Category: MIL-OSI

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Carlos Watson, Founder and Former CEO of Ozy Media Inc., Sentenced to 116 Months in Prison for Leading Multimillion-Dollar Fraud Scheme

Source: US FBI

When Watson Needed to Prove His False Claims To Investors, He Directed Conspirators to Forge Documents and Impersonate Executives from Other Companies

Earlier today, in federal court in Brooklyn, Carlos Watson, the founder and former Chief Executive Officer of Ozy Media, Inc. (Ozy), was sentenced by United States District Judge Eric R. Komitee to 116 months in prison for conspiracy to commit securities fraud, conspiracy to commit wire fraud and aggravated identity theft.  Watson was convicted in July 2024 following an eight-week trial.  Ozy, which was also convicted at trial, was sentenced to one year probation. Additional penalties of forfeiture and restitution will be imposed at a later date.

Breon Peace, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentences.

“Carlos Watson orchestrated a years-long, audacious scheme to defraud investors and lenders to his company, Ozy Media, out of tens of millions of dollars,” stated United States Attorney Peace.  “His incessant and deliberate lies demonstrated not only a brazen disregard for the rule of law, but also a contempt for the values of honesty and fairness that should underlie American entrepreneurship.  On far too many occasions, Watson chose deceit over candor, grasping for the illusion of business success and personal acclaim at any cost. Today’s sentence should serve as a warning to those who would engage in fraud that justice will be swift and certain.”

“Carlos Watson masqueraded his former company’s composition and purported success to entice investors, but ultimately cost them millions when the curated façade collapsed,” stated FBI Assistant Director in Charge Dennehy. “Watson abused his official capacity to ensnare subordinates to serve as lackies and perpetuate these fraudulent actions. May today’s sentencing deter any individual from implementing deceptive business practices to avoid a similar fate.”

According to court filings and as proven at trial, between 2018 and 2021, Watson and his co-conspirators orchestrated a scheme to defraud investors out of tens of millions of dollars through fraudulent misrepresentations and omissions about Ozy’s financial performance, including revenue, cash on hand and profit, ongoing business relationships with celebrities, acquisition prospects from high- profile technology and media corporations, contract negotiations and other corporate metrics.  For example, Watson and his co-conspirators lied to prospective investors about who else might be investing in Ozy, the existence and size of acquisition offers received by Ozy, the existence and timing of financing rounds, and the existence and terms of Ozy’s business contracts — going so far as to direct Ozy employees to create fake contracts with forged signatures to provide in due diligence.  On multiple occasions, when faced with questions from lenders or potential investors, Watson and his co-conspirators assumed the identities of and impersonated actual media company executives to cover up their prior fraudulent misrepresentations.  Watson’s scheme caused actual investor losses in excess of $60 million and intended to deprive potential investors of hundreds of millions more on the basis of his and his co-conspirators’ lies and misrepresentations. 

In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC).  As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including securities fraud, wire fraud and identity theft.

The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States  Attorneys Jonathan Siegel, Gillian Kassner and Dylan A. Stern are in charge of the prosecution.  Assistant United States Attorney Laura Mantell of the Asset Recovery Section is assisting with forfeiture matters.

The Defendants:

Carlos Watson
Age:  55
Mountain View, California

Ozy Media, Inc.
Mountain View, California

E.D.N.Y. Docket No. 23-CR-82 (EK)

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Safford Man Sentenced to 30 Months for Assault by Strangulation

Source: US FBI

TUCSON, Ariz. – Thomas Esquivias Ramirez, 31, of Safford, Arizona, was sentenced last week by United States District Judge Jennifer G. Zipps to 30 months in prison, followed by three years of supervised release. Ramirez pleaded guilty to Assault by Strangling an Intimate Partner and a Dating Partner. 

Ramirez, an enrolled member of the Pascua Yaqui Tribe, assaulted a Pascua Yaqui woman on October 9, 2021, by strangling her and impeding her breathing. The offense occurred on the Pascua Yaqui Indian Reservation in Tucson, Arizona.

The Federal Bureau of Investigation and Pascua Yaqui Police Department conducted the investigation in this case. Assistant United States Attorney Frances M. Kreamer Hope and Special Assistant United States Attorney Madelynn Franklin, District of Arizona, Tucson, handled the prosecution.

CASE NUMBER:           CR-22-1815-TUC-JGZ
RELEASE NUMBER:    2023-119_Ramirez

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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 Twitter @USAO_AZ for the latest news.

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Previously Deported Man Indicted for Transfer of Fraudulent Social Security Cards and Counterfeit Driver’s Licenses

Source: US FBI

SACRAMENTO, Calif. — A federal grand jury returned a nine-count indictment today against Javier Aguilera Rosas, 42, residing in Los Angeles, charging him with transfer of false identity documents, misuse of Social Security numbers, and being a previously deported alien found in the United States, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Rosas transferred to others fraudulent Social Security cards and driver’s licenses that used the identifying information of multiple individuals, including their Social Security numbers and driver’s license numbers. Rosas was previously deported from the United States in December 2009 after committing an aggravated felony of forgery.

This case is the product of an investigation by the Federal Bureau of Investigation. Special Assistant U.S. Attorney Nicole Moody is prosecuting the case.

If convicted, Rosas faces a maximum statutory penalty of 15 years in prison and a $250,000 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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Operation Clean House

Source: US FBI

TUCSON, AZ—The FBI’s Southern Arizona Violent Crime and Gang Task Force (SAVCGTF) organized a two-week fugitive apprehension operation named Operation Clean House, that proactively arrested multiple violent offenders throughout Pima County.

This operation ran from July 18 through July 28 and resulted in arrests and drug and weapons seizures.

  • 88 arrests
    • 4 of which were homicide suspects
  • Over 9,000 fentanyl pills seized
  • 10 firearms seized

This operation was successful due to the dedication and partnership with our local, state, and federal partners. Our partners assisting with this operation include:

  • FBI
  • Pima County Sheriff’s Department
  • Tucson Police Department
  • U.S. Marshals District of Arizona
  • Marana Police Department
  • Oro Valley police Department
  • Pascua Yaqui Police Department
  • Tohono O’odham Police Department

“The FBI remains committed to doing our part to combat violent crime throughout Arizona,” said Akil Davis, special agent in charge of the FBI Phoenix Field Office. “This operation underscores our invaluable partnerships with law enforcement, and these collaborative efforts will continue to benefit Arizona as we work to eradicate violent criminals in our communities.”

“I am extremely pleased by the cooperation of our Federal and regional partners to curtail the many outstanding arrest warrants related to violent crimes,” said Pima County Sheriff Chris Nanos. “This effort demonstrates we are committed to keeping our communities safe.”

“While the number of incidents of violent crime in the City of Tucson is continuing to trend lower this year, the numbers are not as low as they could be. Collaborative law enforcement efforts like this one developed through the Public Safety Partnership (PSP) program are playing a pivotal role in helping to make our community safer,” said Tucson Police Department Chief Chad Kasmar. “City of Tucson leadership is grateful for the regional public safety effort and many active community partners that are all contributing to a safer Tucson.”

The Southern Arizona Violent Crime and Gang Task Force was created in 2020 and was designed to take advantage of the combined resources of several agencies and provide a solid foundation for addressing significant violent crime and gang violence in Southern Arizona.

The SAVCGTF is comprised of agents and officers with the Drug Enforcement Administration (DEA), Pima County Sheriff’s Department, Tucson Police Department, U.S. Border Patrol, U.S. Customs and Border Protection-Office of Professional Responsibility, U.S. Attorney’s Office – District of Arizona, and the Arizona Attorney General’s Office.

The FBI Phoenix Field Office, Tucson Resident Agency would also like to thank the U.S. Attorney’s Office—District of Arizona, and the Pima County Attorney’s Office for their help on this case.

The FBI’s goal is stopping violent crime, getting drugs and weapons off the streets, and delivering justice for crimes committed in our communities and against U.S. citizens. Violent crime is not a problem that can be solved by law enforcement alone, we need the help of the community. You can provide an anonymous tip to an FBI field office, at 1-800-CALL-FBI, or at tips.fbi.gov.

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FBI Announces Results of Local Sex Trafficking Operation: Operation Cross Country XIII Leads to Identification/Location of Adolescent Victims

Source: US FBI

PHOENIX, AZ—The FBI’s Phoenix Field Office, working alongside federal and local partners in Phoenix identified and located five (5) minor victims of sex trafficking here as part of a nationwide enforcement campaign, called “Operation Cross Country.” Additionally, as part of the operation, thirty-one (31) subjects were arrested for attempting to have sexual contact with minors, and one (1) alleged trafficker was taken into custody.

The FBI-led nationwide initiative, in partnership with the National Center for Missing and Exploited Children (NCMEC), focused on identifying and locating victims of sex trafficking and investigating and arresting individuals and criminal enterprises involved in both child sex and human trafficking. Law enforcement agencies conducted targeted operations to identify and apprehend offenders, dismantle criminal networks, and prevent further harm to victims. Those suspects identified will be subject to additional investigation for potential charges.

In the Valley, the FBI’s Greater Phoenix Area Child Exploitation and Human Trafficking Task Force (GPACEHTTF), which is comprised of officers from Chandler, Gilbert, Mesa, Phoenix, and Tempe police departments, along with assistance from Scottsdale and Surprise police and Homeland Security Investigations (HSI) conducted the operation.

While Operation Cross Country is an annual national initiative, the GPACEHTTF works with the Phoenix Police Department’s Human Exploitation and Trafficking (HEAT) Unit on a regular basis throughout the year to combat this issue. With its leadership, the Phoenix Police HEAT Unit and the GPACEHTTF routinely collaborate with human trafficking units from law enforcement agencies across the greater Phoenix area on human trafficking operations.

The FBI remains steadfast in its commitment to combating child exploitation and human trafficking. Operation Cross Country is just one facet of the Bureau’s ongoing efforts to protect the most vulnerable members of society and hold offenders accountable. The FBI encourages continued vigilance, cooperation, and reporting from the public to help identify and recover victims and bring perpetrators to justice.

Resources:

Editor’s note: b-roll from Operation Cross Country XII operations can be found/downloaded here: Operation Cross Country 2022 B-Roll — FBI

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Former Jericho Road Employee Charged with Theft of Government Funds

Source: US FBI

BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Dejan Karlovic, 29, of Amherst, NY, was arrested and charged by criminal complaint with theft of government funds, which carries a maximum penalty of 10 years in prison and a $250,000 fine.

Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that according to the complaint, between October 16, 2023, and July 2, 2024, Karlovic was employed by Jericho Road as a Senior Grants Accountant. In this position, he had access to three commercial credit cards issued through M&T Bank. Among the expenses charged to these credit cards were charges purportedly related to UHAUL, with many of the most significant UHAUL related charges supported by invoices from an entity named D and D. Between March 1 and June 26, 2024, there were more than $574,000 in D and D related transactions conducted on the credit cards.

In March 2024, Jericho Road switched its credit card process to an online credit card management system called Ramp. Ramp accounts were issued to a limited number of personnel, which did not include Karlovic. One employee who was to receive a Ramp account with administrative access, did not establish his user profile in a timely manner. However, an unknown individual established the employee’s profile on Ramp. At approximately the same time the profile was established, an invitation for administrative access to Ramp was sent to Karlovic and a credit card through Ramp was issued to Karlovic. Karlovic was questioned about this, and he admitted that he received the invitation. Karlovic’s access to the Ramp credit card was revoked. However, when the Ramp program was rolled out to Jericho Road, Karlovic received access to two credit cards. He was to manage the program expenses related to these cards, and was able to make legitimate program purchases using both these credit cards. Between April 10 and June 17, 2024, there were more than $10,000 in D and D related transactions that were conducted on one of the two credit cards Karlovic had access to through Ramp.

Subsequent investigation determined that some of the funds allegedly stolen by Karlovic in the name of D and D, were transferred to his personal bank account at Northwest Bank. The timing of the transactions coincided with transactions on the M&T credit cards. Jericho Road became aware of the suspicious nature of the transactions involving D and D, conducted an internal investigation, and concluded that the charges were not for legitimate business purposes. Since Karlovic’s access was revoked, no new purchases from D and D have cleared on Ramp.

The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.  

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Buffalo Woman Who Lied to the FBI During Murder Investigation Sentenced

Source: US FBI

BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Deshema Clark, 46, of Buffalo, NY, who was convicted of making a materially false statement,  was sentenced to serve 30 days in prison and two years’ supervised release by Chief U.S. District Judge Elizabeth A. Wolford.  

Assistant U.S. Attorneys Maeve E. Huggins and Joseph M. Tripi, who handled the case, stated that on October 9, 2019, during the course of a federal criminal investigation, the FBI executed a search warrant at Clark’s Buffalo residence. During the search, Clark spoke with an FBI Special Agent, then went to Buffalo Police Department Headquarters to provide a voluntary statement to law enforcement. Clark knowingly made several false statements regarding the whereabouts of DeAndre Wilson during the evening of September 15, 2019, through the morning of September 16, 2019. Clark falsely stated that she and DeAndre Wilson returned to her residence after attending a concert the evening of September 15, 2019, ate dinner and went to sleep. Clark further falsely stated that a few hours later, she woke up and DeAndre Wilson was still asleep. Clark told investigators that she did not remember DeAndre Wilson leaving her residence on the evening of September 15, 2019, through the morning of September 16, 2019. However, Clark knew that DeAndre Wilson did not remain at her residence, eat dinner, and go to bed.

DeAndre Wilson was convicted by a federal jury and sentenced to serve three consecutive life sentences plus 30 years for the murders of Miguel Anthony Valentin-Colon, Nicole Marie Merced-Plaud, and Dhamyl Roman-Audiffred on or about September 15-16, 2019.

The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; the Erie County Central Police Services Forensic Laboratory.

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Riverside County Man Pleads Guilty to Producing Sexually Explicit Images of Children, One of Whom He Met on Online Gaming Platform

Source: US FBI

SANTA ANA, California – A Riverside County man pleaded guilty today to a federal criminal charge for catfishing a preteen girl he met on an online gaming platform and persuading her to send him sexually explicit photos of herself and, later, of her 5-year-old relative.

John Mathew Piecuch, 64, of Hemet, pleaded guilty to one count of production of child pornography. He has been in federal custody since August 2021.

“This defendant has admitted his despicable acts and now will face a significant prison sentence,” said United States Attorney Martin Estrada. “I urge parents everywhere to be vigilant when it comes to their children’s online usage. Predators lurk in the shadows and use the internet’s cloak of anonymity to inflict life-long trauma.”

According to his plea agreement, Piecuch met on Roblox, an online gaming platform, an individual identified in court documents as “Minor Victim 1,” a 12-year-old girl. Piecuch told the victim he was a 13-year-old boy.

In January 2021, Piecuch and Minor Victim 1 texted each other, during which time he persuaded her to send him sexually explicit images of herself. Piecuch also persuaded Minor Victim 1 to take and send him sexually explicit photographs of Minor Victim 2, a 5-year-old girl.

Minor Victim 1’s mother saw some of the text messages between her daughter and Piecuch on one of the girl’s mobile devices, which prompted her to contact law enforcement, according to court documents.

United States District Judge John W. Holcomb scheduled an October 25 sentencing hearing, at which time Piecuch will face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of 30 years in federal prison.

The FBI investigated this matter in conjunction with the Carroll County (Maryland) Sheriff’s Office.

Assistant United States Attorney Sonah Lee of the Riverside Branch Office is prosecuting this case.

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Parker Man Sentenced to 12 Years for Voluntary Manslaughter

Source: US FBI

PHOENIX, Ariz. – Anthony William Delgado, 28, of Parker, Arizona, was sentenced last week by United States District Judge Steven P. Logan to 144 months in prison, followed by three years of supervised release. Delgado pleaded guilty to Voluntary Manslaughter.

On October 24, 2021, Delgado struck the victim multiple times in the head and face with a sledgehammer, causing the victim to sustain fatal injuries. The victim died one week later. Delgado is an enrolled member of the Colorado River Indian Tribes (CRIT) and the offense occurred on the CRIT Reservation.

The Federal Bureau of Investigation and the CRIT Police Department conducted the investigation in this case. Assistant U.S. Attorneys Christina J. Reid-Moore and LeighAnn M. Thomas, District of Arizona, Phoenix, handled the prosecution.

CASE NUMBER:           CR-22-00427-PHX-SPL
RELEASE NUMBER:    2023-112_Delgado

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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 Twitter @USAO_AZ for the latest news.

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Two Long Beach Men Arrested on Indictment Alleging They Sold Fentanyl and Methamphetamine Out of Car Upholstery Shop

Source: US FBI

LOS ANGELES – Two Long Beach men were arrested today on an 11-count federal grand jury indictment charging them with selling fentanyl and methamphetamine out of a purported auto upholstery shop in Gardena.

Hector Valle, 48, and Efren Sanchez, 52, were arrested this morning and are scheduled to be arraigned this afternoon in United States District Court in downtown Los Angeles.

Valle and Sanchez are both charged with conspiracy to distribute and possess with the intent to distribute fentanyl and methamphetamine, and with being felons in possession of firearms. Valle is also charged with possession with intent to distribute cocaine, and possession of firearms in furtherance of a drug trafficking crime.

“Those who traffic in fentanyl are well aware that they are profiting by putting others’ lives at risk,” said United States Attorney Martin Estrada. “It is important that those bad actors be held accountable. I commend our law enforcement partners with the FBI and Ventura County Sheriff’s Office for their diligence in taking these dangerous drugs and firearms off our streets.”

According to the indictment that a grand jury returned on July 17, Valle and Sanchez on June 9, 2023, sold approximately 433 grams of methamphetamine and 49.95 grams of fentanyl.

During search warrants executed at three locations, law enforcement seized more than 14.3 kilograms (31 pounds) of fentanyl, approximately 424 grams of methamphetamine, approximately 675 grams of cocaine, six firearms, 117 rounds of ammunition, and approximately $21,700 cash. Law enforcement also seized several packages of fentanyl, methamphetamine, and cocaine stowed away in a vending machine at a purported auto upholstery shop called “Stitchn’ Time,” Valle’s purported place of business.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

If convicted of all charges, each defendant would face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of at least 10 years in federal prison.

Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.

The FBI is investigating this matter. The Ventura County Sheriff’s Office provided assistance. 

Assistant United States Attorney Matt Coe-Odess of the General Crimes Section is prosecuting this case.