Category: MIL-OSI

Source: US FBI

FRESNO, Calif. — A federal grand jury has indicted three individuals for conspiracy to distribute narcotics and introducing a controlled substance into prison as a result of an ongoing investigation into the death of a Supervisory Correctional Systems Specialist at the U.S. Penitentiary in Atwater, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between July 15, 2024, and Aug. 9, 2024, Jamar Jones, 35, an inmate at USP Atwater; Stephanie Ferreira, 35, of Evansville, Indiana; and Jermen Rudd III, 37, of Wentzville, Missouri, conspired to introduce narcotics into USP Atwater for Jones to sell. As part of that scheme, Jones and Ferreira had Rudd mail a letter laced with narcotics to Jones that was fraudulently labeled as legal mail.

On Aug. 9, 2024, two correctional workers at USP Atwater opened the letter and minutes later began to feel ill. After evaluation by medical staff, the Supervisory Correctional Systems Specialist was subsequently taken to the hospital where he passed away. The other staff member, a Correctional Systems Officer, recovered.

The indictment charges that the narcotics in the letter consisted of two varieties of synthetic cannabinoids sold under the street name “Spice.” Synthetic cannabinoids are lab created chemicals that can be distributed in liquid form and are designed to produce a psychoactive effect.

This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Federal Bureau of Prisons, with assistance from the Drug Enforcement Administration. The U.S. Attorney’s Office for the Eastern District of California also received assistance from the U.S. Attorney’s Offices in the Eastern District of Missouri and the Southern District of Indiana. Assistant U.S. Attorney Robert Veneman-Hughes is prosecuting the case.

Following an initial appearance in the Southern District of Indiana, Ferreira remains in custody and is pending transfer to the Fresno. Following an initial appearance in the Eastern District of Missouri, Rudd is also in custody and pending transfer to Fresno. Jones will appear Thursday in Fresno for his initial appearance.

If convicted of conspiracy to distribute and distribution of a controlled substance, Jones and Rudd face a maximum of 30 years in prison and a fine up to $250,000. If Jones is convicted of being an inmate obtaining or attempting to obtain narcotic drug, he faces a maximum of 20 years in prison and a fine up to $250,000. Ferreira, if convicted of conspiracy to distribute and distribution of a controlled substance, faces a maximum penalty of 20 years in prison and a fine up to $250,000. If convicted of providing or attempting to provide an inmate with a narcotic drug, Ferreira and Rudd face a maximum sentence of 20 years in prison and a fine up to $250,000. 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.

Source: US FBI

LOS ANGELES – An Orange County man was sentenced today to 87 months in federal prison for defrauding companies who in mid-2020 paid more than $3 million for COVID-related medical protective equipment that was never delivered.

Christopher John Badsey, 63, of Lake Forest, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $1,938,990 in restitution.

Badsey pleaded guilty in April 2023 to four counts of wire fraud.

In June and July of 2020, Badsey lied to three victim companies when he told them he had access to millions of boxes of nitrile gloves through his Irvine-based company, First Defense International Security Services Corp. (FDI). This type of personal protective equipment was in high demand and short supply during the early months of the COVID-19 pandemic.

Badsey agreed by contract to sell millions of boxes of gloves to each of the three companies.  But he told the companies’ representatives that before they could inspect the gloves, which he claimed were stored in a Los Angeles warehouse, the companies would be required to pay deposits of upwards of $1 million to FDI. In fact, Badsey did not have any gloves stored in any warehouse.

Badsey instructed the companies to wire the deposits to accounts controlled by himself, FDI or a co-schemer. Relying on Badsey’s false statements, the companies wired a total of $3,231,990 to these accounts.

“[Badsey]…used the deposit money to make expensive purchases, all while stringing would-be purchasers along with false stories, including absurd claims that government agents were blocking access to his warehouse of gloves,” prosecutors argued in a sentencing memorandum.

He has forfeited all title and interest in money or items derived from his crimes, including a yacht, a pontoon boat, two Mercedes-Benz automobiles, two Ford pickup trucks, an RV, a tractor, three ATVs, miscellaneous fishing equipment, and $58,923 in cash.

The FBI investigated this matter.

Assistant United States Attorneys Kristin N. Spencer and Melissa S. Rabbani of the Santa Ana Branch Office prosecuted this case.

Source: US FBI

A fugitive was in federal court in Los Angeles on Monday for an initial appearance following his arrest earlier this month in Arizona on charges including the attempted enticement of a minor to engage in criminal sexual activity and possession of child sexual abuse material.

Christopher Michael Loza, 47, also known by his online moniker of “ChrisLewd,” was charged in the two-count indictment filed in United States District Court in Los Angeles in January 2024 following an investigation by the Ventura County Child Exploitation Task Force. Investigators conducted an undercover operation during which Loza allegedly made contact in an online chatroom with someone he believed to be a 15-year-old female. During the conversation, Loza allegedly made several comments indicating that he wanted to engage in sexual activities with the victim, who was actually an undercover officer.

According to the federal indictment, Loza sent messages, including, “How old are u…I’m 45. Is that ok?” Loza is alleged to have asked via text whether he could come to the minor’s house, followed by a series of lewd sexual messages, including questioning whether “to get condoms.” The indictment further alleges that Loza drove to a park in Camarillo to meet the minor and that he knowingly possessed a flash drive that contained child pornography which involved prepubescent minors and minors under the age of 12.

Loza was initially arrested in 2023 on state charges filed by the Ventura County District Attorney and released on bail. After failing to appear for his arraignment on the state charges of communicating with a minor with the intent to commit sexual acts and
arranging to meet a child for sexual acts, members of the Task Force made attempts to locate Loza but determined he may have fled.

On August 02, 2024, Officers with the Repeat Offender Program at the Phoenix Police Department (PD) came into contact with Loza during their outreach and enforcement efforts. While identifying city and state code violations, Phoenix PD conducted a records check on Loza, discovered his outstanding warrant, and took Loza into custody after Loza attempted to flee. Loza was later turned over to Agents with the FBI’s Phoenix Division and was transported to Los Angeles by the United States Marshals Service for federal prosecution.

During his initial appearance on Monday, the court granted the government’s request for detention and Loza was remanded to federal custody. A trial date has been set for October 7. If convicted of the charges in the indictment, Loza faces a statutory maximum sentence of life in prison.

This case was investigated by the Ventura County Child Exploitation and Human Trafficking Task Force which is comprised of investigators and prosecutors with the Ventura County District Attorney’s Office; the Ventura County Sheriff’s Office; the Simi Valley Police Department; the Oxnard Police Department; the Ventura Police Department; the Santa Barbara County Sheriff’s Office; the California Highway Patrol; the FBI’s Ventura Resident Agency; and United States Attorney’s Office. The Task Force is committed to identifying, rescuing, and protecting children from sexual exploitation and abuse through education, enforcement and through partnerships with local, state, and federal agencies. The FBI’s Phoenix Field Office and the Phoenix Police Department assisted with the transport of Loza.

The United States Attorney’s Office in Los Angeles is prosecuting the case against Loza.

Source: US FBI

LOS ANGELES – A former San Luis Obispo County sheriff’s deputy was sentenced today to seven months in federal prison for abusing a county jail inmate by dragging the victim by her hair on the ground from one cell by several feet and then throwing her into another jail cell.

Joshua Fischer, 42, of Grover Beach, was sentenced by United States District Judge André Birotte Jr.

At today’s hearing, Judge Birotte said Fischer’s actions toward the victim showed a “level of callousness” and “disdain” toward the victim and that his use of force was “unreasonable.” 

Fischer pleaded guilty on April 2 to one misdemeanor count of deprivation of rights under color of law. As part of his plea agreement, Fischer agreed to not seek future employment as a sworn law enforcement officer.

Fischer was a sworn law enforcement officer and San Luis Obispo County Sheriff’s Office senior correctional deputy assigned to work at the Intake Release Center in the city of San Luis Obispo between January 2017 and December 2018.

While on duty on November 18, 2018, Fischer instructed the victim, a jail inmate, to exit her cell, which she did. Fischer then directed her to enter an adjacent cell. After arguing with Fischer, the victim, who was shirtless, turned around, crossed her arms across her chest, and started to re-enter her original cell.

Fischer forcibly grabbed the victim by her hair and pulled her to the ground. He then dragged the victim across the floor by her hair several feet. Fischer then flung the victim, again by her hair, into an adjacent cell. After Fischer closed the cell door, the victim huddled in the corner of the cell.

Fischer then authored a report about the incident and saved it as “11-18-18 [victim’s last name] what a drag” on a San Luis Obispo County Sheriff’s Office computer.

In his plea agreement, Fischer admitted that he knew his use of force during the November 2018 incident was unreasonable and unnecessary. He also admitted that he acted willfully, intending to deprive the victim of her right to be free from the use of unreasonable and unnecessary force by a law enforcement officer.

Prior to the filing of charges in this case, the San Luis Obispo County Sheriff’s Office terminated Fischer’s employment.

The FBI investigated this matter with assistance from the San Luis Obispo County Sheriff’s Office.

Assistant United States Attorneys Thomas F. Rybarczyk and Frances S. Lewis of the Public Corruption and Civil Rights Section prosecuted this case.

Source: US FBI

            WASHINGTON – U.S.-Iranian national Jeffrey Chance Nader, 66, of Arcadia, California, was arrested on an indictment charging him with crimes related to the procurement of U.S.-manufactured aircraft components, including components used on military aircraft, in violation of U.S. economic sanctions and other federal laws. The charges were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, FBI Assistant Director David Sundberg of the Washington Field Office, and Assistant Secretary for Export Enforcement Matthew S. Axelrod.

            According to the indictment, beginning at least in 2023, Nader and others conspired to purchase and export – and attempted to export – from the United States to Iran four types of aircraft components, totaling nearly three dozen individual pieces. Some of these components are for use on military aircraft operated by Iran’s armed forces, including the F-4 fighter jet.

            Nader, acting on purchase orders he received from customers in Iran, would coordinate the purchase of relevant aircraft components with business associates in Iran, by which they would reach out to U.S.-based suppliers of such components. In several instances, Nader identified himself and his company, California-based Pro Aero Capital, to these U.S.-based suppliers as the end-user of these items. Victim companies in this procurement scheme were located across the United States.

            Once the aircraft components were obtained, Nader attempted to export the items on multiple separate occasions. The items were then transshipped to the ultimate customer in Iran. None of the transactions discussed in the indictment were successfully exported; they were detained on export by a Special Agent with the Department of Commerce.

            “Attacks by Iran and its proxies on U.S. allies in the Middle East and its ongoing supply of Russia with drones and other technology to be used in its illegal war against Ukraine demonstrate why we must do all that we can to stop Iran from acquiring U.S. parts, services, and technology.”  said U.S. Attorney Matthew M. Graves. “The charges announced today represent the latest step in our ongoing effort to hold accountable those who illegally funnel goods and services to Iran and to deter others from doing the same.”

            “Today’s action demonstrates the Justice Department’s commitment to keeping military-grade equipment out of the hands of the Iranian regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will aggressively investigate, disrupt, and hold accountable criminal networks that supply sensitive technology to hostile and repressive governments in contravention of U.S. sanctions.”

            “Today’s indictment alleges that this defendant circumvented U.S. sanctions and illegally procured aircraft components on behalf of Iran,” said FBI Assistant Director in Charge David Sundberg, of the Washington Field Office. “These violations not only undermine the impact of U.S sanctions but can also adversely affect national security. The FBI and our law enforcement partners at the Department of Commerce will continue to identify and disrupt those who seek to violate U.S. law and steal our technology on behalf of hostile nations.”

            “Iran has no business using U.S.-manufactured parts and components to keep their planes and drones in the sky,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod.  “Stopping these items before they get to our adversaries – like we did here – reflects the real-world impact we’re having through the Disruptive Technology Strike Force.”

            Nader was arrested yesterday and had an initial appearance in the Central District of California.

            This case is being investigated by the FBI’s Washington Field Office and the Commerce Department’s Bureau of Industry and Security. Significant assistance was provided by the FBI’s Los Angeles Field Office.  

            The case is being prosecuted by Assistant U.S. Attorney Steven B. Wasserman for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section. Significant assistance was provided by the U.S. Attorney’s Office for the Central District of California.

            This prosecution is being coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws. 

            An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: US FBI

SANTA ANA, California – An Orange County man, who ran a business in which he served as the executor of the estates of wealthy people, pleaded guilty today to embezzling nearly $6 million from his clients over a period of several years.

David Robert McDonnell, 74, of Laguna Beach, pleaded guilty to one count of wire fraud.

According to his plea agreement, from 2018 to January 2024, McDonnell ran a Laguna Beach-based company, McDonnell Business Services. Through his company, high-net-worth individuals hired McDonnell to be the executor of their trusts. As an executor, McDonnell’s job was to manage the trusts’ assets and – when the individuals died – to sell the assets and distribute the proceeds to the trusts’ beneficiaries. Instead of doing this, McDonnell liquidated the assets and diverted funds to his personal bank accounts.

McDonnell admitted in his plea agreement to misappropriating approximately $5.9 million from approximately four trusts.

For example, in August 2020, McDonnell wrote a check for $300,000 from the account of a victim trust located in Capistrano Beach to his own personal bank account. These funds were processed by Bank of America through computer servers in Texas.

United States District Judge James V. Selna scheduled a December 9 sentencing hearing, at which time McDonnell will face a statutory maximum sentence of 20 years in federal prison.

The FBI and the Laguna Beach Police Department are investigating this matter.

Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office is prosecuting this case.

Source: US FBI

Director Christopher Wray has named James A. Dawson as the special agent in charge of the Little Rock Field Office in Arkansas. Mr. Dawson most recently served as the SAC of Criminal and Cyber Division of the Washington Field Office.

Mr. Dawson joined the FBI as a special agent in 1999 and first worked on the Organized Crime and Drug Squad in the Milwaukee Field Office. He transferred in 2001 to the Kenosha Resident Agency, a satellite of the Milwaukee office, to cover multiple types of crimes. In 2003, he moved to the McAlester Resident Agency of the Oklahoma City Field Office, where he focused on public corruption. Mr. Dawson was named supervisory senior resident agency of the Muskogee Resident Agency in 2011, overseeing four offices in eastern Oklahoma.

In 2015, Mr. Dawson was promoted to assistant section chief of the Surveillance and Aviation Section in the Critical Incident Response Group. As assistant section chief, Mr. Dawson served as the national program manager of the FBI’s ground surveillance program. In 2016, he was appointed to lead CIRG’s front office—in charge of intelligence, finance, security, facilities, and technical units.

Mr. Dawson was promoted to assistant special agent in charge in the Criminal Division of the Washington Field Office in 2017. He supervised 12 squads, including those that worked public corruption, civil rights, and complex financial crimes. He returned to CIRG in 2018 as the section chief for the Counter Improvised Explosive Devices Section.

He was promoted to SAC of the Mission Services Division of the Washington Field Office in 2019, then transferred to SAC of the Criminal and Cyber Division in the office in 2020.

Mr. Dawson graduated from the U.S. Naval Academy and served as a surface warfare officer before joining the FBI.

Source: US FBI

LITTLE ROCK, AR—Special Agent in Charge (SAC) James Dawson of the Federal Bureau of Investigation (FBI) Little Rock Field Office is pleased to announce the 2020 FBI Director’s Community Leadership Award will be presented to Dr. Rajesh Nayak, a valued member of the FBI Little Rock InfraGard group.

“Dr. Nayak’s work in promoting FBI partnerships within our community is outstanding,” said SAC Dawson. “As an FBI ambassador in Arkansas, his ability to educate businesses, organizations, and neighbors on the multitude of threats we work helps protect our state. FBI Little Rock cannot fulfill our mission of protecting the American people without Arkansans like Dr. Nayak.”

Dr. Nayak’s tireless work with FBI Little Rock’s InfraGard program actively encourages the sharing of cyber-threat information with community and business leaders. The information he circulates in Arkansas educates and protects numerous businesses, hospitals, and schools from malicious cyber actors. Additionally, Dr. Nayak’s informed articulation of the threats Weapons of Mass Destruction (WMDs) pose encourages businesses and private organizations to contact FBI Little Rock for targeted briefings.

“I am incredibly humbled and honored to be the recipient of the FBI’s DCLA award,” said Dr. Nayak. “As President Roosevelt once stated, ‘This country will not be a good place for any of us to live in unless we make it a good place for all of us to live in.’ I share this recognition with the FBI Little Rock Field Office staff and members of the FBI Citizens Academy. They work tirelessly with the community groups, businesses, and the public to disseminate critical infrastructure threat information— thereby protecting Americans and safeguarding our way of life. I am exceptionally gratified working with these honorable men and women who strive every day to make our community a better and safer place to live.”

The FBI Director’s Community Leadership Award was formally created in 1990 to honor individuals and organizations for their efforts in combating crime, terrorism, drugs, and violence in the United States. Every year, FBI field offices throughout the country select a community partner to receive the prestigious award. Last year’s Arkansas recipient was Sophia Said, an advocate for hate crime and terrorism education throughout law enforcement organizations and within various communities.

FBI Little Rock congratulates Dr. Rajesh Nayak and thanks him for his work in protecting our Arkansas communities.

Source: US FBI

      LITTLE ROCK—Law enforcement authorities have announced the results of a targeted effort to curb violent crime in Little Rock. “Operation Ceasefire” took place each day last week and resulted in 61 arrests of some of Little Rock’s most wanted. These efforts are part of a series of law enforcement actions that combine federal, state, and local resources to reduce gun crime.

      Beginning on June 7 and continuing through the rest of last week, law enforcement identified the most violent targets in the Little Rock area, focusing on individuals who had active warrants for their arrests. The United States Marshals Service, Little Rock Police Department (LRPD), and the FBI’s Gang Enforcement Task Force—known as GETROCK—combined their resources to identify, locate, and arrest 61 wanted individuals in the Little Rock area.

      Those arrested were wanted for crimes including capital murder, rape, aggravated assault, battery, terroristic act, aggravated robbery, and various drug and other charges. Approximately 10 of these targets were arrested for federal indictments charging them with being a felon in possession of a firearm. The 61 people who were arrested have been charged with 78 total felonies and 27 total misdemeanors. During the arrests, authorities seized 12 firearms and $16,095 in cash associated with criminal activity.

      Statistics collected by LRPD indicate violent crime has increased 16% from 2020 to 2021. These arrests are part of a continued effort to combat violent crime in the Little Rock area and were conducted by the United States Marshals Service, the FBI GETROCK task force and their participating agencies: LRPD, Arkansas State Police, North Little Rock Police Department, Arkansas Department of Community Corrections, Pine Bluff Police Department, and Arkansas Air National Guard Counter Drug Unit.

      An indictment contains only allegations. Defendants are presumed innocent unless and until proven guilty.

# # #

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

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

https://www.justice.gov/edar

Twitter:

@EDARNEWS

Source: US FBI

FORT SMITH – A Fort Smith physician, Donald E. Hinderliter, was sentenced today to 4 years in federal prison followed by 1 year of supervised release on one count of Distribution of a Controlled Substance without an Effective Prescription. The Honorable Judge P. K. Holmes III presided over the sentencing hearing in the U.S. District Court in Fort Smith.

According to court documents, Hinderliter, 85, of Fort Smith, pleaded guilty to a felony Information charging unlawful distribution of a controlled substance namely, alprazolam. From approximately January 2016 and through November 8, 2018, Hinderliter was an owner and practitioner at Hinderliter Pain Clinic that operated as a pain management clinic in Barling, Arkansas. In May 2017, the Drug Enforcement Administration (DEA) received several anonymous complaints that Hinderliter was operating a “pill mill” under the name Hinderliter Pain Clinic. The complaints stated that Hinderliter and his associate, Dr. Cecil W. Gaby, charged cash, prescribed hydrocodone and benzodiazepines in the same amount to patients regardless of a particular patient’s prognosis or need, and that patients traveled great distances within the state of Arkansas and surrounding states seeking large quantities and dangerous combinations of oxycodone, hydrocodone, alprazolam, and methadone, among other controlled substances. As part of the plea, Hinderliter admitted that he prescribed opioids and benzodiazepines to more than 150 individuals, often not for a legitimate medical purpose and not in the usual course of professional practice. Specifically, on October 17, 2016, Hinderliter prescribed 84 alprazolam 2mg pills, a Schedule IV controlled substance to a patient that was not for a legitimate medical purpose and not in the usual course of professional practice.

On May 27, 2021, Dr. Cecil W. Gaby was sentenced to 120 months imprisonment for his role in the Hinderliter Pain Clinic and Gaby Medical Clinic in Fort Smith, Arkansas. On the same date, Dr. Robin Cox was sentenced to 36 months imprisonment for distribution of opioid medications outside legitimate medical practice at an unrelated clinic in Rogers, Arkansas.

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

The Drug Enforcement Administration (DEA), DEA Diversion Little Rock, Federal Bureau of Investigation (FBI), the United States Department of Health and Human Services Office of Inspector General (HHS), Arkansas State Medical Board and the Fort Smith Police Department investigated the case.

Special Assistant U.S. Attorney Anne Gardner and Assistant U.S. Attorney Brandon Carter prosecuted the case for the United States.