CORPUS CHRISTI, Texas - A 40-year-old Corpus Christi man has admitted he possessed child pornography, announced U.S. Ryan K. Patrick.

In March 2017, Queensland Police Services in Australia identified a computer discussing child pornography on an Internet website. That computer was later linked to Timothy Traut who was using a profile name of “Horndog.” Traut had posted pictures to that website and made comments about the desire to have sexual intercourse with a child pictured in some of those images.

Agents later executed a search warrant at his residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 850 images and approximately 104 videos child pornography. Many of those videos included images of sexually explicit conduct involving prepubescent girls.

Today, Traut admitted he reviewed and collected child pornography.

U.S. District Judge Nelva Gonzalez Ramos accepted the guilty plea today and set sentencing for May 2, 2018. At that time, Traut faces up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Traut also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.

Traut has been and will remain in custody pending his sentencing hearing.  

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.  

Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

HOUSTON – A 56-year-old Houston resident has been ordered to federal prison for scheming to fraudulently sell 50 million non-existent N95 facemasks to the Australian government, announced U.S. Attorney Jennifer B. Lowery.

Arael Doolittle pleaded guilty July 27, 2021.

Today, U.S. District Judge Lynn N. Hughes ordered him to serve a 54-month sentence. At the hearing, the court heard additional evidence that Doolittle had stolen another person’s identity and forged their signature during the commission of the offense. In handing down the sentence, Judge Hughes noted even though there was no actual financial loss in this case, there are still costs associated with cases like this that victims of frauds suffer.

In early April 2020, Doolittle attempted to sell 50 million 3M N95 respirator masks to the government of Australia. However, he actually did not possess them.  

The Australian government was supposed to pay over $317 million for the masks, but authorities disrupted the transaction before it was completed.

Doolittle was also charged and convicted in a separate case for conspiracy to commit wire fraud. In that scheme, he solicited victims to invest in a petroleum trading company. However, Doolittle did not invest their money as promised. He actually used the funds to finance unrelated business and personal expenses. Doolittle defrauded the victims of this petroleum trading scheme out of a total of $1,935,613.95. He was previously ordered to serve a 54-month sentence.

The two sentences are ordered to be served consecutively, resulting in a total of 108 months in prison.

Doolittle has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The Secret Service conducted the investigation of the fraudulent N95 masks. Assistant U.S. Attorney Justin R. Martin prosecuted the case. The FBI investigated the petroleum investment scheme.

On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic - https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form

CORPUS CHRISTI, Texas - A 41-year-old Corpus Christi man has been sent to federal prison following his conviction of possessing child pornography, announced U.S. Ryan K. Patrick. Timothy Traut pleaded guilty Feb, 1, 2018.

Today, U.S. District Judge Nelva Gonzalez Ramos sentenced Traut to 120 months in prison. At the hearing, the court heard that Traut possessed images of children he knew and that he superimposed the children’s faces to images of child pornography. The court also read two letters from the parents of those children explaining how the crime impacted their lives.

Traut was further ordered to serve 15 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender.

In March 2017, Queensland Police Services in Australia identified a computer discussing child pornography on an internet website. That computer was later linked to Traut who was using a profile name of “Horndog.” Traut had posted pictures to that website and made comments about the desire to have sexual intercourse with a child pictured in some of those images.

Agents later executed a search warrant at his residence, at which time they seized various electronic devices. Forensic analysis on those devices revealed more than 850 images and approximately 104 videos child pornography. Many of those videos included images of sexually explicit conduct involving prepubescent girls.

Traut has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department’s Internet Crimes Against Children Task Force.

Assistant U.S. Attorney Hugo R. Martinez is prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

HOUSTON – A 40-year-old associate of the Jalisco New Generation Cartel (CJNG) has pleaded guilty to drug trafficking and money laundering offenses, announced U.S. Attorney Alamdar H. Hamdani.

Mexican national Victor Miguel Curiel Valadez admitted to conspiring to launder monetary instruments, possession with intent to distribute meth and that he was an associate of the CJNG.

Members and associates of the CJNG hired Valadez to retrieve drug proceeds in the United States, Canada, Europe and Australia and move them back to Mexico.

From 2016 to 2019, Valadez recruited others in Chicago, Illinois; Atlanta, Georgia; Detroit, Michigan; Kansas City, Missouri, and other cities across the United States to pick up drug proceeds in the United States. Those individuals were in possession of drug proceeds that needed to be moved to Mexico. Valadez then coordinated the transfer of proceeds back to Mexico through financial institutions.

Valadez and co-conspirators laundered more than $1.5 million in drug proceeds during the course of the conspiracy.

He also admitted in February 2018 that he negotiated and coordinated the distribution of three kilograms of meth. He proceeded to direct a co-conspirator to deliver the meth to an individual in Houston.



“The CJNG is one of the most powerful and dangerous criminal organizations in Mexico, characterized by a business model of extreme violence and trafficking in the most deadly of substances - cocaine, heroin, meth and fentanyl - relying on money launderers and drug distributors, like Valadez, to wash its ill-gotten gains and infect local communities with drugs,” said Hamdani. “This prosecution should serve as a warning to the Mexican cartels of my office’s focus on dismantling and disrupting their operations, while holding to account anyone who seeks to help launder monies and deliver dangerous drugs that destroy our neighborhoods and communities.”  



U.S. District Judge Keith P. Ellison has set sentencing for Nov. 20. At that time, Valadez faces up to life in federal prison and a possible $1o million maximum fine for the drug conviction. He also faces up to 20 years and a $500,000 maximum fine or twice the value of the property involved in the transaction, whichever is greater, for the money laundering conspiracy.  

Homeland Security Investigations conducted investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative with the assistance of the Drug Enforcement Administration and IRS Criminal Investigation. These such cooperative matters provide for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs and transnational criminal organizations. The specific mission of the Houston Strike Force is to disrupt and dismantle the drug trafficking organizations that are designated as Consolidated Priority Organization or Regional Priority Organization Targets and that impact Houston and south Texas. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.

Assistant U.S. Attorneys Anibal J. Alaniz and Casey N. MacDonald are prosecuting the case.

HOUSTON – Asher Abid Khan, 23, of Spring, pleaded guilty today to providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

 

Acting U.S. Attorney Abe Martinez, Acting Assistant Attorney General for National Security Dana J. Boente and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement. 

 

“We aggressively investigate and prosecute persons who provide material support to terrorist organization like ISIS,” said Martinez.  “Khan provided ISIS a battlefield soldier to further the terrorist organization’s violent agenda. Khan’s guilty plea is indicative of the priority this office has placed on those who would give aid and comfort to terrorists operating in the United States and abroad. ”  

 

The investigation began in 2014 when Khan and his friend, who was living in South Texas, devised a plan to travel to Turkey and then to Syria for the purpose of fighting on behalf of ISIS. Khan had been living with a relative in Australia. Prior to leaving for Turkey from there, Khan told Mohamed Zuhbi, a Turkish-based foreign terrorist fighter facilitator, that he wanted to join ISIS.

 

Khan provided instructions to his friend on travel and how to reach him once Khan arrived in Turkey. During this part of the planning phase, it was Khan - not his friend - who was in touch with Zuhbi. On Feb. 24, 2014, Khan and his friend met in Istanbul, Turkey. At that time, Khan gave his South Texas friend money, knowing he intended to travel to Syria and join and fight with ISIS.

 

Khan then departed from the Istanbul Airport in Turkey and returned to the United States after his family tricked him into coming home to Houston because of an alleged hospitalization of his mother.

 

As soon as Khan returned to the U.S., he contacted Zuhbi with the purpose of introducing him to his friend so he could enter Syria and join ISIS as a fighter with Zuhbi’s help. Khan then provided to his friend a Turkish cell phone number for reaching Zuhbi. The following day, Khan’s friend sent an electronic message to Khan indicating he had “been delivered :),” by Zuhbi, but that he was not with ISIS yet. Over the next few months, the friend attended fighter training camps and stayed in touch with Zuhbi and Khan. During that time, Khan offered his friend money and instructed him to try to get to ISIS.

 

On Aug. 11, 2014, the friend finally made it to ISIS with Khan and Zuhbi’s assistance. After September 2014, he had ceased all forms of communications. On Dec. 25, 2014, the friend’s mother received an electronic message explaining that her son had died while fighting.

 

Zuhbi is still at large and is believed to be residing in either Turkey or Syria. There are pending criminal charges in the Southern District of Texas against Zubhi. Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.

 

U.S. District Judge Lynn N. Hughes accepted the guilty plea today and has sentencing for March 5, 2018, at 1:30pm. At that time, Khan faces up to 15 years in federal prison and a maximum fine of $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

 

The FBI’s Joint Terrorism Task Force conducted the investigations. Assistant U.S. Attorneys Carolyn Ferko, Alamdar Hamdani and Steve Mellin of the Southern District of Texas are prosecuting the case along with the Counterterrorism Section of the Justice Department’s National Security Division.

HOUSTON - An Indian national was sentenced to 20 years in prison for his role in operating and funding India-based call centers that defrauded U.S. victims out of millions of dollars between 2013 and 2016.

U.S. District Judge David Hittner sentenced Hitesh Madhubhai Patel aka Hitesh Hinglaj, 44, of Ahmedabad, India, for wire fraud conspiracy and general conspiracy to commit identification fraud, access device fraud, money laundering and impersonation of a federal officer or employee. Patel was also ordered to pay restitution of $8,970,396 to identified victims of his crimes.

“The long arm of federal law enforcement was key to bringing this con artist to justice,” said U.S. Attorney Ryan K. Patrick of the Southern District of Texas.  “Transnational call center scams are complex cases to investigate and prosecute but our agencies are up to the task.  Many of these fraudsters prey on the most vulnerable from the perceived safety of foreign lands so there is no sorry in seeing him head to prison.  His access to a phone is now greatly diminished. Across the globe, U.S. law enforcement is chasing and dismantling these schemes.”

“The defendant defrauded vulnerable U.S. victims out of tens of millions of dollars by spearheading a conspiracy whose members boldly impersonated federal government officials and preyed on victims’ fears of adverse government action,” said Acting Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Today’s sentence demonstrates the department’s commitment to prosecuting high-level perpetrators of such nefarious schemes. Even fraudsters operating scams from beyond our borders are not beyond the reach of the U.S. judicial system.”

According to admissions in his plea agreement, Patel and his co-conspirators perpetrated a complex scheme in which employees from call centers in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS) and engaged in other telephone call scams designed to defraud victims throughout the United States. U.S. victims were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Those who fell victim were instructed how to provide payment, including by purchasing general purpose reloadable (GPR) cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently obtained funds.

In his plea, Patel admitted to operating and funding several India-based call centers from which the fraud schemes were perpetrated, including the call center HGLOBAL. Patel corresponded by email and WhatsApp messaging frequently with his co-defendants to exchange credit card numbers, telephone scam scripts and call center operations instructions. The scripts included IRS impersonation, USCIS impersonation, Canada Revenue Agency impersonation, Australian Tax Office impersonation, payday loan fraud, U.S. Government grant fraud and debt collection fraud.

A co-defendant described Patel as “the top person in India and the boss for whom most of the other defendants worked,” and the owner of multiple call centers. Another stated Patel was arrested in India in 2016, but then paid a bribe and was released. Additionally, Patel admitted that a reasonably foreseeable loss of more than $25 million but less than $65 million was attributable to him, based on the government’s evidence against him. 

Patel was prosecuted in the United States after being extradited from Singapore in April 2019 to face charges in this large-scale telefraud and money laundering scheme. Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant in September 2018 after Patel flew there from India.

“For years, this individual preyed on the fears of his victims to perpetuate a global scheme to manipulate U.S. institutions and taxpayers,” said Special Agent in Charge Mark B. Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “Working with our law enforcement partners around the globe we have successfully executed the first ever large-scale, multi-jurisdictional investigation and prosecution targeting the India call center scam industry to hold him accountable for his illegal acts and deter similar scams in the future.”

“Since 2013, American taxpayers have been subjected to unprecedented attempts to fraudulently obtain money by individuals utilizing Indian call centers to impersonate IRS employees and scam American taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “We appreciate the support of our law enforcement partners.”

“The sentence imposed today provides a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society through these types of scams,” said Special Agent in Charge David Green of the Department of Homeland Security Office of Inspector General (DHS-OIG).  “These foreign call center operators and their U.S. based affiliates should know that their actions carry real life consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will work tirelessly to identify them, find them and hold them accountable for their crimes.”

The indictment in this case, which was unsealed in October 2016, charged Patel and 60 other individuals and entities with general conspiracy, wire fraud conspiracy and money laundering conspiracy. A total of 24 domestic defendants associated with this transnational criminal scheme were previously convicted and sentenced to terms of imprisonment of up to 20 years in the Southern District of Texas, District of Arizona and Northern District of Georgia. The defendants were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were ordered to be removed based on their illegal immigration status, with another defendant having his U.S. citizenship revoked due to a separate conviction for immigration fraud. Charges remain pending for other India-based defendants. They are presumed innocent unless and until convicted through due process of law. 

HSI, DHS-OIG and TIGTA led the investigation of this case. The Justice Department’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.

Also providing significant support during the course of the investigation and prosecutions related to this scheme were the Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; Secret Service; Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; State Department’s Diplomatic Security Service; and the U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central and Northern Districts of California, District of Colorado, Northern and Middle Districts of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada and the District of New Jersey.  The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys, Legal and Victim Programs provided significant support to the prosecution.

Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas prosecuted the case along with Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), former Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section. Kaitlin Gonzalez of HRSP was the paralegal for this case.     

A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years

HOUSTON – A 56-year-old Houston resident has pleaded guilty to a scheme to fraudulently sell 50 million non-existent N95 facemasks to the Australian government, announced Acting U.S. Attorney Jennifer B. Lowery.

In early April 2020, Arael Doolittle attempted to sell 50 million 3M N95 respirator masks to the government of Australia. However, he actually did not possess them.  

The Australian government was supposed to pay over $317 million for the masks, but authorities disrupted the transaction before it was completed.

U.S. District Judge Lynn N. Hughes accepted the plea and set sentencing for Oct. 25. At that time, Doolittle faces up tofive5 years in federal prison and a possible $250,000 maximum fine. He has been and will remain in custody pending that hearing.

The Secret Service conducted the investigation. Assistant U.S. Attorney Justin R. Martin prosecuted the case.

On May 17, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic - https://www.justice.gov/coronavirus.

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

HOUSTON – The 27-year-old Spring man convicted of providing material support to a designated foreign terrorist organization has been ordered to prison for 12 years following reversal of original sentence, announced Acting U.S. Attorney Jennifer B. Lowery.   

Asher Abid Khan pleaded guilty Dec. 4, 2017, to providing material support to the Islamic State of Iraq and the Levant (ISIL) aka ISIS (the Islamic State of Iraq and al-Sham).

On June 25, 2018, U.S. District Judge Lynn H. Hughes downwardly departed from the U.S. Sentencing Guidelines and ordered Khan to serve a total of 18 months in prison. Following an appeal, the court resentenced him Dec. 23, 2019, again to serve the 18-month term of imprisonment. The government then again appealed to the U.S. Court of Appeals for the 5th Circuit, arguing the sentence was not reasonable for the severity of the offense committed.

That court granted to government’s appeal and ordered the judgment reversed and vacated, and the matter reassigned.

Today, U.S. District Judge Charles R. Eskridge sentenced Khan to 144 months in federal prison to be immediately followed by 15 years of supervised release. At the hearing, the court noted the strong condemnation by Congress regarding this conduct and that a young man died.

“Attempting to travel to wage violent jihad on behalf of ISIS is a serious act which deserves vigorous prosecution,” said Lowery. “The sentence imposed today accurately reflects the gravity of the crime for which Khan was convicted. We, along with the FBI’s Joint Terrorism Task Force, National Security Division and other partners, will continue to work to disrupt those trying to support foreign terrorist organizations here or abroad.”

“This outcome marks the culmination of a lengthy counterterrorism investigation highlighting FBI Houston’s steadfast dedication to our mission to fight all forms of terrorism,” said Acting Special Agent in Charge Richard A. Collodi of the FBI. “Khan pleaded guilty to material support of terrorism for recruiting and facilitating the travel of others to fight and die for ISIS overseas. Today’s sentence provides justice for Khan’s actions.” 

The investigation began in 2014 when Khan and his friend, who was living in South Texas, devised a plan to travel to Turkey and then to Syria for the purpose of fighting on behalf of ISIS. Khan had been living with a relative in Australia. Prior to leaving for Turkey from there, Khan told Mohamed Zuhbi, a Turkish-based foreign terrorist fighter facilitator, that he wanted to join ISIS.

Khan provided instructions to his friend on travel and how to reach him once Khan arrived in Turkey. During this part of the planning phase, it was Khan - not his friend - who was in touch with Zuhbi. On Feb. 24, 2014, Khan and his friend met in Istanbul, Turkey. At that time, Khan gave his South Texas friend money, knowing he intended to travel to Syria and join and fight with ISIS.

Khan then departed from the Istanbul Airport in Turkey and returned to the United States after his family tricked him into coming home to Houston because of an alleged hospitalization of his mother.

As soon as Khan returned to the United States, he contacted Zuhbi with the purpose of introducing him to his friend so he could enter Syria and join ISIS as a fighter with Zuhbi’s help. Khan then provided to his friend a Turkish cell phone number for reaching Zuhbi. The following day, Khan’s friend sent an electronic message to Khan indicating he had “been delivered :),” by Zuhbi, but that he was not with ISIS yet. Over the next few months, the friend attended fighter training camps and stayed in touch with Zuhbi and Khan. During that time, Khan offered his friend money and instructed him to try to get to ISIS

On Aug. 11, 2014, the friend finally made it to ISIS with Khan and Zuhbi’s assistance. After September 2014, he had ceased all forms of communications. On Dec. 25, 2014, the friend’s mother received an electronic message explaining that her son had died while fighting.

Australian authorities are prosecuting Zuhbi where he is currently being detained.  

Khan has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

The FBI’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorneys (AUSA) Carolyn Ferko and Alamdar Hamdani prosecuted the case with assistance of Trial Attorney Rebecca Magnone of NSD’s Counterterrorism Section. NSD Appellate Attorney Danielle Tarin and AUSA Anna Kalluri handled the appeal.

HOUSTON – A total of 11 men from the countries of Tanzania, Pakistan and Iran have been ordered to federal prison for their part in trafficking multiple kilograms of heroin to the United States from abroad, announced U.S. Attorney Ryan K. Patrick.

Ali Khatib Haji Hassan, 49, Makame Haji Mwinyi, 49, Ernest Michael Mbwile, 35, Abdulahtif Juma Maalim, 43, Ibrahim Omary Madega, 52, Tiko Emanuel Adam, 41, Iddy Saleme Mfullu, 46, Mohammed Said Mohammed, 48, Daud Michael Vedasto, 58, all from Tanzania, previously pleaded guilty as did Salim Omar Balouch, 36, from Iran, and Abdul Basit Jahangir, 40, from Karachi, Pakistan.

On Aug. 7, 2019, U.S. District Judge Sim Lake completed two days of hearings and ordered them all to federal prison.

Jahangir received a 151-month term of imprisonment. Mfullu and Mohammed both received terms of 50 months, while Hassan, Mwinyi, Mbwile, Maalim, Madega, Adam and Vedasto, were ordered to serve 99, 62, 52, 46, 87, 37 and 46 months, respectively. The court imposed a 135-month sentence for Balouch. Not U.S. citizens, they are all expected to face deportation proceedings following their sentences.

This case began with the arrest of an internal body carrier at Houston’s Bush Intercontinental Airport June 3, 2012. That defendant had swallowed 1.5 kilograms of heroin packaged in 100 pellets.

The investigation eventually led to the charging of 15 defendants, including two Consolidated Priority Organization Targets, one U.S. Treasury Department designated “King Pin” and seizures of approximately 1,600 kilograms of heroin. 

This investigation not only touched the United States, but also Canada, Afghanistan, Pakistan, Iran, South Africa, Tanzania, The Republic of Seychelles, Hong Kong, Australia, Oman, United Kingdom (UK), Italy, Brazil, United Arab Emirates, South Korea, Mozambique, The Netherlands and Saudi Arabia. 

Thirteen have pleaded guilty. Two remain fugitives.

Immigration and Customs Enforcement’s Homeland Security Investigations  (HSI) conducted the Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Diver Down with assistance from other HSI offices domestic and foreign, Drug Enforcement Administration, South African Police Service, Dubai Police Department, Royal Oman Police, UK National Crime Agency, Royal Canadian Mounted Police and Australian Federal Police.

Assistant U.S. Attorney Richard Magness is prosecuting the case.

HOUSTON - An Indian national has entered a guilty plea for his role in operating and funding India-based call centers which defrauded thousands of victims out of millions of dollars between 2013 and 2016. 

Hitesh Madhubhai Patel aka Hitesh Hinglaj, 43, of Ahmedabad, India, pleaded guilty to conspiracy to commit wire fraud as well as a general conspiracy to commit identification fraud, access device fraud, money laundering and to impersonate a federal officer or employee.

“Hitesh Patel played a prominent role in this massive, India-based fraud scheme that bilked vulnerable Americans out of millions of dollars,” said Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division. “This important resolution would not have occurred without the assistance of our Singaporean colleagues, to whom we extend our deep appreciation.”

Patel and his conspirators perpetrated a complex scheme in which employees from call centers in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS). They also engaged in other telephone call scams designed to defraud victims throughout the United States.  U.S. victims were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Those who fell victim to the scammers were instructed how to provide payment, including by purchasing general purpose reloadable (GPR) cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the United States to liquidate and launder the fraudulently-obtained funds.

In his plea, Patel admitted to operating and funding several India-based call centers from which the fraud schemes were perpetrated, including organizational co-defendant call center HGLOBAL. Patel frequently corresponded by email and WhatsApp messaging with co-defendants to exchange credit card numbers, telephone scam scripts, deposit slips, payment information, call center operations information, instructions and bank account information. The scripts included impersonation of IRS, USCIS, Canada Revenue Agency and Australian Tax Office personnel as well as payday loan, U.S. government grant and debt collection fraud schemes.

Patel also received monthly income and expense reports to his personal email from the call centers and used his Indian cell phone number to access GPR cards through automated telephone systems on many occasions.

A co-defendant described Patel as “the top person in India and the boss for whom most of the other defendants worked.” Another co-defendant claimed Patel was arrested in India in 2016, but paid a bribe and was released. Additionally, Patel admitted he was accountable for approximately $25-65 million.    

Patel was extradited from Singapore in April 2019 to face charges in this large-scale telefraud and money laundering scheme.  Singapore authorities apprehended Patel at the request of the United States pursuant to a provisional arrest warrant in September 2018 after Patel flew there from India.  

U.S. District Judge David Hittner accepted the plea today and set sentencing for April 3. At that time, Patel faces up to 20 years in prison for the wire fraud conspiracy and five years for the general conspiracy. Both counts also carry the possibility of a fine of up $250,000 or twice the gross gain or loss from the offense.

A total of 24 domestic defendants associated with this transnational criminal scheme have already been convicted and sentenced to up to 20 years in prison in the Southern District of Texas, District of Arizona and Northern District of Georgia. They were also ordered to pay millions of dollars in victim restitution and money judgments and to forfeit seized assets. Some defendants were removed from the country based on their illegal immigration status, while another defendant had his U.S. citizenship revoked due to a separate conviction for immigration fraud. Charges remain pending for other India-based defendants. They are presumed innocent unless and until convicted through due process of law.

Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Department of Homeland Security – Office of Inspector General and  Treasury Inspector General for Tax Administration conducted the investigation. The Department of Justice’s Office of International Affairs and HSI Singapore provided significant support in securing and coordinating Patel’s arrest and extradition, working in concert with their counterparts at the Singapore Attorney General’s-Chambers and the Singapore Police Force.

Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of are prosecuting the case along with Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section and  Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section.

In San Antonio, 32-year-old Trorice Crawford of San Diego, California, admitted his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans, announced U.S. Attorney John F. Bash, Deputy Assistant Attorney General David Morrell, and Director Gustav Eyler of the Department of Justice’s Consumer Protection Branch.

Appearing before U.S. Magistrate Judge Richard Farrer yesterday afternoon, Crawford pleaded guilty to one count of conspiracy to launder monetary instruments.  By pleading guilty, Crawford admitted that from May 2017 to July 2019, he conspired with Robert Wayne Boling, Jr. (a U.S. citizen), and others to steal money belonging to U.S. Servicemembers and veterans.  By pleading guilty, Crawford admitted to recruiting at least 30 individuals (aka “money mules”) who provided their bank account information to receive funds stolen from military affiliated individuals.  On average, each unauthorized transfer from a victim’s accounts ranged from between $8,000 to $13,000.  Crawford kept a percentage of the withdrawn funds for himself and oversaw the transmission of the remaining amounts by means of international money remittance services to Boling and others in the Philippines.

Crawford faces up to 20 years in federal prison.  He remains in federal custody awaiting sentencing scheduled for 10:30am on March 5, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio. 

In October, co-defendant Frederick Brown, age 38 of Las Vegas, NV, pleaded guilty to federal charges in connection with this scheme.  Brown, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted that while logged into the Armed Forces Health Longitudinal Technology Application, he illegally captured on his cell phone personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information.  Brown further admitted that he subsequently provided that stolen data to Boling so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars. 

As asserted in the federal grand jury indictment, Boling, together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information.  Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.

The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims. Announcements also will follow regarding steps taken to secure military members’ information and benefits from theft and fraud.

Boling, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft.  Boling, Kerr and Seok are in custody in the Philippines awaiting transfer to the Western District of Texas.  Brown remains in federal custody awaiting sentencing scheduled for 10:30am on February 6, 2020, before Chief U.S. District Judge Orlando Garcia in San Antonio. 

It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March, the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep.  The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.  

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice; information on the Servicemember and Veterans Initiative is at https://www.justice.gov/servicemembers.

In San Antonio, a federal judge sentenced 33-year-old Trorice Crawford of San Diego, California, to 46 months in federal prison for his role in an identity-theft and fraud scheme that victimized thousands of U.S. servicemembers and veterans, announced U.S. Attorney John F. Bash and Director Gustav Eyler of the Department of Justice’s Consumer Protection Branch.

In addition to the prison term, Chief U.S. District Judge Orlando Garcia ordered that Crawford pay $103,700 in restitution and be placed on supervised release for a period of three years after completing his prison term.

“The Department of Justice will not tolerate fraud on America’s warfighters and veterans,” said Acting Assistant Attorney General Ethan P. Davis of the Department’s Civil Division.   “Working with our partners and using all tools available, we are committed to protecting those who protect us.”

On December 5, 2019, Crawford pleaded guilty to one count of conspiracy to launder monetary instruments.  By pleading guilty, Crawford admitted that from May 2017 to July 2019, he conspired with Robert Wayne Boling, Jr. (a U.S. citizen), and others to steal money belonging to U.S. Servicemembers and veterans.  By pleading guilty, Crawford admitted to recruiting at least 30 individuals (aka “money mules”) who provided their bank account information to receive funds stolen from military affiliated individuals.  On average, each unauthorized transfer from a victim’s accounts ranged from between $8,000 to $13,000.  Crawford kept a percentage of the withdrawn funds for himself and oversaw the transmission of the remaining amounts by means of international money remittance services to Boling and others in the Philippines.

In October, co-defendant Frederick Brown, age 38 of Las Vegas, NV, pleaded guilty to federal charges in connection with this scheme.  Brown, a former civilian medical records administrator for the U.S. Army at the 65th Medical Brigade, Yongsan Garrison, South Korea, admitted that while logged into the Armed Forces Health Longitudinal Technology Application, he illegally captured on his cell phone personal identifying information (PII) of thousands of military members, including names, social security numbers, DOD ID numbers, dates of birth, and contact information.  Brown further admitted that he subsequently provided that stolen data to Boling so that Boling and others could exploit the information in various ways to access Department of Defense and Veterans Affairs benefits sites and steal millions of dollars. 

As asserted in the federal grand jury indictment, Boling, together with his Philippines-based co-defendants Allan Albert Kerr (Australian citizen) and Jongmin Seok (South Korean citizen), specifically used the stolen information to compromise a Department of Defense portal designed to enable military members to access benefits information online. Once through the portal, the defendants are alleged to have accessed benefits information.  Access to these detailed records enabled the defendants to steal or attempt to steal millions of dollars from military members’ bank accounts. The defendants also stole veterans’ benefits payments. Evidence of the defendants’ scheme was detected earlier this year, advancing the investigation that led to the indictment.

The Departments of Defense and Veterans Affairs are coordinating with the Department of Justice to notify and provide resources to the thousands of identified victims.

Boling, Kerr and Seok are charged with multiple counts of conspiracy, wire fraud, and aggravated identity theft.  Boling, Kerr and Seok remain in the Philippines.  Measures are being taken to effect their transfer to the Western District of Texas.  Brown remains in federal custody awaiting sentencing scheduled for 10:30am on September 17, 2020, before Judge Garcia in San Antonio. 

It is important to note that an indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The United States is represented by Trial Attorneys Ehren Reynolds and Yolanda McCray Jones of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Blackwell of the U.S. Attorney’s Office for the Western District of Texas. The matter was investigated by agents of the Defense Criminal Investigative Service, and counsel Matthew Freund, along with substantial investigative support from the U.S. Postal Inspection Service, the U.S. Army Criminal Investigation Command, and the Veterans Benefits Administration’s Benefits Protection and Remediation Division. The U.S. Department of State’s Diplomatic Security Service, Philippine law enforcement partners, and the U.S. Attorneys’ Offices for the District of Nevada, the Southern District of California, and the Eastern District of Virginia also provided assistance. Resources from the Department of Justice’s Servicemembers and Veterans Initiative and its Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, in March 2020, the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep.  The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.  

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Western District of Texas, visit its website at https://www.justice.gov/usao-wdtx. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice; information on the Servicemember and Veterans Initiative is at https://www.justice.gov/servicemembers.

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The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

In Waco, a federal judge sentenced 43–year-old James Stevens to 200 months in federal prison for possession of child pornography, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden, San Antonio Division.   

During sentencing on June 10, 2020, U.S. District Judge Alan Albright also ordered that Stevens pay $5,000 in restitution and be placed on supervised release for a period of ten years after completing his prison term.

“I am thankful that we were able to put another predator behind bars. The sexual exploitation of children is one of the most critical problems facing our country, and it doesn’t get remotely enough attention,” stated U.S. Attorney Bash.

On February 11, 2020, Stevens pleaded guilty to one count of possession of child pornography.  According to court records, information concerning child sexual exploitation material provided by the National Center for Missing and Exploited Children (NCMEC) and the South Australian Police led HSI investigators to the defendant.  In June 2019, authorities executed a search warrant at the defendant’s residence in Temple and seized his cellular telephone. Stevens was arrested based on outstanding state warrants, but later bonded out of jail.

During a subsequent forensics review of the defendant’s cell phone, authorities discovered numerous images of child pornography as well as images of the defendant pant-less, lying down on a bed next to a minor victim.  Information obtained from the images led investigators to a residence in Rockdale, TX, where the minor victim lived with his biological father.  Inside the residence, investigators saw the defendant lying on a bed with the minor victim sitting next to him.  During an interview, the biological father stated that the four-year-old victim is non-verbal, suffered from a cognitive disability and lacked specific skills that would be normally associated with a child of that age.  The biological father also admitted that he and the defendant were in a relationship and that they used methamphetamine which was found in the residence.  State authorities arrested both men for the methamphetamine and notified Child Protective Services.

During this investigation, agents discovered approximately 121 images and 24 videos of child pornography on the defendant’s cell phone, computer and online accounts. 

“The significant sentence imposed on James Stevens sends a clear message that there are serious consequences for those who exploit children.  Stevens will serve almost 17 years in federal prison for his incomprehensible acts,” stated HSI Special Agent in Charge Folden. “HSI remains committed to working with our law enforcement partners to aggressively pursue those who victimize the most vulnerable members of our society, our children.”

HSI investigated this case with assistance from the Bell County Sheriff’s Office and the Milam County Sheriff’s Office.  Assistant U.S. Attorney Greg Gloff prosecuted this case on behalf of the government.

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

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The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Julian P. Assange, 52, the founder of WikiLeaks, pleaded guilty today to conspiring with Chelsea Manning, at that time a U.S. Army intelligence analyst, to unlawfully obtain and disclose classified documents relating to the national defense. After obtaining classified national defense information from Manning, and aware of the harm that dissemination of such national defense information would cause, Assange disclosed this information on WikiLeaks.

The guilty plea concludes a criminal matter that dates back to March 2018, when Assange was first indicted in the Eastern District of Virginia. There, and in superseding indictments, Assange was charged with conspiring with Manning, then a “Top Secret” U.S. security clearance holder, to further Manning’s unlawful acquisition and transmission of bulk classified information, including Manning’s use of a government computer to illegally download hundreds of thousands of classified documents and transmit them without authorization to WikiLeaks.

Assange was detained in the United Kingdom based on the U.S. charges for the last 62 months, while he contested extradition. As part of the plea agreement, Assange was transported to the U.S. District Court for the Northern Mariana Islands to enter his felony guilty plea and be sentenced on the morning of June 26 (Saipan local time) in a U.S. courtroom, with the venue reflecting Assange’s opposition to traveling to the continental United States to enter his guilty plea and the proximity of this federal U.S. District Court to Assange’s country of citizenship, Australia, to which he will return. At today’s proceeding, Assange admitted to his role in the conspiracy to violate the Espionage Act and received a court-imposed 62-month time-served sentence, reflecting the time he served in U.K. prison as a result of the U.S. charges. Following the imposition of sentence, he will depart the United States for his native Australia. Pursuant to the plea agreement, Assange is prohibited from returning to the United States without permission.

Beginning in late 2009, Assange and WikiLeaks actively solicited United States classified information, including by publishing a list of “Most Wanted Leaks” that sought, among other things, bulk classified documents. As set forth in the public charging documents, Assange actively solicited and recruited people who had access, authorized or otherwise, to classified information and were willing to provide that information to him and WikiLeaks—and also solicited hackers who could obtain unauthorized access to classified information through computer network intrusions. Assange publicly encouraged his prospective recruits to obtain the information he desired by any means necessary, including hacking and theft, and to send that information to Assange at WikiLeaks.

Between January 2010 and May 2010, in the course of the conspiracy with Assange, Manning used U.S. government computer systems to download hundreds of thousands of documents and reports, many of them classified at the SECRET level and relating to the national defense, which signified that unauthorized disclosure could cause serious damage to United States national security. In total, Manning downloaded four nearly complete U.S. government databases that contained, among other things, approximately 90,000 Afghanistan war-related significant activity reports, 400,000 Iraq war-related significant activity reports, 800 Joint Task Force Guantanamo (JTF GTMO) detainee assessment briefs, and 250,000 U.S. Department of State cables. Manning also downloaded files regarding rules of engagement in the Iraq war, most of which were classified at the SECRET level and which delineated the circumstances and limitations under which United States forces would initiate or conduct combat engagement with other forces. 

After downloading digital reams of classified documents and files, Manning electronically sent them to Assange to be publicly posted on WikiLeaks’s website. During Manning’s bulk exfiltration and passage of classified materials to WikiLeaks, Manning and Assange communicated regularly via online platforms about Manning’s progress and what classified information Assange wanted. For example, after sending the classified JTF GTMO detainee assessment briefs to Assange, Manning told Assange “thats [sic] all I really have got left.” To encourage Manning to continue to take classified documents from the United States and provide them to Assange and WikiLeaks without authorization, Assange replied, “curious eyes never run dry in my experience.”    

In or about 2010 and 2011, Assange publicly disclosed via the WikiLeaks website hundreds of thousands of documents that Manning had taken without authorization and given to him, including approximately 75,000 Afghanistan war-related significant activity reports, classified up to the Secret level; 400,000 Iraq war-related significant activity reports, classified up to the Secret level; 800 JTF GTMO detainee assessment briefs, classified up to the Secret level; and over 100,000 State Department cables, some of which were classified up to the Secret level.

Unlike news organizations that published redacted versions of some of the classified documents that Assange obtained from Manning and then shared with those organizations, Assange and WikiLeaks disclosed many of the raw classified documents without removing any personally identifying information. Specifically, in many instances, the classified documents Manning unlawfully provided to Assange were later released publicly by Assange and WikiLeaks in a raw or unredacted form that placed individuals who had assisted the U.S. government at great personal risk. Assange’s decision to reveal the names of human sources illegally shared with him by Manning created a grave and imminent risk to human life. For example, the State Department cables that WikiLeaks disseminated included information from journalists, religious leaders, human rights advocates, and political dissidents who had chosen to provide information to the United States in confidence at significant risk to their own safety. By publicly releasing these documents without redacting the names of human sources or other identifying information, Assange subjected these individuals to serious harm and arbitrary detention. Assange even acknowledged in public statements that he knew that publicly disclosing unredacted classified documents containing the names and other identifying information of people who had shared information with the U.S. government in confidence could put those people at risk of harm. 

The FBI Washington Field Office investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in securing Assange’s arrest and in litigating Assange’s extradition. The United Kingdom’s Crown Prosecution Service, National Extradition Unit (and its predecessor in the Metropolitan Police Service), and Central Authority also provided significant assistance to the extradition proceedings over the past five years. Logistical support was also provided by the United Kingdom’s National Crime Agency’s Joint International Crime Centre, U.K. law enforcement agencies, and U.S. Department of Homeland Security, Homeland Security Investigations, and U.S. Customs and Border Protection.

The National Security Division’s Counterintelligence and Export Control Section (CES), U.S. Attorney’s Office for the District of Guam and the Northern Mariana Islands (NMI), and U.S. Attorney’s Office for the Eastern District of Virginia handled the case. U.S. Attorney Shawn N. Anderson for the District of Guam and NMI, CES Deputy Chief Matthew McKenzie, and National Security Cyber Section Trial Attorney Jacques Singer-Emery represented the United States in the NMI proceedings. CES Trial Attorneys Nicholas Hunter and Adam Small, and Trial Attorney Rachel Yasser and Legal Advisor/International Affairs Coordinator Amanda June Chadwick of the Justice Department’s Office of International Affairs also provided substantial assistance.

SAN ANTONIO – A San Antonio man was sentenced in federal court to 210 months in prison for distribution of child pornography.

According to court documents, Thomas Jeffrey McKissick V, 42, sent 18 images and four video files containing child pornography to an undercover police officer in Queensland, Australia on Feb. 6, 2022 and Feb. 7, 2022. Homeland Security Investigations executed a federal search warrant at McKissick’s San Antonio residence on March 10, 2022, seizing a cell phone that contained more than 10,000 images and nearly 800 video files of child sexual abuse material.

McKissick was arrested March 11, 2022 and has remained in federal custody. He pleaded guilty to one count March 5, 2024. In addition to the 210 month imprisonment, McKissick was ordered to serve lifetime supervised release and pay $15,000 restitution.

“This case demonstrates that our partnerships to combat criminal activity and prosecute child predators reach far beyond our state lines and our nation’s borders,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thanks to this bilateral investigation and the collaboration between HSI San Antonio and the Queensland Police Service in Australia, this predator can no longer inflict harm on children.”

“While this significant sentence cannot repair the permanent damage done to the children depicted in these images, it should serve as a warning to those who engage in this behavior. HSI and our partners will be relentless in our pursuit of online predators," said Special Agent in Charge Craig Larrabee for HSI San Antonio. "The collaboration between HSI and our international partners is critical in our mission to protect vulnerable children and bring perpetrators to justice.”

“This arrest is an excellent outcome, made possible through the exceptional collaboration between the Queensland Police Service and Homeland Security Investigations,” said Detective Inspector Glen Donaldson for the Queensland Police Service child exploitation unit Argos. “This joint effort underscores the importance of interagency cooperation in our shared mission to target high-harm offenders, enhance community safety and remove children from harm.”

HSI takes a victim-centered approach to child exploitation investigations by working to identify, rescue and stabilize victims. HSI works in partnership with the National Center for Missing and Exploited Children, Internet Crimes Against Children partners, and other federal, state and local agencies to help solve cases and rescue sexually exploited children. You can report suspected child sexual exploitation or missing children to the National Center for Missing and Exploited Children’s toll-free, 24-hour hotline at 800-THE-LOST.

HSI is a founding member of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.

HSI and the Queensland Police Service investigated the case.

Assistant U.S. Attorney Bettina Richardson prosecuted the case.

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

 

###

PHOENIX, Ariz. – Last week, a federal jury found Todd Gehman Howard, 60, of Kingman, Arizona, guilty of being a convicted felon in possession of firearms and ammunition. Sentencing is scheduled for August 1, 2022, before U.S. District Judge Susan Brnovich. 

On October 11, 2019, FBI agents executed a search warrant at Howard’s residence in Kingman, Arizona. Inside the residence, agents discovered 23 firearms, including 21 in a safe in Howard’s bedroom closet, and approximately 7,600 rounds of ammunition. Howard’s firearms included various types of revolvers, shotguns, and semi-automatic rifles. One of the guns in the safe was a Privately Made Firearm (PMF), FAL-type .308 caliber semiautomatic rifle, sometimes referred to as a “ghost gun.” Evidence presented at trial showed the receiver of that firearm was forged in Australia, and that the completed firearm had traveled from the State of Washington to Arizona.

“The Department of Justice takes seriously the prohibited possession of firearms. This Office will continue to prosecute such cases vigorously, especially cases such as this that involve federal felons possessing large quantities of firearms and ammunition,” said United States Attorney Gary Restaino.

The FBI conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Joseph Koehler and William Rubens, District of Arizona, Phoenix, handled the prosecution.

CASE NUMBER:           CR-21-8033-PCT-SMB

RELEASE NUMBER:    2022-077_Howard

# # #

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

PHOENIX, Ariz. – Donald Day, Jr., 58, of Heber, was arrested on Friday, on a federal arrest warrant after a federal grand jury indicted him on two counts of Interstate Threats.

From January 2022 to February 2023, Day used social media platforms to express a desire to incite violence and threaten a variety of groups and individuals, including law enforcement and government authorities. As to Count One, following the killing of two Queensland (Australia) Police Service officers in December 2022, Day posted a video on YouTube threatening any law enforcement official who came to his residence. Separately, as to Count Two, Day threatened to kill a victim (the Director General of the World Health Organization) in February 2023 on the video platform BitChute, calling on others to join him.

Each count carries a maximum sentence of five years in prison, a fine of up to $250,000, and up to three years of supervised release.

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

The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, is handling the prosecution.

 

CASE NUMBER:            CR-23-8132-PCT-JJT

RELEASE NUMBER:    2023-196_Day

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

PHOENIX, Ariz. – Last week, Todd Gehman Howard, 60, of Kingman, Arizona, was sentenced by United States District Judge Susan M. Brnovich to 63 months in prison, followed by three years of supervised release. Howard was previously found guilty of being a Convicted Felon in Possession of Firearms and Ammunition following a jury trial in May 2022.  

On October 11, 2019, FBI agents executed a search warrant at Howard’s residence in Kingman, Arizona. Inside the residence, agents discovered 23 firearms, including 21 in a safe in Howard’s bedroom closet, and approximately 7,600 rounds of ammunition. Howard’s firearms included various types of revolvers, shotguns, and semi-automatic rifles. One of the guns in the safe was a Privately Made Firearm (PMF), FAL-type .308 caliber semiautomatic rifle, sometimes referred to as a “ghost gun.” Evidence presented at trial showed the receiver of that firearm was forged in Australia, and that the completed firearm had traveled from the State of Washington to Arizona.

The FBI conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Joseph Koehler and William Rubens, District of Arizona, Phoenix, handled the prosecution.

 

CASE NUMBER:            CR-21-8033-PHX-PCT-SMB

RELEASE NUMBER:    2022-145_HOWARD

# # #

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

Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714, Michelle Wasserman (619) 546-8431, Valerie Chu (619) 546-6750, and David Chu (619) 546-8266

NEWS RELEASE SUMMARY – June 29, 2022

SAN DIEGO – Former U.S. Navy Captains David Newland, James Dolan and David Lausman and former Commander Mario Herrera – all of whom once served in the Navy’s Seventh Fleet - were convicted on all counts by a federal jury today of accepting bribes from foreign defense contractor Leonard Francis. The jury did not reach a verdict on the charges against Rear Admiral Bruce Loveless.

Nine members of the U.S. Navy’s Seventh Fleet – including the four defendants convicted today - were indicted by a federal grand jury in March 2017.  Four other defendants pleaded guilty before trial.

During the trial, three U.S. Navy officials – Commander Stephen Shedd, former Lieutenant Commander Edmond A. Aruffo, and U.S. Navy Captain Jesus Vasquez Cantu – and former Lieutenant Commander Alexander Bryan Gillett of the Royal Australian Navy, testified about the alleged bribery scheme.

This long-running fraud and bribery investigation has resulted in federal criminal charges against 34 U.S. Navy officials, defense contractors and the GDMA corporation. Twenty-nine previously pleaded guilty. With today’s four convictions, 33 defendants have now been convicted of various fraud and corruption offenses.

U.S. District Judge Janis L. Sammartino set a status hearing for July 21, 2022, at 2 p.m. A sentencing hearing is scheduled for October 11, 2022, at 9 a.m.

DEFENDANTS                  Case Number: 17CR0623-JLS

Captain David Newland                                 Age 60                        San Antonio, Texas

Chief of Staff to the Commander of the Seventh Fleet

Captain James Dolan                                      Age 58                        Gettysburg, Pennsylvania

Assistant Chief of Staff for Logistics for the Seventh Fleet

Captain David Lausman                                 Age 62                        The Villages, Florida

Commanding Officer of U.S.S. Blue Ridge; Commanding Officer of U.S.S. George Washington

Commander Mario Herrera                            Age 48                        Helotes, Texas

Fleet Operations and Schedules Officer for the Seventh Fleet

SUMMARY OF CHARGES

Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371

Maximum Penalty: Five years in prison, a $250,000 fine, or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greater

*All defendants

Bribery, in violation of 18 U.S.C. § 201

Maximum Penalty: Fifteen years in prison, a $250,000 fine or twice the gross pecuniary gain or gross pecuniary loss from the offense, or three times the monetary equivalent of the thing of value, whichever is greater

*All defendants

Obstruction of Justice, in violation of 18 U.S.C. § 1519

Maximum Penalty: Twenty years in prison, a $250,000 fine

*Lausman

Conspiracy to Commit Honest Services Wire Fraud, in violation of 18 U.S.C. §§ 1349, 1346, 1343

Maximum Penalty: Twenty years in prison, a $250,000 fine

*All defendants

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

NEWS RELEASE SUMMARY – April 16, 2021

SAN DIEGO – Valorie Moser, former bookkeeper for the adult website GirlsDoPorn, pleaded guilty in federal court today to conspiring with the operators of the website to fraudulently coerce young women to appear in sex videos.

Moser, who worked for GirlsDoPorn (GDP) from 2015 to 2018, pleaded guilty before U.S. Magistrate Linda Lopez to Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion. Moser, the third of six defendants to plead guilty, admitted that she served as GDP’s bookkeeper, made travel arrangements for models, provided transportation for approximately 100 models once they arrived in San Diego, and performed miscellaneous other tasks. Moser reported her accounting activities to co-defendant Matthew Wolfe, and her interactions with the models to co-defendant Michael Pratt and others.

Moser admitted she knew that GDP produced pornographic videos for publication and dissemination on the internet, and that the young women being recruited to star in these pornographic videos had been provided false assurances that the videos would not be published on the internet. For example, Moser overheard Pratt, using the alias “Mark,” telling prospective models that the video footage would only be distributed on DVDs in Australia, and that the models would remain anonymous, statements that Moser knew to be false.

Further, Pratt instructed Moser not to tell the women the truth about their video’s distribution as she drove the young women to and from the video shoots. Moser was to tell the women that she was just an Uber driver. Later, Pratt told Moser to tell the women that she was bound by a non-disclosure agreement and could not discuss it.

After the videos were posted on-line and widely available, many women contacted Moser to ask that their videos be taken down. Pratt, Wolfe and co-defendant Ruben Garcia all told Moser to block any calls from these women.

Moser also attempted to recruit potential models. Pratt gave her a list of names and numbers and showed her how to use a spoof program to conceal her actual phone number when making calls. Moser was aware that Pratt had a grading system for young women, and that she would get paid more if Pratt found the recruited women attractive. Pratt instructed Moser to tell all prospective models the same lie - that the videos would be released solely on DVD in Australia. Moser knew this to be false. Moser never actually recruited anyone and therefore never made these promises.

“This defendant was a willing participant in a scheme that has traumatized many victims,” said Acting U.S. Attorney Randy Grossman. “We will continue to seek justice for these women, and to prevent others from becoming ensnared by sex traffickers.” Grossman commended the excellent work of Assistant U.S. Attorneys Joseph Green and Alexandra F. Foster, as well as FBI agents and members of the San Diego Human Trafficking Task Force, for their continuing effort to investigate and prosecute this important case.

“Valorie Moser’s guilty plea closes yet another chapter in this deplorable crime ring,” said FBI Special Agent in Charge Suzanne Turner. “The defendant used lies and deceit to help facilitate this sex trafficking conspiracy.”

Moser is scheduled to be sentenced by U.S. District Judge Janis L. Sammartino on July 2, 2021, at 9:00 a.m. The next hearing in the ongoing case is May 7, 2021 at 2:00 p.m., also before Judge Sammartino.

Any additional victims of the alleged crime are encouraged to call the San Diego FBI at 858-320-1800.

The FBI is offering a reward of up to $10,000 for information leading to the arrest of Michael James Pratt. Individuals with information about Pratt should contact their local FBI office or the nearest American Embassy or Consulate.

For further information, please see:

- Wanted Poster: https://www.fbi.gov/wanted/additional/michael-james-pratt

- Press Release:  https://www.fbi.gov/contact-us/field-offices/sandiego/news/press-releases/fbi-seeks-public-assistance-in-locating-sex-trafficking-suspect

DEFENDANT                                              Case Number 19cr4488-JLS

Valorie Moser                                             Age: 38                                          San Diego, CA*

*Pleaded guilty to a Superseding Information charging Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, in violation of 18 U.S.C. § 371.

Maximum Penalty: Five years in prison, $250,000 fine, a special assessment of $100.

CO-DEFENDANTS

Michael James Pratt Age: 36 Fugitive

Matthew Isaac Wolfe Age 37 San Diego, CA

Ruben Andre Garcia Age: 31 San Diego, CA**

** Pleaded guilty to Counts 1 and 7

Theodore Gyi Age: 42 Rancho Aliso, CA**

** Pleaded guilty to Superseding Information charging Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, in violation of 18 U.S.C. § 371

Amberlyn Dee Nored Age: 27 San Diego, CA

SUMMARY OF CHARGES

Count 1 (charging all defendants)

Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594(c)

Maximum Penalty: Life in prison, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.

Count 2 (Pratt)

Production of Child Pornography, 18 U.S.C. § 2251(a) and (e)

Minimum penalty: Fifteen years in prison; Maximum penalty: 30 years in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.

Count 3 (Pratt)

Sex Trafficking of a Minor by Force, Fraud and Coercion, 18 U.S.C. § 1591(a)(1) and (2)

Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.

Counts 4 (Pratt, Wolfe, Garcia), 5 (Pratt, Garcia), 6 (Pratt, Wolfe, Garcia), 7 (Pratt, Garcia, Gyi), 8 (Pratt, Garcia, Gyi)

Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1591(a) and (b)(1)

Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.

INVESTIGATING AGENCY

Federal Bureau of Investigation – San Diego Field Office

San Diego Human Trafficking Task Force

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

SAN DIEGO – Alexander Dmitrienko of Finland became the last of eight defendants extradited so far to admit participating in the worldwide conspiracy to distribute ANOM hardened encrypted communication devices to criminal syndicates. The ANOM enterprise facilitated drug trafficking, money laundering, and obstruction of justice crimes.The eight defendants were among 17 indicted in San Diego in 2021 in connection with Operation Trojan Shield, a first-of-its-kind, international law enforcement effort in which the FBI secretly operated an encrypted messaging network. The ANOM criminal enterprise was responsible for the distribution of more than 12,000 devices in 100 countries. While ANOM’s criminal users unknowingly communicated on the system operated by law enforcement, agents catalogued more than 27 million messages between users around the world whose criminal discussions were covertly obtained and reviewed by the FBI.ANOM devices were sold to and used by over 300 criminal syndicates, including outlaw motorcycle gangs, Italian and Balkan organized crime groups, and international drug trafficking organizations. The investigation culminated in a worldwide takedown on June 7, 2021. During the takedown, more than 10,000 law enforcement officers made over 500 arrests and searched over 700 locations around the world.Of the 17 indicted in San Diego, eight have been extradited to date. Dmitrienko pleaded guilty in federal court yesterday; defendants Seyyed Hossein Hosseini and Aurangzeb Ayub of the Netherlands and Shane Ngakuru of New Zealand entered their guilty pleas on January 23, 2025; Dragan Nikitovic, Edwin Harmendra Kumar, Miwand Zakhimi, and Osemah Elhassen pleaded guilty between May and September 2024. All pleaded guilty to Count 1 of a superseding indictment charging them with a racketeering conspiracy in connection with the ANOM enterprise.Prior to their guilty pleas, the defendants filed motions to dismiss the indictment and a motion to suppress the ANOM evidence. The District Court denied those motions, concluding the Fourth Amendment did not apply to the defendants and the ANOM data collection did not violate the U.S. Constitution.In total, the investigation resulted in approximately 1,200 arrests; the seizure of more than 12 tons of cocaine, three tons of methamphetamine or amphetamines; 17 tons of precursor chemicals, 300 firearms, and $58 million in various currencies. Dozens of public corruption investigations, too, have been pursued, and more than 50 drug labs have been dismantled. Further, over 150 threats to life were prevented.According to their plea agreements, the defendants promoted the ANOM platform as “Built by criminals for criminals,” and touted security features such as the ability to wipe devices remotely when seized by law enforcement. The defendants admitted that the conspiracy’s purposes included money laundering and laundering with cryptocurrency. As to drugs, specifically, the four defendants who pleaded guilty in January and February 2025—Hosseini, Dmitrienko, Ayub, and Ngakuru—all admitted that they sold ANOM devices knowing that they would be used to traffic at last 50 kilograms of cocaine; Ngakuru also admitted the importation, exportation, and distribution of at least five kilograms of methamphetamine. Based on their plea agreements and other court filings, what these defendants also did as part of the conspiracy included:Hosseini was a part of a team of ANOM distributors, “Team Wijzijn,” based in the Netherlands. He and Dmitrienko discussed the distribution of “90% pure, Peruvian” cocaine, for example, and he and Kumar messaged each other about bringing “kilos” from Belgium and getting drugs to Australia by “Fisher boats.” Hosseini promoted ANOM’s security features and told other distributors about vulnerabilities of competitors SkyECC and No. 1 BC. Hosseini also admitted to obstructing justice through wiping ANOM devices when they were seized by law enforcement.Dmitrienko distributed ANOM devices from Spain. He frequently used ANOM for cocaine and other drug distribution: “5 blocks of colombian coke” and “32 blocks,” he offered in two instances, in addition to conversations about “cook[ing] cocaine.” Dmitrienko wrote about “gateways” and “interesting opportunities” for the enterprise in Russia and Ukraine, including through Latvia and Lithuania. He also promoted money laundering through a company he had in Delaware, telling Hosseini that it involved “0% tax and no book[k]eeping…Yes this is pure moneylaund[e]ring 😂.”Ayub was an ANOM distributor in Europe, who also sold encrypted communications devices in the U.A.E.—and he had been imprisoned in Dubai for distributing these types of platforms. Ayub was involved in cocaine distribution as he talked about “top” (cocaine) from Colombia, and delivery to London, and sending “100k at a time” to pay for the drugs. He promoted ANOM through his own experience and contrasts with Encrochat and SkyECC, both of which were taken down by law enforcement in 2020 and 2021. Ayub, too, admitted to the obstruction of justice through wiping ANOM devices.Ngakuru was based in Thailand, distributing ANOM devices there and in New Zealand and Australia. He used the platform for extensive cocaine and methamphetamine distribution and money laundering. He was tied to two seizures of methamphetamine; discussed quality, repressing, and prices for “rack” and “bird” (cocaine); and detailed in messages how seven kilograms of methamphetamine was concealed in boxes of “full scan proof” “commercial lights.” Among other times he laundered proceeds, Ngakuru coordinated cash pickup in Sydney, Australia and directed deposits into “Thai accounts.”“The statistics of this case are staggering,” said U.S. Attorney Tara McGrath. “The FBI led this unprecedented collaboration for years, harnessing the evidence to bring down cocaine, meth, and cash traffickers across the globe. These guilty pleas underscore the impact of international partnerships in dismantling organized crime.”“Operation Trojan Shield was a massive, innovative, and unprecedented case having immeasurable implications to criminal organizations across the globe,” said FBI San Diego Special Agent in Charge Stacey Moy. “This extraordinary impact came from an investigative strategy that relied on ingenuity, partnerships, and perseverance, designing a blueprint for disrupting organized crime within the United States and abroad. The guilty pleas of all extradited defendants highlight the effectiveness of this strategy and reinforces the FBI’s collaborative approach aimed at dismantling Transnational Criminal Organizations worldwide.”Matthew Allen, Special Agent in Charge of the DEA Los Angeles Field Division, said, “The triumph of this vast-scale operation demonstrates the immense value of partnerships, both domestic and international. Expert investigators in the DEA Los Angeles Division, working alongside innovative and exceptionally experienced federal and foreign-based partners, took an intricate investigation to the next level. Our multi-agency alliance managed to infiltrate these transnational criminal organizations, ultimately exposing and pummeling their schemes. DEA will continue to foster this type of unprecedented collaboration and offer a core presence.”Elhassen and Zakhimi were previously sentenced to 63 and 60 months in prison, respectively. The other six defendants who have pleaded guilty are scheduled to be sentenced in February, April, and May, 2025. They were extradited to the Southern District of California from Australia (Kumar), Colombia (Elhassen), The Netherlands (Hosseini, Ayub, and Zakhimi), Spain (Dmitrienko and Nikitovic), and Thailand (Ngakuru). Eight other defendants in the case have been arrested in locations outside the United States and are yet to be extradited, and one remains a fugitive.This case is being prosecuted by Assistant U.S. Attorneys Joshua C. Mellor, Mikaela L. Weber, and Peter S. Horn.For further information on investigations and prosecutions of encrypted communication providers, see https://www.justice.gov/usao-sdca/pr/fbi-s-encrypted-phone-platform-infiltrated-hundreds-criminal-syndicates-result-massive (ANOM), https://www.justice.gov/usao-sdca/pr/sky-global-executive-and-associate-indicted-providing-encrypted-communication-devices (Sky Global), and https://www.justice.gov/usao-sdca/pr/chief-executive-communications-company-sentenced-prison-providing-encryption-services (Phantom Secure).Operation Trojan Shield is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.The Justice Department’s Office of International Affairs provided significant assistance in securing the arrests and extraditions of the defendants to the United States.DEFENDANTS                                 Case Number 21cr1623-JLS                                   Seyyed Hossein Hosseini                   Age: 41                       The NetherlandsAlexander Dmitrienko                        Age: 49                       FinlandAurangzeb Ayub                                 Age: 48                       The NetherlandsDragan Nikitovic                                Age: 50                       Croatia and Switzerland aka Dr. DjekShane Ngakuru                                   Age: 45                       New ZealandEdwin Harmendra Kumar,                  Age: 37                       Australia aka Edwin Harmendra ValentineMiwand Zakhimi,                               Age: 30                       The Netherlands aka Maiwand ZakhimiOsemah Elhassen                                Age: 52                       AustraliaSUMMARY OF CHARGESCount 1: Racketeering Conspiracy – Title 18, United States Code, Section 1962(d)Maximum penalty: Twenty years in prison, and fine of up to $250,000 or twice the gain or lossINVESTIGATING AGENCIESFederal Bureau of InvestigationDrug Enforcement AdministrationUnited States Marshals ServiceDepartment of Justice, Office of International AffairsAustralian Federal PoliceSwedish Police AuthorityLithuanian Criminal Police BureauNational Police of the NetherlandsOffice of the Attorney General of ThailandRoyal Thai PoliceEUROPOL

Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714, Michelle Wasserman (619) 546-8431, Valerie Chu (619) 546-6750, and David Chu (619) 546-8266

NEWS RELEASE SUMMARY – August 31, 2021

SAN DIEGO – Retired Chief Warrant Officer Robert Gorsuch admitted in federal court today that he received more than $45,000 in bribes from foreign defense contractor Leonard Francis, who plied him with stays at luxurious hotels plus meals, entertainment and other gifts in exchange for official acts that would help Francis’ ship husbanding business, including the disclosure of multiple classified ship schedules.

Gorsuch was one of nine members of the U.S. Navy’s Seventh Fleet indicted in March 2017 for participating in a conspiracy with Francis, the owner and CEO of Singapore-based Glenn Defense Marine Asia.

The U.S. Navy’s Seventh Fleet represents a vital piece of the United States military’s projection of power as well as American foreign policy and national security. The largest numbered fleet in the U.S. Navy, the Seventh Fleet is comprised of 60-70 ships, 200-300 aircraft and approximately 40,000 Sailors and Marines. The Seventh Fleet is responsible for U.S. Navy ships and subordinate commands that operate in the Western Pacific throughout Southeast Asia, Pacific Islands, Australia, and Russia and the Indian Ocean territories, as well ships and personnel from other U.S. Navy Fleets that enter the Seventh Fleet’s area of responsibility

Gorsuch is the first of the Seventh Fleet defendants to plead guilty. The remaining defendants, who are accused of trading military secrets and substantial influence for sex parties with prostitutes, extravagant dinners and luxury travel, are scheduled for trial on November 1, 2021. They include U.S. Navy Rear Admiral Bruce Loveless; Captains David Newland, James Dolan, Donald Hornbeck and David Lausman; Colonel Enrico DeGuzman; Lt. Commander Stephen Shedd; and Commander Mario Herrera.

This case has resulted in federal criminal charges against 34 Navy officials, defense contractors and the GDMA corporation. So far, 26 of those have pleaded guilty, admitting that they collectively accepted millions of dollars in luxury travel and accommodations, meals, or services of prostitutes from Francis in exchange for helping GDMA win and maintain contracts and overbill the Navy by over $35 million.

“Gorsuch essentially sold his honor for a few nights at the Shangri-La,” said Acting U.S. Attorney Randy Grossman. “Gorsuch sacrificed his integrity for so little and caused so much harm in the process. Today, Gorsuch has admitted his part in this scandal and will be held to account for his conduct.”

Gorsuch was a Chief Warrant Officer in the U.S. Navy, who, from January 2005 to March 2008, served as the Seventh Fleet’s Flag Administration Officer.  In this role, he provided administrative support to the Seventh Fleet Commander, department heads, and other senior officers of the Seventh Fleet staff.

According to his plea agreement, Gorsuch admitted to receiving the following bribes from Francis:

On or about February 8, 2007, Gorsuch and others attended a party at the Manila Hotel in Manila, Philippines, for which Francis paid expenses, which totaled approximately $15,000.

On or about February 11, 2007, Gorsuch and others stayed at Francis’s expense at the Shangri-La Hotel in Cebu, Philippines.

From March 1-5, 2007, Gorsuch stayed at Francis’s expense at the Shangri-La Hotel in Kuala Lumpur, Malaysia.   

On or about June 17, 2007, Gorsuch and others dined at Francis’s expense at Altitude Shangri-La in Sydney, Australia.           

On or about January 19, 2008, defendant and others stayed at Francis’s expense for two nights at the Ritz Carlton in Tokyo. 

According to admissions in his plea agreement, Gorsuch reciprocated by sending Francis disks containing classified ship schedules for the Navy’s Seventh Fleet. In an email to Francis on October 25, 2007, Gorsuch wrote: “By the way, the two disks … the yellow one is the latest with current C7F sked as briefed to the boss.  I will investigate on the dates for the ships you requested and get back to you shortly.” Two days later, Gorsuch, using the same email account, sent Francis an email describing the planned movements of the U.S.S. Tarawa and U.S.S. Hopper for December 17-21, 2007.  Likewise, on or about August 3, 2008, Francis emailed Gorsuch at the same email account to make a demand: “I need some [ship schedule] updates.  When shall I call you?”  Gorsuch responded: “Sked fluctuating a lot right now – should start to solidify next week.  Will drop you an e-mail when they are done chopping it up next week and we can talk.

“Mr. Gorsuch's guilty plea unequivocally memorializes his participation in the charged corruption scheme, wherein he and others sacrificed the honor of serving our great nation with distinction in return for personal gain,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service. “The comprehensive joint investigation that exposed Mr. Gorsuch's illegal activities is but one example of the lengths DCIS and its investigative partners will go to pursue justice for the Warfighter and defend the integrity of the men and women who truly exemplify service before self.”

“Mr. Gorsuch will be held fully accountable for accepting lavish gifts in exchange for, among other things, passing classified information to Mr. Francis and GDMA,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners remain committed to rooting out bribery and corruption wherever it exists and thwarting the potentially grave attendant consequences.”

DEFENDANT                                                                       Case Number: 17-CR-0623-JLS              

Chief Warrant Officer (Retired) Robert Gorsuch                   Age: 54                                 Mississippi

SUMMARY OF CHARGES

Bribery in violation of 18 U.S.C. § 201

Maximum Penalty: Fifteen years in prison, $250,000 fine

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

SAN DIEGO – Osemah Elhassen of Sydney, Australia, was sentenced in federal court today to 63 months in prison for participating in a worldwide conspiracy to distribute hardened encrypted communication devices to criminal syndicates to facilitate drug trafficking and other crimes.Elhassen was one of 17 defendants indicted in San Diego in 2021 in connection with Operation Trojan Shield, an international law enforcement effort in which the FBI secretly operated an encrypted messaging network used by criminals, leading to the arrests of hundreds worldwide.According to court records, the platform was known as ANOM. While ANOM’s criminal users unknowingly communicated on the system operated by the FBI, agents catalogued more than 27 million messages between users around the world whose criminal discussions were covertly obtained and reviewed by the FBI. The platform was taken down in June 2021. Please see Operation Trojan Shield in 2021.Elhassen pleaded guilty in May 2024 to Count 1 of a superseding indictment charging him and the others with a racketeering conspiracy in connection with the ANOM enterprise. A citizen of Australia, Elhassen was a Colombia-based distributor of ANOM devices who was also directly involved in drug trafficking and money laundering.Elhassen admitted that around November 2019, he became a member of the ANOM enterprise. According to his plea agreement, he admitted to helping accomplish the illegal objectives of that enterprise, including drug trafficking, money laundering, and obstruction of justice offenses. To that end, Elhassen distributed ANOM devices to criminal end-users for over a year and a half, and in doing so, facilitated the importation, exportation, and distribution of at least 15 kilograms of cocaine and the laundering of proceeds from the enterprise’s illegal activities.According to the government’s sentencing filings, Elhassen’s ANOM messages show significant distribution of ANOM devices in Colombia and other places. His messages also show that Elhassen participated in providing ANOM device support and arranging subscription renewals, among other sales and price-setting activity.Elhassen was arrested in Colombia in June 2021 and was extradited to the Southern District of California in May 2023. He pleaded guilty in May 2024.“Despite use of sophisticated technology and extreme measures to conceal the criminal enterprise, Mr. Elhassen could not thwart federal investigators,” said U.S. Attorney Tara McGrath. “The sentence today demonstrates that even those who go to the greatest lengths to hide will be held to account.”“Evidence collected during Operation Trojan Shield showed that distributors of ANOM devices, like Mr. Elhassen, were not merely providing a messaging service but enabling and facilitating Transnational Criminal Organizations,” said FBI San Diego Special Agent in Charge, Stacey Moy. “Today’s sentence should send a strong message to the users and distributors of these types of devices. The FBI will continue to collaborate with domestic and international partners on new and innovative strategies to combat the ever-evolving threat posed by transnational criminal organizations.”This case is being prosecuted by Assistant U.S. Attorneys Joshua C. Mellor, Mikaela L. Weber, and Peter S. Horn. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché Office in Bogota provided significant assistance in securing the arrest and extradition of Elhassen. The United States also thanks Colombian law enforcement authorities for their valuable assistance.Three other defendants in this case have pleaded guilty, including Dragan Nikitovic, aka Dr. Djek; Edwin Harmendra Kumar, aka Edwin Harmendra Valentine; and Miwand Zakhimi, aka Maiwand Zakhimi. They are scheduled to be sentenced in December 2024 and January 2025. A trial for four other defendants is scheduled for March 10, 2025. Eight other defendants in the case are yet to be extradited to the United States, and one is a fugitive.For further information on investigations and prosecutions of encrypted communication providers, see https://www.justice.gov/usao-sdca/pr/fbi-s-encrypted-phone-platform-infiltrated-hundreds-criminal-syndicates-result-massive (ANOM), https://www.justice.gov/usao-sdca/pr/sky-global-executive-and-associate-indicted-providing-encrypted-communication-devices (Sky Global), and https://www.justice.gov/usao-sdca/pr/chief-executive-communications-company-sentenced-prison-providing-encryption-services (Phantom Secure).Operation Trojan Shield is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.DEFENDANT                                               Case Number 21cr1623-JLS-17                                   Osemah Elhassen                                            Age: 51                                   Sydney, AustraliaSUMMARY OF CHARGESCount 1:  Racketeering Conspiracy – Title 18, U.S.C., Section 1962(d)Maximum penalty: Twenty years in prison, and fine of up to $250,000 or twice the gain or lossINVESTIGATING AGENCIESFederal Bureau of InvestigationDrug Enforcement AdministrationUnited States Marshals ServiceDepartment of Justice, Office of International AffairsAustralian Federal PoliceSwedish Police AuthorityLithuanian Criminal Police BureauNational Police of the NetherlandsEUROPOL                                                          

For Further Information, Contact:

Media Relations Director Kelly Thornton (619) 546-9726

SAN DIEGO – A wave of hundreds of arrests that began in Australia and stretched across Europe culminated today with the unsealing of a federal grand jury indictment in San Diego charging 17 foreign nationals with distributing thousands of encrypted communication devices to criminal syndicates.

The 500-plus arrests that took place during a worldwide two-day takedown were possible because of a San Diego-based investigation like no other. For the first time, the FBI operated its own encrypted device company, called “ANOM,” which was promoted by criminal groups worldwide. These criminals sold more than 12,000 ANOM encrypted devices and services to more than 300 criminal syndicates operating in more than 100 countries, including Italian organized crime, Outlaw Motorcycle Gangs, and various international drug trafficking organizations, according to court records.

SEARCH WARRANT - Operation Trojan Shield

INDICTMENT - Operation Trojan Shield











During the course of the investigation, while ANOM’s criminal users unknowingly promoted and communicated on a system operated lawfully by the FBI, agents catalogued more than 27 million messages between users around the world who had their criminal discussions reviewed, recorded, and translated by the FBI, until the platform was taken down yesterday.

The users, believing their ANOM devices were protected from law enforcement by the shield of impenetrable encryption, openly discussed narcotics concealment methods, shipments of narcotics, money laundering, and in some groups—violent threats, the indictment said. Some users negotiated drug deals via these encrypted messages and sent pictures of drugs, in one instance hundreds of kilograms of cocaine concealed in shipments of pineapples and bananas, and in another instance, in cans of tuna, in order to evade law enforcement.

The indictment charges 17 alleged distributors of the FBI’s devices and platform. They are charged with conspiring to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), pertaining to their alleged involvement in marketing and distributing thousands of encrypted communication devices to transnational criminal organizations worldwide.

During the last 24 to 48 hours, in addition to the more than 500 arrests around the world, authorities searched more than 700 locations deploying more than 9,000 law enforcement officers worldwide and seized multi-ton quantities of illicit drugs.

CLICK HERE - Video Messages from International Partners

Grand totals for the entire investigation include 800 arrests; and seizures of more than 8 tons of cocaine; 22 tons of marijuana; 2 tons of methamphetamine/amphetamine; six tons of precursor chemicals; 250 firearms; and more than $48 million in various worldwide currencies. Dozens of public corruption cases have been initiated over the course of the investigation. And, during the course of the investigation, more than 50 clandestine drug labs have been dismantled. One of the labs hit yesterday was one of the largest clandestine labs in German history.

“This was an unprecedented operation in terms of its massive scale, innovative strategy and technological and investigative achievement,” said Acting U.S. Attorney Randy Grossman. “Hardened encrypted devices usually provide an impenetrable shield against law enforcement surveillance and detection. The supreme irony here is that the very devices that these criminals were using to hide from law enforcement were actually beacons for law enforcement. We aim to shatter any confidence in the hardened encrypted device industry with our indictment and announcement that this platform was run by the FBI.”



















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“Today marks the culmination of more than five years of innovative and complex investigative work strategically aimed to disrupt the encrypted communications space that caters to the criminal element,” said Suzanne Turner, Special Agent in Charge of the Federal Bureau of Investigation (FBI) - San Diego Field Office.  “The FBI has brought together a network of dedicated international law enforcement partners who are steadfast in combating the global threat of organized crime. The immense and unprecedented success of Operation Trojan Shield should be a warning to international criminal organizations  – your criminal communications may not be secure; and you can count on law enforcement worldwide working together to combat dangerous crime that crosses international borders.”

“Operation Trojan Shield is a perfect example of an OCDETF case - an investigation driven by intelligence and maximizing the strengths of partner law enforcement agencies in coordinated efforts to dismantle command and control elements of criminal networks,” said OCDETF Director Adam W. Cohen.  “Coordination is the cornerstone of the OCDETF program, and the impressiveness of the combined efforts of the U.S. Attorney’s Office, FBI, and our foreign partners cannot be overstated.  This effort has created lasting disruptive impacts to these transnational criminal organizations.”

“The AFP and FBI have been working together on a world-first operation to bring to justice the organised crime gangs flooding our communities with drugs, guns and violence,” said AFP Commissioner Reece Kershaw APM. “The FBI provided an encrypted communications platform while the AFP deployed the technical capability which helped unmask some of the biggest criminals in the world. This week the AFP and our state police partners will execute hundreds of warrants and we expect to arrest hundreds of offenders linked to the platform. This is the culmination of hard work, perseverance and an invaluable, trusted relationship with the FBI.

We thank the FBI for their long and integral partnership with the AFP.”

Europol’s Deputy Executive Director Jean-Philippe Lecouffe: “This operation is an exceptional success by the authorities in the United States, Sweden, the Netherlands, Australia, New Zealand and the other European members of the Operational Task Force. Europol coordinated the international law enforcement community, enriched the information picture and brought criminal intelligence into ongoing operations to target organised crime and drug trafficking organisations, wherever they are and however they choose to communicate. I am very satisfied to see Europol supporting this operation and strengthen law enforcement partnerships by emphasizing the multi-agency aspect of the case.”



















 

 

 

 

 

 

 

 

 

 

 

 

 

“I am exceptionally proud of our New Zealand Police staff who supported Operation Trojan Shield,” said New Zealand Police Commissioner Andrew Coster. “This operation will have an unprecedented impact on organised crime syndicates across the globe. We value our strong relationship with the FBI, AFP and Europol and it is through these partnerships and the unrelenting efforts by law enforcement agencies from multiple countries that this operation has seen such incredible success This is a fantastic result and reiterates the importance of our transnational partnerships with law enforcement agencies across the globe in our common ongoing efforts to dismantle organised crime groups and the enormous harm they cause to our communities.”

“This remarkably successful operation demonstrates what can be accomplished when law enforcement agencies throughout the world work together,” said DEA Los Angeles Division Special Agent in Charge Bill Bodner. “Through strong relationships with our partners in more than 67 countries, professionals throughout the DEA, including experts in the Los Angeles Division, supported this unprecedented collaboration and our own mission to disrupt and dismantle the criminal organizations that profit from the distribution of illegal drugs.”

According to the San Diego indictment, ANOM’s administrators, distributors, and agents described the platform to potential users as “designed by criminals for criminals” and targeted the sale of ANOM to individuals that they knew participated in illegal activities. 

All defendants are foreign nationals located outside of the U.S. In total, eight of the indicted defendants were taken into custody last night.  Authorities are continuing to search for the remaining nine defendants.

The indictment alleges the defendants knew the devices they distributed were being used exclusively by criminals to coordinate drug trafficking and money laundering, including in the U.S. The defendants personally fielded “wipe requests” from users when devices fell into the hands of law enforcement.

The FBI’s review of ANOM users’ communications worked like a blind carbon copy function in an email. A copy of every message being sent from each device was sent to a server in a third-party country where the messages were collected and stored. The data was then provided to the FBI on a regular basis pursuant to an international cooperation agreement. Communications such as text messages, photos, audio messages, and other digital information were reviewed by the FBI for criminal activity and disseminated to partner law enforcement agencies in other countries. Each user was using ANOM for a criminal purpose. Those countries have built their own cases against ANOM users, many of whom were arrested in takedowns in Europe, Australia and New Zealand over the last several days.

Intelligence derived from the FBI’s communications platform presented opportunities to disrupt major drug trafficking, money laundering, and other criminal activity while the platform was active. For example, over 150 unique threats to human life were mitigated.

This operation was led by the FBI and coordinated with the U.S. Drug Enforcement Administration, the U.S. Marshals Service, Australian Federal Police, Swedish Police Authority, National Police of the Netherlands, Lithuanian Criminal Police Bureau, Europol, and numerous other law enforcement partners from over a dozen other countries.

This investigation began after Canada-based encrypted device company Phantom Secure was dismantled by the FBI in 2018 through a San Diego-based federal RICO indictment and court-authorized seizure of the Phantom Secure platform, forcing many criminals to seek other secret communication methods to avoid law enforcement detection. The FBI—along with substantial contributions by the Australian Federal Police—filled that void with ANOM.

When the FBI and the San Diego U.S. Attorney’s Office dismantled Sky Global in March 2021, the demand for ANOM devices grew exponentially as criminal users sought a new brand of hardened encryption device to plot their drug trafficking and money laundering transactions and to evade law enforcement.  Demand for ANOM from criminal groups also increased after European investigators announced the dismantlement of the EncroChat platform in July 2020. The ANOM platform - unlike Phantom Secure, EncroChat, and Sky Global - was exploited by the FBI from the very beginning of ANOM’s existence and was not an infiltration of an existing popular encrypted communications company.

In October 2018, Phantom Secure’s CEO pleaded guilty to a RICO conspiracy in the Southern District of California.  He was sentenced to nine years in prison and ordered to forfeit $80 million in proceeds from the sale of Phantom devices.

For further information, please see https://www.justice.gov/usao-sdca/pr/chief-executive-communications-company-sentenced-prison-providing-encryption-services and https://www.justice.gov/usao-sdca/pr/sky-global-executive-and-associate-indicted-providing-encrypted-communication-devices.

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

Assistant U.S. Attorneys Meghan E. Heesch, Joshua C. Mellor, Shauna Prewitt, and Mikaela Weber of the U.S. Attorney’s Office for the Southern District of California are prosecuting the case, with assistance from Paralegal Specialist Tracie Jarvis.  Former Assistant U.S. Attorney Andrew P. Young made invaluable contributions during his tenure on the case team. 

Acting U.S. Attorney Grossman praised federal prosecutors and FBI agents and international law enforcement partners for their relentless pursuit of justice in this extraordinary case. Additionally, Acting U.S. Attorney Grossman thanked the coordinated efforts of the Department of Justice’s Office of International Affairs which facilitated many international components of this complex investigation.

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

DEFENDANTS  21-CR-1623-JLS

COUNTRY

*Joseph Hakan Ayik (1)

 

Domenico Catanzariti (2)

Australia

*Maximilian Rivkin (3)

 

Abdelhakim Aharchaou (4)

The Netherlands

*Seyyed Hossein Hosseini (5)

 

Alexander Dmitrienko (6) 

Spain

*Baris Tukel (7)     

 

*Erkan Yusef Dogan (8)    

 

*Shane Geoffrey May (9)    

 

Aurangzeb Ayub (10) 

The Netherlands

James Thomas Flood (11)  

Spain

*Srdjan Todorovic aka Dr. Djek (12)    

 

*Shane Ngakuru (13)    

 

Edwin Harmendra Kumar (14)  

Australia

Omar Malik (15)  

The Netherlands

Miwand Zakhimi (16)   

The Netherlands

*Osemah Elhassen (17)

 

*Fugitive

 

                                     

SUMMARY OF CHARGES

Conspiracy to Conduct Enterprise Affairs Through Pattern of Racketeering Activity (RICO Conspiracy), in violation of 18 U.S.C. § 1962(d)

Maximum Penalty: Twenty years in prion

AGENCIES

Federal Bureau of Investigation

Drug Enforcement Administration

United States Marshals Service

Department of Justice, Office of International Affairs

Australian Federal Police

Swedish Police Authority

Lithuanian Criminal Police Bureau

National Police of the Netherlands

EUROPOL

 

For further information, please see

https://www.europol.europa.eu/newsroom/news/800-criminals-arrested-in-biggest-ever-law-enforcement-operation-against-encrypted-communication

https://www.afp.gov.au/news-media/media-releases/afp-led-operation-ironside-smashes-organised-crime

Assistant U. S. Attorneys Benjamin Katz (619) 546-9604, Andrew Young (619) 546-7981 or Mark W. Pletcher (619) 546-9714

 

NEWS RELEASE SUMMARY – July 24, 2017

 

SAN DIEGO – Daniel Portley-Hanks, a Los Angeles based private investigator, was sentenced today to 16 months in prison for his role in the gambling organization run by former USC football player Owen Hanson.

 

Portley-Hanks entered a guilty plea to Hobbs Act extortion on December 27, 2016. According to his plea agreement, he was paid $7,000 by Hanson to drive from Los Angeles to a Pennsylvania cemetery where the family burial plot of an individual who owed Hanson’s organization money was located. Once there, Portley-Hanks took photos of the family tombstone, splattered it with red paint, and later altered the photographs to add the targeted individual’s name and the words “Very Soon” as the date of death. Another photo was altered to include an image of a masked Hanson standing over the family grave with a shovel. The photos and other documents created by Portley-Hanks were then mailed to the individual along with a video depicting two beheadings.

 

The government’s sentencing documents attached numerous emails between Hanson and Portley-Hanks that showed that for a period of more than three years, Portley-Hanks assisted Hanson’s organization by running background and location checks on gamblers and law enforcement officers, conducting surveillance, and connecting Hanson with Jack Rissell, another co-defendant who served as an “enforcer” for Hanson’s enterprise.

 

Rissell – who also pleaded guilty to extortion – is scheduled to be sentenced on July 31, 2017. In total, 21 of 22 defendants charged in relation to Hanson’s enterprise have entered guilty pleas. The remaining defendant, Khalid Petras, is set for trial on August 29, 2017. He is accused of money laundering and running an illegal gambling business. The charges against this defendant are merely accusations, and he is considered innocent until proven guilty.

 

The case arose out of a joint investigation by FBI and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Hanson was initially indicted and arrested on September 9, 2015, after arranging the delivery of five kilograms of cocaine and five kilograms of methamphetamine.

 

DEFENDANT Case Number: 15CR2310-WQH

 

Daniel Portley-Hanks Age: 71

 

SUMMARY OF CHARGES

 

Hobbs Act Extortion, 18 U.S.C. § 1951

Maximum penalty: 20 years’ imprisonment, $250,000 fine, 3 years’ supervised release.

 

AGENCY

Federal Bureau of Investigation – San Diego Field Office

Internal Revenue Service – San Diego

Australian Crime Commission

New South Wales Police Force

New South Wales Crime Commission

For more information contact:

Assistant U. S. Attorney Matthew J. Sutton (619) 546-8941, Special Assistant U.S. Attorney Nicole Bredariol (619) 546-8419, and Assistant U. S. Attorney Amy B. Wang (619) 546-6968

Click HERE for the indictment

Click HERE for the search warrant

SAN DIEGO – An indictment was unsealed today in federal court charging 60 members of a San Diego-based international methamphetamine distribution network tied to the Sinaloa Cartel with drug trafficking, money laundering and firearms offenses.

During the last month, hundreds of federal, state, and local law enforcement agents and officers have arrested dozens of defendants and searched multiple locations throughout San Diego County and in five states. As of today, 44 of the 60 defendants are either in federal or state custody, and the search continues for 16 defendants. In addition to these arrests, law enforcement has seized more than 220 pounds of methamphetamine and other illegal drugs; 90 firearms; and more than $250,000 in cash. Law enforcement officials are also seeking the forfeit of residences, high-end vehicles, and bulk cash belonging to these defendants.

According to the indictment and other publicly filed documents, over the last several years, this complex San Diego-based network obtained thousands of kilograms of methamphetamine from the Sinaloa Cartel to smuggle across the international border concealed in hidden compartments in passenger cars and motorcycles. The defendants then used these cars and motorcycles, along with trains, commercial airlines, the U.S. Mail, and commercial delivery services like FedEx and UPS to distribute that methamphetamine to dozens of sub-distributors located throughout San Diego County, the United States, and the world, including Hawaii, Arizona, Texas, Kansas, Iowa, Indiana, Michigan, Minnesota, Missouri, Connecticut, New York, New Jersey, Massachusetts, Kentucky, as well as Australia and New Zealand.

In return, tens of thousands of dollars in narcotics proceeds were returned to the network’s leaders via shipments of bulk cash, structured cash deposits into bank accounts, and money transfer systems like MoneyGram, Western Union, PayPal, Zelle, Venmo, and Cash App. And to protect their illegal operations, the defendants allegedly possessed dozens of firearms and used encrypted communication providers to communicate with each other. This drug trafficking and money laundering continued unabated throughout the COVID-19 global pandemic.

Despite their sophisticated efforts, law enforcement successfully penetrated this network with a variety of investigative techniques, including physical surveillance, obtaining phone records and financial documents, undercover agents, search warrants, as well as a six-month federal wiretap to intercept the communications and track the locations of the defendants.

Today we have dealt a serious blow to this San Diego-based international drug trafficking network with ties to the Sinaloa Cartel,” said Acting U.S. Attorney Randy Grossman. “The intersection of drug dealing and gun possession inevitably leads to violence in our communities. By dismantling this network, the Department of Justice reaffirms its unwavering commitment to reducing violent crime and building a San Diego where all our citizens are safe.”

“DEA is enhancing its efforts to disrupt, dismantle and destroy the most violent drug trafficking organizations across the country under Operation Crystal Shield,” said DEA Special Agent in Charge John W. Callery. “By dismantling this sophisticated drug trafficking network, DEA and our law enforcement partners have prevented significant quantities of methamphetamine and numerous firearms from making their way to the streets of San Diego and other neighborhoods throughout the United States.  Drug trafficking is a violent crime, that impacts the safety and security of our communities – and the drug and firearm seizures made in this investigation are testament to that.”

“The primary motivation of drug traffickers is greed,” said Ryan L. Korner, Special Agent in Charge for IRS-Criminal Investigation’s Los Angeles Field Office.  “IRS-CI will continue to work tirelessly alongside our partner agencies to stop the flow of narcotics and narcotics proceeds that are killing innocent Americans, and to ensure that crime doesn’t pay—that those individuals, like the 60 defendants indicted and arrested in this case, are brought to justice.”

“The U.S. Postal Inspection Service is committed to preserving the integrity of the mail by ridding the mail of involvement in drug trafficking,” said US Postal Inspection Service Acting Inspector in Charge Eric Shen of the Los Angeles Division. “This operation clearly shows that by combining our strengths and resources with all the involved agencies which include, federal, state and local law enforcement agencies we can disrupt their drug trafficking organizations to protect our communities.”

Acting U.S. Attorney Grossman also praised federal, state, and local law enforcement for the coordinated team effort in the culmination of this investigation. This case was led by the Drug Enforcement Administration’s Narcotics Task Force (NTF), the Internal Revenue Service - Criminal Investigation, and the United States Postal Inspection Service. The NTF is a DEA-led task force comprised of federal and local law enforcement from the DEA, San Diego County Sheriff’s Department, the San Diego Police Department, the Escondido Police Department, the United States Border Patrol, and the San Diego County Probation Office. Agents and officers from the United States Marshals Service, Homeland Security Investigations, Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Federal Bureau of Prisons, also provided vital assistance for the investigation. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, likewise provided critical work as part of the investigative team.

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

Assistant U.S. Attorneys Matthew J. Sutton, Nicole Bredariol, and Amy B. Wang of the U.S. Attorney’s Office for the Southern District of California are prosecuting the case, with assistance from Paralegal Specialists Kathleen Jordano and Leticia Adams.

 

An indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

 

DEFENDANTS                                            Case Number 21cr1559-H                           

(D1) Reyes Espinoza                                      Age: 35                                   San Ysidro, CA

(D2) David Villegas                                        Age: 49                                   San Diego, CA

(D3) John Bomenka                                        Age: 54                                   San Diego, CA

(D4) Dennis Jones                                          Age: 49                                   San Diego, CA

(D5) Darren Mosier                                        Age: 59                                   San Diego, CA

(D6) Frank Tucker                                          Age: 63                                   San Diego, CA

(D7) Charles Miller                                         Age: 52                                   San Diego, CA

*(D8) Carlos Espinoza                                    Age: 28                                   Tijuana, MX

(D9) Mario Espinoza                                      Age: 20                                   Tijuana, MX

(D10) Jaron Hillyer                                         Age: 30                                   San Diego, CA

(D11) Kristina Brown                                     Age: 32                                   San Diego, CA

(D12) Danny Miller                                        Age: 52                                   San Diego, CA

(D13) Shawn Morrill                                       Age: 49                                   San Diego, CA

*(D14) Hilleal Grant                                      Age: 51                                   San Diego, CA

*(D15) Lewis Rich                                         Age: 59                                   San Diego, CA

(D16) Cameron Graff                                     Age: 29                                   San Diego, CA

*(D17) Terry Haith                                         Age: 60                                   San Diego, CA

(D18) Tansy Steinhauer                                  Age: 51                                   San Diego, CA

*(D19) Jessica Pomeroy                                 Age: 30                                   San Diego, CA

*(D20) Shadow Segura                                   Age: 23                                   Houston, TX

(D21) Jasmine Lucas                                      Age: 50                                   San Diego, CA

(D22) Philip Abbas                                         Age: 42                                   San Diego, CA

*(D23) Peter Fuller                                         Age: 63                                   San Diego, CA

(D24) Eduardo Osuna                                     Age: 41                                   San Diego, CA

(D25) Frank Carrillo                                       Age: 45                                   San Diego, CA

(D26) Stephen Myrick                                    Age: 45                                   San Diego, CA

(D27) Gloria Sandoval                                   Age: 40                                   San Diego, CA

*(D28) Ashley Hilton                                     Age: 42                                   Houston, TX

(D29) Joseph Occhiogrosso                            Age: 44                                   Brooklyn, NY

(D30) Gary Beasley                                        Age: 39                                   San Diego, CA

*(D31) Arnulfo Rodriguez                             Age: 38                                   San Diego, CA

(D32) Alexandro Larios-Flores                       Age: 24                                   San Diego, CA

*(D33) Jose Vargas                                        Age: 31                                   San Diego, CA

(D34) Michael Nagle                                      Age: 50                                   San Diego, CA

*(D35) Raymond Sterling                               Age: 51                                   San Diego, CA

(D36) Terry Tyler                                           Age: 49                                   San Diego, CA

(D37) Victor Yamasaki                                   Age: 59                                   San Diego, CA

(D38) Chris Paschke                                       Age: 57                                   San Diego, CA

(D39) Charles Gerardi                                                Age: 57                                   Houston, TX

(D40) Christian Lopez-Villegas                      Age: 34                                   San Ysidro, CA

(D41) David Santa Maria                                Age: 49                                   San Diego, CA

(D42) Melvin Johnson                                    Age: 44                                   San Diego, CA

(D43) Daniel Babuata                                     Age: 34                                   San Diego, CA

*(D44) Garrett Steele                                     Age: 40                                   San Diego, CA

(D45) Vien Trinh                                            Age: 62                                   San Diego, CA

*(D46) Troy Prater                                         Age: 46                                   San Diego, CA

*(D47) Sharon Landhan                                 Age: 44                                   San Diego, CA

(D48) Gabriel Askay                                      Age: 44                                   San Diego, CA

(D49) Patrick Lane                                         Age: 57                                   San Diego, CA

(D50) Kevin Tobin                                          Age: 65                                   San Diego, CA

(D51) James Ellerbe                                        Age: 68                                   San Diego, CA

(D52) Hope Stoneking                                    Age: 35                                   San Diego, CA

(D53) Tasha Almanza                                     Age: 42                                   San Diego, CA

*(D54) Jason Ferguson                                   Age: 48                                   San Diego, CA

(D55) Kelle Ferguson                                     Age: 52                                   San Diego, CA

*(D56) Roger Desroche                                  Age: 74                                   San Diego, CA

(D57) Steven Brandt                                      Age: 57                                   San Diego, CA

(D58) Esteban Gastelum-Sanchez                  Age: 42                                   San Diego, CA

(D59) Tara Scroggins                                     Age: 45                                   San Diego, CA

(D60) Debbie Hill                                           Age: 59                                   San Diego, CA

 

*Fugitives

 

SUMMARY OF CHARGES

 

Conspiracy to Distribute Methamphetamine (21 U.S.C. §§ 841(a)(1) and 846)

Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(1) and (h))

Possession with Intent to Distribute Methamphetamine (21 U.S.C., § 841(a)(1))

Importation of Methamphetamine (21 U.S.C. §§ 952 and 960)

Felon in Possession of a Firearm (18 U.S.C. § 922(g)(1)

 

Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release. For the firearms charges, term of custody up to 10 years imprisonment, and a $250,000 fine.

 

AGENCIES

 

Drug Enforcement Administration, Narcotics Task Force

Internal Revenue Service - Criminal Investigation

United States Postal Inspection Service

San Diego County Sheriff’s Department

San Diego Police Department

Escondido Police Department

United States Border Patrol

San Diego County Probation Office

United States Marshals Service

Homeland Security Investigations

Bureau of Alcohol, Tobacco, Firearms & Explosives

Federal Bureau of Prisons

San Diego County District Attorney’s Office

Department of Justice, Organized Crime Drug Enforcement Task Forces

Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit

U.S. Attorney’s Office for the District of Massachusetts

U.S. Attorney’s Office for the Southern District of New York

U.S. Attorney’s Office for the Eastern District of Kentucky

U.S. Attorney’s Office for the Western District of Texas

U.S. Attorney’s Office for the Central District of California

U.S. Attorney’s Office for the District of Minnesota

U.S. Attorney’s Office for the Northern District of Iowa

U.S. Attorney’s Office for the Western District of Michigan

U.S. Attorney’s Office for the Eastern District of Michigan