Category: Security

Source: US FBI

COLUMBUS, Ohio – A California man was sentenced in U.S. District Court here today to 51 months in prison for embezzling more than $10.2 million from his employer and violating orders of the Court in a related civil lawsuit against him.

Brinson Caleb Silver, 43, of Culver City, California, used his position as a high-level executive to create a scheme involving shell companies, inflated contracts and a stolen identity.

Silver pleaded guilty in November 2023 to one count each of wire fraud and contempt of court. As part of his sentence, Silver is ordered to pay more than $10.2 million in restitution.

According to court documents, Silver was the Chief Marketing Officer of Root, Inc., an online car insurance company based in Columbus. From November 2021 through November 2022, Silver entered into contracts with four vendors for marketing services. Silver directed the vendors to send a portion of their contract proceeds to bank accounts in the names of businesses that Silver owned and controlled. Those diverted payments totaled more than $10.2 million.

Silver used the millions he embezzled to buy a $1.4 million dollar yacht, a Mercedes-Benz G550 for nearly $165,000, an amphibious plane, luxury watches and other items.

As a result of his fraud scheme, in February 2023, Root sued Silver. As the civil case progressed, Silver violated multiple court orders. For example, he flouted an order entered by the Court in his civil suit that limited him to financial transactions no greater than $5,000. In addition, Silver failed to appear in court for a hearing related to his civil suit and instead spent lavishly while traveling the globe.

His expenditures in February and March 2023 violated the Court’s orders and include $20,000 on plastic surgery, nearly $25,000 at Indonesian businesses (including $8,000 at a luxury resort in Bali) and in withdrawals made in Indonesia, and more than $88,000 through PayPal to individuals. Silver also withheld from the Court information about a $1.8 million house he owned in California. Before the civil or criminal cases were filed, Silver also made two phone calls to an “international relocation” company and asked for citizenship within a country that would not extradite him to the United States, and a foreign bank account that the United States could not freeze.

Silver was charged criminally and arrested in June 2023. A grand jury indicted him in October 2023, and, in November 2023, a superseding information was filed to which he pleaded guilty.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Cheryl Mimura, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.

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Source: US FBI

Director Christopher Wray has named Elena Iatarola as the special agent in charge of the Cincinnati Field Office. Ms. Iatarola most recently served as a section chief in the Security Division.

Ms. Iatarola joined the FBI as a special agent in 1997 and reported to the El Paso Field Office in Texas, where she investigated volent and transnational organized crimes. In 2008, she was promoted to serve as supervisory special agent in the Merrillville Resident Agency of the Indianapolis Field Office and led two Safe Street Task Forces in Northern Indiana.

Ms. Iatarola transferred to the Las Vegas Field Office, and from 2012 she served as a field supervisor overseeing criminal and international terrorism investigations. In 2017, she reported to the Inspection Division at FBI Headquarters in Washington, D.C., as a team leader. In 2018, she returned to Las Vegas as the program coordinator for the Crimes Against Children and Human Trafficking programs.

Ms. Iatarola was promoted to assistant special agent in charge of the Intelligence and Administrative branches of the Denver Field Office in 2019. In her role there, she was responsible for oversight of the resident agencies in Wyoming, the intelligence and security programs,  SWAT and Evidence Response Team, and all administrative programs. Ms. Iatarola was also the on-scene commander after a mass shooting at a Boulder grocery store in 2021 which left 10 people dead, including an on-duty police officer.

In 2022, Ms. Iatarola was promoted to section chief of the Suitability and Security Clearance Section in the Security Division, overseeing all aspects of background investigations and clearances. The Security Division is one of several FBI Headquarters divisions located on the FBI’s campus on Redstone Arsenal near Huntsville, Alabama.

Prior to joining the FBI, Ms. Iatarola served as a police officer with the Henderson Police Department in Nevada. She earned a Bachelor of Arts degree in criminal justice from Indiana University, a master’s degree in public safety administration from the Calumet College of St. Joseph University in Indiana, and a master’s degree in criminal justice from the University of Nevada, Las Vegas.

Source: US FBI

Officials ask anyone with information about potential additional victims to call FBI tip line

Source: US FBI

A federal grand jury in Las Vegas returned an indictment yesterday charging a health care staffing executive with conspiring to fix the wages of Las Vegas nurses, in violation of the Sherman Act.

According to the one-count felony indictment, Eduardo Lopez, of Las Vegas, held executive positions at three different home health agencies. For each company, Lopez oversaw recruitment, hiring, retention and assignments of nurses and other health care staff. Lopez and other unnamed co-conspirators are charged with agreeing to suppress and eliminate competition for the services of nurses between March 2016 and May 2019. Specifically, Lopez and his co-conspirators are charged with participating in a series of meetings and communications to fix wages of nurses.

“Wage fixing is a crime that deprives workers of hard-earned wages,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division will be vigilant in protecting workers.”

“We will continue to partner with the Antitrust Division and the FBI to protect the marketplace and the rights of workers to earn fair wages,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We will investigate and prosecute those who engage in anticompetitive activities.”

“The wage fixing alleged in this case harmed hardworking Americans and cheated them of fair opportunity and compensation,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI is committed to rooting out anti-competitive activity and corruption.”

A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.

Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s San Francisco Office and the International Corruption Unit of the FBI, with assistance from the U.S. Attorney’s Office for the District of Nevada.

The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.

An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

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Source: US FBI

COLUMBUS, Ohio – A Southwest Ohio man was sentenced in U.S. District Court here today to 24 months in prison for orchestrating an investment fraud scheme in Pike County and for failing to remit money withheld from employee paychecks to employee retirement funds.

Robert W. Walton, Jr., 55, of Loveland, Ohio, was also ordered to pay more than $8.6 million in restitution.

According to court documents, Walton committed two distinct financial crimes that resulted in a total loss of $8,657,603. He defrauded investors in a company he co-founded and stole retirement funds of its employees.

Walton engaged in a scheme to defraud investors of Hadsell Chemical Processing, LLC (HCP) and related entities. Walton was the president of HCP and fraudulently sought investments in the form of promissory notes from dozens of victim investors.

Walton claimed the notes were personally guaranteed by a prominent local business owner when in fact they were not. Walton repeatedly forged the business owner’s signature from 2012 through 2015 without the business owner’s authority on several loan documents and promissory notes.

Walton falsely represented his company’s future revenues from another business to be in the millions by creating fake invoices. The actual total legitimate business revenue HCP had with that other business was approximately $50,000. He provided the fake invoices to investors. Walton also provided investors with falsified profit and loss statements, including one that changed HCP’s net income from a loss of approximately $800,000 to a profit of nearly $395,000.

Walton also engaged in Ponzi-type activity by paying earlier investors with money received from new investors.

During part of his employment at HCP, Walton was responsible for approving the remittance of employee retirement funds to an employee benefit plan sponsored by HCP. Walton failed to remit approximately $53,000 withheld from employees’ paychecks, failing to transfer the funds into employee retirement funds.

Walton pleaded guilty in March 2023 to wire fraud and embezzling from employee benefit plans.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Cheryl Mimura, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Division; and L. Joe Rivers, Regional Director, United States Department of Labor Employee Benefits Security Administration, Cincinnati Regional Office, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.

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Source: US FBI

COLUMBUS, Ohio – A federal grand jury has charged two Central Ohio women with crimes related to fraudulently receiving more than $2.8 million total in covid-relief funds from the Paycheck Protection Program (PPP).

Lorie A. Schaefer, 62, of Westerville, allegedly received nearly $1.9 million in covid-relief funds by fraudulently claiming an affiliation with an Ohio pizza company.

According to the indictment, Schaefer opened new bank accounts in December 2020 prior to registering a fictitious business name with the State of Ohio in March 2021.

It is alleged that Schaefer fraudulently claimed affiliation with the Flying Pizza restaurants in Dayton, Centerville and Fairborn. When notified that a PPP loan for nearly $1.9 million had been filed in the name of Flying Pizza, individuals at the family-owned business said their restaurants could not justify such a large loan.

Schaefer claimed to have 98 employees and allegedly submitted altered bank records as part of her application. Schaefer also claimed the business was established in March 2021, even though the original Flying Pizza was established in 1984. Additionally, she claimed not to be under indictment despite having pending theft charges in Meigs County. Schaefer allegedly attached multiple fraudulent documents to her PPP application, including a bank statement, tax records, and a letter from the IRS.

Bank records indicate Schaefer improperly used PPP funds for personal expenses, for example, nearly $26,000 on liposuction, a $10,000 check for a “newborn baby gift,” and more than $900,000 to purchase and renovate a condominium in Westerville. Schaefer also allegedly made purchases at Wayfair, Lamps Plus, Kroger, KFC, Burger King, Arby’s, McDonald’s and Olive Garden. Evidence also suggests Schaefer used the fraud proceeds to purchase vehicles in Ohio and property in Australia for her personal use.

Schaefer allegedly assisted co-defendant Latisha C. Holloway, 42, of Reynoldsburg, in fraudulently receiving more than $980,000 in PPP loans.

Holloway allegedly claimed to own a business called Jaguar Logistics, LLC. Holloway stated on loan application documents that she had 76 employees and had a total gross income of $4.9 million. Her loan application was submitted within a month of Schaefer receiving PPP loans and records indicate Holloway wired Schaefer $180,000 after receiving her own loan money. According to court records, Holloway similarly attached fraudulent documents to her PPP loan, including a bank statement and tax records.

Both defendants allegedly collected unemployment benefits after receiving federal covid-relief funds.

Finally, it is alleged that Schaefer used another individual’s Social Security Number to apply for and receive an additional $20,800 in PPP funds for “LS Associates,” a corporation established by Schaefer.

The indictment charges each woman with two counts of wire fraud and one count of money laundering. Wire fraud is punishable by up to 20 years in prison and money laundering carries a potential penalty of up to 10 years in prison.

Schaefer and Holloway were arrested in August 2023 and originally charged at that time by criminal complaint.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the case, which was investigated by the U.S. Department of Transportation Office of Inspector General and the Federal Bureau of Investigation (FBI), Cincinnati Division. Assistant United States Attorney David J. Twombly is representing the United States in this case.

An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

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Source: US FBI

LAS VEGAS – A Las Vegas resident was sentenced yesterday by U.S. District Judge Jennifer A. Dorsey to 33 years in prison followed by lifetime supervised release for committing multiple child sexual exploitation crimes.

Stephen Thomas Parshall, aka “Kiwi,” (38) pleaded guilty in October 2022, to two counts of sexual exploitation of children, one count of coercion and enticement, and one count of receipt and distribution of child pornography. Under the Sex Offender Registration and Notification Act, Parshall is required to register as a sex offender.

According to court documents, law enforcement learned of Parshall’s alleged participation in a conspiracy to cause destruction during protests on May 30, 2020, and of Parshall’s alleged membership in the “Boogaloo” movement. Parshall was arrested and search warrants were executed on Parshall’s electronic devices. Law enforcement officers located 10 images of child sexual abuse material, and numerous images of child erotica, on Parshall’s cellular phone. Investigators identified Victim 1, a child under the age of 18 years old, in two of the child sexual abuse images located on Parshall’s phone. Parshall forced Victim 1 to perform sex acts upon him while he photographed it.

Investigators also located social media conversations on a second cell phone owned by Parshall, under account names “cptkiwi1”, “nopictoobad”, and “pervysage”. In some of those social media conversations, Parshall messaged with Victim 2, another child under 18 years old, and convinced Victim 2 to take sexually explicit pictures. Victim 2 sent the requested child sexual abuse material to Parshall.

Additionally, in separate social media conversations, Parshall traded child pornography material with other users.

“As part of our Project Safe Childhood initiative, together with law enforcement partners, we will use all available resources to identify, apprehend, and prosecute predators who exploit children,” said United States Attorney Jason M. Frierson for the District of Nevada. “Thanks to the hard work by the prosecution team and law enforcement, the defendant is no longer a threat to children and the community.”

“The FBI is committed to stopping and holding accountable anyone who engages in the sexual exploitation of children,” said Special Agent in Charge Spencer L. Evans for the FBI. “Every time child pornography is viewed on the internet it re-victimizes a child. Together with our partners, we are dedicated to investigating and bringing federal charges against those who commit these heinous crimes.”

The FBI and Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorney Bianca Pucci and former Special Assistant United States Attorney Nicholas Portz prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, 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 www.justice.gov/psc.

Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-843-5678, or https://report.cybertip.org.

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Source: US FBI

RENO – A Winnemucca Indian Colony tribe member was sentenced yesterday by U.S. District Judge Larry R. Hicks to 78 months in prison followed by three years of supervised release for shooting at a law enforcement officer and pointing his firearm at a second officer.

Martin Williams (39) pleaded guilty in November 2022 to two counts of assault with a dangerous weapon within Indian Country.

According to court documents and admissions made in court by Williams, on April 2, 2020, he fired a shot at a law enforcement officer while on the Winnemucca Indian Colony reservation and pointed his firearm at a second officer.

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

The FBI, Humboldt County Sheriff’s Office, Winnemucca Police Department, and the Elko Police Department investigated the case. Assistant United States Attorneys Penelope Brady and Andrew Keenan prosecuted the case.

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Source: US FBI

RENO – An enrolled member of the Ely Shoshone Tribe was sentenced today by U.S. District Judge Larry R. Hicks to 15 years in prison followed by three years of supervised release, the maximum sentence, for voluntary manslaughter of a three-year-old girl.

Colon Jackson (31) pleaded guilty in December 2022 to one count of voluntary manslaughter within Indian Country.

According to court documents and facts presented in court, on January 9, 2019, on the Ely Shoshone Indian Reservation, the victim’s mother picked her up from day care and took her home so Jackson could care for her while her mother was at work. While the three-year-old girl was in Jackson’s care, he shook and threw the victim’s body. Jackson called the victim’s mother to tell her that the girl was unconscious. The mother came home from work and took the child to the emergency room in Ely. The girl was then flown from Ely to Salt Lake City. She died from the injuries caused by Jackson.

“The defendant’s senseless act resulted in the death of a child,” said United States Attorney Jason M. Frierson for the District of Nevada. “Today’s sentence sends a clear message that the U.S. Attorney’s Office and our law enforcement partners are working steadfast to seek justice for victims. In collaboration with state, local, Tribal, and federal law enforcement partners, we are committed to investigating reports of missing and murdered Indigenous people, also prioritizing the disproportionately high rates of violence against women and girls.”

“I am extremely proud of the collaborative effort put forth to hold the defendant accountable for his actions,” said Special Agent in Charge Spencer L. Evans for the FBI. “The FBI stands strongly with tribal and law enforcement partners in our joint commitment to bring justice for victims. Violent crimes, such as this horrendous act, will never go unchallenged.”

The case was investigated by the FBI, BIA, the White Pine County Sheriff’s Office, and the Ely Shoshone Tribal Police. Assistant United States Attorneys Penelope Brady, Megan Rachow, and Richard Casper prosecuted the case.

If you have information concerning a missing or murdered person in Indian Country, please contact your local FBI office or submit a tip online at tips.fbi.gov (tips can remain anonymous).

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Source: US FBI

         WASHINGTON— A North Carolina man was sentenced to prison today after he previously pleaded guilty to assaulting law enforcement during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

         Curtis Davis, 45, of Snow Hill, North Carolina, was sentenced to 24 months in prison, 36 months of supervised release, the first six months of which to be served on home detention, and ordered to pay $2,000 in restitution by U.S. District Judge Amit P. Mehta. Davis previously pleaded guilty to one count of assaulting, resisting, or impeding certain officers on June 10, 2024.

         According to court documents, at about 3:00 p.m., on Jan.6, 2021, Davis entered the U.S. Capitol building via the East Rotunda doors and made his way into the Rotunda, where law enforcement officers were attempting to disperse a crowd of rioters. Inside the Rotunda, while pressed against a line of police officers, Davis forcibly attacked a Metropolitan Police Department (MPD) officer and attempted to grab ahold of the officer’s baton.

         At about 3:09 p.m., court documents say that Davis punched an MPD officer in the face shield and refused law enforcement orders to leave the building. A short while later, Davis punched another MPD officer in the head and forcibly pulled away a riot shield from another. Davis then used the shield to press against the backs of a line of rioters in an attempt to resist the efforts of police.

         Davis was then expelled from the Rotunda but later returned to the East Rotunda doors. Here, Davis, along with other rioters, attempted to push their way through a line of police officers into the Rotunda.  Davis then made his way to the front of the line of rioters and punched a riot shield held by an officer three times.

         Court documents say that later that night, Davis filmed a group of police officers with his cell phone camera before turning it around, filming his fist, and stating, “Them knuckles right there, from one of those m—f— faces at the Capitol.”

         The FBI arrested Davis on Dec. 8, 2023, in Snow Hill.

         The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section are prosecuting this case. The U.S. Attorney’s Office for the Eastern District of North Carolina provided valuable assistance.

         The FBI’s Charlotte and Washington Field Offices investigated this case. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

         In the 45 months since Jan. 6, 2021, more than 1,532 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 571 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

         Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.