Category: Security

Source: US FBI

LAS VEGAS – A Las Vegas resident was sentenced yesterday by U.S. District Judge Kent J. Dawson to 78 months in prison followed by five years of supervised release for defrauding hundreds of small business owners – many of them elderly – of about $12 million.

Michael Jones (43) pleaded guilty to two counts of conspiracy to commit mail fraud and wire fraud and 10 counts of wire fraud. In addition to the prison term, Jones was ordered to pay restitution in the total amount of $11,509,087.67 to the victims, and a forfeiture money judgment in the total amount of $7,934,095.32.

According to court documents, from October 2009 to February 2014, Jones and his co-defendants convinced more than 2,100 small business owners to pay nearly $12 million for what Jones and his co-defendants described as advance fees to fund expenses to apply for supposed government, private and charitable grants for the victims’ businesses. Following a script, Jones and others would falsely tell the victims that government, private and charitable organizations would provide grants to them regardless of the type of business they operated, but the victim first needed to pay thousands of dollars in fees to access those grants. Jones and his co-defendants induced the small business owners to give them money in exchange for services that were never provided. The scheme functioned solely to enrich Jones and his co-defendants.

United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

The FBI investigated the case. Assistant U.S. Attorney Dan Cowhig prosecuted the case.

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Source: US FBI

A Florida man pleaded guilty today to orchestrating an investment fraud scheme that defrauded more than 10,000 victims of over $55 million.

According to court documents, Michael Glaspie, 72, of Palm City, marketed an investment opportunity under the name “CoinDeal” or “Coin Deal.” Glaspie claimed that CoinDeal would yield extremely high returns on the premise that one or more technology companies – operated under the banner of “ViRSE” and allegedly owned by Neil Suresh Chandran – was about to be acquired by a consortium of wealthy buyers. To entice investors to put money into CoinDeal, Glaspie falsely promised that in the event the returns from CoinDeal failed to materialize, he would repay investors their money with seven percent annual interest over three years. In fact, Glaspie knew he had no means of making such repayments.

“For his brazen and repeated lies that defrauded more than 10,000 victims out of more than $55 million, the defendant now justifiably faces a lengthy prison term,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.  “The Department of Justice is committed to rooting out investment fraud and holding wrongdoers accountable to protect the financial security of all Americans.”

To support his false repayment promise, Glaspie deceptively claimed that he had an exclusive and lucrative contract with AT&T to distribute government‑funded phones, and that an app that he developed was being distributed by the Better Business Bureau and would yield over $400 million in revenue, when he had no such contract or distribution agreement. Furthermore, when the promised sale of CoinDeal did not close, Glaspie transmitted investor funds to Chandran after falsely representing to CoinDeal investors that he would not do so. Glaspie also falsely claimed that he never paid himself with CoinDeal investor funds, when in truth, he misappropriated nearly $2.5 million of victim investments for personal purposes, including trading cryptocurrency, paying his employees’ salaries, and buying a life insurance policy for a family member. 

“Michael Glaspie admitted today to his involvement in a widespread scheme to defraud investors for his personal benefit,” said U.S. Attorney Steven A. Russell for the District of Nebraska. “Thanks to the tireless efforts of our law enforcement partners to untangle this fraud, Glaspie will now be held accountable for this serious crime.”

“This case identified a fraudulent online investment scheme that defrauded over 10,000 victims,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The subject promised investors high rates of returns then misused investor funds for personal use. The FBI and our law enforcement partners will continue to work diligently to identify and pursue those who seek to deceive and defraud the American public.”

“This elaborate investment fraud scheme defrauded more than 10,000 victims of over $55 million,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Investment fraud schemes of any type will not be tolerated. The FBI will continue to do what we have done for over 100 years and investigate those who attempt to defraud unsuspecting Americans of their hard-earned money. I would like to thank our partners at FBI offices across the country and the Department of Justice for their work and collaboration to bring justice on behalf of these victims.”

Glaspie pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on June 16 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Separately, on June 14, 2022, a federal grand jury in the District of Nebraska returned an indictment charging Chandran with three counts of wire fraud and two counts of engaging in monetary transactions in criminally derived property for his role in the scheme. If convicted, he faces up to 20 years in prison for each of the wire fraud counts and up to 10 years in prison for each count of engaging in unlawful monetary transactions.  An indictment is merely an allegation.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI Washington, Omaha, Las Vegas, and Los Angeles Field Offices are investigating the cases.

Assistant Chief William E. Johnston and Trial Attorney Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Donald J. Kleine for the District of Nebraska are prosecuting the cases.

All potential investor victims of this fraud are encouraged to visit the webpage https://www.justice.gov/criminal-vns/united-states-v-chandran to identify themselves and obtain more information on their rights, including the opportunity to submit a victim impact statement.

Source: US FBI

LAS VEGAS – Two men pleaded guilty yesterday for their involvement in a conspiracy to apply for and use Nevada and California unemployment insurance benefits debit cards that were issued in other peoples’ names.

Luigi J. Montes (42), of Sugar Land, Texas, and Peter Alexander Stincer (34), of Sylmar, California, each pleaded guilty to conspiracy to commit mail fraud. U.S. District Judge Richard F. Boulware scheduled sentencing for June 5, 2023.

According to court documents and admissions made in court, from at least March 2020 to January 2021, Montes, Stincer, and co-defendant Alexander Hoyos Rivera, of Marion, Ohio, conspired to submit fraudulent unemployment insurance claims with the Nevada Department of Employment, Training, and Rehabilitation (DETR) and the California Employment Development Department (EDD). As part of the scheme, they used stolen personal identifying information – such as victim names, dates of birth, and social security numbers – to defraud DETR and EDD. Once the claims were approved, unemployment insurance debit cards were sent to mailing addresses to which the defendants had access. After receiving the debit cards, they withdrew the funds at various ATMs located in several states, including Nevada, California, and Texas. In total, DETR, EDD, and other state agencies approved at least $934,129 in benefits for these fraudulent claims. During the conspiracy, the defendants fraudulently obtained at least $698,655 in benefits for their personal use.

At sentencing, Montes and Stincer each face a statutory maximum penalty of 20 years in prison, a term of supervised release, restitution, and monetary penalties.

United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

The FBI investigated the case. Assistant U.S. Attorney Jim Fang is prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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Source: US FBI

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven Mark McAnally, age 65, of Hugo, Oklahoma, entered a guilty plea to one count of possessing certain material involving the sexual exploitation of a minor.

The Indictment alleged that in July 2023, McAnally knowingly possessed visual depictions from the internet of minors engaging in sexually explicit conduct, which McAnally accessed with intent to view.

The charges arose from an investigation by the Choctaw Nation Lighthorse Police and the Federal Bureau of Investigation.

The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.  McAnally was remanded into the custody of the United States Marshals Service pending sentencing.

Assistant U.S. Attorney Caila M. Cleary represented the United States.

Source: US FBI

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bryson Noel Miller, age 19, of Fort Towson, Oklahoma, entered a guilty plea to one count of Murder in Indian Country.

The Indictment against Miller alleged that on December 23, 2020, Miller killed the victim willfully, deliberately, maliciously, with premeditation and malice aforethought.

According to investigators, on the afternoon of December 22, 2020, Miller, Ashlie Nicole Rose Martin, and Chad Jon’Dale Voyles planned the murders of Martin’s parents, then set their plan into motion.  As part of that plan, Miller participated in bludgeoning Martin’s father to death.  The crimes occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.

The charge arose from an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the Oklahoma Highway Patrol, and the Choctaw County Sheriff’s Office.

The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, Oklahoma, accepted Miller’s plea, ordered the completion of a presentence investigation report, and remanded Miller to the custody of the U.S. Marshals pending sentencing.

Assistant U.S. Attorney Benjamin D. Traster represented the United States.

Source: US FBI

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jacob Matthew Staton, age 29, of Muskogee, Oklahoma, was sentenced to 105 months in prison for one count of Attempted Robbery in Indian Country.

The charge arose from an investigation by the Federal Bureau of Investigation and the Muskogee Police Department.

On July 11, 2024, Staton pleaded guilty to the charge.  According to investigators, on January 4, 2020, Staton attempted to rob a shopper at gunpoint in a Muskogee parking lot.  When Staton’s target refused, Staton pistol whipped the shopper, then fired off two rounds in the shopper’s direction as the shopper fled.  The crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.

The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.  Staton will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.

Assistant U.S. Attorney Jordan Howanitz represented the United States.

Source: US FBI

CLEVELAND, OH—With the FBI release of the 2023 Internet Crime Report and National Consumer Protection Week upon us, FBI Cleveland Special Agent in Charge Greg Nelsen reminds the public about scams and frauds originating from across the globe that target Americans, leaving a trail of victims from coast to coast, including right here in Northern Ohio.

In 2023, phishing, which is the use of unsolicited email, text messages, and telephone calls purportedly from a legitimate company requesting personal, financial, and/or login credentials, was one of the most active Internet-based crimes according to the FBI IC3.gov report. According to the report, over 298,000 people reported phishing-based crimes in 2023. Simply, phishing is just like fishing; the criminal casts a “line” via email, text, or pop-up message to see if there are any nibbles and bites. Eventually, someone ends up taking the bait, consequently, getting reeled in as the catch of the day. As a result, the victim’s computer or device has been compromised and open to hackers, malware, ransomware, and other damaging tools that steal passwords, bank account information, or shut down ones access to their own computer system.

“In 2023, The FBI’s Internet Crime Complaint Center received 880,418 complaints with potential losses exceeding $12.5 billion. This is almost a 10% increase in complaints from 2022 (800,944 complaints received) and a 22% increase in losses from 2022 ($10.3 billion). That’s more than 2,400 complaints every single day,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “Ohio ranked number five in the top 10 states of complaints, and number 17 in victim losses at over $197 million. And while we don’t like to see that number grow, we want to remind everyone to step up and report the crime or attempted scam. That is the only way we can identify criminals, investigate their actions, and dismantle their network.”

As scams continue to increase in scope and sophistication, it’s important that law enforcement and the public work together to stay ahead of the risks. If you have been a victim of an Internet-based financial crime, there is some optimism for recovery. The FBI IC3 Recovery Asset Team (RAT), established in February 2018, streamlines communication with financial institutions and assists FBI field offices with the freezing of funds for victims who made transfers to domestic accounts under fraudulent pretenses. The RAT has about a 71% success rate, with $538MM in losses frozen of the $758MM total losses. This greatly reduced the amount of money that would have been “paid” to bad actors by unsuspecting victims.

Protection Against Phishing Campaigns

• The FBI recommends network defenders apply the following mitigations to reduce the risk of compromise:
  • At work: Educate employees on how to identify phishing, spear-phishing, social engineering, and spoofing attempts.
    • Advise employees to be cautious when providing sensitive information—such as login credentials—electronically or over the phone, particularly if unsolicited or anomalous. Employees should confirm, if possible, requests for sensitive information through secondary channels.
    • Create protocols for employees to send suspicious emails to IT departments for confirmation.
    • Mark external emails with a banner denoting the email is from an external source to assist users in detecting spoofed e-mails.
    • Enable strong spam filters to prevent phishing emails from reaching end users. Filter emails containing executable files from reaching end users.
    • Advise training personnel not to open email attachments from senders they do not recognize.
  • At home: Never accept a pop-up request or open a link that asks you to give control of your computer to another person or perceived entity.
  • Do not give our personal identifying information or provide information as a “correction” if the other person is close.
  • Require all accounts with password logins (e.g., service accounts, admin accounts, and domain admin accounts) to have strong, unique passphrases. Passphrases should not be reused across multiple accounts or stored on the system where an adversary may have access. (Note: Devices with local administrative accounts should implement a password policy that requires strong, unique passwords for each administrative account.)
  • Require multi-factor authentication for all services to the extent possible, particularly for webmail, virtual private networks, and accounts that access critical systems.
  • If there is evidence of system or network compromise, implement mandatory passphrase changes for all affected accounts.
  • Keep all operating systems and software up to date. Timely patching is one of the most efficient and cost-effective steps an organization can take to minimize its exposure to cybersecurity threats.
  • Advise family members not to open email attachments from senders they do not recognize and learn how to check carefully for “look-alike” emails and attachments.
  • Enable strong spam filters to prevent phishing emails from reaching end users. Filter emails containing executable files from reaching end users.

Since its inception, IC3 has received over 8 million complaints. To learn more about these and other scams targeting Americans visit FBI.gov, and if you believe you are the victim of a scam, take action by reporting it to the FBI’s Internet Crime Complaint Center at IC3.gov or by contacting your local law enforcement agency.

Source: US FBI

TOLEDO – Gerald Isom, age 49, of Toledo, Ohio, was sentenced to 300 months in prison by U.S. District Judge James R. Knepp, II, after earlier pleading guilty to two counts of distribution of fentanyl. Isom was also ordered to serve 3 years of supervised release and pay a $200 special assessment and $1,026 in restitution.

According to court documents, during the evening of December 26, 2019, Isom sold fentanyl to a group of five young men who believed they were receiving cocaine. The young men snorted the fentanyl, and all five overdosed. Three of the young men later woke up to find out that two members of group had died as a result of ingesting the fentanyl. That same evening, Isom sold fentanyl to another man who believed he was receiving cocaine. That man also overdosed, but survived after he was revived with Narcan.

The investigation was conducted by the Lucas County Sheriff’s Office and the Federal Bureau of Investigation. This case was prosecuted by Assistant U.S. Attorneys Robert Melching, Alissa Sterling, and Michael Freeman.

Source: US FBI

Cleveland – Anil Mangukia, 39, of Edison, New Jersey, and Yash Navadia, 25 of Secaucus, New Jersey, who were Indian Nationals, were both indicted by a federal grand jury and charged with money laundering conspiracy for their roles in an elder fraud gold bar courier scam (“Courier Scam”) targeting older Americans. They allegedly stole more than $127,000 and attempted to steal an additional $650,000 from a victim in Warrren, Ohio.

According to court documents, coconspirators posed as a customer service employee at a company or bank. They contacted a victim—typically an elder person—and falsely claimed that the victim’s account was at risk or had been compromised by a hacking event or similar computer intrusion. The purported customer service employee then referred the victim to another perpetrator who posed as a government agent, claiming that the fake government agent would assist the victim in avoiding or mitigating the effects of the account compromise. The fake government agent would discuss the incident with the victim, validate the false story told by the purported customer service or bank employee, and instruct the victim to either (1) move the victim’s money to another account that the perpetrators controlled, or (2) purchase gold or other valuable items and move them to the perpetrators’ account, claiming that the new account was secure and safe from the purported hackers. The perpetrators then used the stolen funds for their own benefit, without the victim’s knowledge or consent.

According to court documents, the defendants caused their victims to engage in several different types of transfers, such as the following: (i) withdrawing currency, converting it to cryptocurrency, and transferring the cryptocurrency to the coconspirators, who claimed they would deposit it into secure accounts; (ii) initiating bank transfers directly from victim’s accounts to acquire things of value that were handed over or otherwise transferred to coconspirators, who claimed that they would then convert those items into funds and deposit them in a secure account for the victim.

According to court documents, the defendants and their coconspirators also obtained proceeds from the Courier Scam directly from victims, traveling to meet victims either at their homes or nearby designated locations. There, the victims would give the defendants and their coconspirators U.S. currency, gold bars, or gold coins under false pretenses, persuaded that the perpetrators would secure the victims’ property.

“Our Office is committed to investigating and prosecuting those who commit financial scams that defraud our elderly citizens of their hard-earned savings,” said U.S. Attorney Rebecca C. Lutzko. “Financial fraud schemes of any variety cause serious financial harm to our community members, but those that target the elderly are particularly reprehensible. We encourage all members of the public to remain vigilant against such hoaxes and report suspected scams to law enforcement.”

“The FBI is focused on finding and investigating criminals preying on the trust of older Americans,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “Scams are becoming more complex, with several layers of deceit in their ploy and bad actors working in groups to give the illusion of legitimacy. The FBI will not yield in its pursuit to identify these criminals and dismantle scam and fraud-based networks.”

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it is 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.

This investigation was conducted by the Cleveland Division of the FBI. This case is being prosecuted by Assistant U.S. Attorneys Yasmine Makridis and Brian M. McDonough.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. 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. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals on a case-by-case basis. Reporting is the first step. 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. The hotline is staffed seven days a week from 10:00 a.m. to 6:00 p.m. eastern time. English, Spanish and other languages are available.

Source: US FBI

CLEVELAND – Ciaran Dillon, 57, of Orlando, Florida, was sentenced to 18 months imprisonment and ordered to pay a $25,000 fine by U.S District Judge Christopher A. Boyko after pleading guilty to defrauding multiple states of sales tax revenue where the restaurant chain operated. Dillon, was the former Chief Financial Officer (CFO) of CDG Acquisition, LLC (CDG), a company registered in the State of Ohio, which owned “The Claddagh Irish Pubs” chain of restaurants.

According to court documents, from January 2010 through May 2018, the defendant, acting in his official capacity as CFO of CDG, directed a company accountant to pay certain states less sales tax than the true amount owed. Based on the defendant’s instruction, the accountant would edit the company’s sales and sales tax figures, file false tax returns and pay states the amount instructed by the defendant. In total, the defendant defrauded the States of Indiana, Kentucky, Illinois, Michigan, Minnesota, Ohio, Pennsylvania and Wisconsin out of more than $1 million in sales tax revenue collected from CDG customers across fifteen restaurants.

The Court determined the defendant’s sentence after a review of factors unique to the case and the defendant, including the defendant’s role in the offenses and the nature of the crimes.

This investigation was conducted by the Federal Bureau of Investigation, Cleveland Division. The case was prosecuted by Assistant United States Attorney Alejandro A. Abreu.