Author: MIL-OSI Publisher

Source: US FBI

SANTA ANA, California – An Orange County man and South Los Angeles man were sentenced today to federal prison for supplying fentanyl-laced pills to a drug trafficking ring that sold these drugs to more than 1,000 customers nationwide via the dark web.

Adan Ruiz, 27, of Garden Grove, was sentenced by United States District Judge David O. Carter to 215 months (17 years, 11 months) in federal prison. Judge Carter separately sentenced Omar Navia, 39, of South Los Angeles to 180 months (15 years) in federal prison.

In imposing the sentences, Judge Carter at today’s hearings called this case “the most sophisticated fentanyl distribution ring that this court has seen.” 

Navia pleaded guilty on April 29 to one count of conspiracy to distribute controlled substances. Ruiz pleaded guilty on June 3 to one count of conspiracy to distribute controlled substances and one count of distribution of fentanyl.

Both defendants have been in federal custody since November 2023.

Navia and Ruiz admitted in their plea agreements that, from at least August 2021 to December 2022, they supplied fentanyl-laced pills to Michael Ta, 26, of Westminster, and Rajiv Srinivasan, 38, of Houston, who used the darknet and encrypted messaging applications to sell more than 120,000 fentanyl-laced pills and other drugs to more than 1,000 customers across the country, causing several fatal overdoses in the process. Navia further admitted to supplying methamphetamine to Ta and Srinivasan’s drug trafficking operation.

Srinivasan operated the account “redlightlabs” on multiple darknet marketplaces, including the site “Dark0de.” Srinivasan and Ta used the redlightlabs account to advertise and sell counterfeit M30 oxycodone pills containing fentanyl and other illicit drugs.

Srinivasan also used the encrypted messaging application Wickr to communicate with and sell drugs to customers. Srinivasan received virtual currency as payment for the drugs and then routed that virtual currency through cryptocurrency exchanges.

Ta communicated with Srinivasan about drug orders, obtained fentanyl-laced pills and methamphetamine from sources of supply, stored those drugs in his residence, and mailed out packages with drugs to customers who had ordered them from Srinivasan on the “redlightlabs” account.

From at least February 2022 to November 2022, Srinivasan and Ta engaged in at least 3,800 drug deals to approximately 1,400 customers in all 50 U.S. states, totaling more than 123,000 fentanyl-laced M30 pills, more than 9 kilograms (20 pounds) of methamphetamine, nearly 300 grams of “China white” (fentanyl powder) and black tar heroin, and 27 grams of cocaine.

Ta and Srinivasan admitted in their plea agreements to causing the fentanyl overdose deaths of three victims. Both defendants further admitted to distributing fentanyl-laced pills to two additional victims, both of whom suffered fatal drug overdoses shortly after they received the pills from Ta and Srinivasan.

Ta pleaded guilty in August 2023 to one count of conspiracy to distribute controlled substances and is serving a prison sentence of 260 months (21 years and eight months). Srinivasan pleaded guilty in June 2023 to the same charge and to one count of distributing fentanyl resulting in death and is serving a prison sentence of 235 months (19 years and seven months).

The FBI investigated this matter. The United States Postal Inspection Service, and the United States Attorney’s Office for the Southern District of Texas provided substantial assistance.

The investigation in this matter was conducted under the auspices of the FBI-led Joint Criminal Opioid Darknet Enforcement Team (JCODE), which targets darknet vendors by using sophisticated, high-tech techniques to identify drug traffickers who wrongly believe the dark web allows them to engage in criminal conduct with anonymity. Since its inception in 2018, JCODE investigations have resulted in the arrest of more than 300 darknet drug traffickers, as well as the seizure of more than $42 million in drug-tainted proceeds, over 800 kilograms of narcotics, and approximately 145 firearms.

The Northern Colorado Drug Task Force (NCDTF) also helped investigate this matter. NCDTF works to protect the community by identifying, investigating, and impacting drug-related crime in Larimer County. Participating agencies who make this effort possible include Fort Collins Police Services, Larimer County Sheriff’s Office, Loveland Police Department, Windsor Police Department, the Eighth Judicial District Attorney’s Office, and Colorado Adult Parole. The Drug Enforcement Administration’s Fayetteville Resident Agency also assisted during the investigation.

Assistant United States Attorney Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.

Source: US FBI

LOS ANGELES – An internationally known art dealer was sentenced today to 24 months in federal prison for embezzling from the bankruptcy estate of Ace Gallery Los Angeles, an art gallery located in Beverly Hills and Los Angeles, while acting as the estate’s trustee and custodian.     

Douglas J. Chrismas, 80, of the Mid-Wilshire area of Los Angeles, was sentenced by United States District Judge Mark C. Scarsi, who also ordered him to pay $12,809,192 in restitution.

At the conclusion of a four-day trial in May 2024, a jury found Chrismas guilty of three counts of embezzlement against a bankruptcy estate.

“Instead of performing his fiduciary duty and properly managing the gallery’s bankruptcy estate, this defendant chose to use funds that belonged to the creditors of the gallery to make them whole, but for his dream of an art museum that never came to be,” said United States Attorney Martin Estrada. “Today’s sentence provides a just punishment for these crimes, which were brazenly undertaken by a thief who gamed a system designed to protect those in financial desperation.”

Chrismas was the president and CEO of Art and Architecture Books of the 21st Century, which did business as Ace Gallery and had offices located in the Miracle Mile area of Los Angeles as well as in Beverly Hills.

In February 2013, Ace Gallery filed a Chapter 11 petition in federal bankruptcy court in Los Angeles and continued to operate while in bankruptcy with Chrismas acting as its fiduciary and trustee. 

In late March and early April of 2016, Chrismas embezzled approximately $264,595 that belonged to the Ace Gallery bankruptcy estate, including a $50,000 check that Chrismas signed, was drawn against the estate, and was paid to Ace Museum, a separate non-profit corporation that Chrismas owned and controlled.

Chrismas also embezzled $100,000 owed to Ace Gallery by a third party for the purchase of artwork. Instead, the funds were paid – at his direction – to Ace Museum. Finally, Chrismas embezzled approximately $114,595 owed to the gallery by a third party that purchased artwork, but which Chrismas instead had paid to Ace Museum’s landlord to keep current with its $225,000 monthly rent.

Chrismas funneled money from the bankrupt Ace Gallery for over three years, until April 2016, when the bankruptcy court appointed an independent trustee to run Ace Gallery’s bankruptcy estate and Chrismas was removed.

The FBI’s Art Crime Team investigated this matter.

Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section prosecuted this case.

Source: US FBI

FAYETTEVILLE – Two northwest Arkansas men were sentenced to federal prison this week for child exploitation offenses.  The Honorable Timothy L. Brooks presided over the sentencing hearings, which was held in the U.S. District Court in Fayetteville.

On January 10, 2024, Earnest Dean Easley, age 72, of Gravette, Arkansas, was sentenced to 168 months without the possibility of parole after being convicted of transporting child pornography through the internet. According to court documents, on June 28, 2022, an FBI taskforce officer received information from the National Center for Missing and Exploited Children indicating that Easley had sent an email containing images of child sexual abuse material . Officers later served a search warrant at Easley’s residence and discovered additional child pornography, some of which appeared to have been self-produced.  Easley later admitted that years prior, while living in Texas, he had taken lascivious photographs of a minor female relative while she was sleeping.

On January 11, 2024, Lyle Kenneth Smith, age 53, of Gentry, Arkansas, was sentenced to 74 months in federal prison without the possibility for parole after being convicted of receiving child pornography.  In August of 2021, FBI taskforce officers were conducting a nationwide investigation into Freenet, an online peer-to-peer platform.  During the investigation a task force officer discovered that Smith was actively searching for child pornography through Freenet.  Officers executed a search warrant at Smith’s residence and discovered multiple devices containing child pornography and forensic evidence that Smith had downloaded illegal content from Freenet.  Smith later admitted to having collected child pornography for years, using Freenet and other online sources.

U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

The Federal Bureau of Investigation, Benton County Sheriff’s Office, and Bentonville Police Department investigated the cases.

Assistant U.S. Attorney Devon Still prosecuted these cases on behalf of the United States.

These cases were prosecuted 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.

Source: US FBI

     LITTLE ROCK—A man who has served as a county judge, prosecutor, and criminal defense attorney was sentenced to federal prison for possession of child pornography. On Wednesday, United States District Court Judge Billy Roy Wilson sentenced Daniel Arthur Stewart, 54, of Fort Smith, to 84 months in prison with 10 years of supervised release to follow. There is no parole in the federal system.

     Stewart was originally indicted on January 8, 2019, on charges of attempting to entice a child to engage in sexual activity following an investigation into conduct that occurred between February 1, 2016, and March 19, 2016. On June 8, 2023, Stewart pleaded guilty to a superseding information that charged him with possession of child pornography related to the conduct.

     The investigation revealed that on February 1, 2016, a Faulkner County police officer with an undercover profile answered an ad posted on Craigslist. The ad was searching for contact with a “young guy” or “son.” The undercover profile was that of a 42-year-old male with a 13-year-old son. The undercover officer responded to the ad by inquiring if the poster was interested in “family play,” a term commonly used to describe sexual contact between family combinations such as father/son or mother/daughter. When the poster responded positively, the communication then continued on Kik, which is an online messaging platform. The poster’s contact photo was identified as Stewart. A sexually explicit conversation followed that led Stewart indicating he would reserve a hotel room in Fort Smith for the purpose of Stewart having sex with the 13-year-old on March 19, 2016.

     When Stewart entered the lobby of the Hampton Inn, he was taken into custody. Following Stewart’s arrest, law enforcement executed a search warrant at his residence and seized numerous electronic devices. On those devices, law enforcement found videos containing visual depictions of sexually explicit conduct involving minors, including oral sex and anal penetration between minors and between minors and adults.

     Stewart previously worked in the Sebastian County prosecutor’s office before serving as Sebastian County District Court Judge in Fort Smith. Following his time on the bench Stewart also worked as a public defender for Crawford County and more recently for Sebastian County.

     The case was investigated by the FBI and Faulkner County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Jordan Crews. 

# # #

This news release, as well as additional information about the office of the

United States Attorney for the Eastern District of Arkansas, is available online at

https://www.justice.gov/edar

Twitter:

@EDARNEWS

Source: US FBI

HOT SPRINGS, AR – Derek Scott Finkbeiner, age 46, was arrested on November 2, 2023, by the FBI. He is charged in a Criminal Complaint with a single count of Obstruction of Justice. Finkbeiner is currently serving as the elected County Sheriff in Hot Spring County, Arkansas.  A Grand Jury will later hear evidence related to this investigation and determine whether additional criminal charges will be filed against Finkbeiner. If convicted of the charge of Obstruction of Justice, Finkbeiner faces a maximum penalty of twenty years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

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

Assistant U.S. Attorney’s Bryan Achorn, Trent Daniels and Criminal Chief Kim Harris are prosecuting the case.

A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov

Source: US FBI

HOT SPRINGS, AR. – A Hot Springs man was sentenced to life in prison yesterday and his co-defendant was sentenced today to 15 years in prison for the kidnapping of a minor female in April 2022. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings for the United States District Court in Hot Springs.

According to court documents, Samuel Wayne Bolling Jr., age 40 and Dayla Diane Ferrer, age 21, entered into an agreement to kidnap a minor female in an attempt to extort money from her relatives. On April 18, 2022, Ferrer approached the minor female in the downtown area of Hot Springs, Arkansas and requested her assistance. The minor entered Ferrer’s vehicle where she was immediately attacked and restrained by Bolling. Contact was made with the minor’s family and Bolling demanded payment of $10,000 in exchange for her safe return. Bolling and Ferrer held the minor overnight before releasing her the next day.

U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

Hot Springs Police Department, FBI, Arkansas State Police, Garland County Sheriff’s Office, Hot Springs County Sherriff’s Office, and the Atoka (TN) Police Department investigated the case.

Assistant U.S. Attorneys Bryan Achorn and Carly Marshall prosecuted the case.

Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov

Source: US FBI

TEXARKANA, ARKANSAS – A Hope, Arkansas, man was sentenced on October 19, 2023, to 300 months in federal prison, with credit for time served on a related state court conviction, for using the internet to entice a minor to engage in sexual activity.  The Honorable Judge Susan O. Hickey, Chief United States District Judge, announced the sentence.  There is no parole in the federal system.

According to court documents, Jonathan Tyrell Haney, age 36, used the online social media service “Badoo” to entice a 12-year-old Ashley County girl to meet him for sexual intercourse.  The victim disappeared from her mother’s home in April 2021, reappearing alone the next day at a Columbia County gas station.  Haney’s DNA was later found on the victim’s clothing.  Haney was apprehended near Sulphur Springs, Texas, the same day the victim was found, after learning that Arkansas authorities were looking for him.

Upon completing his prison sentence, Haney will be supervised by the United States Probation Office for the next 20 years.  He is also required to register as a sex offender.

U.S. Attorney David Clay Fowlkes, of the Western District of Arkansas, made the announcement.

The Crossett, Arkansas, Police Department, Magnolia, Arkansas, Police Department, Hopkins County, Texas, Sheriff’s Office, and the Federal Bureau of Investigation investigated the case.

Assistant U.S. Attorney Graham Jones prosecuted the case for the United States.

This case was prosecuted 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.

Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov. 

Source: US FBI

TEXARKANA, ARKANSAS – A Texas man was sentenced yesterday to 120 months in federal prison for distributing methamphetamine in Texarkana, Arkansas.  The Honorable Judge Susan O. Hickey, Chief United States District Judge, presided over the case.  There is no parole in the federal system.

According to court documents, Antonio Griffin, 40, of Wake Village, Texas, pleaded guilty in February 2023 to selling almost four ounces of pure methamphetamine to a confidential informant operating under the supervision of the Federal Bureau of Investigation and the Bi-State Narcotics Task Force, in Texarkana, Arkansas.

U.S. Attorney David Clay Fowlkes, of the Western District of Arkansas, made the announcement.

The Bi-State Narcotics Task Force, the Texarkana, Arkansas, Police Department, and the FBI investigated the case.

Assistant U.S. Attorney Graham Jones prosecuted the case for the United States.

Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov

Source: US FBI

Source: US FBI

HOT SPRINGS – An Indiana man was sentenced Friday, September 1, 2023, to 30 years in prison for violating an order of protection issued out of Lake County, Indiana by taking a minor listed in the order of protection across state lines, as well as transporting images of child pornography across state lines. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.

According to court documents, Nathan Martin Curry-Fishtorn, age 26, of Saint John, Indiana was arrested in Arkansas in August 2019. On August 18, 2019, the Little Rock FBI Office was contacted by the FBI Indianapolis Field Office regarding a missing minor last seen two days before in Crown Point, Indiana. Law enforcement’s investigation led them to a residence in Malvern, Arkansas, where Curry-Fishtorn and the minor were located.  Court documents show Curry-Fishtorn had previously been served an order of protection out of his home state of Indiana prohibiting him from having any contact with the minor. The minor told police Curry-Fishtorn had a gun during the twelve-hour drive and stated, “I have a gun, don’t try anything.” Also located in the vehicle was a SIM card from Curry-Fishtorn’s cellular phone. Forensic examination of the SIM card revealed images of child pornography. 

U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

The Federal Bureau of Investigations, the Hot Springs County Sheriff’s Department and the Lake County Sheriff’s Department, Crown Point, Indiana investigated the case.

Assistant U.S. Attorney Carly Marshall prosecuted the case.

This case was prosecuted 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.

Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov