Category: Security

Source: US FBI

EUGENE, Ore.— The former owner and former chief financial officer of Zadeh Kicks LLC, a now-defunct Oregon corporation that sold limited edition and collectible sneakers online, pleaded guilty today for perpetrating a fraud scheme that cost customers more than $65 million in unfulfilled orders and defrauded financial institutions out of more than $15 million.

Michael Malekzadeh, 42, a Eugene resident, has pleaded guilty to wire fraud and conspiring to commit bank fraud. Bethany Mockerman, 42, also of Eugene, has pleaded guilty to conspiring to commit bank fraud.

According to court documents, Malekzadeh started his business in 2013 by purchasing limited edition and collectible sneakers to resell online. Beginning as early as January 2020, Zadeh Kicks began offering preorders of sneakers before their public release dates, allowing Malekzadeh to collect money upfront before fulfilling orders. Malekzadeh advertised, sold, and collected payments from customers for preorders knowing he could not satisfy all orders placed. By April 2022, Malekzadeh owed customers more than $65 million in undelivered sneakers.

In her role as chief financial officer at Zadeh Kicks, Mockerman conspired with Malekzadeh to provide false and altered financial information to numerous financial institutions—including providing altered bank statements—on more than 15 bank loan applications. Together, Mockerman and Malekzadeh received more than $15 million in loans from these applications.

During the investigation, agents seized millions of dollars in cash and luxury goods that Malekzadeh acquired with the proceeds of his fraud, including luxury watches, jewelry and hundreds of handbags. Additionally, almost $7.5 million was seized from the sale of Malekzadeh’s residence in Eugene, his watches, and luxury cars manufactured by Bentley, Ferrari, Lamborghini and Porsche.

On July 29, 2022, Malekzadeh was charged by criminal information with wire fraud, conspiracy to commit bank fraud, and money laundering, and Mockerman was charged with conspiracy to commit bank fraud.

Malekzadeh faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release for wire fraud, and a maximum sentence of 30 years in prison, a $1,000,000 fine and five years of supervised release for conspiracy to commit bank fraud. Mockerman faces a maximum sentence of 30 years in prison, a $1,000,000 fine and five years of supervised release. Malekzadeh will be sentenced on August 12, 2025, and Mockerman will be sentenced on August 26, 2025, before a U.S. District Judge.

As part of their plea agreements, Malekzadeh and Mockerman have agreed to pay restitution in full to their victims and if needed forfeit any criminally-derived proceeds and property used to facilitate their crimes identified by the government prior to sentencing.

This case was investigated by the FBI, IRS Criminal Investigation, and Homeland Security Investigations with assistance from the Oregon Intellectual Property Task Force. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon. Forfeiture proceedings are being handled by Assistant U.S. Attorney Katie C. de Villiers, also of the District of Oregon.

Source: US FBI

EUGENE, Ore.—A Coos Bay, Oregon man was arraigned in federal court today for possessing, distributing, attempting to produce, and producing child pornography.

Thomas Owen Barnett, 39, has been charged with attempting to use and using a minor to produce a visual depiction of sexually explicit conduct and possessing and distributing child pornography.

According to court documents, between September and December 2023, Barnett is alleged to have knowingly and intentionally used a minor to engage in and record sexually explicit conduct. In September 2024, Barnett is further alleged to have used Kik and Instagram, online social media platforms, to engage in chats involving child sex abuse, seek opportunities to engage in child sexual abuse, and advertise the sale of child pornography. At times, Barnett posed as a young man or a minor female to persuade his victims to produce and exchange child pornography, including requests for sexually explicit materials depicting an infant.

Barnett made his initial appearance in federal court today before a U.S. Magistrate Judge. He was arraigned, pleaded not guilty, and ordered detained pending a jury trial scheduled to begin on May 27, 2025.

Attempting to use a minor and using a minor to produce a visual depiction of sexually explicit conduct are each punishable by up to 30 years in federal prison with a 15-year mandatory minimum sentence, distribution of child pornography is punishable by up to 20 years in prison with a 5-year mandatory minimum sentence, and possession of child pornography is punishable by up to 10 years in federal prison. If convicted, Barnett also faces up to a lifetime term of supervised release and a fine of $250,000 for each count.

This case was investigated by the FBI and is being prosecuted by William M. McLaren, Assistant U.S. Attorney for the District of Oregon.

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

Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.

Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Source: US FBI

OKLAHOMA CITY – JESSE WAYNE JAMES KEENAN, 18, of Duncan, has pleaded guilty to voluntary manslaughter and discharging a firearm during and in relation to a crime of violence, announced U.S. Attorney Robert J. Troester.

According to public record, on July 19, 2024, officers with the Duncan Police Department (“DPD”) responded to a Duncan apartment complex on a reported shooting. At the apartment, DPD located a male victim who had been shot and attempted to provide medical care, but the victim died on scene. Witnesses at the complex identified Keenan as the person who shot the weapon.  He was located and arrested a short time later. After speaking with Keenan, FBI agents learned Keenan went to the apartment complex after an argument between Keenan and his girlfriend. After Keenan arrived, a fist fight ensued between Keenan and the victim. During the altercation, Keenan shot the victim with a pistol and fled from the scene. The pistol was later recovered by the FBI.

On April 7, 2025, Keenan was charged by Superseding Information with voluntary manslaughter and discharging a firearm during and in relation to a crime of violence.

On May 1, 2025, Keenan pleaded guilty to the Superseding Information, and admitted that during a quarrel, he intentionally and unlawfully shot the victim, while intending to cause serious bodily injury, which resulted in the victim’s death. At sentencing, he faces no less than 10 years and up to life in federal prison, and a fine of up to $500,000.

This case is in federal court because Keenan is a member of the Choctaw Nation, and the crime occurred within the boundaries of the Chickasaw Nation.

This case is the result of an investigation by the FBI Oklahoma City Field Office and the Duncan Police Department. Assistant U.S. Attorneys Tiffany Edgmon and Bow Bottomly are prosecuting the case.

Reference is made to public filings for additional information.

Source: US FBI

TULSA, Okla. – A Claremore man was sentenced today for involuntary manslaughter and assault that resulted in serious bodily injury, announced U.S. Attorney Clint Johnson.

U.S. District Judge John D. Russell sentenced Jerry Dean Luton, III, 35, for Involuntary Manslaughter in Indian Country and Assault Resulting in Serious Bodily Injury in Indian Country. Judge Russell ordered Luton to serve 84 months’ imprisonment, followed by three years of supervised release.

Court records show that in August 2023, Timothy Austin was driving with his wife when Luton crossed the center line, hitting the Austins’ vehicle head-on, killing Timothy and injuring his wife of more than 51 years. The investigation revealed that Luton was driving without a license and impaired by alcohol, methamphetamine, and marijuana in his system.

Luton is a citizen of the Cherokee Nation and was permitted to remain on bond and voluntarily surrender to the U.S. Bureau of Prisons.

The FBI and the Oklahoma Highway Patrol investigated the case. Assistant U.S. Attorney Matthew P. Cyran prosecuted the case.

Source: US FBI

TULSA, Okla. – A Sapulpa woman was sentenced today for Second Degree Murder in Indian Country, announced U.S. Attorney Clint Johnson.

U.S. District Judge John D. Russell sentenced Christin Brianna Kelley, 35, to 240 months imprisonment, followed by five years of supervised release.

Shortly after 4:00 a.m. on the morning of January 9th, 2024, Kelley and the victim, Isaac Smith, were sitting in a car in the parking lot of a gas station in Sand Springs. Kelley shot Isaac Smith several times, killing him. Law enforcement recovered the loaded pistol Kelley used in a trash can near the car.

Kelley is a citizen of the Muscogee (Creek) Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.

The FBI, the Sand Springs Police Department, and the Oklahoma State Bureau of Investigations investigated the case, and Assistant U.S. Attorneys Eric O. Johnston and Stephen Flynn prosecuted the case.

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

Source: US FBI

TULSA, Okla. – A father was sentenced after being convicted by a jury of first-degree murder and assault, announced U.S. Attorney Clint Johnson.

U.S. District Judge Gregory K. Frizzell sentenced James William Buzzard, 52, to life imprisonment, plus 10 years, after a jury convicted Buzzard of First Degree Murder in Indian Country, Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian County, and Carrying, Using, or Discharging a Firearm During and in Relation to a Crime of Violence.

Before the trial began, James Buzzard’s co-defendants and sons pleaded guilty to their involvement in the murder of Jerry Tapp.

Cody Dwayne Buzzard, 31, pled guilty to Second Degree Murder in Indian Country, and Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Judge Frizzell ordered Cody Buzzard to serve 300 months’ imprisonment, followed by five years of supervised release.

Dakota Chase Buzzard, 23, pled guilty to Conspiracy to Carry, Use, Brandish, and Discharge a Firearm During and in Relation to a Crime of Violence. Judge Frizzell ordered Dakota Buzzard to serve 78 months’ imprisonment, followed by three years of supervised release.

In August 2019, the Delaware County Sheriff’s Office responded to a 911 call about a shooting. Upon arrival, deputies discovered Jerry Tapp deceased in his front yard with multiple gunshot wounds. Deputies found a second victim alive, who was shot in the arm. 

Witness interviews led law enforcement to Dakota Buzzard, who was driving a white, 4-door Altima, matching the description of the vehicle seen leaving. Law enforcement found spent casings in the yard, driveway, and roadway. They also found additional casings in the vehicle and the rifle used in the shooting.

Court documents showed that the defendants waited for Jerry Tapp to return home from work. Once Jerry Tapp exited the vehicle, James Buzzard shot at Jerry, and handed the gun to Cody Buzzard, who continued shooting.

The FBI, the Oklahoma State Bureau of Investigation, and the Delaware County Sheriff’s Office investigated the case, and Assistant U.S. Attorneys Reagan Reininger and Eric O. Johnston prosecuted the case.

Source: US FBI

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven DeWayne Beard, age 51, of Stilwell, Oklahoma, was sentenced to life imprisonment for First Degree Murder in Indian Country and to a consecutive sentence of 120 months for Discharging a Firearm During a Crime of Violence.

On September 14, 2024, a federal jury convicted Beard on both counts.   According to investigators, on March 29, 2023, Beard, who was a romantic rival for a woman’s affections, became angry and ordered the woman to remove her property from his residence while he was away.  Knowing that the victim was the woman’s only ride and would accompany her to remove her items, Beard hid his vehicle from view, then waited inside his residence for the pair to arrive.  When the woman arrived with Beard’s intended target, Beard shot the victim in the chest with a shotgun.  The victim fell to the ground and Beard shot the victim in the chest again at pointblank range.  The crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.

The charges arose from investigations by the Cherokee County Sheriff’s Office, the Cherokee Nation Marshal Service, and the Federal Bureau of Investigation.

The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing.  Beard 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. Attorneys Kevin Gross and T. Cameron McEwen represented the United States.

Source: US FBI

CLEVELAND – A federal grand jury has charged Behrouz Parsarad, an Iranian national, for his role as the creator and operator of Nemesis Market, a dark web marketplace designed to enable users to buy and sell illegal drugs and other illicit goods. The market also sold criminal cyber-services such as obtaining stolen financial information, fraudulent identification documents, counterfeit currencies, and computer malware.

According to the indictment, Parsarad, 36, of Tehran, Iran, launched Nemesis Market in or around March 2021. Nemesis Market operated on the dark web, a network that uses The Onion Router (TOR) to encrypt traffic and hide users’ Internet Protocol (IP) address. At its peak, Nemesis Market had over 150,000 users and more than 1,100 vendor accounts registered worldwide. Between 2021 and 2024, Nemesis Market processed more than 400,000 orders, including more than 60,000 orders in 2022 and more than 250,000 orders in 2023. Of these, more than 55,000 orders were categorized as stimulants, which included sub-categories for methamphetamine, cocaine, cocaine base (crack), and other controlled substances. More than 17,000 orders were categorized as opioids, which included sub-categories for fentanyl, heroin, and oxycodone. All of the substances covertly purchased by the government and marketed on Nemesis as “isotonitazene,” “M30s” (purporting to be oxycodone), and “Percs” (purporting to be Percocet) were confirmed by laboratory reports to be mixtures and substances containing fentanyl, a Schedule II controlled substance and/or acetylfentanyl, heroin, and/or protonitazene, each a Schedule I controlled substance.

“The allegations in this indictment span over four hundred thousand transactions involving fentanyl, other dangerous drugs, and a wide range of contraband made accessible on the darknet for more than three years,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Through cooperation with German and Lithuanian partners, the alleged administrator of this marketplace has been charged, servers and other infrastructure have been seized, and dangerous drugs and other contraband have been stopped from entering the United States. This case demonstrates the Department’s tireless commitment to protecting U.S. communities from the harms caused by fentanyl and darknet marketplaces and pursuing accountability for those who would endanger our communities no matter where they are located.”

“Anyone who tries to profit from the sale of illegal drugs – whether it’s on the streets or online – will face consequences. Whether you sell or help others sell these dangerous drugs, you will be held accountable,” said Acting U.S. Attorney Carol M. Skutnik for the Northern District of Ohio. “I want to acknowledge the excellent investigative work of our federal agency partners here in Ohio who helped us to bring the charges in this case. Together, we remain committed to keeping our neighborhoods safe and our streets free from illegal narcotics.”

“This indictment, made possible by the assistance of our German and Lithuanian allies, underscores the importance of global partnerships and international collaboration,” said FBI Cleveland Acting Special Agent in Charge Charles Johnston. “Nemesis Market, through the darknet, was a borderless powerhouse of criminal activity that not only fueled the drug epidemic, but also a multitude of illegal acts with the capacity to harm our citizens and destroy our communities. The FBI stands firm in its commitment to identify and investigate unlawful individuals and dismantle their networks operating with criminal intent.”

Parsarad is charged with conspiracy to distribute controlled substances and distribution of controlled substances in the Northern District of Ohio and elsewhere. In addition, Parsarad is also charged with money laundering conspiracy for both using proceeds to promote illegal drug dealing and for offering money laundering services through Nemesis Market by mixing cryptocurrencies used to pay for goods and services to obscure their origins. Nemesis users were not allowed to conduct transactions in official, government-backed currencies.

On March 20, 2024, U.S. law enforcement, in cooperation with German and Lithuanian authorities, seized Nemesis Market and stemmed the flow of these drugs into the United States and elsewhere. In March 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against Parsarad for his role as the administrator of Nemesis Market. According to OFAC, Nemesis Market facilitated the sale of nearly $30 million worth of drugs between 2021 and 2024.

If convicted, Parsarad faces a mandatory minimum of 10 years in federal prison and a maximum penalty of life.

The FBI Cleveland Division is investigating the case with assistance from the DEA and IRS-Criminal Investigations Chicago. The Justice Department’s Office of International Affairs and Cybercrime Liaison Prosecutor to Eurojust provided significant assistance.

Assistant U.S. Attorney Segev Phillips for the Northern District of Ohio and Trial Attorney Gaelin Bernstein of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case, with substantial assistance from the U.S. Attorneys Offices for the Northern District of Illinois and District of Massachusetts.

This case was investigated as part of an FBI-led interagency Joint Criminal Opioid and Darknet Enforcement (J-CODE) operation. J-CODE brings together experts from the DEA, the Postal Inspection Service, Homeland Security Investigations, as well as the Department of Defense and the Customs and Border Protection, along with the FBI. The Justice Department appreciates the cooperation and significant assistance provided by law enforcement partners in the British Virgin Islands, Germany, Lithuania, and Türkiye.

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

Source: US FBI

Scheme billed Medicare more than $14M for unnecessary medical equipment and lab tests

Source: US FBI

CLEVELAND – Basheer Jones, 40, of Cleveland, Ohio, has been sentenced to 28 months in prison by U.S. District Judge J. Philip Calabrese, after pleading guilty to conspiring to commit wire fraud and honest services fraud by using his role as a public official for personal financial gain by seeking to defraud multiple community stakeholders out of more than $200,000. He was also ordered to serve three years of supervised release after imprisonment and pay $143,598.47 in restitution to local nonprofits.

According to court documents, from about December 2018 to June 2021, the former Cleveland city councilman for Ward 7 persuaded several local nonprofits to enter into arrangements that benefitted Jones and his romantic partner and co-conspirator. Jones sought and obtained funds from the nonprofits under the guise of working on projects to redevelop Ward 7. Throughout the scheme, he took steps to ensure that his personal connection to his romantic partner, through whom he benefited from these arrangements, was not discovered.

“Mr. Jones used his position to dishonestly line his pockets with tens of thousands of dollars,” said Acting U.S. Attorney Carol M. Skutnik for the Northern District of Ohio. “He betrayed the city of Cleveland and its citizens, who elected him to serve as a leader in our community. With his deceptive actions, he also violated federal laws. Anyone who thinks they can use a public office to defraud nonprofits and obtain bribes will face consequences and pay the price for those decisions, and my office will prosecute you to the fullest extent of the law.”

The defendant’s schemes worked by convincing nonprofits to make payments toward projects they believed were for Ward 7 revitalization projects, including to buy real estate from purported third parties. Instead, the money went into bank accounts that his romantic partner controlled. Jones then instructed her to divert those funds to herself, to himself, and to others he chose.

Jones also convinced a nonprofit to make payments to an entity controlled by his co-conspiring partner, all while knowing that the funds would flow back to himself. Jones recommended that the nonprofit should hire a consultant for community outreach. Unbeknownst to the nonprofit, the consultant was actually Jones’s romantic partner. She submitted invoices to the unsuspecting nonprofit and was subsequently paid through her consulting business.

Jones later defrauded the same nonprofit out of an additional $50,000, again through his partner’s consulting business. Jones claimed that he needed $50,000 to plan a community event, which included buying backpacks for schoolchildren, and falsely promised that the city would reimburse the organization. Instead, after the funds were paid, no event was held, and Jones again directed his romantic partner to divide the money amongst herself, Jones, and others Jones chose.

“Public corruption at any level of government will not be tolerated. Jones abused his position of trust for personal gain while scheming against the people he was elected to serve, including non-profit entities and well-meaning leaders,” said FBI Cleveland Acting Special Agent in Charge Charles Johnston. “Elected officials who demonstrate a reckless disregard for violating the oath they swore to uphold is detestable. Today’s sentence underscores the FBIs commitment to ensuring that those who engage in fraud and corruption will be investigated and held accountable. We will continue working with our law enforcement partners to root out corruption and ensure elected officials are serving with honesty, fairness, and integrity.”

Some of the projects Jones pushed included seeking community funding to rehabilitate certain distressed properties while concealing his financial interest in them. In one instance, Jones devised a bribery scheme under which he arranged for co-conspirators, including his romantic partner, to acquire a dilapidated property on Superior Road, and used his position as councilperson to pass ordinances allocating city funds to buy that property from them. Jones arranged for a co-conspirator to buy the property a minimal cost. After asking a nonprofit to purchase and rehabilitate the property, and promising city funding, Jones sponsored an emergency ordinance to fund the nonprofit’s purchase and renovation of the property. When Jones was unable to convince the nonprofit to proceed, he arranged to transfer the property to his romantic partner’s consulting business, with the understanding that she would share the proceeds of the sale with him. After sponsoring another ordinance to reauthorize city funding for the same project, Jones sought to finalize the nonprofit’s purchase of the property from his partner’s entity for $80,000. Ultimately that scheme failed when the nonprofit decided not to proceed with the purchase.

However, Jones and his romantic partner did succeed in obtaining funds for the sale of a different property to another nonprofit. He misled them to believe that he was assisting with the acquisition of the property from the original owner. Instead, he was simultaneously arranging for his partner to acquire the property from the original owner in the name of another business entity, and then immediately to resell it to the nonprofit. Jones and his romantic partner arranged to purchase the property for only $1, promising to pay a $40,500 city demolition bill. But without paying that bill or disclosing it, Jones’s romantic partner immediately re-sold the property to the nonprofit for $45,000.

“Basheer Jones abused his position of trust by deliberately engaging in fraudulent schemes to divert HUD money – funds meant to improve the community— for his own personal gain,” said Special Agent in Charge Shawn Rice with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). “HUD OIG will continue to work with the U.S. Attorney’s Office and law enforcement to investigate and hold accountable bad actors who exploit HUD-funded programs for their own benefit.”

“As an elected official, the crimes Basheer Jones committed are particularly flagrant. He not only stole from nonprofits that serve the local community, he stole from the people of Ward 7, the same citizens that had voted for him to advocate for their best interests on the Cleveland City Council,” said Special Agent in Charge Karen Wingerd, Cincinnati Field Office, IRS Criminal Investigation. “IRS-CI is committed to holding those accountable who betray the public trust and use municipalities as their personal piggy bank. Status as an elected official does not make you immune from federal prosecution.”

This case was investigated by the FBI Cleveland Division, the U.S. Department of Housing and Urban Development Office of the Inspector General, and the IRS – Criminal Investigation.

The case is being prosecuted by Assistant U.S. Attorneys Erica Barnhill and Elliot Morrison for the Northern District of Ohio.

To report fraud, visit justice.gov/action-center/report-crime-or-submit-complaint.