Operation Grayskull Culminates in Lengthy Sentences for Managers of Dark Web Site Dedicated to Sexual Abuse of Children

Source: United States Department of Justice Criminal Division

Operation Grayskull Eradicated Four Dark Web Child Abuse Sites and Led to the Convictions of 18 Offenders to Date, Who Have Collectively Received More than 300 Years in Prison

Today, the Justice Department announced the results of Operation Grayskull, a highly successful joint effort between the Department of Justice and the FBI that resulted in the dismantling of four dark web sites dedicated to images and videos containing child sexual abuse material (CSAM). To date, the operation has led to the convictions of 18 offenders, including a Minnesota man who was sentenced yesterday to 250 months in prison and lifetime supervised release for his involvement with one of these dark web sites. He was also ordered to pay $23,000 in restitution.

“Today’s announcement sends a clear warning to those who exploit and abuse children: you will not find safe haven, even on the dark web,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “These offenders thought that they could act without consequences, but they were wrong.  Thanks to the relentless determination of our prosecutors and law enforcement partners we have exposed these perpetrators for who they are, eliminated their websites and brought justice to countless victims.”

“This operation represents one of the most significant strikes ever made against online child exploitation networks,” said FBI Director Kash Patel. “We’ve not only dismantled dangerous platforms on the dark web, but we’ve also brought key perpetrators to justice and delivered a powerful message: you cannot hide behind anonymity to harm children.”

“Yesterday’s sentencing reaffirms our steadfast commitment to protecting our children, the most vulnerable among us, from those who exploit and harm them through the despicable trade in child sexual abuse material,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Thomas Peter Katsampes and his co-conspirators ran some of the darkweb’s most heinous networks, enabling horrific crimes against innocent victims, but Operation Grayskull has shut these sites down and delivered justice. We applaud the FBI and our international partners for their tireless work, and let this be a clear warning: we will relentlessly pursue and prosecute anyone engaged in such atrocities, no matter how they attempt to cover their tracks.”

Thomas Peter Katsampes, 52, of Eagan, Minnesota, pleaded guilty to conspiracy to advertise and conspiracy to distribute child pornography on Feb. 27. According to court documents, Katsampes joined a dark web site dedicated to CSAM in 2022, advertised and distributed CSAM over the website, including CSAM depicting prepubescent children, and eventually worked his way up to a staff position on the web site, which, among other things, involved moderating the site, enforcing the site’s rules for posting CSAM, and advising the site’s users about how to post CSAM.

In addition to Katsampes, eight individuals have been convicted and sentenced in the Southern District of Florida for their involvement in running the primary site targeted by Operation Grayskull.

Defendant Residence Case Status
Selwyn David Rosenstein Boynton Beach, Florida

Pleaded guilty to conspiracy to advertise child pornography, five counts of advertisement of child pornography, and possession of child pornography.

Sentenced on Dec. 12, 2022, to 28 years in prison and ordered to pay $80,500 in restitution to victims of his offense.

Matthew Branden Garrell Raleigh, North Carolina

Pleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.

Sentenced on Aug. 1, 2023, to 20 years and 10 months in prison and ordered to pay $158,500 in restitution to victims of his offense.

Robert Preston Boyles Clarksville, Tennessee

Pleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.

Sentenced on Aug. 15, 2023, to 23 years and four months in prison and ordered to pay $7,500 in restitution to victims of his offense.

Gregory Malcolm Good Silver Springs, Nevada

Pleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.

Sentenced on Aug. 22, 2023, to 25 years and 10 months in prison and ordered to pay $93,500 in restitution to victims of his offense.

William Michael Spearman Madison, Alabama

Pleaded guilty to engaging in a child exploitation enterprise.

Sentenced on Jan. 23, 2024, to life in prison and ordered to pay $123,400 in restitution to victims of his offense.

Joseph Addison Martin Tahuya, Washington

Pleaded guilty to engaging in a child exploitation enterprise.

Sentenced on April 18, 2024, to 42 years in prison and ordered to pay $174,500 in restitution to victims of his offense.

Joseph Robert Stewart Milton, Washington

Pleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.

Sentenced on April 18, 2024, to 23 years and 9 months in prison and ordered to pay $19,500 in restitution to victims of his offense.

Keith David McIntosh Grand Rapids, Michigan

Pleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography, both as a person with a prior conviction for possession of child pornography.

Sentenced on Dec. 19, 2024, to 55 years in prison.

The website’s leaders advertised and distributed CSAM, promulgated rules for the website, enforced the rules by banning or scolding users who violated them, held staff meetings, recruited members to serve as staff members, recommended users for promotion, edited and deleted user posts, praised individuals for participating in and contributing to the website, kept records of CSAM posts made by individual members, and paid for and maintained the website servers, among other things.

Operation Grayskull resulted in the dismantling of a total of four sites dedicated to images and videos depicting child sexual abuse. These websites were some of the most egregious on the dark web, and they included sections specifically dedicated to infants and toddlers, as well as depictions of violence, sadism, and torture. The websites also contained detailed advice on how to avoid detection by law enforcement – for example, by using sophisticated technologies.

In other judicial districts around the country, nine additional individuals have been convicted for their involvement with these websites, including the following:

  • Charles Hand, of Aberdeen, Maryland, was prosecuted in the District of Maryland and was sentenced to 14 years in federal prison;
  • Michael Ibarra, of Wenatchee, Washington, was prosecuted in the Eastern District of Washington and was sentenced to 12 years in prison;
  • Clay Trimble, of Fordyce, Arkansas, was prosecuted in the Eastern District of Arkansas and was sentenced to 18 years in prison;
  • David Craig, of Houston, Texas, was prosecuted in the Southern District of Texas and was sentenced to nine years in prison;
  • Robert Rella of Chesapeake, Virginia, was prosecuted in the Eastern District of Virginia and was sentenced to five years and eight months in prison;
  • Samuel Hicks, of Fort Wayne, Indiana, was prosecuted in the Northern District of Indiana and was sentenced to 16 years in prison;
  • Richard Smith of Dallas, Texas, was prosecuted in the Eastern District of Texas and was sentenced to 14 years in prison;
  • Patrick Harrison, of Grand Rapids, Michigan, was prosecuted in the Western District of Michigan and was sentenced to five years and ten months in prison.
  • Thomas Gailus, of Webbers Falls, Oklahoma, was prosecuted in the Eastern District of Oklahoma, and his sentencing is pending.

Two other individuals in the United States died before being charged for their involvement with the websites. The operation also resulted in arrests in the United Kingdom, the Netherlands, Italy, Germany, Estonia, Belgium, and South Africa.

The FBI’s Child Exploitation Operational Unit and Miami Field Office, West Palm Beach Resident Agency investigated the cases.

Acting Deputy Chief Kyle P. Reynolds and Trial Attorney William G. Clayman of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and former Assistant U.S. Attorney Gregory Schiller of the Southern District of Florida coordinated the operation and prosecuted the defendants in the Southern District of Florida.

Substantial assistance for the cases prosected in the Southern District of Florida was provided by FBI Field Offices and Resident Agencies in Huntsville, Alabama; Reno, Nevada; Clarksville, Tennessee; Raleigh, North Carolina; Madison, Wisconsin; Tacoma, Washington; Grand Rapids, Michigan; and Minneapolis, Minnesota; CEOS’s High Technology Investigative Unit; and the U.S. Attorney’s Offices for the Northern District of Alabama, District of Nevada, Middle District of Tennessee, Eastern District of North Carolina, Western District of Wisconsin, Western District of Washington, Western District of Michigan, and District of Minnesota.

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. Attorneys’ Offices and 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 www.justice.gov/psc.

Importers Agree to Pay $6.8M to Resolve False Claims Act Liability Relating to Voluntary Self-Disclosure of Unpaid Customs Duties

Source: United States Department of Justice Criminal Division

Manchester, New Hampshire, based Global Plastics LLC (Global Plastics) and Melville, New York, based Marco Polo International LLC (Marco Polo), both subsidiaries of MGI International LLC, have agreed to pay $6.8 million to resolve their civil liability under the False Claims Act for knowingly failing to pay customs duties on certain plastic resin imported from the People’s Republic of China (PRC). In connection with the settlement, the United States acknowledged that MGI International and its subsidiaries took a number of significant steps entitling them to credit for cooperating with the government.

To enter goods into the United States, an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are subject to duties, and the amount of duties owed. U.S. Customs and Border Protection (CBP) collects applicable duties.

In 2024, MGI and its subsidiaries disclosed to CBP and the U.S. Attorney’s Office for the District of New Hampshire that, beginning in May 2019, Global Plastics and Marco Polo failed to declare the correct country of origin and value on certain entries of plastic resin products manufactured in the PRC and, as a result, failed to pay the proper duties owed to CBP.   

“The Department will pursue those who gain an unfair trade advantage in U.S. markets, including those who knowingly evade or underpay duties owed on foreign imports,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “As today’s settlement reflects, when importers fail to pay customs duties owed, they can mitigate the consequences by making timely self-disclosures, cooperating with investigations, and taking appropriate remedial measures.”

“Companies doing business in the United States must play by the rules, including paying full custom duties owed for imports,” said Acting U.S. Attorney Jay McCormack for the District of New Hampshire. “This resolution demonstrates that when companies self-disclose misconduct, cooperate fully with the government’s investigation, and take meaningful corrective action, they can receive credit for those admissions. We will continue to hold accountable those who attempt to avoid paying what they owe to the federal government, while also recognizing responsible corporate behavior.”

“When companies use unfair trade practices and fraudulent methodologies to avoid paying customs duties, it robs the American people of revenue and undermines our economy,” said acting Executive Assistant Commissioner Susan S. Thomas of the Office of Trade, U.S. Customs and Border Protection. “I am proud that CBP was able to work with the Department of Justice to help ensure a level playing field for law abiding businesses.”

MGI cooperated with the United States’ investigation by, among other things: making a timely voluntary self-disclosure of the potential violations; performing a thorough and independent internal investigation;  preserving, collecting, and disclosing facts not known to the government but relevant to its investigation; conducting an analysis of potential damages that was shared with the government; and implementing appropriate remedial actions, including disciplining personnel and making improvements to compliance procedures. As a result, MGI, Global Plastics, and Marco Polo received credit under the Department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act settlements.

This resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Hampshire, with assistance from the CBP’s Office of Chief Counsel.

This matter was handled by Assistant United States Attorney Raphael Katz of the District of New Hampshire and Senior Trial Counsel Art J. Coulter of the Civil Division’s Commercial Litigation Branch, Fraud Section.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Five Defendants Sentenced in Connection with Operating One of the Largest Illegal Television Show Streaming Services in the United States

Source: United States Department of Justice Criminal Division

Yesterday, the final judgments were issued for five Nevada men, including a citizen of Germany, who were sentenced on May 29 and 30 to terms of up to 84 months in prison for running Jetflicks, one of the largest illegal television streaming services in the United States.

“The defendants operated Jetflicks, an illegal paid streaming service that made available more television episodes than any licensed streaming service on the market,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “This scheme generated millions of dollars in criminal profits, and hurt thousands of U.S. companies and individuals who owned the copyrights to these shows but never received a penny in compensation from Jetflicks. The sentences issued in this case demonstrate the Criminal Division’s commitment to protect American creativity and to ensure that large-scale infringers are brought to justice and punished for their crimes.”

“Digital crimes are not victimless crimes,” said U.S. Attorney Sigal Chattah for the District of Nevada. “The copyright owners lost millions of dollars as a result of the illegal paid streaming service. These sentences underscore our joint commitment with the Computer Crime and Intellectual Property Section and FBI to deter and disrupt intellectual property crime via thorough investigation and prosecution of those who violate federal intellectual property laws.”

“By building and running one of the largest unauthorized streaming services in the U.S., these individuals not only stole from content creators and legitimate streaming services, they undermined the integrity of our economy and the rule of law,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “These sentencings are a reminder that illegal actions have consequences. The FBI and our partners are unwavering in our commitment to protect intellectual property rights and hold criminals accountable.”

After a 14-day trial that ended in June 2024, a federal jury in the District of Nevada convicted Kristopher Lee Dallmann, 42; Peter H. Huber, 67; Jared Edward Jaurequi, also known as Jared Edwards, 44; Felipe Garcia, 43; and Douglas M. Courson, 65, all of Las Vegas, of conspiracy to commit copyright infringement. The jury also convicted Dallmann of criminal copyright infringement by distribution, criminal copyright infringement by public performance, and money laundering. Subsequently, the court sentenced Dallmann to 84 months in prison; Huber to 18 months in prison; Jaurequi to time served (almost 5 months in prison), 180 days of home confinement, and 500 hours of community service; Garcia to three years probation with 49 days in prison and 1000 hours of community service; and Courson to three years probation with 48 days in prison.

According to court documents and evidence presented at trial, the defendants ran a site called Jetflicks, an online subscription-based service headquartered in Las Vegas, that permitted users to stream and at times download copyrighted television programs without the permission of the relevant copyright owners. At one point, Jetflicks claimed to have 183,285 different television episodes, significantly more than Netflix, Hulu, Vudu, Amazon Prime, or any other licensed streaming service. This was the largest internet piracy case — as measured by the estimated total infringement amount and total number of infringements — ever to go to trial as well as the first illegal streaming case ever to go to trial. The defendants’ conduct harmed every major copyright owner of a television program in the United States. Copyright owners lost millions of dollars from the operation.

Evidence presented at trial showed that the defendants used automated software and computer scripts that ran constantly to scour sites around the world hosting pirated content. The software and scripts would download, process, and store illegal content, and then make it immediately available on servers in the United States and Canada to tens of thousands of paid subscribers located throughout the United States for streaming and/or downloading. The defendants often delivered episodes to subscribers the day after the shows originally aired on television. The service was not only available to subscribers over the internet but specifically designed to work on many different types of devices, platforms, and software.

Each defendant performed at least one and often multiple roles at Jetflicks including management, computer programming and coding, design of the website, applications, and customer interface, technical assistance, content acquisition, subscriptions and revenue, and customer support.

Dallmann reaped millions of dollars in profit from the operation. The government conservatively estimated the value of the copyright infringement in the case at $37.5 million. This included the approximate retail value of the defendants’ reproduction of infringing works to create the Jetflicks inventory as well as the approximate retail value of the streams of pirated television episodes that the defendants provided to subscribers.

The five defendants sentenced were among eight defendants originally indicted in the Eastern District of Virginia in connection with operating Jetflicks. In addition to the defendants just sentenced in Nevada, defendant Darryl Polo previously pleaded guilty in the Eastern District of Virginia to four counts of criminal copyright infringement and one count of money laundering for his involvement with Jetflicks as well as an equally large illegal streaming site he ran called iStreamItAll. Similarly, defendant Luis Villarino also previously pleaded guilty in the Eastern District of Virginia to conspiracy to commit criminal copyright infringement. In May 2021, a judge in the U.S. District Court for the District of Virginia sentenced Polo and Villarino to, respectively, 57 months in prison and 12 months and a day in prison.

After the case was transferred to the District of Nevada for trial, defendant Yoany Vaillant was tried separately from the other five remaining defendants. In November 2024, after an eight-day trial, a federal jury convicted Vaillant of conspiracy to commit criminal copyright infringement. Vaillant is scheduled to be sentenced on Sept. 4.

The FBI Washington Field Office investigated the case, with assistance from the FBI Las Vegas Field Office. 

Senior Counsel Matthew A. Lamberti, Trial Attorney Michael Christin, and Acting Deputy Chief Christopher S. Merriam of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Jessica Oliva and Edward G. Veronda for the District of Nevada are prosecuting the case. The CCIPS Cybercrime Lab, the Justice Department’s Office of International Affairs, and the Royal Canadian Mounted Police in Canada provided significant assistance.

Indianapolis CPA Sentenced for Participation in Illegal Tax Shelter

Source: United States Department of Justice Criminal Division

Defendant Helped Clients in Mississippi and Elsewhere File Returns Claiming False Business Deductions

An Indiana CPA was sentenced yesterday to three years in prison for assisting in the preparation of false tax returns on behalf of clients who participated in an illegal tax shelter.

The following is according to court documents and statements made in court: between 2013 and 2022, Jason L. Crace prepared income tax returns for clients that claimed millions of dollars in false deductions for so-called “royalty payments.”  However, as Crace knew, these “royalty payments” were merely circular flows of money designed to give the appearance of genuine business expenses. Typically, a client would send money to bank accounts controlled by scheme promoters who then sent the money — minus a fee — back to a different bank account controlled by the client. In this way, tax shelter participants retained control of the money they transferred, while falsely deducting the transfers as business expenses on their tax returns. One of the scheme’s promoters, Stephen T. Mellinger III, previously pleaded guilty and was sentenced to eight years in prison for his role promoting the scheme.

In total, Crace’s preparation of false tax returns claiming fraudulent “royalty” deductions caused a loss to the IRS of more than $2.5 million.

In addition to his prison sentence, the court sentenced Crace to serve one year of supervised release and to pay restitution of $2,532,936.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Patrick Lemon for the Southern District of Mississippi made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Richard J. Hagerman, William M. Montague, and Matthew C. Hicks of the Justice Department’s Tax Division and Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi are prosecuting the case.

Defense News in Brief: CMSAF Flosi highlights Airmen’s agility, readiness during East Africa tour

Source: United States Airforce

CMSAF Flosi met with Airmen during a recent multi-base visit, where he observed how small, agile teams are delivering results in one of the most strategically significant and operationally complex regions in the world.

From low-resource expeditionary hubs to forward operating locations facing real threats, Airmen are staying mission-focused, supporting one another and delivering results in demanding conditions.The visit began at Camp Lemonnier, where Flosi received mission briefings from 449th Air Expeditionary Group leadership and visited squadron work centers. Operating in a constrained environment, Airmen there continue to deliver essential capabilities with flexibility and focus. They are leveraging available technologies to counter a growing small unmanned aerial system threat in the region, an evolving operational concern requiring agile solutions at the tactical edge.

Chief Master Sgt. of the Air Force David Flosi answers questions
Chief Master Sgt. of the Air Force David Flosi answers questions from Airmen assigned to the 475th Expeditionary Air Base Squadron during a Q&A session at Manda Bay, Kenya, July 12, 2025. The visit gave Flosi the opportunity to engage directly with Airmen across East Africa, address their concerns and recognize their contributions to regional security. (U.S. Air Force photo by Tech. Sgt. Timothy Hayden)

“The AFRICOM AOR is a challenging environment,” Flosi said. “You continue to operate in a low-resource setting, executing the mission with focus and flexibility to counter threats in the region.”

The senior leader then traveled to Camp Simba, Manda Bay, Kenya, where the deployed team is embodying the “Mission Ready” mindset. Airmen are stepping outside their core Air Force Specialty Codes to fill mission gaps, support each other and sustain forward operations, often in joint and host-nation integrated environments.

Chief Master Sgt. Ben Weavers, senior enlisted leader of the 475th Expeditionary Air Base Squadron, said the visit highlighted the growing strategic relevance of Manda Bay.

“It was great to highlight the strong partnership we share at Manda Bay with our host nation Kenyans, sister services and tenant units,” Weavers said. “They were impressed with what our Airmen are doing in support of our nation.”

Weavers said the visit helped reframe the narrative of Manda Bay from a site that was formerly attacked by enemy combatants to a vital node of partner engagement and operational readiness.

“We’ve moved beyond the legacy of the 2020 attack to a stronger security posture that allows us to focus on partnership building,” he explained. “We’ve conducted weekly knowledge exchanges with our Kenyan partners across disciplines like medical, maintenance, air transportation, civil engineering, and more.”

Chief Master Sgt. of the Air Force David Flosi assists munitions Airmen
Chief Master Sgt. of the Air Force David Flosi assists munitions Airmen assigned to the 776th Expeditionary Air Base Squadron with assembling a precision-guided munition at Chabelley Airfield, July 13, 2025. Flosi visited deployed Airmen across East Africa to engage with them directly, gain insight into their mission capabilities, and recognize their contributions to regional security. (U.S. Air Force photo by Tech. Sgt. Timothy Hayden)
Chief Master Sgt. of the Air Force David Flosi poses for a photo
Chief Master Sgt. of the Air Force David Flosi, third from right, poses for a photo with 475th Expeditionary Air Base Squadron Airmen following the conclusion of his Q&A panel as part of a visit to Manda Bay, Kenya, July 12, 2025. The visit allowed the senior leader to engage directly with Airmen across East Africa, addressing their concerns and recognizing their contributions to regional security. (U.S. Air National Guard photo by Staff Sgt. Kevin Ray J. Salvador)
CMSAF and Sgt launch done
Chief Master Sgt. of the Air Force David Flosi assists U.S. Air Force Staff Sgt. Logan Terrell, a Small Unmanned Aircraft System program manager assigned to the 475th Expeditionary Air Base Squadron, with launching a Puma drone during a visit to Manda Bay, Kenya, July 12, 2025. The visit allowed Flosi to connect with Airmen across East Africa, hear their concerns, and recognize their contributions to regional security. (U.S. Air Force photo by Tech. Sgt. Timothy Hayden)

Lt. Col. Michael S. Ryan, commander of the 475th EABS, described the visit as a success, noting the valuable engagement between deployed personnel and senior leadership.

“CMSAF was able to interact with our deployed Airmen. The question-and-answer session allowed for two-way communication between Department of the Air Force leadership and our Airmen accomplishing the mission,” Ryan said. “We provided CMSAF the importance of Manda Bay and the mission here,” he added.

“We showcased our Airmen and the uniqueness of this deployment. Everything we do here is by, through and with the Kenyans.”

He also noted the positive response from his team.

“Multiple Airmen thanked local leadership for the opportunity to interact with CMSAF,” Ryan said. “This allowed them the opportunity to speak what is on their minds to our highest level of leadership.”

On the final day of the tour, Flosi visited Chabelley Airfield, where Airmen support critical intelligence, surveillance and reconnaissance operations. Here, he helped build a laser-guided bomb and observed how Airmen and Soldiers are detecting and deterring UAS threats with advanced counter-sUAS systems.

These missions play out just miles from the People’s Liberation Army Support Base in Djibouti, a visible reminder of the region’s strategic weight and the importance of maintaining a consistent, capable U.S. presence.

A consistent theme across locations was the deployment of small Unit Type Codes rather than fully aligned teams. Leaders noted that aligning future rotations with the Air Force’s Unit of Action concept, sending cohesive, trained teams that arrive and operate together from day one, may help improve readiness and continuity in the region.

“The missions you support are vital to regional security,” Flosi said. “You’re holding the line, and your work underscores the strategic significance of this region and the importance of a consistent and capable U.S. presence.”