Category: Security

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Dual U.S. and Albanian Citizen Arrested for Attempting to Provide Material Support to ISIS and Distributing Instructions Regarding Homemade Explosives

Source: US FBI

A former New York man and dual citizen of the United States and Albania was arrested yesterday in New York on criminal charges related to his alleged involvement in attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS) and distributing instructional information regarding the making of explosives.

According to court documents, Erald Alimehmeti, 33, of Tirana, Albania, is a former resident of the Bronx, New York, and moved to Albania in 2014. Alimehmeti was arrested by Albanian authorities and imprisoned in late 2015 to 2019 and again from late 2020 to 2022 for weapons and assault offenses.

Between prison terms, Alimehmeti created and used numerous online accounts on encrypted messaging applications and social media websites to communicate with others about planning and training for attacks on behalf of ISIS. For example, in 2019, Alimehmeti expressed interest in “DC sniper” style attacks and referenced an “op” for which he sought the participation of confidential sources, writing, among other things, “Do you know sniping akhi? The formulas and ballistics?” and “I will brief you brothers right before the op, not here akhi. Do you both know how to use red dot optics and how to zero them?” Alimehmeti also requested what he described as “tactical” equipment and “gear” for “training” and “operations” in support of ISIS, including particular models of vests capable of holding “ballistic plates,” “magazine pouches,” and “knives,” and described modifications he intended to make to his “AKM,” an apparent reference to an assault rifle.

In addition, in 2019 and 2020, Alimehmeti regularly posted pro-ISIS propaganda online, praising specific ISIS leaders and promoting ISIS-issued publications and videos. For example, Alimehmeti’s social media posts included praise of the ISIS propagandist Shaykh ul-Haqq Musa Cerantonio and the Libyan terrorist and high-ranking al Qaeda official Abu Yahya al-Libi; photographs of various jihadist publications, such as “The Islamic Ruling of the Permissibility of Self-Sacrificial Operations: Suicide, or Martyrdom?” and “The Book of Jihad”; and a video depicting the killing of U.S. Special Forces in Niger and an accompanying comment in Albanian, which translates to: “The Islamic State in Africa killing crusaders, American and French special forces. Look at how the US special forces scream before they die!!! Hahaha!”

Alimehmeti also described his work compiling resources on mixing dangerous chemicals and making explosives to a confidential source and discussed how to make specific types of incendiaries to spray at innocent bystanders in a terrorist attack. On an encrypted messaging channel, Alimehmeti posted dozens of links and downloadable documents on topics such as explosives-making, firearms-handling, defensive tactics, and outdoor survival, with comments encouraging the use of these resources. For example, he posted a video and described it as “a video release from the official media of the Khilafa, explaining how YOU O Muwahid can make TATP explosives in your own home … SO FIGHT THEM O MUWAHID,” an apparent reference to a well-known ISIS video titled, “You Must Fight Them O Muwahhid,” which provides step-by-step instructions for constructing a TATP-based explosive device and attacking a human target with a knife.

Alimehmeti is charged with one count of attempting to provide material support to ISIS, which carries a maximum penalty of 20 years in prison, and one count of distribution of information pertaining to explosives, destructive devices, and weapons of mass destruction in furtherance of a federal crime of violence, which carries a maximum penalty of 20 years in prison.

The FBI’s New York Joint Terrorism Task Force, which consists principally of agents and analysts from the FBI and detectives from the New York City Police Department, is investigating the case. The Justice Department’s Office of International Affairs, Department of Homeland Security’s Homeland Security Investigations, and law enforcement partners in Albania and Australia, including the Australian Attorney-General’s Department, provided valuable assistance.

Assistant U.S. Attorneys Nicholas S. Bradley and Jane Y. Chong for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Jessica K. Fender of the National Security Division’s Counterterrorism Section.

A criminal complaint 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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Former Arizona Elected Official Pleads Guilty to Embezzlement of More Than $38 Million of County Funds

Source: US FBI

A former Santa Cruz County, Arizona, official pled guilty today to embezzlement, money laundering, and tax evasion for her role in stealing more than $38 million of Santa Cruz County funds between 2014 and 2024 and failing to pay income tax of more than $13 million while she was serving as Santa Cruz County Treasurer.

According to court documents, Elizabeth Gutfahr, 62, who served as Santa Cruz County Treasurer from 2012 through 2024, embezzled and laundered approximately $38 million by wiring funds from Santa Cruz County’s Account directly to accounts in the name of companies that Gutfahr had created for purposes of stealing the county funds. Gutfahr then wired the money from these fraudulent business accounts to her personal account, where she used the money to purchase real estate, pay operating expenses for and renovate her family ranch, pay expenses for her cattle business, and purchase at least 20 vehicles.

“Elizabeth Gutfahr stole $38 million from the people of Santa Cruz County, Arizona, during the 12 years she served as their County Treasurer,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “We expect public officials to serve as stewards of the government fisc — not to loot it. Today’s plea demonstrates yet again that the Justice Department remains committed to rooting out public corruption at all levels of government.”

“Local property taxes fund our communities, enrich our schools and shape our futures,” said U.S. Attorney Gary Restaino for the District of Arizona. “In her plea agreement the defendant admits to defrauding her County by embezzling those taxes. We look forward to working with the Receiver appointed by the Superior Court to recoup the County’s funds.”

“Today’s guilty plea is a reminder that those entrusted with public funds are not above the law,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Gutfahr deliberately calculated a scheme to embezzle taxpayer dollars and then launder those funds for her own personal use. This breach of trust not only robs taxpayers but undermines the integrity of public office. The FBI remains unwavering in its pursuit to hold accountable those who exploit their positions for selfish purposes.”

“We cannot overemphasize our dedication to rooting out public corruption from our communities,” said Special Agent in Charge Carissa Messick for IRS Criminal Investigation (IRS-CI)’s Phoenix Field Office. “I am proud of the dedicated work IRS-CI special agents put into investigating this case alongside our fellow law enforcement agencies. Through her embezzlement scheme, Elizabeth Gutfahr stole from the very constituents who elected her. Let this guilty plea serve as a reminder to all who are tempted to use their positions of power to enrich themselves at the cost of the American people: IRS-CI special agents are experts at following the money, and we will continue to investigate allegations of fraud at all levels.”

Court documents detailed that the scheme involved approximately 187 wire transfers, which Gutfahr completed by subverting the two-step approval process for the wire transfers by using the token of a subordinate Santa Cruz County employee so that Gutfahr could both initiate and approve the wire transfers. Additionally, to cover up the scheme, Gutfahr falsified accounting records, cash reconciliation records, and reports of the County’s investment accounts to conceal the millions of dollars that she had stolen from Santa Cruz County. Gutfahr also failed to report any of the stolen funds as income for tax purposes.

Gutfahr pleaded guilty to one count of embezzlement by a public official, one count of money laundering, and one count of tax evasion. She is scheduled to be sentenced on Feb. 6, 2025, and faces a maximum penalty of 10 years in prison for the embezzlement count, 20 years in prison for the money laundering count, and five years in prison for the tax evasion count, as well as restitution to Santa Cruz County or other identified victims for all losses. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

FBI and IRS-CI are investigating the case.

Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Jane Westby for the District of Arizona are prosecuting the case. Assistant U.S. Attorney Carson R. Gilbert, formerly for the District of Arizona, provided assistance. 

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Man Sentenced to Nine Years in Federal Prison for Detonating an Explosive Device Outside the Alabama Attorney General’s Office

Source: US FBI

Kyle Benjamin Douglas Calvert, 27, of Irondale, Alabama, was sentenced today to nine years in prison for the malicious use of an explosive device outside of the Alabama Attorney General’s Office in Montgomery.

“Kyle Calvert attacked the Alabama Attorney General’s Office with a shrapnel-filled explosive and then fled the scene, but this sentence ensures he will not escape accountability for his crime,” said Attorney General Merrick B. Garland. “Acts of violence like this one against our public institutions endanger public servants and entire communities, and they must not be tolerated. I am grateful to the FBI, ATF, and our state and local law enforcement partners for ensuring accountability for this attack, and for the work they do every day to protect our communities.”

“Today’s sentencing is the final step holding Kyle Calvert accountable for detonating a shrapnel-filled explosive device outside a public office in downtown Montgomery,” said FBI Director Christopher Wray. “This case demonstrates the FBI’s continued commitment to working with our partners to bring to justice anyone who attempts violence to injure or intimidate members of our community.”

“Today’s sentencing shows that any attack on America’s justice system, and on the civil servants and public officials who serve our communities and country, will not be tolerated,” said Director Steven Dettelbach of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The sentence handed down today reflects not only the severity of the crime, but also ATF’s commitment to working with our federal, state, and local partners to hold those who attack American institutions accountable.”

“This prosecution would not have been possible if not for the coordinated efforts of numerous federal, state, and local law enforcement agencies,” said Acting U.S. Attorney Kevin Davidson for the Middle District of Alabama. “Working together, investigators and analysts were able to identify Calvert as a suspect and ensure he was held accountable for his attempt to intimidate public officials and create chaos.”

According to the plea agreement and other court documents, during the early morning hours of Feb. 24, 2024, Calvert placed an explosive device outside of the Alabama Attorney General’s Office in downtown Montgomery. During his plea hearing, Calvert admitted to manufacturing the device and to using nails and screws as shrapnel. After positioning the explosive device near the Attorney General’s Office, Calvert lit its fuse and left the area. No injuries were reported. Before planting and detonating the device, Calvert placed stickers with graphics advocating for various political ideologies on various downtown buildings. Some stickers included the phrase “Support your local antifa.” As reflected in the plea agreement, Calvert claims he has no affiliation with antifa. Law enforcement arrested Calvert on April 10, 2024.

The FBI investigated the case with assistance from the ATF.

Assistant U.S. Attorneys Russell T. Duraski and Brett J. Talley for the Middle District of Alabama prosecuted the case.

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California Man Sentenced for Acting as an Illegal Agent of the People’s Republic of China Government and Bribery

Source: US FBI

John Chen Furthered the PRC Government’s Transnational Repression Campaign Against the Falun Gong by Paying Cash Bribes to a Purported IRS Official

John Chen, 71, of the People’s Republic of China (PRC) and Los Angeles, was sentenced today to 20 months in prison for acting as unregistered agents of the PRC and bribing an IRS agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC.

According to court documents, from at least approximately January 2023 to May 2023, Chen and co-defendant Lin Feng, 44, a PRC citizen and resident of Los Angeles, California, worked inside the United States at the direction of the PRC government, including an identified PRC government official PRC Official-1, to further the PRC government’s campaign to repress and harass Falun Gong practitioners. The PRC government has designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule. In China, Falun Gong adherents face a range of repressive and punitive measures from the PRC government, including imprisonment.

As part of the PRC’s campaign against the Falun Gong, Chen and Feng engaged in a PRC government-directed scheme to manipulate the IRS’ Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners, the Shen Yun Performing Arts Center. After Chen filed a defective whistleblower complaint with the IRS (the Chen Whistleblower Complaint), Chen and Feng paid $5,000 in cash bribes and promised to pay substantially more to a purported IRS agent (Agent-1) who was, in fact, an undercover officer, in exchange for Agent-1’s assistance in advancing the complaint. Neither Chen nor Feng notified the Attorney General that they were acting as agents of the PRC in the United States.

In the course of the scheme, Chen, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC, was to carry out the PRC government’s aim of “toppl[ing] . . . the Falun Gong.” During a call intercepted pursuant to a judicially authorized wiretap, Chen and Feng discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if Chen and Feng’s meetings to bribe Agent-1 did not go as planned. Chen and Feng also discussed that PRC Official-1 was the PRC government official “in charge” of the bribery scheme targeting the Falun Gong.

As part of this scheme, Chen and Feng met with Agent-1 in Newburgh, New York, on May 14, 2023. During the meeting, Chen gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment. Chen further offered to pay Agent-1 a total of $50,000 for opening an audit on the Shen Yun Performing Arts Center, as well as 60% of any whistleblower award from the IRS if the Chen Whistleblower Complaint were successful. On May 18, 2023, Feng paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York, and Executive Assistant Director Robert R. Wells of the FBI’s National Security Branch made the announcement.

In addition to the prison term, Chen was sentenced to three years of supervised release and ordered to forfeit $50,000. Feng was sentenced on Sept. 26, to a time-served sentence of 16 months in prison.

The FBI and Office of the Treasury Inspector General for Tax Administration investigated the case.

Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard, and Kathryn Wheelock for the Southern District of New York and Trial Attorney Christina Clark of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

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Phobos Ransomware Administrator Extradited from South Korea to Face Cybercrime Charges

Source: US FBI

Russian National Alleged to Have Coordinated Sale, Distribution, and Operation of Phobos Ransomware as Part of International Hacking and Extortion Conspiracy

The Justice Department unsealed criminal charges today against Evgenii Ptitsyn, 42, a Russian national, for allegedly administering the sale, distribution, and operation of Phobos ransomware. Ptitsyn made his initial appearance in the U.S. District Court for the District of Maryland on Nov. 4 after being extradited from South Korea. Phobos ransomware, through its affiliates, victimized more than 1,000 public and private entities in the United States and around the world, and extorted ransom payments worth more than $16 million dollars.

“The Justice Department is committed to leveraging the full range of our international partnerships to combat the threats posed by ransomware like Phobos,” said Deputy Attorney General Lisa Monaco. “Evgenii Ptitsyn allegedly extorted millions of dollars of ransom payments from thousands of victims and now faces justice in the United States thanks to the hard work and ingenuity of law enforcement agencies around the world — from the Republic of Korea to Japan to Europe and finally to Baltimore, Maryland. Together with our partners across the globe, we will continue to hold cybercriminals accountable and protect innocent victims.”

“The indictment alleges that Ptitsyn and his co-conspirators ran the Phobos ransomware group, whose members committed ransomware attacks against more than 1,000 public and private victims throughout the United States and the rest of the world,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Ptitsyn and his co-conspirators hacked not only large corporations but also schools, hospitals, nonprofits, and a federally recognized tribe, and they extorted more than $16 million in ransom payments. Ptitsyn’s indictment, arrest, and extradition reflect the Criminal Division’s commitment to leading the fight against the international scourge of ransomware. We are especially grateful to our domestic and foreign law enforcement partners, like South Korea, whose collaboration is essential to disrupting and deterring the most significant cybercriminal threats facing the United States.”

“It’s only a matter of time, cybercriminals will be caught and brought to justice,” said U.S. Attorney Erek L. Barron for the District of Maryland. “According to the indictment, Ptitsyn facilitated the worldwide use of a dangerous ransomware strain to target corporations and various organizations, including government agencies, healthcare facilities, educational institutions, and critical infrastructure. The U.S. Attorney’s Office for the District of Maryland is committed to bringing cybercriminals to justice and working with the private sector and the academic community to prevent and disrupt their activities.”

“The FBI is working tirelessly to ensure that ransomware actors, both developers and affiliates, face the consequences of their actions,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “We know it takes strong partnerships to disrupt cybercriminal networks, and the FBI must thank our partners for the important roles they play in carrying out this mission. The extradition announced today would not have been possible without their assistance.”

As alleged in the indictment, beginning in at least November 2020, Ptitsyn and others conspired to engage in an international computer hacking and extortion scheme that victimized public and private entities through the deployment of Phobos ransomware.

As part of the scheme, Ptitsyn and his co-conspirators allegedly developed and offered access to Phobos ransomware to other criminals or “affiliates” for the purposes of encrypting victims’ data and extorting ransom payments from victims. The administrators operated a darknet website to coordinate the sale and distribution of Phobos ransomware to co-conspirators and used online monikers to advertise their services on criminal forums and messaging platforms. At relevant times, Ptitsyn allegedly used the monikers “derxan” and “zimmermanx.”

Affiliates would then allegedly hack into the victims’ computer networks, often using stolen or otherwise unauthorized credentials; copy and steal files and programs on the victims’ networks; and encrypt the original versions of the stolen data on the networks by installing and executing Phobos ransomware. Affiliates then extorted the victims for ransom payments in exchange for the decryption keys to regain access to encrypted data by leaving ransom notes on compromised victims’ computers and by calling and emailing victims to initiate the ransom payment negotiations. Affiliates also threatened to expose victims’ stolen files to the public or to the victims’ clients, customers, or constituents if the ransoms were not paid.

After a successful Phobos ransomware attack, criminal affiliates paid fees to Phobos administrators like Ptitsyn for a decryption key to regain access to the encrypted files. Each deployment of Phobos ransomware was assigned a unique alphanumeric string in order to match it to the corresponding decryption key, and each affiliate was directed to pay the decryption key fee to a cryptocurrency wallet unique to that affiliate. From December 2021 to April 2024, the decryption key fees were then transferred from the unique affiliate cryptocurrency wallet to a wallet controlled by Ptitsyn.

Ptitsyn is charged in a 13-count indictment with wire fraud conspiracy, wire fraud, conspiracy to commit computer fraud and abuse, four counts of causing intentional damage to protected computers, and four counts of extortion in relation to hacking. If convicted, Ptitsyn faces a maximum penalty of 20 years in prison for each wire fraud count; 10 years in prison for each computer hacking count; and five years in prison for conspiracy to commit computer fraud and abuse. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Baltimore Field Office is investigating the case. The Justice Department’s Office of International Affairs worked with the International Criminal Affairs Division of the Korean Ministry of Justice to secure the arrest and extradition of Ptitsyn. The Justice Department extends its thanks to international judicial and law enforcement partners in South Korea, the United Kingdom, Japan, Spain, Belgium, Poland, Czech Republic, France, and Romania, as well as Europol and the U.S. Department of Defense Cyber Crime Center, for their cooperation and coordination with the Phobos ransomware investigation. The Justice Department’s National Security Division also provided valuable assistance.

Senior Counsel Aarash A. Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Thomas M. Sullivan for the District of Maryland are prosecuting the case. CCIPS Trial Attorney Riane Harper and former Assistant U.S. Attorney Jeffrey J. Izant for the District of Maryland provided substantial assistance.

Additional details on protecting networks against Phobos ransomware are available at StopRansomware.gov, including Cybersecurity and Infrastructure Security Agency Advisory AA24-060A.

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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FBI Statement Regarding Offensive Text Messages

Source: US FBI

The FBI is aware of the offensive and racist text messages sent to African American and Black communities around the country and is in contact with the Justice Department and other federal authorities on the matter. The reports are not identical and vary in their specific language, but many say the recipient has been selected to pick cotton on a plantation.

The text message recipients have now expanded to high school students, as well as both the Hispanic and LGBTQIA+ communities. Some recipients reported being told they were selected for deportation or to report to a re-education camp. The messages have also been reported as being received via email communication.

Although we have not received reports of violent acts stemming from these offensive messages, we are evaluating all reported incidents and engaging with the Department of Justice Civil Rights Division. We are also sharing information with our law enforcement partners and community, academia, and faith leaders.

Recipients of messages consistent with those described are encouraged to report the details to the FBI by phone at 1-800-CALL-FBI (1-800-225-5324) or online at tips.fbi.gov.

As always, we encourage members of the public to remain vigilant and report threats of violence or anything they consider suspicious to law enforcement immediately, call their local FBI office, or submit a report to tips.fbi.gov.

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U.S. Government Employee Charged with Two Counts of Unlawfully Transmitting National Defense Information

Source: US FBI

A U.S. government employee working overseas was charged with unlawfully transmitting two highly sensitive classified documents last month.

According to court documents, Asif William Rahman, 34, held a Top Secret/Sensitive Compartmented Information (SCI) security clearance as part of his role working for the U.S. government. According to an indictment filed in the Eastern District of Virginia on Nov. 7, Rahman, on or about Oct. 17, retained without authorization two documents classified at the Top Secret/SCI level, which contained information relating to national defense, and transmitted those documents to a person not entitled to receive them.

Rahman made his initial appearance in federal court in Guam on Nov. 14. The court ordered Rahman’s continued detention and removal from the District of Guam for further court hearings in the Eastern District of Virginia.

The FBI is investigating the case with valuable assistance from the U.S. Department of State’s Diplomatic Security Service.

The U.S. Attorney’s Office for the Eastern District of Virginia and National Security Division’s Counterintelligence and Export Control Section are 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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FBI Seeking Individual Who May Have Information Regarding the Identity of a Child Sexual Abuse Victim

Source: US FBI

Photographs and an informational poster depicting the unknown individual, known only as John Doe 49, are being disseminated to the public and can be found online at fbi.gov/wanted/ecap.

Initial video of the unidentified male, John Doe 49, was first recorded by the National Center for Missing and Exploited Children and is believed to have been produced on or before July of 2024. There is no EXIF data em-bedded within the video file.

John Doe 49 is described as a white male between 45 and 65 years old, bald, with a dark goatee. He has at least five visual tattoos:

  • the word “Dabby” on the right side of his chest
  • “197” followed by possible additional unknown text on his left bicep
  • additional tattoos on his left and right forearms and right bicep.

Anyone with information to provide should submit a tip online at tips.fbi.gov or call the FBI’s toll-free tip line at 1-800-CALL-FBI (1-800-225-5324). The public is reminded no charges have been filed in this case and the pictured individual is presumed innocent unless and until proven guilty in a court of law.

This individual is being sought as part of the FBI’s Operation Rescue Me and Endangered Child Alert Program (ECAP) initiatives. Operation Rescue Me focuses on utilizing clues obtained through in-depth image analysis to identify the child victims depicted in child exploitation material, while ECAP seeks national and international media exposure of unknown adults (referred to as John/Jane Does) who visibly display their faces and/or other distinguishing characteristics in association with child sexual abuse material.

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Owners of Local Real Estate Investment Company Indicted in Federal Court for Fraud

Source: US FBI

PORTLAND, Ore.—An indictment was unsealed in federal court today charging the owners of a local real estate investment company with defrauding individual investors and commercial lenders out of more than $18 million.

Robert D. Christensen, 54, of Sherwood, Oregon, and Anthony M. Matic, 55, of Damascus, Oregon, have been charged in a 21-count indictment with conspiracy to commit wire fraud, wire fraud, and money laundering.

According to the indictment, from approximately January 2019 through June 2023, Christensen and Matic are alleged to have devised and carried out a scheme wherein they convinced individual investors to fund the purchase and renovation of undervalued residential real estate properties. After renovating the properties, Christensen and Matic claimed they would rent the properties to generate income and then refinance them to extract their increased value from the renovations. The pair further misled investors into believing they would be repaid their full principal investment along with interest as high as eight to fifteen percent and a large lump sum payout, all within periods as short as 30 to 90 days.

Christensen and Matic’s scheme failed to generate the promised returns almost immediately and they began using new investments to repay earlier investors to keep their business afloat. When they were unable to raise enough money from new investors, Christensen and Matic are alleged to have devised a separate scheme to defraud commercial lenders. By December 2020, the pair began submitting loan applications with false financial information to different commercial lenders and, based on their misrepresentations, received millions of dollars in loans.

In total, Christensen and Matic’s two schemes defrauded individual investors out of more than $11 million and commercial lenders out of more than $7 million.

Christensen and Matic made their initial appearances in federal court today before a U.S. Magistrate Judge. Both were arraigned, pleaded not guilty, and released on conditions pending a 7-day jury trial scheduled to begin on October 29, 2024.

Conspiracy to commit wire fraud and wire fraud are punishable by up to 20 years in federal prison and three years’ supervised release. Money laundering in punishable by up to 10 years in federal prison and three years’ supervised release. All three charges may also result in fines of up to $250,000 or twice the gross gains or losses resulting from the offense.

This case was investigated by the FBI and IRS Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Robert Trisotto.

An indictment is only an accusation of a crime, and defendants are presumed innocent unless and until proven guilty.

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Grants Pass Man Accused of Causing Train Derailment

Source: US FBI

MEDFORD, Ore.—A Grants Pass, Oregon man is facing federal charges for manipulating railroad track equipment and causing a derailment.

Craig David Saddler, 50, has been charged by criminal complaint with wrecking, derailing, or disabling railroad equipment and vehicles. 

According to court documents, on August 12, 2024, officers responded to reports of Saddler trespassing at the Union Pacific Railroad (UPR) yard in Klamath Falls, Oregon. He was reported to be on the railroad near a lever that redirects the train to different tracks. While a train occupied by UPR employees was in motion, Saddler pulled the lever causing the tracks to switch and the train to derail. The derailment caused an estimated one million dollars in damage to the railway, four railcars, and surrounding property.

Saddler fled the railyard, but officers quickly located him less than a mile away. Saddler stated he witnessed the train derail but denied involvement. He was arrested after a witness identified him as the man who pulled the lever causing the derailment. 

Saddler made his first appearance in federal court today before a U.S. Magistrate Judge and was ordered detained pending further court proceedings.

The case was investigated by the FBI with assistance from other agencies. It is being prosecuted by Assistant U.S. Attorney Judi Harper.

A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.