Author: MIL-OSI Publisher

Source: US FBI

CINCINNATI – A member of a Russian cybercrime group has been charged federally and appeared in U.S. District Court in Cincinnati today.

A federal grand jury indicted Deniss Zolotarjovs, 33, of Moscow, Russia, charging him with conspiring to commit money laundering, wire fraud and Hobbs Act extortion.

He was arrested by law enforcement in the country of Georgia in December 2023 and has remained in custody since. Georgia extradited Zolotarjovs to the United States this month.

According to court documents, Zolotarjovs is a member of a known cybercriminal organization that attacks computer systems of victims around the world. Among other things, the Russian cybercrime group steals victim data and threatens to release it unless the victim pays ransom in cryptocurrency. The group maintains a leaks and auction website that lists victim companies and offers stolen data for download.

It is alleged that Zolotarjovs was an active member of the Russian cybercrime group, communicating with other members, laundering cryptocurrency received from victims, and extorting victims. Zolotarjovs is the first alleged group member to be arrested and extradited to the United States.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. U.S. Attorney Parker and SAC Iatarola commend the FBI offices in Cleveland, San Diego, Richmond and Salt Lake City for their vital roles in the investigation and officials in Georgia for their role in the extradition. Assistant United States Attorney Megan Gaffney Painter is representing the United States in this case. The Justice Department’s Office of International Affairs provided significant assistance in securing Zolotarjovs’s extradition from Georgia.

An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

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Source: US FBI

NEWS RELEASE SUMMARY – August 23, 2024

SAN DIEGO – Son Nguyen of San Diego was arrested early today and charged in federal court with two counts of damaging property in connection with using explosives on two ATMs.

Nguyen, who unsuccessfully attempted to steal money from the machines, was tracked through surveillance video, vehicle registration and facial features, the complaint said. He was taken into custody by the FBI at his Mira Mesa residence and is scheduled to make his first appearance in federal court Monday.

According to the complaint, at approximately 3:24 a.m. on June 8, 2024, Nguyen drove up to an ATM outside of California Coast Credit Union on Governor Drive in San Diego. Nguyen got out of his car and brought a five-gallon blue plastic container with a white spout to the area in front of the ATM. He then appeared to insert a black polyvinyl chloride plastic (“PVC”) hose into the ATM. A short time later, a small explosion occurred inside the ATM. Despite efforts to pull money out of the machine, Nguyen left empty handed.

San Diego Police officers responded to an alarm at the credit union and observed a white PVC pipe connected to a black PVC pipe with two batteries taped to it. They also observed pieces of what looked like a blue balloon around the ATM.  Approximately 20 feet from the ATM was another plastic pipe. 

According to the complaint, a few weeks later, at approximately 2:10 a.m. on June 28, 2024, Nguyen drove up to another ATM in Rancho Bernardo outside of a First Citizen’s Bank branch in San Diego. He then repeated the same steps. After electrical components caught fire and smoke started coming out of the ATM, Nguyen returned and attempted to extract cash from the machine but was unsuccessful.

Investigators used surveillance camera video to track the defendant and his vehicle. While serving a court-authorized search warrant at Nguyen’s home, investigators found gas, black powder, potassium nitrate sulfur, explosive pre-cursor chemicals, a paper that explains how to make black powder and a firearm in Nguyen’s residence, among other equipment and clothing items consistent with those used during the attempts.

“Fortunately, neither of these incidents resulted in injury or successful theft of cash,” said U.S. Attorney Tara McGrath. “With the discovery of chemicals and equipment in the search today, future attempts were also thwarted.”

This case is being prosecuted by Assistant U.S. Attorneys Andrew Sherwood and Shital Thakkar.

DEFENDANT                                               Case Number                         24-mj-03215

Son Thanh Nguyen                                         Age: 44                                   San Diego, CA

SUMMARY OF CHARGES

Use of an Explosive to Damage Property – 18 U.S.C., Section 844(i)

Maximum penalty: Twenty years in prison

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego Police Department

San Diego County Sheriff’s Department Bomb Squad

City of San Diego’s Hazmat Team

A complaint itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt. 

Source: US FBI

NEWS RELEASE SUMMARY – August 13, 2024

SAN DIEGO – George Joseph Wellinger II of San Diego made his first appearance in federal court today to face charges that he sent a threatening email to a member of the LGBTQ community.

The victim was targeted after being interviewed for a KTLA news report about a hate-inspired murder in Lake Arrowhead in 2023.

According to the indictment, the email called the victim “another alphabet clown that wants to take a dirt nap, too,” and included a link to the KTLA news report which featured the victim and others discussing the murder of a Lake Arrowhead business owner who had been gunned down for hanging a Pride flag in her business.

The email continued: “We know what you look like and know where are you are….only a matter of time….Love it….get ur ghey on sister….scissor it up….we coming for ur rainbow azz. Click Click!!!!;

Wellinger was arraigned on an indictment charging him with Transmitting a Threatening Communication. The indictment alleges Wellinger targeted his victim because of her sexual orientation.

“Hate crimes are designed to terrify both the victim and the community,” said U.S. Attorney Tara McGrath. “The U. S. Attorney’s Office works tirelessly on prosecuting these cases to send our own message: San Diego is no place for hate.”

“Today’s indictment serves as a reminder there is no room for hate in our community,” said Stacey Moy, Special Agent in Charge for the FBI San Diego Field Office. “Hate crimes remain one of the top FBI priorities and we will continue to protect and safeguard our communities.”

Wellinger was taken into custody early today and at today’s hearing, U.S. Magistrate Judge Barbara L. Major set a $50,000 bond and ordered home detention and electronic monitoring.

If you or anyone you know believes you have been the victim of a hate crime, please contact the FBI at https://tips.fbi.gov/home. Assistant U.S. Attorneys Jacqueline M. Jimenez and Alicia Williams are prosecuting this case.

DEFENDANT                                               Case Number: 24-CR-1591                                       

George Joseph Wellinger II                            Age: 48                                   San Diego, CA

CHARGE

Transmitting a Threatening Communication – Title 18 U.S.C., § 875(c)

Maximum penalty: Five years in prison

INVESTIGATING AGENCY

Federal Bureau of Investigation

For more information and resources about the department’s work to combat hate crimes, visit https://www.justice.gov/hatecrimes.

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

Source: US FBI

SACRAMENTO, Calif. — Jose Luis Ramos, 56, of Michoacan, Mexico, was sentenced today by U.S. District Judge Troy L. Nunley to five years in prison for conspiracy to distribute at least 500 grams of methamphetamine, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, Ramos was intercepted on a wiretap coordinating the delivery of 10 pounds of methamphetamine in Southern California. Two pounds of that methamphetamine was ultimately seized by the FBI in Sacramento.

This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant U.S. Attorneys Cameron L. Desmond and Alstyn Bennett prosecuted the case.

Ramos’ co-defendant, Jesus Celaya, was sentenced on Oct. 10, 2024, to 73 months in prison for distribution of methamphetamine.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF. 

Source: US FBI

FRESNO, Calif — On Wednesday, a federal jury in Fresno convicted former Sanger Police Department Officer J. DeShawn Torrence, 42, of eight counts of deprivation of constitutional rights under color of law for sexually assaulting four women whom he encountered during the course of his official duties. The jury found that the offenses included kidnapping, aggravated sexual abuse, and attempted aggravated sexual abuse, and also caused bodily injury.

Deputy Assistant Attorney General Kathleen Wolfe of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Michele Beckwith for the Eastern District of California, and Special Agent in Charge Siddartha Patel of the FBI Sacramento Field Office made the announcement.

The evidence at trial proved that Torrence sexually assaulted four women. He kidnapped a 21‑year-old woman who was walking to a store to buy groceries for her young children, drove her outside of town in his police car, and sexually assaulted her at an isolated dead end. Torrence forcibly raped a second victim, a 67-year-old woman, after following her into her home during a DUI investigation. With a third victim, Torrence showed up at her door in his police uniform after midnight, entered her apartment, pinned her against the kitchen counter, and sexually assaulted her. Torrence showed up multiple times at the home of a fourth victim, a domestic violence victim, supposedly to investigate a prior domestic violence incident. During those follow up visits, Torrence forced the victim to expose sensitive parts of her body for no legitimate reason, and he sexually assaulted her.

“Law enforcement officers are entrusted with great power to protect the public and keep them safe from harm. This officer’s crimes were an egregious breach of that trust and an appalling abuse of power, as he repeatedly preyed on the women in his community and violated their civil rights,” said Acting U.S. Attorney Beckwith. “We stand ready to investigate and prosecute such crimes with all the tools we have available.”

“The FBI Sacramento Field Office is grateful to the brave victims who came forward and trusted us to investigate the allegations of sexual abuse at the hands of a police officer,” said Special Agent in Charge Sid Patel. “The FBI is deeply committed to working with our partners to thoroughly investigate such cases to protect the American people and preserve public trust in law enforcement.”

The FBI Sacramento Field Office investigated the case, with assistance from the Fresno County Sheriff’s Office. Special Litigation Counsel Michael J. Songer of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Karen Escobar for the Eastern District of California are prosecuting the case.

Torrence is scheduled to be sentenced on May 7, 2025. Torrence faces a maximum penalty of life in prison and a $250,000 fine for five of the counts. The remaining counts each carry a maximum penalty of one year in prison and a fine of up to $100,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Source: US FBI

SACRAMENTO, Calif. — An indictment was unsealed today charging Honduran national Abner Estrada Cruz, 25, with conspiracy to distribute at least 400 grams fentanyl and seven counts of distributing fentanyl, Acting U.S. Attorney Michele Beckwith announced.

Estrada Cruz was extradited from Honduras to the United States to face the charges against him.

The indictment stems from a two-year DEA-led multi-agency investigation into a Honduran fentanyl drug trafficking ring operating out of Honduras, San Francisco, California, and Portland, Oregon. During the course of the investigation, DEA seized more than 16 pounds of fentanyl powder trafficked into the Eastern District of California from Estrada Cruz’s co-conspirators. Those co-conspirators – Yahir Alexander Arteaga Cruz, Carlos Samir Colindrez-Erazo, and Aronis Jose Hernandez Aguilar – have been charged in the same conspiracy by separate indictment in the Eastern District of California in Sacramento (2:24-cr-0246-DAD). Several additional members of the Drug Trafficking Organization were indicted in the District of Oregon in Portland.

Estrada Cruz acted as the operations manager of the organization, taking orders, arranging deliveries, and helping to run the organization from San Francisco, Portland, and Honduras. He was arrested in Honduras and surrendered to the United States following extradition proceedings.

This case is the product of an investigation by the Drug Enforcement Administration, with assistance from the California Department of Justice Bureau of Investigation Fentanyl Task Force, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.

The Justice Department’s Office of International Affairs worked with law enforcement partners in Honduras to secure the arrest and extradition of Estrada Cruz.

If convicted of the conspiracy to distribute and possess with intent to distribute fentanyl, Estrada Cruz faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The specific mission of the OCDETF Sacramento Strike Force is to identify, investigate, and prosecute the most significant criminal organizations operating in the Eastern District of California. OCDETF Sacramento Strike Force is composed of agents and officers from DEA, FBI, HSI, IRS-CI, USMS, ATF, USPIS, BLM, USFS, the Sacramento Sheriff’s Office, the California National Guard, the California Department of Corrections and Rehabilitation, the California Department of Justice, and the Central Valley California HIDTA.

Source: US FBI

FRESNO, Calif. — Garrett Scott Wheelen, 33, of Fresno, pleaded guilty today to possessing more than 500 grams of a mixture or substance containing a detectable amount of methamphetamine, Acting U.S. Attorney Michele Beckwith announced. 

According to court documents, on May 1, 2024, Wheelen arrived at the Federal Correctional Institution Mendota wearing a facemask, baseball cap, and hoodie to conceal his identity. In broad daylight, Wheelen ran to the prison fence and tossed four packages into the prison’s recreation yard. He was quickly apprehended after attempting to flee. The packages contained more than 3 pounds of methamphetamine. Wheelen was on supervised release from a prior federal felony charge at the time.

This case is the product of an investigation by the Federal Bureau of Investigation, the Mendota Police Department, and the Bureau of Prisons. Assistant U.S. Attorneys Cody S. Chapple and Dhruv M. Sharma are prosecuting the case.

Wheelen is scheduled to be sentenced on May 2, 2025, before U.S. District Judge Dena M. Coggins. Wheelen faces a statutory maximum of 20 years in prison, and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Source: US FBI

SACRAMENTO, Calif. — Edwin Alonso Cuadros Bravo, 54, formerly residing in Sacramento, pleaded guilty to interstate and international kidnapping conspiracy, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, in November 2021, Cuadros Bravo and his wife and co‑defendant Yulisa Alexsandra Guevara Wintong abducted their six-year-old grandchild from Sacramento and took the victim to Peru. Despite pleading from the mother, Cuadros Bravo and Guevara Wintong did not return the victim to the United States. In December 2022, the victim was returned to Sacramento as a result of government intervention.

Cuadros Bravo was detained following his first appearance and he remains in custody. Guevara Wintong has not yet appeared to answer the charges against her. The charges are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Veronica M.A. Alegría is prosecuting the case.

Cuadros Bravo is scheduled for sentencing on April 21, 2025, by U.S. District Judge Dale A. Drozd. Cuadros Bravo faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Source: US FBI

LOS ANGELES – The founder and chairman of Hightimes Holding Corp., the company that publishes High Times magazine, has agreed to plead guilty to joining a criminal conspiracy to pay more than $150,000 in undisclosed compensation to an analyst for an investment newsletter that touted its stock and assisted Hightimes in raising at least $6 million.

Adam Levin, 45, of Marina Del Rey, was charged last month with one count of conspiracy to tout securities for undisclosed compensation. In a plea agreement filed December 20, Levin agreed to plead guilty to that felony offense.

Levin is scheduled to appear January 14 in United States District Court to make his initial appearance in this case.

Levin is the fourth defendant to be charged in this scheme in which companies paid the analyst at “Palm Beach Venture,” an investment newsletter with subscribers nationwide. That analyst, Jonathan William Mikula – along with his associate, Christian Fernandez, who acted as a money launderer for the scheme; and Raj Beri, the CEO of a Beverly Hills company who brokered deals for undisclosed payments by other issuers, each received a portion of the payments. Mikula, Fernandez and Beri each pleaded guilty last year and are scheduled to be sentenced in July.

The payments made by executives such as Levin were in exchange for Palm Beach Venture publishing promotional pieces for securities offerings, according to court documents.      

Federal law requires full and public disclosure from anyone who has received payment – directly or indirectly – from an issuer for publishing, publicizing or circulating any advertisement or communication that describes the issuer’s security offered for sale.

According to Levin’s plea agreement, in 2020 and 2021, “Hightimes raised approximately $20 million from more than 10 investor-victims, with at least $6 million in investment proceeds associated with Palm Beach Venture’s promotion.”

In exchange for the favorable articles in the newsletter, Levin admitted he paid $150,000 via wire transfers, as well as tens of thousands of dollars for entertainment expenses.

To conceal the scheme, Levin entered into a sham “marketing agreement” and routed the payments through a Canadian bank to a shell company in Canada, according to the plea agreement.

Mikula then caused Palm Beach Venture to promote Hightimes’ securities offering on April 6 and September 23 in 2020 in articles that falsely stated, “Neither the Palm Beach Research Group nor its affiliates receive compensation for bringing this deal to you,” the plea agreement states.

Levin also admitted that he lied to the United States Securities and Exchange Commission when he denied knowing that he entered into a “pay-for-play arrangement.”

The FBI is investigating this matter.

The SEC filed a civil action against Hightimes that was resolved in 2023 with Hightimes agreeing to a cease-and-desist order and paying a penalty of $558,071.

Any investors who believe they are a victim of the crimes in this scheme are encouraged to go to https://www.justice.gov/usao-cdca/united-states-v-jonathan-william-mikula-christian-fernandez-and-amit-raj-beri for further information and updates regarding this matter.

Assistant United States Attorney Adam P. Schleifer of the Corporate and Securities Fraud Strike Force is prosecuting this case.

Source: US FBI

LOS ANGELES – A former employee of the California Employment Development Department (EDD), which administers the state’s unemployment insurance (UI) program, pleaded guilty this afternoon to fraudulently obtaining more than $750,000 in COVID jobless relief.

Phyllis Hope Stitt, 61, of Carson, pleaded guilty today to one count of conspiracy to commit mail fraud and bank fraud for filing at least 29 fraudulent UI claims that caused the EDD to suffer approximately $768,958 in losses. Also pleading guilty today to the same charge was Kenneth Earl Riley, 64, of South Los Angeles, Stitt’s former boyfriend.

According to their plea agreements, Stitt and Riley had been in a relationship as domestic partners with each other for over a decade at the beginning of the COVID-19 pandemic when Stitt was employed by the EDD as an employment program representative. Her job duties included determining claimant eligibility for unemployment insurance (UI) benefits and performing claim processing activities.

From March 2020 to September 2021, while using the access and information available to her in her position with the EDD, Stitt acquired the names, dates of birth, Social Security numbers, and other personal identifying information of victims that were used to submit fraudulent claims.

Stitt then filed fraudulent applications for UI benefits without the victims’ knowledge or consent, and then increased the amount of UI benefits paid out by backdating the fraudulent requests to maximize the claims.

Stitt certified the fraudulent applications alleging that the victims had submitted their employment history and driver’s license information, and she confirmed they were unemployed because of the pandemic and actively were searching for work.

Many of the victims were ineligible to receive these benefits because they were currently employed, not unemployed because of the pandemic, or were deceased at the time.

In filing the fraudulent applications, Stitt used mailing addresses that Riley had access to. Debit cards and accounts created as a result of these fraudulent applications were then accessed by Riley and others, who made cash withdrawals at ATMs, bank transfers and retail purchases.

United States District Judge André Birotte Jr. scheduled sentencing hearings for May 9, at which time each defendant will face a statutory maximum sentence of 30 years in federal prison.

On May 17, 2021, 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, please visit https://www.justice.gov/coronavirus.

On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.

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 at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The United States Department of Labor – Office of Inspector General, the FBI, and the California Employment Development Department – Investigation Division investigated this matter.

Assistant United States Attorney Steven M. Arkow of the Major Frauds Section is prosecuting this case.