Category: MIL-OSI

Source: US FBI

SAN DIEGO – After a weeklong trial, San Diego-based securities attorney Andrew Coldicutt was convicted by a federal jury today on all 17 counts of securities fraud, false securities registration statements, and wire fraud in connection with two pump-and-dump market-manipulation schemes.

The jury deliberated for less than four hours and determined that Coldicutt used his expertise as an experienced securities lawyer to help clients – who were actually undercover FBI agents – create companies, take them public, release false information about the companies, manipulate the stock for a windfall and conceal their affiliation with those companies.

In the first scheme, Coldicutt worked with others from 2017 through 2019 to prepare and execute a pump-and-dump stock fraud scheme. Coldicutt created a business plan for a fake backyard fruit harvesting company. He prepared and filed securities registration statements with the U.S. Securities and Exchange Commission for an initial public offering of the company’s stock. The securities registration statements contained false and misleading information about the company, its business plans, and the people who owned and controlled the company.

In the second scheme, in 2019, one of Coldicutt’s corporate clients needed to raise money fast. Rather than raise money legally, Coldicutt presented the undercover FBI agents with another pump-and-dump stock fraud scheme. Coldicutt wrote a false attorney opinion letter to facilitate the sale of stock for the pump-and-dump scheme.

During the trial, the government presented multiple recordings connecting Coldicutt to the crimes, including inventing the business plan in the middle of a meeting with undercover FBI agents. Coldicutt was also recorded accepting $2,500 in cash as an advance on successfully completing the pump-and-dump scheme. Jurors were also presented with encrypted messages where Coldicutt coordinated the plans for the pump-and-dump with a cooperating source.

According to testimony during the trial, the expected profit of the first pump-and-dump scheme was approximately $4.85 million, and Coldicutt’s share would be about $240,000. Since Coldicutt was actually working with undercover FBI agents and sources gathering evidence against him, no investors were injured.

A “pump and dump” scheme is a type of fraud where manipulators gain control over a company’s stock and boost a company’s stock price by spreading false information or trading in a way that creates fake demand. Once the stock price is inflated, they sell off their shares (the “dump”), causing the price to drop and leaving investors with losses.

“Securities attorneys and other professionals in the securities industry hold a critical position of trust and responsibility,” said Acting U.S. Attorney Andrew R. Haden. “When these individuals misuse their legal credentials to commit fraud, it is innocent investors who often bear the brunt of the harm. Thanks to the diligent work of FBI investigators and our prosecution team, we were able to expose the wrongdoing and deliver justice without any investors suffering financial loss. This outcome reflects the extraordinary efforts of all involved.”

“Andrew Coldicutt engaged in a deliberate, unlawful and years long securities fraud scheme,” said FBI San Diego Special Agent in Charge Stacey Moy. “Attorneys are held to a higher standard of conduct and this case proves when an individual in a position of trust abuses their authority for unjust personal gain, the FBI will hold them accountable.”

The defendant is scheduled to be sentenced on July 11, 2025, before U.S. District Judge Jinsook Ohta.

The Securities and Exchange Commission has also taken civil action against Coldicutt.

DEFENDANT                        Case Number 22cr1881                                       

Andrew Coldicutt                    Age: 44                    San Diego, California

SUMMARY OF CHARGES

Title 15, U.S.C., Sec. 77q, 77x – Securities Fraud

Maximum Penalty: Twenty years in prison

Title 15, U.S.C., Sec. 77g, 77x – False Securities Registration Statements

Maximum Penalty: Twenty years in prison

Title 18, U.S.C., Sec. 1343 – Wire Fraud

Maximum Penalty: Twenty years in prison

INVESTIGATING AGENCY

Federal Bureau of Investigation

Source: US FBI

SAN DIEGO – Federal prosecutors in the Southern District of California filed more than 90 border-related cases this week, including charges of transportation of illegal aliens, bringing in aliens for financial gain, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.

The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

A sample of border-related arrests this week, includes:

• Mexican nationals Eleazar Mozqueda Simental and Manuel Antonio Mozqueda Simental were arrested and charged on March 20, 2025, in connection with a maritime smuggling incident. They were accused of illegally transporting 14 undocumented immigrants from Mexico, Vietnam and China – all of whom were forced to wear large black trash bags over their heads and bodies during the four-hour trip. They were brought into the United States on a panga boat traveling at high speed across rough seas. According to interviews with the undocumented immigrants on the boat, at one point, the panga caught air, broke apart and capsized, sending terrified passengers into the water. The passengers, including a deaf/mute woman, were rescued.
• Mexican national Osvaldo Reyes-Virgen was arrested on March 17, 2025, by San Diego- based U.S. Border Patrol agents and charged after he was found in the United States hiding behind brush near Imperial Beach after agents observed a jet ski traveling north.  Reyes-Virgen was previously deported on March 6, 2025, after entering the United States illegally.
• On March 17, 2025, Sarah Beth Schatz, a United States citizen, was arrested and charged with alien smuggling after she was caught attempting to smuggle two citizens of China into the United States in the trunk of the vehicle she was driving.  The two Chinese citizens she was arrested with admitted that they are citizens of China without lawful documents allowing them to enter the United States and that they were going to pay $30,000 and $15,000 if successfully smuggled into the United States.
• Joshua Nicolas Sanchez Lopez, a Mexican citizen, was arrested on March 15, 2025, when he attempted to cross into the U.S. from Mexico at the Otay Mesa Port of Entry on drug importation charges. According to a federal complaint, he was the driver and registered owner of a vehicle where Customs and Border Protection officials found 108 packages consisting of over 100 pounds of methamphetamine, 22 pounds of fentanyl, and more than four pounds of heroin hidden in the doors, quarters panels, and seats of his vehicle.
• On March 16, 2025, Baudelio Escalante-Orozco, a citizen of Mexico, was arrested after he was found by San Diego-based U.S. Border Patrol Agents attempting to hide in brush seven miles north of the U.S./Mexico International Boundary Line and charged with being a deported alien found in the United States.  He is currently on probation in the District of Oregon for the same crime.   

Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: US FBI

EL CENTRO – Twenty-two alleged members of a sophisticated transnational drug trafficking organization with ties to the Sinaloa-based Beltran Leyva Cartel were indicted by a federal grand jury for importing and distributing more than a ton of methamphetamine, fentanyl and cocaine into the United States, laundering the illicit proceeds, and attempting to export firearms from the United States into Mexico.

In a coordinated takedown this morning in California, Arizona, Iowa, and Colorado, more than 150 federal, state, and local law enforcement officials arrested 10 defendants and executed six search warrants in Imperial County. As of this afternoon, the search continues for 12 fugitives.

Including seizures today and throughout this long-term investigation, authorities have confiscated more than 1,000 kilograms (about 2,204 pounds) of drugs, including methamphetamine, cocaine, and over 750 kilograms (about 1,653 pounds) of fentanyl, 10 firearms, and more than $250,000 in narcotics proceeds.

“We have literally seized a ton of drugs that were destined to hit our streets and harm our community,” said Acting U.S. Attorney Andrew Haden. “By disrupting this prolific, cartel-linked trafficking network, we are preventing the devastation and violence it brings.”

“Today’s enforcement action marks the culmination of a complex, long-term HSI investigation, demonstrating the strong collaboration between federal, state, and local law enforcement agencies nationwide,” said Shawn Gibson, Special Agent in Charge of HSI San Diego. “Our local communities are undoubtedly safer today, and we remain committed to aggressively pursuing criminal organizations that threaten our country.”

“Close coordination and aggressive action amongst allied law enforcement agencies just made communities nationwide safer places to live and work,” said El Centro Border Patrol Sector Chief Patrol Agent Gregory Bovino. “The well executed takedown of this drug trafficking organization heralds a new day in homeland security where we will relentlessly apprehend and prosecute transnational threats.”

According to search warrants, the defendants belonged to a Mexicali, Mexico- and Imperial County-based transnational criminal organization that operated as a distribution cell for the Beltrán Leyva Cartel, specifically associated with Fausto Isidro Meza Flores aka El Chapo Isidro. Using undercover operations and multiple rounds of wiretaps, agents conducted numerous controlled purchases, traffic stops of personal vehicles and tractor trailers, and searches of houses and stash locations leading to large seizures of narcotics.

Additionally, during the fourth round of wiretaps, one of the wiretap targets, an Imperial County-based narcotics subdistributor, was shot multiple times in Mexicali and died several months thereafter. Investigators believe that the subdistributor was lured from the United States to Mexico and shot by a co-conspirator in relation to their drug trafficking and money laundering activities.

According to federal search warrants:

In one instance on January 23, 2023, authorities seized approximately 1.4 million fentanyl pills after intercepting phone conversations about moving fentanyl pills in a semi-truck. Federal agents watched the transaction from afar, then conducted a traffic stop on the drug-laden tractor-trailer. Law enforcement officials located eight duffel bags containing approximately 148.53 kilograms (327.45 pounds) in the trailer of the truck.

In another instance, on May 9, 2023, authorities seized approximately 483,000 fentanyl pills after intercepting phone conversations about moving narcotics in a semi-truck. Law enforcement conducted a traffic stop on the drug-laden tractor-trailer and located bags containing approximately 48.30 kilograms (106.48 pounds) of fentanyl pills in the truck.

Shortly thereafter, on May 25, 2023, authorities seized approximately 480,000 fentanyl pills, 72.29 kilograms of methamphetamine, and a loaded 9mm handgun with a 10-round magazine inserted and a round in the chamber. After intercepting phone conversations about coordinating the movement of narcotics in a semi-truck, federal agents surveilled the narcotics being loaded into the tractor-trailer, then conducted a traffic stop. Law enforcement officials located six duffel bags containing approximately 72.29 kilograms (159.37 pounds) of methamphetamine and 48.6 kilograms (107.14 pounds) of fentanyl in the trailer of the truck.

In another instance, on October 9, 2023, investigators seized approximately 139,000 fentanyl pills and 36.66 kilograms (80.82 pounds) of methamphetamine following federal agents’ surveillance of defendants unloading and transporting the narcotics.

On March 14, 2024, after a traffic stop conducted by a Brawley police officer, law enforcement seized approximately 59.48 kilograms (131.13 pounds) of methamphetamine.

Federal agents also seized firearms and ammunition during the investigation, including two gold plated AR-15 semi-automatic rifles hidden inside a 55-gallon barbeque grill on August 3, 2023, and two rifles, two pistols, approximately 2182 ammunition rounds, and seven magazines destined for Mexicali-based drug traffickers.

Additionally, according to court records, five of the charged defendants are tied to alien smuggling activity, having been either arrested and/or previously prosecuted for immigration-related crimes, such as alien smuggling, accessory after the fact to illegal entry, and selling or offering to sell a Visa.

This case is being prosecuted by Assistant U.S. Attorney Loren G. Renner.

DEFENDANTS                                            

Case Number 24cr2399                               

Irving Alberto Lopez Valdes                                      Age: 36                       Mexicali, Mexico

Raul Salome Valdez-Orduno                                     Age: 46                       Mexicali, Mexico

Case Number 24cr2400

Jesus Damian Lizarraga Sanchez                               Age: 28                       Mexicali, Mexico

Case Number 24cr2434

Elizabeth Millan                                                         Age: 46                       San Diego, California

Brandon Garcia                                                          Age: 27                       Calexico, California

*Seven unnamed defendants are fugitives

Case Number 24cr2431

Roberto Marrufo                                                        Age: 40                        Calexico, California

Case Number 25cr0785

Ricardo Miramontes Nava                                          Age: 35                       Calexico, California

Case Number 25cr0786

Jacob Rodiles                                                              Age: 21                       El Centro, California

Roberto Fernandez                                                     Age: 70                       Calexico, California

Raul Martinez Jimenez                                               Age: 56                       Mexicali, Mexico

Julian Banuelos                                                           Age: 19                       Imperial, California

Alain Alejandro Robles-Murrieta                               Age: 19                       Mexicali, Mexico

*Three unnamed defendants are fugitives

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a) and (b)(1), 846

Maximum penalty: Life in prison with a mandatory minimum of 10 years and a $10 million fine.

Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)

Maximum penalty: Twenty years in prison and a $500,000 fine

Attempted Transfer of a Firearm for Use in a Drug Trafficking Crime – Title 18, U.S.C., Section 1924(h)

Maximum penalty: Fifteen years in prison and a $250,000 fine

INVESTIGATING AGENCIES

Homeland Security Investigations, Calexico – Imperial Valley Border Enforcement Security Taskforce (IV-BEST)

Homeland Security Investigations, Riverside, CA

Homeland Security Investigations, Denver, CO

Homeland Security Investigations, Yuma, AZ

Homeland Security Investigations, Sioux City, IA

United States Border Patrol, El Centro Sector Intelligence Unit

Customs and Border Protection, Calexico Intelligence Division

Imperial County Narcotics Task Force

Drug Enforcement Administration, Imperial County Office

Drug Enforcement Administration, Phoenix Office

Federal Bureau of Investigations, Imperial County Office

United States Immigration and Customs Enforcement, Enforcement and Removal Operations

United States Marshals Service

Calexico Police Department

Imperial County Sheriff’s Office

Imperial County District Attorney’s Office

Brawley Police Department

California Highway Patrol

El Centro Police Department

San Diego-Imperial Valley HIDTA

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.

This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

Source: US FBI

The Federal Bureau of Investigation has concluded a national surge of resources to arrest accused child sex abuse offenders and combat child exploitation. In a coordinated effort by all 55 FBI field offices called Operation Restore Justice, 205 people were arrested nationwide.

The FBI Sacramento Field Office arrested four individuals on federal charges as part of this operation. Charges include sexual exploitation of a child and receipt and distribution of child pornography. Eleven additional arrests on state charges resulted from an undercover operation in collaboration with the Bakersfield Police Department Vice Unit to combat human trafficking and solicitation of prostitution in the city of Bakersfield.

“No child should ever have to suffer at the hands of a predator,” said Special Agent in Charge Sid Patel of the FBI Sacramento Field Office. “The FBI is committed to breaking the cycle of abuse and ensuring those who exploit children are brought to justice. We work closely with our federal, state, and local law enforcement partners to identify these offenders and to protect the most vulnerable members of our communities.”

This initiative between April 28 and May 1 was a joint effort with federal, state, and local partners to coincide with the end of Child Abuse Prevention Month and highlight the FBI’s ongoing efforts to confront these crimes. Investigating child sex abuse is an ongoing high-priority mission of the FBI. The FBI’s Violent Crimes Against Children (VCAC) program coordinates and bolsters efforts to counter all threats of abuse and exploitation of children that fall under FBI jurisdiction—including the production, sharing, and possession of child sexual abuse material; domestic or international travel to engage sexually with children; and the extortion of children to provide sexually explicit material of themselves. VCAC also helps to identify, locate, and recover child victims and strengthen partnerships that are critical to prevent abuse and capture offenders.

The FBI investigates cases through Child Exploitation and Human Trafficking Task Forces (CEHTTFs) located in each field office, allowing the FBI to combine resources with federal, state, and local law enforcement agencies. The FBI also partners with the nonprofit National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24-hour hotline at 1-800-THE-LOST and on missingkids.org.

In 2004, the FBI created the Endangered Child Alert Program (ECAP) to identify individuals involved in the sexual abuse of children and the production of child sexual abuse material. The program is a collaborative effort between the FBI and NCMEC.

The FBI also offers resources for parents and caregivers to stay engaged with their children’s online and offline activities. The FBI’s Safe Online Surfing (SOS) program teaches students in grades 3 to 8 how to navigate the web safely.

To submit a tip about the potential exploitation of a child, call 1-800-CALL-FBI (225-5324), visit tips.fbi.gov, or call your local FBI field office.

Other online resources:

Electronic Press Kit

Violent Crimes Against Children

How We Can Help You: Parents and Caregivers Protecting your Kids

Source: US FBI

Jeremiah Malik Jefferson, 27, of Benicia, was sentenced today by U.S. District Judge John A. Mendez to seven years in prison for his second federal felon-in-possession of a firearm case, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, On Oct. 1, 2023, while on supervised release following a 2021 conviction in a prior federal gun case, Jefferson brandished a firearm during an argument with a female victim. Jefferson had been released from prison only 10 months prior. During a search of Jefferson’s residence on Nov. 1, 2023, law enforcement officers recovered a firearm that was loaded with a high-capacity magazine and had previously been reported stolen. Jefferson is prohibited from possessing a firearm due to multiple prior felony convictions, including for burglary and a previous federal conviction for being a felon in possession of a firearm.  Jefferson was also sentenced to two years in prison (the applicable statutory maximum) for violating his terms of supervised release to be served concurrently with the 7-year sentence.

This case was the product of an investigation by the U.S. Probation Office, the Benicia Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.  For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

Source: US FBI

Michael Kulikoff, 39, of California City, was arrested today on an indictment charging him with conspiracy to transport and cause to be transported a hazardous waste without a manifest and placing another person in imminent danger of death or serious bodily injury, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, in February 2024, Kulikoff was a city councilmember in California City and owned a car wash business. On Feb. 25, 2024, Kulikoff learned that a mercury exposure incident had occurred at his car wash. An individual had spilled a jar containing several ounces of mercury inside the cabin of a sports utility vehicle and had attempted to clean up the mercury using a vacuum cleaner. The individual then drove the contaminated SUV to a residence in California City, where he called 911 because he was experiencing symptoms related to mercury exposure.

California City emergency services personnel responded to the scene and scanned the SUV for mercury. They detected approximately 20 times the allowable limit of mercury inside the SUV’s cabin and put yellow caution tape around the SUV to deny entry to it. They also shut down the car wash business. Kulikoff attempted to clean up the business himself but was told by the emergency services personnel that he had to stop because it was a hazardous materials scene and was unsafe.

Early the following morning, Kulikoff conspired with another person to move the contaminated SUV outside of city limits. He directed the other person to drive the contaminated SUV from California City to Boron because the SUV was causing problems for Kulikoff in California City, and he wanted the SUV to be outside the jurisdiction of California City emergency services personnel. Emergency services personnel left the location of the contaminated SUV scene to respond to a report of a fire that turned out to be a false report. When they returned to the scene, the contaminated SUV was gone. A couple of hours later, Kern County emergency services personnel found the contaminated SUV at the residence of the individual who had moved the vehicle at Kulikoff’s direction. That individual also complained of symptoms related to mercury exposure.

This case is the product of an investigation by the U.S. Environmental Protection Agency’s Criminal Investigation Division (CID) and the Federal Bureau of Investigation. Assistant U.S. Attorneys Jeffrey A. Spivak and Arelis M. Clemente are prosecuting the case.

If convicted, Kulikoff faces a maximum statutory penalty of five years in prison and a $250,000 fine for conspiracy to transport hazardous waste and a maximum statutory penalty of 15 years in prison and a $50,000 fine per day of violation for placing another person in imminent danger. 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 

Source: US FBI

FRESNO, Calif. — Raul Zamudio Hurtado, 42, of Oakdale, was sentenced Monday by U.S. District Judge Jennifer L. Thurston to 22 and a half years in prison and for two counts of conspiracy to distribute and possess with intent to distribute methamphetamine arising from two separate cases, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, in May 2017, a coalition of federal, state, and local agencies investigated a group of Sureño gang members and associates in the Merced area for crimes of violence, drug sales, and illegal firearms possession. More than 50 individuals were arrested and 14 defendants were charged federally. Hurtado was the source of supply of methamphetamine to the suspected Sureño members and was indicted. On July 24, 2019, Hurtado pleaded guilty to conspiracy to distribute methamphetamine and remained in custody pending sentencing in the first case. In April 2020, he was released with conditions.

Between December 2021 and November 2022, Hurtado obtained and distributed methamphetamine in large quantities and received tens of thousands of dollars in drug proceeds. On Nov. 16, 2022, a search warrant was executed, more than 73 pounds of methamphetamine was seized, and Hurtado was charged again. On June 3, 2024, Hurtado pleaded guilty to conspiracy to distribute methamphetamine in this second case.

These cases were the product of investigations by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Merced Area Gang and Narcotic Enforcement Team (MAGNET), the California Department of Justice/California Highway Patrol, Special Operations Unit, the California Department of Corrections and Rehabilitation, and the Modesto Police Department Major Crimes Unit. Assistant U.S. Attorneys Ross Pearson and Kimberly Sanchez prosecuted the cases.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information, visit Justice.gov/OCDETF.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

Source: US FBI

A federal grand jury returned a one-count indictment today against Binghui Liu, 32, a citizen of China formerly residing in San Jose, charging him with a money laundering conspiracy, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, between February 2024 and April 2025 Liu and other co‑conspirators engaged in a scheme to launder proceeds derived from a government impersonation fraud scam. Members of the conspiracy pretended to be federal law enforcement officers or employees when contacting target victims. To seek money, the scammers provided false information about the victim’s bank accounts, for example by claiming that charges had been wrongfully filed against the victims and that their bank accounts would be frozen. The scammers typically instructed victims to withdraw their savings in cash and then arranged for a fake law enforcement officer or federal employee to pick up the cash for supposed safekeeping. The scammers used fake names, code words, and instructed the victims to take pictures of themselves and the cash packaged for pickup.

Liu served as a money launderer in the fraud scheme. He went to victims throughout California and Nevada to take their money. Liu used code words and fake names, and victims were falsely told he was either a federal employee or law enforcement officer. At no point was Liu a federal employee or law enforcement officer.

In one example, an elderly victim was contacted by someone pretending to be a U.S. Marshal, who informed the victim of a fake arrest warrant and the possibility that the victim’s bank account would be frozen. The victim was instructed to give the money to federal reserve employees, supposedly to protect the funds. The scammers then coached the victim on withdrawing funds, what to say to their bank about the large withdrawals, and how to package the funds for multiple different pickups. On April 9, 2025, FBI agents set up a sting operation. Liu arrived at the elderly victim’s house and took what he believed was $20,000 but was, in fact, fake money. The agents arrested Liu shortly after he took the fake cash. In total, the elderly victim lost over $780,000 to the fraud scheme.

If you have information related to this case or believe you may be a victim, please submit a report at tips.fbi.gov or call your local FBI office.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Cody S. Chapple and Arelis M. Clemente are prosecuting the case.

If convicted, Liu faces a maximum statutory penalty of 20 years in prison and a $500,000 fine or twice the value of the property involved in the transaction, whichever is greater. 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.

Source: US FBI

SANTA ANA, California – A Hawaii man has pleaded guilty to a federal criminal charge for defrauding a 78-year-old Orange County victim out of nearly $2 million by false promises of brokering the sale of the victim’s yacht, the Justice Department announced today.

John Tamahere McCabe, 42, of Kailua, Hawaii, pleaded guilty Thursday to one count of wire fraud.

According to his plea agreement, McCabe offered to help the victim sell his yacht. What the victim didn’t know was McCabe used fabricated documents to change the ownership of the yacht to McCabe’s name. Once in his name, McCabe then diverted the proceeds to his own personal bank account and used most of the proceeds for his own personal purposes.

McCabe further convinced him to transfer his million-dollar Irvine residence into a McCabe-controlled limited liability company (LLC), claiming that it would protect the victim’s most-valuable asset and provide tax benefits. Without the victim’s knowledge or consent, McCabe caused himself to be the sole manager of the LLC and caused $1 million in loans to be taken out and secured by the victim’s residence, draining all its equity.

Once McCabe spent the loan proceeds, he defaulted on the loans and the victim’s residence was sold at a foreclosure sale, leaving the victim homeless. Through this scheme, McCabe defrauded the victim out of approximately $1,814,000.

United States District Judge Fred W. Slaughter scheduled an October 16 sentencing hearing, at which time McCabe will face a statutory maximum sentence of 20 years in federal prison.

The FBI investigated this case with the help of the Irvine Police Department.   

First Assistant United States Attorney Jennifer Waier is prosecuting this case.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. English, Spanish and other languages are available.