Leader of Federal Pandemic Fraud Unemployment Scheme Sentenced

Source: US FBI

Brown Was One of 17 Defendants to Steal $341,205 Combined in Pandemic Relief Money

ABINGDON, Va. – Josef Ludwig Brown, one of the leaders of a 17 defendant conspiracy to defraud the United States, commit program fraud, and commit mail fraud in connection with a scheme to file fraudulent claims for pandemic unemployment benefits was sentenced last week to 35 months in federal prison.

Brown previously pled guilty to one count of conspiring to defraud the United States in connection with emergency benefits. Additionally, Brown was ordered to pay $119,660 in restitution.

Previously sentenced as part of the conspiracy were: Christopher Webb, 20 months; Russell Stiltner, 24 months; Jessica  Lester, 19 months; Cara Camille Bailey, 19 months; Justin Meadows, 18 months; Terrence Vilacha, 18 months; Joseph Hass, 27 months; Brian Addair, 24 months; and Stephanie Amber Barton, Clinton Michael Altizer, Jeramy Blake Farmer,  and Hayleigh McKenzie Wolfe were each sentenced to 12 months and 1 day.

Jonathan Webb, the individual charged with recruiting others to file fraudulent claims, mostly inmates at local jails, was sentenced to 48 months was ordered to pay $150,218 in restitution.

All defendants were also ordered to pay restitution to the Virginia Employment Commission for the amount of their individual fraudulent claims.

According to court documents, between March 2020 and September 2021, Josef Brown, Jonathan Webb, and Crystal Shaw developed a scheme to file fraudulent claims and recertifications for pandemic unemployment befits via the Virginia Employment Commission website. The scheme involved the collection of personal identification information (PII) of inmates housed at SWVRJA-Haysi and Abingdon, as well as personal friends and acquaintances of Brown, Webb, and Shaw. The conspirators used that information to file fraudulent claims and recertifications for pandemic unemployment benefits for incarcerated individuals and others who were ineligible for the benefits.

In all, the defendants stole $341,205 in pandemic relief to which they were not entitled.

As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by the Special Inspector General for Pandemic Recovery. The PRAC’s 20 member Inspectors General were charged with identifying major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. According to the United States Department of Labor, Virginia paid approximately $1.1 billion in fraudulent unemployment claims between April 1, 2020, and March 31, 2021.

Acting United States Attorney Zachary T. Lee, Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, and Virginia Attorney General Jason Miyares announced the sentences.

Agencies that assisted with this investigation included the Dickenson County Sheriff’s Office, the Southwest Virginia Regional Jail Authority, the FBI, U.S. Department of Labor, and the Virginia Employment Commission.

Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Danielle Stone are prosecuting the case for the United States.

Three New Orleans Men Convicted for 2017 Edna Karr High School Double Homicide

Source: US FBI

Correction:  Acting U.S. Attorney Simpson praised the work of the Federal Bureau of Investigation, especially the New Orleans Gang Task Force, the New Orleans Police Department, Sulphur Police Department, Jefferson Parish Sheriff’s Office, Louisiana State Police, and the Jackson County Sheriff’s Office in investigating this matter.  Assistant United States Attorneys Elizabeth Privitera, David Haller and Sarah Dawkins are in charge of the prosecution.

NEW ORLEANS – Acting U.S. Attorney Michael Simpson announced that TERRAN WILLIAMS, a/k/a “Funky” (“WILLIAMS”), TYRONE BOVIA, a/k/a “Sixx” (“BOVIA “), and JAVONTA DOLEMAN, a/k/a “Dutt” (“DOLEMAN “), all from New Orleans, were found guilty on April 21, 2025 after a two-week jury trial before United States District Judge Jane Triche Milazzo.  They were found guilty of various violations, including RICO conspiracy, drug trafficking conspiracy, firearms conspiracy and Violent Crime in Aid of Racketeering (VCAR) murder.

All three defendants were members of the Byrd Gang, which operated primarily out of the former Magnolia Housing Development, but additionally had ties to the Westbank.  Its members daily distributed drugs, including heroin, fentanyl, crack cocaine and marijuana, and always possessed firearms. WILLIAMS, BOVIA and DOLEMAN participated in numerous drug trafficking activities and violent crimes and acted as gunmen for the Byrd Gang.

On January 31, 2017, Lawrence Williams, IV, and Wynston Jackson, a/k/a “Ghost,” were shot and killed by the three defendants shortly after leaving an Edna Karr High School basketball game.  Jackson was a member of the rival group, Ghost Gang, while Williams was an associate. Byrd Gang member, Briyan Love, attended the basketball game, and when she saw Jackson enter the auditorium, she communicated with Terran WILLIAMS and informed him that Jackson was at the game. WILLIAMS, BOVIA and DOLEMAN, and other Byrd Gang members and associates, drove across the river to Edna Karr School to kill rival Jackson.

When Williams and Jackson left the basketball game and sat in a car in front of the school,  WILLIAMS, BOVIA and DOLEMAN approached the car with two rifles and a handgun and unloaded a torrent of bullets.  Jackson attempted to return fire with his nine-millimeter handgun but was shot and killed on the scene.  Williams, who was also shot, later died at the hospital.

TYRONE BOVIA was also convicted for his role in another shooting that he committed in May 2017 at the Bernmas Apartments, where M.I., another Ghost Gang member, resided and was the intended target. BOVIA’S companion and fellow Byrd Gang member, Terrence Augustine, was shot and killed during this incident by return fire.  Byrd Gang member, James Alexander, has additionally pled guilty to this shooting.

During the trial, evidence was presented that showed back-and-forth retaliatory shootings between the Byrd Gang and the Ghost Gang, much of which was fueled by social media posts, rap music and videos.  Numerous individuals have been shot and killed on both sides, and many innocent bystanders have likewise been shot during these inner-city rivalries.

During the investigation, dozens of firearms, most with large-capacity magazines, as well as hundreds of rounds of ammunition, have been recovered from Byrd Gang members, including from the three defendants.   

WILLIAMS, BOVIA and DOLEMAN all face a mandatory life sentence for the VCAR murders.  Sentencing in this matter will be held before Judge Milazzo on July 30, 2025.

Acting U.S. Attorney Simpson praised the work of the Federal Bureau of Investigation, especially the New Orleans Gang Task Force, and the New Orleans Police Department in investigating this matter.  Assistant United States Attorneys Elizabeth Privitera, David Haller and Sarah Dawkins are in charge of the prosecution. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

Norteño Gang Member Who Fled Days Before 2024 Sentencing Date Sentenced to Seven Years in Federal Prison for Illegal Firearms Possession

Source: US FBI

SAN FRANCISCO – Nicholas Addleman was sentenced today to 84 months in federal prison for unlawful possession of a firearm.  U.S. District Judge James Donato handed down the sentence.

According to court documents, Addleman, 38, of Vallejo, Calif., a longtime member of the San Francisco Mission District Norteños, previously served five years in state custody following convictions for assault with a deadly weapon and shooting at an inhabited dwelling.  Addleman was released on parole in July 2022.  A few months after his release, on Oct. 14, 2022, police officers conducted a parole search of Addleman’s vehicle and recovered two Glock firearms, including one with a loaded extended magazine, in a hidden compartment behind the center console.  Addleman admitted to officers that the firearms were his, and his DNA was found on the grip of one of the guns.  

Addleman was charged by complaint with being a felon in possession of a firearm in violation of 18 U.S.C. § 922(g) in November 2022.  He pleaded guilty to the offense in September 2023, and was originally scheduled to be sentenced on his federal firearms conviction in February 2024.  Days before the sentencing, Addleman absconded from pretrial supervision, and the Court issued a bench warrant for his arrest.  At the time of his arrest in December 2024, a search of his Vallejo residence found multiple assault rifles, large capacity magazines, and suspected gun silencers.

In addition to the prison term, Judge Donato ordered Addleman to serve three years of supervised release and to forfeit the firearms and ammunition seized by police.  

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone.  In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This prosecution was brought by the Violent Crime Strike Force and 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. Attorney Leif Dautch prosecuted this case, with the assistance of Nina Burney.  The prosecution is the result of an investigation by the FBI, the San Francisco Police Department, and Vallejo Police Department.  
 

Hutchinson Man Sentenced for Child Pornography Distribution

Source: US FBI

WICHITA, KAN. – A Kansas man was sentenced to 151 months in prison for distributing child exploitation sexual abuse materials. 

According to court documents, Zachary Charles Hiskey, 27, of Hutchinson pleaded guilty to one count of distribution of child pornography. 

In June 2021, Hiskey used his account on a messaging app called Kik to share videos depicting adult males engaged in sexually explicit activities with prepubescent children. Kik detected the videos and reported the account to law enforcement through a cyber tipline. This led to the discovery of other child exploitation sexual abuse materials connected to Hiskey’s email account and to IP logs at his home in Hutchinson. 

While executing a search warrant at Hiskey’s home, investigators found an electronic device with an Internet browser thumbnail of recently viewed child exploitation sexual abuse materials. A forensic examination revealed the Kik account in question had been installed and then deleted on his cell phone.

The Federal Bureau of Investigation (FBI) investigated the case.

Assistant U.S. Attorney Jason Hart prosecuted the case.

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

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FBI Director Christopher Wray Speaks at 2023 mWISE Cybersecurity Conference

Source: US FBI

The goal of mWISE is to bring together the global community of security practitioners to share best practices on strengthening defenses and developing powerful and sophisticated cyber solutions.

Wray emphasized the importance of collaboration, referencing successful cases in fighting cybercrimes thanks to strong partnerships, including the takedown of the malware and botnet known as Qakbot, and the disruption of the Hive ransomware group. He called for further partnership to focus efforts on defending against cybercrimes from China. 

Multiple cyber programs pose international threats, including those based out of Russia, Iran, and North Korea, but the FBI has warned that China is a primary concern. For years, the Chinese government has been stealing American intellectual property and data.  

“China already has a bigger hacking program than every other major nation combined,” said Wray. “With AI, China is now in position to try to close the cycle—to use the fruits of their widespread hacking to power, with AI, even more powerful hacking efforts. In fact, if each one of the FBI’s cyber agents and intelligence analysts focused on China exclusively, Chinese hackers would still outnumber our cyber personnel by at least 50 to 1.” 

Wray concluded his remarks with a call to action to strengthening public sector relationships with the FBI so if a crisis arises, all parties will be best situated to respond.  

“My request is not just that you make an incident response plan, but that you make us at the FBI part of that incident response plan,” said Wray. “Give our folks a call today and build a relationship with your local FBI field office now.”

Emergency Preparedness Exercise Tests Response to Radiological Attack

Source: US FBI

Titan Shield participants are members of the Weapons of Mass Destruction Strategic Group (WMDSG), a crisis action team led by the FBI that brings federal agencies together to support information exchange and to deconflict WMD counterterrorism and law enforcement operations. 

The FBI, along with the U.S. Department of Homeland Security’s Countering WMD Office, led this year’s Titan Shield, developing the scenario and timeline of events, reviewing exercise objectives, organizing logistics and tools, and debriefing and evaluating the results at the exercise’s conclusion. The in-depth training requires a year-long planning cycle with interagency stakeholders who meet several times throughout the year to provide input. Each iteration of the exercise focuses on one or more WMD modalities—either chemical, biological, radiological, or nuclear—but the scenario always involves terrorism. 

“Over the past four years, the FBI Titan Shield exercise has been the principal mechanism to examine and validate the planning, collaboration, and decisive actions necessary at the strategic and tactical levels,” said, Sean Hearns, training branch chief, Preparedness Division, Countering Weapons of Mass Destruction Office, U.S. Department of Homeland Security. 

“The FBI WMDSG provides a structure to assess residual risk, while prioritizing federal interagency response capabilities,” he continued. “It is through this enhanced process that the WMDSG equips senior leaders with critical information to make informed decisions during a potential WMD crisis. Through Titan Shield, the Department of Homeland Security has enhanced its networks and fostered the relationships necessary to shape preparedness and response activities.” 

This year’s Titan Shield scenario presented a terrorist cell that stole radiological material and smuggled it into the United States with the intent to carry out attacks against sports stadiums using drones. During the exercise, WMDSG developed threat profiles and evaluated courses of action amid events rapidly unfolding in real-time.

Participants addressed various questions such as: What are the properties of the radioactive material and its effects on people and their surroundings? Which groups are best trained and equipped to appropriately respond? Do people need to be evacuated?  

“It is difficult to overstate the importance of what we are all gathered for this week,” said FBI Deputy Director Paul Abbate, who kicked off the training exercise. “If the United States was to encounter a complex WMD threat or incident, the safety of the nation would rest on our shoulders. Titan Shield presents an invaluable opportunity for all of us to practice our roles and responsibilities in response to such a threat.” 

Streamlining communications between senior decision makers, as well as outreach to foreign, state, local, tribal, and territorial officials, were additional factors WMDSG needed to consider. They also looked at strategies for crafting public messaging and determining how to disseminate information.  

At the conclusion of the exercise series, participants debriefed on what worked best and how they could improve future trainings. 

“Titan Shield helps us find ways to build on our successes and lessons learned to improve our coordination effectiveness and to become even more connected across all of our departments and agencies,” said Abbate. “The collaboration made possible by the exercise is a testament to the resilience of our partnerships and to our shared commitment to carrying out our responsibilities to the American people.” 

Director Wray Discusses National Security Threats at International Spy Museum Event

Source: US FBI

Among the biggest threats Director Wray emphasized at the event is the counterintelligence threat from the Chinese Communist Party. “I’ve been very vocal since early in my tenure that there is no country—underline no country—that represents a broader, more severe counterintelligence threat to the United States than the People’s Republic of China,” Director Wray said.

Key to the FBI’s ability to continue to keep Americans safe from these threats, including terrorism, espionage, and cyber attacks, Director Wray said, is renewal of Section 702 of the Foreign Intelligence Surveillance Act (FISA).

“702 authority is vital, absolutely vital—not important, not nice-to-have—vital,” Director Wray said, explaining that Section 702 is authority that allows the Intelligence Community to conduct targeted surveillance of non-U.S. persons located abroad in national security investigations.

The government uses the information collected under Section 702 to protect the United States and its allies from hostile foreign adversaries, including terrorists, spies, and malicious foreign nation-state cyber actors.

Tornado Cash Co-Founders Accused of Helping Cybercriminals Launder Stolen Crypto

Source: US FBI

Clients of Tornado Cash included the Lazarus Group—a Democratic People’s Republic of Korea-sponsored cybercriminal organization

Two men who helped create a service that blurs cryptocurrency transaction histories are facing federal charges after they allegedly conspired to launder money for criminal actors, violate U.S. government sanctions, and operate an unlicensed money transmitting business.

Washington state resident Roman Storm and Russian national Roman Semenov, two founders of the cryptocurrency mixer Tornado Cash, stand accused of helping move over $1 billion in virtual currency for criminal actors.

These clients included the Lazarus Group—a Democratic People’s Republic of Korea-sponsored cybercriminal organization sanctioned by the U.S. Department of the Treasury in 2019.

“The charges in the indictment arise from the defendants’ alleged creation, operation, and promotion of Tornado Cash, a cryptocurrency mixer that facilitated more than $1 billion in money laundering transactions and laundered hundreds of millions of dollars for the Lazarus Group,” the Justice Department wrote in an August 23 press release. Investigative efforts by the FBI New York Field Office and IRS-Criminal Investigation made the indictment possible.

According to the recently unsealed indictment, the duo had full knowledge that bad actors were using their services—and, consequently, understood they were violating sanctions—but decided to turn a blind eye to the money laundering.

Whenever someone carries out a cryptocurrency transaction, proof of that transaction is encoded into the currency itself. This digital ledger, known as the blockchain, lets crypto users verify the legitimacy—or lack thereof—of transactions by viewing a record of the cryptocurrency wallets that virtual tokens originated from and moved to. However, the blockchain doesn’t name the owners of the cryptocurrency wallets involved in transactions.

Cryptocurrency mixers like Tornado Cash further enhance the level of anonymity by muddying these transaction histories.

To better understand the way a cryptocurrency mixer works, imagine a bank that’s open 24/7. When you use the bank, instead of getting an account of your own, you’re able to make a deposit into one massive, shared account.  

Because your money isn’t kept separately from everyone else’s, when you deposit funds, you receive a code that can be used to get it back out later. You can keep that code to yourself or share it with someone you know so that they can pick up the money instead. The choice is yours, but, in either case, the transaction can be carried out anonymously.   

The bank tracks how much money enters and leaves the shared account to ensure that no one’s funds get stolen—because the bank would be liable. But it doesn’t track who put in or removed money from the shared account, when they did so, or why.  

This is a dramatized example of how a law-abiding citizen could theoretically use a cryptocurrency mixer—which acts as a shared storage unit for virtual currency—to move their tokens in an anonymous, decentralized way.   

“It kind of breaks that chain in the transaction history, which is really how you trace cryptocurrency within the blockchain as you see how it moves from wallet to wallet to wallet,” explained Assistant Special Agent in Charge Paul Roberts, who leads the FBI New York Field Office’s Complex Financial Crimes Branch.

Know Your Customer (KYC) and Bank Secrecy Act (or BSA) rules enforced by the Treasury Department’s Financial Crimes Enforcement Network require that cryptocurrency mixers know who exactly is using their services and how, Roberts noted. He likened these rules to the identification requirements and mandatory forms associated with opening a new bank account.

However, Tornado Cash ignored these rules, and the company’s posture allowed criminal actors and organizations like the Lazarus Group to launder money through the service.

“Tornado Cash should have been registered as a money services business and should have been requiring people who are using their service to register those forms,” Roberts said. A criminal syndicate wouldn’t likely admit to opening an account with nefarious intentions, but required paperwork could have at least raised a red flag about the account holder’s identity, Roberts added. And, in theory, Storm and Semenov could have stopped the money laundering before it started.

To further complicate matters, even though the Lazarus Group wasn’t required to complete paperwork to use Tornado Cash, Storm and Semenov still knew they were using their service—and allowed them to do so.

“[Storm and Semenov] implemented a change in the service so that they could make a public announcement that they were compliant with sanctions, but in their private chats, they agreed that this change would be ineffective,” the Justice Department wrote. “They then continued to operate the Tornado Cash service and facilitate hundreds of millions of dollars in further sanctions-violating transactions, helping the Lazarus Group to transfer criminal proceeds from a cryptocurrency wallet that had been designated by the Office of Foreign Assets Control as blocked property.”

These actions collectively led to their indictment on charges related to money laundering, defying sanctions, and operating an unlicensed company.

FBI Director Christopher Wray said news of the indictment “should remind criminal organizations everywhere in the world that they are neither untraceable nor anonymous.”

FBI, Partners Dismantle Qakbot Infrastructure in Multinational Cyber Takedown

Source: US FBI

On August 29, the FBI and the Justice Department announced a multinational operation to disrupt and dismantle the malware and botnet known as Qakbot.   
 
The action, which took place in the U.S., France, Germany, the Netherlands, Romania, Latvia, and the United Kingdom, represents one of the largest U.S.-led disruptions of a botnet infrastructure used by cybercriminals to commit ransomware, financial fraud, and other cyber-enabled criminal activity.  
 
“The FBI neutralized this far-reaching criminal supply chain, cutting it off at the knees,” said FBI Director Christopher Wray. “The victims ranged from financial institutions on the East Coast to a critical infrastructure government contractor in the Midwest to a medical device manufacturer on the West Coast.”

Safe Online Surfing Launching for 2023-2024 School Year

Source: US FBI

“The Safe Online Surfing program is a great way for teachers and families to prepare students for their journey through cyberspace,” said Ken Hoffman, who leads the FBI’s national community outreach program. “The interactive platform helps kids build a digital defense against predators and bullies while teaching them how to be responsible cyber citizens.” 

While taking the course, students guide a robot avatar through six thematic areas, answering true/false, multiple choice, and matching questions along the way. After completing all levels, students will take a final exam.  

Since the program’s launch in 2012, more than 1.6 million students have participated in the SOS challenge. 

The SOS website and its activities are open year-round, both at home and in the classroom. The challenge opens on September 1 and runs through May. Each month during this timeframe, the classes with the top exam scores nationwide will receive an FBI-SOS certificate and, when possible, receive a congratulatory visit from FBI personnel.  

To participate in the challenge, teachers must register their classes at sos.fbi.gov. Teachers manage their students’ participation in the program; the FBI does not collect or store any student information.

Learn more and register your class at sos.fbi.gov