title: Gymnastics coach gets max in disturbing child pornography case

body_text: GALVESTON, Texas – A 55-year-old McKinney resident has been sentenced to 20 years in prison for transportation of child pornography, announced U.S. Attorney Alamdar S. Hamdani. Darren Frank McCoy pleaded guilty Dec. 1, 2022, admitting he was previously a gymnastics and cheerleading coach in Texas and Alabama. He had recorded teens in various stages of undress without their knowledge or consent and had unlawfully transported those images and videos as well as disturbing images of child pornography. Today U.S. District Judge Jeffery V. Brown ordered him to serve a total of 240 months in federal prison to be immediately followed by a 10 years of supervised release. At the hearing, the court heard from one woman whom McCoy recorded while she was a minor. She discussed how her life has been seriously impacted by McCoy’s conduct, describing how he stole her childhood experiences without her even knowing it and that she feels rage, anger and sadness and lack of empathy toward him. Another victim described how McCoy sexually abused her from the time she was 12 until the age of 18. She detailed how she suffers from post-traumatic stress disorder and anxiety. McCoy was a gymnastics coach to these women. “Darren McCoy is the definition of a predator,” said Hamdani. “We encourage our children to engage in sports, believing that they will be safe when doing so. Instead, these athletes were betrayed. This so-called coach surreptitiously recorded teens and sexually abused a minor for several years. Hopefully, knowing the only bars he will see now are behind a federal prison cell will give his victims some long-awaited peace.” On Nov. 30, 2019, McCoy had been on a cruise ship which docked in the Galveston Port of Entry. Authorities sent him to secondary inspection after learning of a prior child pornography investigation from 2015. There, they found images of child pornography on his laptop which led them to seize other electronic devices including his phone which also yielded numerous pornographic images. They also found nine videos on McCoy’s flash drive which appeared to be taken with a hidden camera. These videos, which appeared to be taken approximately a decade ago, were of teens changing their clothes or showering in a residential bathroom, a gym and at a hotel for a cheerleading competition. One of the teens was found to be a minor at the time. A subsequent search at McCoy’s residence in McKinney led authorities to discover two covert recording devices. Through the investigation, law enforcement learned McCoy was a gymnastics and cheerleading coach at Metroplex Gymnastics and Swim in Allen and had previously been a coach at Top Dog Cheer in Montgomery, Alabama. In total, authorities found 10 videos and 290 images of child pornography on McCoy’s devices. His collection included children between the ages of 1 and 8 in various stages of undress in a hospital, mortuary or morgue-type setting. McCoy will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Homeland Security Investigations (HSI) – Galveston conducted the investigation with the assistance of police departments in Galveston and Pearland, Customs and Border Protection and HSI – Dallas. Assistant U.S. Attorneys Kimberly Ann Leo and Sherri Zack are prosecuting 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: Albuquerque Man Charged with Firearms Offenses

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced that Marquez Martinez was charged with dealing in firearms without a license and illegal possession of a machine gun. Martinez, 25, of Albuquerque, appeared in federal court for a detention hearing and will remain at the La Pasada Halfway House under numerous conditions of release pending trial, which has not been scheduled. According to the criminal complaint, on Jan. 9, 2023, the ATF identified an Instagram account associated with Martinez advertising the sale of firearms including firearms modified with a machine gun conversion device commonly referred to as a “switch.” A machine gun conversion device is a small device that can be mounted to the back of a handgun. Once mounted, the device allows the handgun to operate as a fully automatic weapon. On Jan. 10, 2023, a student at West Mesa High School was found with two firearms in their possession. One of the firearms was purchased by Marquez on Nov. 10, 2022, 61 days prior and modified with a machine gun conversion device. On Feb. 1, 2023, an undercover detective with the Albuquerque Police Department (APD) contacted Martinez through Instagram and set up numerous controlled purchases of contraband. Specifically, the undercover detective purchased LSD, several handguns, an AK-47, several machine gun conversion devices, and fentanyl. One of the handguns was found to have been purchased by Martinez 39 days prior to the controlled purchase. On March 2, 2023, a Texas State Ranger conducted a traffic stop in El Paso, TX, on a vehicle that contained an individual wanted for homicide in Albuquerque. During a search of the vehicle a firearm was recovered. The firearm had been purchased by Martinez on June 26, 2022. On March 8, 2023, the APD Gun Violence Suppression Unit (GVSU) conducted a vehicle stop in Albuquerque. During the vehicle stop, a firearm was recovered and seized. This firearm had been purchased by Martinez on Jan. 7, 2023, 62 days prior to it being recovered by law enforcement. During the five-month period of monitoring Martinez’s firearm purchases, the ATF estimates that he was responsible for buying at least thirty-five firearms. On May 11, 2023, the ATF and other federal law enforcement agencies executed a warrant on the current known residence of Martinez. Inside the home, agents located approximately thirteen firearms, hundreds of rounds of ammunition, and numerous ammunition magazines. Martinez was interviewed by an agent from the ATF and admitted purchasing “hundreds” of firearms since turning 21, to include approximately fifty purchases in the past six months. An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Martinez faces up to 10 years in prison. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Patrick E. Cordova is prosecuting the case. # # # 23-107


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


title: Former Tribal Official Sentenced for Bribery Scheme

component: Criminal Division

body_text: A former Tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) was sentenced yesterday to five years in prison for soliciting and accepting bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation in North Dakota, which is the home of the MHA Nation. According to court documents, Randall Judge Phelan, 58, of Mandaree, North Dakota, was an elected representative on the Tribal Business Council – the governing body of the MHA Nation – from 2013 to 2020. Beginning around 2013 and continuing through 2020, Phelan solicited and accepted bribes and kickbacks totaling more than $645,000 from a contractor operating on the Fort Berthold Indian Reservation. In exchange for payments, Phelan used his official position to help the contractor’s business, including by awarding millions of dollars in contracts, fabricating bids during purportedly competitive bidding processes, advocating for the contractor with other Tribal officials, and facilitating the submission and payment of fraudulent invoices. In October 2022, Phelan pleaded guilty to conspiracy to commit bribery concerning programs receiving federal funds, honest services wire fraud, and bribery concerning programs receiving federal funds. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Mac Schneider for the District of North Dakota, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement. The FBI Minnesota Field Office investigated the case. Trial Attorneys Andrew Tyler and John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Greenley for the District of North Dakota prosecuted the case.


component: USAO - North Dakota

body_text: A former Tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) was sentenced yesterday to five years in prison for soliciting and accepting bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation in North Dakota, which is the home of the MHA Nation. According to court documents, Randall Judge Phelan, 58, of Mandaree, North Dakota, was an elected representative on the Tribal Business Council – the governing body of the MHA Nation – from 2013 to 2020. Beginning around 2013 and continuing through 2020, Phelan solicited and accepted bribes and kickbacks totaling more than $645,000 from a contractor operating on the Fort Berthold Indian Reservation. In exchange for payments, Phelan used his official position to help the contractor’s business, including by awarding millions of dollars in contracts, fabricating bids during purportedly competitive bidding processes, advocating for the contractor with other Tribal officials, and facilitating the submission and payment of fraudulent invoices. In October 2022, Phelan pleaded guilty to conspiracy to commit bribery concerning programs receiving federal funds, honest services wire fraud, and bribery concerning programs receiving federal funds. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Mac Schneider for the District of North Dakota, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement. The FBI Minnesota Field Office investigated the case. Trial Attorneys Andrew Tyler and John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Greenley for the District of North Dakota prosecuted the case. # # # 23-558


title: Former D.C. Police Union Vice Chairman Pleads Guilty to Time and Attendance Fraud Scheme

component: USAO - District of Columbia

body_text: Defendant Billed MPD While Working Outside Employment WASHINGTON – Medgar Webster Sr., 52, of Washington, D.C., pleaded guilty yesterday, in Superior Court, to one count of first degree felony fraud for committing time and attendance fraud on the Metropolitan Police Department. U.S. Attorney Matthew M. Graves, D.C. Attorney General Brian L. Schwalb, and Chief Robert Contee III, of the Metropolitan Police Department made the announcement. The Honorable Errol Arthur accepted Webster’s guilty plea and scheduled sentencing for July 25, 2023. As part of his plea, Webster must pay full restitution. According to court documents, Webster, a former MPD officer and Vice Chairman of the D.C. Police Union, engaged in unauthorized outside employment at three Whole Foods Market locations in Washington, D.C. between January 2021 and April 2022, while concurrently employed by MPD. Although employment outside of MPD may be permitted in certain circumstances, Webster never submitted the necessary administrative forms or received the proper authorizations, which are required by MPD, in part, to maintain records of an MPD member’s hours worked throughout the year. Acting unchecked during this period, Webster stole more than $33,845 from MPD after billing MPD for regular, overtime and holiday hours that he never worked. In total, Webster worked more than 1,400 hours of outside employment at Whole Foods, of which 514 hours were worked simultaneously with time he fraudulently reported working for MPD. This double-billed time included submissions by Webster for 246.5 hours in overtime pay, at an adjustable hourly rate of $79.67 per hour. This fraud prosecution is the result of a partnership between the Office of the Attorney General and the U.S. Attorney’s Office for the District of Columbia. In announcing the guilty plea, U.S. Attorney Graves, D.C. Attorney General Schwalb, and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department’s Internal Affairs Division. They also expressed appreciation for the work of those who investigated and prosecuted the matter, including Assistant U.S. Attorney Benjamin D. Bleiberg, and former Special Assistant U.S. Attorney Bayly Leighton, on detail from the Office of the Attorney General to prosecute local fraud and public corruption cases.


title: Justice Department Announces Five Cases as Part of Recently Launched Disruptive Technology Strike Force

component: Federal Bureau of Investigation (FBI)

body_text: The Justice Department today announced criminal charges in five cases and four arrests from five different U.S. Attorney’s offices in connection with the recently launched multi-agency Disruptive Technology Strike Force. The Disruptive Technology Strike Force is co-led by the Departments of Justice and Commerce to counter efforts by hostile nation-states to illicitly acquire sensitive U.S. technology to advance their authoritarian regimes and facilitate human rights abuses. The Strike Force’s work has led to the unsealing of charges against multiple defendants in five cases accused of crimes including export violations, smuggling and theft of trade secrets. Two of these cases involve the disruption of alleged procurement networks created to help the Russian military and intelligence services obtain sensitive technology in violation of U.S. laws. In the Eastern District of New York, a Greek national was arrested on May 9 for federal crimes in connection with allegedly acquiring more than 10 different types of sensitive technologies on behalf of the Russian government and serving as a procurement agent for two Russian Specially Designated Nationals (SDNs) operating on behalf of Russia’s intelligence services. In the District of Arizona, two Russian nationals were arrested for their involvement in a procurement scheme to supply multiple Russian commercial airline companies – which were subject to bans from engaging in certain type of commercial transactions – with export-controlled parts and components, including braking technology. Two of the other cases announced today charge former software engineers with stealing software and hardware source code from U.S. tech companies in order to market it to Chinese competitors. In the Central District of California, a senior software engineer was arrested on May 5 for theft of trade secrets for allegedly stealing source code used in metrology software which is used in “smart” automotive manufacturing equipment. The defendant then allegedly marketed the stolen technology to multiple Chinese companies. In the Northern District of California, a citizen of the People’s Republic of China (PRC) and former Apple engineer is accused of allegedly stealing thousands of documents containing the source code for software and hardware pertaining to Apple’s autonomous vehicle technology. This defendant fled to China and is believed to be working for a PRC-based autonomous vehicle competitor. The fifth and final case involves a Chinese procurement network established to provide Iran with materials used in weapons of mass destruction (WMDs) and ballistic missiles. In the Southern District of New York, a PRC national is charged with allegedly participating in a scheme to use his employer to conduct transactions with a U.S. financial institution for the benefit of a purported Iranian entity, as part of an effort to provide isostatic graphite, a material used in the production of WMDs, to Iran. “These charges demonstrate the Justice Department’s commitment to preventing sensitive technology from falling into the hands of foreign adversaries, including Russia, China, and Iran,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will not tolerate those who would violate U.S. laws to allow authoritarian regimes and other hostile nations to use advanced technology to threaten U.S. national security and undermine democratic values around the world.” “Protecting sensitive American technology – like source code for ‘smart’ automotive manufacturing equipment or items used to develop quantum cryptography – from being illegally acquired by our adversaries is why we stood up the Disruptive Technology Strike Force,” said Matthew S. Axelrod, Assistant Secretary for Export Enforcement at the Department of Commerce. “The Strike Force actions announced today reflect the core mission of our Export Enforcement team – keeping our country’s most sensitive technologies out of the world’s most dangerous hands.” “The theft of technology and trade secrets from U.S. companies is a threat to our economic and national security,” said Assistant Director Suzanne Turner of the FBI’s Counterintelligence Division. “The charges announced today aren’t the only instances of foreign adversaries trying to steal our technology. Combating the illegal transfer of technology is one of the FBI’s highest priorities, and we will continue to work with our federal partners, including the Department of Commerce, to investigate those who steal U.S. technology to ultimately use it in weapons that threaten us and our allies.” “The protection of sensitive U.S. technologies has been and continues to be a top priority for HSI,” said Assistant Director James Mancuso of Homeland Security Investigations. “HSI and the partners of the Strike Force will ensure that the U.S. maintains its technologic edge to protect the economic and national security interests of the United States. The Strike Force will be relentless in its pursuit of bad actors that attempt the theft of any sensitive U.S. technologies.” United States v. Bogonikolos, Eastern District of New York A criminal complaint was unsealed today in federal court in Brooklyn charging Dr. Nikolaos “Nikos” Bogonikolos, 59, of Athens, Greece, with wire fraud conspiracy and smuggling. Bogonikolos was arrested in Paris on May 9 and remains in custody pending the resolution of extradition proceedings. “As alleged, while ostensibly operating as a defense contractor for NATO and other ally countries, the defendant and his Aratos Group were double dealing, helping to fuel Russia’s war effort and their development of next generation weapons,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Our office continues to work tirelessly to ensure that disruptive technologies do not fall into the wrong hands.” As alleged in the complaint, the defendant headed the Aratos Group (Aratos), a collection of defense and technology companies in the Netherlands and Greece, which are both member countries of the North Atlantic Treaty Organization (NATO). According to Aratos’s website, the companies’ areas of expertise included space technologies, homeland security, blockchain, and counter-drone systems. One of Aratos’ subsidiaries, Aratos Systems BV, was a finalist in the NATO Innovation Challenge for space applications in 2021 for a proposal involving the use of artificial intelligence and blockchain technology for satellites and spacecraft. The defendant presented himself having experience advising the European Parliament and “governments worldwide,” and Aratos supplied defense equipment and related technologies to countries in the Middle East, Africa and Asia. However, as alleged in the complaint, since 2017 the defendant has been involved in smuggling U.S.-origin military and dual-use technologies to Russia in violation of U.S. law. These highly regulated and sensitive components included advanced electronics and sophisticated testing equipment used in military applications, including quantum cryptography and nuclear weapons testing, as well as tactical battlefield equipment. The defendant claimed that these items were to be used by Aratos, when in reality they were reshipped and sent to Russia in violation of U.S. law. Some of the Russian end users included nuclear and quantum research facilities, as well as Military Unit 33949, part of the Russian Foreign Intelligence Service, known as the SVR. As described in the complaint, many of these orders were solicited by Serniya Engineering and Sertal LLC (the Serniya Network), Moscow-based companies that operate under the direction of Russian intelligence services. Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, and several individuals and companies used in the scheme, calling them “instrumental to the Russian Federation’s war machine.” As alleged in the complaint, the defendant was recruited as a procurement agent for Russia in 2017. In an email message with a Serniya affiliate, on Dec. 27, 2017, the defendant was told to come to Moscow alone “since the agenda will be a very sensitive one.” Regarding one subsequent order, the defendant advised that he would falsify an export license, saying “I sign that the items are only for Netherlands ;) . . . Sensitive case . . . For the same reason I cannot press the [U.S.] supplier.” The defendant also signed several false end use statements and provided them to U.S. companies, certifying that Aratos was the end user of the requested items, that Aratos would not reexport the goods elsewhere, and that the goods would not be used for weapons development. The FBI New York Field Office is investigating the case. Assistant U.S. Attorney Artie McConnell and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance provided by Litigation Analyst Ben Richmond. The Justice Department’s Office of International Affairs provided valuable support to the investigation. The United States thanks French authorities for their assistance. The investigation was also coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing sanctions, export controls and economic countermeasures imposed in response to Russia’s unprovoked military invasion of Ukraine. For more on the work of Task Force KleptoCapture, see here . United States v. Besedin and Patsulya, District of Arizona On May 11, two Russian nationals, Oleg Sergeyevich Patsulya and Vasilii Sergeyevich Besedin were arrested in the District of Arizona and charged via criminal complaint with conspiracy to violate the Export Control Reform Act (ECRA) and conspiracy to commit international money laundering. The complaint alleges that Patsulya and Besedin, both of whom reside in Miami-Dade County, Florida, used their Florida limited liability company, MIC P&I, LLC, and worked with others to evade U.S. export laws and regulations to send aircraft parts to Russian airline companies. The complaint alleges that Patsulya and Besedin fielded requests for parts directly from the Russian airlines — many of which were already subject to increased export sanctions as a result of Russia’s further invasion of Ukraine — and then used intermediary companies and foreign bank accounts in third-party countries to mask the true identity of the customers and the source of payments. Patsulya and Besedin then approached aircraft parts suppliers in the United States, lied about who their customers were, and lied about where the parts would be going. In furtherance of their criminal conspiracy, Patsulya and Besedin traveled to the District of Arizona in September 2022 and attempted to purchase export-controlled aircraft brake systems from an Arizona aircraft parts supply company. If convicted, the defendants face up to 20 years in prison for violating the ECRA and up to 20 years in prison for conspiring to commit international money laundering. The BIS Phoenix Field Office and the FBI Phoenix Field Office are conducting the joint investigation. The BIS Boston Field Office, FBI Miami Field Office, HSI Phoenix Field Office, Customs and Border Protection-Phoenix Field Office, and the U.S. Marshals Office in Miami provided valuable assistance. Assistant U.S. Attorneys Todd M. Allison and William G. Voit for the District of Arizona and Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida provided valuable assistance. The investigation was also coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing sanctions, export controls and economic imposed in response to Russia’s unprovoked military invasion of Ukraine. United States v. Li, Central District of California A California man was arrested on May 6 in the Central District of California on criminal charges related to his alleged theft of sensitive technologies from his Southern California-based employers and use of them to market his own competing company to businesses in the PRC. According to court documents, Liming Li, 64, of Rancho Cucamonga, stole trade secrets belonging to two of his former employers based in Southern California then used them to build his own competing business in China. Li was arrested at Ontario International Airport on May 6 after arriving on a flight from Taiwan pursuant to a criminal complaint that charges him with theft of trade secrets. Since his arrest, Li has been in federal custody, and he has a detention hearing scheduled for May 22. “Li stole thousands of files of sensitive technology that did not belong to him and used it to help foreign companies build competing technology – technology that could be used in the manufacture of nuclear submarines and military aircraft,” said U.S. Attorney Martin Estrada for the Central District of California. “Protecting our nation’s national security is paramount, and my office will aggressively investigate and prosecute those who misappropriate sensitive intellectual property to the benefit of foreign actors.” According to an affidavit filed with the complaint, from 1996 to November 2019, Li worked in various engineering, management, and software development roles for two companies in Southern California software businesses. The companies are identified in court documents as “Company #1” and “Company #2.” These software programs are related to high precision measurement studies interpretation and point cloud technology, which often are used in making 3D models. They can be used in various sensitive manufacturing contexts, including manufacturing parts for nuclear submarines and military aircraft, and are subject to U.S. export controls for national security, nuclear nonproliferation and anti-terrorism reasons. As a result of its military application, federal law mandates that this software cannot be exported to the PRC without a license from the Department of Commerce. Li worked for Company #1 from 1996 to 2018 and then worked at Company #2 from 2018 until November 2019. Shortly before beginning his employment with the Company #2, Li and his wife established their own business, JSL Innovations, which was based out of their Rancho Cucamonga home. After Company #2 terminated Li, company security discovered that Li was using his company-issued laptop to attempt to download files from Company #2’s root directory onto his personal external hard drive, according to the complaint affidavit. Company security searched Li’s company-issued laptop and found a folder labeled “ChinaGovernment.” That folder allegedly contained numerous documents showing Li’s efforts to participate in the PRC’s Thousand Talents Program and to use JSL Innovations to provide services and technology to PRC business and government entities related to the export-controlled and trade secret technology that Li took from his former employers in Southern California. In March 2020, Li entered into an agreement with a PRC-based manufacturing company to serve as its chief technology officer. Li’s agreement with this employer required him to spend at least six months per year in the PRC. Six months later, FBI agents executed a search warrant at Li’s home and found numerous digital devices containing millions of files belonging to Company #1 and Company #2 and containing the source code for those companies’ proprietary software, the complaint alleges. Although the source code files had been developed by and belonged to these companies, some of the files had been moved into folders labeled “JSL” or “JSL Projects.” Both Company #1 and Company #2 derive significant value from the secrecy of their proprietary software source code and take extensive steps to protect the source code from discovery by competitors. If convicted, Li faces a statutory maximum sentence of 10 years in federal prison. The FBI is investigating this matter with substantial assistance from the Department of Commerce BIS. Assistant U.S. Attorneys Solomon Kim of the Terrorism and Export Crimes Section; David Ryan, Chief of the Terrorism and Export Crimes Section; Aaron Frumkin of the Cyber and Intellectual Property Crime Section; and Trial Attorney Stephen Marzen of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. United States v. Wang, Northern District of California Today, a federal court in the Northern District of California unsealed an indictment of former Apple Incorporated (Apple) employee Weibao Wang, 35, formerly of Mountain View, California, for charges related to his alleged theft and attempted theft of trade secrets in connection with a scheme to access, download, and steal Apple technology related to autonomous systems. According to the indictment, Apple hired Wang to work as a software engineer beginning in March 2016. The indictment describes how Wang signed a confidentiality agreement with Apple. The indictment further states that Apple provided Wang with in-person secrecy training that covered the appropriate handling of confidential material and established rules prohibiting the transfer and transmission of the company’s intellectual property without Apple’s consent. Wang was assigned to work with a team at Apple that designed and developed hardware and software for autonomous systems, which can have a variety of applications, such as self-driving cars. According to the indictment, in November 2017, Wang signed a letter accepting an offer of full-time employment as a staff engineer with the U.S.-based subsidiary of a company headquartered in the PRC. The parent company is described in the indictment as “COMPANY ONE” and allegedly was working to develop self-driving cars. The indictment alleges Wang waited more than four months after signing the new employment agreement before informing Apple that he was resigning. After Wang’s last day at Apple on April 16, 2018, Apple representatives reviewed access logs documenting historical activity on Apple’s network. Apple identified Wang as having accessed large amounts of sensitive proprietary and confidential information in the days leading up to his departure from Apple. The indictment describes the June 27, 2018, search by law enforcement of Wang’s Mountain View residence and the discovery of large quantities of data taken from Apple prior to his departure. Wang was present during the search and told agents he had no plans to travel. Nevertheless, Wang purchased a one-way plane ticket from San Francisco International Airport to Guangzhou, China and boarded a flight that night. The indictment describes six categories of trade secrets that Wang allegedly stole, or attempted to steal, and charges him with one count for each category. Wang faces a maximum statutory sentence of 10 years in prison and a fine in the amount of $250,000 (or twice the gross gain or loss resulting from the scheme) for each count of theft or attempted theft of trade secrets. The FBI is investigating the case. Assistant U.S. Attorneys Sloan Heffron and Marissa Harris for the Northern District of California are prosecuting the case. Within the National Security Division, this matter is being handled by Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section. United States v. Xiangjiang Qiao, Southern District of New York Today, a federal court in the Southern District of New York unsealed an indictment charging Xiangjiang Qiao aka Joe Hansen, 39, of the People’s Republic of China with sanctions evasion, money laundering, and bank fraud offenses based on Qiao’s alleged participation in a scheme to use a sanctioned Chinese company to provide materials used in the production of WMDs to Iran, in exchange for payments made through the U.S. financial system. Qiao is at large in China. “As alleged, Xiangjiang Qiao conspired to send isostatic graphite to Iran, in violation of U.S. sanctions. Isostatic graphite is a high-tech material used in the nose tips of intercontinental ballistic missiles,” said U.S. Attorney Damian Williams for the Southern District of New York. “The Iranian regime of terror and repression, and those who facilitate it, pose a grave threat to our national security. This office will continue to work relentlessly to bring to justice those who advance the interests of the Iranian regime and thereby threaten the safety and security of the American people.” According to court documents, Qiao is a Chinese national and an employee of the China-based company Sinotech Dalian Carbon and Graphite Manufacturing Corporation (Sinotech Dalian). Sinotech Dalian is part of a network of Chinese companies involved in the proliferation of WMDs and that, in particular, provide assistance in the procurement of materials for Iran’s ballistic missile program. In 2014, OFAC sanctioned Sinotech Dalian, adding the company to OFAC’s SDN and Blocked Persons list, explaining that Sinotech Dalian is part of a network of China-based entities used to proliferate WMDs and, specifically, to aid Iranian ballistic missile procurement. Sinotech Dalian’s inclusion on the SDN list prohibits it from using the U.S. financial system to conduct transactions without authorization from OFAC. Qiao is an associate of Li Fangwei, aka Karl Lee, who managed the Sinotech Dalian network of companies and was charged in 2014 with sanctions evasion and other offenses based on his alleged illicit activities as a principal contributor to Iran’s ballistic missile program through China-based entities. In willful violation of U.S. sanctions on Iran and Sinotech Dalian, between at least March 2019 and September 2022, Qiao participated in a scheme to use Sinotech Dalian, including through transactions involving the U.S. financial system, to supply isostatic graphite to Iran for the production of WMDs. Isostatic graphite is a type of graphite with an ultra-fine grain that is used in the manufacture of WMDs. In particular, isostatic graphite is used in the manufacture of rocket nozzles and reentry vehicle nose tips in intercontinental ballistic missiles. Qiao further took steps to conceal Sinotech Dalian’s involvement in the transaction by creating a bank account in the name of a front company to receive two transfers from a U.S. bank totaling over $15,000 as part of his efforts to facilitate the supply of isostatic graphite to Iran. Qiao is charged with one count of conspiracy to violate U.S. sanctions against Iran and Sinotech Dalian, in violation of the International Emergency Economic Powers Act (IEEPA), which carries a maximum sentence of 20 years in prison; two counts of violating the IEEPA, which each carry a maximum sentence of 20 years in prison; one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; two counts of attempted bank fraud, which each carry a maximum sentence of 30 years in prison; one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and two counts of money laundering, which each carry a maximum sentence of 20 years in prison. The FBI New York Field Office and Counterintelligence Division are investigating the case. Assistant U.S. Attorneys Gillian S. Grossman and Nicholas S. Bradley for the Southern District of New York are prosecuting the case. Within the National Security Division, this matter is being handled by Trial Attorney S. Derek Shugert of the Counterintelligence and Export Control Section. * * * Today’s actions were coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws. An indictment, complaint or criminal information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Russian National Charged with Ransomware Attacks Against Critical Infrastructure

body_text: The Justice Department today unsealed two indictments charging a Russian national and resident with using three different ransomware variants to attack numerous victims throughout the United States, including law enforcement agencies in Washington, D.C. and New Jersey, as well as victims in healthcare and other sectors nationwide. According to the indictment obtained in the District of New Jersey, from at least as early as 2020, Mikhail Pavlovich Matveev, aka Wazawaka, aka m1x, aka Boriselcin, aka Uhodiransomwar, allegedly participated in conspiracies to deploy three ransomware variants. These variants are known as LockBit, Babuk, and Hive, and Matveev transmitted ransom demands in connection with each. The perpetrators behind each of these variants, including Matveev, have allegedly used these types of ransomware to attack thousands of victims in the United States and around the world. These victims include law enforcement and other government agencies, hospitals, and schools. Total ransom demands allegedly made by the members of these three global ransomware campaigns to their victims amount to as much as $400 million, while total victim ransom payments amount to as much as $200 million. “From his home base in Russia, Matveev allegedly used multiple ransomware variants to attack critical infrastructure around the world, including hospitals, government agencies, and victims in other sectors,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These international crimes demand a coordinated response. We will not relent in imposing consequences on the most egregious actors in the cybercrime ecosystem.” On or about June 25, 2020, Matveev and his LockBit coconspirators allegedly deployed LockBit ransomware against a law enforcement agency in Passaic County, New Jersey. Additionally, on or about May 27, 2022, Matveev and his Hive coconspirators allegedly deployed Hive against a nonprofit behavioral healthcare organization headquartered in Mercer County, New Jersey. On April 26, 2021, Matveev and his Babuk coconspirators allegedly deployed Babuk against the Metropolitan Police Department in Washington, D.C. “From Russia and hiding behind multiple aliases, Matveev is alleged to have used these ransomware strains to encrypt and hold hostage for ransom the data of numerous victims, including hospitals, schools, nonprofits, and law enforcement agencies, like the Metropolitan Police Department in Washington, D.C.,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Thanks to the extraordinary investigative work of prosecutors from my office and our FBI partners, Matveev no longer hides in the shadows – we have publicly identified his criminal acts and charged him with multiple federal crimes. Let today’s charges be a reminder to cybercriminals everywhere – my office is devoted to combatting cybercrime and will spare no resources in bringing to justice those who use ransomware attacks to target victims.” According to the indictment obtained in the District of Columbia, between April 21, 2021, and May 9, 2021, Matveev allegedly participated in conspiracies to deploy Babuk and to transmit a ransom demand. Specifically, on April 26, 2021, Matveev and his Babuk co-conspirators allegedly deployed Babuk ransomware against the Metropolitan Police Department in Washington, D.C., and then threatened to disclose sensitive information to the public unless a payment was made. “Data theft and extortion attempts by ransomware groups are corrosive, cynical attacks on key institutions and the good people behind them as they go about their business and serve the public,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Whether these criminals target law enforcement, other government agencies, or private companies like health care providers, we will use every tool at our disposal to prosecute and punish such offenses. Thanks to exceptional work by our partners here, we identified and charged this culprit.” “The FBI is steadfast in our commitment to disrupting cybercriminals like Matveev,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “The FBI will continue to impose costs on cyber adversaries through our joint collaboration with our private sector and international partners, and we will not tolerate these criminal acts against American citizens.” The LockBit ransomware variant first appeared around January 2020. LockBit actors have executed over 1,400 attacks against victims in the United States and around the world, issuing over $100 million in ransom demands and receiving over $75 million in ransom payments. The Babuk ransomware variant first appeared around December 2020. Babuk actors executed over 65 attacks against victims in the United States and around the world, issuing over $49 million in ransom demands and receiving as much as $13 million in ransom payments. Since June 2021, the Hive ransomware group has targeted more than 1,400 victims around the world and received as much as $120 million in ransom payments. The LockBit, Babuk, and Hive ransomware variants operated in the same general manner: first, the ransomware actors would identify and unlawfully access vulnerable computer systems, sometimes through their own hacking, or by purchasing stolen access credentials from others. Second, the actors would deploy the ransomware variant within the victim computer system, allowing the actors to encrypt and steal data thereon. Next, the actors would send a ransom note to the victim demanding a payment in exchange for decrypting the victim’s data or refraining from sharing it publicly. Finally, the ransomware actors would negotiate a ransom amount with each victim willing to pay. If a victim did not pay, ransomware actors would often post that victim’s data on a public website, often called a data leak site. Matveev is charged with conspiring to transmit ransom demands, conspiring to damage protected computers, and intentionally damaging protected computers. If convicted, he faces over 20 years in prison. The FBI Newark Field Office’s Cyber Crimes Task Force is investigating the case with valuable assistance from the Jersey City Police Department, New Jersey State Police, Newark IRS Criminal Investigation, and international partners from European Cyber Crime Centre of Europol, National Police Agency of Japan, Gendarmerie Nationale Cyberspace Command of France, National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, High-Tech Crime Unit of the Dutch Police Services Agency of the Netherlands, Bundeskriminalamt and Landeskriminalamt of Germany, Mossos d'Esquadra Police Department of Spain, Norwegian Police Service of Norway, and Swedish Police Authority of Sweden. Trial Attorneys Jessica C. Peck, Benjamin Proctor, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS); Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold for the District of New Jersey’s Cybercrime Unit in Newark; and Assistant U.S. Attorney Elizabeth Aloi for the District of Columbia’s Fraud, Public Corruption, and Civil Rights Section are prosecuting the case. The FBI Tampa Field Office and Orlando Resident Agency, along with Assistant U.S. Attorney Chauncey Bratt for the Middle District of Florida and CCIPS Trial Attorneys Christen Gallagher and Alison Zitron, made critical contributions to the case. The FBI Washington Field Office and Metropolitan Police Department also provided valuable assistance. The Justice Department’s Office of International Affairs and National Security Division also provided significant assistance. Victims of LockBit, Babuk, or Hive ransomware should contact their local FBI field office for further information. For additional information on ransomware, including the LockBit, Babuk, and Hive variants, please visit StopRansomware.gov. Additionally, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced that it is designating the defendant for his role in launching ransomware attacks against U.S. law enforcement, businesses, and critical infrastructure. Finally, the Department of State has also announced an award of up to $10 million for information that leads to the arrest and/or conviction of this defendant. Information that may be eligible for this award can be submitted at tips.fbi.gov. Congress established the Transnational Organized Crime Rewards Program in 2013 to support law enforcement efforts to dismantle transnational criminal organizations and bring their leaders and members to justice. The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs manages the program in coordination with other U.S. federal agencies. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Ransomware Charges Unsealed Against Russian National

body_text: WASHINGTON – An indictment was unsealed today in the District of Columbia charging a Russian national with participating in a global ransomware campaign which deployed ransomware variants against victims in the District of Columbia, the United States, and around the world. Mikhail Pavlovich Matveev, alleged to use the online monikers Wazawaka, m1x, Broriscelcin, and Uhodiransomwar, 30, of Kaliningrad, Russia, is charged with intentional damage to a protected computer and threats relating to a protected computer. The charges were announced by U.S. Attorney for the District of Columbia Matthew M. Graves, Special Agent in Charge James Dennehy, of the FBI’s Newark Field Office, “Data theft and extortion attempts by ransomware groups are corrosive, cynical attacks on key institutions and the good people behind them as they go about their business and serve the public,” said U.S. Attorney Graves. “Whether these criminals target law enforcement, other government agencies, or private companies like health care providers, we will use every tool at our disposal to prosecute and punish such offenses. Thanks to exceptional work by our partners here, we identified and charged this culprit.” “We want the indictment, sanctions and reward for Mikhail Matveev to sound an alarm in the ranks of cyber criminals all over the world,” said SAC Dennehy. “The FBI and our law enforcement partners, as well as our international partners, are coming after you. These malicious actors believe they can operate with impunity – and don’t fear getting caught because they sit in a country where they feel safe and protected. That may be the case now, but the safe harbor may not exist forever. When we have an opportunity, we will do everything in our power to bring Matveev and his ilk to justice.” According to the indictment, from as early as 2020, Matveev was an active member of Babuk, a global ransomware campaign which ranked among the most active and destructive cybercriminal threats in the world. Specifically, on April 26, 2021, the Babuk conspirators deployed Babuk ransomware against the Metropolitan Police Department in Washington, D.C. and then threatened to disclose sensitive information to the public unless a payment was made. As part of the ransomware conspiracy which attacked MPD, Matveev allegedly intentionally infected MPD’s computer systems with Babuk ransomware, stole data, and then attempted to extort MPD, threatening disclosure of sensitive information unless payment was made. The actions caused at least $5,000 in losses to MPD. Matveev is also charged with a series of similar crimes in an indictment filed in the District of New Jersey. Intentional damage to a protected computer carries a statutory maximum of 10 years in prison. Threats relating to a protected computer carries a statutory maximum of 10 years in prison. The charges also carry potential financial penalties. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. This case is being investigated by the FBI’s Newark Field Office with assistance from the FBI’s Washington Field Office, and the Metropolitan Police Department. As part of a broader investigation involving charges in the District of New Jersey, assistance was provided by New Jersey State Police, Newark IRS Criminal Investigation, and the International partners from European Cyber Crime Centre of Europol, National Police Agency of Japan, Gendarmerie Nationale Cyberspace Command of France, National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, High-Tech Crime Unit of the Dutch Police Services Agency of the Netherlands, Bundeskriminalamt and Landeskriminalamt of Germany, Mossos d'Esquadra Police Department of Spain, Norwegian Police Service of Norway and Swedish Police Authority of Sweden. This case is being prosecuted by Assistant U.S. Attorneys Elizabeth Aloi of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Ben Proctor of the Justice Department’s Computer Crime and Intellectual Property Section. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Coal Broker Charged with Filing False Returns and Obstructing the IRS

component: Tax Division

body_text: A federal grand jury in Charlotte, North Carolina, returned an indictment today charging a man with filing false individual tax returns and attempting to obstruct an IRS audit and criminal investigation. According to the indictment, Vondie Brunty owned and operated West Star Management Inc. (WSM), a company that, from 2005 to April 2015, co-owned a coal brokerage business through which WSM received income on behalf of Brunty. Brunty allegedly caused WSM to surrender its ownership of the coal brokerage in approximately April 2015, but he allegedly continued to earn income through WSM by, among other things, hauling coal for the coal brokerage and selling timber rights to a lumber business. The indictment alleges that, despite earning income, Brunty did not file personal tax returns for 2011 through 2013. During an IRS audit of the unfiled returns, Brunty allegedly made multiple false and misleading statements and did so again during an interview with IRS criminal investigators. The indictment further charges that, after learning of the criminal investigation, Brunty late-filed a 2014 tax return in January 2021 and a 2015 tax return in August 2021, both of which allegedly underreported his income. Brunty faces a maximum penalty of three years in prison for obstructing the IRS and for each false return count. 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 Dena J. King for the Western District of North Carolina made the announcement. IRS-Criminal Investigation is investigating the case. Trial Attorneys Ashley Stein and Alexander Effendi of the Justice Department’s Tax Division and Assistant U.S. Attorney Caryn Finley of the Western District of North Carolina are prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Assistant Attorney General Kenneth A. Polite, Jr. Delivers Remarks at First Colloquium Bringing Together 20 African Countries to Collaborate on Pretrial Detention Issues

component: Civil Rights - Criminal Section

body_text: Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division joined the Honorable Chief Justice of the Kenya Supreme Court Martha Koome and Kenya Director of Public Prosecutions Noordin Haji in delivering remarks today to kick off the first Africa Regional Colloquium on “Enhancing the Delivery of Justice by Addressing Pretrial Detention Challenges.” The three-day colloquium in Nairobi, Kenya, brings together representatives of 20 African governments to explore initiatives designed to strike the appropriate balance between public safety and national security and fairness and the efficient, orderly administration of justice, including by reducing pretrial detention. Government representatives are engaging with each other on topics including the causes and consequences of excessive pretrial detention, international norms, alternatives to pretrial detention, developing plea agreement regimes to reduce pretrial detention, and the unique challenges presented by terrorism and violent extremism. They will also discuss examples of initiatives from Kenya and Senegal. “Events like today’s provide us opportunities to learn from each other, consider new approaches, and reaffirm our shared commitment to advancing the rule of law,” said Assistant Attorney General Polite. “These opportunities reinvigorate us, equip us with more tools, and build closer partnerships to help overcome shared challenges and meet our responsibilities to our citizens and the international community.” Chief Justice Koome delivered the keynote address. “In the pursuit of justice, the principle of ‘innocent until proven guilty’ is sacrosanct. This principle is often put to the test in the face of pretrial detention,” said Justice Koome. “As custodians of the law, we must strive to ensure that our justice systems are both efficient and effective. We must work towards reducing case backlogs, streamline court processes, and leverage on technology to expedite court proceedings. We must embrace the view that justice is not merely punitive but is also preventive and restorative. It is a mechanism for social change or social transformation.” Kenya Director of Public Prosecutions Haji highlighted the initiatives that Kenya has taken through the implementation of alternatives to prosecution, such as Diversion and Plea bargaining as well as the All-for-Justice Program, while reiterating the shared values of the Kenyan-U.S. prosecutorial relationship. “This colloquium will enhance International and Regional cooperation amongst criminal justice actors to further develop frameworks and mechanisms which will incorporate human rights, socio- political, cultural and economic realities, to reduce on pretrial detention,” said Director Haji. “It is our responsibility to ensure that pretrial detention is used in a manner that upholds the rule of law, respects human rights, and fosters public trust in the criminal justice system. By doing so, we can ensure that justice is served in a manner that is fair, just, and humane.” Kenya’s Judiciary and Office of the Director of Public Prosecutions hosted the Colloquium, which is being sponsored by several partners, including the U.S. Department of Justice’s Office of Overseas Prosecutorial Development Assistance and Training (OPDAT), the U.S. Department of State’s Bureau of Counterterrorism and Bureau of International Narcotics and Law Enforcement, the United Nations Office of Drugs and Crime, the European Union-funded Anti-Money Laundering–Countering the Financing of Terrorism (AML-CFT) Platform in East, South, Center of Africa and Yemen (ESCAY), the British High Commission in Kenya and the International Institute for Justice Malta. OPDAT has been working with African partners to improve their policies and practices that can lead to excessive pretrial detention of suspects, by both rediscovering their existing legal mechanisms and developing new tools to reduce excessive detention. Reductions in unnecessary detention will have cascading benefits throughout criminal justice systems by reducing overcrowding in the prisons, limiting exposure of vulnerable detainees to violent extremist rhetoric in those prisons, and reducing caseloads to permit police, prosecutors, and judges to focus on priority cases. Government officials from the following countries participated in the Colloquium: Algeria, Benin, Botswana, Burkina Faso, Cameroon, Chad, Cote d’Ivoire, Democratic Republic of the Congo, Ghana, Kenya, Malawi, Morocco, Niger, Nigeria, Senegal, Somalia, Tanzania, Togo, Uganda, and Zambia. Please visit www.justice.gov/criminal-opdat for more information about OPDAT’s capacity building efforts around the world.


title: Man Pleads Guilty to Conspiracy to Sell Stolen Financial Information on Dark Web

body_text: An Illinois man pleaded guilty yesterday to leading a conspiracy to sell stolen financial information on the dark web, aka darknet. According to court documents, Michael D. Mihalo, aka Dale Michael Mihalo Jr., 40, of Naperville, was the founder of a darknet “carding” site called Skynet Market, which was used to sell stolen financial information on the internet. Operating under the moniker ggmccloud1, Mihalo and his co-conspirators were also prominent vendors on additional darknet markets, including AlphaBay Market, Wall Street Market, and Hansa Market. Each market required users to conduct transactions in digital currencies, including Bitcoin. Through these markets, Mihalo and his co-conspirators sold the stolen financial information, primarily the credit and debit card numbers and associated information, of tens of thousands of U.S. victims between Feb. 22, 2016, and Oct. 1, 2019. Mihalo assembled and directed the team that helped him sell this stolen financial information on the darknet. Each of the co-conspirators benefitted from the trusted reputation Mihalo, as ggmccloud1, had built on the darknet sites to sell more stolen financial information than they would have been able to sell individually. Taylor Ross Staats, 40, of Texas, conspired with Mihalo and others to sell stolen financial information on the internet. Staats served as a “card-checker,” who ensured the financial information sold by Mihalo and others on multiple darknet sites remained active and had not been canceled by the relevant financial institutions. Staats personally earned at least $21,000 worth of Bitcoin for these services. Mihalo personally possessed, sent, and received the information associated with 49,084 stolen payment cards with the intent that the payment card information would be trafficked on darknet sites, all in furtherance of the conspiracy. Mihalo earned at least $1 million worth of cryptocurrencies at the time of the sales, including Bitcoin, Ethereum, and Monero. These funds have significantly appreciated since that time. Mihalo pleaded guilty to one count of conspiracy to commit access device fraud, one count of access device fraud, and six counts of money laundering. He will be sentenced on a later date. He faces a maximum penalty of five years in prison for the conspiracy count and a maximum penalty of 10 years in prison on each of the remaining counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Under the terms of his plea agreement, Mihalo must also forfeit to the government any property he personally obtained through the offenses, including several million dollars’ worth of cryptocurrency, financial accounts, and real property, and has agreed to entry of a money judgment of an amount to be determined by the judge at sentencing. Mihalo is the second defendant to plead guilty in this case. Staats pleaded guilty on Dec. 14, 2022, to one count of conspiracy to commit access device fraud in connection with his role as “card-checker” for Mihalo and the other co-conspirators. He faces a maximum penalty of five years in prison for the conspiracy count and will be sentenced on a later date. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Assistant Director Bryan Vorndran of the FBI’s Cyber Division, and Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office made the announcement. The FBI Kansas City Field Office investigated the case. Senior Counsel Louisa Becker of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Matthew Blackwood for the Western District of Missouri are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance. The Justice Department also thanks its law enforcement colleagues at the Royal Canadian Mounted Police in Canada for their assistance in this case. Stolen victim payment card information obtained over the course of the investigation has been and/or will continue to be provided to the financial institutions that issued the payment cards. If you were active on Skynet Market, AlphaBay Market, Wall Street Market, or Hansa Market; have been in contact with any of Skynet Market’s administrators; or believe your financial information may have been stolen and sold on any of these markets between Feb. 22, 2016, and Oct. 1, 2019, please file a report with the FBI’s Internet Crime Complaint Center (ic3.gov) and reference this press release.


title: Former Fugitive Pleads Guilty to Laundering Money Embezzled from Kuwaiti Embassy

body_text: A Virginia man pleaded guilty today to a money laundering conspiracy involving funds embezzled from the Embassy of Kuwait’s health office in Washington, D.C. According to court documents, from approximately January through September 2014, Ahmed El Khebki, aka Ahmed Khider El Khebki, of Lorton, conspired to launder money embezzled from the Kuwaiti Embassy. El Khebki and his co-conspirators stole money from the embassy’s health office earmarked to pay for medical care for Kuwaiti citizens who traveled to the United States to receive treatment at, among other places, Johns Hopkins Hospital and MedStar Georgetown University Hospital. To embezzle and launder the funds, El Khebki and his co-conspirators created fake companies with names meant to mimic actual U.S. healthcare providers, including “Hopiken” and “MedStar.” The co-conspirators then submitted fraudulent invoices to the health office, claiming that they had provided medical services to real Kuwaiti citizens under the auspices of those fake companies. Employees at the health office in the embassy who were in on the scheme approved the invoices and wrote checks to El Khebki and his co-conspirators’ fake companies. During the course of the conspiracy, the health office paid more than $1.5 million in fraudulent invoices. El Khebki personally deposited hundreds of thousands of dollars of stolen funds into accounts he controlled and used the stolen funds to make numerous personal purchases. El Khebki joins two co-conspirators, Wael Sedik and Huwida Fadl, in pleading guilty for his role in the conspiracy. El Khebki’s co-defendant and co-conspirator Hussein Fadl Osman remains at large. El Khebki pleaded guilty to money laundering. He is scheduled to be sentenced on Aug. 24 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. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C. made the announcement. HSI investigated the case. Senior Trial Attorney Jonathan Baum and Trial Attorney Shai D. Bronshtein of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case as part of the department’s Kleptocracy Asset Recovery Initiative. The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov .


title: Former Head of Non-Governmental Organization Sentenced for Bribing Officials of Republic of Marshall Islands

body_text: The former president of a New York-based non-governmental entity (NGO) was sentenced today to three years and six months in prison for paying bribes to elected officials of the Republic of the Marshall Islands (RMI) in exchange for passing certain legislation. According to court documents, beginning in or around 2016 and continuing until at least August 2020, Cary Yan, 51, conspired with others – including his assistant, Gina Zhou – in connection with a multi-year bribery scheme. Yan offered and paid tens of thousands of dollars in bribes to high-level RMI officials, including members of the RMI legislature, in exchange for supporting legislation creating a semi-autonomous region within the RMI called the Rongelap Atoll Special Administrative Region (RASAR) that would benefit the business interests of Yan and his associates. Yan carried out the bribery scheme using the New York-based NGO, including the physical use of its headquarters in Manhattan, to meet and communicate with RMI officials. In December 2022, Yan and Zhou each pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practice Act. On Feb. 16, Zhou was sentenced to two years and seven months in prison for her role in the scheme. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Damian Williams for the Southern District of New York, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement. The FBI New York Field Office investigated the case. The Royal Thai Government, the U.S. Department of State’s Diplomatic Security Service, the Embassy of the United States in Bangkok, and the Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Yan. Assistant Chief Gerald M. Moody, Jr. and Trial Attorney Anthony Scarpelli of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Hagan Scotten, Lara Pomerantz, and Derek Wikstrom for the Southern District of New York prosecuted the case. The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .


title: Convicted Felon Sentenced to Five Years and a Month in Prison

body_text: BIRMINGHAM, Ala. – A federal judge today sentenced a convicted felon for illegal possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson. U.S. District Court Judge Karon O. Bowdre sentenced Dantrell Dujuan Purifoy , 30, of Warrior, to 61 months in prison. Purifoy pleaded guilty to being a felon in possession of a firearm in January. According to the plea agreement, on July 27, 2022, a Warrior police officer received a license plate reader report on a stolen vehicle. The officer saw Purifoy pull into a residence in Warrior. The officer recognized Purifoy from prior interactions with law enforcement. The officer exited the vehicle and held Purifoy at gunpoint. Purifoy backed his vehicle up, accelerated forward, and struck the officer’s driver’s side door, causing injury to the officer’s foot. Purifoy fled in the stolen vehicle and the officer pursued him. The pursuit ended when Purifoy lost control of the vehicle and ran off a cliff. Purifoy was able to escape the vehicle and fled on foot. The Warrior Police Department canine unit was deployed, and Purifoy was apprehended by the officers. Officers recovered a Taurus 9mm pistol from the vehicle. Purifoy was prohibited from possessing a firearm because of prior felony convictions. Purifoy was convicted on November 8, 2017, in the Circuit Court of St. Clair County, Alabama, of the offense of Unlawful Possession of a Controlled Substance; convicted on February 26, 2018, in the District Court of Jefferson County, Alabama, of the offense of Certain Persons Forbidden to Possess Pistol; convicted on March 18, 2019, in the Circuit Court of Jefferson County, Alabama, of the offense of Receiving Stolen Property, First Degree; and convicted on August 5, 2019, in the Circuit Court of Blount County, Alabama, of the offenses of Burglary, Third Degree, and Theft of Property, Second Degree. ATF investigated the case, along with the Warrior Police Department. Assistant U.S. Attorney Michael A. Royster is prosecuted the case.


title: Cincinnati man arrested, charged with sex trafficking & exploiting teens

component: USAO - Ohio, Southern

body_text: CINCINNATI – Federal agents arrested a Cincinnati man today on charges alleging he sexually trafficked and exploited two teenage girls. Kelly Richards, 42, appeared in federal court in Cincinnati at 1:30pm today. His case was unsealed at that time. Richards is also known as “Scorpio” and has a tattoo of a scorpion on the left side of his face. According to an affidavit filed in support of the criminal complaint, investigators were alerted in March 2023 that two juveniles had been screened as potential sex trafficking victims. It is alleged that Richards picked up two minor victims who had fled a group home in Dayton and drove them to an apartment complex in Cincinnati. At the apartment, Richards allegedly provided the minors with cocaine before sexually assaulting them. Richards also allegedly enticed the females into having sex with other men for money that was paid to Richards. It is alleged the defendant created prostitution advertisements online with explicit pictures of the minor victims and used physical violence against them. According to the affidavit, one victim was prostituted up to four times per day in hotels and homes. Sexually exploiting children is a federal crime punishable by a range of 15 to 30 years in prison. Sex trafficking children carries a potential penalty of at least 10 years and up to life in prison. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and other members of the FBI’s Anti-Trafficking Task Force announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case. A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law. # # #


title: Security Subcontractor Pleads Guilty to Bomb Threat of Local Democratic Campaign Office

body_text: MACON, Ga. – A former security subcontractor working at the Athens-Clarke County Democratic Party coordinated campaign office pleaded guilty to threatening to bomb their local headquarters while the U.S. Senators from Georgia were in town for campaign events. Jessica Diane Higginbotham aka Jessica Harriod aka Jessica Jones, 35, of Elberton, Georgia, pleaded guilty to one count of communicating a bomb today before U.S. District Judge Tilman E. “Tripp” Self III. Higginbotham faces a maximum sentence of ten years imprisonment and a $250,000 fine. Sentencing is scheduled for Sept. 7. “The bomb threat was leveled by an employee working for a political organization days before a federal election in Georgia; this incident was a targeted effort to disturb the peace and disrupt the democratic process,” said U.S. Attorney Peter D. Leary. “The immediate response and seamless collaboration by all levels of law enforcement safeguarded the community and helped bring the defendant to justice.” “The FBI takes all threat-to-life matters very seriously,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This guilty plea demonstrates the FBI’s commitment to hold accountable anyone who tries to intimidate public officials and undermine the foundation of our democracy. It also shows that threatening others with violence and physical harm will have serious repercussions.” "The Athens-Clarke County Police Department is deeply committed to ensuring the safety and security of all individuals in our community. This incident was a grave and concerning matter; however, thanks to the swift response and collaborative efforts, the threat was successfully investigated, and the individual responsible was apprehended,” said ACCPD Police Chief Jerry Saulters. “We will continue to work diligently to safeguard our community and uphold the values that bind us together. Acts of violence and threats have no place in our society, and we stand united against those who seek to harm others or disrupt our democratic processes.” According to court documents, on Dec. 3, 2022, at 6:01 p.m., an employee of the DSCC in Athens received a text message: “Hello, I am writing this message to you to let you know that I am coming by either tonight or in the morning to set a bomb up. So I can blow all the Democrats up. I have other people going to other offices also. If I can’t stop you by breaking in and destroying the property then I will blow every one up. So be ready to be blown up. This is going to either happen tonight or in the morning. Hope you like being on the wrong team.” The FBI began investigating the threat immediately, and officers with the Athens-Clarke County Police Department (ACCPD) responded to the area of the threat. The U.S. Senate runoff election was scheduled to take place on Dec. 6, and elected officials were in Athens participating in campaign events, including both U.S. Senators from Georgia on Dec. 4. Using a series of emergency disclosure requests (EDRs), FBI agents discovered the cell phone belonged to the defendant, who was also working as a contract security officer for a firm employed by the local Democratic coordinated campaign. The U.S. Capitol Police were also investigating the bomb threat, and independently determined that the bomb threat was sent from Higginbotham’s cell phone. On Dec. 4, FBI task force officers located Higginbotham at a coffee shop in Athens with the cell phone in her hands. When she saw the agents approach her, she vomited. At first, she denied sending the bomb threat. A federal search warrant was executed on her cell phone, which linked the email account used in the bomb threat to her. While investigating the bomb threat, agents learned that there had been a break-in at the local Democratic campaign building in Athens on Nov. 27, and a laptop belonging to the campaign was stolen. At the time of the burglary, investigators noted that it appeared to be staged as tables were turned over, but the building was locked with no evidence of a forced entry. Investigators later recovered the stolen laptop with Higginbotham’s personal items. Higginbotham now admits that she used a cell phone to willfully threaten to kill or injure people and unlawfully destroy a building with an explosive. The case was investigated by the FBI, the U.S. Capitol Police, the Athens-Clarke County Police Department and the Elbert County Sheriff’s Office. Deputy Criminal Chief Will R. Keyes is prosecuting the case.


title: Former Surgical Practice Administrator Sentenced to 26 Months in Prison for Embezzling More than a Million Dollars

body_text: BIRMINGHAM, Ala. – A federal judge today sentenced a Shelby County woman for stealing more than a million dollars from the surgical practice where she had worked for fifteen years, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples. U.S. District Court Judge Karon O. Bowdre sentenced Betty Jo “BJ” Latsis , 58, of Birmingham to 26 months in prison followed by three years of supervised release. As a condition of the plea agreement she signed last year, Latsis was required to pay $400,000 back to her victims by the time of sentencing, which she did. At sentencing she was ordered to pay an additional $600,000 in restitution. Latsis pleaded guilty in January to an information charging one count of wire fraud. According to the plea agreement, from 2005 until 2020, Latsis, a registered nurse, worked as office manager and administrator at Colon & Rectal Surgical Associates of Birmingham. Latsis handled bookkeeping and accounting functions for the practice, and she used that position of trust to steal money in a variety of ways. According to court documents, between 2013 and 2020 Latsis transferred hundreds of thousands of dollars from practice accounts to a PayPal account she controlled. She paid herself hundreds of thousands of dollars more than she was authorized to receive. She used practice funds to pay off her personal credit card bills and those of her spouse. She used credit card accounts in doctors’ names to pay personal expenses, including a “7 Night Northern European CityScapes” Royal Caribbean cruise for her and her spouse. And she used practice funds to pay her and her spouse’s personal expenses directly—car lease payments, life insurance premiums, and even an $8,000 home entertainment system from Best Buy. In all, Latsis admitting to stealing more than $1.1 million from the practice during her tenure there. The FBI investigated the case. Assistant U.S. Attorney J.B. Ward prosecuted the case.


title: Burleson Man Charged With Possessing Destructive Device

body_text: A Burleson man who allegedly idolized the Columbine High School shooters has been charged with possessing a homemade bomb, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Noah Robert Calderon, 22, was charged via criminal complaint on April 18 and indicted on May 10 on one count of possession of a destructive device. He made his initial appearance before U.S. Magistrate Judge Jeffrey L. Cureton on May 15, 2023. “This defendant exhibited several indicators of potential violence: a fascination with mass shooters, an obsession with weapons, and hatred towards a protected class. What’s worse, he had allegedly progressed from ideation to planning and preparation,” said U.S. Attorney Leigha Simonton. “In apprehending Mr. Calderon, we may have averted mass tragedy. We are especially grateful to the tipster who alerted law enforcement to Mr. Calderon’s concerning social media posts. We encourage anyone who witnesses worrisome behavior to report it to law enforcement. Texas iWatch is anonymous and available 24/7.” “The FBI’s top priority is to protect the communities we serve from acts of violence. Mr. Calderon’s actions presented a potential threat to the public’s safety, and the FBI moved quickly to ensure no one was harmed, “ said FBI Dallas Special Agent in Charge Chad Yarbrough. “We encourage the public to remain vigilant and contact law enforcement if they see anything suspicious. Awareness allows us to take actions such as we did in this investigation to protect the American public.” According to court documents, the FBI was alerted to SnapChat images allegedly posted by Mr. Calderon in October 2022. In the posts, Mr. Calderon allegedly shared images of homemade explosives, including one marked “SS” – an apparent reference to the infamous Nazi paramilitary organization. On his social media accounts, Mr. Calderon allegedly embraced white supremacist ideology and professed a fascination with high-profile mass shootings, particularly the 1999 massacre at Columbine High School. He posted numerous images of himself in tactical-style vests posing with AR-15-style rifles and handguns and shared Columbine-themed memes. In March 2023, FBI received a tip that Calderon had detonated a homemade bomb in a residential neighborhood. (911 calls about a loud concussive sound and smoke corroborated the account.) Shortly thereafter, agents reviewed Mr. Calderon’s Google account and found searches for the Columbine killers, the Charleston church shooter, “pipe bomb how to make,” “how to make propane bombs,” and “wear [sic] were the propane bombs in Columbine,” as well as searches of the names of several local public schools. They also searched e-commerce activity, which showed that Mr. Calderon allegedly bought two pounds of potassium percholorate, one pound of aluminum powder, and a striped fuse online. On April 17, 2023, agents executed a federal search warrant at Mr. Calderon’s home in Burleson, Texas. In the garage, they located a brown shoe box that contained items that could be used to make and detonate a bomb, including a glass jar marked “frag,” which contained metal bb’s and lead. Near the carboard box was a white plastic container with 659.2 grams of explosive powder. In Mr. Calderon’s room, they recovered a handwritten document labeled “Manifesto” that glorified the Columbine shooters and espoused white supremacy. Indictments and criminal complaints are merely allegations of criminal conduct, not evidence. Mr. Calderone is presumed innocent until proven guilty in a court of law. If convicted, he faces up to 10 years in federal prison. The Federal Bureau of Investigation’s Dallas Field Office, the Burleson Police Department, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Jay Weimer is prosecuting the case.


title: Fentanyl Trafficker Tied to Juvenile Overdoses Pleads Guilty

component: Drug Enforcement Administration (DEA)

body_text: A fentanyl trafficker tied to the rash of juvenile overdoses in Carrollton and Flower Mound pleaded guilty today to a drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Magaly Mejia Cano, 29, was charged via criminal complaint in February. On Tuesday she pleaded guilty to a superseding information charging her with one count of distribution of a controlled substance (fentanyl) to a person under 21 years of age. “Just 2mg of fentanyl can cut a young life tragically short. Peddling fentanyl pills to teenagers is one of the most callous crimes a trafficker can commit,” said U.S. Attorney Leigha Simonton. “With Ms. Cano’s plea today, we are one step closer to getting justice for parents who lost their teens to fentanyl.” “Those who choose a path of darkness to distribute and pollute our communities with fentanyl, should always be looking over their shoulder because of the relentless efforts of DEA Dallas and our law enforcement partners,” said DEA Dallas Special Agent in Charge Eduardo A. Chávez. “Ms. Cano’s guilty plea is a clear result and warning to those that decide this same path.“ Ms. Cano is the first defendant to enter a guilty plea in the drug distribution scheme, which has been linked to at least 12 juvenile overdoses – three of them fatal – in Carrollton and Flower Mound since September 2022. Others charged in the conspiracy include: Jason Xavier Villanueva , Luis Eduardo Navarrete , Donovan Jude Andrews , Stephan Paul Brinson , Robert Alexander Gaitan , and Rafael Soliz, Jr. In plea papers, Ms. Cano admitted that co-defendant Luis Navarrete routinely dealt fentanyl-laced pills to juveniles from his Highland Drive residence. The round blue pills, imprinted with M/30, resembled prescription narcotics, but were in actuality clandestinely produced fakes. In plea papers, Ms. Cano said Mr. Navarrete stored the counterfeit pills near their front door of their Carrollton residence and distributed them to customers who came by the house – including a network of juvenile dealers who dealt to other minors. On at least three occasions, Ms. Cano admitted, she distributed pills directly to customers, including a 16-year-old, at Mr. Navarrete’s direction. Ms. Cano now faces up to 40 years in federal prison and a $2 million fine. Her co-defendants are presumed innocent until proven guilty in a court of law. The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School District and the Lewisville Independent School District. Assistant U.S. Attorneys Phelesa Guy and Rick Calvert are prosecuting the case. Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill .


title: Sioux City Man Pleads Guilty to Meth Possession with Intent to Distribute

component: USAO - Iowa, Northern

body_text: A man who possessed with intent to distribute methamphetamine pled guilty May 15, 2023, in federal court in Sioux City. Thomas Powell, 36, from Sioux City, Iowa, was convicted of possession with intent to distribute methamphetamine after having been previously convicted of a federal felony drug offense in 2010. At the plea hearing, Powell admitted that on November 13, 2022, while in Sac County, Iowa, he was found with over 90 grams of pure methamphetamine and that he planned to distribute some or all of it to other persons. Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Powell remains in custody of the United States Marshal pending sentencing. Powell faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least 10 years of supervised release following any imprisonment. The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Sac County Sheriff’s Office, Iowa DCI Laboratory, and Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-4002. Follow us on Twitter @USAO_NDIA.


title: Omaha Man to Prison for Illegal Possession of Firearm in Iowa

body_text: A man who illegally possessed a firearm was sentenced May 16, 2023, to 33 months in federal prison. Mark Hadland, 49, from Omaha, Nebraska, received the prison term after a February 7, 2023, guilty plea to prohibited person in possession of a firearm. Hadland was previously convicted of felony Theft by Unlawful Taking Over $1500, in the Douglas County District Court for Nebraska, on or about April 7, 2010. Evidence at the hearings showed that on August 8, 2022, Buena Vista County, Iowa, law enforcement conducted a traffic stop of the vehicle Hadland was driving. It was determined Hadland’s driver’s license was revoked, and he admitted a marijuana roach was in the vehicle. Pursuant to a search of Hadland’s vehicle, law enforcement seized marijuana, drug paraphernalia, a cane with a detachable top concealing a 14-inch knife, loose ammunition, and a stolen firearm with one round in the chamber. Hadland further admitted that he was a user of marijuana and methamphetamine. Hadland was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hadland was sentenced to 30 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Hadland is being held in the United States Marshal’s custody until he can be transported to a federal prison. 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 prosecuted by Assistant United States Attorney Patrick T. Greenwood and investigated by Buena Vista County Sheriff’s Office, Storm Lake Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-4093. Follow us on Twitter @USAO_NDIA.


title: Walthill Man Sentenced for Transfer of Obscene Material a Minor

body_text: United States Attorney Steven Russell announced that Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Michael Tyndall, Jr., 23, of Walthill, Nebraska, to 18 months’ incarceration for Transfer of Obscene Material to a Minor on May 15, 2023. There is no parole in the federal system. After his release, Tyndall will serve a two-year term of supervised release. In October 2022, Tyndall used Snapchat to send an obscene photograph of his penis to a 13-year-old minor. Tyndall messaged the minor victim questions about sexual history and preferences. The minor victim reported Tyndall’s conduct to a trusted adult, who notified law enforcement. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . This case was investigated by the Federal Bureau of Investigation.


title: Council Bluffs Man Sentenced for Drug and Firearm Offenses

component: USAO - Nebraska

body_text: United States Attorney Steven Russell announced that Dirk Johnson, 58, of Council Bluffs, Iowa, was sentenced today in federal court in Omaha, Nebraska, for his participation in a methamphetamine drug conspiracy that included possessing firearms in furtherance of the conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Johnson to 180 months’ imprisonment. There is no parole in the federal system. After his release from prison, Johnson will begin a five-year term of supervised release. On December 19, 2019, Sarpy County Sheriff’s investigators executed a search warrant on the home of Johnson and Linda Riaski. During the search, dozens of small baggies of methamphetamine were located. Johnson and Riaski were stopped while driving past the residence while the search was ongoing. In the vehicle, more baggies of methamphetamine and a handgun were found. In a second vehicle located on the property, more baggies of methamphetamine and another firearm were located. Johnson was involved in possessing with the intent to distribute over 500 grams of methamphetamine during the conspiracy that occurred from December 1, 2019, through December 19, 2019. Riaski was sentenced on February 16, 2023, to a term of imprisonment of 120 months for her role in the conspiracy and for possessing firearms. This case was investigated by the Sarpy County Sheriff’s Office.


title: Mexican Man Sentenced for Drug Trafficking

body_text: United States Attorney Steven Russell announced that Jose Adan Rodriguez-Meza, 39, of Mexico, was sentenced today in federal court in Omaha, Nebraska, for his participation in methamphetamine drug trafficking. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Rodriguez-Meza to 135 months’ imprisonment. There is no parole in the federal system. After his release from prison, Lorenzo-Cruz will begin a five-year term of supervised release. In February 2022, Rodriguez-Meza was identified by the Drug Enforcement Administration and the Omaha Police Department as a bulk distributor of methamphetamine. Using a confidential informant, investigators purchased a total of six pounds of methamphetamine on February 28, 2022, March 23, 2022, and April 8, 2022. On April 8, 2022, a search warrant was executed on Rodriguez-Meza’s residence and an additional four pounds of pure methamphetamine were seized. This case was investigated by the Drug Enforcement Administration and the Omaha Police Department.


title: Omaha Drug Dealer Sentenced for Methamphetamine Conspiracy and Firearms Crimes

body_text: United States Attorney Steven Russell announced that Steven Sainsbury, 47, of Omaha, Nebraska, was sentenced today in federal court in Omaha for his participation in a methamphetamine drug conspiracy and for possessing a firearm during a drug trafficking crime. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Sainsbury to 240 months’ imprisonment on the drug charge and a consecutive 60 months’ imprisonment on the firearm charge for a total sentence of 300 months in the Bureau of Prisons. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release. On March 31, 2021, an Omaha Police confidential source purchased more than 50 grams of methamphetamine from Sainsbury, an Omaha-based methamphetamine dealer. A search of his home resulted in the seizure of more than 300 grams of methamphetamine, 19 grams of heroin, 14 grams of cocaine, a Glock 10mm handgun, and $5,744 in United States currency. In an interview with police, Sainsbury provided police with the name of his supplier: co-defendant Jose Leyva-Martinez. With this information, officers searched Leyva-Martinez’s home, seizing nearly 4 kilograms of methamphetamine, 1 kilogram of cocaine, money transfer receipts, ammunition, 2 drug scales, vehicle titles for a gray Toyota Tacoma, a gray Honda civic, and a black GMC 1500, a money counter, drug ledger, jewelry, $468,990.00 in United States currency, and an Astra 9mm handgun. The handgun was found in a bedroom near $28,000 in United States currency. Leyva-Martinez admitted to being a methamphetamine supplier and distributor for the Sinaloa Cartel. He admitted that all three vehicles and the residence were put in his name at the direction of the Cartel. Law enforcement estimated that the seized currency represented cash proceeds from the sale of more than 100 pounds of methamphetamine. This was confirmed by Leyva-Martinez and Sainsbury, both of whom admitted to distributing between 1-3 pounds of methamphetamine, per day, over the course of the previous several months. Leyva-Martinez’s home, vehicles, monies, and other valuables were seized by law enforcement as proceeds of narcotics trafficking. For his part in the conspiracy, Leyva-Martinez was sentenced to 270 months in the Bureau of Prisons followed by a five-year term of supervised release. This case was investigated by the Omaha Police Department.