title: Dark web administrator gets 30 years for sexually abusing minors and possessing thousands of child sexual abuse images

body_text: HOUSTON – A 37-year-old Houston resident has been sentenced for production and possession of child sexual abuse material (CSAM), announced U.S. Attorney Alamdar S. Hamdani. Robert Alexander Shouse pleaded guilty June 6 to two counts of sexual exploitation of a child, one count of attempted sexual exploitation of a child and one count of possession of child pornography. U.S. District Judge Keith P. Ellison has sentenced Shouse to a total of 360 months in federal prison. At the hearing, the court heard additional evidence regarding the seven victims including a minor victim who Shouse sexually abused, recorded and distributed the images and videos. The court heard that Shouse secretly recorded minors, preyed upon them online and obtained child pornography from two other minors without their knowledge. One of the victims, who was a minor at the time of the offense, was present at the hearing and addressed the court. The victim told the court that Shouse had filled a void for him and his grandmother after his parents were incarcerated. The victim stated that Shouse portrayed himself as a superhero, but was in fact, the villain. The court ordered Shouse to pay $153,500 in restitution to the victims and will serve 10years 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. Shouse will also be ordered to register as a sex offender. “Robert Shouse is the embodiment of evil,” said U.S. Attorney Alamdar S. Hamdani. “He used money and gifts to sexually abuse a nine-year-old child for six years. He used his computer skills to target hundreds of children, stealing their innocence and shattering their lives. In essence, there was nothing he wouldn’t do to satisfy his sick fantasies. Today’s sentence helps ensure that Shouse’s fantasies won’t become another child’s nightmare for decades to come.” “Robert Shouse engaged in horrific sexual abuse of minors, created child sexual abuse material involving those minors, and facilitated the trafficking of thousands of sexually explicit images and videos of minors through a dark web site that he controlled,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendant’s sexual exploitation of vulnerable children is despicable. The Criminal Division is fully committed to using all available tools to investigate and prosecute sexual crimes against children.” “The deviant, criminal actions of monsters like Robert Shouse are unforgivable and leave permanent trauma for their child victims,” said Special Agent in Charge Douglas Williams of the FBI Houston field office. “When these images and videos are posted and exchanged online, the victimization continues in perpetuity. Children are re-victimized as long as documentation of their sexual abuse is on the internet, available for others to access forever. This case is an example of the FBI’s commitment, and that of our national and international partners, to go after those who abuse one of our most vulnerable populations- our children.” Law enforcement identified Shouse in 2018 as an administrator for a CSAM website on the dark web which allowed facilitation of the sexual exploitation of minors while keeping secret the identities of the perpetrators. In his role, Shouse maintained the website which allowed users to post links to images and videos of CSAM. These links allowed a user to navigate to other websites, such as file-hosting websites where images and/or videos are stored, to download images and videos of child sexual abuse and child erotica. Additionally, forum users could discuss the sexual abuse of children. Authorities seized and terminated the website’s operation in 2019. In January 2019, authorities executed a search warrant at Shouse’s residence and seized multiple electronic devices. Forensic examination of the devices revealed more than 117,000 images and over 1,100 videos depicting children engaged in sexually explicit conduct including anal and vaginal penetration, masturbation, sadistic/masochistic conduct and lewd exhibition of genitalia. Over 4,000 images depicted the sexual exploitation of babies and toddlers. Additionally, law enforcement found images and videos of seven minor victims whom Shouse knew. Through the investigation, authorities learned he sexually abused one minor victim for a period of six years beginning when the victim was nine years old. Shouse befriended the child and provided money and gifts to the victim’s family. Shouse created over 925 images of child sexual abuse and 33 videos of this minor. In some of these images, Shouse made the victim wear a dog collar. Law enforcement found that Shouse had also secretly recorded two other minors, one in the bathroom and other in bedroom, and solicited two others online, asking them to send naked pictures of themselves. He also managed to download naked pictures of a couple who had shared them privately between them. Shouse will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. FBI-Texas City conducted the investigation with the assistance of the Fort Bend County District Attorney’s Office, Montgomery County Precinct Three Constable’s Office and Fort Bend County Sheriff’s Office. The Justice Department thanks the Dutch National Police and United Kingdom National Crime Agency for their valuable assistance. Assistant U.S. Attorney Kimberly Ann Leo and Trial Attorney James E. Burke IV from the Criminal Division’s Child Exploitation and Obscenity Section 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 tab on that page .


title: Newberry County Man Charged in Fatal Shooting of SLED K9 Indicted for Gun Charge

component: USAO - South Carolina

body_text: COLUMBIA, S.C. — A federal grand jury in Columbia returned a single-count indictment against James Robert Peterson, 37, of Prosperity, for being a felon in possession of a firearm. The indictment alleges that on June 11, Peterson was found in possession of firearm during an incident where he allegedly shot and killed South Carolina Law Enforcement Division (SLED) K9 Agent Coba while law enforcement was attempting to arrest him. Peterson has been charged in state court for a number of other charges related to the incident. Peterson has a previous felony conviction that prevents him from possessing a firearm. Peterson faces a maximum penalty of 15 years in federal prison and is currently detained awaiting trial. 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. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Carolina Law Enforcement Division, the Newberry County Sheriff's Office, and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Elle E. Klein is prosecuting the case. U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty. ###


title: Charleston Man Sentenced to Prison for Federal Gun Crime

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – Roger Wayne Legg, 33, of Charleston, was sentenced today to five years in prison, to be followed by five years of supervised release, for carrying a firearm during a drug trafficking crime. According to court documents and statements made in court, on September 20, 2023, Legg possessed approximately 694 grams of methamphetamine and a loaded Diamondback DB380 .380-caliber pistol in a backpack he was carrying in Charleston. Legg admitted that he intended to distribute the methamphetamine and possessed the firearm for security and protection while he sought to sell drugs. United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department-Special Enforcement Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Alexander A. Redmon prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-11. ###


title: LaPorte Man Sentenced to 120 Months in Prison

component: USAO - Indiana, Northern

body_text: SOUTH BEND – Matthew Frazier, 51 years old, of LaPorte, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after being found guilty of possession of child pornography following a one-day trial, announced United States Attorney Clifford D. Johnson. Frazier was sentenced to 120 months in prison followed by 7 years of supervised release. According to documents in the case, in September 2022, Frazier was on probation for prior state court convictions of child exploitation and possession of child pornography. A search of his residence resulted in the recovery of an electronic device which contained 18 photos and 18 videos of child sexual abuse material. This case was investigated by Homeland Security Investigations with assistance from the Indiana State Police Internet Crimes Against Children Task Force and the Michigan City Police Department. The case was prosecuted by Assistant United States Attorneys Hannah T Jones and Jerome W. McKeever. The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov


title: U.S. Citizen Who Fought for ISIS Pleads Guilty to Receiving Military Training from a Foreign Terrorist Organization

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON -- Lirim Sylejmani, 48, a Kosovo-born naturalized U.S. citizen, pleaded guilty today in U.S. District Court in Washington D.C., to receiving military training from the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. The plea was announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Matthew G. Olsen of the Department of Justice’s National Security Division, and FBI Special Agent in Charge Sanjay Virmani of the Washington Field Office Counterterrorism Division. “As the threat from terrorist groups such as ISIS persists, we will continue to work aggressively with our law enforcement partners to bring those who would seek to join and receive training from these groups to justice,” said U.S. Attorney Graves. “This prosecution demonstrates that those who seek to support terrorism will pay a heavy price.” According to court documents, from November 2015 through February 2019, Sylejmani received military training from ISIS in Syria. Sylejmani was captured by the Syrian Democratic Forces (SDF) in 2019, and spoke to a number of media outlets about his time with ISIS. In November 2015, Sylejmani, a naturalized U.S. citizen living in Kosovo, decided to travel to Syria with his family to join ISIS. After entering Syria, Sylejmani completed his ISIS intake process. He adopted the name Abu Sulayman al-Kosovi and trained to be a soldier with other ISIS recruits. Sylejmani’ s military training included instruction on how to assemble and fire an AK-47 rifle, as well as how to use a PK Machine gun, M-16 rifle and grenades. Upon completion of the 21-day military training, ISIS assigned Sylejmani to a battalion in Mosul, Iraq, and issued him an AK-47, four AK-47 magazines, a belt to hold the magazines and two grenades. Sylejmani pledged “bayat”(allegiance) to Abu Bakr Al-Baghdadi, the leader of ISIS, and to the ISIS organization, in front of an Iraqi ISIS member. In May 2016, the defendant reported for ribat (guard) duty on the front line of the Manbij offensive. The defendant brought his gun belt, AK-47 and magazines to his ribat assignment. During a battle with Coalition Forces he was hit with shrapnel in his legs. After receiving these injuries, he eventually was reassigned to a new battalion in the fall of 2017. Sylejmani also received payments from ISIS for his services. Between November 2017 and February 2019, Sylejmani moved his family southeast to Baghouz, Syria, as the territorial Caliphate of ISIS collapsed. On February 27, 2019, Sylejmani and his family were captured by Coalition Forces. Sylejmani was jailed by the SDF in Syria at the Dashisha prison. He was transferred to United States law enforcement personnel on September 15, 2020, to face criminal charges in the District of Columbia. This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force. This case is being prosecuted by Assistant U.S Attorneys Brenda J. Johnson, Steven Wasserman and Kimberly Paschall of the National Security Section, and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.


title: Granger Man Sentenced to 121 Months in Prison

body_text: SOUTH BEND – Timothy Wyllie, 60 years old, of Granger, Indiana, was sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to possessing child pornography, announced United States Attorney Clifford D. Johnson. Wyllie was sentenced to 121 months in prison followed by 15 years of supervised release. According to documents in the case, in April 2023, Wyllie was released from prison after serving two terms totaling nearly 20 years for state child molestation and federal distribution of child pornography convictions. Within two months of his release from incarceration, while under federal supervised release and state parole, he began uploading numerous files of child sexual abuse material to various social media platforms and also downloaded hundreds of images of child sexual abuse material from the internet. This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Hannah T Jones and Joseph P. Falvey. The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .


title: U.S. Attorney's Office Secures Guilty Plea and 15-Year Sentence for Gallup Duo in 2021 Armed Robbery Case

body_text: ALBUQUERQUE – A Gallup woman has been sentenced to 15 years in federal prison for her role in the armed robbery of a local business in 2021, while her brother has pleaded guilty to robbery and federal firearms charges, joining two other co-conspirators involved in the crime. There is no parole in the federal system. According to court documents, on the afternoon of December 4, 2021, Gallup Police responded to a robbery at C & R Insurance on US Highway 491. A woman and two men entered the business, demanding money while brandishing firearms. The female suspect fired a shot into the ceiling, causing panic among employees and customers. Witnesses reported hearing a loud pop and seeing the suspects dressed in dark clothing. Surveillance footage showed Amber Yazzie , 29, and her brother Gregory Yazzie , 28, both armed. Amber Yazzie fired a gun into the ceiling and demanded cash while Gregory Yazzie stood guard by the door as an accomplice collected over $4,000 from the registers. Following the incident, the suspects fled to Albuquerque, where they used stolen funds for shopping. Law enforcement obtained receipts and video evidence of their purchases. The robbery forced C & R Insurance to close for a week, significantly impacting its operations. The business serves around 60,000 customers across New Mexico, Arizona, and Colorado. The Yazzie ’s co-defendants Randy Joe and Chadyne Tohe pleaded guilty and are pending sentencing. At sentencing, Gregory Yazzie faces up to life in prison followed by up to five years of supervised release. Upon her release from prison, Amber Yazzie will be subject to three years of supervised release. U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today. The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Public Safety, the Navajo Nation Police Department, the Gallup Police Department and the McKinley County Sheriff’s Office. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.


title: Hammond Man Found Guilty After 3-Day Jury Trial

body_text: HAMMOND –Michael Swiger, age 41, of Hammond, Indiana was convicted of distribution and attempted distribution of child pornography after a three-day jury trial before United States District Court Judge Gretchen S. Lund, announced United States Attorney Clifford D. Johnson. Swiger was charged with distributing videos of child sexual abuse material over a social media application on April 4, 2022, and was also charged with possessing images and videos of child sexual abuse material on April 5, 2022. This case was the result of an investigation by Homeland Security Investigations (Chicago and St. Paul) with assistance from the Hammond Police Department, and was prosecuted by Assistant United States Attorneys Emily A. Morgan, Caitlin M. Padula, and Thomas M. McGrath. The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .


title: Former California Man Sentenced for Tax Fraud

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Richard Jason Mountford, formerly of Monterey County and now of Las Vegas, Nevada, was sentenced today by U.S. Chief District Judge Troy L. Nunley to 27 months in prison for conspiring to file false claims against the United States. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Phillip A. Talbert for the Eastern District of California made the announcement. “Tax fraud schemes like the defendant’s cost the government millions of dollars a year and can lead to substantial prison time,” said U.S. Attorney Talbert. “The U.S. Attorney’s Office remains committed to working with IRS Criminal Investigation and other law enforcement partners to investigate and prosecute tax fraud.” “Richard Mountford is a serial tax cheat who repeatedly schemed to steal from American taxpayers, including two people whose identities he used to file fraudulent tax returns, to the sum of nearly $875,000 in refunds,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “People like Mr. Mountford undermine the tax system and place additional burden on honest taxpayers, and IRS-CI will remain ever-vigilant to ensure people like him face justice.” According to court documents and statements made in court, from 2016 to 2020, Mountford conspired with another person to submit false individual income tax returns seeking refunds to which they were not entitled. Mountford and his co-conspirator filed false income tax returns in their own names, as well as in the names of two other unwitting individuals, that falsely reported they received wages from a bogus employer from which taxes were withheld and then claimed a refund based on those withholdings. Most of the returns filed as part of the scheme also falsely reported alimony payments to increase the refund amount. As a result of his criminal conduct, Mountford and his co-conspirator received $873,723.53 from the IRS. Mountford deposited $757,075.53 of those funds into his own bank accounts and subsequently purchased nearly $360,000 worth of new cars. Mountford also distributed about $170,000 in cash and gold bars to his co‑conspirator, as compensation for his role in the scheme. In addition to his prison sentence, Judge Nunley ordered Mountford to serve one year of supervised release and to pay $757,075.53 in restitution to the United States. This case was the product of an investigation by IRS Criminal Investigation. Trial Attorneys John C. Gerardi and Charles A. O’Reilly of the Tax Division and Assistant U.S. Attorney Dhruv M. Sharma prosecuted the case.


title: Fort Dodge Woman Sentenced to 12 Years in Federal Prison for Meth Conspiracy Conviction

component: USAO - Iowa, Northern

body_text: A woman who conspired to distribute methamphetamine was sentenced on December 12, 2024, in federal court in Sioux City. Amanda Johnson, f/k/a Amanda Adams, 35, from Fort Dodge, Iowa, pled guilty on July 31, 2024, to conspiracy to distribute methamphetamine and distribution of methamphetamine. In 2020, Johnson was convicted in federal court of the same conduct - conspiracy to distribute methamphetamine and possession with intent to distribute and aiding and abetting another in the possession with intent to distribute methamphetamine, for which she was on supervised release during her commission of this offense. Evidence at the plea and sentencing hearings, showed Johnson’s involvement in a conspiracy that distributed more than 1500 grams of methamphetamine in the Fort Dodge area for six months in 2023. On November 15, 2023, Johnson and another distributed about ¼ pound methamphetamine in a controlled drug purchase transaction in Waterloo, Iowa. On December 4, 2023, Johnson distributed approximately 2 grams of methamphetamine to an undercover agent, after making an agreement to distribute ¼ pound methamphetamine in a controlled drug purchase and then fled the scene. Sentencing was held before United States District Court Judge Leonard T. Strand. Johnson was sentenced to 144 months’ imprisonment and must serve a term of eight years of supervised release following the imprisonment. Johnson was also sentenced to an additional 24 months’ imprisonment, consecutive to her sentence in this case, for revocation of her supervised release. There is no parole in the federal system. Johnson remains in custody of the United States Marshal until she can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, the Iowa DCI Laboratory, Fort Dodge Iowa Police Department, Webster County Sheriff’s Office, Carroll County Sheriff’s Office, and the Waterloo, Iowa, based Tri-County Drug Task Force. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-3005. Follow us on X @USAO_NDIA.


title: Rydox Cybercrime Marketplace Shut Down and Three Administrators Arrested

component: USAO - Pennsylvania, Western

body_text: The Justice Department today announced the seizure of Rydox, an illicit website and marketplace dedicated to selling stolen personal information, access devices, and other tools for carrying out cybercrime and fraud, and the arrest of Rydox administrators and Kosovo nationals Ardit Kutleshi, 26, and Jetmir Kutleshi, 28. Both defendants were arrested earlier today in Kosovo by Kosovo law enforcement pursuant to a U.S. request for extradition. They are currently awaiting extradition to the United States to face an indictment unsealed today in the Western District of Pennsylvania. A third administrator of the Rydox marketplace, Kosovo national Shpend Sokoli, was also arrested earlier today in Albania by Albania’s Special Anti-Corruption Body (SPAK). Sokoli is expected to be charged and prosecuted in Albania. According to the indictment, the Rydox marketplace has conducted over 7,600 sales of personally identifiable information (PII), stolen access devices, and cybercrime tools, which generated at least $230,000 in revenue since its inception in or around February 2016. These sales included PII, credit card information, and login credentials stolen from thousands of victims residing in the United States. In addition, the Rydox site has offered for sale at least 321,372 cybercrime products to over 18,000 users including stolen PII such as names, addresses, and social security numbers; access devices such as stolen credentials for online accounts and credit card information; and cybercrime tools such as scam pages, spamming logs, and spamming tutorials. “The Rydox marketplace was a one-stop shop where upwards of 18,000 of its cybercriminal customers could choose from more than 300,000 cybercrime tools,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “While cybercrime often involves conduct occurring overseas and the actions of foreign nationals, its harms can be devastatingly local, with residents in our own communities suffering financial ruin as a result of the theft and misuse of their sensitive personal information. Today’s takedown reinforces our steadfast message that the Western District of Pennsylvania and our domestic and international law enforcement partners will use every available tool to hold accountable those who pursue illicit profit at the expense of ordinary citizens around the world.” “The success of this international operation underscores the power of collaboration between the FBI and our partners worldwide,” said Special Agent in Charge Kevin Rojek of the FBI Pittsburgh Field Office. “It also serves as a clear warning: those who go after innocent people for financial gain will be pursued and brought to justice no matter where they are in the world. This operation marks a major blow against the criminal underground that seeks to profit from stolen information and fuels global cybercrime.” “The indictment alleges that, for more than eight years, the defendants administered an illicit online marketplace that sold PII, credit card information, and login credentials that had been stolen from thousands of U.S. victims,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today, we announce that, working with our domestic and foreign law enforcement partners, we have dismantled the marketplace, arrested its administrators, and seized their criminal proceeds. This announcement is a powerful demonstration of the value of our partnerships on cybercrime, without which these arrests and seizures would not have been possible.” As part of the actions announced today, the United States also obtained judicial authorization to seize the domain www.Rydox.cc, which hosted and facilitated access to the Rydox website. The seizure of this domain by the government will prevent the owners and third parties from using the site to continue to buy and sell cybercrime tools and stolen personal information. Anyone visiting this site will now see a seizure banner that notifies them that the domain has been seized by federal authorities. Rydox Domain Splash Page In coordination with today’s actions, the FBI and Royal Malaysian Police seized servers in Kuala Lumpur, Malaysia, that hosted the Rydox illicit marketplace and took the Rydox website offline. The United States also obtained judicial authorization to seize approximately $225,000 worth of cryptocurrency from accounts controlled by the defendants. Ardit Kutleshi and Jetmir Kutleshi are each charged with two counts of identity theft, one count of conspiracy to commit identity theft, one count of aggravated identity theft, one count of access device fraud, and one count of money laundering, all arising from their roles as administrators of the Rydox website. If convicted, they each face a maximum penalty of 20 years in prison for the money laundering offense, a maximum penalty of 10 years in prison for the access device fraud offense, a maximum penalty of five years in prison for each of the identity theft offenses, and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge, which is required to run consecutively to any other sentence imposed. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI Pittsburgh Field Office investigated this case in coordination with the Kosovo State Prosecutor’s Special Prosecution Office, Kosovo Police’s Cybercrime Investigation Directorate, SPAK, Attorney General’s Chambers of Malaysia, and Royal Malaysia Police’s Commercial Crime Investigation Department. Assistant U.S. Attorney Nicole Stockey for the Western District of Pennsylvania and Senior Counsel Thomas Dougherty of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Pittsburgh Man Sentenced to Three Years of Prison and $100,000 Fine for Bankruptcy and Mail Fraud Conviction Related to South Side Property

body_text: PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 36 months of incarceration, a $100,000 fine, and three years of supervised release on his conviction of bankruptcy fraud and mail fraud, United States Attorney Eric G. Olshan announced today. United States District Judge Christy Criswell Wiegand imposed the sentence on Prasad Margabandhu, of Pittsburgh’s Mt. Lebanon suburb. According to information presented to the Court, from March 2019 to June 2022, Margabandhu engaged in a scheme to defraud the bankruptcy court by filing multiple bankruptcy petitions in the names of companies he controlled called “RSP Pittsburgh” and “Shane Tracy Enterprises” solely to delay efforts by creditors such as the mortgage holder and taxing bodies to execute on judgments against a property at 1925 East Carson Street in Pittsburgh. With respect to the charge of mail fraud, Margabandhu admitted that his insurance claim relating to a June 2022 fire that destroyed the East Carson Street property was fraudulent. In particular, Margabandhu admitted that he had made several materially false statements to the company that insured the property. Margabandhu has been ordered to voluntarily surrender to the United States Marshals Service on January 8, 2025, to begin serving his sentence. Assistant United States Attorneys Gregory C. Melucci and Shaun E. Sweeney prosecuted this case on behalf of the government. United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service, Federal Bureau of Investigation, and Office of the United States Trustee for the investigation leading to the successful prosecution of Margabandhu.


title: Babysitter Sentenced to 60 Years for Filming Assaults on Young Charges

component: USAO - Texas, Northern

body_text: An Arlington babysitter who sexually exploited more than a dozen young clients has been sentenced to 60 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Kaleb Layne Nix, 26, was indicted in July. He pleaded guilty in August to two counts of sexual exploitation of children and was sentenced Thursday to 720 months in federal prison (360 months on count two and 360 months on count five, to run consecutively) by U.S. District Judge Mark Pittman. The judge also ruled that Mr. Nix’s sentence would run consecutive to any sentence handed down in the state’s pending sexual abuse and child pornography cases against him. According to court documents, the investigations began with a cybertip from the National Center for Missing & Exploited Children (NCMEC) about an internet user who uploaded files containing sexually explicit images of children. Agents identified the user as Mr. Nix and executed a search warrant on his phone, where they found multiple videos and images of Mr. Nix sexually exploiting at least 15 boys and girls between the ages of three and seven. A parent told investigators that his family used an online childcare service to schedule babysitters, and provided Mr. Nix’s profile photo. Homeland Security investigations, the Arlington Police Department, and the Denton Police Department conducted the investigation. Assistant U.S. Attorney Aisha Saleem prosecuted the case.


title: Jackson Man Pleads Guilty to Conspiracy to Possess  with Intent to Distribute Methamphetamine

body_text: Jackson, Mississippi – A Jackson man pled guilty to conspiracy to possess with intent to distribute methamphetamine. On December 11, 2024, after eight days of trial in federal court, Marcus Davis, 44, pled guilty to his involvement in a methamphetamine distribution conspiracy. Prosecutors presented evidence and testimony at trial that Davis conspired with another individual to possess with intent to distribute two-and-one-half pounds of methamphetamine over a nine-day period in December of 2019. Davis is scheduled to be sentenced on March 10, 2025, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement. The FBI investigated the case. Assistant U.S. Attorneys Shundral Cole and Samuel Goff are prosecuting the case.


title: Jury Convicts Granite City Woman of Conspiring to Commit Arson on Residential Properties for Insurance Payouts

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

body_text: EAST ST. LOUIS, Ill. – A southern Illinois jury convicted a woman of conspiring to burn properties in East St. Louis, Illinois, and Florissant, Missouri, and setting fire to an apartment in St. Louis to collect insurance benefits. Evette B. Osuegbu, 62, was convicted of one count of conspiracy to commit mail and wire fraud, two counts of mail fraud, ten counts of wire fraud, one count of conspiracy to commit arson and one count of use of fire to commit a federal felony. Osuegbu’s sentencing hearing is scheduled for April 23, 2025. Co-defendant Rufis A. Jefferson, 47, of Venice, pleaded guilty in January and is scheduled to be sentenced on Feb. 6, 2025, at the federal courthouse in East St. Louis. “The pair are guilty of conspiring together to commit arson to collect fraudulent insurance benefits, and they put unsuspecting neighbors in danger for their own callous greed,” said U.S. Attorney Rachelle Aud Crowe. “I appreciate ATF’s efforts to lead an extensive investigation to bring these perpetrators to justice.” According to court documents and evidence presented during the trial, the pair admitted to conspiring to set Osuegbu’s St. Louis apartment on fire on Dec. 31, 2022. Osuegbu filed a claim with her insurance and collected an estimated $30,000. Osuegbu and Jefferson were also recorded discussing plans to burn two additional buildings in Granite City and Venice but ultimately did not commit the arsons. “Arson is a dangerous act of violence that not only destroys property but also places firefighters, first responders, and the public at great risk,” said Special Agent in Charge Bernard Hansen, Kansas City Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “This conviction sends the message to anyone who considers conducting this type of violent act, it will not be tolerated. ATF is committed to ensuring that our communities are safe and that those who commit these dangerous acts are held accountable.” Convictions for conspiracy to commit arson are punishable by up to 20 years’ imprisonment. ATF led the investigation, and Assistant U.S. Attorneys Kevin Burke and Peter Reed prosecuted the case.


title: Honduran National Charged With Illegally Using Social Security Number to Obtain Employment

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS , LOUISIANA – United States Attorney Duane A. Evans announced that CESAR ALVAREZ-ESPINAL (“ALVAREZ-ESPINAL”) , age 31, a native of Honduras, was charged on December 6, 2024 in a bill of information with illegally using a social security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B). According to filed documents, on or about November 13, 2024 in the Eastern District of Louisiana, ALVAREZ-ESPINAL fraudulently used a social security number that was not assigned to him. ALVAREZ-ESPINAL faces a maximum term of imprisonment of five (5) years, up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.00. U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jon Maestri of the General Crimes Unit is in charge of the prosecution.


title: Nigerian National Extradited to Nebraska to Face Fraud Scheme Charge

component: Criminal - Office of International Affairs

body_text: United States Attorney Susan Lehr announced the extradition of Abiola Kayode, 37, of Nigeria, to the District of Nebraska on a Conspiracy to Commit Wire Fraud Indictment, filed in August 2019 in Omaha, Nebraska. In April 2023, law enforcement authorities in the Republic of Ghana arrested Kayode pursuant to a U.S. request for his extradition. Ghanaian authorities ultimately granted this request and surrendered Kayode to FBI special agents who brought him to the District of Nebraska. Kayode had an initial appearance on the Indictment on December 11, 2024. United States Magistrate Judge Michael D. Nelson ordered Kayode remain detained pending trial. Kayode, who was on the FBI’s Most Wanted Cyber Criminal List, is alleged to have participated in a business email compromise (BEC) scheme from January 2015 to September 2016. The BEC scheme defrauded businesses in the District of Nebraska and elsewhere of more than $6 million. According to the indictment, Kayode’s co-conspirators posed as the chief executive officer, president, owner, or other executive of the targeted company. Using e-mail accounts spoofed to make it appear as though they were from the company’s true business executive, Kayode’s co-conspirators directed business employees or recipients of the e-mail to complete wire transfers. The business employees, believing the requests were legitimate, complied with the wire transfer requests and wired the money as instructed by Kayode’s co-conspirators. It is alleged Kayode provided bank account information to the co-conspirators who sent the fraudulent e-mails, and which directed business employees to wire money to accounts controlled by Kayode and others. These bank accounts largely belonged to victims of internet romance scams, who were instructed by co-conspirators to transfer the funds to other bank accounts. Some of Kayode’s co-conspirators have already been convicted and sentenced. Adewale Aniyeloye, one of the fraudsters sending the spoofed e-mails to the target business, was sentenced in February 2019 to 96 months’ imprisonment and ordered to pay $1,570,938.05 in restitution. Pelumi Fawehinimi, a bank account facilitator, was sentenced in March 2019 to 72 months’ imprisonment and ordered to pay $1,014,159.60 in restitution. Onome Ijomone, a romance scammer, was sentenced in January 2020 to 60 months’ imprisonment and ordered to pay $508,934.40 in restitution after his successful extradition from Poland. Other co-conspirators remain at large. Alex Ogunshakin, a co-conspirator who provided bank accounts for the scheme, was sentenced to 45 months’ imprisonment in October 2024 after his successful extradition from Nigeria. “Four years ago, we identified six Nigerian nationals suspected of defrauding individual victims and businesses in Nebraska and other states of millions of dollars,” said FBI Omaha Special Agent in Charge Eugene Kowel. “Today, Abiola Kayode is the second of those co-conspirators to be extradited to stand trial in Nebraska. Our message to the remaining four co-conspirators; we are coming for you. Dismantling cyber-criminal groups that victimize U.S. citizens is a priority for the FBI, DOJ, and our international law enforcement partners. The FBI, working together with our partners in Ghana, particularly the Office of the Attorney General and Ministry of Justice, the Ghana Police Service - INTERPOL, and the Ghana Immigration Service, will continue to pursue and bring to justice criminals who engage in Business Email Compromise and other fraud schemes.” This case was investigated by the Federal Bureau of Investigation. The Department of Justice’s Office of International Affairs provided significant assistance in securing Kayode’s extradition. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Department of Justice Announces a Critical Response Review of the Philadelphia Police Department under the COPS Office’s Collaborative Reform Initiative

component: Community Oriented Policing Services (COPS)

body_text: The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced that it will offer assistance to the Philadelphia Police Department (PPD) under its Critical Response program — part of the office’s Collaborative Reform Initiative. Through this assistance, the COPS Office — in conjunction with the National Policing Institute (a Critical Response provider) — will work with the PPD to improve the process for removing abandoned cars within the city. The goal of this work is to lower the number of abandoned cars in the city, reduce crime, and improve relations with community members. “One of the tenets of community policing is working with the community to address the public safety issues that are at the top of their priority list,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “That is what the Philadelphia Police Department has done here, and the Department of Justice is thrilled to support this work.” “When a police department truly listens to its community, trust grows and partnerships strengthen,” said Director Hugh T. Clements, Jr. of the COPS Office. “In this case, the Philadelphia Police Department has worked closely with its community to understand their public safety priorities and we look forward to working with them to further their goals.” The Collaborative Reform Initiative encompasses three programs offering expert services to state, local, territorial, and Tribal law enforcement agencies: the Collaborative Reform Initiative Technical Assistance Center, Critical Response, and Organizational Assessment programs (complete details of these programs can be found at cops.usdoj.gov/collaborativereform ). Managed out of the COPS Office, this continuum of services is designed to build trust between law enforcement agencies and the communities they serve; improve operational efficiencies and effectiveness; enhance officer safety and wellness; build agencies’ capacity for organizational learning and self-improvement; and promote community policing practices nationwide. The Critical Response program is designed to provide targeted technical assistance (TA) to state, local, territorial, and Tribal law enforcement agencies experiencing high-profile events, major incidents, or sensitive issues of varying need. Critical Response is highly customizable by providing flexible assistance to law enforcement agencies that have recently experienced a critical incident or identified an issue of significant community concern in their department’s operations. The TA generally falls into three categories: (1) immediate delivery of TA to address a pressing and acute need, (2) data analysis, and (3) after-action reviews to understand and learn from law enforcement and public safety responses to critical incidents or issues. The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.


title: Dark Web Administrator Sentenced for Sexually Abusing Minors and Possessing Thousands of Child Sexual Abuse Images

component: Criminal Division

body_text: A man was sentenced today in the Southern District of Texas to 30 years in prison for production and possession of child sexual abuse material (CSAM). According to court documents, Robert Alexander Shouse, 37, of Houston, was identified by law enforcement in 2018 as an administrator for a CSAM website on the dark web that facilitated the sexual exploitation of minors while keeping secret the identities of the perpetrators. In his role, Shouse maintained the website, which allowed users to post links to images and videos of CSAM. These links allowed a user to navigate to other websites, such as file-hosting websites where images or videos were stored and to download images and videos of child sexual abuse and child erotica. Additionally, forum users could discuss the sexual abuse of children. Authorities seized the website and terminated its operation in 2019. “Robert Shouse engaged in horrific sexual abuse of minors, created child sexual abuse material involving those minors, and facilitated the trafficking of thousands of sexually explicit images and videos of minors through a dark web site that he controlled,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendant’s sexual exploitation of vulnerable children is despicable. The Criminal Division is fully committed to using all available tools to investigate and prosecute sexual crimes against children.” “Robert Shouse is the embodiment of evil,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “He used money and gifts to sexually abuse a nine-year-old child for six years. He used his computer skills to target hundreds of children, stealing their innocence and shattering their lives. In essence, there was nothing he wouldn’t do satisfy his sick fantasies. Today’s sentence helps ensure that Shouse’s fantasies won’t become another child’s nightmare for decades to come.” “For more than 10 years, Shouse relentlessly exploited and victimized the most vulnerable members of our community,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “In a world where technology allows child exploitation material to be spread across borders with ease, those who exploit children for their own depraved purposes must face the consequences of the harm they inflicted on their victims. Today’s sentencing is more than just a punishment. It’s a message to the community that the FBI will always work with our partners to ensure there is one less predator out there victimizing the most innocent among us — our children.” In January 2019, authorities executed a search warrant at Shouse’s residence and seized multiple electronic devices. Forensic examination of the devices revealed more than 117,000 images and more than 1,100 videos depicting children engaged in sexually explicit conduct including anal and vaginal penetration, masturbation, sadistic and masochistic conduct and lewd exhibition of genitalia. Over 4,000 images depicted the sexual exploitation of babies and toddlers. Additionally, law enforcement found images and videos of seven minor victims whom Shouse knew personally. Through the investigation, authorities learned that he sexually abused one minor victim for a period of six years beginning when the victim was nine years old. Shouse had befriended the child and provided money and gifts to the victim’s family. Shouse created over 925 images and 33 videos of child sexual abuse of this minor. In some of these images, Shouse made the victim wear a dog collar. Law enforcement found that Shouse had also secretly recorded two other minors — one in the bathroom and the other in the bedroom — and solicited two other minors online, asking them to send naked pictures of themselves to him. He also managed to download naked pictures of a couple who had shared the images privately between themselves. Shouse pleaded guilty on June 6 to two counts of sexual exploitation of a child, one count of attempted sexual exploitation of a child, and one count of possession of child pornography. In addition to his term of imprisonment, Shouse was ordered to serve 10 years of supervised release, pay $153,500 in restitution to the victims, and register as a sex offender. Shouse will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future. The FBI Houston Field Office, Texas City Resident Agency investigated the case, with the assistance of the Fort Bend County District Attorney’s Office, Montgomery County Precinct Three Constable’s Office, and Fort Bend County Sheriff’s Office. The Justice Department thanks the Dutch National Police and United Kingdom National Crime Agency for their valuable assistance. Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Kimberly Ann Leo for the Southern District of Texas prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Portsmouth Man Sentenced to Probation After Admitting to Violating the Migratory Bird Treaty Act

component: USAO - Rhode Island

body_text: PROVIDENCE, RI – A Portsmouth man has been sentenced to six months’ federal probation after admitting to a federal magistrate judge that he violated the Migratory Bird Treaty Act when he shot hawks on and around his property, announced United States Attorney Zachary A. Cunha. According to information presented to the court, from October 2018 through April 2021, eight injured or deceased hawks were recovered from the vicinity of property owned by Robert J. Ferreira, 65. Ammunition recovered from three of the hawks matched an air rifle belonging to Ferreira. Appearing before a magistrate judge in federal court in Providence today, Ferreira admitted to using his air rifle to injure three Red-Tailed hawks and a Cooper’s hawk between October 23, 2018, and March 18, 2019. He pleaded guilty to four misdemeanor charges of hunting, taking, killing, or attempting to take or kill migratory birds. The Migratory Bird Treaty Act protects certain migratory birds, including the Red-Tailed hawk and Cooper hawk, and forbids hunting, capturing, or killing these birds unless authorized by permit. Ferreira was sentenced on Thursday by Magistrate Judge Lincoln D. Almond to six months of probation. The case was prosecuted by Assistant U.S. Attorney Denise M. Barton, with the assistance of Assistant U.S. Attorney Christine D. Lowell. The matter was investigated by U.S. Fish and Wildlife Service, Office of Law Enforcement. ###


title: San Antonio Man Sentenced to 28 Years in Federal Prison for Armed Pharmacy Robberies

body_text: SAN ANTONIO – A San Antonio man was sentenced to 339 months in federal prison for three counts of pharmacy robbery and three counts of brandishing a firearm during and in relation to a crime of violence. According to court documents, from October to December 2020, Atseko Factor, 40, and co-defendant Andre Dupree Jack, 41, robbed three pharmacies at gunpoint in Luling, Pleasanton and Seguin. During the robberies, Factor and Jack pointed firearms at the employees, bound them with zip ties, and stole more than $43,000 worth of controlled substances, along with cash, pharmaceuticals and merchandise. Factor pleaded guilty to the charges Sept. 10. In addition to imprisonment, Factor was ordered to pay approximately $47,000 in restitution. Jack pleaded guilty to one count of conspiracy to commit pharmacy robbery and four counts of brandishing a firearm during and in relation to a crime of violence on March 21. He is scheduled to be sentenced Jan. 16, 2025. U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement. The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case along with the Pleasanton, Seguin, and Luling Police Departments. Assistant U.S. Attorneys Brian Nowinski and John Fedock prosecuted the case. ###


title: Early Bitcoin Investor Sentenced for Filing Tax Returns that Falsely Reported His Cryptocurrency Gains

component: Tax Division

body_text: An Austin, Texas, man was sentenced today to two years in prison for filing a tax return that falsely underreported the capital gains he earned from selling $3.7 million in bitcoins. According to court documents and statements made in court, between 2017 and 2019, Frank Richard Ahlgren III, filed false tax returns that underreported or did not report the sale of $4 million worth of bitcoins in which he had substantial gains. All taxpayers are required to report any sale proceeds and gains or losses from the sale of cryptocurrency, such as bitcoin, on a tax return. Ahlgren was an early investor in bitcoins and purchased bitcoins as early as 2011. In 2015, Ahlgren bought approximately 1,366 bitcoins using his accounts with Coinbase. The highest price bitcoins sold for that year was approximately $495.56. In October 2017, Ahlgren sold approximately 640 bitcoins trading at approximately $5,807.53 per bitcoin for a total of $3.7 million, and used the proceeds to purchase a house in Park City, Utah. Most of the bitcoins used to purchase the house came from bitcoins Ahlgren bought in 2015 using his Coinbase account. When it came time to prepare his 2017 federal income tax return, Ahlgren lied to his accountant by submitting a false summary of his gains and losses from the sale of his bitcoins. To conceal the full extent of his gain, Ahlgren claimed that he bought the bitcoins at prices much higher than he actually did — indeed, his claimed purchase prices were greater than the highest price bitcoins sold for in the market prior to the purchase of the Utah house. Ahlgren then filed a false 2017 federal income tax return that substantially inflated the cost basis of the bitcoins, thereby underreporting his true capital gain from his sale of bitcoins. In 2018 and 2019, Ahlgren sold bitcoins for more than $650,000, and did not report these sales at all on his 2018 and 2019 tax returns. For these years, Ahlgren took several sophisticated steps to attempt to conceal his transactions on the bitcoin blockchain by moving his bitcoins through multiple wallets, meeting an individual in person to exchange bitcoins for cash, and using mixers, which are designed to conceal the individual who made the particular transaction. Indeed, in May 2014, Ahlgren had blogged about his knowledge of mixers as ways to add anonymity to bitcoin transactions. In total, the tax loss from Ahlgren’s criminal conduct was over $1 million. “Frank Ahlgren III earned millions buying and selling bitcoins,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division “But instead of paying the taxes he knew were due, he lied to his accountant about the extent of a large portion of his gains, and sought to conceal another chunk of his profits through sophisticated techniques designed to obscure his transactions on the bitcoin blockchain. That conduct today earned him a two-year sentence.” “Ahlgren will serve time because he believed his cryptocurrency transactions were untraceable. This case demonstrates that no one is above the law. My team at IRS Criminal Investigation has the expertise and tools to track financial activity, whether it involves dollars, pesos, or cryptocurrency,” said Acting Special Agent in Charge Lucy Tan of IRS-Criminal Investigation (IRS-CI)’s Houston Field Office. “This case marks the first criminal tax evasion prosecution centered solely on cryptocurrency. As the prices for cryptocurrency are high, so is the temptation to not pay taxes on its sale. Avoid the temptation and avoid federal prison.” In addition to his prison sentence, U.S. District Court Judge Robert Pitman for the Western District of Texas ordered Ahlgren to serve one year of supervised release and to pay $1,095,031 in restitution to the United States. IRS-CI and the Texas Office of Attorney General are investigating the case. Assistant Chief Michael C. Boteler and Trial Attorney Mary Frances Richardson of the Tax Division and Assistant U.S. Attorney William R. Harris for the Western District of Texas are prosecuting the case.


title: Travel agent arrested for alleged sham travel arrangements for college basketball team after receiving over $100,000

body_text: ALEXANDRIA, Va. – An Atlanta man was arrested today on charges of wire fraud after allegedly taking payment for travel services he never provided. According to a criminal complaint, in June 2023, representatives from George Mason University’s (GMU) men’s basketball team began discussions with a company, identified in court records as Company A, about organizing an international trip for the team the following summer. Company A’s owner contacted Maurice Eugene Smith, 44, about making the travel arrangements for the basketball team to travel to the Bahamas in August 2024 through Smith’s company, Eugene Toriko LLC. On Sept. 25, 2023, Smith allegedly provided an estimated cost for the trip, which included transportation, hotel accommodations, activities, and some meals for 30 people at a cost of $149,542.40. In early 2024, the owner of Company A presented a detailed draft itinerary and cost estimate to GMU for a five-day trip to Nassau, Bahamas, based in part on information that Smith had provided to Company A. On Feb. 26, Smith allegedly emailed another draft invoice for the trip that totaled $164,336, which included pricing for all transportation, lodging, a private catamaran tour, some meals, and fees associated with basketball games. The owner of Company A frequently relayed information that Smith allegedly provided to him about the trip’s cost and itinerary to GMU. At one point, Smith allegedly lowered the proposed cost of the trip to $159,756. On April 3, representatives from GMU, the George Mason University Foundation (GMUF, which is GMU’s fundraising arm), and Company A digitally signed a contract related to the planned trip. On April 17, GMUF wired a $55,914.60 deposit to Company A’s bank account. On April 19, Smith allegedly emailed Company A an invoice that detailed the services Eugene Toriko LLC was to provide on behalf of Company A for GMU and GMUF, and the cost for those services. On April 24, Company A wired $40,800 to Eugene Toriko LLC’s bank account. On May 20, a representative from GMU requested an invoice for the next deposit that was due on May 27. In turn, Company A requested invoice information from Smith. Using the information that Smith allegedly provided, Company A sent an invoice to GMU for $103,841. On May 23, GMUF wired the balance of $103,841 to Company A’s bank account. Company A paid Eugene Toriko LLC $57,736.07 on May 29 and the remaining balance of $11,220 on June 10. Family members, friends, and supporters of the GMU men’s basketball student-athletes also paid Company A and Eugene Toriko LLC to accompany the team on their trip to the Bahamas. As alleged in the complaint, Smith reserved 30 seats for “[GMU] MENS BASKETBALL” on roundtrip flights between Ronald Reagan National Airport and Nassau International Airport for which he was to pay a $3,000 deposit no later than May 24 with the balance due by July 9. Smith also allegedly reserved a block of rooms for the GMU men’s basketball team at the Grand Hyatt Baha Mar in the Bahamas. Although Eugene Toriko LLC received $109,756.07 from Company A, Smith allegedly spent no money to hold those reservations, and no payments were made to any catamaran companies or to any Bahamian companies. Despite Smith never paying for the airline tickets or hotel rooms, he allegedly continued to exchange numerous emails and text messages with the owner of Company A as if he had, including communications about flights, frequent flier numbers, room assignments, resort fees, and other logistics for the trip up until three days before the basketball team was scheduled to depart for the Bahamas in August. GMUF has not been reimbursed for any payments made to Company A and Eugene Toriko LLC. Although Smith allegedly represented that his professional liability insurance would cover the loss, he allowed his professional liability insurance to lapse and was not insured at the time. Smith is charged with wire fraud. If convicted, Smith faces up to 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and David E. Geist, Acting Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement. Assistant U.S. Attorney Katherine E. Rumbaugh is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-mj-485.


title: Maryland Woman Sentenced for Role in Million Dollar Fraud Scheme at New Orleans Marine Forces Reserve Facility

body_text: NEW ORLEANS – United States Attorney Duane A. Evans announced that on December 10, 2024, KAMILA HORAKOVA DUDLEY (“ DUDLEY ”), age 43, of Silver Spring, Maryland, was sentenced to 3 years probation, payment of a $100.00 mandatory special assessment fee, and restitution in the amount of $473,702.43 by United States District Judge Greg G. Guidry. DUDLEY previously pled guilty to misprision of a felony, namely, wire fraud, in violation of 18 U.S.C. § 4. According to court documents, DUDLEY was employed by Company A from September 2008 through March 2023; and, from March 2017 through November 2018, she served as Company A’s office manager. As Company A’s office manager, DUDLEY , among other things, prepared and submitted Company A’s invoices for payment. In approximately March 2017, Company A subcontracted with Company B to provide onsite support services at the Marine Forces Reserve (MARFORRES) facility in New Orleans, Louisiana. Company A, by and through multiple employees, committed wire fraud by knowingly submitting materially false invoices to Company B, knowing that Company B would, in turn, present the false information to the United States for payment. From March 2017 through November 2018, Company A billed the United States, through Company B, for services not provided. The fraudulent invoices included the names of Company A’s executives, who performed no work at MARFORRES. The fraudulent invoices also included the names of certain individuals who worked full-time on a separate contract at a separate facility and, thus, performed no work at MARFORRES. Because neither Company B nor the United States, was aware of the fraudulent nature of the invoices, Company A was paid approximately $1,300,000 under the subcontract. Despite having knowledge of these events, that constituted wire fraud, DUDLEY did not make known the information and, further, attempted to conceal it. For example, on or about October 31, 2017, DUDLEY was notified by one of her colleagues that Company A’s cost submissions contained the names of individuals who worked on a separate contract and who performed no work at MARFORRES. DUDLEY did not make that information known, including the fact that prior invoices containing those names were false and fraudulent. DUDLEY resumed the preparation and submission of Company A’s invoices, removed only the challenged names, and concealed the fraudulent nature of the earlier submissions. “Ms. Dudley’s submission of false invoices to the Department of the Navy for payment represents a disservice to the U.S. Government and American taxpayers,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS remains committed to conducting thorough investigations that protect service members from the threats posed by procurement fraud, safeguard the integrity of the defense acquisition process, and preserve warfighting readiness.” U.S. Attorney Evans praised the work of the special agents of the Naval Criminal Investigative Service, the Defense Criminal Investigative Service, and members of the Defense Contract Audit Agency. The case was prosecuted by Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit.


title: St. Louis Man Sentenced to 15 Months in Prison for Pandemic Loan Fraud

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – U.S. District Judge John A. Ross on Thursday sentenced a man who fraudulently obtained $41,484 in loans intended to help struggling businesses during the pandemic to 15 months in prison. Judge Ross ordered Robert Baines, 44, to repay the amount of the loans, as well as $4,815 to the property management company where he once worked. After Baines pleaded guilty to two felony counts of wire fraud in August, allegations emerged that he told tenants to pay rent directly to him and moved two tenants into vacant apartments without leases and told them to pay him in cash, stealing a total of $7,315. Baines subsequently repaid $2,500 to his former employer. In his guilty plea in August, Baines admitted fraudulently obtaining Paycheck Protection Program (PPP) loans in 2021. He applied for a first draw PPP loan on March 31, 2021, and a second draw PPP loan on April 9, 2021. In the loan applications, Baines falsely claimed that he was self-employed, lied about his business income and submitted a forged IRS form to bolster his claims. Baines was not self-employed and did not earn any of the claimed self-employment income. In his application for the second-draw loan, Baines falsely claimed that he’d suffered at least a 25% reduction in gross income between 2019 and 2020. The PPP loans were designed to help small businesses during the COVID-19 pandemic and, accordingly, were to be used for business-related purposes, such as to cover payroll, utilities, and rent or mortgage payments. Instead, Baines instead used the money for restaurants, travel, clothing and other retail items. The U.S. Secret Service investigated the case. Assistant U.S. Attorney Justin Ladendorf prosecuted the case.


title: Michigan Businessman Convicted of PPP Loan Fraud

body_text: A federal jury convicted a Michigan businessman today of wire fraud for fraudulently obtaining a Payroll Protection Program (PPP) loan and loan forgiveness. According to court documents and evidence presented at trial, Dale Thrush, of Farwell, owned and operated several automotive repair service locations and a gas station. From approximately February 2021 through September 2021, Thrush defrauded the Small Business Administration (SBA) by falsely representing to a bank and the SBA in an application for a PPP loan that he was not subject to an indictment, when in fact he was, and then by seeking forgiveness of that loan. The PPP was enacted as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a law designed to provide emergency financial assistance to the millions of Americans feeling the economic effects caused by the COVID-19 pandemic. Thrush is scheduled to be sentenced on July 17, 2025. He faces a maximum penalty of 20 years in prison for wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dawn Ison for the Eastern District of Michigan made the announcement. IRS-Criminal Investigation is investigating the case. Trial Attorneys Mark McDonald and Evan Mulbry of the Justice Department’s Tax Division are prosecuting the case.


title: New London Man Sentenced to 12 Years in Federal Prison for Trafficking Fentanyl

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that WILLIAM CARABALLO, III, also known as “Wilo” and “Couzzo,” 41, of New London, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 144 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl. According to court documents and statements made in court, on four occasions between March and May 2020, an undercover law enforcement officer purchased heroin/fentanyl from Cruz J. Bonilla. During the investigation, law enforcement identified Caraballo as Bonilla’s drug supplier and learned that Caraballo regularly transported kilogram quantities of heroin/fentanyl from New York to southeastern Connecticut for distribution. On June 6, 2020, investigators tracked Caraballo as he traveled to the Bronx, New York, where he stayed for approximately 30 minutes before returning to Connecticut. Connecticut State Police stopped Caraballo’s vehicle on I-95 North in Connecticut and found him in possession of approximately one kilogram of fentanyl in a heat-sealed bag. Caraballo was arrested on state charges at that time. Caraballo has been detained since his federal arrest on October 6, 2020. On June 27, 2024, he pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl. Caraballo’s criminal history includes an assault conviction in 2002 related to his shooting an individual in the arm after an argument about a football game, a conviction for stabbing a relative in the chest with a pocketknife in 2013, drug convictions, and convictions for other offenses. On July 30, 2024, Bonilla pleaded guilty to possession with intent to distribute, and distribution of, a controlled substance, and also admitted that he violated the conditions of his supervised release that followed a prior federal conviction. He is detained while awaiting sentencing. This investigation was conducted by the Drug Enforcement Administration, the Connecticut State Police, and the Connecticut Statewide Narcotics Taskforce East. The case was prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Natasha M. Freismuth.


title: Justice Department Announces an Organizational Assessment of the Sacramento, California, Police Department under the COPS Office’s Collaborative Reform Initiative

body_text: The Justice Department’s Office of Community Oriented Policing Services (COPS Office) today announced that it will provide an Organizational Assessment of the Sacramento, California, Police Department through its Collaborative Reform Initiative. This is a voluntary program that is offered at the request of law enforcement agencies that are seeking to improve their services and operations. Over the next year, the Sacramento Police Department will work in partnership with the COPS Office Collaborative Reform Initiative team to focus on: Organizational Structure and Workload Analysis Civilianization and Alternate Response Calls for Service Analysis Community Policing Technology “It is exciting to see a department voluntarily taking a close look at how it can improve in critical areas,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “The shared goals of public safety and community trust are essential for agencies that want to continue to serve their residents to the best of their ability.” “Departments that prioritize this internal work end up strengthening both their agencies and their relationship with those they serve,” said Director Hugh T. Clements Jr. of the COPS Office. “Taking on this type of work demonstrates a true commitment to excellence.” Regular updates on the team’s work with the Sacramento Police Department will be provided at cops.usdoj.gov/active-oa-site-sacramento-ca-police-department as part of the transparency and public accountability of this new Organizational Assessment effort. The Collaborative Reform Initiative encompasses three programs offering expert services to state, local, territorial, and Tribal law enforcement agencies: the Collaborative Reform Initiative Technical Assistance Center, Critical Response, and Organizational Assessment programs (complete details of these programs can be found at cops.usdoj.gov/collaborativereform ). Managed out of the COPS Office, this continuum of services is designed to build trust between law enforcement agencies and the communities they serve; improve operational efficiencies and effectiveness; enhance officer safety and wellness; build agencies’ capacity for organizational learning and self-improvement; and promote community policing practices nationwide. The Organizational Assessment program provides the most intensive form of technical assistance on the continuum, involving in-depth assessments and long-term assistance to improve the fairness, effectiveness, and efficacy of agency operations that build trust with communities. A continual assessment and implementation process ensures that time and resources are used to focus on identifying areas for improvement, reinforcing agency strengths, and assisting with the implementation of improvements expeditiously. At the same time, the process provides transparency and accountability with routine public reporting and community input. Each engagement will be supported by a multidisciplinary assessment team composed of subject matter experts with diverse experience and perspectives, including in law enforcement, community engagement, research and evaluation, program management, and organizational reform. The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to more than 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of approximately 138,000 officers.


title: Former Memphis Law Firm Office Manager Indicted for Embezzling Over $1.2 Million Dollars

component: USAO - Tennessee, Western

body_text: Memphis, TN – A federal grand jury in the Western District of Tennessee recently returned an indictment charging a Memphis resident, Catherine Corrine Daly , 54 , with embezzlement from a local law firm. Reagan Fondren, Acting United States Attorney for the Western District of Tennessee, announced the indictment today. According to the indictment in the case, Daly was employed by a local law firm as its office manager. As office manager, she had access to the firm’s bank accounts, including the firm’s operating account, which was used to pay the firm’s operating expenses. The operating account was both opened and located at a Memphis branch of what was then known as SunTrust Bank. Daly had two American Express (AmEx) charge accounts in her name with a total of five AmEx charge cards issued through the two accounts to Daly and two of her relatives. The cards were used to purchase various goods and services such as clothing, shoes, designer handbags, and jewelry; fixtures and furnishings for Daly’s residence; food purchased at restaurants; personal services at nail and beauty salons; and travel expenses. As these charges were made, Daly is alleged to have used the money in the firm’s operating account to pay the amounts due on her personal AmEx charge accounts. She conducted the embezzlement scheme from June 2019 until October 2021, allegedly making multiple payments on her personal AmEx bills directly from the law firm’s operating account. Using this method, Daly embezzled and converted $1,289,085.00 of the law firm’s funds to her own use. Daly is charged with six counts of violating Title 18, United States Code, Section 2314. This statute makes it a crime to transfer money in interstate commerce that has been “stolen, converted or taken by fraud.” Each count of the indictment is punishable by a term of up to 10 years of imprisonment, a fine of no more than $250,000.00, or both, as well as a term of court-supervised release of no more than three years. The United States Secret Service is investigating the case. Assistant United States Attorney Joe Murphy for the Western District of Tennessee is prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ### For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov . Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.


title: Indictment Charges Waterbury Man with Firearm Offense

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in New Haven has returned an indictment charging JOSE ANTONIO MOLINA-MONTALVO, 36, of Waterbury, with the unlawful possession of a firearm by a felon. The indictment was returned on November 25, 2024. Molina-Montalvo appeared today before U.S. Magistrate Judge Maria E. Garcia and entered a plea of not guilty to the charge. The indictment alleges that from October 11 to October 15, 2024, Molina-Montalvo unlawfully possessed a Harrington & Richardson 1871 INC. Handi Rifle. The indictment further alleges that Molina-Montalvo’s criminal history includes state felony convictions for assault, possession with intent to sell narcotics, strangulation, harassment, burglary, and larceny. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. The charge of unlawful possession of a firearm by a felon carries a maximum term of imprisonment of 15 years. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Molina-Montalvo has been detained since his arrest on unrelated state charges on October 21, 2024. This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorney Nathan J. Guevremont through Project Safe Neighborhoods (“PSN”), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn .


title: Former Syrian Prison Official Charged with Torture

body_text: Note : View a copy of the superseding indictment here . A federal grand jury in Los Angeles returned a superseding indictment today charging a former Syrian government official with torture. According to court documents, Samir Ousman Alsheikh, 72, of Lexington, South Carolina, was the head of Damascus Central Prison, colloquially known as Adra Prison, from approximately 2005 through 2008. In that role, Alsheikh allegedly ordered subordinates to inflict and was sometimes personally involved in inflicting severe physical and mental pain and suffering on political and other prisoners. In particular, Alsheikh allegedly ordered some prisoners to Adra Prison’s “Punishment Wing,” where prisoners were beaten while suspended from the ceiling with their arms extended and were subjected to a device known as the “Flying Carpet,” which folded their bodies in half at the waist, causing excruciating pain and sometimes resulting in fractured spines. “Samir Alsheikh is charged with torturing political dissidents and other prisoners to deter opposition to the regime of then-Syrian President Bashar al-Assad,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Alsheikh later allegedly lied about his crimes to obtain a U.S. green card. The victims of such violent treatment continue to suffer long after the physical acts of torture have ceased. The Justice Department is committed to prosecuting perpetrators of such crimes and will not allow them, through lies and concealment, to hide in the United States.” “The allegations in this superseding indictment of grave human rights abuses are chilling,” said U.S. Attorney Martin Estrada for the Central District of California. “Our country will not be a safe harbor for those accused of committing atrocities abroad.” Alsheikh allegedly held a variety of positions in the Syrian police and the Syrian state security apparatus, was associated with the Syrian Ba’ath Party that ruled Syria, and was appointed governor of the province of Deir Ez-Zour by then-Syrian President Bashar al-Assad in 2011. The superseding indictment alleges that Alsheikh immigrated to the United States in 2020 and applied for U.S. citizenship in 2023. “When it comes to pursuing our criminal investigations, Homeland Security Investigations (HSI) has a long reach and an even longer memory,” said Special Agent in Charge Eddy Wang of the HSI Los Angeles Field office. “The defendant is accused of torturing prisoners in Syria almost 20 years ago, and today, we are one step closer to holding him accountable for those heinous crimes. The United States will never be a safe haven for those who commit human rights abuses abroad.” “The allegations in this superseding indictment reveal unconscionable crimes and a clear violation of human rights,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “The FBI is committed to working with our partners across the globe to uncover the truth and ensure those who engage in unlawful and inhumane criminal activity face the full consequences of their actions.” The superseding indictment adds three counts of torture and one count of conspiracy to commit torture to the visa fraud and attempted naturalization fraud charges that were the subject of the initial indictment against Alsheikh in August. If convicted, Alsheikh faces a maximum penalty of 20 years in prison for the conspiracy to commit torture charge, a maximum penalty of 20 years in prison for each of the three torture charges, and a maximum penalty of 10 years in prison for each of the two immigration fraud charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. HSI and the FBI are investigating the case, with support from the HSI-led Human Rights Violators and War Crimes Center and the Justice Department’s Office of International Affairs. The Justice Department thanks the Swedish Police Authority; Royal Canadian Mounted Police – Federal Policing, Pacific Region; and authorities in Belgium for their invaluable assistance. Trial Attorneys Patrick Jasperse and Alexandra Skinnion of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Joshua O. Mausner for the Central District of California are prosecuting the case. HRSP historian Phil Hoffman provided substantial assistance in the investigation and prosecution. Members of the public who have information about human rights violators in the United States are urged to contact U.S. law enforcement through the FBI tip line at 1-800-CALL-FBI or the HSI tip line at 1-866-DHS-2-ICE, or complete the FBI online tip form or the ICE online tip form . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.