Author: MIL-OSI Publisher

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Idaho Man Arrested on Felony and Misdemeanor Charges for Actions During January 6 Capitol Breach

Source: US FBI

            WASHINGTON – An Idaho man has been arrested on felony and misdemeanor charges for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

            Theo Hanson, 54, of Nampa, Idaho, is charged in a criminal complaint filed in the District of Columbia with felony offenses of obstruction of an official proceeding and civil disorder. In addition to the felonies, Hanson is charged with misdemeanor offenses of knowingly entering or remaining in any restricted building or grounds, disorderly conduct in a restricted area, and violent entry and disorderly conduct on Capitol grounds.

            Hanson was arrested on Thursday, Nov. 30, 2023, by the FBI in Nampa, Idaho and will make his initial appearance today in the District of Idaho. 

            According to court documents, Hanson traveled from his home, then in San Diego, to Washington, D.C., and was present inside the Capitol building and on the Capitol grounds on Jan. 6, 2021. Court documents say that Hanson was identified on CCTV footage illegally entering the Capitol via the Senate Wing Door at approximately 2:22 p.m. and is seen making his way toward the Crypt.  

            At about 2:30 p.m., Hanson was observed outside of the Crypt on the east side of the building. Moments earlier, law enforcement authorities sought to close a series of security doors to prevent rioters from gaining access to additional areas of the building; however, rioters used trash cans and chairs to both obstruct the gate and assault officers. In CCTV footage, Hanson is seen standing underneath one of these security doors, waving his hands back and forth to prevent it from closing.

            Court documents say at approximately 2:37 p.m., Hanson was observed near the East Rotunda Doors. When he arrived, the doors were closed; however, other rioters soon forced them open as Hanson watched and applauded. Hanson was then seen assisting other rioters illegally entering the building. 

            At about 2:42 p.m., while he stood inside the East Rotunda Doors, Hanson repeatedly obstructed efforts by law enforcement to close the doors, which would have prevented rioters from further accessing the building. CCTV footage depicts authorities repeatedly attempting to close the doors while Hanson uses his body to keep them open. At about 2:44 p.m., a police officer again sought to close one of the doors; however, Hanson was seen moving forward and pushing the door back with his hand. Again, at 3:09 p.m., officers sought to close the doors, but Hanson pushed them open with his body. 

            An officer then attempted to move Hanson out of the building; however, in response, Hanson is seen placing his hand against an interior wall and moving against the wall to prevent his removal. Hanson remained near the East Rotunda Doors until he exited the Capitol at about 3:33 p.m. 

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of California and the U.S. Attorney’s Office for the District of Idaho.

            This case is being investigated by the FBI’s Los Angeles, San Diego, and Washington Field Offices. Valuable assistance was provided by the FBI’s Salt Lake City Field Office, Boise Resident Agency, the Nampa Police Department, the U.S. Capitol Police, and the Metropolitan Police Department.

            In the 34 months since Jan. 6, 2021, more than 1,200 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 400 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

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

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Former Greene County Sheriff’s Lieutenant Pleads Guilty to Stealing FBI Money

Source: US FBI

      LITTLE ROCK—A former Green County Sheriff’s Lieutenant has pleaded guilty to stealing over $30,000 used in a ruse undercover drug operation. Allen Scott Pillow, 56, of Paragould, pleaded guilty today to one count of theft of government funds. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the Little Rock Field Office of the FBI, announced the guilty plea. Pillow entered his plea earlier today before United States District Judge Lee P. Rudofsky.

      After receiving information that former Lieutenant Pillow might be abusing his role with the Greene County Sheriff’s Office, FBI Special Agents and Task Force Officers conducted a ruse narcotics investigation and sought Pillow’s help with the investigation. On November 4, 2019, FBI parked a rental vehicle in a commercial parking lot in Paragould and staged a glass drug pipe in the vehicle along with a red backpack containing $76,000. The cash was divided into ten bundles of $7,600 each, and investigators recorded the serial numbers.

      After staging the vehicle, two FBI Task Force Officers contacted Pillow on his cell phone and asked him to respond to the scene. The officers relayed to Pillow that they began a narcotics investigation in Tennessee and now needed Pillow’s help as the target had traveled into Arkansas. Pillow traveled to the scene in his Sheriff’s Department vehicle, searched the staged rental vehicle, and recovered the glass pipe, backpack, and currency.

      Later that day, Pillow called the FBI officers and informed them that the backpack had contained $45,600, leading agents to believe Pillow had taken four bundles of $7,600 each, totaling $30,400 of stolen FBI funds. Agents obtained a search warrant for Pillow’s residence and found $2,300 in his possession and $27,820 in a safe in his attic. The serial numbers on the discovered currency matched the original FBI serial numbers. The remaining $280 in stolen funds was not located.

      “The vast majority of law enforcement officers are honorable men and women who put their lives on the line every day to preserve our liberty and safety,” United States Attorney Cody Hiland said. “On the very rare occasion that we encounter corruption within law enforcement, we will take every action necessary to root it out. Our office will hold accountable any officer who violates the public trust so that we may uphold the integrity of a profession that deserves our gratitude and respect.”

     “The appalling criminal actions of former Lt. Scott Pillow revealed his lack of integrity and greed,” said FBI Little Rock Special Agent in Charge Diane Upchurch. “Quite simply, he betrayed his brothers and sisters in law enforcement. Officers who are sworn to protect and serve are held to a higher standard, and FBI Little Rock will continue to uphold Arkansans’ trust in law enforcement.”

      Pillow was indicted in November 2019, and Judge Rudofsky will sentence Pillow at a later date. Theft of government funds is punishable by up to 10 years’ imprisonment, a fine of not more than $250,000, and not more than three years of supervised release. The case was investigated by the FBI and prosecuted by Assistant United States Attorney Erin O’Leary.

# # #

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

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Greensboro Clinic Owner is Sentenced to 52 Months in Prison for Defrauding Medicaid

Source: US FBI

CHARLOTTE, N.C. – Aljihad Shabazz, 45, of Kernersville, N.C., was sentenced today to 52 months in prison followed by two years of supervised release for his role in a scheme that defrauded the North Carolina Medicaid Program (Medicaid) of more than $4.7 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Frank D. Whitney also ordered Shabazz to pay $4,711,159.88 in restitution.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office (IRS-CI), and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Division (MID), join U.S. Attorney King in making today’s announcement.

According to court records and the sentencing hearing, Shabazz was the owner and operator of Reign & Inspirations, LLC (R&I), a clinic that provided outpatient behavioral services in Greensboro and surrounding areas. Between 2017 and 2020, Shabazz conspired with other individuals to carry out an extensive health care fraud scheme involving the fraudulent submissions of fake reimbursement claims to Medicaid, for services that were never provided to Medicaid beneficiaries. Court records show that Shabazz obtained the personal identifying information (PII) of Medicaid beneficiaries through community outreach programs, including football and mentoring programs, and misused the beneficiaries’ PII to create and submit hundreds of fraudulent reimbursement claims and to receive payment for services that were never in fact provided by R&I. Over the course of the scheme, Shabazz used the beneficiaries’ PII to submit more than 1,500 fraudulent reimbursement claims to Medicaid, some of which claimed that R&I provided services that exceeded 24 hours in a single day.

Court records show that the reimbursement payments made by Medicaid were deposited in bank accounts under Shabazz’s control. Shabazz used a portion of the fraudulent proceeds to pay kickbacks to his co-conspirators and to cover personal expenses, including to pay for personal travel, luxury items, and timeshares, and to make cash withdrawals.

On June 14, 2023, Shabazz pleaded guilty to health care fraud conspiracy and money laundering conspiracy. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

In announcing Shabazz’s sentence, Judge Whitney stated that, “There are serious consequences for stealing from government funded programs such as Medicaid and Medicare.”

The FBI in Charlotte, IRS-CI, and NCDOJ’s Medicaid Investigations Division investigated the case.

Assistant U.S. Attorneys Michael E. Savage and Special Assistant U.S. Attorney Kristina Fleisch with the U.S. Attorney’s Office in Charlotte prosecuted the case.

 

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Former Wayne County Sheriff’s Deputy Sentenced to More Than Six Years for Drug Trafficking Conspiracy and Role in Procurement Fraud Conspiracy

Source: US FBI

WILMINGTON, N.C. – Michael Kenneth Cox, age 49, was sentenced to 74 months followed by three years of supervised release, for his role in a drug trafficking conspiracy and a procurement mail and wire fraud conspiracy. On March 24, 2024, Cox, who was employed by the Wayne County Sheriff’s Office (WCSO) from 1996 until he retired as the head of the drug unit in 2018, pled guilty to one count of conspiracy to distribute and possess with intent to distribute quantities of cocaine, methamphetamine, oxycodone, and marijuana. Cox also pled guilty to one count of conspiracy to commit wire and mail fraud with his co-defendant Christopher Worth in connection with contracts his business received from WCSO. On July 24, 2024, Worth also pled guilty to one count of conspiracy to commit wire and mail fraud. Worth is scheduled to be sentenced next month. Worth joined the Wayne County Sheriff’s Office (WCSO) in 1993 and most recently served as the Major of Enforcement where he was responsible for overseeing support services and the WCSO drug unit. Worth retired from this position in 2023.

The criminal activity of Cox and Worth were uncovered as part of a larger operation investigating the trafficking of methamphetamine and other drugs in Onslow, Craven and Wayne Counties that began in 2020. To date, 41 defendants, including Cox and Worth, have been convicted. Most recently, a federal jury convicted Tamarcus Ellis on three charges of trafficking methamphetamine. The operation has also netted the seizure of 36 firearms, 16 kilograms of methamphetamine, four kilograms of heroin, ¾ of a kilogram cocaine and 450 grams fentanyl – enough for more than 225,000 potentially lethal doses.

“What started as an investigation of drug trafficking in Eastern North Carolina, led us to public corruption in law enforcement. Michael Cox and his co-defendant both took the sacred oath to uphold the law and protect the public,” said U.S. Attorney Michael Easley. “The majority of our law enforcement officers abide their promise, but these two chose a different path. Instead, they entered into a conspiracy to profit from upfitting law enforcement vehicles and Cox joined a drug trafficking conspiracy with the criminals he was supposed to investigate.”

According to court documents and other information presented in Court, while Cox was a sheriff’s deputy, he helped two drug traffickers operating in Wayne County evade charges. Cox accomplished this by, among other things, providing protection under the ruse that they were confidential informants. This allowed Cox to provide them with sensitive law enforcement information and shield them from investigations. As a result of these efforts, the Goldsboro Police Department began to view one of the drug traffickers as “untouchable” due to his relationship with Cox. In exchange, Cox used the drug traffickers to supply him with Percocet and Oxycodone that he provided to other people.

For example, in 2017, Cox observed one of his protected drug traffickers making a purchase from the target of a Drug Enforcement Administration (DEA) investigation. Rather than arrest the trafficker, he seized the drugs and reimbursed him $2,000 for the sale and gave him another $200 as a “Confidential Informant fee,” claiming it had been a planned, controlled purchase.

Cox’s support of the drug traffickers went beyond his purchase of Percocet and Oxycodone. He arranged a cocaine transaction between the two protected drug traffickers when one of them was low on supply. One trafficker indicated that Cox approached him about conducting a home invasion of a location that was thought to contain a large amount of drug proceeds.  Just ten days later, a violent home invasion occurred there.

“Tonight, Michael Kenneth Cox will have a different view of prison bars. He will be looking out from the inside of a federal cell for the next six years. Law enforcement officers are entrusted with an incredible responsibility to serve our communities and ensure justice. Anyone who tarnishes their badge for their own profit will be held accountable,” said FBI Special Agent in Charge, Robert M. DeWitt. “The FBI will root out public corruption and defend the vast majority of hard-working officers who carry out their duties honestly and honorably.”

Even after his retirement from the Wayne County Sheriff’s Office, Cox continued his efforts to protect the drug traffickers. In 2019, a confidential informant working for the Wayne County Sheriff’s Office was shot, called 911, and informed the 911 operator that he had been shot by one of Cox’s protected drug traffickers. Cox found out about the shooting and contacted investigators that same night to provide an alibi for his protected drug trafficker. Cox then assisted the drug trafficker with obtaining a defense attorney. During a subsequent federal investigation of the shooting, Cox lied about his contacts with the protected drug trafficker following the shooting. In 2021, one of the protected drug traffickers was the target of a federal wiretap investigation. After finding a GPS device on his car, he called Cox and referenced his recent trips to Cox’s home for Oxycodone deliveries. Cox immediately contacted former colleagues within the Wayne County Sheriff’s Office to ask about the tracking device and then informed the protected drug dealer that it belonged to the ATF. After learning about the federal investigation, the protected drug dealer and his conspirators took steps to thwart the investigation.

This investigation was an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.

Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief United States District Judge Richard E. Myers II. The FBI and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) are investigating the case and Assistant U.S. Attorneys Dennis Duffy and Nick Hartigan are prosecuting the case.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-260.

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FBI San Diego Warns of Holiday Scams

Source: US FBI

SAN DIEGO—The 2023 holiday season is officially here, and criminals are waiting to take advantage of unsuspecting shoppers. Consumers looking for a good deal this holiday season need to be aware of aggressive and deceptive scams designed by criminals to steal money and personal information.

According to the FBI’s Internet Crime Complaint Center (IC3), San Diegans lost more than $2.6 million to fraudsters in 2022, including more than $320,000 during the holiday season alone. This year, FBI San Diego wants shoppers and sellers to enjoy a scam-free holiday season by learning how to recognize and protect against scams.

Common scams include:

  • Online Shopping Scams
    • Scammers often offer too-good-to-be-true deals via phishing e-mails or advertisements. Such schemes may offer brand-name merchandise at extremely low prices or offer gift cards as an incentive. Other sites may offer products at a great price, but the products being sold are not the same as the products advertised.
    • Consumers should steer clear of untrustworthy sites or ads offering items at unrealistic discounts or with special coupons.
    • Consumers should be vigilant when receiving items purchased from online auctions and third-party marketplaces. If an item arrives from another online merchant, it may have been purchased using a stolen credit card number, stolen rewards points, or other unlawful means, and then shipped directly to the consumer. These cases should be reported to both the marketplace where the item was purchased and to the merchant who sent it.
    • Consumers should be aware of potential advanced fee schemes, in which a deposit is requested in order to reserve a vacation, cruise, at-home job, fitness equipment, spa gift, or other high-demand product.
    • Puppy purchase scams are an increasingly prevalent advance-fee/online shopping scam. Fraudsters use social media or other websites to offer puppies for sale and take money but never deliver the animal. They may also ask for additional money for fictitious reasons such as veterinarian bills.
  • Social Media Scams
    • Consumers should beware of posts on social media sites that appear to offer vouchers or gift cards. Some may appear as holiday promotions or contests. Others may appear to be from known friends who have shared the link. Often, these scams lead consumers to participate in an online survey that is designed to steal personal information.
    • Consumers should not post pictures of event tickets on social media sites. Fraudsters can create a ticket using the barcode obtained from the photo and resell the ticket. Consumers should protect ticket barcodes as they would credit card numbers.
  • Charity Scams
    • Fraudulent charity scams are common during the holiday season. Perpetrators set up false charities and profit from individuals who believe they are making donations to legitimate charitable organizations.
    • Victims are apt to make end-of-year tax deductible gifts or are reminded of those less fortunate and wish to contribute to a good cause.
    • Seasonal charity scams can pose greater difficulties in monitoring because of their widespread reach, limited duration and, when done over the Internet, minimal oversight.
    • Charity scam solicitations may come through cold calls, e-mail campaigns, crowdfunding platforms—soliciting money from many people usually over the Internet—or fake social media accounts and websites. They are designed to make it easy for victims to give and feel like they’re making a difference. Perpetrators may divert some or all of the funds for their personal use, and those most in need will never see the donation.

Consumers can do the following to reduce their chances of being victimized:

  • Check credit card statements routinely. If possible, set up credit card transaction auto alerts or check balances after every online purchase. It is important to check statements after the holiday season, as many fraudulent charges can show up even several weeks later.
  • If purchasing merchandise, ensure it is from a reputable source.
  • Ensure a site is secure and reputable before providing credit card number online. Don’t trust a site just because it claims to be secure. Be cognizant of web page addresses that look similar to familiar sites but are slightly different. Ensure updated home security protocols are in place.
  • Beware of purchases or services that require payment with a gift card or through quick payment transfer sites or apps.
  • Beware of providing credit card information when requested through unsolicited e-mails.
  • Do not respond to unsolicited e-mails.
  • Do not click on links contained within an unsolicited e-mail.
  • Avoid filling out forms contained in e-mail messages that ask for personal information.
  • Be cautious of e-mails claiming to contain pictures in attached files, as the files may contain viruses. Only open attachments from known senders and scan all attachments for viruses if possible.
  • Verify requests for personal information from any business or financial institution by contacting them using the main contact information on their official website.
  • Secure credit card accounts, even rewards account, with strong passwords. Change passwords and check accounts routinely.
  • Only donate to known and trusted charities; legitimate charities do not solicit donations via money transfer services or ask for donations via gift cards.
  • Beware of organizations with copycat names similar to reputable charities; most legitimate charity websites use .org (not .com).
  • Follow the Federal Trade Commission’s tips for online charity research. (https://www.consumer.ftc.gov/features/how-donate-wisely-and-avoid-charity-scams)

Consumers who believe they are the victim of a scam should:

  • Contact their financial institution immediately upon suspecting or discovering a fraudulent transfer.
  • Ask their bank to contact the financial institution where the fraudulent transfer was sent.
  • Contact law enforcement.
  • File a complaint with the FBI’s Internet Crime Complaint Center at www.IC3.gov as quickly as possible. Provide all relevant information in the complaint.
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Married Couple Sentenced for Laundering $1.4 Million in Proceeds From Jewelry Thefts and Unemployment Fraud During Pandemic

Source: US FBI

NEWS RELEASE SUMMARY – November 20, 2023

SAN DIEGO – Eduard Ghiocel and his wife, Floarea Ghiocel, were sentenced in federal court today to 36 months and 30 months, respectively, for laundering $1.4 million in proceeds from dozens of grand thefts, robberies and swindles targeting mostly elderly victims in San Diego County.

According to their plea agreements, the Ghiocels, along with co-conspirators Gabriel Ghiocel, Marius Ghiocel, Larisa Ghiocel, and Argentina Alexandru, conducted a series of 17 grand thefts and robberies of jewelry in elderly communities in San Diego. They then pawned the stolen jewelry and watches for cash in jewelry stores in Los Angeles.

In addition, Eduard and Floarea Ghiocel admitted submitting fraudulent unemployment claims to the California Employment Development Department (EDD) to obtain approximately $32,250 in California unemployment insurance benefits intended to help workers affected by the COVID-19 pandemic.

Eduard and Floarea Ghiocel admitted wiring proceeds from the jewelry thefts and the unemployment insurance fraud to Romania, as well as using the proceeds to purchase gold bars, gold coins, and high-end luxury vehicles from locations in Southern California and shipping these items to Romania. In total the Ghiocels sent almost $1.4 million to Romania, knowing the money was proceeds of theft, robbery, and fraud, the plea agreement said.

Eduard and Floarea Ghiocel agreed to forfeit proceeds of the crime including two Lamborghini Urus, a 2020 Ferrari Portofino, and a BMW X4 all seized by authorities in Romania. The forfeitures will be used pay restitution to victims of the crimes.

The co-conspirators remain at large.

This case is being prosecuted by Assistant U.S. Attorney Jessica Adeline Schulberg with assistance from the Department of Justice’s Office of International Affairs, FBI’s Legal Attaché in Bucharest, and Romanian authorities including the Directorate for Combating Organized Crime (DCCO) Service for Countering of Organized Criminal Groups, Brigade for Combating Organized Crime (BCCO) – Pitești, County Service for Countering Organized Crime – Teleorman, Romanian Gendarmerie Battalion, Romanian Ministry of Justice, and Romanian Criminal Investigative Directorate – Fugitive Unit.

DEFENDANT                                               Case Number 23CR0386-LAB                                

Eduard Ghiocel (1)                             Age: 48                       Romania

aka Eduard Alexandru, aka “Filica”

Floarea Ghiocel (2)                             Age: 49                       Romania

aka Floarea Alexandru          

SUMMARY OF CHARGES

Title 18 U.S.C. § 1956(h) and Title 18 U.S.C. § 1956(a)(2)(A) — Conspiracy to Transport Funds to Promote Unlawful Activity

Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater

AGENCY

Federal Bureau of Investigation

San Diego Police Department Economic Crimes Unit

IRS Criminal Investigation

California Employment Development Department Investigative Division

Department of Labor Office of Inspector General

U.S. Department of Homeland Security

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U.S. Attorney’s Office to Co-Host “United Against Hate” Event Featuring Film Screening and Panel Discussion

Source: US FBI

CHARLOTTE, N.C. –The U.S. Attorney’s Office for the Western District of North Carolina will present a film screening and panel discussion on Thursday, September 26, 2024, from 6:30 p.m. to 8:00 p.m., at First Presbyterian Church of Charlotte. The U.S. Attorney’s Office is co-hosting the event as part of the Justice Department’s “United Against Hate” Week, taking place September 23 to 27, 2024.

The event will feature the documentary Repairing the World: Stories from the Tree of Life, which documents the Pittsburgh community’s response to the 2018 Tree of Life synagogue shooting. The documentary depicts the resilience, unity, and healing efforts of the community following the deadliest anti-Semitic attack in U.S. history. Through powerful storytelling and recollections shared by survivors, family members, and the community, the film explores the impact of hate crimes and the power of diverse people coming together after a devastating tragedy.

Following the film screening, representatives from the U.S. Attorney’s Office, the FBI in Charlotte, the Charlotte Mecklenburg Police Department, the Mecklenburg County District Attorney’s Office, and the Mecklenburg Metropolitan Interfaith Network will lead a panel discussion on hate crimes and the importance of reporting hate incidents to law enforcement. The panel will also share information on what individuals and communities can do to prevent and respond to acts of hate.

“Events like this help raise awareness about the impact of hate crimes,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “By sharing stories of loss, strength, and unity, we want to educate the public but also to facilitate a meaningful dialogue about hate crimes and taking a stand against hatred in all its forms. The United Against Hate initiative is part of my Office’s core mission to protect civil rights and increase the safety and security of individuals and communities across Western North Carolina.”

The Department of Justice launched the United Against Hate initiative in 2022, in response to the rising number of hate crimes across the country. The initiative brings together law enforcement, community organizations, and the public to address hate crimes through outreach and education and build trust with those most vulnerable to acts of hate.

In the Western District of North Carolina, the U.S. Attorney’s Office continues to actively engage with local communities since the initiative’s launch. Previous efforts have included a youth summit with Charlotte-Mecklenburg Schools, meetings with faith-based communities, and discussions focused on protecting houses of worship.

“While not all hate incidents rise to the level of a hate crime, the impact and trauma they can inflict is very real. Reporting these incidents allows law enforcement and prosecutors to investigate and take appropriate action when warranted,” said U.S. Attorney King. “My Office is committed to partnering with all communities to address their concerns. I also invite members of the community to join us in our efforts to make Western North Carolina a safer and more inclusive place for all.”

Event Details:

Date:         Thursday, September 26, 2024

Time:        6:30 PM to 8:00 PM 

Location:  First Presbyterian Church of Charlotte

                   Fellowship Hall

                   200 West Trade Street

                   Charlotte, North Carolina

The event is free and open to the public. Register at https://fpc.tiny.us/repairingtheworld.

For more information about the U.S. Attorney’s Office United Against Hate initiative please visit our website.

For immediate assistance or to report a hate crime please call 9-1-1. To file a report with the FBI please call 1-800-CALL-FBI or submit a tip at tips.FBI.gov. Also report suspected civil rights violations and hate crimes to the Civil Rights Division through the Justice Department’s toll-free line at 800-253-3931 or online at www.civilrights.justice.gov.

 

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Foreign National Sentenced to 40 Months Custody for $5 Million Unemployment Fraud Scheme

Source: US FBI

NEWS RELEASE SUMMARY – November 20, 2023

SAN DIEGO – Constantin Bobi Sandu, who admitted that he masterminded a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic, was sentenced in federal court today to 40 months in prison.

According to his plea agreement, Sandu conspired with over 200 other individuals across California and in Romania to fraudulently obtain millions of dollars by fabricating documents, creating fictitious accounts and businesses, and filing bogus claims with California’s Economic Development Department, which administers the state’s unemployment benefits. Among other things, Sandu wired $16,000 in fraud proceeds to Romania to renovate his house.

Sandu also was ordered to forfeit $214,950 that he personally received from the offenses.

“This devious scheme diverted millions of dollars from those who truly needed it during the pandemic,” said U.S. Attorney Tara McGrath. “The public health emergency may be over, but we are still tracking, charging, and convicting the people who exploited it.”

“The FBI remains fully committed to ensuring people who intentionally stole government funds during the COVID-19 pandemic are brought to justice,” said FBI San Diego Special Agent in Charge Stacey Moy. “We continually collaborate with our law enforcement partners to thoroughly investigate all those responsible for stealing from the United States Government and its people during such a critical time in our lives, taking away valuable resources and services from those truly in need.”

“Mr. Sandu and his criminal organization committed financial crimes that hurt people here in California and stole funds intended for those in need,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “IRS:CI is committed to partnerships with law enforcement organizations around the world, and we will follow the money to find the guilty and bring them to justice.”

This case was prosecuted by Assistant U.S. Attorney Jessica Adeline Schulberg.

DEFENDANT                                               Case Number 23CR0386-LAB                                

Constantin Bobi Sandu,                                  Age: 34                    Romanian national

   aka Constantin Sandu,

   aka Bobi Sandu,

   aka Ionut Mihai                     

SUMMARY OF CHARGES

Title 18, U.S.C.  § 1349 and 1343 – Conspiracy to Commit Wire Fraud

Maximum penalty: Thirty years in prison, a fine of $1 million or both;

Title 18 U.S.C. § 1956(a)(2)(A) — Laundering Monetary Instruments

Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater;

Title 18 U.S.C. §§ 981(a)(1)(C) and 982(a)(1), and Title 28, U.S.C. § 2461(c) – Criminal Forfeitures 

AGENCY

Federal Bureau of Investigation

San Diego Police Department Economic Crimes Unit

IRS Criminal Investigation

California Employment Development Department Investigative Division

Department of Labor Office of Investigator General

U.S. Department of Homeland Security

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Hot Springs Man Sentenced to Over Eight Years in Federal Prison for Child Pornography Offense

Source: US FBI

Hot Springs, Arkansas – David Clay Fowlkes, First Assistant United States Attorney for the Western District of Arkansas, announced today that Alejandro Aurioles, age 32, of Hot Springs, Arkansas, was sentenced today to 97 months in federal prison without the possibility of parole followed by 10 years of supervised release on one count of accessing the Internet with the intent to view child pornography.  The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.

According to court records, on October 26, 2018, detectives with the Hot Springs Police Department received a Cybertip report of child pornographic images being downloaded to a Hot Springs telephone number.  Detectives traced the phone number back to a cell phone associated with Aurioles.  On or about December 21, 2018, Aurioles was arrested on a state charge and admitted to Hot Springs detectives that he had downloaded images of child pornography using his cell phone and sold those images to others on two occasions.  During a search of his two cellular phones, thousands of child pornography images and videos of child sexual abuse were forensically recovered. 

Aurioles was indicted in March of 2019 and entered a guilty plea to a related case in September of 2019. 

This case was investigated by the Hot Springs Police Department and the FBI.  Assistant United States Attorneys Kim Harris and Ben Wulff 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.

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Justice Department’s Tenth Distribution Provides Over $4 Billion in Nearly Full Recovery to More Than 40,000 Victims in Madoff Ponzi Scheme

Source: US FBI

Distribution of Over $131 Million Brings Madoff Victim Recovery to Nearly 94% of Fraud Losses

Edward Y. Kim, the Acting United States Attorney for the Southern District of New York; Brent S. Wible, the Principal Deputy Assistant Attorney General of the United States and head of the U.S. Department of Justice’s Criminal Division; and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that the Madoff Victim Fund (“MVF”) began its tenth and final distribution to victims of the Bernard L. Madoff fraud scheme of over $131.4 million.  These funds were forfeited by the U.S. government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme.

In this distribution, payments will be sent to more than 23,000 victims across the globe, bringing their total recoveries to 93.71% of their fraud losses. Most of these victims were small investors who lost less than $500,000 in the fraud.  Through its ten distributions, MVF has paid over $4.3 billion to 40,930 victims in 127 countries as compensation for losses they suffered from the collapse of BLMIS.

This distribution represents the culmination of a decade of work identifying thousands of victims around the world and unwinding layers of complex financial transactions to provide compensation to eligible victims.

Acting U.S. Attorney Edward Y. Kim said: “This Office has never stopped pursuing justice for victims of history’s largest Ponzi scheme.  With this tenth and final distribution, we have succeeded in compensating 40,930 victims with close to 94% of their losses.  As this extraordinary effort demonstrates, this Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section are committed to protecting and assisting victims of crime, no matter how long it takes and no matter how complicated the endeavor.”

Principal Deputy Assistant Attorney General Brent S. Wible said: “The Criminal Division, through its Money Laundering and Asset Recovery Section (“MLARS”), is proud to administer the department’s remission program to compensate victims using forfeited assets.  The unprecedented scope and complexity of the Madoff remission process shows the power of forfeiture to recover assets and to compensate victims — a primary goal of the department’s Asset Forfeiture Program.  This tenth and final distribution, led by MLARS’s dedicated victim compensation team, achieves the department’s goal of compensating victims by returning over $4 billion in forfeited assets to more than 40,000 victims of Madoff’s crimes and achieving nearly full recovery for these victims.”

FBI Assistant Director in Charge James E. Dennehy said: “Today’s distribution represents an unprecedented conclusion of victim compensation from civil forfeiture actions related to the Madoff scheme with more than $4 billion repaid to over 40,000 victims.  These victims implicitly trusted Madoff with their investments only to ultimately lose significant monies to his selfish plan.  With the steadfast support from the Justice Department, the FBI will continue its tireless seizure of assets from criminals who steal from others and seek to recover those assets for victim losses.” 

According to court documents and information presented in related proceedings, for decades, Bernard L. Madoff used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family and select members of his inner circle.

On June 29, 2009, then-U.S. District Judge (now senior U.S. Circuit Judge), Denny Chin sentenced Madoff to serve 150 years in prison for running the largest fraudulent scheme in history. Of the over $4 billion that has been made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower. An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff and their co-conspirators.

The MVF’s payouts would not have been possible without the extraordinary efforts of the U.S. Attorney’s Office for the Southern District of New York, the Criminal Division’s Money Laundering and Asset Recovery Section, and the FBI in the prosecution of Madoff’s crimes and the recovery of assets supporting the forfeiture in this case.

The MVF is overseen by Richard Breeden, former Chairman of the U.S. Securities and Exchange Commission, who serves as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings.  Mr. Breeden and his team at MVF have been essential in working with the Department to evaluate over 66,000 remission petitions involving billions in cash flows, and to compute each victim’s fraud losses to enable payments to be made.

This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney Tara M. La Morte is in charge of the prosecution.  The remission of these forfeited funds is being handled by the Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section.

More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or info@madoffvictimfund.com.