Category: Security

Source: US FBI

Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging CHEUK FUNG RICHARD HO with theft and attempted theft of trade secrets.  The charges in the Indictment arise from HO’s alleged scheme to steal trade secrets from his former employer (“Firm-1”), a global quantitative trading firm.  HO was arrested this morning in Los Angeles, California, and will be presented this afternoon before U.S. District Court for the Middle District of California, Magistrate Judge the Honorable Joel Richlin.

Acting U.S. Attorney Edward Kim said: “As alleged, Cheuk Fung Richard Ho abused the trust his former employer placed in him and stole trade secrets to use at his own quantitative trading firm.  Ho allegedly tried to cover his tracks by lying to his former employer repeatedly and asking his employees to delete evidence.  Thanks to the FBI, Ho is now in custody.”

FBI Assistant Director in Charge James E. Dennehy said: “Cheuk Fung Richard Ho allegedly stole and unlawfully shared private proprietary information to clandestinely develop his own firm in collaboration with his employer’s competitors.  The defendant allegedly abused his trusted position by breaching company confidentiality agreements to the detriment of his former firm.  The FBI will continue to apprehend any individual who attempts to garner success through manipulative and dishonest business strategies.”

As alleged in the Indictment:^[1]

From approximately July 2019 to approximately August 2021, HO was a research developer and quantitative trader at Firm-1, a global, quantitative trading firm, which trades in equities and other securities on exchanges located in the U.S. and abroad.  Firm-1’s proprietary source code (“Firm-1’s Source Code”), the development of which took years and cost Firm-1 more than one billion dollars, has been the linchpin of Firm-1’s success in these markets.  During the period of HO’s employment at Firm-1, Firm-1 took substantial measures to protect the confidentiality of its Source Code.  Among other things, Firm-1 limited access to Firm-1’s Source Code to only those individuals, like HO, who needed access to it in connection with the duties of their employment.  Employees with access to Firm-1’s Source Code were required to enter into agreements with Firm-1 in which they acknowledged the importance of keeping Firm-1’s Source Code secret and promised to protect the confidentiality of that Source Code throughout their employment—and after their employment concluded.  Firm-1 also implemented numerous physical and network security protocols to prohibit unauthorized access to Firm-1’s Source Code.

In or about the spring of 2021, HO secretly started his own quantitative trading firm (“Firm-2”), which partnered with one of Firm-1’s competitors (“Firm-3”). While still employed at Firm-1, and while taking advantage of the nearly complete access to Firm-1’s Source Code afforded to him as a result of that employment, HO stole valuable trade secrets from Firm-1 (the “Stolen Trade Secrets”) for use in developing the source code for Firm-2 (“Firm-2’s Source Code”). The Stolen Trade Secrets included, among other things, some of the very building blocks of Firm-1’s Source Code, known as “Atoms,” as well as some of its predictive formulas, known as “Alphas.” By stealing these trade secrets, HO was able to quickly launch Firm-2 and begin trading successfully.

Aware that he had misappropriated Firm-1’s trade secrets—and knowing that this theft would injure Firm-1—HO repeatedly lied to Firm-1 about his plans after his employment with Firm-1 concluded.  For example, when Firm-1 asked HO about his post-Firm-1 employment plans, HO omitted any mention of the fact that he had started Firm-2 and he misrepresented his affiliation with Firm-3.  And once Firm-1 learned that HO had started Firm-2, HO sought to destroy evidence.  He directed his employees to delete their internal communications and further directed them to delete the source code history for Firm-2’s Source Code, a direction that HO’s employees did not follow.

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HO, 36, of Los Aneles, California, is charged with one count of theft and attempted theft of trade secrets, which carries a maximum sentence of 10 years in prison.

The statutory maximum sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Kim praised the investigative work of the FBI.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Rushmi Bhaskaran and Ni Qian are in charge of the prosecution.

The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Source: US FBI

Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced that ROBERT PIARO, the treasurer of multiple political action committees (“PACs”), pled guilty today to committing telemarketing wire fraud in connection with his scheme to defraud donors to his PACs through false and misleading statements.  PIARO pled guilty before U.S. District Judge Arun Subramanian. 

Acting U.S. Attorney Edward Y. Kim said: “Robert Piaro deceived hundreds of thousands of donors through false statements and misrepresentations about how contributions to his PACs would be spent.  Piaro’s fraudulent actions not only undermined the trust of donors but also exploited their interest in supporting certain causes for his own personal gain.  Today’s plea highlights this Office’s dedication to holding accountable those who misuse political organizations to defraud and mislead the public.”

According to the allegations in the Indictment, court filings, and statements made in Court:

PACs are entities registered with the Federal Election Commission that may be tax-exempt and collect money to advocate on behalf of or against certain causes and political candidates. 

From at least in or about 2017 up to and including at least in or about December 2022, PIARO was the treasurer and operator of four PACs: Americans for the Cure of Breast Cancer, the Association for Emergency Responders & Firefighters, the US Veterans Assistance Foundation, and Standing By Veterans (the “PIARO PACs”).  PIARO raised millions of dollars from hundreds of thousands of donors nationwide through false statements and misrepresentations about how contributions to the PIARO PACs would be spent.  For example, at PIARO’s direction, the PIARO PACs misrepresented to donors that donations would be used to advance specific legislation, educate lawmakers, and conduct and fund research, when PIARO did not and did not intend to follow through on those representations.    

If you believe you are a victim of fraud perpetrated by PIARO, please contact USANYS.PACFraud@usdoj.gov or the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI or tips.fbi.gov, and find more information here: https://www.justice.gov/usao-sdny/united-states-v-robert-piaro.

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PIARO, 74, of Fredonia, Wisconsin, pled guilty to one count of wire fraud in connection with telemarketing, which carries a maximum sentence of 25 years in prison.

The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  PIARO is scheduled to be sentenced by Judge Subramanian on April 14, 2025.

Mr. Williams praised the outstanding investigative work of the FBI.   

This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Rebecca T. Dell and Jane Kim are in charge of the prosecution.

Source: US FBI

During a Call for Assistance, Sgt. Mario Stewart Tased a Handcuffed, Restrained Individual Seven Times in Two Minutes

Source: US FBI

Defendant Used Straw Donors and Submitted Forged Documents in Attempt to Steal $400,000 in Matching Funds From New York City

Source: US FBI

BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Mario Pittman Jr., 30, of Buffalo, NY, with possession with intent to distribute methamphetamine, which carries a maximum penalty of life in prison.

Assistant U.S. Attorney Jeffrey E. Intravatola, who handled the case, stated that according to the indictment and a previously filed complaint, since March 2024, the FBI Safe Streets Task Force and the Lackawanna Police Department have been investigating Pittman’s drug trafficking activities. The investigation included multiple controlled purchases of methamphetamine from Pittman. The investigation also determined that Pittman has two prior violent felony convictions.

The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Lackawanna Police Department, under the direction of Chief Mark Packard, and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia.

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

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Source: US FBI

BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that John Stuart, 35, of Cheektowaga, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to possession of child pornography involving a prepubescent minor, which carries a maximum penalty of 20 years in prison, and a fine of $250,000.

Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that in August 2019, the FBI received a lead indicating that in May 2019, an online user accessed child sexual abuse and exploitation material via a website on the Tor network. Subsequent investigation traced the IP address to Stuart. In October 2020, a search warrant was executed at Stuart’s residence, during which law enforcement seized multiple electronic devices, including two laptop computers, a cell phone, a hard drive, and a desktop computer tower. A forensic review recovered approximately 8,000 videos and approximately 2,000 images of child pornography on one of the laptops, and approximately 150 images and one video of child pornography on the second laptop. Approximately 90 images and 150 videos of child pornography were recovered from the cell phone and approximately 90 images and two videos on the hard drive. Some of the images included depictions of violence against children.

Stuart also admitted during his plea that during the execution of the search warrant, law enforcement recovered live marijuana plants, more than a pound of dried marijuana ready for consumption, and that he was a chronic user of marijuana. Stuart was also found to be in possession of three firearms. Because he was a user of controlled substances, Stuart was legally prohibited from owning or possessing firearms.

The plea is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Cheektowaga Police Department, under the direction of Chief Brian Coons. 

Sentencing will be scheduled at a later date.    

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Source: US FBI

BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a three-count indictment charging Robert L. Robinson with possession with intent to distribute cocaine,  possession with intent to distribute cocaine, possession of firearms in furtherance of drug trafficking, and being a felon in possession of firearms. The charges carry a maximum penalty of life in prison.

Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the indictment and a previously filed complaint, on June 7, 2024, law enforcement executed a search warrant at Robinson’s Buffalo residence. During the search, investigators recovered quantities of suspected cocaine and marijuana, $35,869.00 in cash, two firearms, ammunition, and drug paraphernalia. One of the firearms was reported as a duty weapon stolen from a member of the Miami Dade Police Department on July 18, 2019. After the execution of the search warrant, Robinson was taken into custody.

Robinson was previously convicted of felony crimes in 2003 and 2011 and is legally prohibited from possessing firearms.

The indictment is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia. 

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

Source: US FBI

BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Scott Millar 55, of Buffalo, NY, who was convicted of possession of child pornography, was sentenced to serve 138 months in prison by U.S. District Judge Richard J. Arcara.

Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated in July 2023, Millar was under the supervision of the United States Probation Department based on a 2009 conviction for possessing child pornography. A condition of his supervision was that he was not allowed to commit another criminal offense. A probationary search of Millar’s telephone revealed images and videos of child pornography. 

The sentencing is the result of an investigation by the Federal bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the United States Probation Office, under the direction of Chief Probation Officer Timothy Englert.

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Source: US FBI

BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Michael E. Swain, 36, of Tonawanda, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to production of child pornography, carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.

Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between October 20 and November 1, 2021, Swain coerced five minor victims to engage in sexually explicit conduct for the purpose of producing visual depictions. Specifically, Swain communicated with a 15-year-old minor female who resided in Colorado using Discord, a social media platform. The communications included sexually graphic conversations, during which Swain requested that the minor female take sexually explicit videos and images and send them to him. In addition, Swain engaged in numerous sexual communications with the minor female from approximately 2019 to 2022, during which other sexually explicit images and videos were sent to Swain. On February 28, 2023, the FBI executed a search warrant at Swain’s residence and seized a desktop computer tower, a laptop computer, and an external hard drive, all of which were found to contain child pornography.

The plea is the result of an investigation by the Tonawanda Police Department, under the direction of Chief James Stauffiger, the Federal Bureau of Investigation Buffalo Office Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the New York State Police, under the direction of Stanley Edwards III.     

Sentencing is scheduled for December 4, 2024, at 2:00 p.m. before Judge Vilardo.

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Source: US FBI

ALBANY, NEW YORK – Eduardo Abreu, age 48, of Latham, New York, was arrested yesterday on a criminal complaint charging him with receipt of child pornography. 

United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

The criminal complaint alleges that on or about August 21, 2024, Abreu received approximately 225 images of child pornography over the internet.  The charges in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

Abreu appeared yesterday in Albany before United States Magistrate Judge Christian F. Hummel, and ordered detained pending a detention hearing scheduled for Thursday, August 29. 

Abreu faces at least 15 years and up to 40 years in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Abreu may also be ordered to pay restitution to the victims of his offense and forfeit any devices used in the offense. Abreu would also have to register as a sex offender upon his release from prison.

The FBI’s Child Exploitation and Human Trafficking Task Force is investigating the case. Assistant U.S. Attorney Allen J. Vickey is prosecuting the case.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.