Category: Security

Source: US FBI

ALBANY, NEW YORK – Kris Roglieri, age 44, of Queensbury, New York, has been indicted on wire fraud charges.

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.

Roglieri operated Prime Capital Ventures, LLC (“Prime Capital”) and Prime Commercial Lending, LLC (“Prime Commercial”), among other companies, that were based in Albany.

The indictment and an earlier-filed criminal complaint allege that Prime Capital held itself out as a commercial lending business. As part of contractual arrangements with its borrower clients situated across the country, Prime Capital obtained upfront interest payments from prospective borrowers while it sought to secure loans for those borrowers; these upfront interest payments were characterized by Prime Capital as the “Interest Credit Account Payment,” or “ICA” payment for short. ICA payments did not represent fees to Prime Capital. Instead, each borrower’s upfront ICA payment would be debited over time as the loan was funded and accrued more interest. An ICA payment would also be refundable if Prime Capital failed to secure a loan for the borrower client.

Roglieri is alleged to have defrauded a Minnesota company in December 2023, by committing to fund, through Prime Capital, an approximately $100 million commercial project, even though, at the time, Prime Capital had failed to fund numerous loans promised to earlier clients; failed to return tens of millions of dollars in ICA payments to earlier clients once those loans did not materialize; and had been sued multiple times by clients alleging fraud and seeking the return of ICA payments.

On December 22, 2023, Roglieri, on behalf of Prime Commercial, signed a Deposit Agreement by which he agreed to keep the Minnesota company’s ICA payment in a “separate and distinct” bank account, and to hold it as a “trust fund.”  That same day, the Minnesota company wire transferred a $5 million ICA payment to a Prime Capital account controlled by Roglieri. Roglieri then transferred and spent these funds, including by transferring $950,000 in order to meet a financial obligation to another Prime Capital client; paying $84,000 for his purchase of a Rolex day-date 36 mm yellow gold diamond bezel watch; paying $101,000 to a private jet services company, for round-trip, private air travel between Albany International Airport and Anguilla, for a family vacation that Roglieri took from about December 29, 2023 to January 5, 2024; and paying $400,000 to a law firm that represented Prime Capital in court proceedings.   

The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

If convicted, Roglieri faces up to 20 years in prison and a maximum $250,000 fine per count, as well as up to 3 years of supervised release. 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.

United States Magistrate Judge Christian F. Hummel ordered Roglieri detained after Roglieri’s May 31, 2024 arrest on the criminal complaint.

The FBI is conducting this ongoing investigation. Assistant U.S. Attorneys Joshua R. Rosenthal and Michael Barnett are prosecuting this case.

Source: US FBI

ALBANY, NEW YORK – Richard Nejame, age 29, of Schenectady, New York, was sentenced today to serve 240 months (20 years) in federal prison, to be followed by 25 years of supervised release, for receiving and attempting to receive 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.

As part of his guilty plea, Nejame admitted that between about October 2022 and May 1, 2023, he communicated with several different minor females over various social media applications to include Snapchat.  Nejame further admitted that his online personas on social media claimed that he was a teenage boy.  During Nejame’s online communications with the minor females, he encouraged them to take nude pictures and videos of themselves, and to then send the pictures and videos to him.  Once in receipt of the nude picture and videos of the minor females, Nejame directed the females to take more sexually explicit pictures and videos of themselves, to send those sexually explicit pictures and videos of themselves to him, and that if the females did not comply with his demands, Nejame would threaten to embarrass and expose the females by publishing their pictures and videos on the Internet. 

In addition to the imprisonment and supervised release terms, Nejame will be required to register as a sex offender upon release from imprisonment. 

The FBI’s Albany Division Child Exploitation and Human Trafficking Task Force investigated this case.  The Task Force includes members of federal, state, and local law enforcement agencies. Assistant United States Attorneys Rick Belliss and Benjamin S. Clark prosecuted the case as part of Project Safe Childhood.

Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state, and local resources to better locates, 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.

Source: US FBI

SYRACUSE, NEW YORK – Brien Fredendall, age 46, of Port Byron, New York, pled guilty today to two counts of possession 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.

As part of his guilty plea, Fredendall, who has a previous New York State conviction for possession of child pornography, admitted that he possessed videos and images of child pornography he received from a minor on his Snapchat account. He also admitted to possessing additional child pornography on his cellular phone.

Sentencing is scheduled for January 21, 2025, before Chief United States District Judge Brenda K. Sannes.  Fredendall faces a mandatory minimum sentence of ten years in prison, a maximum sentence of 20 years in prison, a fine of up to $250,000.00 and a term of supervised release of between five years and life, to begin after imprisonment. Fredendall will also be required to continue to register as a sex offender upon his release from prison. 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.

This case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force with the assistance of the Cayuga County Sherriff’s Office. Special Assistant U.S. Attorney Paul Tuck prosecuted Fredendall as part of Project Safe Childhood. 

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).  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 https://www.justice.gov/psc.

Source: US FBI

David Hughes, aka Danielle Starr, Obtained a Sexually Explicit Video from a Minor He was Communicating with Over the Internet

Source: US FBI

ALBUQUERQUE – A federal grand jury has indicted an Albuquerque man for interstate communications containing a threat against then President Donald J. Trump.

The criminal complaint alleges that Tyler Miles Leveque, 37, made multiple threatening social media posts between January 2 and 4, 2025, expressing intent to harm the President-Elect and others at an upcoming rally. The posts included statements such as “you and your rich friends are dead no threat a promise” and references to violence at an event reportedly planned for January 19th in Washington D.C.

During an interview with agents from the U.S. Secret Service and the Federal Bureau of Investigation on January 6, 2025, Leveque admitted to making the threatening posts and recently purchasing a firearm. Investigators confirmed Leveque had recently bought a gun from a local business.

Leveque will remain in custody pending trial, which has not been scheduled. If convicted, Leveque faces up to five years in prison.

U.S. Attorney Alexander M.M. Uballez, Ron Emmot, Resident Agent in Charge of the U.S. Secret Service Albuquerque Resident Office, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

The U.S. Secret Service investigated this case with the assistance of the FBI Albuquerque Field Office and the Albuquerque Police Department. Assistant U.S. Attorney Sammy Hurtado is prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Source: US FBI

ALBUQUERQUE – A federal grand jury has indicted three individuals for their alleged roles in a large-scale marijuana cultivation and distribution operation. The indictment charges Dineh Benally, 48, his father, Donald Benally, 74, and Irving Rea Yui Lin, 73, a California resident, with multiple offenses related to the illegal marijuana operation.

The charges include conspiracy to manufacture and distribute marijuana, manufacture of 1,000 kilograms and more of marijuana and 1,000 and more marijuana plants, possession with intent to distribute 1,000 kilograms and more of marijuana and 1,000 and more marijuana plants, maintaining drug-involved premises, and two counts of knowingly discharging pollutants into waters of the United States without a permit.

According to the indictment, the operation involved:

• 25 farms covering approximately 400 acres in the Shiprock area
• Construction of approximately 1,107 cannabis greenhouses
• Solicitation of Chinese investors to fund the operation
• Recruitment of Chinese workers to cultivate the marijuana

The defendants are also accused of violating the Clean Water Act by discharging pollutants into the San Juan River, filling in a channel along the San Juan River dam, and installing a sandbag dam along the San Juan River. These actions potentially caused significant environmental damage to the area.

The sandbag dam was installed so that water would pool at a separate location to be used to irrigate the marijuana crops.

In November 2020, law enforcement seized approximately 60,000 pounds of marijuana and approximately 260,000 marijuana plants from the twenty-five marijuana farms allegedly operated and controlled by the defendants.

On January 23, 2025, during a raid on two additional marijuana farms operated by Dineh Benally in Estancia, New Mexico (as well as his residence), law enforcement identified 10 Chinese workers and seized approximately 8,500 pounds of marijuana, $35,000 cash, illegal pesticides, 43 grams of methamphetamine, two firearms, and a bullet proof vest, among many other things.

Benally’s illegal marijuana growing operation that spans two farms in Estancia, New Mexico

“The Department of Justice will protect the sanctity of the ancestral lands and waters of our Tribal partners from those who would exploit them for profit,” said U.S. Attorney Uballez.

“The FBI remains committed to continue to dismantle criminal organizations operating in New Mexico.” said Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Division. “Effective law enforcement requires strong partnerships at every level. This operation is a testament to the power of collaboration between state, local, tribal, and federal agencies to ensure justice is served and our communities are protected.

If convicted, the defendants each face no less than 10 years and up to life in prison.

U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, and Kim Bahney, Special Agent in Charge of the Dallas Area Office of the EPA Criminal Investigation Division, made the announcement today.

The FBI Albuquerque Field Office and U.S. Environmental Protection Agency investigated this case with the assistance of the Bureau of Indian Affairs, U.S. Drug Enforcement Administration, Internal Revenue Service, and the Navajo Nation Police Department. In addition, the following law enforcement agencies participated in the law enforcement operation: Torrance County Sheriff’s Office, Valencia County Sheriff’s Office, United States Border Patrol, Homeland Security Investigations, New Mexico Department of Justice, New Mexico State Police, and the FBI El Paso Field Office. Assistant U.S. Attorney Matthew McGinley is prosecuting the case.

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25-43

Source: US FBI

ALBUQUERQUE – A Mescalero man pleaded guilty to sexually assaulting a teen 20 years his junior.

According to court documents, Thomas Lee Chaffins, 35, an enrolled member of Mescalero Apache Tribe, admitted to sexually assaulting a 15-year-old girl on September 27, 2024, in Otero County, New Mexico, on the Mescalero Apache Indian Reservation.

Chaffins will remain detained pending sentencing, which has not yet been scheduled. At sentencing, Chaffins faces up to 15 years in prison.

U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

The Las Cruces Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs. Assistant United States Attorneys Matilda McCarthy Villalobos and Alyson Hehr are prosecuting the case.

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Source: US FBI

ALBUQUERQUE – Two Santa Fe men were sentenced to federal prison for their roles in a fentanyl and methamphetamine trafficking operation that utilized social media to advertise and distribute drugs.

According to court documents, the Santa Fe Police Department (SFPD) and the FBI began investigating a fentanyl-based drug-trafficking organization in the fall of 2020. During the investigation, officers uncovered the defendants, Mario Guizar-Anchondo and Werni Lopez-Perez, social media activity advertising the sale of fentanyl and methamphetamine.

In December 2021, SFPD officers encountered Guizar-Anchondo and Lopez-Perez twice.

• December 4, 2021: SFPD responded to a report of suspected drug activity involving Lopez-Perez in a white Ford F-150 truck. A search of the vehicle resulted in the discovery of a loaded firearm, over $18,000 in cash, 635 grams of methamphetamine, 40 grams of fentanyl pills, and drug paraphernalia.
• December 30, 2021: SFPD officers stopped the same Ford F-150 truck, this time driven by Guizar-Anchondo with Lopez-Perez as the passenger. A search of the vehicle, authorized by federal and state warrants, revealed approximately 1,730 grams of methamphetamine, 32,000 fentanyl pills, five loaded firearms, and additional drug paraphernalia.

Despite the ongoing investigation, Guizar-Anchondo and Lopez-Perez continued to advertise fentanyl pills for sale on social media platforms. These posts depicted baggies of fentanyl pills similar to those recovered from the vehicle.

Lopez-Perez and Guizar-Anchondo both pled guilty to one count each of possession with intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime. Lopez-Perez was sentenced to 80 months in prison, while Guizar-Anchondo was sentenced to 108 months.

Upon their release from prison, Lopez-Perez and Guizar-Anchondo will be subject to 3 years of supervised release.

There is no parole in the federal system.

U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Santa Fe Police Department. The United States Attorney’s Office is prosecuting the case.

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Source: US FBI

ALBUQUERQUE – A Shiprock man was sentenced to 23 years in federal prison today for the fatal stabbing of John Doe at a gas station in Shiprock, New Mexico in 2021.

There is no parole in the federal system.

According to court documents, on October 24, 2021, following a night of drinking and socializing with friends, Marc Gene Clark, 47, an enrolled member of the Navajo Nation, confronted John Doe in the parking lot of a gas station. During the confrontation and without provocation, Clark stabbed Doe with a knife, resulting in significant blood loss and ultimately leading to Doe’s death later that day.

Surveillance video footage captured the stabbing. Clark was subsequently arrested at a nearby laundromat by officers from the Navajo Nation Police Department, and the knife used in the stabbing was found in his possession.

Upon his release from prison, Clark will be subject to five years of supervised release.

U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.

The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant United States Attorneys Matthew J. McGinley and Paul J. Mysliwiec prosecuted the case.

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Source: US FBI

NEWARK, N.J. – An indictment was unsealed today charging the former CEO of 500.com (now BIT Mining Ltd.), Zhengming Pan, a Chinese national, with violations of the Foreign Corrupt Practices Act (FCPA). BIT Mining Ltd. has agreed to resolve investigations by the Justice Department and the Securities and Exchange Commission (SEC) into related FCPA violations arising from the company’s participation in a corrupt scheme to pay bribes to Japanese government officials.

BIT Mining entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the District of New Jersey charging BIT Mining with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA and one count of violating the books and records provisions of the FCPA.

A federal grand jury in the District of New Jersey returned an indictment against Pan on June 18. Pan is charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.

“Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, directed consultants to pay bribes to Japanese government officials to win a bid to open a large resort in Japan. The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them. The company has admitted its crimes and agreed to pay a $10 million penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”

U.S. Attorney Philip R. Sellinger

“BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2 million in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan,” Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, said. “Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”

“Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct,” Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division said. “This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”

According to court documents, between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its -CEO Pan, employees, and agents, agreed to pay approximately $1.9 million in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials. The purpose of the bribes was to try to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities, and entertainment venues) in Japan. On behalf of 500.com, Pan allegedly engaged third-party consultants to assist 500.com in paying and concealing these bribes. 500.com, through these consultants, paid bribes in the form of cash, travel, entertainment, and gifts. Pan and others allegedly covered up the payment of these bribes by, among other things, entering into sham contracts with the consultants and falsely recording the payments as legitimate expenses, including as management advisory fees. Ultimately, despite carrying out this bribery scheme, 500.com did not win an integrated resort bid in Japan.

Pursuant to the DPA, BIT Mining agreed, based on the application of the U.S. Sentencing Guidelines, that the appropriate criminal penalty is $54 million. However, due to BIT Mining’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, BIT Mining and the Justice Department agreed, consistent with the department’s inability to pay guidance, that BIT Mining will pay a total criminal penalty of $10 million. The Justice Department has agreed to credit up to $4 million against the civil penalty BIT Mining has agreed to pay to the SEC to resolve a parallel investigation.

BIT Mining has also agreed to continue to cooperate with the Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in any ongoing or future criminal investigations. In addition, BIT Mining has agreed to continue to enhance its compliance programs and provide reports to the Justice Department regarding remediation and the implementation of compliance measures for the three-year term of the DPA.

The Justice Department reached this resolution with BIT Mining based on a number of factors, including, among others, the nature and seriousness of the offense. BIT Mining received credit for its cooperation with the department’s investigation, which included (i) voluntarily producing relevant documents, financial data, and other information, including from foreign countries, while navigating some foreign data privacy and related criminal laws, accompanied by translations of a limited number of documents; and (ii) providing the government with facts learned during its internal investigation. The cooperation was, however, reactive and limited in degree and impact.

BIT Mining engaged in certain timely remedial measures, which included, among other things, (i) increasing governance and oversight of compliance risks and audit findings by the Board of Directors, (ii) promoting compliance and ethics through company-wide communications, (iii) incorporating compliance criteria in performance evaluations for senior management, (iv) conducting annual risk assessments, (v) creating an anti-corruption policy and engaging in company-wide training and communications to promote it, and (vi) transitioning its business model to an industry that presents a lower corruption risk and reducing its presence in high risk regions. In light of these considerations, BIT Mining’s criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable guidelines fine range.

The FBI’s International Corruption Unit is investigating the case.

Assistant U.S. Attorney Jennifer Kozar for the District of New Jersey and Trial Attorneys Jil Simon and Ligia Markman of the Criminal Division’s Fraud Section are prosecuting the cases.

The Justice Department’s Office of International Affairs and authorities in Japan provided assistance in this matter.

The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.