Category: MIL-OSI

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Two Arkansas Men Found Guilty of Fraud and Money Laundering in Connection with Proposed Elm Springs, Arkansas Wind Farm

Source: US FBI

FAYETTEVILLE – A federal jury convicted two Arkansas men today for Wire Fraud, Aiding and Abetting Wire Fraud, Money Laundering and Aiding and Abetting Money Laundering in connection with the development of a wind turbine that was never operational and a proposed wind farm project in Elm Springs, Arkansas, that was never constructed.

According to court documents and evidence presented at trial, Jody Douglas Davis, 46, of Searcy, Arkansas, and Phillip Vincent Ridings 64, of North Little Rock, Arkansas, formed a limited liability company in Texas in 2014 called Dragonfly Industries International, LLC (“Dragonfly”) and Arkansas Wind Power (“AWP”), an Arkansas limited liability company located in Springdale, Arkansas, to develop what they told investors was a revolutionary wind turbine design that was to be installed on a 311-acre wind farm proposed for construction in Elm Springs, Arkansas.  

According to the superseding indictment, Davis and Ridings conspired with Cody Fell of Springdale, Arkansas, and others, beginning as early as June 2014 and continuing through and including March 2018, to obtain money from investors who were told that the investors’ money would be used to build a prototype of the wind turbine and develop wind farms in Elm Springs, Arkansas, in Iowa, and other states.  The evidence presented at trial showed that Davis and Ridings used most of the $700,000 they obtained from investors for Davis’ and Ridings’ personal use.  Specifically, evidence at trial revealed that investors were told that Dragonfly’s wind turbine could produce more energy than the traditional three-blade wind turbines commonly used on existing wind farms;  that nationally recognized engineering firms and a University of Memphis mechanical engineering professor had “validated” the Dragonfly wind turbine’s design; that the Department of Defense has expressed strong interest in acquiring Dragonfly’s wind turbines for use in combat zones; that a prototype of the wind turbine was nearing completion; that leaders of underdeveloped countries were ready to buy Dragonfly’s wind turbines; and that a $10 million grant from the Department of Energy was soon to be awarded to Dragonfly, when in truth and fact, none of these representations were true.

Cody Fell pled guilty to Wire Fraud and Tax Evasion in December 2018 and will be sentenced on September 17, 2021. A sentencing date for Davis and Ridings has not yet been scheduled.

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

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.

Assistant U.S. Attorneys Kyra Jenner and Kenneth Elser prosecuted the case.

Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.

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Federal Inmate Sentenced to Five Additional Years in Prison for Bribing Guard to Bring Drugs into Jail

Source: US FBI

      LITTLE ROCK—A federal prison inmate has been sentenced to five more years in prison for his role in a drug conspiracy at the Dallas County jail. Tuesday afternoon, United States District Judge Kristine G. Baker sentenced Terry McClendon, 32, of Sherwood, to 60 months’ imprisonment, which he will serve in addition to the prison sentence he was already serving for possessing a stolen firearm.

      In August and September of 2017, McClendon was a federal inmate being held at the Dallas County Detention Center to await the resolution of his federal criminal case, in which he was charged with a firearms offense. While at this jail, McClendon approached Laron Williams, a guard working at the jail, and offered to pay Williams to bring contraband into the jail. With the help of two other inmates, McClendon directed other individuals to deliver tobacco, marijuana, cocaine, and heroin to Williams, who then passed these contraband items to McClendon within the jail.

      Williams accepted deliveries on September 4 and 8, 2017, and a jail employee noticed Williams making a transfer to McClendon’s cell. Security video from September 9, 2017, shows Williams getting out of his car with an object wrapped in a blanket, which he later passed to McClendon. A search of McClendon’s cell revealed a pillowcase containing two square objects, which were examined by the Arkansas State Crime Laboratory and determined to be 764.4 grams of cocaine and 739.6 grams of heroin.

      On November 7, 2017, McClendon was sentenced to five years in prison for possessing a stolen firearm. Yesterday, Judge Baker sentenced McClendon to an additional five years’ imprisonment on the contraband conspiracy, which is the maximum penalty allowed by law. Judge Baker also ordered this additional five years to run consecutive to McClendon’s original five-year sentence for possessing a stolen firearm, which means McClendon now faces a total of 10 years in prison.

      Williams and the two inmate co-conspirators, Michael Brewer and Antonio Fowler, have all pleaded guilty and are awaiting sentencing. A fifth co-conspirator, Dekimberol Brewer, has also pleaded guilty to conspiracy for her role in bringing drugs into the jail through her husband, Michael Brewer.

      The investigation was conducted by the FBI with assistance from the United States Marshals Service.  The case was prosecuted by Assistant United States Attorneys Julie Peters and Amanda Jegley.

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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

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FBI Cleveland Announces Arrests in Firearms Trafficking and International Smuggling

Source: US FBI

CLEVELAND, OH—The FBI Cleveland Division and its Joint Terrorism Task Force announce the arrests of two individuals charged with numerous firearms violations, including trafficking, smuggling, and murder-for-hire.

George Baynes, aka Issa Yusef, age 66, of Cleveland, Ohio, and Aaron Betts, age 48, of Cleveland, Ohio, were arrested on May 10, 2024, and charged by criminal complaint in U.S. District Court, Northern District of Ohio, with several federal offenses.

It is alleged in charging documents that Baynes and Betts violated Title 18, United States Code, Section 922(d)(1), Selling or Disposing of a Firearm to a Convicted Felon; Title 18, United States Code, Section 932(b), Conspiracy to Straw Purchase Firearms; Title 18, United States Code, Section 933(a)(1), Firearms Trafficking; and Title 18, United States Code, Section 933(a)(1) and (3), Firearms Trafficking Conspiracy; and there is also probable cause that BAYNES has violated Title 18, United States Code, Section 554(a), Attempted Smuggling of Goods from the United States; Title 18, United States Code, Section 922(g)(1), Felon in Possession of a Firearm; and Title 18, United States Code, Section 1958(a), Murder-for-Hire. Finally, there is probable cause that BETTS has also violated Title 18, United States Code, Section 932(b), Straw Purchasing of Firearms.

Baynes and Betts were arrested without incident by federal agents and made their initial appearance on May 10, 2024, in U.S. District Court, Northern District of Ohio.

It is alleged in charging documents that Baynes repeatedly purchased and sold new and stolen firearms and further attempted to smuggle firearms overseas. Baynes also enlisted the assistance of Betts to purchase and obtain firearms at a Cleveland area gun show. Betts purchased and sold multiple firearms to Baynes, a known felon, and further understood the weapons were to be shipped overseas.

Baynes, according to the complaint, also provided a cooperating witness with firearms magazines and a gas mask to smuggle overseas along with the firearms and discussed smuggling parts for the creation and manufacture of pipe bombs. Additionally, Baynes solicited the witness to murder a specific subject known to Baynes.

Baynes and Betts are being held in custody pending detention and preliminary hearings.

A complaint is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

If convicted, each defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.

The investigation is being conducted by the Federal Bureau of Investigation, Cleveland Division, and its Joint Terrorism Task Force, which includes the Akron Police Department, ATF, CBP, Cleveland Division of Police, CMHA, Cuyahoga County School District, Cuyahoga County Community College Police Department, ERO, HSI, Parma Police Department, RTA, SSA, USCIS, USDA, and USSS.

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Bank Employee Indicted on Charges of Bank Fraud and Identity Theft

Source: US FBI

CLEVELAND – A federal grand jury has returned a 17-count indictment charging Yue Cao, 34, of Winfield, Illinois, accusing him of bank fraud, aggravated identity theft, and engaging in monetary transactions in criminally derived property in connection with a scheme to steal funds from identity theft victims’ accounts at the bank where he worked.

According to the indictment, from between approximately May 2022 to April 2023, Cao allegedly engaged in a scheme to defraud the Ohio-based bank where he worked, and its customers, by transferring funds from those customers’ accounts to ones that Cao controlled, including accounts he had established in the customers’ names, all without their knowledge or authorization. He diverted the money stolen from the customer accounts for his personal use.

Cao was a quantitative modeling analyst at the bank and used his position to locate customers who had not yet enrolled in online banking services, primarily targeting elderly customers as identity theft victims. Without the victims’ knowledge, Cao created email addresses in their names and enrolled their accounts in online banking without their knowledge. By setting up online banking, he both obtained control of the victims’ accounts and ensured that bank statements and other notices about the accounts would be sent to the email addresses he controlled. Cao then used the victims’ personal identifying information to open unauthorized bank accounts and brokerage accounts in their names. Cao used his control of these accounts to set up at least $2.1 million in unauthorized online transfers from the victims’ true accounts to the unauthorized accounts he had opened in the victims’ names and to Cao’s own financial accounts.

An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.

The investigation was conducted by the FBI Cleveland Division. The case is being prosecuted by Assistant United States Attorney Edward Brydle.

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Memphis Medical Sales Rep Admits Misleading FBI

Source: US FBI

      LITTLE ROCK—A Florida man pleaded guilty to misleading federal agents investigating his promotion of expensive compounded prescription drugs. Steve Hill, 57, of Port Orange, Florida (formerly of Memphis), entered his plea to making false statements to the FBI today before United States District Judge Brian S. Miller.

      A veteran of the medical sales industry based in Memphis, in 2014 Hill began to promote compounded prescription drugs covered by TRICARE. His compensation equaled a fixed percentage of sales generated. When a healthcare provider to whom Hill marketed the drugs went on to prescribe them, Hill earned a share of whatever the insurer reimbursed for the drugs.

      Among the healthcare providers Hill solicited was Doctor 1. Unbeknownst to TRICARE, Hill shared his commission on Doctor 1’s prescriptions with Doctor 1’s wife, Spouse 1. Specifically, of the more than $500,000 in commission he earned from Doctor 1’s prescriptions, Hill paid $147,325.25 to Spouse 1 and kept the remaining $345,727.15 for himself.

      Around 2016, federal agents began to investigate Hill’s promotion of compounded drugs as well as his financial relationship with Spouse 1. In August 2017, a Special Agent of the FBI travelled to Hill’s Tennessee home to speak with him directly. During that interview, Hill denied having paid Spouse 1, which he knew to be false.

      Under the terms of his guilty plea, Hill agreed to forfeit $345,727.15 in illicit proceeds. He will be sentenced at a later date. Making a false statement to the FBI is punishable by up to five years’ imprisonment.

      Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas, James A. Dawson, Special Agent in Charge of the FBI Little Rock Field Office, and Miranda Bennett, Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services announced the guilty plea.

      The investigation was conducted by the FBI and HHS-OIG. The case is being prosecuted by Assistant United States Attorney Alexander D. Morgan.

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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

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Ohio Man Convicted of Assaulting Law Enforcement and Other Charges During January 6 Capitol Breach

Source: US FBI

            WASHINGTON – An Ohio man was convicted today of multiple felony and misdemeanor offenses, including assaulting law enforcement during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

            Jonathan Joseph Copeland, 29, of Lima, Ohio, was convicted of six felonies and two misdemeanor offenses in U.S. District Court for the District of Columbia following a bench trial before U.S. District Court Judge Dabney L. Friedrich.

            Specifically, Copeland was convicted of the felony offenses of civil disorder, and assaulting, resisting, or impeding certain officers, entering and remaining in a restricted building or grounds, disorderly or disruptive conduct in a restricted building or grounds, and engaging in physical violence in a restricted building or grounds, all with a deadly or dangerous weapon. Copeland was also convicted of misdemeanors for an act of physical violence in the Capitol building or grounds and parading, demonstrating or picketing in a Capitol Building.

            Judge Friedrich will sentence Copeland on Sept. 18, 2024 at 1 p.m.  

            According to court documents and evidence presented during the trial, Copeland traveled from Ohio to Georgia to hear then-President Trump speak, and then to Washington, D.C., where he attended portions of the “Stop the Steal” rally on Jan. 6, 2021, at the Ellipse. Afterward, Copeland marched with others to the Peace Circle, located on U.S. Capitol grounds, where he walked around the downed barriers at the Peace Circle and moved towards the front of a line of rioters behind a bike-rack-style barrier manned on the opposite side by several U.S. Capitol Police (USCP) officers protecting the U.S. Capitol complex.

            At approximately 12:52 p.m., a group of rioters, including Copeland, advanced on the manned bike rack barricade. They pushed through the officers and the barricade to move closer to the building. Specifically, Copeland, with his arms outstretched, pushed on the backs of other rioters as those rioters pushed on the barricade. After the rioters overwhelmed the officers and trampled over the barricade, Copeland and his fellow rioters charged forward toward the West Plaza.

            At approximately 1:40 p.m., Copeland participated in pushing a large metal frame holding an oversized “TRUMP” sign into a defensive line of Metropolitan Police Department (MPD) and USCP officers, who were attempting to prevent a further advance towards the Capitol building. Copeland placed both hands onto the sign and pushed it into the line of officers.

            Court documents and trial testimony reflect that the all-metal frame was approximately eight feet tall and ten feet wide, welded with screws, and supported by large casters and wheels that were approximately the size of a person’s head. As described by one MPD officer who was a member of the defensive police line, the sign frame was heavy, with sharp metal angles jutting towards the officers.

            Also on the West Front, Copeland began arguing with a photographer within the crowd. Copeland shoved the cameraman several times and then a group of rioters attacked the photographer and pushed him off a ledge.

            Court documents and trial testimony reflect that Copeland entered the Capitol building at 2:25 p.m. via the Senate Wing Door. Once inside, he traveled through the Crypt and to the Capitol Visitor Center, repeatedly waving at other rioters to join him further inside the Capitol building. He finally exited the building at approximately 2:41 p.m. via a window next to the Senate Wing Door.

            The FBI arrested Copeland in Fort Shawnee, Ohio on Aug. 25, 2022.

            The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section prosecuted this case. The U.S. Attorney’s Office for the Northern District of Ohio provided valuable assistance.

            The FBI’s Cleveland and Washington Field Offices investigated this case. The United States Capitol Police and the Metropolitan Police Department provided valuable assistance.

            In the 40 months since Jan. 6, 2021, more than 1,424 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 500 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

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

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Ninth Defendant Pleads Guilty in TRICARE Scheme

Source: US FBI

      LITTLE ROCK—A ninth defendant has pleaded guilty in connection with a $12 million scheme to generate prescriptions for expensive compounded drugs paid for by TRICARE. Kenneth Myers Jr., 43, of Alpharetta, Georgia (formerly of Little Rock), pled guilty to conspiring to violate the Anti-Kickback Statute today before United States District Judge Kristine G. Baker.

      Myers collected nearly $70,000 for recruiting TRICARE beneficiaries to receive expensive compounded drugs, for which TRICARE paid over $340,000. Myers acknowledged offering TRICARE beneficiaries money to receive the drugs and that medical providers, including co-defendant Joe David May a.k.a. Jay May, 40, of Alexander, rubber stamped prescriptions without consulting the TRICARE beneficiaries.

      Upon learning a federal agent planned to interview a TRICARE beneficiary about his prescription, Myers instructed the man to lie by claiming he had been examined by a doctor before getting his prescription. When Myers was later interviewed, he lied to the FBI by claiming he played no role in securing prescriptions and instead directed beneficiaries to consult their own doctor.

       In pleading guilty to the kickback conspiracy, Myers joins Albert Glenn Hudson, 40, of Sherwood; Derek Clifton, 39, of Alexander; Donna Crowder, 66, of North Little Rock; Jennifer Crowder (formerly Bracy), 38, of Little Rock; Keith Benson, 50, of North Little Rock; Keith Hunter, 52, of Little Rock; Angie Johnson, 50, of North Little Rock; and Blake Yoder, 40, of Scott.

      Conspiring to violate the Anti-Kickback Statute is punishable by up to five years in federal prison, three years of supervised release, and a $250,000 fine.

      Trial of the 10th and final defendant, May, is set for December 6, 2021, before Judge Baker. May faces charges of conspiracy, wire fraud, mail fraud, violating the anti-kickback statute, aggravated identity theft, lying to the FBI, and falsifying records in a federal investigation.

      Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas, James A. Dawson, Special Agent in Charge of the FBI Little Rock Field Office, and Miranda Bennett, Special Agent in Charge of the Dallas Regional Office of the U.S. Department of Health and Human Services announced the guilty plea.

      The investigation was conducted by the FBI and HHS-OIG. The case is being prosecuted by Assistant United States Attorney Alexander D. Morgan.

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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

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Sheriff of Franklin County, Arkansas, Found Guilty of Assaulting Two Individuals in Custody

Source: US FBI

FORT SMITH – A federal jury convicted the Sheriff of Franklin County, Arkansas today on two counts of deprivation of rights under color of law.

According to court documents and evidence presented at trial, Anthony Boen, 51, of Ozark, used unreasonable force to punish pretrial detainees on two separate occasions.  On Dec. 3, 2018, Boen struck a detainee multiple times in the head with a closed fist while the detainee was sitting on the floor and shackled to a bench inside the Franklin County Jail.  On Nov. 21, 2018, Boen slammed a detainee onto the floor and ripped his hair during an interrogation.  Both detainees suffered bodily injury as a result of Boen’s actions.

“Anthony Boen swore an oath to support the United States Constitution and the State of Arkansas Constitution,” said Acting U.S. Attorney David Clay Fowlkes of the Western District of Arkansas.  “His actions clearly violated not only the civil rights of these individuals but also the trust of the people of Franklin County. Cases like this are very important to our office because they involve the most personal and basic of civil rights: the rights to be protected and unharmed while in the custody of law enforcement officers. Today’s guilty verdict shows that justice will prevail in cases where a person’s civil rights are violated. We will continue to vigorously pursue cases involving the violation of basic civil rights that should be afforded to everyone.”

“The defendant abused his power as the top law enforcement officer in Franklin County, Arkansas, by assaulting people in his custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who abuse their authority to make clear that no one is above the law.” 

“The vast majority of law enforcement officers in the United States steadfastly protect and serve their communities,” said FBI Little Rock Special Agent in Charge James Dawson. “When officers charged with enforcing the law break their oaths and violate the rights of others, they gravely injure the public’s trust in law enforcement. Our FBI office remains committed to upholding the public’s trust by investigating all allegations of civil rights violations throughout Arkansas.”

The FBI investigated the case.

Assistant U.S. Attorney Brandon T. Carter and Civil Rights Division Trial Attorney Michael J. Songer prosecuted the case.

Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.

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Arkansas Man Sentenced to More Than 16 Years in Federal Prison for Interstate Transportation of a Minor

Source: US FBI

FORT SMITH – A Harrison man was sentenced yesterday to 200 months in prison followed by 5 years of supervised release on one count of Transportation of a Minor with Intent to Engage in Criminal Sexual Activity. 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, in July 2020, Edgar Benjamin Davidson, 32, transported a minor, across state lines from Harrison, Arkansas to multiple states. During this time Davidson sexually assaulted the minor on multiple occasions. Davidson was arrested in November 2020 and pled guilty in March 2021.

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

The Boone County Sheriff’s Department and the Federal Bureau of Investigations investigated the case.

Assistant U.S. Attorney Tyler Williams prosecuted the case for the United States.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov

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Jury Finds Cincinnati Man Guilty of Sex Trafficking, Exploiting Two Teens

Source: US FBI

CINCINNATI – A federal jury has convicted Kelly Richards, 43, of Cincinnati, with sex trafficking minors, sexually exploiting children and illegally possessing a firearm as a previously convicted felon.

Richards is also known as “Scorpio” and has a tattoo of a scorpion on the left side of his face. The jury found him guilty on all counts following a six-day trial before U.S. District Judge Jeffery P. Hopkins.

According to court documents and trial testimony, investigators were alerted in March 2023 that two juveniles had been screened as potential sex trafficking victims.

Richards picked up two minor victims who had fled a group home in Dayton and drove them to an apartment complex in Cincinnati. At the apartment, Richards provided the minors with cocaine before sexually assaulting them.

Richards also enticed the females into having sex with other men for money that was paid to Richards. The defendant created prostitution advertisements online with explicit pictures of the minor victims and used physical violence against them. Court documents detail that one victim was prostituted up to four times per day in hotels and homes.

Sexually exploiting children is a federal crime punishable by a range of 15 to 30 years in prison. Sex trafficking minors carries a potential penalty of at least 10 years and up to life in prison. Illegal possession of a firearm in this case is punishable by up to 15 years in prison. Sentencing of the defendant will be determined by the Court at a future hearing.

Federal agents arrested Richards on May 16, 2023.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and other members of the FBI’s Anti-Trafficking Task Force announced the verdict returned the evening of April 30. Assistant United States Attorneys Kyle J. Healey and Megan Painter Gaffney are representing the United States in this case.

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