title: California Woman Sentenced to more than 5 Years’ Imprisonment for Methamphetamine and Cocaine Charge

body_text: United States Attorney Susan Lehr announced that Helen Nguyen, 31, of Culver City, California, was sentenced February 21, 2024, in federal court in Omaha, Nebraska for conspiracy to distribute methamphetamine and cocaine. United States District Court Judge Brian C. Buescher sentenced Nguyen to 66 months’ imprisonment. There is no parole in the federal system. After Nguyen’s release from prison, she will begin a 3-year term of supervised release. In October of 2021, members of the Omaha DEA Tactical Diversion Squad began investigating a dark net marketplace (DNM) vender operating under the moniker DIRTYRUGS, a source of supply brokering deals of controlled substances, to include meth and cocaine. The vendor used the Dark Net/Peer to Peer (P2P) messaging smart phone application and shipped the products via the United States Postal Service around the United States of America, to include the District of Nebraska. On four occasions during the investigation agents ordered controlled substances, including meth, from the DIRTYRUGS’S vendor page. The agents’ four orders were received at an undercover Nebraska residence and included more than 50 grams of meth. During the course of the investigation, agents learned that Helen Nguyen had sent the packages of meth received by the agents. A search warrant served on Nguyen’s iCloud account revealed that she was operating the DIRTYRUGS website and was conspiring with codefendant James Lau to deliver controlled substances on the Dark Net. On June 2, 2022, a Nebraska complaint and arrest warrants were obtained for Helen Nguyen and James Lau. Search warrants were obtained for both of their California residences and executed on June 8, 2022. Nguyen was stopped as she was leaving her residence. During a search of her vehicle agents located multiple types of controlled substances, to include meth, Adderall pills, Xanax, and Farmapram. A search of Nguyen’s residence revealed multiple items consistent with the shipping of Dark Net market packages. A search of Lau’s residence revealed approximately 1 kilogram of cocaine, counterfeit Adderall pills, and ecstasy pills. During a post arrest interview, Lau said he was working with Nguyen and knew she was using the Dark Net to distribute controlled substances. Lau said he was responsible for obtaining the drugs for sale, with the exception of the meth, which Nguyen was able to obtain. James Lau previously pled guilty to the conspiracy charge and was sentenced to 47 months on January 4, 2024. This case was investigated by the Drug Enforcement Administration.


title: Omaha Man Sentenced for Cocaine Conspiracy

component: Drug Enforcement Administration (DEA)

body_text: United States Attorney Susan Lehr announced that Gary Pope II, 42, of Omaha, Nebraska, was sentenced February 21, 2024, in federal court in Omaha for conspiracy to distribute cocaine. U.S. District Court Judge Brian C. Buescher sentenced Pope to 87 months’ imprisonment. There is no parole in the federal system. After Pope’s release from prison, he will begin a three-year term of supervised release. Law enforcement became aware of Pope as a dealer of cocaine in the Omaha area. This led to a three-month wiretap of Pope’s cell phone in 2022. The wiretap intercepts and resulting investigation confirmed that Pope would receive cocaine deliveries from Texas in kilogram quantities and sell the cocaine in lesser quantities in the Omaha area. As part of a plea agreement, Pope admitted to agreeing to distribute at least five kilograms of cocaine in Nebraska between January 19, 2022, and July 15, 2022. This case was investigated by the Drug Enforcement Administration. Pope has also pleaded guilty in the U.S. District Court for the Southern District of Iowa to two charges – possession with intent to distribute marijuana and carrying a firearm in relation to a drug trafficking crime. Sentencing in that case is scheduled for March 19, 2024.


title: Cedar Rapids Man Sentenced to Federal Prison for Selling Fentanyl

component: USAO - Iowa, Northern

body_text: A man who was selling fentanyl was sentenced today to more than three years in federal prison. Maurice Montez Tarver, age 30, from Cedar Rapids, Iowa, received the prison term after an August 30, 2023 guilty plea to one count of distribution and aiding and abetting the distribution of a controlled substance. Evidence at the plea and sentencing hearings showed that, on four separate occasions between December 2022 and February 2023, law enforcement officers conducted an undercover operation and purchased pills containing fentanyl from Tarver. Tarver was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Tarver was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Tarver is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Adam J. Vander Stoep and was investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Johnson County Drug Task Force and the Cedar Rapids Police Department. The Johnson County Drug Task Force consists of the Johnson County Sheriff’s Office, the Iowa City Police Department, the Coralville Police Department, the North Liberty Police Department, the University of Iowa Police Department, and the Iowa Division of Narcotics Enforcement. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-CR-41.


title: Northern Cambria Woman Sentenced for Tax and Wire Fraud

component: USAO - Pennsylvania, Western

body_text: JOHNSTOWN, Pa. – A resident of Northern Cambria, Pennsylvania, was sentenced in federal court on February 20, 2024, to a total of 12 months and one day in prison followed by two years of supervised release on her conviction of tax and wire fraud, United States Attorney Eric Olshan announced today. United States Senior District Judge Kim R. Gibson imposed the sentence on Sarah Stiles, 39. According to information presented to the Court, Stiles admitted that, in and around December 2019, she willfully failed to collect and pay over employees’ employment taxes, a task for which she was personally responsible as the vice president of a Northern Cambria business. She further admitted that, from on or about August 2, 2019, until on or about February 26, 2020, she knowingly and willfully conspired to commit wire fraud, in part by directing fraudulent payments from her employer to a fictitious company. Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government. United States Attorney Olshan commended the Internal Revenue Service, Federal Bureau of Investigation, Pennsylvania State Police, and Pennsylvania Office of Attorney General for the investigation that led to the successful prosecution of Stiles.


title: Former Philadelphia Resident Sentenced to Seven Years in Prison for Drug and Firearm Violations

body_text: PITTSBURGH, Pa. – A former resident of Philadelphia, Pennsylvania, has been sentenced in federal court to a total of 85 months in prison followed by five years of supervised release in connection with his federal drug and firearm convictions, United States Attorney Eric G. Olshan announced today. United States Chief District Judge Mark R. Hornak imposed the sentence on Khaleaf Lindsay, 27. According to information presented to the Court, Lindsay facilitated drug transactions in Butler and returned to Philadelphia with the profits. On August 2, 2021, law enforcement executed a search warrant upon a Butler apartment used by Lindsay in his drug operation. The search led to the seizure of a loaded handgun, bulk U.S. currency, and packaged controlled substances that included fluorofentanyl, fentanyl, and crack. Prior to imposing sentence, Judge Hornak stressed that Lindsay had returned to drug trafficking shortly after completing a sentence for his last felony drug offense. Federal law also prohibits possession of a firearm or ammunition by a convicted felon. Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government. United States Attorney Olshan commended the Butler County Anti-Drug Task Force and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Lindsay.


title: Jackson Center Man Sentenced to Prison for Drug Trafficking and Firearms Convictions

body_text: PITTSBURGH, Pa. – A resident of Jackson Center, Pennsylvania, has been sentenced to 33 months in federal prison for conspiring to distribute fentanyl, heroin, cocaine, and crack, and for receiving and transporting a firearm while under a felony indictment, United States Attorney Eric G. Olshan announced today. Michael Love, 46, was sentenced by United States District Judge Cathy Bissoon, who also ordered Love to serve three years of supervised release following his prison sentence. According to information presented to the Court, Love was responsible for the distribution of 20 grams of fentanyl, 10 grams of heroin, 20 grams of powder cocaine, and 20 grams of crack cocaine in Mercer County, Pennsylvania, in 2020 and 2021. The Court was also informed that, after Love was indicted for this conduct in 2021 and released on bond, he unlawfully received firearms in March 2022 while his felony indictment was pending. Assistant United States Attorneys Benjamin C. Dobkin and Craig W. Haller prosecuted this case on behalf of the United States. United States Attorney Olshan commended the Federal Bureau of Investigation, Drug Enforcement Administration, Pennsylvania Office of Attorney General, Bureau of Alcohol, Tobacco, Firearms and Explosives, Pennsylvania State Police, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, Hermitage Police Department, and Farrell Police Department for the investigation leading to the successful prosecution of Love. This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: South Portland Man Pleads Guilty to Gun and Drug Trafficking Charges

component: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

body_text: PORTLAND, Maine: A South Portland man pleaded guilty today in U.S. District Court in Portland to possession of a firearm by a prohibited person and possession of fentanyl and cocaine with intent to distribute. According to court records, in April 2023, law enforcement located Joshua Hopkins , 33, who had an active state arrest warrant, at a South Portland hotel. A search of a backpack Hopkins had been wearing revealed multiple scales, a single round of 7.62 mm x 39 mm ammunition, a blender that contained suspected fentanyl powder, smaller containers of additional suspected fentanyl powder, bags of suspected cocaine, and what appeared to be a substance used to “cut” drugs. A man with Hopkins told officers that Hopkins supplied him with drugs and had left a rifle and personal belongings in his car. Officers found a black Norinco SKS-style rifle in the vehicle. The round of ammunition in the backpack matched the caliber of the rifle. Hopkins is prohibited from possessing firearms due to prior felony convictions. Hopkins faces up to 15 years in prison on the gun charge and five to 40 years on the drug charge, with maximum fines of $250,000 and $5 million, respectively. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Bureau of Alcohol, Tobacco, Firearms and Explosives; South Portland Police Department; Maine Drug Enforcement Agency and U.S. Drug Enforcement Administration investigated the case. ###


title: Cincinnati woman pleads guilty to laundering more than $8 million for online romance scammers

component: USAO - Ohio, Southern

body_text: CINCINNATI – A Cincinnati woman pleaded guilty in U.S. District Court here today to laundering more than $8 million for online romance scammers. Pamela Moore, 65, pleaded guilty to one count of money laundering. She was charged by a bill of information last month. According to court documents, between 2020 and 2023, Moore’s personal and business bank accounts with multiple banks received more than $8 million in criminally derived funds. Moore personally received $1.7 million of the funds, which she used or converted to Bitcoin at the direction of the scammers. For example, Moore maintained multiple business bank accounts for PSM Custom Designs and Jewelries and used the purported jewelry business accounts solely for money laundering. The parties involved in Moore’s case have recommended a sentence of up to three years in prison. As part of her plea, Moore will pay $1,680,900 in restitution. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service - Criminal Investigation (IRS-CI); and Yvonne Dicristoforo, Special Agent in Charge, United States Secret Service; announced the guilty plea entered today before Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorneys Ebunoluwa A. Taiwo and Ryan A. Keefe are representing the United States in this case. # # #


title: Eastern Kentucky Doctor and Nurse  Sentenced for Conspiracy to  Illicitly Prescribe Controlled Substances

component: USAO - Kentucky, Eastern

body_text: LONDON, Ky. – A Kentucky physician, Crystal Compton, D.O., 43, and a nurse, Kayla Lambert, 36, were sentenced on Wednesday, by U.S. District Judge Robert Wier, to 100 months and 60 months in prison, respectively, for conspiracy to illegally prescribe controlled substances and related offenses. During the conspiracy, Compton was a licensed physician who practiced in several medical clinics in the Pikeville area. Lambert was a nurse who also worked at these medical clinics. According to evidence presented at trial, Compton and Lambert conspired to unlawfully distribute controlled substances using prescriptions that were not written for a legitimate medical purpose, within the usual course of professional practice. Compton and Lambert issued prescriptions for significant quantities and dosages of opioid painkillers, including oxycodone, methadone, and hydrocodone, sometimes in combination with other controlled substances, such as alprazolam and clonazepam. For example, one individual received prescriptions for 720 methadone 10mg and 180 alprazolam 2mg pills in a single month. Another received prescriptions for 480 methadone 10mg and 300 oxycodone 10mg pills in a single month. Compton also provided multiple prescriptions to Lambert, for 180 oxycodone 30mg pills. The evidence also established that Lambert sometimes issued illegitimate controlled substance prescriptions by signing Compton’s name to prescriptions. Under federal law, Compton and Lambert must serve 85 percent of their prison sentence. Upon his release from prison, they will be under the supervision of the U.S. Probation Office for three years. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence. The investigation was conducted by the DEA. Assistant U.S. Attorney Andrew Smith is prosecuting the case on behalf of the United States. — END —


title: U.S. and U.K. Disrupt LockBit Ransomware Variant

component: Office of the Attorney General

body_text: The Department of Justice joined the United Kingdom and international law enforcement partners in London today to announce the disruption of the LockBit ransomware group, one of the most active ransomware groups in the world that has targeted over 2,000 victims, received more than $120 million in ransom payments, and made ransom demands totaling hundreds of millions of dollars. The U.K. National Crime Agency’s (NCA) Cyber Division, working in cooperation with the Justice Department, Federal Bureau of Investigation (FBI), and other international law enforcement partners disrupted LockBit’s operations by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. “For years, LockBit associates have deployed these kinds of attacks again and again across the United States and around the world. Today, U.S. and U.K. law enforcement are taking away the keys to their criminal operation,” said Attorney General Merrick B. Garland. “And we are going a step further — we have also obtained keys from the seized LockBit infrastructure to help victims decrypt their captured systems and regain access to their data. LockBit is not the first ransomware variant the Justice Department and its international partners have dismantled. It will not be the last.” Additionally, the NCA, in cooperation with the FBI and international law enforcement partners, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Beginning today, victims targeted by this malware are encouraged to contact the FBI at https://lockbitvictims.ic3.gov/ to enable law enforcement to determine whether affected systems can be successfully decrypted. “Today’s actions are another down payment on our pledge to continue dismantling the ecosystem fueling cybercrime by prioritizing disruptions and placing victims first,” said Deputy Attorney General Lisa Monaco. “Using all our authorities and working alongside partners in the United Kingdom and around the world, we have now destroyed the online backbone of the LockBit group, one of the world’s most prolific ransomware gangs. But our work does not stop here: together with our partners, we are turning the tables on LockBit — providing decryption keys, unlocking victim data, and pursuing LockBit’s criminal affiliates around the globe.” The Justice Department also unsealed an indictment obtained in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries. Today, additional criminal charges against Kondratyev were unsealed in the Northern District of California related to his deployment in 2020 of ransomware against a victim located in California. Finally, the Department also unsealed two search warrants issued in the District of New Jersey that authorized the FBI to disrupt multiple U.S.-based servers used by LockBit members in connection with the LockBit disruption. As disclosed by those search warrants, those servers were used by LockBit administrators to host the so-called “StealBit” platform, a criminal tool used by LockBit members to organize and transfer victim data. “Today, the FBI and our partners have successfully disrupted the LockBit criminal ecosystem, which represents one of the most prolific ransomware variants across the globe,” said FBI Director Christopher A. Wray. “Through years of innovative investigative work, the FBI and our partners have significantly degraded the capabilities of those hackers responsible for launching crippling ransomware attacks against critical infrastructure and other public and private organizations around the world. This operation demonstrates both our capability and commitment to defend our nation's cybersecurity and national security from any malicious actor who seeks to impact our way of life. We will continue to work with our domestic and international allies to identify, disrupt, and deter cyber threats, and to hold the perpetrators accountable.” “I am proud to stand with our U.K. partners to announce the coordinated law enforcement actions announced today — including the disruption of the LockBit ransomware variant and charges against two Russian nationals for using LockBit to attack victims throughout the United States,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department's Criminal Division. “Through our attorneys in the Criminal Division’s Computer Crime and Intellectual Property Section and our U.S. Attorney’s office partners, we have seized U.S.-based infrastructure used by LockBit actors, and the FBI, along with international partners, have developed tools to help victims whose systems have been encrypted. These actions send a clear message: the Justice Department and its law enforcement partners are united in the fight against cybercrime and are committed to using all available tools to disrupt ransomware activity and bring cybercriminals to justice.” According to the indictment obtained in the District of New Jersey, from at least as early as January 2021, Sungatov allegedly deployed LockBit ransomware against victim corporations and took steps to fund additional LockBit attacks against other victims. Sungatov allegedly deployed LockBit ransomware against manufacturing, logistics, insurance, and other companies located in Minnesota, Indiana, Puerto Rico, Wisconsin, Florida, and New Mexico. Additionally, as early as August 2021, Kondratyev similarly began to allegedly deploy LockBit against multiple victims. Kondratyev, operating under the online alias “Bassterlord,” allegedly deployed LockBit against municipal and private targets in Oregon, Puerto Rico, and New York, as well as additional targets located in Singapore, Taiwan, and Lebanon. Both Sungatov and Kondratyev are alleged to have joined in the global LockBit conspiracy, also alleged to have included Russian nationals Mikhail Pavlovich Matveev and Mikhail Vasiliev, as well as other LockBit members, to develop and deploy LockBit ransomware and to extort payments from victim corporations. “Today’s indictment, unsealed as part of a global coordinated action against the most active ransomware group in the world, brings to five the total number of LockBit members charged by my office and our FBI and Computer Crime and Intellectual Property Section partners for their crimes,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “And, even with today’s disruption of LockBit, we will not stop there. Our investigation will continue, and we remain as determined as ever to identify and charge all of LockBit’s membership — from its developers and administrators to its affiliates. We will put a spotlight on them as wanted criminals. They will no longer hide in the shadows.” With the indictment unsealed today, a total of five LockBit members have now been charged for their participation in the LockBit conspiracy. In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Matveev with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime Rewards Program, with information accepted through the FBI tip website at https://tips.fbi.gov . In November 2022, a criminal complaint was filed in the District of New Jersey charging Vasiliev in connection with his participation in the LockBit global ransomware campaign. Vasiliev, a dual Russian-Canadian national, is currently in custody in Canada awaiting extradition to the United States. In June 2023, Russian national Ruslan Magomedovich Astamirov was charged by criminal complaint in the District of New Jersey for his participation in the LockBit conspiracy, including his deployment of LockBit against victims in Florida, Japan, France, and Kenya. Astamirov is currently in custody in the United States awaiting trial. Kondratyev, according to the indictment obtained in the Northern District of California and unsealed today, is also charged with three criminal counts arising from his use of the Sodinokibi, also known as REvil, ransomware variant to encrypt data, exfiltrate victim information, and extort a ransom payment from a corporate victim based in Alameda County, California. The LockBit ransomware variant first appeared around January 2020 and, leading into today’s operation, had grown into one of the most active and destructive variants in the world. LockBit members have executed attacks against more than 2,000 victims in the United States and around the world, making at least hundreds of millions of U.S. dollars in ransom demands and receiving over $120 million in ransom payments. The LockBit ransomware variant, like other major ransomware variants, operates in the “ransomware-as-a-service” (RaaS) model, in which administrators, also called developers, design the ransomware, recruit other members — called affiliates — to deploy it, and maintain an online software dashboard called a “control panel” to provide the affiliates with the tools necessary to deploy LockBit. Affiliates, in turn, identify and unlawfully access vulnerable computer systems, sometimes through their own hacking or at other times by purchasing stolen access credentials from others. Using the control panel operated by the developers, affiliates then deploy LockBit within the victim computer system, allowing them to encrypt and steal data for which a ransom is demanded to decrypt or avoid publication on a public website maintained by the LockBit developers, often called a data leak site. The FBI Newark Field Office is investigating the LockBit ransomware variant. Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey and Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the charges against Sungatov and Kondratyev unsealed today in the District of New Jersey. The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust and Office of International Affairs also provided significant assistance. The disruption announced today was the result of a joint operation between the FBI; NCA South West Regional Organised Crime Unit; France’s Gendarmerie Nationale Cyberspace Command; Germany’s Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt; Switzerland’s Federal Office of Police, Public Prosecutor’s Office of the Canton of Zurich, and Zurich Cantonal Police; Japan’s National Policy Agency; Australian Federal Police; Sweden’s Polismyndighetens; Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; Finland’s Poliisi; Europol; and Eurojust. The FBI Phoenix Field Office and Assistant U.S. Attorney Helen L. Gilbert are investigating and prosecuting the case against Kondratyev in the Northern District of California. Additionally, the Department of the Treasury’s Office of Foreign Assets Control announced today that it is designating Sungatov and Kondratyev for their roles in launching cyberattacks. As mentioned above, victims of LockBit should contact the FBI at https://lockbitvictims.ic3.gov for further information. Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A. Watch the Attorney General’s remarks: Remote video URL An indictment is merely an allegation. Under U.S. law, all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Indictment


component: USAO - New Jersey

body_text: NEWARK, N.J. – The Department of Justice joined the United Kingdom and international law enforcement partners in London today to announce the disruption of the LockBit ransomware group, one of the most active ransomware groups in the world that has targeted over 2,000 victims, received more than $120 million in ransom payments, and made ransom demands totaling hundreds of millions of dollars. The U.K. National Crime Agency’s Cyber Division, working in cooperation with the Justice Department, FBI, and other international law enforcement partners disrupted LockBit’s operations by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threating to publish stolen data. “For years, LockBit associates have deployed these kinds of attacks again and again across the United States and around the world. Today, U.S. and U.K. law enforcement are taking away the keys to their criminal operation,” said Attorney General Merrick B. Garland. “And we are going a step further — we have also obtained keys from the seized LockBit infrastructure to help victims decrypt their captured systems and regain access to their data. LockBit is not the first ransomware variant the Justice Department and its international partners have dismantled. It will not be the last.” “Today’s actions are another down payment on our pledge to continue dismantling the ecosystem fueling cybercrime by prioritizing disruptions and placing victims first,” said Deputy Attorney General Lisa Monaco. “Using all our authorities and working alongside partners in the United Kingdom and around the world, we have now destroyed the online backbone of the Lockbit group, one of the world’s most prolific ransomware gangs. But our work does not stop here: together with our partners, we are turning the tables on Lockbit — providing decryption keys, unlocking victim data, and pursuing Lockbit’s criminal affiliates around the globe.” Additionally, the National Crime Agency, in cooperation with the FBI and international law enforcement partners, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Beginning today, victims targeted by this malware are encouraged to contact the FBI at https://lockbitvictims.ic3.gov/ to enable law enforcement to determine whether affected systems can be successfully decrypted. The Justice Department also unsealed an indictment obtained in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries. Today, additional criminal charges against Kondratyev were unsealed in the Northern District of California related to his deployment in 2020 of ransomware against a victim located in California. Finally, the Department also unsealed two search warrants issued in the District of New Jersey that authorized the FBI to disrupt multiple U.S.-based servers used by LockBit members in connection with the LockBit disruption. As disclosed by those search warrants, those servers were used by LockBit administrators to host the so-called “StealBit” platform, a criminal tool used by LockBit members to organize and transfer victim data. “Today, the FBI and our partners have successfully disrupted the LockBit criminal ecosystem, which represents one of the most prolific ransomware variants across the globe,” said FBI Director Christopher A. Wray. “Through years of innovative investigative work, the FBI and our partners have significantly degraded the capabilities of those hackers responsible for launching crippling ransomware attacks against critical infrastructure and other public and private organizations around the world. This operation demonstrates both our capability and commitment to defend our nation's cybersecurity and national security from any malicious actor who seeks to impact our way of life. We will continue to work with our domestic and international allies to identify, disrupt, and deter cyber threats, and to hold the perpetrators accountable.” According to the indictment obtained in the District of New Jersey, from at least as early as January 2021, Sungatov allegedly deployed LockBit ransomware against victim corporations and took steps to fund additional LockBit attacks against other victims. Sungatov allegedly deployed LockBit ransomware against manufacturing, logistics, insurance, and other companies located in Minnesota, Indiana, Puerto Rico, Wisconsin, Florida, and New Mexico. Additionally, as early as August 2021, Kondratyev similarly began to allegedly deploy LockBit against multiple victims. Kondratyev, operating under the online alias “Bassterlord,” allegedly deployed LockBit against municipal and private targets in Oregon, Puerto Rico, and New York, as well as additional targets located in Singapore, Taiwan, and Lebanon. Both Sungatov and Kondratyev are alleged to have joined in the global LockBit conspiracy, also alleged to have included Russian nationals Mikhail Pavlovich Matveev and Mikhail Vasiliev, as well as other LockBit members, to develop and deploy LockBit ransomware and to extort payments from victim corporations. “Today’s indictment, unsealed as part of a global coordinated action against the most active ransomware group in the world, brings to five the total number of LockBit members charged by my office and our FBI and Computer Crime and Intellectual Property Section partners for their crimes. And, even with today’s disruption of LockBit, we will not stop there. Our investigation will continue, and we remain as determined as ever to identify and charge all of LockBit’s membership — from its developers and administrators to its affiliates. We will put a spotlight on them as wanted criminals. They will no longer hide in the shadows.” U.S. Attorney Philip R. Sellinger “Sheer terror fills everyone at hospitals, schools, companies, and government offices when they log into their computer systems and see they’ve been hacked,” FBI – Newark Special Agent in Charge James E. Dennehy said. “There's an immediate mad scramble to figure out how to get back their most vital information, and then a heated debate begins about whether or not to pay the demanded ransom. The chaos is the point. Most of the criminals who operate LockBit are just after the cash, but for the most notorious, it’s all about being savvier and smarter than everyone else. This intense investigation shows the FBI Newark, and our international law enforcement partners are disrupting these cyber groups, and more importantly - we are getting victims their information back. It’s incredible to think even starting way behind them, we catch up.” With the indictment unsealed today, a total of five LockBit members have now been charged for their participation in the LockBit conspiracy. In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Matveev with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime Rewards Program, with information accepted through the FBI tip website at www.tips.fbi.gov/ . In November 2022, a criminal complaint was filed in the District of New Jersey charging Vasiliev in connection with his participation in the LockBit global ransomware campaign. Vasiliev, a dual Russian-Canadian national, is currently in custody in Canada awaiting extradition to the United States. In June 2023, Russian national Ruslan Magomedovich Astamirov was charged by criminal complaint in the District of New Jersey for his participation in the LockBit conspiracy, including his deployment of LockBit against victims in Florida, Japan, France, and Kenya. Astamirov is currently in custody in the United States awaiting trial. Kondratyev, according to the indictment obtained in the Northern District of California and unsealed today, is also charged with three criminal counts arising from his use of the Sodinokibi, also known as REvil, ransomware variant to encrypt data, exfiltrate victim information, and extort a ransom payment from a corporate victim based in Alameda County, California. The LockBit ransomware variant first appeared around January 2020 and, leading into today’s operation, had grown into one of the most active and destructive variants in the world. LockBit members have executed attacks against more than 2,000 victims in the United States and around the world, making at least hundreds of millions of U.S. dollars in ransom demands and receiving over $120 million in ransom payments. The LockBit ransomware variant, like other major ransomware variants, operates in the “ransomware-as-a-service” (RaaS) model, in which administrators, also called developers, design the ransomware, recruit other members — called affiliates — to deploy it, and maintain an online software dashboard called a “control panel” to provide the affiliates with the tools necessary to deploy LockBit. Affiliates, in turn, identify and unlawfully access vulnerable computer systems, sometimes through their own hacking or at other times by purchasing stolen access credentials from others. Using the control panel operated by the developers, affiliates then deploy LockBit within the victim computer system, allowing them to encrypt and steal data for which a ransom is demanded to decrypt or avoid publication on a public website maintained by the LockBit developers, often called a data leak site. The FBI Newark Field Office is investigating the LockBit ransomware variant. Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey and Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the charges against Sungatov and Kondratyev unsealed today in the District of New Jersey. The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust and Office of International Affairs also provided significant assistance. The disruption announced today was the result of a joint operation between the FBI; National Crime Agency, South West Regional Organised Crime Unit; France’s Gendarmerie Nationale Cyberspace Command; Germany’s Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt; Switzerland’s Federal Office of Police, Public Prosecutor’s Office of the Canton of Zurich, and Zurich Cantonal Police; Japan’s National Policy Agency; Australian Federal Police; Sweden’s Polismyndighetens; Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; Finland’s Poliisi; Europol; and Eurojust. The FBI Phoenix Field Office and Assistant U.S. Attorney Helen L. Gilbert are investigating and prosecuting the case against Kondratyev in the Northern District of California. Additionally, the Department of the Treasury’s Office of Foreign Assets Control announced today that it is designating Sungatov and Kondratyev for their roles in launching cyberattacks. As mentioned above, victims of LockBit should contact the FBI at https://lockbitvictims.ic3.gov for further information. Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A. Watch the Attorney General’s remarks at www.youtube.com/watch?v=-jKykhKKMZw . An indictment is merely an allegation. Under U.S. law, all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. prs_lockbit_remarks.pdf lockbit.indictment.pdf


title: Farmington Woman Charged with Violations of the Federal Oil and Gas Royalty Management Act and Wire Fraud

component: USAO - New Mexico

body_text: ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and the Department of the Interior (DOI) Office of Inspector General announced today that a federal grand jury returned an indictment charging Teresa McCown with violations of the Federal Oil and Gas Royalty Management Act and wire fraud. McCown, 55, of Farmington, will remain on condition of release pending trial, which has not been scheduled. According to the indictment, between Jan. 24, 2017, and June 5, 2023, McCown owned M&M Production & Operation, Inc. (M&M) and Shoreline Oil & Gas Company (Shoreline). Both are in the business of extracting oil and gas from land leased to the companies by the federal government, the Navajo Nation, and by the Jicarilla Apache Nation and both companies sold extracted oil and gas to refiners. M&M and Shoreline are required to report the quantity and quality of oil and gas extracted from the leases and the revenue derived from sales of those materials to the Department of the Interior, Office of Natural Resources Revenue (ONRR), in Report of Sales and Royalty Remittance (Form ONRR-2014) forms and Oil and Gas Operations Reports (OGORs). The intent of these reports is to determine royalties due to the lessors: the Navajo Nation, the Jicarilla Apache Nation, and the federal government. After reviewing financial statements from refiners, ONRR determined that M&M and Shoreline’s Oil and Gas Operations and Sales and Royalty Remittance reports were incorrect. More specifically, a detailed analysis revealed over 400 incorrect reports on both Indian and Federal leases between January 2017 and July 2021. Furthermore, ONRR issued a Notice of Noncompliance to McCown in March 2021 for failing to report M&M's production of oil or gas from Federal and Indian properties from July 2019 through January 202l. ONRR is also authorized to issue civil penalties associated with the Notice of Noncompliance for failure to correct violations identified – and did issue those penalties. After receiving notices, penalties, and participating in teleconferences with regulators, McCown failed to correct false and inaccurate reporting. The total civil penalties assessed by ONRR for multiple violations by M&M and Shoreline total $1,707,339.58. For knowingly and willfully submitting false and inaccurate reports, McCown is charged in Counts 2-9 with wire fraud. Specifically, McCown submitted the false and inaccurate reports over the internet via ONRR’s website. The electronically submitted forms were transmitted over interstate wire from Farmington, New Mexico to servers in Raleigh, North Carolina. ONRR employees in Lakewood, Colorado then accessed the same data through an internal networking system for overseeing production reporting and to process royalty payments. An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, McCown faces up to 20 years in prison and $300,000 in additional fines. As part of her conditions of release, McCown may not work as a record-keeper or reporter in any industry subject to state or federal reporting or regulatory requirements, including oil and gas companies. The Department of the Interior, Office of Inspector General, Office of Investigations, Energy Investigations Unit investigated this case. Assistant U.S. Attorney Alexander Flores is prosecuting the case. View the Indictment # # # 24-75


title: Leader of drug trafficking organization imprisoned for international cocaine distribution scheme

component: USAO - Texas, Southern

body_text: HOUSTON – A 44-year-old local man has been sentenced for his involvement in an ongoing cocaine distribution scheme that spanned more than nine years, announced U.S. Attorney Alamdar S. Hamdani. Francisco Rene Luna pleaded guilty April 11, 2022. U.S. District Andrew S. Hanen has now ordered Luna to serve 216 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court found Luna to be a leader and organizer of the drug trafficking conspiracy who maintained three locations in Houston he used to stash drugs and drug proceeds. In handing down the sentence, the court noted Luna was directly involved in the importation of the drugs. “The Gulf Cartel is one of the most violent and brutal drug trafficking organizations, posing a threat to the citizens of both the United States and Mexico,” said Hamdani. “Luna, a trusted associate of this criminal enterprise, participated in the importation of thousands of kilograms of dangerous drugs into our country for sale in our communities. Today’s sentence reflects our commitment to dismantling destructive drug trafficking organizations, wherever they are.” Luna admitted he was a leader of a drug trafficking organization while residing in Houston. His role was to oversee the receipt of cocaine smuggled in from in vehicles on a monthly basis during the course of the eight-year conspiracy. The Gulf Cartel supplied the cocaine. The drugs were eventually further distributed to others across the United States. In December 2015, law enforcement seized 176 kilograms of cocaine, two kilograms of meth and $3.5 million in drug proceeds after executing search warrants at stash houses in Houston the organization controlled. Luna was a fugitive for four years until his arrest in Monterrey, Mexico, in June 2019 as part of a joint Mexican and American law enforcement operation. He was subsequently removed from Mexico and transported to Houston for prosecution. While he was a fugitive, Luna continued to run his drug operations from Mexico. To date, 15 have been convicted in relation to the conspiracy. Luna will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Houston Police Department conducted the investigation. This Operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations. The specific mission of the Houston Strike Force is to disrupt and dismantle the drug trafficking organizations that designated Consolidated Priority Organization or Regional Priority Organization Targets head with their affiliates and that impact Houston and south Texas. Assistant U.S. Attorneys Casey N. MacDonald and Anibal J. Alaniz prosecuted the case.


title: Convicted sex offender imprisoned on additional child pornography offenses

body_text: GALVESTON, Texas – A 37-year-old San Leon resident has been sentenced for possession and receipt of child pornography as well as distribution of child pornography, announced U.S. Attorney Alamdar S. Hamdani. Robert James Alden pleaded guilty April 11, 2023. U.S. District Judge Jeffrey V. Brown has now ordered Alden to serve a total of 240 months in federal prison. At the hearing, the court noted the sentence reflected the severity of the materials Alden was using and his propensity to predation. Alden was further ordered to pay a total of $22,000 in restitution to the known victims and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. At the time of the offense, Alden was a registered sex offender and will continue to be upon release from custody. “Today’s sentence makes it clear that online child predators will be prosecuted to the fullest extent of the law,” said Hamdani. “A convicted sex offender who continues seeking children online for sex will face swift and strong punishment.” At the time of the plea, Alden admitted to communicating with whom he believed to be a 13-year-old female. During the message exchange, Alden requested nude photos from the minor, sent a video of child pornography to her and suggested they produce their own pornographic videos. On March 9, 2021, authorities executed a federal search warrant and recovered multiple media devices, including his phone which contained multiple images and videos of child pornography. Alden will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Homeland Security Investigations-Galveston conducted the investigation with assistance from the Pearland Police Department and Houston Metro Internet Crimes Against Children Task Force. Assistant U.S. Attorney Richard W. Bennett prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources link on that page.


title: Fernandina Beach Man Pleads Guilty To Attempting To Entice An 11-Year-Old To Engage In Sexual Activity

component: USAO - Florida, Middle

body_text: Jacksonville, Florida – United States Attorney Roger B. Handberg announces that William Rand Paige, Jr. (50, Fernandina Beach) has pleaded guilty to using the internet to attempt to entice a 11-year-old child to engage in sexual activity. Paige faces a minimum mandatory penalty of 10 years, up to life, in federal prison and a potential life term of supervised release. A sentencing date has not yet been set. Paige was arrested on December 18, 2023, and has since been detained. According to court documents, on November 29, 2023, an undercover FBI agent in Jacksonville was conducting an online undercover operation to identify individuals who were seeking to meet and engage in sexual activity with children. Posing as a person with access to an 11-year-old child, the undercover agent was online in a particular social messaging app when he was contacted by an individual using the app user name “ah..904,” subsequently identified as Paige. After learning the age of the “child,” Paige asked the agent if he and the “child” would “like her to be touched all over.” In a series of online conversations on the app and emails from November 29 through December 11, 2023, Paige discussed his desire to meet the “child” and engage in sexual activity with her. On December 11, 2023, Paige contacted the undercover agent online and stated “What are your thoughts on meeting? You think [the “child”] would be receptive? Do you want to have it happen?” On December 4 and again on December 11, 2023, Paige sent the undercover agent several videos depicting young children being sexually abused. On December 18, 2023, FBI agents executed a federal search warrant at Paige’s residence and arrested Paige. A review of the content on Paige’s cellphone revealed that it contained at least one photo depicting the sexual abuse of a child, as well as the email account used by Paige to communicate with the undercover agent. This case was investigated by the Federal Bureau of Investigation, the Nassau County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.


title: Omaha Man Sentenced for Methamphetamine Conspiracy

body_text: United States Attorney Susan Lehr announced that Orlando Brewer, 54, of Omaha, Nebraska was sentenced today in federal court in Omaha for his involvement in a methamphetamine conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Brewer to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. As part of a long-term investigation into a Mexican-based Drug Trafficking Organization (DTO), DEA identified Maria Reyes-Monge as a meth distributor for the Omaha metro area. As part of the investigation, Reyes-Monge was kept under electronic and physical surveillance. She was observed on numerous occasions meeting with local dealers and supplying them with Mexican-imported meth. On October 5, 2022, Reyes-Monge was observed going to the Walgreen’s parking lot at 1606 S. 72nd Street. Reyes-Monge was observed meeting with Brewer and conducting what appeared to be a hand-to-hand narcotics transaction. A traffic stop was done on Brewer leaving the meeting, and it was determined that he had active felony arrest warrants. On the passenger side rear floorboard was a bag with 361 grams pure meth. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . This case was investigated by the DEA, Omaha Police Department, and Bellevue Police Department.


title: East Bay Resident Sentenced To Prison In Securities Fraud Scheme

component: USAO - California, Northern

body_text: OAKLAND – Dileep Kumar Reddy Kamujula was sentenced today to six months in prison, and ordered to forfeit $130,369.28, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Honorable Jon S. Tigar, U.S. District Judge. Kamujula, 37, of Fremont, pleaded guilty to the charge on November 3, 2023. According to his plea agreement, Kamujula admitted that between April 9 and April 30, 2020, he used confidential Twilio customer usage data when purchasing approximately 167 Twilio call options that he sold on May 7 and May 8, 2020. Kamujula obtained the confidential information from a relative who worked at Twilio and made a profit of more than $550,000 on the transactions. A federal grand jury indicted Kamujula on March 24, 2022, charging him with securities fraud, in violation of 18 U.S.C. §§ 1348 and 2 (Count One), and 15 U.S.C. §§78j(b) and 78ff, 17 C.F.R. §§ 240.10b-5, 240.10b5-1 (Count Two). Kamujula pleaded guilty to Count Two and Judge Tigar dismissed Count One on the government’s motion at the sentencing hearing. In addition to the prison term, Judge Tigar also sentenced the defendant to serve a three-year period of supervised release, to begin after the prison term, and ordered the defendant to forfeit $130,369.28. Judge Tigar ordered the defendant to surrender to begin serving his prison term on April 15, 2024. Assistant U.S. Attorney Garth Hire is prosecuting the case with the assistance of Aarian Beiti. The prosecution is the result of an investigation by the Federal Bureau of Investigation. The U.S. Attorney’s Office appreciates the assistance of the San Francisco Regional Office of the Securities and Exchange Commission and Financial Industry Regulatory Authority (FINRA).


title: U.S. And U.K. Disrupt Lockbit Ransomware Variant

body_text: SAN FRANCISCO – The Department of Justice joined the United Kingdom and international law enforcement partners in London today to announce the disruption of the LockBit ransomware group, one of the most active ransomware groups in the world that has targeted over 2,000 victims, received more than $120 million in ransom payments, and made ransom demands totaling hundreds of millions of dollars. The U.K. National Crime Agency’s (NCA) Cyber Division, working in cooperation with the Justice Department, Federal Bureau of Investigation (FBI), and other international law enforcement partners disrupted LockBit’s operations by seizing numerous public-facing websites used by LockBit to connect to the organization’s infrastructure and seizing control of servers used by LockBit administrators, thereby disrupting the ability of LockBit actors to attack and encrypt networks and extort victims by threatening to publish stolen data. “For years, LockBit associates have deployed these kinds of attacks again and again across the United States and around the world. Today, U.S. and U.K. law enforcement are taking away the keys to their criminal operation,” said Attorney General Merrick B. Garland. “And we are going a step further — we have also obtained keys from the seized LockBit infrastructure to help victims decrypt their captured systems and regain access to their data. LockBit is not the first ransomware variant the Justice Department and its international partners have dismantled. It will not be the last.” Additionally, the NCA, in cooperation with the FBI and international law enforcement partners, has developed decryption capabilities that may enable hundreds of victims around the world to restore systems encrypted using the LockBit ransomware variant. Beginning today, victims targeted by this malware are encouraged to contact the FBI at https://lockbitvictims.ic3.gov/ to enable law enforcement to determine whether affected systems can be successfully decrypted. “Today’s actions are another down payment on our pledge to continue dismantling the ecosystem fueling cybercrime by prioritizing disruptions and placing victims first,” said Deputy Attorney General Lisa Monaco. “Using all our authorities and working alongside partners in the United Kingdom and around the world, we have now destroyed the online backbone of the LockBit group, one of the world’s most prolific ransomware gangs. But our work does not stop here: together with our partners, we are turning the tables on LockBit — providing decryption keys, unlocking victim data, and pursuing LockBit’s criminal affiliates around the globe.” The Justice Department also unsealed an indictment obtained in the District of New Jersey charging Russian nationals Artur Sungatov and Ivan Kondratyev, also known as Bassterlord, with deploying LockBit against numerous victims throughout the United States, including businesses nationwide in the manufacturing and other industries, as well as victims around the world in the semiconductor and other industries. Additional criminal charges against Kondratyev were unsealed in the Northern District of California related to his deployment in 2020 of ransomware against a victim located in California. Finally, the Department also unsealed two search warrants issued in the District of New Jersey that authorized the FBI to disrupt multiple U.S.-based servers used by LockBit members in connection with the LockBit disruption. As disclosed by those search warrants, those servers were used by LockBit administrators to host the so-called “StealBit” platform, a criminal tool used by LockBit members to organize and transfer victim data. “Today, the FBI and our partners have successfully disrupted the LockBit criminal ecosystem, which represents one of the most prolific ransomware variants across the globe,” said FBI Director Christopher A. Wray. “Through years of innovative investigative work, the FBI and our partners have significantly degraded the capabilities of those hackers responsible for launching crippling ransomware attacks against critical infrastructure and other public and private organizations around the world. This operation demonstrates both our capability and commitment to defend our nation's cybersecurity and national security from any malicious actor who seeks to impact our way of life. We will continue to work with our domestic and international allies to identify, disrupt, and deter cyber threats, and to hold the perpetrators accountable.” According to the indictment obtained in the District of New Jersey, from at least as early as January 2021, Sungatov allegedly deployed LockBit ransomware against victim corporations and took steps to fund additional LockBit attacks against other victims. Sungatov allegedly deployed LockBit ransomware against manufacturing, logistics, insurance, and other companies located in Minnesota, Indiana, Puerto Rico, Wisconsin, Florida, and New Mexico. Additionally, as early as August 2021, Kondratyev similarly began to allegedly deploy LockBit against multiple victims. Kondratyev, operating under the online alias “Bassterlord,” allegedly deployed LockBit against municipal and private targets in Oregon, Puerto Rico, and New York, as well as additional targets located in Singapore, Taiwan, and Lebanon. Both Sungatov and Kondratyev are alleged to have joined in the global LockBit conspiracy, also alleged to have included Russian nationals Mikhail Pavlovich Matveev and Mikhail Vasiliev, as well as other LockBit members, to develop and deploy LockBit ransomware and to extort payments from victim corporations. “Today’s indictment, unsealed as part of a global coordinated action against the most active ransomware group in the world, brings to five the total number of LockBit members charged by my office and our FBI and Computer Crime and Intellectual Property Section partners for their crimes,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “And, even with today’s disruption of LockBit, we will not stop there. Our investigation will continue, and we remain as determined as ever to identify and charge all of LockBit’s membership — from its developers and administrators to its affiliates. We will put a spotlight on them as wanted criminals. They will no longer hide in the shadows.” With the indictment unsealed today, a total of five LockBit members have now been charged for their participation in the LockBit conspiracy. In May 2023, two indictments were unsealed in Washington, D.C., and the District of New Jersey charging Matveev with using different ransomware variants, including LockBit, to attack numerous victims throughout the United States, including the Washington, D.C., Metropolitan Police Department. Matveev is currently the subject of a reward of up to $10 million through the U.S. Department of State’s Transnational Organized Crime Rewards Program, with information accepted through the FBI tip website at https://tips.fbi.gov . In November 2022, a criminal complaint was filed in the District of New Jersey charging Vasiliev in connection with his participation in the LockBit global ransomware campaign. Vasiliev, a dual Russian-Canadian national, is currently in custody in Canada awaiting extradition to the United States. In June 2023, Russian national Ruslan Magomedovich Astamirov was charged by criminal complaint in the District of New Jersey for his participation in the LockBit conspiracy, including his deployment of LockBit against victims in Florida, Japan, France, and Kenya. Astamirov is currently in custody in the United States awaiting trial. Kondratyev, according to the indictment obtained in the Northern District of California and unsealed today, is also charged with three criminal counts arising from his use of a ransomware variant to encrypt data, exfiltrate victim information, and extort a ransom payment from a corporate victim based in Alameda County, California. The LockBit ransomware variant first appeared around January 2020 and, leading into today’s operation, had grown into one of the most active and destructive variants in the world. LockBit members have executed attacks against more than 2,000 victims in the United States and around the world, making at least hundreds of millions of U.S. dollars in ransom demands and receiving over $120 million in ransom payments. The LockBit ransomware variant, like other major ransomware variants, operates in the “ransomware-as-a-service” (RaaS) model, in which administrators, also called developers, design the ransomware, recruit other members — called affiliates — to deploy it, and maintain an online software dashboard called a “control panel” to provide the affiliates with the tools necessary to deploy LockBit. Affiliates, in turn, identify and unlawfully access vulnerable computer systems, sometimes through their own hacking or at other times by purchasing stolen access credentials from others. Using the control panel operated by the developers, affiliates then deploy LockBit within the victim computer system, allowing them to encrypt and steal data for which a ransom is demanded to decrypt or avoid publication on a public website maintained by the LockBit developers, often called a data leak site. The FBI Newark Field Office is investigating the LockBit ransomware variant. Assistant U.S. Attorneys Andrew M. Trombly, David E. Malagold, and Vinay Limbachia for the District of New Jersey and Trial Attorneys Jessica C. Peck, Debra Ireland, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the charges against Sungatov and Kondratyev unsealed today in the District of New Jersey. The Justice Department’s Cybercrime Liaison Prosecutor to Eurojust and Office of International Affairs also provided significant assistance. The disruption announced today was the result of a joint operation between the FBI; NCA South West Regional Organised Crime Unit; France’s Gendarmerie Nationale Cyberspace Command; Germany’s Landeskriminalamt Schleswig-Holstein and the Bundeskriminalamt; Switzerland’s Federal Office of Police, Public Prosecutor’s Office of the Canton of Zurich, and Zurich Cantonal Police; Japan’s National Policy Agency; Australian Federal Police; Sweden’s Polismyndighetens; Royal Canadian Mounted Police; Politie Dienst Regionale Recherche Oost-Brabant of the Netherlands; Finland’s Poliisi; Europol; and Eurojust. Assistant U.S. Attorney Helen L. Gilbert and the FBI Phoenix Field Office are investigating and prosecuting the case against Kondratyev in the Northern District of California. Additionally, the Department of the Treasury’s Office of Foreign Assets Control announced today that it is designating Sungatov and Kondratyev for their roles in launching cyberattacks. As mentioned above, victims of LockBit should contact the FBI at https://lockbitvictims.ic3.gov for further information. Additional details on protecting networks against LockBit ransomware are available at StopRansomware.gov. These include Cybersecurity and Infrastructure Security Agency Advisories AA23-325A, AA23-165A, and AA23-075A. Watch the Attorney General’s remarks at www.youtube.com/watch?v=-jKykhKKMZw . An indictment is merely an allegation. Under U.S. law, all defendants are presumed innocent unless and until proven guilty in a court of law. 1_indictment.pdf


title: Foreign National Pleads Guilty to Role in Cybercrime Schemes Involving Tens of Millions of Dollars in Losses

component: Federal Bureau of Investigation (FBI)

body_text: United States Attorney Susan Lehr announced that Vyacheslav Igorevich Penchukov pleaded guilty on February 15, 2024, in federal court in Lincoln, Nebraska for his role in two separate and wide-ranging malware schemes involving tens of millions of dollars in losses. Penchukov was a leader of two prolific malware groups that infected thousands of computers with malicious software. These criminal groups stole millions of dollars from their victims and even attacked a major hospital with ransomware, leaving it unable to provide critical care to patients for over two weeks,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Before his arrest and extradition to the United States, the defendant was a fugitive on the FBI’s most wanted list for nearly a decade. Today’s guilty pleas should serve as a clear warning: the Justice Department will never stop in its pursuit of cybercriminals.” According to court documents, Vyacheslav Igorevich Penchukov, also known as Vyacheslav Igoravich Andreev and Tank, 37, of Donetsk, helped lead a wide-ranging racketeering enterprise and conspiracy that infected thousands of business computers with malicious software known as “Zeus” beginning in May 2009. After installing “Zeus” without authorization on victims’ computers, the enterprise then used the malicious software to capture bank account information, passwords, personal identification numbers, and similar information necessary to log into online banking accounts. Penchukov and his co-conspirators then falsely represented to banks that they were employees of the victims and authorized to make transfers of funds from the victims’ bank accounts, causing the banks to make unauthorized transfers of funds from the victims’ accounts, resulting in millions of dollars in losses to the victims. The enterprise used residents of the United States and elsewhere as “money mules” to receive wired funds from victims’ bank accounts into their own bank accounts, who then withdrew and wired funds overseas to accounts controlled by Penchukov’s co-conspirators. Penchukov was charged with these offenses in the District of Nebraska. Given the severity of the charges in the case and the harm posed to American victims, Penchukov was added to the FBI’s Cyber Most Wanted List. “The U.S. Attorney’s Office for the District of Nebraska, in concert with the U.S. Attorney’s Office for the Eastern District of North Carolina and Justice Department’s Computer Crime and Intellectual Property Section, successfully coordinated the prosecution and plea of Penchukov,” said U.S. Attorney Susan T. Lehr for the District of Nebraska. “This case demonstrates that cybercrime can affect anyone, no matter where they are. It also demonstrates that no matter where the cybercriminals are, the department can and will bring them to justice.” Despite being added to the FBI’s Cyber Most Wanted List, Penchukov returned to criminal activity by helping lead a conspiracy that infected victim computers with IcedID or Bokbot, a new malware, from at least November 2018 through February 2021. IcedID was a sophisticated form of malicious software that collected and transmitted personal information from victims, including credentials for banking accounts. Penchukov and his co-conspirators used this information to steal from IcedID’s victims. IcedID also provided access to infected computers for other forms of malicious software, including ransomware. One such victim of this ransomware attack was the University of Vermont Medical Center, causing the loss of over $30 million from this victim alone, and left the medical center unable to provide many critical patient services for over two weeks, creating a risk of death or serious bodily injury to patients. Penchukov was charged with these offenses in the Eastern District of North Carolina. “Malware like IcedID bleeds billions from the American economy and puts our critical infrastructure and national security at risk,” said U.S. Attorney Michael Easley for the Eastern District of North Carolina. “The Justice Department and FBI Cyber Squad won’t stand by and watch it happen, and won’t quit coming for the world’s most wanted cybercriminals, no matter where they are in the world. This operation removed a key player from one of the world’s most notorious cybercriminal rings. Extradition is real. Anyone who infects American computers had better be prepared to answer to an American judge.” “Core to the FBI’s cyber strategy is our willingness to play the long game and take players off the field. Vyacheslav Penchukov was a prolific criminal for over a decade and his criminal activities caused millions in damages,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “The FBI would like to thank our partners in both public and private sectors, and domestically and globally, for helping us bring Penchukov to justice.” Penchukov was arrested in Switzerland in 2022 and extradited to the United States in 2023. Penchukov pleaded guilty to one count of conspiracy to commit a racketeer influenced and corrupt organizations (RICO) act offense for his leadership role in the “Zeus” enterprise. Penchukov (as Andreev) also pleaded guilty to one count of conspiracy to commit wire fraud for his leadership role in the IcedID malware group. He is scheduled to be sentenced by Senior United States District Court Judge John M. Gerrard on May 9, 2024 and faces a maximum penalty of 20 years in prison for each count. Judge Gerrard will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI Omaha and Charlotte Field Offices are investigating the case. Assistant Deputy Chief William A. Hall Jr. and Senior Counsels Frank Lin and Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney John E. Higgins for the District of Nebraska, and Assistant U.S. Attorney Brad DeVoe for the Eastern District of North Carolina are prosecuting the case. The Justice Department’s Office of International Affairs worked with the Swiss Federal Office of Justice to secure the arrest and extradition of Penchukov.


title: Co-Owner of Media Brokerage Firm Sentenced for Filing False Tax Returns

component: Tax Division

body_text: A former Maryland woman was sentenced today to 15 months in prison for filing a false tax return. According to court documents and statements made in court, Susan K. Patrick, now a resident of Cody, Wyoming, co-owned a media brokerage firm with her husband and hired an accounting firm to prepare business and personal tax returns for 2012 through 2014. Despite receiving the completed and accurate tax returns from the accounting firm, Patrick did not file them with the IRS. After the IRS contacted Patrick and requested that she file the unfiled returns, Patrick lied to the IRS, claiming that her accounting firm had timely filed the returns and that she would provide copies of those returns. Patrick, however, did not provide copies of the accurate returns that had been prepared by her accounting firm. Instead, Patrick doctored the business returns, removing $10 million in gross receipts received by her brokerage firm, and altered the personal returns by removing over $9.5 million in related income that she and her husband had earned from 2012 through 2014. Patrick also falsely backdated her signature on each tax return to make it appear as if the returns had been timely signed and mailed these false documents to the IRS, hoping to evade paying the full amount of taxes she owed. In addition, Patrick did not timely file business and individual returns for 2015, which she had also hired the accounting firm to prepare, nor did she pay the tax due and owing for the individual return. In total, Patrick sought to evade more than $2.5 million in taxes. In addition to the term of imprisonment, U.S. District Judge George L. Russell III for the District of Maryland ordered Patrick to serve one year of supervised release and to pay approximately $3,843,922 in restitution to the United States. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement. IRS Criminal Investigation investigated the case. Assistant Chief Thomas F. Koelbl and Trial Attorney Matthew L. Cofer of the Tax Division prosecuted the case.


title: South Bend Man Sentenced to 87 Months in Prison

body_text: SOUTH BEND – Tyshawn Kellogg, 29 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to felon in possession of a firearm, announced United States Attorney Clifford D. Johnson. Kellogg was sentenced to 87 months in prison followed by 2 years of supervised release. According to documents in the case, in January of 2023 Kellogg led police officers on a high-speed chase that ended when Kellogg crashed his car into a fence. Kellogg ran from the car, leaving behind a handgun, heroin, fentanyl, cocaine, and other controlled substances. Kellogg had previously been convicted of felony offenses and, as such, was prohibited from possessing the firearm in this case. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the South Bend Police Department, Indiana State Police, and St. Joseph County Prosecuting Attorney’s Office. The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Riverton man convicted of first-degree murder

body_text: Francis James Acebo Jr., age 34, of Riverton, Wyoming, was convicted on Feb.16 by a federal jury of first-degree murder and using, carrying, and discharging a firearm during and in relation to a crime of violence. The trial lasted five days and was held before U.S. District Court Judge Alan B. Johnson in Cheyenne. Acebo was indicted by a federal grand jury and pleaded not guilty to the charges in May 2023. According to evidence presented at trial and witnesses to the crime, Acebo entered the victim’s Riverton residence in the morning of Mar. 25, 2023, and shot the victim in the back of the head. Sentencing has been set for May 6, 2024. Acebo faces a mandatory life sentence for the first-degree murder conviction, another 10 years to life imprisonment for the firearm offense, and up to $500,000 in fines. A federal district court judge will determine and impose the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Special agents with the Bureau of Indian Affairs and the FBI investigated this crime. Assistant U.S. Attorneys Kerry Jacobson and T.J. Forwood prosecuted the case. Case No. 23-CR-00081


title: Former Tax Preparer Pleads Guilty in Pandemic Unemployment Fraud Scheme

component: USAO - Michigan, Eastern

body_text: DETROIT - Christopher Niebel, a former tax preparer who did business as “Tax Guy Chris,” pleaded guilty today to fraud and identity theft charges resulting from his participation in a pandemic unemployment insurance fraud scheme, announced United States Attorney Dawn N. Ison. Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Charles Miller of the Internal Revenue Service-Criminal Investigation Detroit Field Office and Michigan Unemployment Insurance Agency Director Julia Dale. Niebel, 45, pleaded guilty to one count of wire fraud and one count of aggravated identity theft arising out of a scheme in which Niebel used stolen identities to submit fraudulent claims for unemployment insurance benefits during the Covid 19 pandemic. According to the plea agreement, at the beginning of the pandemic, Niebel owned and operated a tax preparation service (“Tax Guy Chris”) in Allen Park, Michigan. Niebel also worked seasonally as a manager for Party City, a New-Jersey-based retail chain selling party supplies. Through his employment at Party City (a job he had held for many years), Niebel had access to the files of individuals who had worked or applied to work at the company. These files included the U.S. Citizenship and Immigration Service’s I-9 employment verification forms of Party City employees and applicants, in which the applicants documented their eligibility for employment in the United States. In approximately 2019, Niebel stole a number of these I-9 forms from Party City, which contained a substantial volume of personal identifying information (PII) of the applicants (including names, social security numbers, and dates of birth). Niebel filed these documents away for his future use. Once Pandemic Unemployment Assistance (PUA) funds became available, Niebel used the PII he had appropriated from Party City in a scheme to defraud the Michigan Unemployment Insurance Agency by submitting fictitious claims for those benefits. Specifically, Niebel submitted electronic applications seeking pandemic unemployment benefits using the PII of applicants for jobs with Party City, without the authorization, approval, or knowledge of those individuals. Niebel intentionally used the PII of individuals who were not from Michigan in submitting these claims, correctly surmising that such individuals would be unlikely to have submitted their own unemployment insurance claims in Michigan and thus making detection less likely. Niebel opened numerous bank accounts in Michigan in order to capture the PUA funds, which were wired to those accounts. After capturing the pandemic unemployment benefits from these fraudulent applications, Niebel spent the money on a variety of personal expenses, including food, lodging, lottery tickets, and casino gambling, Over the course of the scheme, Niebel obtained approximately $512,000 in pandemic unemployment assistance funds to which he was not entitled. “Stealing money from pandemic benefit programs is a serious offense that harms both the intended beneficiaries and taxpayers. Doing so by stealing people’s identities further compounds the harm to the public,” said U.S. Attorney Ison. “Today’s guilty plea is an important step towards ensuring accountability for Mr. Niebel’s crimes.” "Christopher Niebel fraudulently obtained unemployment insurance benefits by submitting claims using the names of identity theft victims. Niebel directed that the stolen benefits be deposited into bank accounts under his control. We will continue to work with our law enforcement and state workforce agency partners to protect the integrity of unemployment insurance benefit programs," said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General. “With today’s guilty plea, Christopher Niebel became another example of an individual who callously took advantage of pandemic benefit programs and was caught,” said Charles Miller, Special Agent in Charge of IRS-CI’s Detroit Field Office. “In this case, Niebel sought to defraud the U.S. Government and steal funds from our local citizens, for whom these funds were intended to aid and provide much needed relief during the Covid-19 pandemic. IRS-CI, along with our law enforcement partners, remains committed to combat and prevent this type of pandemic-related fraud.” “It is astounding the selfish schemes fraudsters cook up using fake identities to steal money meant for hard-working Michiganders,” said Michigan Unemployment Insurance Agency Director Julia Dale. “At the start of the pandemic, so many people needed help and all Chris Niebel thought about was how he could game the system for his personal gain. His actions – and those of more than 160 others charged so far with unemployment fraud – erodes the public’s trust. We won’t let that get in the way of wide-ranging reforms to win back that trust and position the Michigan UIA as a national model for fast, fair, and fraud-free service.” Sentencing is set for May 21, 2024, before United States District Judge Stephen J. Murphy III. Niebel faces a statutory maximum of 20 years imprisonment on the wire fraud count. The aggravated identity theft charge carries a two-year mandatory sentence of imprisonment, which must run consecutively to any custodial time imposed on the wire fraud charge. The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted jointly by the Department of Labor-Office of Inspector General and the Internal Revenue Service-Criminal Investigation.


title: Denham Springs Man Sentenced to 108 Months in Federal Prison for Access Device Fraud and Inducing a False Statement in the Application of a Firearm

component: USAO - Louisiana, Middle

body_text: United States Attorney Ronald C. Gathe, Jr. announced that the Honorable John deGravelles sentenced Jaylon Jamare Smullen, age 23, of Denham Springs, Louisiana, to 108 months in federal prison following his convictions for access device fraud and inducing a false statement in the application of a firearm. The Court further sentenced Smullen to serve three years of supervised release following his term of imprisonment and ordered that he pay a total of $27,836.11 in restitution to 49 victims. According to admissions made as part of his guilty plea, Smullen devised a scheme to fraudulently obtain firearms, AR-15 lower receivers, and parts used to build firearms from federally licensed firearms dealers (“FFLs”) located in the Middle District of Louisiana and outside of the State of Louisiana. To execute the scheme, Smullen recruited, induced, procured, aided and abetted straw purchasers, to complete the firearm transfer paperwork, such as ATF Form 4473, in person, in order to obtain the firearms and AR-15 receivers representing that they were the actual purchasers/transferees of the firearms or lower receivers. To fund his scheme he obtained and used stolen credit card information belonging to 49 individuals, including the 16-digit credit card numbers, cardholder names, and billing addresses, to order firearms, firearm parts, and accessories, from multiple FFLs located outside of the State of Louisiana, for shipment to FFLs and residential addresses in the Middle District of Louisiana. This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Baton Rouge City Police Department, and was prosecuted by Assistant United States Attorneys Kristin Lundin Craig and Lyman E. Thornton III.


title: Kent, Washington man who illegally purchased and trafficked more than 100 firearms pleads guilty to gun crimes

component: USAO - Washington, Western

body_text: Seattle – A South King County man pleaded guilty last week in U.S. District Court in Seattle to multiple firearms offenses for his purchase of more than 100 firearms in a “straw purchaser” scheme, announced U.S. Attorney Tessa M. Gorman. Dion Jamar Cooper, 31, of Kent, Washington was arrested in April 2023, following an investigation by Seattle Police and the Bureau of Alcohol, Tobacco, Firearms & Explosives. U.S. District Judge Ricardo S. Martinez scheduled sentencing for May 17, 2024. “Mr. Cooper lied on purchase forms and then trafficked more than 100 firearms on the streets of our community. He trafficked to those who are prohibited from possessing guns, because of their criminal history. It is not surprising that more than two dozen of the firearms have been linked to crimes,” said U.S. Attorney Gorman. “Congress has responded to the epidemic of gun violence with new laws targeting such “straw purchasing” and we are using them in this case.” According to the criminal complaint, the investigation began in late January 2023, with the assault and attempted robbery of a woman in Rainier Valley. The victim was able to flee in her car. Police found a firearm in her vehicle that had been dropped by one of the assailants. A check of the firearm revealed it had been purchased by Dion Jamar Cooper on December 10, 2022. That recovery led the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) to check Cooper’s purchase history. Cooper had purchased 107 firearms since June 2021. On 24 different instances he purchased multiple firearms – sometimes four or more. Of the 107 firearms identified as being purchased in this scheme, 26 of the guns have been recovered and linked to crimes. During March and April 2023, agents surveilled Cooper as he made arrangements to purchase additional firearms. Agents identified De’ondre Lamontia Phillips as the person who drove Cooper to the gun shops where he purchased the firearms. Phillips is prohibited from purchasing and possessing firearms due to convictions for distribution of heroin (2014) and convictions for illegal firearms possession and two counts of assault (2009). Surveillance of the two revealed Cooper turning the firearms over to Phillips who stored them in his residence. Cooper pleaded guilty to two counts of making a false statement in connection with the acquisition of firearms, one count of straw purchasing firearms and one count of trafficking in firearms. Phillips pleaded guilty last month to drug and gun possession crimes. He is scheduled for sentencing April 26, 2024. Straw Purchasing of Firearms and Trafficking in Firearms are both punishable by up to 15 years in prison. Making a false statement in connection with a firearms acquisition is punishable by up to ten years in prison. The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.


title: Jefferson County Man Admits Recording Sexual Abuse of a Minor

body_text: ST. LOUIS – A man from Pevely, Missouri on Tuesday admitted recording his sexual abuse of a minor. Matthew Gamel, 36, admitted that on at least four occasions, he recorded his sexual abuse of the victim. She was under 14 years of age at the time. He also acknowledged possessing more than 1,700 media files containing child sexual abuse material that he obtained online, in addition to the files documenting his abuse of the victim. Gamel pleaded guilty to one count of sexual exploitation of a minor and one count of receipt of child pornography. Gamel is scheduled to be sentenced May 22. As part of the plea, both sides have agreed to recommend a sentence of 25 years in prison. The Pevely Police Department and the FBI investigated the case. Assistant U.S. Attorney Michael Hayes is prosecuting 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Brazilian National Sentenced, Faces Deportation in Scheme That Defrauded a National Retailer of Nearly $300,000

component: USAO - Rhode Island

body_text: PROVIDENCE, RI – A former West Hartford, CT, resident who, for more than eight months prior to his arrest and detention nearly two years ago, operated a scheme in several states, from Maine to Rhode Island to Maryland, to steal and return merchandise to Home Depot, amassing and spending nearly $300,000 in store credit, has been sentenced to time served, ordered to pay full restitution, and faces deportation proceedings, announced United States Attorney Zachary A. Cunha. Alexandre Henrique Costa-Mota, 27, a Brazilian national, pleaded guilty in U.S. District Court in Rhode Island on November 9, 2023, to charges of wire fraud and conspiracy. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr. to time served, three years of federal supervised release, and to pay restitution to Home Depot in the amount of $297,332. Mr. Costa-Mota will be turned over to Immigration and Custom Enforcement to face deportation proceedings. According to court documents and information presented to the court, on at least 60 occasions spread over approximately eight months from mid-2021 to early 2022, Costa-Mota stole merchandise from the retailer then returned the merchandise for store credit. He amassed – and spent - $297,332 in store credit. He executed the scheme at no less than 40 different store locations. To evade detection, he used fake driver licenses for identification purposes. The case was prosecuted in U.S. District Court in Rhode Island by Assistant U.S. Attorneys Dulce Donovan and Milind M. Shah. The matter was investigated by the United States Secret Service. ###


title: Citrus Heights Man Indicted for Receiving Child Pornography

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — On Feb. 15, 2024, a federal grand jury returned an indictment against Kyle Travis Colton, 36, of Citrus Heights, charging him with receipt of child pornography, U.S. Attorney Phillip A. Talbert announced. According to court documents, between July 2022 and December 2023, Colton received visual depictions of children engaged in sexually explicit conduct. The indictment was unsealed today. This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Whitnee Goins is prosecuting the case. If convicted, Colton faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC .


title: Montgomery Man Sentenced to Prison and Ordered to Pay Nearly $370,000 for Schemes Targeting Elderly Victims

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross, along with Alabama Securities Commission Director Amanda Senn, announced that a federal judge sentenced Nicholas Houston Allen, 36, a resident of Montgomery, Alabama, to 76 months in prison for fraud targeting the elderly. The United States Secret Service and the Alabama Securities Commission Enforcement Section provided valuable assistance in the investigation and prosecution of this case. Previously, Allen pleaded guilty to two counts of wire fraud after scamming an elderly victim of approximately $250,000 between 2020 to 2021. Allen convinced the victim to give him money to remodel a home Allen claimed to have inherited from his mother. However, those claims were false, and Allen used the money for his own personal benefit. Court records show that this victim was not the only one to be targeted by Allen. During Allen’s sentencing hearing, four other elderly victims were identified. Allen solicited money and made numerous misrepresentations to each of them. He then used their funds for his own benefit. During the February 15, 2024, sentencing hearing, the judge characterized Allen’s conduct towards the victims as “cruel” and concluded that Allen’s conduct warranted a sentence even greater than the highest sentence recommended by the advisory Sentencing Guidelines. In addition to a prison sentence, the judge ordered Allen to pay restitution in the amount of $369,703.60. “Each year, far too many seniors are financially exploited,” said Acting United States Attorney Ross. “Crimes like this one can be devastating, depriving individuals of their resources, their independence, and their dignity. I am grateful to the other agencies involved in this case for identifying Nicholas Allen’s crimes and providing justice to his victims.” “The Alabama Securities Commission has no higher priority than fighting the scourge of elder abuse,” said Alabama Securities Commission Director Senn. “We are dedicated to working with our fellow federal and state law enforcement partners to eradicate this monstrous behavior. We will leave no stone unturned to find and punish its heartless perpetrators.” Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s efforts to combat elder abuse, neglect, and financial fraud scams that target our nation’s seniors. To learn more, visit https://www.justice.gov/elderjustice . The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). The United States Secret Service and the Alabama Securities Commission investigated this case. Assistant United States Attorney Michelle R. Turner and Special Assistant United States Attorney Louis V. Franklin, Sr., of the Alabama Securities Commission prosecuted the case.