Category: MIL-OSI

Source: US FBI

FRESNO, Calif. — Jyoteshna Karan, 52, and Praveen Singh, 45, both of Modesto, were sentenced for leading a multi-million dollar mortgage fraud scheme, Acting United States Attorney Michele Beckwith announced today.  Karan received three years and four months in prison, and Singh received two years.

According to court records, from 2006 through 2015, Karan and Singh conspired to make straw purchases and short sales of approximately 15 homes from Modesto to Sacramento.  A straw purchase is where one person buys a home on behalf of another person to get around certain restrictions.  Straw purchases are generally illegal in the real estate industry because they compromise lenders’ risk management practices.  A short sale is where a homeowner sells their home for less than the amount they owe on their mortgage, with lender approval, to avoid foreclosure.  Short sales must generally be arm’s length transactions in the real estate industry because that helps protect buyers and sellers from undervaluation, overpayment, and bias.

After Karan and Singh acquired the homes, they allowed them to go into foreclosure and arranged for short sales with the lenders.  They then quickly resold, or flipped, the homes to other people at market rates and therefore reaped significant profits.  In doing so, they caused the lenders to suffer over $3,000,000 in losses.

Karan and Singh were experienced real estate professionals who used unwitting participants, fabricated documents, and shell companies to carry out their fraud.  For example, they used Singh’s mother as one of the straw purchasers, fabricated documents to make it appear as though the straw purchasers worked for their shell companies making six figure salaries, and fabricated documents to make it appear as though the transactions were arm’s length.  This was all done to convince the lenders to go through with the deals.

This case is the product of an investigation by the FBI, FDIC OIG, and the Stanislaus County District Attorney’s Office.  Assistant United States Attorney Joseph Barton prosecuted the case.

Source: US FBI

PHOENIX, Ariz. – Eric Thomas Scionti, 36, of Tempe, was sentenced on Tuesday by United States District Judge John J. Tuchi to 47 months in prison, followed by three years of supervised release. Scionti pleaded guilty to Possession of a Firearm and Ammunition by a Prohibited Person and Animal Crushing in two separate cases on October 3, 2024. 

On January 18, 2023, pursuant to a search warrant, federal agents seized six firearms and 1,826 rounds of ammunition from areas of a residence controlled by the defendant. Scionti had previously been convicted of multiple Arizona state felonies and was consequently prohibited by federal law from possessing firearms or ammunition.

On September 29, 2023, federal agents received authorization to search records and information associated with Scionti’s email account. During that search, agents seized approximately 168 videos and 89 digital photographs depicting Scionti torturing and mutilating live pigeons.

The Federal Bureau of Investigation conducted the investigations in these cases. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecutions.
 

CASE NUMBER:            CR-23-00600-PHX-JJT
                                       CR-24-00890-PHX-JJT
RELEASE NUMBER:    2025-019_Scionti

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

Source: US FBI

SANTA ANA, California – An Orange County man was found guilty by a jury today of federal child sexual exploitation crimes for befriending a 13-year-old girl, providing her with alcohol, and sexually assaulting her, taking photographs and making videos of the attack.

Jonathan Gonzalez-Reyes, 38, of Anaheim, was found guilty of one count of production of child pornography, two counts of distribution of child pornography, and one count of possession of child pornography. He has been in federal custody since June 2024.

According to evidence presented at a three-day trial, in February 2021, Gonzalez-Reyes and a co-defendant, Nanci Jasmin Castillo, 32, of Anaheim, befriended the victim, a 13-year-old girl identified in court documents as “Minor Victim 1.” 

At Castillo’s home, Castillo and Gonzalez-Reyes sexually assaulted the victim – to whom Castillo had given an alcoholic beverage after the victim previously had taken Xanax anti-anxiety medication – while the victim was going in and out of consciousness. Gonzalez-Reyes and Castillo photographed and made videos of the attack.

A search of Gonzalez-Reyes’ phone and Castillo’s iCloud account by law enforcement revealed the existence of child sexual abuse material (CSAM) depicting the victim and the defendants. Additionally, law enforcement found evidence that Gonzalez-Reyes sent copies of the CSAM to Castillo.

In September 2021, Gonzalez-Reyes used a cellphone to knowingly possess and distribute images of the same victim, knowing the images showed a minor engaged in sexually explicit conduct.

United States District Judge David O. Carter scheduled a July 28 sentencing hearing, at which time Gonzalez-Reyes will face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of 30 years in federal prison. 

Castillo, who also has been in federal custody since June 2024, pleaded guilty on February 5 to one count of production of child pornography. She too will face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of 30 years in federal prison at her sentencing hearing, which is scheduled for July 28.

The FBI investigated this matter with assistance from the Anaheim Police Department, the Los Angeles Regional Human Trafficking Task Force, the Los Angeles County Department of Children and Family Services, and ZOE International.

Assistant United States Attorneys Chelsea Norell of the Violent and Organized Crime Section and Blake Hannah of the General Crimes Section are prosecuting this case.

Source: US FBI

PHOENIX, Ariz. – Keanu Rudy Dude, 25, an enrolled member of the San Carlos Apache Tribe and a San Carlos, Arizona resident, was arrested today on an outstanding indictment issued by a federal grand jury in Phoenix. He is charged with Arson for the July 2024 Watch Fire on the San Carlos Apache Indian Reservation.

The Watch Fire burned over 2,000 acres of land owned by the San Carlos Apache Tribe. Twenty-one homes identified in the indictment were destroyed by the fire. Four hundred families had to be evacuated from their homes and the areas surrounding San Carlos. Dude will have his initial appearance on Monday, February 24, 2025.

An indictment is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The FBI’s Phoenix Field Office, the Bureau of Indian Affairs, the San Carlos Apache Police and Fire Departments and the San Carlos Ranger and Forestry Departments conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
 

CASE NUMBER:           CR-24-1579-PHX-DJH
RELEASE NUMBER:    2025-022_Dude

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

 

Source: US FBI

LOS ANGELES – A Santa Clarita man has agreed to plead guilty to hacking the personal computer of an employee of The Walt Disney Company last year, obtaining login information, and using that information to illegally download confidential data from the Burbank-based mass media and entertainment conglomerate via the employee’s Slack online communications account.

Ryan Mitchell Kramer, 25, has agreed to plead guilty to an information charging him with one count of accessing a computer and obtaining information and one count of threatening to damage a protected computer.

In addition to the information, prosecutors today filed a plea agreement in which Kramer agreed to plead guilty to the two felony charges, which each carry a statutory maximum sentence of five years in federal prison.

Kramer is expected to make his initial appearance in United States District Court in downtown Los Angeles in the coming weeks.

According to his plea agreement, in early 2024, Kramer posted a computer program on various online platforms, including GitHub, that purported to be computer program that could be used to create A.I.-generated art. In fact, the program contained a malicious file that enabled Kramer to gain access to victims’ computers. 

Sometime in April and May of 2024, a victim downloaded the malicious file Kramer posted online, giving Kramer access to the victim’s personal computer, including an online account where the victim stored login credentials and passwords for the victim’s personal and work accounts. 

After gaining unauthorized access to the victim’s computer and online accounts, Kramer accessed a Slack online communications account that the victim used as a Disney employee, gaining access to non-public Disney Slack channels. In May 2024, Kramer downloaded approximately 1.1 terabytes of confidential data from thousands of Disney Slack channels.

In July 2024, Kramer contacted the victim via email and the online messaging platform Discord, pretending to be a member of a fake Russia-based hacktivist group called “NullBulge.” The emails and Discord message contained threats to leak the victim’s personal information and Disney’s Slack data.

On July 12, 2024, after the victim did not respond to Kramer’s threats, Kramer publicly released the stolen Disney Slack files, as well as the victim’s bank, medical, and personal information on multiple online platforms.

Kramer admitted in his plea agreement that, in addition to the victim, at least two other victims downloaded Kramer’s malicious file, and that Kramer was able to gain unauthorized access to their computers and accounts.

The FBI is investigating this matter.

Assistant United States Attorneys Lauren Restrepo and Maxwell Coll, both of the Cyber and Intellectual Property Crimes Section, are prosecuting this case.

Source: US FBI

TUCSON, Ariz. – Ronald Diaz, age 41, of Tucson, was sentenced on Tuesday by United States District Judge Scott H. Rash to 22 months in prison. Diaz pleaded guilty to Wire Fraud on July 18, 2024.

While working as a financial advisor, Diaz engaged in a scheme to defraud one of his elderly clients. To induce the victim into the scheme, Diaz falsely represented an investment opportunity in an “annuity” that “guaranteed” a 10% return. Between November 2020 and July 2022, to disguise his scheme, Diaz directed the victim to transfer $970,000 to Diaz’s family members. Diaz then instructed his family to distribute most of the victim’s funds back to Diaz. Diaz used large portions of the victim’s money for his own personal use including: (1) gambling at casinos; (2) a down payment for a 2021 Range Rover; (3) payments for credit card debt; (4) to remodel Diaz’s family pool; (5) mortgage payments; and (6) other personal expenses. Diaz made some “interest” payments to entice the victim into providing additional money throughout the scheme. None of the victim’s money was used towards any legitimate investment. During the investigation of the case, the victim passed away. As part of his sentence, Diaz was ordered to pay the victim’s next of kin $867,510.37 for the loss the victim suffered as a result of the scheme. 

The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
 

CASE NUMBER:           CR-24-04092-TUC-SHR
RELEASE NUMBER:    2025-026_Diaz

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

Source: US FBI

            WASHINGTON – Christina Marie Chapman, 48, of Litchfield Park, Arizona, pleaded guilty today in U.S. District Court in Washington D.C. in connection with a scheme that assisted overseas IT workers—posing as U.S. citizens and residents—in working at more than 300 U.S. companies in remote IT positions. The scheme generated more than $17 million in illicit revenue for herself and for the Democratic People’s Republic of Korea (DPRK or North Korea).

            The plea was announced by U.S. Attorney Edward R. Martin, Jr., Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division; FBI Special Agent in Charge Jose A. Perez of the Phoenix Field Office, and IRS-CI Special Agent in Charge Carissa Messick for IRS Criminal Investigation’s Phoenix Field Office.

            Chapman pleaded guilty today to conspiracy to commit wire fraud, aggravated identity theft, and conspiracy to launder monetary instruments. U.S. District Court Judge Randolph D. Moss scheduled sentencing for June 16, 2025. Under the terms of the plea agreement, the parties will jointly recommend that the Court impose a sentence of 94 to 111 months in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

            According to court documents, Chapman, an American citizen, conspired with overseas IT workers from October 2020 to October 2023 to steal the identities of U.S. nationals and used those identities to apply for remote IT jobs and, in furtherance of the scheme, transmitted false documents to the Department of Homeland Security. Chapman and her coconspirators obtained jobs at hundreds of U.S. companies, including Fortune 500 corporations, often through temporary staffing companies or other contracting organizations.

            Chapman received and hosted computers from the U.S. companies, creating a “laptop farm” at her home, so that the companies would believe the workers were in the United States. As a result of Chapman’s assistance, the overseas IT workers gained access to the internal systems of the U.S. companies.

            Chapman’s overseas IT workers received more than $17.1 million for their work. Much of the income was falsely reported to the IRS and Social Security Administration in the names of actual U.S. individuals whose identities had been stolen.

            As a result of the conduct of Chapman and her conspirators, more than 300 U.S. companies were impacted, more than 70 identities of U.S. person were compromised, on more than 100 occasions false information was conveyed to DHS, and more than 70 U.S. individuals had false tax liabilities created in their name.

            This case was investigated by the FBI Counterintelligence Division, the FBI Phoenix Field Office, the U.S. Attorney’s Office for the District of Arizona, and IRS Criminal Investigation Phoenix Field Office with assistance from the FBI Chicago Field Office.

            It is being prosecuted by Assistant U.S. Prosecutors Joshua Rothstein, Karen Seifert, Thomas Gillice, and Trial Attorney Ashley Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section. Trial Attorney Gregory J. Nicosia Jr. of the National Security Division’s National Security Cyber Section provided valuable assistance.

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