Category: MIL-OSI

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Four Sentenced for Bribery and Scheme to Defraud VA and SBA

Source: US FBI

ANCHORAGE – Four Anchorage individuals involved in a bribery and fraud scheme to obtain Service-Disabled Veteran-Owned Small Business (SDVOSB) government contracts with the U.S. Department of Veterans Affairs (VA) have been sentenced in federal court.

Donald Garner, 50, owner of Veteran Ability, was a government contractor who provided various services to the U.S. government, including the VA in Anchorage. Richard Vaughan, 74, worked at the Anchorage VA as a contract officer representative responsible for awarding and managing numerous contracts for the VA, including a $700,000 SDVOSB contract to perform snow removal services at the Anchorage VA.

Between 2015 and 2017, Garner directed his bookkeeper Yalonda Moore, 52, to deliver more than $29,000 in bribe payments to Vaughan. In exchange, Vaughan gave preferential treatment to Garner by selecting Veteran Ability to complete dozens of “purchase card” jobs at the Anchorage VA, totaling more than $100,000. Vaughan also approved numerous invoices submitted by Garner related to the snow removal contract for work that was either unnecessary or never actually performed, causing the government an estimated $347,000 in losses.

Garner and Vaughan each pleaded guilty to one count of bribery involving a public official and were sentenced to one year and one day in federal prison, followed by three years of supervised release. They must also pay $347,000 in restitution to the VA.  

Additionally, between 2014 and 2016, Dale Johnson, 50, owner of ADALECO General LLC, conspired with Garner to perpetrate a “pass-through” scheme in which Johnson allowed Garner to use ADALECO’s name to bid on and obtain SDVOSB set-aside contracts for which Garner’s company was not eligible, including the VA snow removal contract. Although ADALECO was expected to perform the work, Garner’s company illegally assumed control of the contract and received the majority of the profits. In return, Garner paid Johnson a percentage of the contract as a kickback, totaling $54,302.

Johnson pleaded guilty to one count of conspiracy to defraud the United States and was sentenced to five years’ probation and ordered to pay $54,302 in restitution. 

The FBI and the VA Office of the Inspector General began investigating Garner, Vaughan, and Johnson in 2016.  During that investigation, Moore, who worked as a bookkeeper for both Veteran Ability and ADALECO, intentionally obstructed the government’s investigation by tipping off Garner about the FBI’s investigation plans. Prior to that Moore had been purporting to cooperate with the government’s investigation. Moore recently pleaded guilty to one count of obstruction of justice and was sentenced to three years’ probation.

“The bribery and fraud scheme by these defendants not only cheated the government, but simultaneously diverted work from eligible, law-abiding service-disabled veterans,” said John E. Kuhn, Jr. U.S. Attorney for the District of Alaska. “The U.S. Attorney’s Office will prosecute every unlawful attempt to corrupt the government contracting process and will work to ensure that no one profits from such efforts.”

 “At the expense of U.S. taxpayers, these individuals traded their integrity for greed, and undermined the VA’s efforts to lawfully contract with service-disabled veteran-owned businesses in Alaska,” said Assistant Special Agent in Charge Shawn Peters of the FBI Anchorage Field Office. “Dismantling criminal enterprises involving bribery and corruption will always be a priority for the FBI, and together with our law enforcement partners, we will hold those accountable who take part in such schemes.” 

The Federal Bureau of Investigation, the U.S. Department of Veterans Affairs Office of the Inspector General, the Small Business Administration Office of the Inspector General, and the General Services Administration Office of the Inspector General investigated the case.

Assistant U.S. Attorney Ryan Tansey prosecuted the case.

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Note to Editors:

  • Garner case: 3:19-cr-00120-SLG-DMS
  • Vaughan case: 3:19-cr-00120-SLG-DMS
  • Johnson case: 4:19-cr-00018-RRB-SAO
  • Moore case: 3:21-cr-00084-JMK-MMS

The United States Small Business Administration (SBA) is an independent agency of the federal government responsible for aiding, counseling, assisting and protecting the interests of small business concerns. The SBA and VA administer a program to award SDVOSB contracts which can only be awarded to small businesses owned and controlled by qualified Service-Disabled Veterans (SDVs)

Service-Disabled Veteran-Owned Small Business (SDVOSB) is a small business that is 51% unconditionally owned and controlled by a service-disabled veteran. Through the SDVOSB, the federal government aims to award at least three percent of all federal contracting dollars to SDVOSBs each year. Competition is limited for certain federal contract opportunities to businesses that participate in the SDVOSB program.

More information about veteran assistance programs can be found here: https://www.sba.gov/federal-contracting/contracting-assistance-programs/veteran-assistance-programs#section-header-11

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Birmingham Men Plead Guilty to Conspiracy to Distribute Methamphetamine, Distribution of Methamphetamine, and Possession with Intent to Distribute Heroin

Source: US FBI

BIRMINGHAM, Ala. – Two Birmingham men pleaded guilty to the charges of Conspiracy to Distribute Methamphetamine, Distribution of Methamphetamine, and Possession with the Intent to Distribute Heroin announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.

Darius Emale Craig, Jr., 23, pleaded guilty on February 24, 2022, to Conspiracy to Distribute Methamphetamine, and two counts of Distribution of Methamphetamine.  His sentencing is scheduled for June 15, 2022, before Judge Madeline Hughes Haikala.  Horace Dantai Burgess, Jr., 25, pleaded guilty on March 15, 2022, to Conspiracy to Distribute Methamphetamine involving his brother Darius Emale Craig, Jr., two counts of Distribution of Methamphetamine, and one count of Possession with the Intent to Distribute Heroin.  His sentencing is scheduled for July 20, 2022, before Judge Haikala.

The maximum penalty for conspiracy to distribute methamphetamine and distribution of methamphetamine is 40 years in prison and a fine of not more than $5,000,000.

Both men are linked to the Hard to Kill gang.  Agents of the Federal Bureau of Investigation (FBI) investigated the Hard to Kill gang, better known as H2K. This gang operates in the Birmingham, Alabama area and is known to be involved in acts of violence, illegal drug distribution, and illegal firearm possession.

These cases are a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. 

FBI investigated the case along with the Birmingham Police Department, and the Jefferson County Sheriff’s Office. Assistant United States Attorneys Kristy Peoples and Darius Greene prosecuted the cases.

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Birmingham Man Pleads Guilty to Charges Involving the Sexual Exploitation of a Minor

Source: US FBI

BIRMINGHAM, Ala. – A Birmingham man plead guilty this week to the charges of sex trafficking of a minor and production of child pornography, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.

Jeremy Lynn Alexander, 36, pleaded guilty before U.S. District Judge Karon O. Bowdre to one count of sex trafficking of a minor and one count of production of child pornography.  According to the plea agreement, on or about July 16, 2021, FBI Birmingham’s Child Exploitation and Human Trafficking Task Force received a priority lead regarding a 14-year-old female reported missing out of Madison, Wisconsin. FBI Birmingham and Homewood Police Special Investigations Unit launched an immediate investigation to find and recover the child.  They located her through an advertisement on a website known for commercial sex advertisements.  A task force officer responded to the number posted in the advertisement, the minor victim replied, and provided the address to meet.  Members of the task force responded to a local hotel and located the juvenile victim in the hotel room with Alexander.  Further investigation revealed child pornography involving Alexander and the juvenile victim located on Alexander’s cell phone.

FBI Birmingham’s Child Exploitation Human Trafficking Task Force investigated the case, with the assistance of the Homewood Police Special Investigations Unit.  Assistant United States Attorneys Darius Greene and R. Leann White are prosecuting the case.

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

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Huntsville Man Sentenced to 10 Years in Prison for Carjacking

Source: US FBI

HUNTSVILLE, Ala. – A federal judge on Friday sentenced a Huntsville man for carjacking, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.

U.S. District Judge Abdul K. Kallon sentenced Deondre Cleveland Day, 22, to 120 months in prison. Day pleaded guilty in August 2021 to one count of carjacking, and one count of conspiracy to discharge a firearm during a crime of violence.

According to the plea agreement, on September 24, 2019, Day and a juvenile co-defendant robbed the victim, stealing his car keys, guns, and cell phone. During the robbery, the victim was struck in the head with a handgun. Day and the juvenile then fled in the victim’s car. Later, when Huntsville Police spotted the car, Day led officers on a high-speed chase and shots were fired from the vehicle, striking the windshield of a Huntsville Police vehicle several times. Day and the juvenile then fled on foot.

“Combating violent gun crimes is a priority for my office and this district,” U.S. Attorney Escalona said. “Today’s sentence shows the seriousness of this offense, and I am grateful for the tireless efforts of our partner agencies on this case.”

“I want to thank the members of the North Alabama Violent Crime Task Force, and particularly our partners with the Huntsville Police Department, U.S. Marshals Gulf Coast Regional Fugitive Task Force, and the Madison County Sheriff’s Office for their work in bringing Day to justice,” SAC Sharp said. “The FBI will continue to work closely with our partners to address violent crime in north Alabama.”

FBI investigated the case along with the Huntsville Police Department, North Alabama Violent Crime Task Force, U.S. Marshals Gulf Coast Regional Fugitive Task Force, and the Madison County Sheriff’s Office. Assistant U.S. Attorney Russell Penfield prosecuted the case.

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Alabama Man Sentenced to 160 Years of Imprisonment for Soliciting Videos and Webcam Shows of Filipina Children Being Sexually Abused

Source: US FBI

A federal judge sentenced an Alabama man today to 160 years’ imprisonment for using internet applications to seek images and live transmissions of the violent sexual abuse of Filipina children as young as five years old. 

Benjamin Walter, 41, of Decatur, was convicted by a federal jury on Oct. 5, 2021, of four counts of producing and attempting to produce child pornography and one count each of receiving and distributing child pornography. 

According to court documents and evidence presented at trial, Walter used two web service provider accounts, including messenger and webcam applications, to seek women in the Philippines to sexually abuse their own children and relatives. Walter’s requests to these women, which spanned approximately three years, included directions to arrange for the gang rape of young children and to sexually assault several young children in other harmful ways. 

Walter sent money to the Philippines for the videos, images, and live transmissions via Moneygram, Western Union, and other money remitters in $25 to $50 increments. In addition to the live webcam shows, Walter also sent and received emails to which the senders attached images and videos of young children engaged in sex acts with adult men. This investigation and prosecution were part of a joint FBI and Homeland Security Investigations operation that targeted the buyers and sellers of these types of webcam shows in the Philippines.

The FBI’s Huntsville Field Office investigated the case.

Trial Attorneys Charles Schmitz and Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney R. Leann White of the Northern District of Alabama are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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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Leader of Alabama Chapter of Oath Keepers Pleads Guilty to Seditious Conspiracy and Obstruction of Congress for Efforts to Stop Transfer of Power Following 2020 Presidential Election

Source: US FBI

Defendant Participated in Plot to Use Force to Oppose Execution of U.S. Laws, Including the Attack on the Capitol During the Certification Proceeding

            WASHINGTON – A regional leader of the Oath Keepers pleaded guilty today to seditious conspiracy and obstruction of an official proceeding for his actions before, during and after the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

            Joshua James, 34, of Arab, Alabama, pleaded guilty to seditious conspiracy in connection with the Capitol breach. As part of the plea agreement, James has agreed to cooperate with the government’s ongoing investigation.

            As described in court documents, James is the regional leader in charge of the Alabama chapter of the Oath Keepers. The Oath Keepers are a large but loosely organized collection of individuals, some of whom are associated with militias. Though the Oath Keepers will accept anyone as members, they explicitly focus on recruiting current and former military, law enforcement, and first-responder personnel.

            In his guilty plea, James, a military veteran, admitted that, from November 2020 through January 2021, he conspired with other Oath Keeper members and affiliates to use force to prevent, hinder and delay the execution of the laws of the United States governing the transfer of presidential power.  He used encrypted and private communications, equipped himself with a variety of weapons, donned combat and tactical gear, and was prepared to answer a call to take up arms.

            According to court documents, on Jan. 4, 2021, James and others traveled to the Washington, D.C. metropolitan area. He brought a semi-automatic handgun and stored multiple firearms at a Virginia hotel. On Jan. 6, after learning the Capitol had been breached, James and others traveled to the Capitol on golf carts, driving around multiple barricades, including marked law enforcement vehicles. James was wearing a backpack, a combat shirt, tactical gloves, boots, a paracord attachment, and an Oath Keepers hat and patches. He and others unlawfully entered the Capitol together through the East Rotunda doors. Inside the Rotunda, James assaulted a Metropolitan Police Department officer by grabbing the officer’s vest and pulling him towards the mob. While pulling the officer, James yelled, “Get out of my Capitol! This is not yours! This is my Capitol!” James was expelled by law enforcement, including at least one officer who aimed chemical spray at him.

            On the evening of Jan. 6, 2021, James and others heard that law enforcement was searching for them and immediately departed the Washington, D.C. metropolitan area. Soon after, James traveled to Texas to join with the leader of the Oath Keepers and other co-conspirators. There, he helped co-conspirators amass thousands of dollars’ worth of firearms, ammunition, and firearms equipment – some of which he later stored in storage sheds in Alabama – and prepared to distribute the equipment to others and to engage in violence in the event of a civil war.

            James was arrested on March 9, 2021. He was among 11 defendants indicted on Jan. 12, 2022, in the District of Columbia on seditious conspiracy and other charges; the others have pleaded not guilty. James faces up to 20 years in prison for seditious conspiracy and up to 20 years for obstruction of an official proceeding, along with potential financial penalties. No sentencing date was set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

            The 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 Northern District of Alabama.

             The case is being investigated by the FBI’s Washington and Birmingham Field Offices.

             In the 13 months since Jan. 6, more than 750 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 235 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.

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Hugo Resident Pleads Guilty to Possessing Child Sexual Exploitation Material

Source: US FBI

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven Mark McAnally, age 65, of Hugo, Oklahoma, entered a guilty plea to one count of possessing certain material involving the sexual exploitation of a minor.

The Indictment alleged that in July 2023, McAnally knowingly possessed visual depictions from the internet of minors engaging in sexually explicit conduct, which McAnally accessed with intent to view.

The charges arose from an investigation by the Choctaw Nation Lighthorse Police and the Federal Bureau of Investigation.

The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.  McAnally was remanded into the custody of the United States Marshals Service pending sentencing.

Assistant U.S. Attorney Caila M. Cleary represented the United States.

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Choctaw County Resident Pleads Guilty to Murder

Source: US FBI

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bryson Noel Miller, age 19, of Fort Towson, Oklahoma, entered a guilty plea to one count of Murder in Indian Country.

The Indictment against Miller alleged that on December 23, 2020, Miller killed the victim willfully, deliberately, maliciously, with premeditation and malice aforethought.

According to investigators, on the afternoon of December 22, 2020, Miller, Ashlie Nicole Rose Martin, and Chad Jon’Dale Voyles planned the murders of Martin’s parents, then set their plan into motion.  As part of that plan, Miller participated in bludgeoning Martin’s father to death.  The crimes occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.

The charge arose from an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the Oklahoma Highway Patrol, and the Choctaw County Sheriff’s Office.

The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, Oklahoma, accepted Miller’s plea, ordered the completion of a presentence investigation report, and remanded Miller to the custody of the U.S. Marshals pending sentencing.

Assistant U.S. Attorney Benjamin D. Traster represented the United States.

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Muskogee Resident Sentenced for Attempted Robbery

Source: US FBI

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Matthew Staton, age 29, of Muskogee, Oklahoma, was sentenced to 105 months in prison for one count of Attempted Robbery in Indian Country.

The charge arose from an investigation by the Federal Bureau of Investigation and the Muskogee Police Department.

On July 11, 2024, Staton pleaded guilty to the charge.  According to investigators, on January 4, 2020, Staton attempted to rob a shopper at gunpoint in a Muskogee parking lot.  When Staton’s target refused, Staton pistol whipped the shopper, then fired off two rounds in the shopper’s direction as the shopper fled.  The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.

The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.  Staton will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

Assistant U.S. Attorney Jordan Howanitz represented the United States.

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FBI Cleveland Reminds the Public About Scams Targeting Americans During National Consumer Protection Week

Source: US FBI

CLEVELAND, OH—With the FBI release of the 2023 Internet Crime Report and National Consumer Protection Week upon us, FBI Cleveland Special Agent in Charge Greg Nelsen reminds the public about scams and frauds originating from across the globe that target Americans, leaving a trail of victims from coast to coast, including right here in Northern Ohio.

In 2023, phishing, which is the use of unsolicited email, text messages, and telephone calls purportedly from a legitimate company requesting personal, financial, and/or login credentials, was one of the most active Internet-based crimes according to the FBI IC3.gov report. According to the report, over 298,000 people reported phishing-based crimes in 2023. Simply, phishing is just like fishing; the criminal casts a “line” via email, text, or pop-up message to see if there are any nibbles and bites. Eventually, someone ends up taking the bait, consequently, getting reeled in as the catch of the day. As a result, the victim’s computer or device has been compromised and open to hackers, malware, ransomware, and other damaging tools that steal passwords, bank account information, or shut down ones access to their own computer system.

“In 2023, The FBI’s Internet Crime Complaint Center received 880,418 complaints with potential losses exceeding $12.5 billion. This is almost a 10% increase in complaints from 2022 (800,944 complaints received) and a 22% increase in losses from 2022 ($10.3 billion). That’s more than 2,400 complaints every single day,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “Ohio ranked number five in the top 10 states of complaints, and number 17 in victim losses at over $197 million. And while we don’t like to see that number grow, we want to remind everyone to step up and report the crime or attempted scam. That is the only way we can identify criminals, investigate their actions, and dismantle their network.”

As scams continue to increase in scope and sophistication, it’s important that law enforcement and the public work together to stay ahead of the risks. If you have been a victim of an Internet-based financial crime, there is some optimism for recovery. The FBI IC3 Recovery Asset Team (RAT), established in February 2018, streamlines communication with financial institutions and assists FBI field offices with the freezing of funds for victims who made transfers to domestic accounts under fraudulent pretenses. The RAT has about a 71% success rate, with $538MM in losses frozen of the $758MM total losses. This greatly reduced the amount of money that would have been “paid” to bad actors by unsuspecting victims.

Protection Against Phishing Campaigns

  • The FBI recommends network defenders apply the following mitigations to reduce the risk of compromise:
    • At work: Educate employees on how to identify phishing, spear-phishing, social engineering, and spoofing attempts.
      • Advise employees to be cautious when providing sensitive information—such as login credentials—electronically or over the phone, particularly if unsolicited or anomalous. Employees should confirm, if possible, requests for sensitive information through secondary channels.
      • Create protocols for employees to send suspicious emails to IT departments for confirmation.
      • Mark external emails with a banner denoting the email is from an external source to assist users in detecting spoofed e-mails.
      • Enable strong spam filters to prevent phishing emails from reaching end users. Filter emails containing executable files from reaching end users.
      • Advise training personnel not to open email attachments from senders they do not recognize.
    • At home: Never accept a pop-up request or open a link that asks you to give control of your computer to another person or perceived entity.
    • Do not give our personal identifying information or provide information as a “correction” if the other person is close.
    • Require all accounts with password logins (e.g., service accounts, admin accounts, and domain admin accounts) to have strong, unique passphrases. Passphrases should not be reused across multiple accounts or stored on the system where an adversary may have access. (Note: Devices with local administrative accounts should implement a password policy that requires strong, unique passwords for each administrative account.)
    • Require multi-factor authentication for all services to the extent possible, particularly for webmail, virtual private networks, and accounts that access critical systems.
    • If there is evidence of system or network compromise, implement mandatory passphrase changes for all affected accounts.
    • Keep all operating systems and software up to date. Timely patching is one of the most efficient and cost-effective steps an organization can take to minimize its exposure to cybersecurity threats.
    • Advise family members not to open email attachments from senders they do not recognize and learn how to check carefully for “look-alike” emails and attachments.
    • Enable strong spam filters to prevent phishing emails from reaching end users. Filter emails containing executable files from reaching end users.

Since its inception, IC3 has received over 8 million complaints. To learn more about these and other scams targeting Americans visit FBI.gov, and if you believe you are the victim of a scam, take action by reporting it to the FBI’s Internet Crime Complaint Center at IC3.gov or by contacting your local law enforcement agency.