Duo Sentenced to 17 Years Each for Violent Armed Carjackings

Source: US FBI

INDIANAPOLIS— Bryant Hoskins, 20, and Samuel Fancher, Jr., 19, of Indianapolis, have each been sentenced to 17 years in federal prison followed by three years of supervised release after pleading guilty to two counts of carjacking, brandishing a firearm during and in relation to a crime of violence, and discharging a firearm during a crime of violence.

According to court documents, in late May of 2024, Fancher Jr. and Hoskins committed two violent carjackings in less than one week, targeting Uber drivers during the late-night hours.

On May 24, 2024, at 4:30 in the morning, the duo called an Uber to pick them up near East 21st street in Indianapolis. Once they reached their drop off location, they held the driver at gunpoint and ordered him to get out of the car. When the driver did not immediately comply, one of the defendants dragged the driver out of the car and punched him in the head. They took the driver’s wallet and then drove away in his Toyota Rav 4. After fleeing the scene, they took videos of themselves driving the stolen vehicle and bragging, “I told you we was gone get one… we got one.”

Just five days later on May 29, the duo called another Uber to pick them up near Franklin Road, this time targeting a luxury vehicle so they could sell the stolen vehicle for profit. Once they reached their drop off location, they held the female driver at gunpoint and ordered her to get out of her Mercedes GLA. She did not immediately comply, and during the ensuing struggle Hoskins fired his weapon. The victim suffered a gunshot wound to the shoulder and received treatment at a local hospital.

“Uber drivers frequently work alone during late hours, putting their safety at risk just to earn a living. The defendants exploited this vulnerability, leaving both victims deeply traumatized and showing no signs of remorse. Instead, they became emboldened—committing additional crimes and boasting about their actions,” said John E. Childress, Acting U.S. Attorney for the Southern District of Indiana. “Gig workers have the right to feel safe, especially as they provide vital transportation services. Our office remains committed to working with federal and local partners to ensure that violent offenders are held accountable for their reckless actions.”

“No one should fear becoming a victim of violence simply while driving their car in an effort to support themselves,” said FBI Indianapolis Special Agent in Charge Timothy O’Malley. “This sentence sends a clear message that the FBI and our law enforcement partners will pursue violent offenders relentlessly and work tirelessly to restore a sense of safety and justice to our neighborhoods.”

FBI and IMPD investigated this case. The sentence was imposed by U.S. District Judge Richard L. Young

Acting U.S. Attorney Childress thanked Assistant U.S. Attorneys Kelsey L. Massa and Jeremy C. Fugate, who prosecuted this 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.

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Sin City Deciples Member Sentenced to 180 Months in Prison

Source: US FBI

HAMMOND- Roger Lee Ervin Burton, age 55, of Merrillville, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to a racketeering conspiracy announced Acting United States Attorney Tina L. Nommay.

Burton was sentenced to 180 months in prison followed by 2 years of supervised release. 

According to the Second Superseding Indictment, the Sin City Deciples, originally formed in 1967 in Gary, Indiana, is an outlaw motorcycle organization in which its members and associates engaged in acts of violence, extortion, and narcotics distribution in the Northern District of Indiana and elsewhere.

Burton served as a National Board Member of the entire club and was described by informants as one of the top three leaders in the criminal organization.  

The agencies involved in this prosecution were: the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Federal Bureau of Investigation, the Gary Police Department, the Griffith Police Department, the Hammond Police Department, the Internal Revenue Service-Criminal Investigation Division, the Lake County Sheriff’s Department, Indiana High Intensity Drug Trafficking Area officers and agents, the Merrillville Police Department, the Munster Police Department, and the Schererville Police Department.   Also aiding were the Lake County Prosecutor’s Office, the U.S. Attorney’s Offices for the Eastern District of Arkansas, the Northern District of Illinois, the Southern District of Indiana, the Western District of Kentucky, and the Western District of Pennsylvania.

This case was prosecuted by Assistant United States Attorneys David J. Nozick, Michael J. Toth, and former Assistant United States Attorney Kimberly L. Schultz.  

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

This case was also 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.

Florida Man Found Guilty by Jury

Source: US FBI

SOUTH BEND – Late yesterday, Stephen Forte, 63 years old, of Lakeland, Florida, was found guilty of two felony counts after a one-day jury trial presided over by United States District Court Judge Damon R. Leichty, announced Acting United States Attorney Tina L. Nommay.

Specifically, Forte was found guilty of abusive sexual contact and interference with the duties of a flight crew member, both committed within the special aircraft jurisdiction of the United States for conduct occurring on a flight from St. Petersburg, Florida to South Bend, Indiana.

Sentencing is scheduled for September 5, 2025, at 10:00 am. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.

This case was investigated by the Federal Bureau of Investigation with assistance from the St. Joseph County Airport Authority Department of Public Safety.  The case was prosecuted by Assistant United States Attorneys Jerome W. McKeever and Hannah T Jones.

Justice Department Announces Results of Operation Restore Justice: 205 Child Sex Abuse Offenders Arrested in FBI-Led Nationwide Crackdown, Including Two in Eastern District of Wisconsin

Source: US FBI

The Department of Justice announced the results of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators. The operation resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders in the nationwide crackdown.  The coordinated effort was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.

“The Department of Justice will never stop fighting to protect victims — especially child victims — and we will not rest until we hunt down, arrest, and prosecute every child predator who preys on the most vulnerable among us,” said Attorney General Pamela Bondi. “I am grateful to the FBI and their state and local partners for their incredible work in Operation Restore Justice and have directed my prosecutors not to negotiate.”

“Every child deserves to grow up free from fear and exploitation, and the FBI will continue to be relentless in our pursuit of those who exploit the most vulnerable among us,” said FBI Director Kash Patel. “Operation Restore Justice proves that no predator is out of reach and no child will be forgotten. By leveraging the strength of all our field offices and our federal, state and local partners, we’re sending a clear message: there is no place to hide for those who prey on children.”

Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that two individuals were arrested and charged as part of Operation Restore Justice in the Eastern District of Wisconsin.

First, on April 25, 2025, Troy Schaden (age 44) was charged via criminal complaint with receipt, distribution, and possession of child pornography, in violation of 18 U.S.C. §§ 2252A(a)(2) and 2252A(a)(5)(B). He appeared in federal court on May 2, 2025. According to court records, when a search warrant was executed at Schaden’s home on March 5, 2025, law enforcement seized multiple electronic devices. The investigation revealed that the devices contain CSAM that Schaden had purchased from an individual in the United Kingdom via the Telegram application and then distributed to others.

Second, on April 28, 2025, Victor Vega Rojo (age 49) was charged via criminal complaint with distribution and possession of child pornography, in violation of 18 U.S.C. §§ 2252A(a)(2) and 2252A(a)(5)(B). He appeared in federal court on May 2, 2025. Court records indicate that Vega Rojo does not have legal status in the country, and he is now in the custody of the U.S. Immigration and Customs Enforcement (ICE). According to court records, when a search warrant was executed at Vega Rojo’s home, law enforcement seized multiple electronic devices, which through forensic review were determined to contain CSAM.  The investigation revealed that the defendant distributed CSAM via the BitTorrent network and possessed hundreds of images of CSAM.

“The United States Attorney’s Office remains committed to working with the FBI and all federal, state, local, and tribal partners to zealously prosecute individuals who produce or distribute child sexual abuse material, engage in online enticement, and further child sex trafficking,” stated Acting U.S. Attorney Frohling. “I commend the efforts of all involved in seeking to hold these offenders accountable and to pursue justice for victims of these devastating offenses.”

“The message is clear, the FBI has an unwavering commitment to protecting children against sexual abuse,” said FBI Milwaukee Special Agent in Charge Michael Hensle. “Through ‘Operation Restore Justice’ and day-to-day operations alongside our local, state and federal law enforcement partners we’re dedicated to keeping kids safe in our Wisconsin communities.”

If convicted of receipt or distribution of child pornography, each defendant would face a minimum mandatory sentence of 5 years’ imprisonment and up to a maximum sentence of 20 years. If convicted of possession of child pornography, each defendant would face up to 20 years’ imprisonment. At this stage, the public is cautioned that a criminal complaint is merely a charge, and the defendants are presumed innocent until and unless proven guilty.

Others arrested around the country are alleged to have committed various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. In Minneapolis, for example, a state trooper and Army Reservist was arrested for allegedly producing child sexual abuse material while wearing his uniforms.

In Norfolk, VA, an illegal alien from Mexico is accused of transporting a minor across state lines for sex. In Washington, D.C., a former Metropolitan Police Department Police Officer was arrested for allegedly trafficking minor victims.

In many cases, parental vigilance and community outreach efforts played a critical role in bringing these offenders to justice. For example, a California man was arrested about eight hours after a young victim bravely came forward and disclosed their abuse to FBI agents after an online safety presentation at a school near Albany, N.Y.

This effort follows the Department’s observance of National Child Abuse Prevention Month in April and underscores the Department’s unwavering commitment to protecting children and raising awareness about the dangers they face. While the Department, including the FBI, investigates and prosecutes these crimes every day, April serves as a powerful reminder of the importance of preventing these crimes, seeking justice for victims, and raising awareness through community education.

The Justice Department is committed to combating child sexual exploitation. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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, visit www.justice.gov/psc.

The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.

The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI’s tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.

Other online resources:

Electronic Press Kit

Violent Crimes Against Children

How we can help you: Parents and caregivers protecting your kids

# #  #

For Additional Information Contact:

Public Information Officer

Kenneth.Gales@usdoj.gov

414-297-1700

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Tennessee Man Convicted of Assaulting Law Enforcement and Other Charges for Actions During January 6 Capitol Breach

Source: US FBI

            WASHINGTON – A Tennessee man was convicted of assaulting law enforcement and other felony and misdemeanor charges related to his conduct 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.

            Edward Kelley, 35, of Maryville, Tennessee, was found guilty of three felonies, including civil disorder, one count of destruction of government property in an amount over $1,000, and assaulting, resisting, or impeding certain officers.

            In addition to the felonies, Kelley was convicted of eight misdemeanor offenses, including of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, entering and remaining in the Gallery of Congress, disorderly conduct in a Capitol building, act of physical violence in the Capitol grounds or buildings, destruction of government property under $1,000, and parading, demonstrating, or picketing in a Capitol building.

            Kelley was convicted of these charges following a bench trial before U.S. District Judge Colleen Kollar-Kotelly and will be sentenced on April 7, 2025.

            According to evidence presented during the trial, Kelley was identified in open-source images and video footage outside the West Front of the U.S. Capitol building on Jan. 6, 2021, in Washington, D.C. There, Kelley is seen moving to the scaffolding over a set of stairs and becomes involved in an altercation with a United States Capitol Police (USCP) officer where he and two other men throw the officer to the ground.

            Kelley then moves to the top of the stairs with a crowd of rioters before being stopped by law enforcement. However, Kelley is seen in open-source video footage pushing and pulling on a metal barricade with police on the other end. The crowd and Kelley eventually pushed past police and made their way closer to the Capitol building. Kelley arrived just outside the Senate Wing Door and is then seen in an open-source video using a piece of wood to smash and breach the window adjacent to the door. Kelley then entered the building through this window at approximately 2:13 p.m. Evidence showed that Kelley was the fourth person to enter the building through this breached window.

            After entering into the building, Kelley moved to the still-closed Senate Wing Door and kicked it open. As the crowd of rioters poured into the building, Kelley moved further into the building and can be seen in an open-source video confronting Capitol Police Officer Eugene Goodman. Kelley then made his way through several areas of the Capitol, including the Ohio Clock Corridor, the Crypt, the Senate Gallery, and the Rotunda. In another open-source video, Kelley is identified in the Senate Gallery.

            Kelley exited the Capitol through the Rotunda Door at 2:54 p.m. and was inside the building for approximately 40 minutes.

            Kelley was arrested on May 5, 2022, in Tennessee.

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of Tennessee.

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

            In the 46 months since Jan. 6, 2021, more than 1,561 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 590 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.

Chattanooga Man Sentenced for Firearm and Explosives Violations

Source: US FBI

CHATTANOOGA, Tenn. – On November 1, 2024, Anthony Christopher Lively, 41, of Chattanooga, was sentenced to 54 months in prison by the Honorable Travis R. McDonough, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga.  Following imprisonment, Lively will be on supervised release for three years.

As part of the plea agreement filed with the court, Lively agreed to plead guilty to possession of an unregistered firearm silencer and unregistered destructive devices, in violation of the National Firearms Act (“NFA”), 26 U.S.C. §§ 5841. 5861(d), and 5871.

According to filed court documents, in August of 2022, law enforcement executed a search warrant at Lively’s Chattanooga home.  Investigators located and seized a Grand Power Stribog, Model SP9A1, 9-millimter, short-barrel rifle (8-inch barrel length) equipped with a foldable stock and a fully loaded magazine; multiple firearm magazines; multiple lists detailing explosive components and parts; and assorted ammunition.  Further investigation revealed that prior to the execution of the warrant, Lively enlisted a family member to remove contraband from his home.  From that family member’s home, law enforcement located and seized a firearm silencer; improvised explosive devices, commonly referred to as “pipe bombs” and “Molotov cocktails”, an improvised incendiary device, commonly referred to as a “Molotov cocktail”, and various fuzes, initiators, and other explosives-related components.  Lively later admitted to purchasing and modifying the short-barrel rifle and firearm silencer and constructing the pipe bombs and Molotov cocktail.  He also admitted that he directed his family member to remove the items from his home.  The firearms and devices were not registered, to Lively or otherwise, in the National Firearms Registration and Transfer Record, as required by the NFA.

U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement. 

The criminal indictment was the result of an investigation by Homeland Security Investigations-Chattanooga Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives Chattanooga Field Office; the Federal Bureau of Investigation; Chattanooga Police Department Bomb Squad and Special Victims Unit; and the Hamilton County Sheriff’s Office

Assistant United States Attorney Kevin T. Brown represented the United States.

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.

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Tennessee Man Sentenced to Prison on Felony and Misdemeanor Charges for Actions During January 6 Capitol Breach

Source: US FBI

            WASHINGTON— A Tennessee man was sentenced to prison today after he previously pleaded guilty to felony and misdemeanor charges related to his conduct 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.

            Allan Jennings, 57, of Hillsboro, Tennessee, was sentenced to 12 months in prison, 36 months of supervised release, and ordered to pay $3,825 in restitution and fines by U.S. District Judge Reggie B. Walton. Jennings previously pleaded guilty to a felony offense of civil disorder and a misdemeanor offense of destruction of government property.

            According to court documents, Jennings traveled from Tennessee to Washington, D.C, to attend the “Stop the Steal” rally on Jan. 6, 2021, in Washington, D.C., at the Ellipse and other election-related events. After the rally, Jennings approached the Capitol building and the West Plaza, where a large crowd had gathered. By about 2:40 p.m., the crowd on the West Plaza had grown violent and moved toward the Inaugural stage and Lower West Terrace. The crowd then began to attack law enforcement officers in this area. Officers soon retreated from the attack into an entrance to the Capitol building known as the Tunnel.

            At approximately 2:41 p.m., Jennings was among the first few rioters to pursue retreating police officers into the Tunnel. Upon entering the Tunnel, Jennings moved forward toward a double set of closed glass doors that separated the mob from police officers and the Tunnel hallway leading deeper into the Capitol building. The police had closed the doors to keep the mob from venturing further down that hallway, and they began to form a line to further prevent the mob from advancing.

            Jennings then pulled out a pair of medical scissors and used the scissors’ glass-breaking end to tap the glass on one of the glass doors. Jennings quickly struck the glass multiple times, shattering the door’s glass on the second attempt. The damage to the door cost $825 to repair.

            Court documents say that after Jennings shattered the glass, the mob moved through the now-broken sets of doors and began its push against the police line. Jennings made his way toward the front of the mob, where he put his hands on a police officer’s shield. Jennings then returned to the middle of the mob in the Tunnel before exiting the Tunnel at approximately 2:47 p.m. and returning to the Inaugural stage and Lower West Terrace.

            The FBI arrested Jennings on Sept. 12, 2023, in Tennessee.

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

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

            In the 44 months since Jan. 6, 2021, more than 1,504 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 560 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.

Federal Jury Convicts Kingston Man of Attempting to Entice Minors to Engage in Unlawful Sexual Activity and Other Child Sex Crime Offenses

Source: US FBI

KNOXVILLE, Tenn. – On September 25, 2024, following a-three-day trial in United States District Court at Knoxville, a federal jury convicted Christopher Edward Allen, 34, of Kingston, TN, of nine counts involving child pornography and attempting to entice minors to engage in unlawful sexual activity.  Specifically, Allen was convicted of three counts of attempting to entice a minor to engage in unlawful sexual activity, one count of producing child pornography, two counts of attempting to produce child pornography, two counts of transporting a visual depiction of a minor engaged in sexually explicit conduct, and one count of transferring obscene material.

Sentencing is set for February 6, 2025, at 2:00 pm, in front of the Honorable Judge Thomas A. Varlan, United States District Judge, United States District Court at Knoxville. Allen faces a sentence of up to life in prison.

The evidence presented at trial showed that, among other things, Allen used various social media platforms to identify minors online.  Once Allen identified the minors, he enticed them over social media and texting apps to engage in unlawful sexual activity and to send nude images of themselves engaged in sexually explicit conduct.  In two instances, Allen paid the minors for nude images of themselves, which Allen later emailed to himself using the minor’s name as the subject line of the emails.  Allen also sent sexually explicit images of himself to minors using social media.  In at least one instance, Allen met a minor in person at the restaurant where Allen worked.  Allen added the minor to one of his social media accounts.  Later that night, Allen communicated with the minor over social media.  Law enforcement learned of those messages and, with consent from the minor’s parents, assumed the minor’s identity on social media two days later.  That same day, Allen was arrested at a park in Kingston, TN, after arriving with the intent to meet the minor.

U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation (FBI) made the announcement.

FBI and the Tennessee’s Ninth Judicial District Attorney General’s Office investigated the case that led to the indictment and subsequent conviction of Allen.

Assistant U.S. Attorneys Jennifer Kolman and William A. Roach, Jr., represented the United States at trial.

This case was brought as part of Project Safe Childhood (PSC), 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 the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about PSC, please visit www.justice.gov/psc.

For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab “resources.”

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United States Seizes More Than $6 Million in Alleged Proceeds of a Crypto-Confidence Scheme

Source: US FBI

            WASHINGTON – The United States seized over $6 million worth of cryptocurrency from perpetrators overseas, announced U.S. Attorney for the District of Columbia Matthew M. Graves, U.S. Attorney for the Eastern District of Tennessee Francis M. Hamilton III, Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Criminal Division, and FBI Special Agent in Charge Joseph E. Carrico of the Knoxville Division.

            The perpetrators in Southeast Asia targeted one or more individuals in the United States and fraudulently obtained millions of dollars’ worth of cryptocurrency through a cryptocurrency confidence investment scheme.

            The FBI was able to trace victim funds on the blockchain and located multiple cryptocurrency wallet addresses which still held victim funds totaling more than $6 million. 

            Cryptocurrency confidence investment schemes begin by criminals contacting potential victims through seemingly misdirected text messages, dating applications, or professional meetup or investment groups. Next, using various means of manipulation, the criminal gains the victim’s affection and trust. The perpetrator then recommends cryptocurrency investment by touting their own, or an associate’s, success in the field. Means of carrying out the scheme vary, but a common tactic is to direct a victim to a fake investment platform hosted on a website. These websites, and the investment platforms hosted there, are created by criminals to mimic legitimate platforms. The subject assists the victim with opening a cryptocurrency account, often on a U.S.- based exchange, and then walks the victim through transferring money from a bank account to that cryptocurrency account. Next, the victim will receive instructions on how to transfer their cryptocurrency assets to the fake investment platform.

            On its surface, the fraudulent platforms often show lucrative returns, encouraging further investment; however, all deposited funds are actually routed to a cryptocurrency wallet address controlled completely by the perpetrators. The perpetrators frequently allow victims to withdraw some of their “profits” early in the scheme to engender trust and help convince victims of the legitimacy of the platform. As the scheme continues, victims are unable to withdraw their funds and are provided various excuses as to why. Ultimately, victims are locked out of their accounts and lose all their funds.

            “In these scams, fraudsters trick U.S. citizens into believing they are transferring funds to cryptocurrency investment opportunities when, in fact, they are just unwittingly turning their money over to the fraudsters,” said U.S. Attorney Graves. “The fact these fraudsters and their accounts are typically located outside the United States, will not stop us or our partners at the FBI from doing all we can to recover the proceeds of these frauds and to hold the people running them accountable.”

            “Investment scams and schemes are not new, but committing fraud with digital currency presents new challenges for law enforcement attempting to recover lost funds,” said Special Agent in Charge Carrico. “The FBI along with our law enforcement partners will continue to investigate allegations of crypto scams, but the best defense is to educate yourself before making any investment. Remember, if it sounds too good to be true, it probably is.”

           Based on data submitted to the FBI’s Internet Crime Complaint Center (https://www.ic3.gov/) in 2022 alone, perpetrators of these schemes targeted tens of thousands of victims in the United States and resulted in over two billion dollars in private assets being siphoned overseas. The loss amount reported in IC3 complaints involving cryptocurrency increased 45% since 2022, from more than $3.8 billion to over $5.6 billion in 2023. 

           The FBI Knoxville Division is investigating the case. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit are providing invaluable assistance. 

           The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets. This case is being prosecuted by Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr. of the District of Columbia, Assistant U.S. Attorney Joseph DeGaetano of the Eastern District of Tennessee, and Trial Attorney Stefanie Schwartz from the National Cryptocurrency Enforcement Team with the Computer Crime and Intellectual Property Section of the Department of Justice.

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Former Rock Hill Cop Convicted at Trial of Receiving, Sending Child Sexual Abuse Materials

Source: US FBI

COLUMBIA, S.C. — A federal jury in Columbia has convicted Daniel Paul Shealy, 36, of Rock Hill, on 18 counts of possession and distribution of child sexual abuse material.* The jury returned a guilty verdict following three days of testimony and an hour and a half of deliberation.

According to evidence presented during trial, in 2023 investigators with the York County Sheriff’s Office (YCSO) received a tip from the National Center for Missing and Exploited Children (NCMEC) that three videos depicting the sexual abuse of children were flagged on the social messaging app Kik, under the username “orgasmd0nor.” Investigators with the YCSO and FBI traced the account and IP address to Shealy, a detective and former school resource officer with the Rock Hill Police Department.

Further investigation revealed that Shealy was a member of more than 40 private groups on Kik designed for users to trade child sexual abuse materials, including groups with references to minors, teens, and incest in the titles. According to testimony from a Kik representative, users in such groups often exchange images and videos of rape, sexual assault, bestiality, and other abuse of children. Investigators testified during trial that after receiving the tip, they executed a search warrant on Shealy’s phone and his Kik account. Shealy’s phone was in his patrol car and accessible through his thumbprint and a passcode, which was his badge number. 

Agents recovered 126 explicit videos of children from Shealy’s phone and Kik account, which Shealy had received or distributed to others on the internet. The files included recordings of prepubescent minors in bondage and constraints and child sex abuse materials represented the majority of explicit recovered from his Kik account.

When Shealy testified at trial, he admitted that he operated the orgasmd0nor account and that he accessed child sex abuse material on the platform. He also admitted that he never reported the any of the videos to Kik or to law enforcement because he either did not know how to report or was concerned about his privacy related to his intimate life. Shealy taken into custody at the conclusion of the trial. 

“The facts alone in this case were disturbing but became even more appalling because the defendant was a police officer, an individual given immense public trust,” said U.S. Attorney Bryan Stirling for the District of South Carolina. “We remain committed to holding those who betray public trust accountable and protecting our most vulnerable citizens, our children. We’re grateful to the FBI, York County Sheriff’s Office for their work on this case and our trial attorneys that worked diligently to bring this man to justice.”

“The FBI is unwavering in its commitment to safeguarding children from individuals who perpetrate physical and sexual abuse or engage in the exploitation of minors through the distribution of child sexual abuse material, as proved in this case,” said Reid Davis, Acting Special Agent in Charge of the FBI Columbia Field Office. “We hope this verdict represents a meaningful step toward justice for the victims and ensures that the defendant is held fully accountable under the law.”

He faces a mandatory minimum of five years in federal prison and a maximum of 20 years. He also faces a fine of up to $250,000, restitution, lifetime supervision to follow the term of imprisonment, and sex offender registry requirements.  United States District Judge Joseph F. Anderson Jr. presided over the trial and will sentence Shealy after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

The case was investigated by the FBI Columbia field office, the York County Sheriff’s Office, and the South Carolina ICAC (Internet Crimes Against Children) Task Force at the South Carolina Attorney General’s Office.  Assistant U.S. Attorneys Elliott B. Daniels and Elle E. Klein are prosecuting the case.

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