

    MIL Security OSI –

  • MIL-OSI Security: Former Federal Bureau of Prisons Corrections Officer Sentenced for Sexually Abusing Inmate in His Custody

    Source: US FBI

    BIRMINGHAM, Ala. – A former Federal Bureau of Prisons (FBOP) Corrections Officer, Robert D. Smith, 39, was sentenced today in federal court to 24 months in prison, followed by 15 years of supervised release, for sexually abusing an inmate while he was a corrections officer at the Federal Correctional Institution, in Aliceville, Alabama (FCI-Aliceville).

    Smith previously pleaded guilty to sexually abusing a ward on Jan. 11.

    “Robert Smith’s egregious acts have no place in the Federal Bureau of Prisons, and he has been held to account for abusing of his position of trust,” said Deputy Attorney General Lisa Monaco. “Today sentence marks the latest effort in the Justice Department’s ongoing efforts to root out sexual misconduct within the Federal Bureau of Prisons. The Department will continue our efforts to hold accountable employees who fail to uphold their oath to protect those in their care.”

    “Beyond the view of the cameras and the eyes of potential witnesses, this defendant sexually abused and assaulted vulnerable women inmates and thought he would get away with his crimes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This case should send an unequivocal message to officials working in correctional settings that we have zero tolerance for sexual assaults of women held inside jails and prisons. We encourage the survivors of these heinous crimes to report acts of official misconduct and violence to the FBI. The Justice Department will continue to aggressively prosecute those who violate the civil and constitutional rights of people detained in correctional facilities.”

    “Corrections officers have the responsibility to ensure the safety and security of those incarcerated in our nation’s prisons,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “We will continue to work with our law enforcement partners to investigate and prosecute corrections officers who abuse inmates and violate positions of public trust.”

    “Today’s sentencing holds Smith accountable for the serious crimes he committed,” said Justice Department Inspector General Michael E. Horowitz. “Smith sexually abused multiple inmates and he did so by taking them to areas of the prison without camera coverage. As the OIG has repeatedly found, the effective use of cameras by the FBOP is critical to preventing and deterring such criminal wrongdoing at its facilities.”

    According to court documents and evidence presented at the sentencing hearing, Smith worked as a corrections officer at FCI-Aliceville, which is a low-security federal prison. As part of his duties, Smith was to ensure the safety and security of inmates housed at FCI-Aliceville and to uphold the U.S. Constitution.

    While acting in his capacity as an officer, in or around February 2019, Smith knowingly engaged in a sexual act with a female inmate in official detention, who was under Smith’s custodial, supervisory or disciplinary authority. Smith committed this criminal act when he and his victim were in his office in the facilities department, which was away from cameras and other inmates and officers.

    Smith also admitted to sexually abusing another inmate on a different occasion. Specifically, also while acting in his capacity as an officer, between on or about July 6, 2018, and Nov. 15, 2018, Smith knowingly engaged in a sexual act with a female inmate in official detention, who was under Smith’s custodial, supervisory or disciplinary authority. Smith committed this criminal act in the mechanical room, which Smith accessed with a key, and which was also away from cameras and other inmates and officers.

    DOJ-OIG investigated the case.

    Assistant U.S. Attorney Michael Royster for the Northern District of Alabama and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section prosecuted the case.

    FBOP is committed to rooting out misconduct within its ranks and working with law enforcement partners to prosecute violations of federal law. The numerous FBOP employees working diligently to ensure justice for the victims of misconduct are critical to the department’s reform efforts.

    MIL Security OSI –

  • MIL-OSI Security: Owner of Marketing Companies and DME Company Convicted for Role in $100 Million Scheme to Defraud Medicare and Other Insurers and to Violate the Anti-Kickback Statute

    Source: US FBI

    NEWARK, N.J.  A Florida man was convicted by a federal jury for his role in a durable medical equipment (DME) kickback scheme that caused millions of dollars in losses to Medicare and other insurance providers, United States Attorney John Giordano announced.

    Following a month-long jury trial before U.S. District Judge Michael E. Farbiarz, Raheel Naviwala, 36, of Coral Springs, Florida, was convicted on Feb. 28, 2025, of conspiracy to commit health care fraud and wire fraud, one count of health care fraud, conspiracy to violate the Anti-Kickback Statute, and three counts of violating the Anti-Kickback Statute. He was also acquitted of two counts of health care fraud.

    “This Office is committed to prosecuting those like the defendant who seek to profit by defrauding and corrupting our nation’s medical systems,” United States Attorney John Giordano said. “When people siphon millions from Medicare to line their own pockets, regular citizens pay the price. This case demonstrates that serious consequences will follow for such conduct.”

    “The scheme Naviwala and his co-conspirators created to steal money from the government was complex and expansive,” FBI Acting Special Agent in Charge Terence G. Reilly said. “However, FBI Newark and our law enforcement partners have the expertise and grit to dig through mountains of data and find the fraudsters. We want this case to serve as a warning to anyone hoping to capitalize on hiding under the red tape – we are still here, and you will eventually get caught.”

    “The defendant convicted in this case prioritized greed over the provision of appropriate health care services to patients, bilking the federal government for medically unnecessary durable medical equipment,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to ensure the integrity of the federal health care system and hold accountable owners and providers engaging in fraud that targets its programs.”

    “Investigating corrupt schemes that undermine the integrity of TRICARE, the healthcare system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Mr. Naviwala’s illegal schemes put the TRICARE program and its beneficiaries at risk. We are committed to working with our partner agencies and the Department of Justice to pursue those individuals who selfishly place personal gain over the safety and care of TRICARE beneficiaries.”

    “Schemes such as these compromise the integrity of VA’s programs and services and divert funds from our nation’s deserving veterans,” said Special Agent in Charge Christopher F. Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG will continue to work with our law enforcement partners to root out fraudsters and hold them accountable.”

    According to the evidence at trial:

    Naviwala and his coconspirators purchased lists of Medicare patients’ names, addresses, and phone numbers, and hired telemarketers to convince the patients to get DME (orthotic braces). These telemarketers pre-filled prescriptions and picked the highest-paying braces to bill to insurers. Naviwala then paid telemedicine doctors to sign the pre-filled prescriptions for braces, regardless of whether the patients needed or wanted braces. Generally, the telemedicine doctor did not even speak to the patients before signing the pre-filled prescriptions.

    Naviwala then sold the signed prescriptions to DME supply companies that could bill Medicare, TRICARE, and other insurers for the braces. To conceal the fraud, Naviwala and his coconspirators signed sham contracts and used sham invoices that falsely represented that Naviwala was billing DME supply companies for marketing or consulting.

    Naviwala also owned and operated a DME supply company that was used to bill Medicare, and which submitted claims to Medicare for up to nine braces for a single patient.

    To further conceal his illegal conduct, Naviwala put multiple of his businesses in the names of nominee owners. The nominee owners generally performed no legitimate work for any company and were paid to hide Naviwala’s involvement.

    Medicare and other insurers paid hundreds of millions of dollars to members of the conspiracy and paid at least approximately $100 million for DME associated with Naviwala’s companies. Naviwala personally pocketed more than $10 million in fraud proceeds.

    Conspiracy to commit health care fraud and wire fraud is punishable by a maximum potential penalty of 20 years in prison. Health care fraud is punishable by a maximum potential penalty of 10 years in prison. Conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. Each count of illegal kickbacks is punishable by a maximum potential penalty of 10 years in prison. Each count is also punishable by a fine. Sentencing is scheduled for 10 a.m. on July 29, 2025, before Judge Farbiarz in Newark.

    United States Attorney John Giordano credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; HHS-OIG, under the direction of Special Agent in Charge Naomi Gruchacz; DCIS, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the conviction.

    The government is represented by Assistant U.S. Attorneys Elaine K. Lou, Deputy Chief of the Criminal Division, Matthew Specht of the Special Prosecutions Division, and Aaron L. Webman of the Economic Crimes Unit in Newark.

                                                               ###

    Defense counsel:

    Jamie Hoxie Solano, Esq. New York, New York

    Amy C. Brown, Esq. New York, New York

    Bryan W. McCracken, Esq. New York, New York

    Ifedapo Benjamin, Esq. New York, New York

    MIL Security OSI –

  • MIL-OSI Security: Man Arraigned in Federal Court on Multiple Charges of Sexual Exploitation of Children

    Source: US FBI

    HUNTSVILLE, Ala. – A Lawrence County man was arraigned in federal court last week on multiple child sexual exploitation charges, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton Peeples.

    A 13-count indictment filed in U.S. District Court charges David Edward Collier, 46, with four counts of sexual exploitation of children, eight counts of transportation of child pornography, and one count of possession of child pornography.

    According to the indictment, between January 2017 and August 2022, Collier used, induced, or coerced minor children to engage in sexually explicit conduct for the purpose of producing any visual depiction of that conduct.  Between October 2022 and September 2023, Collier transported the child pornography.  Collier was also charged with possession of child pornography.  

    FBI North Alabama Violent Crime Task Force and Cybercrime Squad investigated the case along with the assistance of the Lawrence County Sheriff’s Office, Moulton Police Department, Madison County Sheriff’s Office, Huntsville Police Department, and Limestone County Sheriff’s Office. Assistant United States Attorney R. Leann White is prosecuting the case.

    The U.S. Attorney’s Office (USAO) and the National Children’s Advocacy Center (NCAC) have partnered and released a digital series to educate parents and caretakers about sextortion and how they can help prevent kids and teens from being victims. This series offers three-to-five-minute videos about current online safety topics and provides essential information about the true dangers of online activities.

    The videos can be accessed from the following locations:

    nationalcac.org/sextortion-prevention/

    https://www.youtube.com/@nationalcac

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

    MIL Security OSI –

  • MIL-OSI Security: Two Individuals Plead Guilty to Health Care Fraud Conspiracy

    Source: US FBI

    HUNTSVILLE, Ala. – A former doctor and her wife pleaded guilty today to crimes involving the medical practice they ran in north Alabama for many years.  United States Attorney Prim Escalona, FBI Special Agent in Charge Carlton Peeples, Drug Enforcement Administration Special Agent in Charge Steven L. Hofer, and Special Agent in Charge Tamela Miles of the Department of Health and Human Service Office of the Inspector General Atlanta Region made the announcement.

    Francene Aretha Gayle, 50, of Apopka, Florida, pleaded guilty before U.S. District. Judge Liles Burke to five counts of unlawful drug distribution, one count of health care fraud conspiracy, and one count of wire fraud conspiracy. Gayle’s wife, Schara Monique Davis, 48, also of Apopka, pleaded guilty to one count of health care fraud conspiracy and one count of wire fraud conspiracy.

    According to the defendants’ plea agreements, between about 2014 and early 2020, Gayle was a doctor who operated a multi-clinic practice in Huntsville, Athens, and Killen. Davis owned the practice and served as business manager. In 2019, the Killen clinic shut down. In March 2020, the Alabama Medical Licensure Commission revoked Gayle’s license, and the other two clinics closed shortly after that.

    Gayle admitted that she had unlawfully distributed drugs, including oxycodone, hydrocodone, and methadone.

    Gayle and Davis both admitted to having conspired to commit health care fraud for several years by billing insurers for office visits under Gayle’s name even when she did not see the patients, was not in the same building, and sometimes was not in the same town. The defendants knew that the billing scheme was fraudulent. In 2015, Blue Cross Blue Shield of Alabama audited the practice and discovered that Gayle was absent, other staff were seeing patients, and yet all office visits were being billed under Gayle’s name. Blue Cross flagged the issue, and Gayle promised it would stop. Instead, the practice continued fraudulently billing insurers for office visits for the next four years. In total, between 2015 and 2020, Medicare, Medicaid, and Blue Cross paid more than $2.3 million for office visits billed under Gayle’s name.

    Gayle and Davis both also admitted to having conspired to commit wire fraud. In March 2020, based on concerns about her prescribing and billing practices, Gayle’s Alabama medical license was revoked.  Months later, Gayle and Davis applied for and obtained more than $450,000 in COVID-19 disaster relief funds through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. Those funds were designed to stabilize businesses struggling because of the pandemic. In their funding applications, Gayle and Davis certified that their medical practice needed the money because of economic uncertainty or injury caused by the pandemic. In reality, Gayle and Davis’s practice had closed, and they used COVID-19 funds they received on other things.

    The maximum penalty for unlawful drug distribution is twenty years in prison. The maximum penalty for health care fraud conspiracy is ten years in prison. The maximum penalty for wire fraud conspiracy is twenty years in prison.

    The FBI, DEA, and HHS-OIG investigated the case. The Medicaid Fraud Control Unit of the Alabama Attorney General’s Office provided exceptional investigative assistance after the Alabama Medicaid Agency’s Program Integrity Division initiated the case and referred it. Assistant U.S. Attorneys J.B. Ward and Ryan Rummage are prosecuting the case.

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  • MIL-OSI Security: Trussville Man Sentenced in Multimillion-Dollar Health Care Fraud Case

    Source: US FBI

    BIRMINGHAM, Ala. – Another man has been sentenced in a series of cases involving multi-million-dollar health care fraud and kickback conspiracies, announced U.S. Attorney Prim F. Escalona; Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples; and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles. 

    “This was a crime of greed and indifference to the consequences of the actions to the overall health system,” said U.S. Attorney Prim Escalona. “The crime cost insurers millions of dollars, and it exploited vulnerable patients trying to get appropriate medical care, not run up the tab on insurance. We will continue to fight hard to keep our community safe from serious crimes like this one.”

    “Health care fraud is not a victimless crime. It costs U.S. taxpayers millions of dollars every year. It can raise health insurance premiums, expose patients to unnecessary medical procedures, and increase taxes,” said James DeLoatch, Acting Special Agent in Charge of the FBI Birmingham Division. “The FBI is committed to coordinating with our partners and aggressively pursuing those who take advantage of others for their personal gain. This sentencing should serve as a warning to others who might engage in these types of schemes.”

    “Kickback arrangements can compromise medical decisions and threaten the integrity of federally funded health care programs,” said Tamala E. Miles, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General. “Today’s sentence exemplifies our commitment to protecting taxpayer-funded health care programs and the patients they serve.”

    Earlier this week, U.S. District Court Judge L. Scott Coogler sentenced John Alan Robson, 41, of Trussville, to 56 months in prison. Robson was also ordered to pay forfeiture of about $1.1 million, and restitution of about $5.3 million. In February 2024, Robson pleaded guilty to health care fraud conspiracy related to his work with Brian Bowman, James Ray, and others.

    According to Robson’s plea agreement, Robson knew that insurers would not pay for items or services that had been ordered based on kickbacks or that were medically unnecessary for a patient. Yet Robson received kickbacks—from specialty pharmacies, a nerve conduction testing company, and brace suppliers—to generate medically unnecessary orders and prescriptions from doctors’ offices that would be billed to insurance and reimbursed at high rates.

    For example, Robson marketed nerve conduction testing to medical providers for a Huntsville-based company called QBR or Diagnostic Referral Community. QBR paid those providers a flat fee (for example, $50) for each test they ordered that insurance paid for. QBR paid Robson a flat fee for each of those tests, too. QBR paid one of Robson’s medical practices more than $100,000 in per-test kickbacks.

    As another example, Robson marketed high-reimbursing topical creams—such as pain creams and scar creams—to providers on behalf of specialty pharmacies like Global Compounding Pharmacy and Watson Rx Solutions. Robson was paid lucrative commissions on the cream prescriptions that he and his team generated and insurance paid for. Robson got prescriptions for himself and family members regardless of whether those topical creams were medically necessary for the patients. Robson and other sales reps got blank pre-signed prescriptions from medical providers, filled out the prescriptions to make sure insurance would pay for them, and even selected the drugs or drug formulations to make sure insurance would pay for them. Robson admitted that federal insurance programs paid millions of dollars for medically unnecessary prescriptions for which Robson, Ray, and Bowman received commissions.

    This case is the latest in a series of cases involving health care fraud and kickbacks through pain clinics, specialty pharmacies, and a nerve conduction company in north Alabama.

    The FBI and HHS-OIG investigated this case.  Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted the case. 

    See related press here:

    https://www.justice.gov/usao-ndal/pr/medical-sales-rep-and-former-pain-clinic-owner-sentenced-related-multi-million-dollar

    https://www.justice.gov/usao-ndal/pr/pain-clinic-owners-sentenced-unlawfully-distributing-opioids-and-multimillion-dollar

    https://www.justice.gov/usao-ndal/pr/etowah-pain-clinic-owner-pleads-guilty-multi-million-dollar-kickback-and-health-care

    https://www.justice.gov/usao-ndal/pr/multiple-defendants-sentenced-major-compounding-pharmacy-fraud-conspiracy

    https://www.justice.gov/usao-ndal/pr/new-hope-man-sentenced-his-role-multi-million-dollar-kickback-and-health-care-fraud

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  • MIL-OSI Security: Kentucky Man Sentenced to 25 Years in Prison Related to Sextortion Scheme

    Source: US FBI

    BIRMINGHAM, Ala. – A Kentucky man was sentenced today on a charge of sexual exploitation of children, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

    U.S. District Court Judge L. Scott Coogler sentenced Aden Willis Yeager, 22, of Louisville, Kentucky, to 300 months in prison, followed by a life term of supervised release.  As part of his sentence, Yeager was ordered to pay $92,620 in restitution to the victims and a $50,000 special assessment under the Amy, Vicky, and Andy Act. In March, Yeager pleaded guilty to one count of production of child pornography. 

    According to the plea agreement, in November 2020, the West Alabama Human Trafficking Task Force received a CyberTipline report from the National Center for Missing and Exploited Children related to acts of sextortion committed by Yeager towards a minor female. Yeager coerced and enticed the minor to send him nude photos of herself, and then he sold the photos online.  When the minor would refuse to send more pictures, Yeager would threaten to send her nude photos to everyone in her contact list on social media. Further investigation revealed over 60 individual folders in Yeager’s Dropbox account that were labeled by female names and contained sexually explicit images and videos. FBI agents were able to positively identify and locate 19 minor females who had been contacted by Yeager to send pornographic photos.

    FBI Birmingham’s Child Exploitation and Human Trafficking Task Force investigated the case along with FBI Louisville, Kentucky; the West Alabama Human Trafficking Task Force; and the University of Alabama Police Department. Assistant U.S. Attorney R. Leann White prosecuted the case.

    The U.S. Attorney’s Office (USAO) and the National Children’s Advocacy Center (NCAC) have partnered and released a digital series to educate parents and caretakers about sextortion and how they can help prevent kids and teens from being victims. This series offers three-to-five-minute videos about current online safety topics and provides essential information about the true dangers of online activities.

    The videos can be accessed from the following locations:

    nationalcac.org/sextortion-prevention/

    https://www.youtube.com/@nationalcac

    If you suspect or become aware of possible sexual exploitation of a child, please contact law enforcement. To alert the FBI Birmingham Office, call 205-326-6166. Reports can also be filed with the National Center for Missing & Exploited Children (NCMEC) or online at www.cybertipline.org.

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

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  • MIL-OSI Security: Minnesota Man Sentenced for Airline Assault, Interference

    Source: US FBI

    ANCHORAGE, Alaska – A Minnesota man was sentenced today to five years’ probation for assaulting a flight attendant and interfering with a flight crew’s normal duties.

    According to court documents, on June 24, 2023, Christian Burch, 38, went into the bathroom while he was aboard a flight from Minneapolis to Anchorage. Flight attendants heard a scream coming from the bathroom and tried knocking on the door multiple times. The defendant slammed the door open and walked up the aisleway, appearing shaky and confused.

    After being questioned by another flight attendant, Burch became unresponsive. A registered nurse aboard the flight examined the defendant and suspected he was overdosing. The flight attendants and a male passenger assisted the nurse is administering a dosage of Narcan, but Burch began to violently struggle when the Narcan was inserted into his nose. The flight attendants and multiple passengers were involved in the struggle, and at one point, Burch grabbed one of the flight attendants near her throat. Burch was also bleeding from his nose and mouth during the altercation, causing multiple passengers and flight attendants to come in contact with his blood.

    The nurse was able to administer two doses of Narcan during the altercation and Burch was restrained in one of the cabin seats for the remainder of the flight. Due to Burch’s actions, the flight crew had to stop performing their normal duties to remedy the situation and update the pilots.

    Burch was arrested once the plane landed in Anchorage and served six days in federal custody before being released. Upon his return to Minnesota, he was arrested and held in state custody for 72 days for violating his state parole by leaving the state without permission. Burch pleaded guilty in December 2023 but was arrested in March 2024 for violating his pretrial release and has remained in custody since, serving 66 days total in federal custody.

    “Air travel is a necessity for many Alaskans and tourists, and all who use or work on this mode of transportation should feel safe while aboard an aircraft,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “This case serves as a reminder that we will prosecute anyone who chooses to commit such actions while in our district.”

    “Criminal conduct aboard an aircraft, such as interference with a flight crew, jeopardizes the safety of all passengers and is a federal crime,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “The FBI is committed to investigating federal crimes occurring on commercial aircraft, and holding accountable those that endanger the safety of passengers and flight crews.”

    The FBI Anchorage Field Office, with assistance from the Anchorage Airport Police Department, investigated the case.

    Assistant U.S. Attorney Christopher Schroeder prosecuted the case.

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  • MIL-OSI Security: Anchorage Man Sentenced to 11 Years for Drug, Firearm Crimes

    Source: US FBI

    ANCHORAGE, Alaska – An Anchorage man was sentenced yesterday to 11 years in prison and four years’ supervised release for possessing firearms as a felon and possessing drugs with an intent to distribute them.

    According to court documents, on Jan. 28, 2021, law enforcement found Joseph Franks, 42, asleep in a running tow truck along a road in Big Lake. Franks had an active warrant for his arrest and was asked to step out of the vehicle. Upon his arrest, law enforcement found a loaded pistol magazine on his person. They obtained a search warrant for the tow truck and found a backpack containing two stolen pistols, six pistol magazines and over 300 grams of marijuana, among other items, and a safe containing over 60 grams of heroin and paraphernalia commonly used for drug distribution.

    Less than a week later, law enforcement attempted to stop a vehicle in Wasilla, but the vehicle fled, leading to a high-speed chase for several miles. Spike stripes were deployed, causing the vehicle to crash, but the driver, later determined to be Franks, broke the driver’s side window and fled from the vehicle on foot. Franks was apprehended by a K9 and law enforcement found $1,770 in cash and a small container with cocaine on his person, and $3,550 in cash, over 61 grams of marijuana, over 35 grams of meth, over 85 grams of heroin, and small amounts of psilocybin and cocaine inside a locked duffle back in the vehicle’s trunk.

    “Mr. Franks repeatedly disregarded the law and endangered the community with his criminal conduct,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We will continue to work closely with our law enforcement partners to pursue justice against defendants who choose to commit criminal acts, especially activity that puts our communities at risk like firearm and drug trafficking offenses.”

    “The defendant continued to plague our community with serious crimes involving drugs, stolen firearms, and reckless flight from law enforcement,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “This sentence, stemming from a joint investigation with the Alaska State Troopers, exemplifies our shared commitment in keeping our communities safe.”

    “The sentence handed down in this prosecution is a significant victory in the Alaska State Trooper’s fight against drug trafficking occurring across the State of Alaska,” said Captain Cornelius Sims, Captain of the Alaska State Trooper’s Statewide Drug Enforcement Unit. “The Alaska State Troopers will continue to work tirelessly with our local, state, and federal law enforcement partners to interrupt drug trafficking in Alaska and hold those that peddle these dangerous drugs accountable for their actions.”

    The FBI Anchorage Field Office and Alaska State Troopers investigated the case.

    Assistant U.S. Attorneys Jennifer Ivers and Alana Weber prosecuted the case.

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  • MIL-OSI Security: U.S. Attorney’s Office Announces Additional Charges Against Leader, Member of Alaska Organized Drug Crime Ring

    Source: US FBI

    ANCHORAGE, Alaska – A federal grand jury in Alaska returned a superseding indictment adding new charges against the leader and a high-ranking member of a large-scale organized drug crime ring operating in Alaska.

    In January, the U.S. Attorney’s Office for Alaska announced charges against 53 defendants allegedly connected to the drug trafficking enterprise. Conspiracy to distribute fentanyl, methamphetamine, heroin and cocaine, continuing criminal enterprise, killing in furtherance of a continuing criminal enterprise, kidnapping conspiracy, kidnapping resulting in death and carjacking resulting in death, were among the original charges against leaders, members and associates of the organization.

    According to court documents, Heraclio Sanchez-Rodriguez, 57, is allegedly the leader of the transnational organized crime and drug trafficking ring targeting Alaska. Tamara Bren, 41, is a high-ranking member known as one of his “wives.” Per the new charges, from August 2022 to September 2023, Bren and Sanchez-Rodriguez allegedly conspired to launder money by directing members of the enterprise to use money transferring services, like wire transfers, mobile applications and money orders, to attempt to launder over $1.3 million in drug proceeds.

    Court documents also charge Sanchez-Rodriguez with allegedly altering and falsifying investigative reports by the DEA, FBI, and U.S. Postal Inspection Service, to impede, obstruct and influence the investigation on Dec. 20, 2023.

    According to the superseding indictment, law enforcement has seized over 92 kilograms of fentanyl, 26 kilograms of meth, 11 kilograms of heroin and 110 grams of cocaine in connection to this enterprise.

    In addition to the original charges, Sanchez-Rodriguez and Bren are charged with one count of money laundering conspiracy in violation of 18 U.S.C. §1956(h), and Sanchez-Rodriguez is charged with one count of obstruction of justice in violation of 18 U.S.C. §1519.

    U.S. Attorney S. Lane Tucker of the District of Alaska, Assistant Special Agent in Charge David Zahn of the Drug Enforcement Administration Anchorage District Office, Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service Seattle Division, Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office and Special Agent in Charge Adam Jobes of the IRS Criminal Investigation Seattle Field Office made the announcement.

    The Drug Enforcement Administration Seattle Division Office and Anchorage District Office, FBI Anchorage Field Office, IRS Criminal Investigation Seattle Field Office, U.S. Postal Inspection Service Seattle Division and Anchorage Domicile, Homeland Security Investigations Anchorage, Alaska Office, Alaska State Troopers, Anchorage Police Department and Palmer Police Department, with significant law enforcement support from the U.S. Marshals Service, are investigating the case.

    Assistant U.S. Attorneys Stephan Collins, Christopher Schroeder, Karen Vandergaw and Alana Weber are prosecuting the case.

    This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which 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.

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

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  • MIL-OSI Security: Rochester Man Charged with Receipt and Possession of Child Pornography

    Source: US FBI

    ROCHESTER, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Daniel P. Walsh, 58, of Rochester, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a maximum penalty of 20 years in prison, and a $250,000 fine.

    Assistant U.S. Attorney, Kyle P. Rossi, who is handling the case, stated that the according to the complaint, in November 2024, the National Center for Missing and Exploited Children received a report from Google that an individual using an account registered in Walsh’s name, from Walsh’s IP address, uploaded multiple images of child pornography to Google’s platforms. Rochester Police and the FBI executed a search warrant at Walsh’s residence, during which they seized multiple computers and other digital devices. A forensic examination of those devices revealed that Walsh had received and possessed hundreds of images of child pornography, to include child pornography depicting prepubescent minors engaged in sexual conduct with adults. In many instances, Walsh had superimposed the faces of minors that he knew onto the images.

    The defendant made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was released on conditions.

    The criminal complaint is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.                  

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

    # # # #

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  • MIL-OSI Security: Arizona Man Sentenced to 10 Years for Role in Trafficking Fentanyl to Alaska

    Source: US FBI

    ANCHORAGE, Alaska – An Arizona man was sentenced today to 10 years in prison and three years’ supervised release for supplying hundreds of thousands of fentanyl pills to Alaska over multiple months.

    According to court documents, Odarious Shaw, 25, distributed fentanyl pills to Alaska twice a week for over six months in quantities of 40-50,000 pills per shipment. In some instances, the defendant would ship as many as 500,000 pills at a time.

    Law enforcement learned that Shaw would obtain pills in Arizona and instruct buyers in Alaska to send him $150 via a money transferring service to confirm the transaction. He would then provide a date when a courier would arrive on a commercial flight at the Anchorage airport with the drugs in their checked luggage. Upon arrival, the courier would deliver the pills to the buyer, pick up the cash payment for the drugs and immediately board a flight back to Arizona to deliver the money to Shaw.

    On June 25, 2023, Shaw’s courier and codefendant, Corrion James, 26, arrived at the Ted Stevens International Airport in Anchorage on a flight from Phoenix, Arizona, with a package containing over 41,000 fentanyl pills. James was arrested at the airport after attempting to sell the pills to the arranged buyer. Those pills had an estimated street value of $400-600,000 in Anchorage, and as much as $4.8 million in rural Alaska.

    Shaw continued to try to sell drugs in Alaska after James was arrested but was subsequently arrested in Arizona in August 2023. James pleaded guilty in February 2024 and was sentenced to over three years in prison for his role in the conspiracy.

    At sentencing, Chief U.S. District Court Judge Sharon Gleason found that Shaw was a leader or organizer of the drug trafficking activity in this case and said that she hopes this sentence deters people motivated by greed from trafficking this deadly drug to Alaska.

    “A single pill can destroy someone’s life and the amount of fentanyl Mr. Shaw supplied to Alaska could destroy entire communities,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Illegal fentanyl has absolutely no place here. My office will continue to hinder the inflow of illegal fentanyl into our state by working with our law enforcement partners to disrupt the supply and distribution of this poisonous drug.”

    “During the course of this investigation, the FBI and our law enforcement partners intercepted tens of thousands of illicit fentanyl pills before reaching local Alaska communities, preventing untold violence and devastation,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “With a task force approach, the FBI and our law enforcement partners will continue to identify, disrupt, and hold accountable those who are fueling drug trafficking activities in Alaska.”

    The Alaska State Troopers, Anchorage Police Department and the FBI Anchorage Field Office investigated the case as part of the FBI Safe Streets Task Force and the Alaska High-Intensity Drug Trafficking Area (HIDTA) initiative.

    Assistant U.S. Attorney Christopher Schroeder prosecuted the case.

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  • MIL-OSI Security: Ketchikan Man Sentenced to 13 Years and Four Months for Running Child Pornography Distribution Group Chat

    Source: US FBI

    JUNEAU, Alaska – A Ketchikan man was sentenced today to 13 years and 4 months in prison for distributing child pornography through a group messaging platform.

    According to court documents, Walter William Onstad, 46, was an administrator of a messaging group known as “Anything Goes.” The chat was used exclusively to exchange child pornography, with some of the visuals depicting the sexual abuse of pre-pubescent minors.

    Court documents say investigators with the National Center for Missing and Exploited Children received a tip in April 2022 that an individual, later identified as Onstad, sent at least 12 images and videos of child pornography to another user through the messaging platform.

    An investigation revealed that Onstad solicited images depicting child sexual abuse from those wanting to enter the “Anything Goes” group chat. The defendant would personally verify the images, upload the images to the group chat and grant access to people who provided them.

    As the investigation continued, the defendants cell phone was taken by law enforcement and over 300 images and 40 videos of child sexual abuse were in his possession on the phone. The defendant admitted to being responsible for the possession and distribution of over 600 images. Some of the images he possessed and distributed included the sexual abuse of minors as young as infants and toddlers.

    “Mr. Onstad contributed to the victimization of children by running a child sexual abuse material distribution chat and was responsible for sharing hundreds of images of innocent children,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We will continue to work with law enforcement to relentlessly pursue, arrest and prosecute individuals who traffic images of child sexual abuse and hold them responsible for the incalculable damage they’ve caused.”

    “Innocent children are revictimized each time CSAM is distributed,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “As an administrator of a CSAM distribution operation, Walter Onstad fueled a market that preys on our most vulnerable. No matter how they commit their crimes, those who sexually exploit children will be pursued and held accountable by the FBI and law enforcement partners, for justice and the safety of our children.”

    The Juneau Resident Agency of the FBI Anchorage Field Office, with assistance from the Ketchikan Police Department and North Carolina’s Internet Crimes Against Children (ICAC) Task Force, investigated the case.

    Assistant U.S. Attorney Jack Schmidt prosecuted the case.

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

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  • MIL-OSI Security: Chinle Man Sentenced to 25 Years in Prison for Kidnapping and Assault

    Source: US FBI

    PHOENIX, Ariz. – Jared Josh John, 32, of Chinle, was sentenced on September 11, 2024, by United States District Judge Diane J. Humetewa to 25 years in prison, followed by five years of supervised release. After a jury trial in May 2023, John was convicted of Carjacking, Kidnapping, Robbery, Assault with a Dangerous Weapon, Assault with Intent to Commit Murder, Assault with Intent to Commit a Felony, and Assault Resulting in Serious Bodily Injury.

    In July 2020, the victim was passing through the Navajo Nation on a road trip when John and a co-defendant broke into his car while he was resting for the night. Led by John, the two co-defendants drove the victim into the desert, where John slit the victim’s throat three times and left him to die. The victim survived by playing dead until the defendants left, and then used his clothes to fashion a tourniquet for his neck before going to find help.

    John’s co-defendant, Everickk Matthew Begay, 55, of Chinle, pleaded guilty to Kidnapping, Robbery, and Assault with Intent to Commit a Felony on March 20, 2023. Begay was sentenced on August 14, 2023, to 97 months in prison, followed by five years of supervised release.

    The Federal Bureau of Investigation and the Navajo Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Alanna R. Kennedy and Tracy Van Buskirk, District of Arizona, Phoenix, handed the prosecution.
     

    CASE NUMBER:            CR-21-08113-PCT-DJH
    RELEASE NUMBER:    2024-134_Begay et al.

    # # #

    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.

    2024-134_Begay et al.

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  • MIL-OSI Security: Four Leaders of Notorious Nuestra Familia Prison Gang Convicted of Racketeering and Related Crimes

    Source: US FBI

    Trial Evidence Established Defendants Furthered the Aims of the Gang from Prison By Directing Other Members and Associates to Perform Numerous Criminal Acts Including Drug Dealing and Murder

    OAKLAND – A federal jury found David Cervantes (aka “DC”), James Perez (aka “Conejo”), Guillermo Solorio (aka “Capone” aka “Caps”), and George Franco (aka “Puppet”) guilty of racketeering, for their roles as senior members of the Nuestra Familia criminal enterprise, which engaged in murder conspiracies, attempted murder, drug distribution, and money laundering. The jury’s verdict follows a 12-week trial before the Hon. Yvonne Gonzalez Rogers, U.S. District Judge.    

    “Prison gangs are a blight on the criminal justice system and on society,” said Martha Boersch, Chief of the Office of the U.S. Attorney’s Criminal Division. Prisons are supposed to protect the community from further crime and offer people the chance for rehabilitation, but prison gangs frustrate both goals. They perpetuate violence and criminality inside prisons, and through the use of contraband cell phones, gang leaders are able to oversee vast criminal networks on the streets. Successful prosecutions like this send an unmistakable message that this will not be tolerated simply because it’s happening behind prison walls.”  

    “These convictions are the culmination of eight years of complex investigative work by the FBI-led Santa Clara County Safe Streets Task Force. Through tireless investigative efforts and collaboration with our law enforcement partners, we have dismantled a core part of this criminal enterprise, whose illicit drug distribution and violent crime have long plagued our community,” said FBI Special Agent in Charge Robert Tripp. “The FBI remains committed to ensuring that those who lead and engage in such violence, no matter where they operate, are brought to justice.”

    The evidence at trial established that the four defendants—Cervantes, 76; Perez, 70; Solorio, 45; and Franco, 59 – all were senior members of the Nuestra Familia (NF) prison gang, all serving on the General Council, the primary decision-making body for the gang.  Through the testimony of more than 50 witnesses and dozens of wiretapped phone calls, the trial evidence revealed a lucrative and violent criminal enterprise with a presence in every Bay Area county and the roles that each defendant played in it.  

    The trial evidence established that Cervantes was one of the NF’s three “Generals.” As outlined in the Nuestra Familia’s written Constitution, the three generals sat atop the NF organizational structure and made final decisions on serious matters involving governance of the enterprise.  As the sole member of the General Advocates Office, Cervantes oversaw member discipline—a role that at times included deciding when members should be attacked or killed for violating gang rules.  Further, the trial evidence established that Cervantes was responsible for (1) receiving “complaints” containing allegations of member wrongdoing within the NF, (2) appointing investigators to look into alleged wrongdoing of gang members, (3) accepting and modifying “findings and recommendations” of the investigators, and (4) forwarding final recommendations regarding member discipline to a seven-member General Council. Cervantes also was the “Regimental Commander” of the NF street gangs in Kings County.  As Regimental Commander, Cervantes was responsible for overseeing, managing, directing, and otherwise controlling criminal activity conducted by Norteño street gang members in Kings County.  In addition to convicting Cervantes of Racketeering Conspiracy, the jury found Cervantes responsible for the conspiracies to murder Lorenzo “Lencho” Guzman in 2015 and John “Shanks” Reyna in 2019, as well as the attempted murders of Antonio “Sombras” Villagrana in 2015, John “Knockers” Muzquiz in 2016, and Matt Rocha in 2019.  

    The trial evidence demonstrated Perez was another General of the prison gang, specifically, the “General of Prisons.” In this role, Perez was responsible for maintaining authority over all NF regiments within the California prison system. His responsibilities included appointing NF members and associates to leadership positions within California Department of Corrections and Rehabilitation (CDCR) facilities, as well as overseeing and regulating criminal activity occurring in these facilities. In his role as General of Prisons, Perez collected a portion of profits from the prison regiments.  He also was the Regimental Commander of the San Mateo County Street Regiment.  In addition to convicting Perez of Racketeering Conspiracy, the jury found Perez responsible for the conspiracy to murder Lorenzo “Lencho” Guzman, as well as the attempted murders of Antonio “Sombras” Villagrana, John “Knockers” Muzquiz, and Matt Rocha.  

    At trial, the evidence established that Franco was a member of the NF’s “Inner Council” and was Regimental Commander of San Joaquin County.  As a member of the Inner Council, Franco was an advisor to the three NF Generals (two of whom were Cervantes and Perez) and was part of the General Council that, in addition to member discipline, made other significant decisions in conducting the affairs of the NF.  In addition to convicting Franco of Racketeering Conspiracy, the jury found Franco responsible for the conspiracy to murder Lorenzo “Lencho” Guzman, as well as the attempted murder of Matt Rocha.  

    Solorio also was part of the NF “Inner Council” and was an advisor to the NF Generals.  Solorio also was the Regimental Commander over the Monterey County Street Regiment.  The evidence at trial demonstrated Solorio oversaw a prolific drug trafficking operation in Fresno, Calif.  In addition to convicting Solorio of Racketeering Conspiracy, the jury found Solorio responsible for the attempted murder of Matt Rocha.  

    In sum, all four defendants were found guilty of racketeering conspiracy, in violation of 18 U.S.C. § 1962, along with various special findings pertaining to the acts involving murder described above.  The maximum statutory sentence for each defendant is life in prison.  Judge Gonzalez Rogers scheduled the defendants’ sentencings for Mar. 6, 2025.

    The trial of these four defendants marks the culmination of the prosecution of the NF leadership in the Northern District of California.  The prosecution stems from a five-year investigation by the FBI, which resulted in the indictment of 54 Nuestra Familia members and associates, including defendants both on the streets and in California state prisons.  With the jury’s verdict this week, the government has now obtained convictions of all 7 members of the NF’s General Council, its entire senior leadership team.  

    This case is being prosecuted by Mari Overbeck, Leif Dautch, and Aseem Padukone of the Organized Crime Strike Force for the United States Attorney’s Office for the Northern District of California.  The prosecution is the result of an investigation by the FBI (San Francisco, Sacramento, and Phoenix Divisions), the DEA, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal Service, with the assistance of the Santa Clara County Sheriff’s Office, the Santa Clara County District Attorney’s Office, and the San Jose Police Department, and with support from the Alameda County Sheriff’s Office, Antioch Police Department, Campbell Police Department, Fremont Police Department, King’s County Sheriff’s Office, Monterey County Sheriff’s Office, Mountain View Police Department, Sacramento Police Department, Salinas Police Department, Menlo Park Police Department, Santa Clara County Parole Department, Santa Clara County Probation Department, Santa Clara Police Department, Santa Cruz County District Attorney’s Office, Santa Cruz County Sheriff’s Office, Modesto Police Department, the California Department of Corrections and Rehabilitation, San Francisco Police Department, the Stanislaus County Sheriff’s Department, Sunnyvale Department of Public Safety, and the FBI’s Cryptanalysis and Racketeering Records Unit.  

    This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (OCDETF), which 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.  
     

    MIL Security OSI –

  • MIL-OSI Security: CEO of CardReady LLC Sentenced to Seven Years in Prison for $19 Million Credit Card Laundering Scheme

    Source: US FBI

    Defendant Created Phony Merchant Accounts to Obtain Credit Card Processing for Fraudulent Telemarketing Scheme

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that BRANDON BECKER, the former CEO of CardReady, LLC (“CardReady”), was sentenced today to seven years in prison for operating a credit card laundering scheme in which BECKER and his co-conspirators stole over $19 million based on false promises that they could reduce thousands of customers’ debt burdens. As part of this scheme, BECKER and his co-conspirators created dozens of sham merchant accounts and false merchant applications, defrauding a credit card processing company and federally insured bank into processing victim payments. BECKER previously pled guilty before U.S. District Judge Loretta A. Preska, who also imposed today’s sentence.

    Acting U.S. Attorney Matthew Podolsky said: “Over a two-year period, Brandon Becker and his co-conspirators preyed on nearly 20,000 victims who were trying to reduce their debt burdens. Becker tasked co-conspirators at CardReady to recruit straw owners for shell companies, and deceived credit card payment processors into fraudulently processing more than $19 million in stolen funds. With today’s sentence, Becker faces the consequences of this massive fraud, sending the clear message that corporate executives who facilitate fraud will be held accountable for their crimes.”

    According to the Superseding Indictment, court filings, and statements made in Court:

    BECKER was the CEO of CardReady, a Los-Angeles based company acting as a sales agent in the credit card processing industry.  As part of its business as a sales agent, CardReady found merchants who wanted credit card processing services, and submitted merchant applications on behalf of those merchants to an Independent Sales Organization (“ISO”), referred to in the Indictment as the “New York ISO.”  The New York ISO then evaluated the merchant applications, and referred acceptable merchant accounts for processing up the chain to Payment Processor-1 and to Bank-1.  Bank-1 and Payment Processor-1, in turn, processed payments to merchants for purchases by customers who had used credit cards.

    In or about 2012, BECKER negotiated a deal with co-defendant STEVEN SHORT, the former head of Florida-based E.M. Systems & Services LLC and affiliated companies (collectively, “E.M. Systems”).  Under this deal, CardReady would retain approximately one-third of E.M. Systems’ credit card sale transactions in exchange for providing E.M. Systems access to the credit card processing network.  For roughly the next two years, SHORT and telemarketers working in boiler rooms for E.M. Systems cold-called customers and offered services, including debt consolidation and interest-rate reduction, which were prohibited by the applicable guidelines from Bank-1 and other associated processing entities (the “Guidelines”), and which – as BECKER knew – would produce chargebacks from dissatisfied customers far in excess of the number and rate of chargebacks permitted under the Guidelines.

    In securing payment card processing for E.M. Systems, BECKER concealed that E.M. Systems was the true underlying merchant.  Instead, BECKER and his subordinates and co-conspirators, created approximately 26 sham merchant companies, each headed by a “signer” (the “Sham Merchants” and the “Sham Merchant Accounts”).  The 26 signers for the 26 Sham Merchants typically had no business of their own, and lacked knowledge of E.M. Systems’ business.  In return for signing the paperwork provided to them, the signers were paid a nominal fee from CardReady. 

    BECKER and his co-conspirators prepared and coordinated fraudulent merchant applications for each of the Sham Merchants, through merchant applications that falsely described the Sham Merchants to make them look like legitimate independent businesses and to make it more likely that the associated Sham Merchant Account would be approved for processing by the New York ISO, Payment Processor-1, and Bank-1.  The merchant application for each Sham Merchant also concealed the Sham Merchant’s true association with E.M. Systems.

    By steering E.M. Systems’s payment processing through these Sham Merchant Accounts, BECKER accomplished a number of fraudulent purposes.  First, the use of these Sham Merchant Accounts made it possible for E.M. Systems and other high-risk merchants to conceal their identities from Payment Processor-1 and Bank-1 and to maintain payment card processing.  This was particularly relevant, as Payment Processor-1 repeatedly required CardReady to close individual Sham Merchant Accounts because of excessive chargebacks and reports of sales of prohibited services.  BECKER then caused CardReady to quickly replace the closed Sham Merchant Accounts with new Sham Merchant Accounts, precluding Payment Processor-1 from shutting down its processing of E.M. Systems and other high-risk merchants.  Second, the fraudulent processing scheme enabled E.M. Systems and other high-risk merchants to spread out their charges, refunds, and chargebacks across multiple Sham Merchant Accounts.  This enabled them to evade chargeback monitoring programs operated by Bank-1, Payment Processor-1, and the New York ISO.

    BECKER’s use of signers to deceive payment processors was not limited to the E.M. Systems scheme. BECKER and his agents and employees at CardReady systematized the recruitment of over 270 signers and the creation of over 800 Sham Merchant Accounts to be used by more than 30 high risk clients other than E.M. Systems between approximately 2012 and 2016, both before and after the E.M. Systems scheme.

    *                *                *

    BECKER, 53, of Los Angeles, California, pled guilty on August 30, 2024, to one count of conspiracy to commit wire fraud and bank fraud.  In addition to the prison sentence, BECKER was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,910,600.05, and forfeiture of $11,405,964.00.

    STEVEN SHORT, 48, of Tampa, Florida, pled guilty on August 16, 2022, to one count of conspiracy to commit wire fraud and bank fraud.  On May 2, 2023, SHORT was sentenced to 78 months in prison and three years of supervised release and ordered to pay restitution in the amount of $1,910,600.05 and forfeiture of $8,833,889.69.

    Mr. Podolsky praised the work of the Federal Bureau of Investigation and thanked the Federal Trade Commission for its assistance.

    This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Vladislav Vainberg and Timothy Capozzi are in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: Former High-Ranking FDNY Official Sentenced to 20 Months in Prison for Role in Bribery Conspiracy

    Source: US FBI

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that BRIAN CORDASCO was sentenced to 20 months in prison for participating in a conspiracy to solicit and receive bribes in his role as a Chief of the New York City Fire Department (“FDNY”) Bureau of Fire Prevention (“BFP”).  CORDASCO previously pled guilty on October 8, 2024, before U.S. District Judge Lewis J. Liman, who also imposed today’s sentence.

    Acting U.S. Attorney Matthew Podolsky said: “As a chief of the Bureau of Fire Prevention, Brian Cordasco was entrusted to protect the people of New York City and to fairly represent their interests.  Instead, he repeatedly abused his position of power by expediting fire inspection services for those who paid him thousands of dollars in bribes.  The sentence imposed today sends a clear message that government officials who betray the public trust to line their own pockets will be met with just punishment.”

    According to the Indictment, plea agreement, and statements made in court:

    From 2021 to 2023, CORDASCO repeatedly abused his position as a Chief of the BFP by participating in a scheme to solicit and receive $190,000 in total bribe payments from a former FDNY firefighter named Henry Santiago, Jr.  In exchange for those bribe payments, CORDASCO used his authority within the BFP to improperly “expedite” BFP inspections and plan reviews for Santiago’s customers.  CORDASCO personally profited $57,000 as part of this scheme.  To carry out this conspiracy, CORDASCO lied to his BFP subordinates to justify otherwise improper expediting requests.  CORDASCO also lied to law enforcement when interviewed about his involvement in the scheme. 

    If you believe you have information related to bribery, fraud, or any other illegal conduct by FDNY or BFP employees, please contact squad6complaint@doi.nyc.gov or (212) 825-2402. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at USANYS.WBP@usdoj.gov.

    *               *                *

    In addition to the prison term, CORDASCO, 49, of Staten Island, New York, was sentenced to two years of supervised release and ordered to pay forfeiture of $57,000 and a fine of $100,000.

    Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation and the New York City Department of Investigation.

    The prosecution of this case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jessica Greenwood, Matthew King, and Daniel H. Wolf are in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: Former Bryant High School Teacher Pleads Guilty to Transportation of a Minor to Engage in Illegal Sexual Activity

    Source: US FBI

          LITTLE ROCK—Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced today that a former Bryant High School teacher has pleaded guilty to transporting a minor across state lines for the purpose of unlawful sexual activity. Heather Hare, 33, of Conway, entered this guilty plea earlier today before United States District Judge Lee P. Rudofsky.

          Judge Rudofsky will sentence Hare at a later date. Transportation of a minor to engage in unlawful sexual activity is punishable by not less than 10 years imprisonment and up to life imprisonment, and not less than five years of supervised release.

          The investigation into Hare revealed that Hare taught Family Consumer Science classes at Bryant High School and met the minor victim on his first day of his senior year. Hare began one-on-one counseling sessions with the minor victim, eventually giving him her personal phone number and primarily communicating with him through Instagram and Snapchat.

          Hare later told the minor victim that she had a dream of them having sex and gave him her home address in Conway. The minor victim and Hare had sex approximately 20 to 30 times throughout the 2021-2022 school term, including multiple times at her Conway residence, in her vehicle, and in her classroom and parking lots at Bryant High School.

          Between April 21 and April 24, 2022, Hare was the sponsor and chaperone for a field trip to Washington, D.C., as part of an extracurricular activity related to the Family Consumer Science courses Hare taught. During the field trip, which included four students, of which the minor victim was the only male student, Hare and the minor victim engaged in the unlawful sexual activity to which she pleaded guilty.

          “This former teacher took advantage of her position of trust and the vulnerability of a minor, using her role to entice and lure this minor into engaging in unlawful sexual activity,” Ross said. “Our office will continue to seek significant penalties against any educational professional who sexually abuse their students.”

          Hare was indicted on August 1, 2023, and charged with one count of interstate/foreign travel for prostitution/sexual activity by coercion and one count of transportation of a minor with intent to engage in criminal sexual activity. In exchange for her guilty plea, the remaining charge was dismissed.

          The case was investigated by the FBI, Bryant Police Department, and Saline County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Kristin Bryant.

    # # #

    Additional information about the office of the

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

    https://www.justice.gov/edar

    X (formerly known as Twitter):

    @EDARNEWS 

    MIL Security OSI –

  • MIL-OSI Security: Sextortion: A Growing Threat Targeting Minors

    Source: US FBI

    Offenders Deceive and Manipulate Victims to Create Sexually Explicit Material for Extortion Purposes

    LITTLE ROCK, AR—The FBI wants to warn parents, educators, caregivers, and children about the dangers of online activity that may lead to the solicitation and enticement of a minor to engage in sexual acts.

    Sextortion involves an offender coercing a minor to create and send sexually explicit images or video. An offender gets sexually explicit material from the child and then threatens to release that compromising material unless the victim produces more. These offenders are seeking sexual gratification.

    Financially motivated sextortion is a criminal act that involves an offender coercing a minor to create and send sexually explicit material. Offenders threaten to release that compromising material unless they receive payment, which is often requested in gift cards, mobile payment services, wire transfers, or cryptocurrency. These offenders are motivated by financial gain, not necessarily just sexual gratification.

    Victims are typically males between the ages of 14 to 17, but any child can become a victim. For financially motivated sextortion, offenders are usually located outside the United States and primarily in West African countries such as Nigeria and Ivory Coast, or Southeast Asian countries such as the Philippines.

    These crimes can lead victims to self-harm and have led to suicide. From October 2021 to March 2023, the FBI and Homeland Security Investigations received over 13,000 reports of online financial sextortion of minors. The sextortion involved at least 12,600 victims—primarily boys—and led to at least 20 suicides.

    In the six-month period from October 2022 to March 2023, the FBI observed at least a 20% increase in reporting of financially motivated sextortion incidents involving minor victims compared to the same time period the previous year.

    “The exploitation of children is a reprehensible crime and will not be tolerated by the FBI,” said Special Agent in Charge Alicia Corder of the FBI’s Little Rock Field Office. “Our office will continue to work with our federal, state, and local law enforcement partners to protect Arkansas children from sextortion and hold these predators accountable.”

    If you or someone you know believes that they are a victim of sextortion or financially motivated sextortion, immediately report the activity to law enforcement. You can report it to the FBI by calling 1-800-CALL-FBI or visiting tips.fbi.gov.

    For more information on sextortion and financial sextortion, visit the FBI’s resources on the threats at: https://www.fbi.gov/sextortion and https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/sextortion/financially-motivated-sextortion.

    MIL Security OSI –

  • MIL-OSI Security: Jury Finds Registered Sex Offender From Michigan Guilty of Interstate Travel to Engage in Illicit Sexual Activity With a Minor; Sexual Exploitation of a Minor; and Receipt of Child Pornography

    Source: US FBI

          LITTLE ROCK—A registered sex offender from Michigan has been convicted of committing multiple sex offenses in Arkansas at the conclusion of a three-day trial. On Wednesday, a federal jury found Jeremy Robert Ward, 33, of Marine City, Mich., guilty on all nine counts for which he was indicted: one count of interstate travel with the purpose of enticing a minor to engage in sexual activity with a minor, six counts of sexual exploitation of a minor, one count of receipt of child pornography, and one count of travel with the purpose to engage in illicit sexual activity with a minor.

          The jury returned their verdict after deliberating for approximately 90 minutes. United States District Judge Kristine G. Baker presided over the trial and will sentence Ward at a later date. One of Ward’s charges carries a mandatory minimum sentence of 25 years in prison.

          “This defendant, who is already a convicted sex offender, continued this abhorrent behavior by acting on his desire to have sex with a minor. He used social media to seek out the victim and took advantage of her innocence,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “This verdict the jury reached sends a clear message that Arkansas juries will not hesitate to convict sex offenders for this type of conduct. If you seek to have sex with children, you will be caught and prosecuted to the fullest extent under federal law.”

          Ward was previously convicted in 2013 in Michigan of three counts possession of child sexually abusive material and one count of accosting a child for an immoral purpose. He is a registered sex offender in Michigan.

          Ward met the 12-year-old minor victim online in September 2022 when he added her to his Snapchat account. He exchanged messages with the victim for approximately three weeks before traveling to Arkansas from his home in Michigan to meet her. On October 15, 2022, he met her face-to-face when he drove up to her in his pickup truck while she was riding her bike near her neighborhood in Bryant. During her encounter with Ward, the victim began surreptitiously recording a portion of her exchange with him. On the video, Ward told her, “I was hoping to take you home” and “I just wish she [her mom] would let you go, especially since I drove all the way down here.” Ward also told the minor victim that she must “think I’m gonna kidnap you or something,” to which she replied, “You probably are about to at this point.” He later asked if she knew of any “private spots,” in an attempt to find a more secluded place to be with her.

          Around the same time, using an application on her cell phone, her father noticed she was outside of the established boundary where she was permitted to be. Her parents went to her location, and her father found the minor victim laying in the grass with Ward, whose pants were around his ankles. Ward then fled into the woods.

          The minor victim testified at trial that while she was in the field with Ward, he attempted to commit sexual acts with her. Subsequent investigation revealed that the victim and Ward communicated through video messages, some of which Ward recorded on his phone. The recorded video messages were recovered from Ward’s phone and included video and still images of the nude minor victim in the shower.

          “Each year thousands of children are targeted and victimized by child predators. Mr. Ward’s heinous crimes highlight the prevalent threat Arkansas youth and families face,” said Special Agent in Charge Alicia D. Corder of FBI’s Little Rock Field Office. “This case is yet another example of FBI Little Rock’s commitment to working with our partners to target individuals who seek to exploit the most vulnerable members of our community.”

          The statutory penalty for sexual exploitation of a minor ranges from not less than 25 years to not more than 50 years. The statutory penalty for traveling with the purpose of engaging in sexual activity with a minor is not less than 10 years imprisonment and up to life imprisonment. The statutory penalty for receipt of child pornography is not less than 15 years and not more than 40 years imprisonment. The statutory penalty for of travel with the purpose to engage in illicit sexual activity with a minor is not more than 30 years imprisonment. All offenses of conviction include a potential penalty of not more than a $250,000 fine and not less than five years to life of supervised release.

          The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Amanda Fields.

    # # #

    Additional information about the office of the

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

    https://www.justice.gov/edar

    X (formerly known as Twitter):

    @EDARNEWS 

    MIL Security OSI –

  • MIL-OSI Security: Lancaster, Texas, Man Found Guilty of Being a Felon in Possession of a Firearm

    Source: US FBI

          LITTLE ROCK—After a two-day trial, a Texas man has been convicted of being a felon in possession of a firearm. On Tuesday, a federal jury found Kaeron Washington, 33, Lancaster, Texas, guilty of being a felon in possession of a firearm, the sole count in the Indictment. Washington has previous convictions for aggravated robbery and drug possession.

          After deliberating less than two hours, the jury returned a verdict of guilty. United States District Judge Lee P. Rudofsky presided over the trial and will sentence Washington at a later date. The defendant faces a maximum sentence of ten years’ imprisonment.

          On February 18, 2022, physical surveillance was conducted at 7212 Geyer Springs Road, Little Rock, Arkansas. Law enforcement observed a group of individuals parked in front of a closed business on Geyer Springs at approximately 9:00 p.m. The occupants of the vehicle were observed smoking and passing items back and forth between vehicles for approximately 30 minutes. As investigators approached the vehicle, they activated their emergency lights and could smell an overwhelming odor of marijuana coming from the vehicles.

          Contact was made with Kaeron Washington, the driver of a white Mercedes. As investigators approached the vehicle, Washington was observed opening the driver’s door of the vehicle and throwing an item towards the rear of the vehicle. A bag of suspected marijuana was later located in the area. The passenger in Washington’s vehicle advised law enforcement officials that he had a gun at his feet. After the passenger was taken out of Washington’s vehicle, law enforcement seized the gun that was observed on the floorboard. An officer observed a small bag of suspected marijuana in the seat when the passenger exited the vehicle. During a further search of Washington’s vehicle, officers located a Glock pistol in the center console next to the driver’s seat.

          The investigation was conducted by the Federal Bureau of Investigation, Little Rock Police Department, and the GET Rock Task Force.

    # # #

    Additional information about the office of the

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

    https://www.justice.gov/edar

    X (formerly known as Twitter):

    @USAO_EDAR 

    MIL Security OSI –

  • MIL-OSI Security: Little Rock Man Sentenced to More Than 12 Years in Prison After Fleeing Police, Illegal Possession of Fentanyl

    Source: US FBI

          LITTLE ROCK—Andre Pride will spend the next 151 months in federal prison for possession with intent to distribute fentanyl. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by Chief United States District Judge Kristine G. Baker.

          Chief Judge Baker sentenced Pride to 151 months imprisonment and three years’ supervised release to follow his prison sentence. Pride faced a maximum sentence of not more than 20 years imprisonment. There is no parole in the federal system.

          On July 19, 2022, Pride, 36, of Little Rock, was indicted by a federal grand jury on two counts of possession with intent to distribute fentanyl. On May 5, 2023, Pride pleaded guilty to one count of possession with intent to distribute fentanyl.

          On June 13, 2019, Pride was driving a Can-Am motorcycle and while law enforcement officers were attempting to make contact with him, Pride rammed their vehicle and fled. While fleeing, Pride observed two marked law enforcement vehicles and quickly turned around. After turning around, Pride rammed another law enforcement vehicle and fled on foot. While fleeing, Pride removed a baggie of fentanyl from his pocket tore open the bag and attempted to spread the fentanyl in the yard of an unknown residence. Following the arrest of Pride, law enforcement officers retrieved 30 grams of fentanyl from the yard.

          The investigation was conducted by the Federal Bureau of Investigation.

    # # #

    Additional information about the office of the

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

    https://www.justice.gov/edar

    X (formerly known as Twitter):

    @USAO_EDAR 

    MIL Security OSI –

  • MIL-OSI Security: Drug Trafficking Results in Over a Dozen People Arrested on Federal Charges

    Source: US FBI

    Several Defendants Face Federal Drug, Gun, and Money Laundering Charges In Large Scale Drug Operation

          JONESBORO—Fifteen people were arrested Tuesday morning as part of a sweeping law enforcement operation that targeted associates of a drug organization responsible for the distribution of methamphetamine in the Northeast Arkansas area. Law enforcement officers previously arrested one person on Monday and served arrest warrants on an additional three people already in custody.

          The investigation began in August 2022 to combat a significant drug distribution organization operating in the Northeast Arkansas area. Numerous indictments, which were returned by a Grand Jury on April 2, 2024, and unsealed today, named several defendants who are charged with various drug, money laundering, and firearm offenses. Law enforcement officers arrested 15 individuals and served an arrest warrant Tuesday on two defendants already in federal custody and one in state custody.

          Prior to today’s arrests, the investigation had resulted in the seizure of 45 pounds of methamphetamine, 10 pounds of marijuana, one pound of cocaine, six firearms, various ammunition, and $125,000 in drug proceeds. During arrest operations on Tuesday, agents recovered additional methamphetamine, three firearms (one of which was defaced), ammunition, and approximately an additional $28,000 in suspected drug proceeds.

          “So many lives and communities have been destroyed by drugs and with today’s arrests, fifteen drug dealers have been taken off the streets,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “Where drugs are present, so are firearms and violence. Working with our federal, state, and local partners to keep our citizens safe from the violence that too often accompanies drug trafficking, will help to create safer communities for citizens in the Eastern District of Arkansas.”

          “Today’s arrests demonstrate how the FBI has zero tolerance for criminals who pollute our communities with dangerous narcotics,” Special Agent in Charge Alicia D. Corder, Special Agent in Charge, Federal Bureau of Investigations, Little Rock Field Office. “This was a collaborative effort between the FBI, Jonesboro Police Department, Craighead County Sheriff’s Office, Arkansas State Police, and several others. We will continue to work together to keep Arkansans safe and bring dangerous criminals to justice.”

          The investigation was conducted by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, 2nd Judicial District Drug Task Force, Jonesboro Police Department, Craighead County Sheriff’s Office, Crittenden County Sheriff’s Office, Arkansas State Police, Greene County Sheriff’s Office, Poinsett County Sheriff’s Office, and the Clay County Sheriff’s Office.

          The charges in today’s unsealed indictments include conspiracy to distribute and possess with intent to distribute methamphetamine; distribution and possession with intent to distribute methamphetamine; conspiracy to money launder, money laundering, possession of a firearm in furtherance of a drug trafficking crime; and felon in possession of a firearm and ammunition.

          The minimum penalty for the drug charges is not less than 10 years’ imprisonment and a $10,000,000 fine. The minimum penalty for possessing a firearm in furtherance of a drug-trafficking crime is not less than five years in prison and up to life imprisonment and a $250,000 fine.

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

          The defendants arrested today will appear before U.S. Magistrate Judge Benecia B. Moore on April 18, 2024, for plea and arraignment. Defendants who were already in custody will have arraignments scheduled later. Trial dates will be announced at plea and arraignment. The case is being prosecuted by Assistant United States Attorney Erin O’Leary. The defendants charged and in custody include:

    Cesar Cortez-Rocha, 51, Misson, Texas

    Amado Barranco, Jr. aka “Myo”, 55, McAllen, Texas

    Bobby Franklin Barber, 60, Jonesboro

    Misty Dawn Barber, 38, Jonesboro

    Jamie Lynn Patterson, 40, Jonesboro

    *Amie Dawn Eggers, 39, Jonesboro (already in federal custody on other charges)

    Carey Wayne Peden, 46, Little Rock

    Vance Allen Brown, 56, Hot Springs

    *Sir Edward Lee Qualls aka “Buddy”, 35, Earle (already in federal custody on related charges)

    Reginald Bogan aka “Smooth”, 37, Jonesboro

    **Melissa Bradley, 33, Jonesboro (already in custody on state charges)

    Jerry Crump, 55, Jonesboro

    Sandi Stanfill, 59, Paragould

    Delisha Pugh, 25, Earle

    Jennifer Jones, 37, Brookland

    William Jones, 28, Harrisburg

    Marcus McIntyre, 42, Memphis, Tennessee

    Harthoner Goforth, 38, Paragould

    Shauna Rutledge, 37, Hughes

    * already in federal custody

    ** in state custody

          An indictment contains only allegations. Defendants are presumed innocent unless and until proven guilty.

    # # #

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

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

    https://www.justice.gov/edar

    X (formerly known as Twitter):

    @USAO_EDAR 

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  • MIL-OSI Security: Two Former Arkansas Sheriff’s Deputies Plead Guilty to Federal Civil Rights Violations for Violently Assaulting a Man They Arrested

    Source: US FBI

    Two former Crawford County, Arkansas, sheriff’s deputies, Levi White, 34, and Zackary King, 28, pleaded guilty to federal civil rights offenses for using unlawful force on a man they arrested.

    “The defendants swore an oath to uphold the law, then violated that oath and abused their power by assaulting a person who was pinned to the ground and not resisting,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “These defendants will now face the serious consequences that result from their unlawful actions. The Justice Department will continue to protect the right of every person in this country to be free of excessive force by law enforcement officers.”  

    “The videos from this incident are a shocking display of the violent deprivation of civil rights committed by these officers,” said U.S. Attorney Clay Fowlkes for the Western District of Arkansas. “No person in police custody should ever feel threatened or should ever experience violence at the hands of those who are sworn to protect the public. We will continue to vigorously pursue justice in cases involving the violation of civil rights in the Western District of Arkansas.”

    “The violent and abusive actions of these two men, who were sworn to serve and protect our community, are unacceptable,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “Law enforcement officers hold positions with significant authority and influence, and their credibility in the eyes of the American people depends on their ability to maintain integrity. These guilty pleas serve as a reminder that the FBI will continue to hold accountable those who take advantage of their positions and will always fight to protect the civil rights of all Americans.”

    “Disgraceful actions, like those of the two Crawford County sheriff’s deputies, negatively impact all members of Arkansas law enforcement,” said Special Agent in Charge Alicia D. Corder of the FBI Little Rock Field Office. “A gun and a badge do not give someone the right to ignore the Constitution. The FBI’s ArkTrust Task Force will continue to work to restore the public’s trust in law enforcement by investigating officers who violate the civil rights of citizens in our community.”

    According to court documents, White, King and a third officer approached a man identified as R.W. in a gas station parking lot on Aug. 21, 2022, during their investigation into a person threatening a store attendant. R.W. lunged at White and tackled him, then all three officers quickly subdued R.W. and pinned him to the ground. After R.W. was pinned to the ground and no longer fighting the officers, King kicked R.W. in the back and struck R.W. once in the midsection with his fist. At approximately the same time, White punched R.W. at least nine times in the head, then lifted R.W.’s head and slammed it into the pavement. The third officer did not strike R.W. R.W. suffered head injuries from the assault.

    Sentencing hearings will be scheduled at a later date. White faces a maximum penalty of 10 years in prison, three years of supervised release and a fine of up to $250,000. King faces a maximum penalty of one year in prison, one year of supervised release and a fine of up to $100,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Little Rock Field Office and ARKTrust Task Force investigated the case.

    Special Litigation Counsel Michael J. Songer and Trial Attorneys Lia Rettammel and Anna Gotfryd of the Civil Rights Division and Assistant U.S. Attorneys Dustin Roberts and Devon Still for the Western District of Arkansas are prosecuting the case.

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