Category: MIL-OSI

Source: US FBI

FRESNO, Calif. — James Patrick Breedlove III, 34, formerly of Bakersfield, was sentenced today to 20 years and 10 months in prison to be followed by a lifetime term of supervised release for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between January 2019 and August 2020, Breedlove knowingly coerced minors to engage in sexually explicit conduct for the purpose of producing images and videos of such conduct. In January 2020, Breedlove posed as a 16-year-old to obtain images and videos of a minor victim engaging in sexually explicit conduct. After receiving one such image, Breedlove threatened to send it to other children at the minor victim’s school if she did not send more images and videos of herself engaging in sexually explicit conduct.

Court documents also indicate that Breedlove used Snapchat to contact multiple other minor victims between the ages of 13 and 17 years old. By misrepresenting his identity and threatening to distribute the images, Breedlove coerced other minor victims to send images and videos of themselves engaging in sexually explicit conduct.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brittany M. Gunter prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

Source: US FBI

SACRAMENTO, Calif. — Euan David MacGregor, formerly known as David Joseph Bean, 54, of Iowa City, Iowa, pleaded guilty Tuesday to one count of wire fraud for defrauding his former employer out of more than $3.2 million, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between November 2014 and January 2020, Euan MacGregor, then known as David Bean, used his position as a Chief Administrative Officer to embezzle money from his employer.

According to court documents, MacGregor defrauded his former employer in two ways. First, he diverted at least 122 checks made payable to his employer to bank accounts that he controlled. MacGregor did this by creating a shell corporation that had a business name similar to the name of his employer and depositing the checks into bank accounts that he opened in the name of the shell corporation. MacGregor then presented false financial information to the company’s president and shareholders causing them to believe they had received the monies he diverted. In addition, MacGregor falsely represented to his employer that he was outsourcing his employer’s bookkeeping work to a third party, a company named Essential Business Services, another company that MacGregor created and controlled. MacGregor’s false representations caused his employer to pay Essential Business Services thousands of dollars each month for bookkeeping services that it did not perform. MacGregor used the money he fraudulently obtained to pay for personal expenses for him and his family, including mortgage payments, the payment of credit cards, educational expenses, travel, and the purchase of vehicles.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.

MacGregor is scheduled to be sentenced by U.S. District Judge John A. Mendez on Jan. 28, 2025. MacGregor faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Source: US FBI

LOS ANGELES – An Illinois woman was sentenced today to 24 months in federal prison for conspiring to unlawfully export to Russia defense articles – including thermal imaging riflescopes and night-vision goggles – without a license in violation of the Arms Export Control Act.

Elena Shifrin, 62, of Mundelein, Illinois, was sentenced by United States District Judge André Birotte Jr.

Shifrin pleaded guilty in February 2022 to one count of conspiracy to violate the Arms Export Control Act.

According to court documents, from 2017 to 2020, Shifrin participated in the export of more than 60 defense articles from the United States to Russia without obtaining from the State Department a valid license or other approval for such exports. 

As Shifrin admitted at her change of plea hearing, Shifrin’s co-conspirators purchased the defense articles – including thermal riflescopes, weapons sights, monoculars and night-vision googles – from online sellers in the United States and directed the sellers to mail those items to Shifrin or other co-conspirators in Illinois and California. After receiving the items, Shifrin mailed them to co-conspirators in Russia without obtaining the required licenses.

To conceal her unlawful activities, when Shifrin exported the defense articles to Russia, she listed fictitious sender names and addresses on the packages containing the defense articles, falsely identified the items in the packages as non-export-controlled items such as clothing, and concealed the defense articles in other items such as toolkits and kitchen appliances.

One of Shifrin’s co-conspirators, Igor Panchernikov, 43, a former Corona resident who once served in the United States Air Force Reserves, pleaded guilty in March 2023 to one count of conspiracy to violate the Arms Export Control Act and was sentenced in June 2023 to 27 months in federal prison.

Two other defendants charged in this case – Boris Polosin, of Russia, and Vladimir Gohman, of Israel – are fugitives. Charges against another defendant – Vladimir Pridacha, 59, of Volo, Illinois, were dismissed on January 19 at the request of prosecutors.

The FBI’s Los Angeles and Chicago field offices investigated this matter, with substantial assistance from the United States Postal Inspection Service and Homeland Security Investigations.

Assistant United States Attorneys David T. Ryan of the Terrorism and Export Crimes Section, and Wilson Park of the General Crimes Section are prosecuting this case. The Counterintelligence and Export Control Section of the Department of Justice’s National Security Division is providing substantial assistance.

Source: US FBI

LOS ANGELES – Four defendants from Los Angeles County were arrested today on a nine-count indictment charging them with committing armed robberies of several businesses – mostly 7-Eleven stores in South Los Angeles – during a nearly two-month crime spree late last year in which they allegedly posted photographs on Instagram of themselves holding stolen cash.

The indictment, returned July 10 and unsealed today, charges the following defendants with one count of conspiracy to interference with commerce by robbery and one count of interference with commerce by robbery (Hobbs Act):

• Charles Christopher, 24, of Compton;
• D’Angelo Spencer, 26, of South Los Angeles;
• Jordan Leonard, 25, of Torrance; and
• Tazjar Rouse, 22, of Hollywood.

The defendants also have been charged with various counts of Hobbs Act robbery and brandishing a firearm in furtherance of a crime of violence. Christopher and Leonard were arraigned today in United States District Court in downtown Los Angeles and were ordered jailed without bond. They pleaded not guilty to the charges against them and a September 17 trial was scheduled. Rouse made his initial appearance today in federal court in Kansas City, Missouri. Spencer is expected to be arraigned in federal court in Los Angeles tomorrow.

“Violent gun crime leaves lasting emotional and psychological scars for victims,” said United States Attorney Martin Estrada. “Anyone thinking that violent robberies are a good way to make money should take note that there will be consequences for your actions.”

According to the indictment, from November 4, 2023, to December 24, 2023, the defendants committed a series of armed robberies, mostly of 7-Eleven stores in South Los Angeles. One victimized store was a CVS in Hollywood. The defendants traveled to the targeted stores in a BMW, jumped over the counters, took money from the stores’ cash registers, and placed the money into a black Nike bag. One of the defendants – usually either Christopher or Leonard – allegedly pointed a firearm at a store employee or customer and demand either their cellphone or their wallet.

On November 28, 2023, following the robbery of a 7-Eleven store in South Los Angeles earlier that day, Leonard posted a photograph on Instagram with stacks of cash, captioned his post “love my bros we go hit every time,” and tagged the Instagram accounts of Christopher and Spencer, the indictment alleges.

In total, the defendants allegedly netted approximately $7,617 in cash during the crime spree.

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, the defendants would face a statutory maximum sentence of 20 years in federal prison for each Hobbs Act-related count and – for each firearm brandishing count – a mandatory minimum sentence of seven years in federal prison and a statutory maximum sentence of life imprisonment.

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 and the Los Angeles Police Department are investigating this matter.

Assistant United States Attorney Mirelle N. Raza of the General Crimes Section is prosecuting this case.

Source: US FBI

LOS ANGELES – A Montrose man pleaded guilty today to defrauding investors out of more than $1 million by making false promises that they would receive an ownership interest in several adult entertainment webcam websites and then using their money on personal expenses, including luxury items.

Patrick Khalafian, 54, pleaded guilty to one count of wire fraud.

According to his plea agreement, from November 2009 to October 2016, Khalafian solicited investments for businesses – including 168 Entertainment LLC, Empire Entertainment Group Inc., and EEG LLC – that purportedly developed and operated adult entertainment websites.

Khalafian falsely represented to victims that their investments would be used for business operations, including developing software and the platform for the proposed websites, paying for computer servers, hiring employees, and purchasing advertising. He also falsely promised that the victims would be repaid for their investments by a specific date, that they would receive ownership interests in the companies, and would receive a share of the companies’ profits.

Rather than investing the victim’s money, Khalafian instead used their funds to pay off his debts, including to prior victims, and to fund his own lifestyle, including to pay for gambling expenses and luxury shopping sprees.

To lull the victims into believing that their funds were being used as he had promised, Khalafian lied to his victims about the status of the adult entertainment websites purportedly being developed by the companies in which they had invested. Khalafian eventually stopped responding to victims and disconnected and changed his phone number and email address to evade their inquiries.

For example, in July 2015, Khalafian met with one victim at Mastro’s Steakhouse in Beverly Hills and falsely represented at the meeting that a $1 million investment from the victim would be used to pay for business expenses such as computer servers, employees, and advertising for the adult webcam business. Later that month, the victim – relying on Khalafian’s false promises – wired $1 million to a Khalafian-controlled bank account.

On the same day he received the funds, Khalafian transferred $200,000 of the victim’s money to an account to pay his rent, for luxury cars, and other personal expenses. The day after he received these funds, Khalafian used $66,000 of the victim’s money to purchase a new Ford F-150 truck. He also used more than $100,000 of the victim’s money at casinos, to pay back another investor, to pay his rent, and on luxury shopping sprees at retailers such as Tiffany, Barney’s, Fendi, Saks Fifth Avenue, and Louis Vuitton. Khalafian never paid the victim back any of his investment, and he stopped responding to the victim’s messages in October 2016.

Khalafian also admitted to conning two other victims in 2015 and 2016 out of $80,000 and $90,000, respectively, using their money on personal expenses and not his adult webcam business. Khalafian paid back neither victim any of their money.

In total, Khalafian’s fraud caused a total loss of at least $1.17 million.

United States District Judge André Birotte Jr. scheduled a February 21, 2025 sentencing hearing, at which time Khalafian will face a statutory maximum sentence of 20 years in federal prison.

The FBI investigated this matter.

Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section is prosecuting this case.

Source: US FBI

SANTA ANA, California – The former senior director of fiscal services at an Orange County public school district was sentenced today to 70 months in federal prison for embezzling nearly $16.7 million from the district over several years.

Jorge Armando Contreras, 53, of Yorba Linda, was sentenced by United States District Judge Fred W. Slaughter, who also ordered him to pay $16,694,942 in restitution.

Contreras pleaded guilty on March 28 to one count of embezzlement, theft, and intentional misapplication of funds from an organization receiving federal funds.

“Instead of using his job at a public school district to help socio-economically disadvantaged children, Contreras embezzled millions upon millions of dollars, which he flagrantly spent on a luxury home, car, and designer clothes and accessories,” said United States Attorney Martin Estrada. “Today’s sentence highlights my office’s determination to prosecute and punish those who betray the public trust – especially when their behavior affects some of our community’s most vulnerable members.”

Contreras was the senior director of fiscal services at Magnolia School District, which serves students in Anaheim and Stanton. In this role, Contreras, whom the school district hired in 2006, managed the district’s fiscal operations. The schools in this district educate children from preschool through sixth grade – 81% of whom are classified as socio-economically disadvantaged.

He managed and had access to various school district bank accounts as well as the student body bank account. He caused checks from these accounts to be deposited into his personal bank account.

Contreras wrote checks in small dollar amounts written to “M S D,” with the letters spaced out, and, after receiving the proper signatures from others, would include fictitious names and increase the amounts of the checks and deposit the checks into his personal bank account via ATMs. To conceal his fraud, Contreras provided bank reconciliation packets to others at the school district with falsified bank statements and records.

In total, Contreras embezzled approximately $16,694,942 from the school district.

The school district placed Contreras on administrative leave in August 2023 and filed a lawsuit against him in Orange County Superior Court.

Law enforcement so far has seized approximately $7.7 million in personal and real property traced to the scheme, including a home in Yorba Linda, a 2021 BMW automobile, 57 luxury designer bags (mostly Louis Vuitton), various pieces of jewelry, designer clothes and shoes, and eight bottles of Clase Azul Ultra luxury tequila.

The FBI, IRS Criminal Investigation, and the United States Department of Education Office of Inspector General investigated this case.

Assistant United States Attorneys Billy Joe McLain of the Public Corruption and Civil Rights Section, Brett A. Sagel of the Corporate and Securities Fraud Strike Force, and James E. Dochterman of the Asset Forfeiture and Recovery Section prosecuted this case.

Source: US FBI

LOS ANGELES – A Ventura County physician who worked for two Pasadena hospices pleaded guilty today to defrauding Medicare out of more than $3 million by billing the public health insurance program for medically unnecessary hospice services.

Dr. Victor Contreras, 68, of Santa Paula, pleaded guilty to one count of health care fraud.

According to his plea agreement, from July 2016 to February 2019, Contreras and co-defendant Juanita Antenor, 61, formerly of Pasadena, schemed to defraud Medicare by submitting nearly $4 million in false and fraudulent claims for hospice services submitted by two hospice companies: Arcadia Hospice Provider Inc., and Saint Mariam Hospice Inc. Antenor controlled both companies.

Medicare only covers hospice services for patients who are terminally ill, meaning that they have a life expectancy of six months or less if their illness ran its normal course.

Contreras falsely stated on claims forms that patients had terminal illnesses to make them eligible for hospice services covered by Medicare, typically adopting diagnoses provided to him by hospice employees whether or not they were true. Contreras did so even though he was not the patients’ primary care physician and had not spoken to those primary care physicians about the patients’ conditions. Medicare paid on the claims supported by Contreras’ false evaluations and certifications and recertifications of patients.

In total, approximately $3,917,946 in fraudulently claims were submitted to Medicare, of which a total of approximately $3,289,889 was paid.

According to Medical Board of California records, Contreras is a licensed physician in California, but has been on probation with the Board since 2015 and is subject to limitations on his practice.  

United States District Judge André Birotte Jr. scheduled an October 25 sentencing hearing, at which time Contreras will face a statutory maximum sentence of 10 years in federal prison.

Antenor remains at large. Co-defendant Callie Black, 65, of Lancaster, who allegedly recruited patients for the hospice companies in exchange for illegal kickbacks, has pleaded not guilty and is currently scheduled to go on trial on October 15.

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.

The United States Department of Health and Human Services Office of Inspector General, the FBI, and the California Department of Justice investigated this matter. 

Assistant United States Attorneys Kristen A. Williams of the Major Frauds Section and Aylin Kuzucan of the General Crimes Section are prosecuting this case.

Source: US FBI

      LITTLE ROCK-United States District Judge Brian S. Miller sentenced Bradley Fly, 36, of Germantown, Tenn., to 20 months in federal prison for violating the Anti-Kickback Statute. In July 2019, Fly pleaded guilty to offering two TRICARE beneficiaries money in exchange for signing up to receive expensive compounded drugs.

      At sentencing, the United States introduced evidence that Fly bribed two people: his longtime friend (then a Marine reservist), plus an Army National Guardsman, whom Fly solicited while seated courtside at a Memphis Grizzlies game. Fly then facilitated prescriptions for both men and their wives, for which TRICARE paid over $500,000, earning himself over $180,000 in commission.

      Judge Miller heard testimony from the Marine reservist and from a Special Agent with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) that the prescriptions were part of a larger network of prescription generation, including recruiters whom Fly paid for TRICARE beneficiary information and a group of doctors whom Fly used to sign prescriptions without consulting patients.

      “There is no room for kickbacks in the healthcare marketplace,” said Acting United States Attorney Jonathan D. Ross. “Serious penalties and prison await those, like Mr. Fly, who fail to abide by the law. This office and its partners at the FBI and HHS-OIG are committed to rooting out such criminal conduct.”

      “Mr. Fly paid kickbacks generating fraudulent claims to line his pockets without concern for the health and welfare of the patients,” said Miranda L. Bennett, Special Agent in Charge of the HHS-OIG Dallas Region. “We will continue working with our law enforcement partners to pursue individuals defrauding federal health care programs.”

      “By defrauding TRICARE, Mr. Fly disgracefully cheated U.S. veterans, their families, and American taxpayers,” said FBI Little Rock Acting Special Agent in Charge Jason Van Goor. “We are grateful for our state and federal partners who help us both investigate these cases and protect the financial integrity of our nation’s health care systems.”  

      In addition to the 20-month prison sentence, Fly was sentenced to three years of supervised release. The investigation was conducted by HHS-OIG and the FBI and prosecuted by Assistant United States Attorney Alexander D. Morgan.

# # #

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

LITTLE ROCK, AR—As Americans become more aware of violent crimes against Asian Americans and Pacific Islanders, the FBI Little Rock Field Office is urging Arkansas community groups and law enforcement agencies to sign up for an FBI course on hate crimes. This course, developed by the FBI and the Department of Justice’s Civil Rights Division, clearly defines the criteria for hate crimes and provides insight into FBI hate crimes investigations. There is no charge for this class, and our previous trainings hosted throughout Arkansas are consistently well-received by course participants. Our presentation seeks to reduce civil rights abuses and promote cooperation between law enforcement agencies and the communities they serve.

The FBI is the primary federal agency responsible for investigating allegations regarding violations of federal civil rights statutes. These laws are designed to protect the civil rights of all persons—citizens and non-citizens alike—within U.S. territory. Using cutting-edge investigative and intelligence capabilities, the FBI works closely with its partners to prevent and address hate crimes, color of law violations, and other civil rights offenses.

If you are a community leader or law enforcement executive, we urge you to contact the FBI and schedule a hate crimes presentation for your organization. Our presentation typically runs for two hours and is conducted by veteran FBI agents who are skilled investigators of federal civil rights violations. This training is interactive and encourages audience members to share thoughts and perspectives about real-world case studies. To schedule a training, please call the FBI Little Rock Field Office at 501-221-9100 and ask for the Community Outreach Specialist.

Source: US FBI

Note: A full copy of the indictment can be viewed 

WASHINGTON — On April 1, a superseding indictment was unsealed in federal court in the District of Columbia charging five men with assaulting Metropolitan Police Department (MPD) Officers, as well as other crimes, during the breach of the U.S. Capitol on Jan. 6 that disrupted a joint session of the U.S. Congress in the process of affirming the presidential election.

Jack Wade Whitton, 30, of Locust Grove, Georgia, was arrested Thursday in Atlanta. The indictment alleges that Whitton, along with Jeffrey Sabol of Kittredge, Colorado, and Peter Francis Stager of Conway, Arkansas, assaulted an MPD officer, referred to as “B.M.”, with a baton, flag, pole and a crutch.

The indictment also accuses Clayton Ray Mullins of Benton, Kentucky, of assaulting the same officer, as well as a second MPD officer, whom Whitton and Sabol are also accused of separately assaulting.

The indictment further alleges that Michael John Lopatic Sr. of Lancaster, Pennsylvania, assaulted a third MPD officer.

This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Counterterrorism Section of the U.S. Department of Justice’s National Security Division, with assistance from the U.S. Attorney’s Offices for the Northern District of Georgia, the Southern District of New York, the Eastern District of Arkansas, the Eastern District of Pennsylvania, and the Western District of Kentucky.

The case is being investigated by the FBI’s Washington Field Office, Atlanta Field Office, New York Field Office, Philadelphia Field Office, Little Rock Field Office, and the Louisville Field Office, along with the Metropolitan Police Department and the U.S. Capitol Police.

An indictment is a formal accusation of criminal conduct, not evidence of guilt. All defendants are presumed innocent unless proven guilty. 

Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.