MIL Security Engine-1

Source: United States Department of Justice Criminal Division

Defendant Evaded Taxes on Millions Earned from Selling Internet to American Soldiers

Source: United States Department of Justice

An indictment was unsealed yesterday in the Eastern District of Virginia charging two men with orchestrating a securities fraud scheme utilizing Ostin Technology Group Co. Ltd. (OST) stock to target American retail investors. The charged scheme netted over $100 million for the defendants and their co-conspirators, who siphoned OST shares in non-bona fide securities transactions and then dumped their stock amidst a coordinated social media campaign to pump OST’s share price from April to June 2025. The Department of Justice has already seized nearly $10 million in assets from co-conspirators’ accounts.

“The defendants targeted American retail investors through a predatory pump and dump scheme to take advantage of the artificial inflation of the price of OST shares,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Today’s charges show the Criminal Division’s focus on aggressively protecting Americans from foreign actors seeking to exploit U.S. markets. Through the hard work of our prosecutors and law enforcement partners, we will continue to act quickly to seize the proceeds of these crimes and mitigate losses for victims.”

“Protecting the integrity of our financial markets remains a top priority,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Anyone who picks the pockets of American investors in violation of the law will be aggressively prosecuted. The Department of Justice has established whistleblower programs to encourage corporations and individuals to come forward with timely information regarding misconduct and criminal behavior. Failing to do so invites serious consequences.”

“Securities fraud by foreign actors not only exploits fair investment practices, but also defrauds American investors and harms U.S. markets,” said Assistant Director Jose A. Perez of the FBI’s Criminal Investigative Division. “Today’s charges demonstrate the FBI’s continued commitment, alongside our partners, to combatting financial crime and bringing perpetrators to justice.”

“The SEC-Office of Inspector General (SEC-OIG) will relentlessly investigate individuals who submit false filings with the SEC,” said Inspector General Kevin Muhlendorf of the SEC. “Comprehensive investigative oversight to protect investors, the global markets, and the operational integrity of the SEC’s programs, systems, and operations is a top priority for our office.”

According to the indictment, Lai Kui Sen is the co-CEO of OST, and Yan Zhao, who goes by the aliases Hank Shi and Hank Shu, among others, is a financial advisor. OST is a Cayman Islands company with its principal operations in China, that claimed to be a manufacturer of display modules used in consumer electronics, commercial LCD displays, and automotive displays. OST is publicly traded on NASDAQ and operated, at one point, with a variable interest entity (VIE) investment structure, which is often used by Chinese companies.

According to the indictment, Sen, Zhao, and others allegedly engaged in a complex scheme to first provide a group of fifteen co-conspirators with tens of millions of OST shares through two non-bona fide securities transactions. In one of these transactions, these co-conspirators paid nothing to OST for more than 70 million OST shares. 

The indictment alleges that, on April 15, 2025, the same day that the select investors received their first tranche of heavily discounted OST shares, a fraudulent campaign began to artificially inflate the price and trading volume of the OST stock. This included promoting the stock by impersonating real investment advisors, among others, promoting the stock on social media, and creating a false impression of market-wide buying momentum.  To capitalize on OST’s artificial price inflation and to harm the victim investors, Zhao and Sen facilitated the opening of brokerage accounts for certain select investors and orchestrated the selling of the shares that they had received either heavily discounted or for no remuneration. These sales generated substantial profits of approximately more than $110 million.  Ultimately, according to the indictment, unwitting investors suffered significant losses when, on June 26, 2025, OST lost over $950 million in market capitalization, representing over 94% of its value. 

Both defendants are charged with conspiracy to commit securities fraud and wire fraud, securities fraud, and wire fraud. If convicted, the defendants face a maximum penalty of 20 years in prison for conspiracy and wire fraud, 25 years in prison for Title 18 securities fraud, and 20 years in prison for Title 15 securities fraud. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI and SEC-OIG investigated the case. The Department of Justice appreciates the efforts of FINRA’s Surveillance and Market Intelligence – Market Abuse Group who referred this matter.

Trial Attorney Kashan K. Pathan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Avi Panth for the Eastern District of Virgina are prosecuting the case.

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

Source: United States Department of Justice Criminal Division

A nine-count indictment was unsealed in the Western District of Tennessee charging six alleged members of a criminal street gang known as Unknown Vice Lords (UVL) – Ghost Mob with conspiracy to commit murder, attempted murder, assault with a dangerous weapon, and firearms violations.

“As alleged, these individuals showed a blatant disregard for public safety, engaging in a retaliatory gang shooting in a residential neighborhood,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Gang violence inflicts profound harm on our communities, fostering fear, destabilizing neighborhoods, and  damaging the quality of life for law-abiding residents. The arrest of these violent gang members underscores the Justice Department’s unwavering commitment to protecting public safety and the rule of law. We will continue to dismantle these criminal organizations and protect the safety and security of our citizens.”

“The premeditated and horrendous acts of violence that these gang members committed demonstrates a blatant disregard for human life,” said Special Agent in Charge Jamey VanVliet of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division. “The men and women of the ATF, along with our local, state, and federal law enforcement partners, remain committed to combatting violent crime and swiftly bringing these individuals to justice before they commit other senseless acts of violence.”

According to court documents, the UVL Ghost Mob is a violent, criminal street gang that operates throughout the Western District of Tennessee and elsewhere. The UVL Ghost Mob is a subset of the Almighty Vice Lord Nation, which originated in Chicago and eventually spread to other parts of the United States, including Tennessee.

Court documents allege that on Sept. 6, 2020, after  rival gang members opened fire on UVL Ghost Mob members and their families, injuring four people, UVL Ghost Mob leaders ordered a retaliatory attack. Shortly after midnight on Sept. 7, 2020, the defendants travelled to the residence of the rival gang members, armed with assault style rifles and wearing masks and gloves. The defendants intentionally shot approximately 40-50 bullets into the residence while the rival gang members were inside. Neighborhood security cameras captured the shooting. In the video, the defendants are depicted using, carrying, and firing multiple firearms into the residence.

The following defendants were charged for their role in the offense:

• Antwon Brown, also known as Yayo, 32 of Memphis, Tennessee;
• Cordera Douglas, also known as Chuckie Dee, 36 of Memphis, Tennessee;
• Willie Merriweather, 41 of Antioch, Tennessee;
• Tevin Richardson, also known as Santana, 34 of Memphis, Tennessee;
• Ricky Rogers, Jr., also known as Double R, RR, 32 of Memphis, Tennessee; and
• Laraveus Williams, also known as Ray Ray, 32 of Memphis, Tennessee;

Assault with a dangerous weapon in aid of racketeering carries a maximum penalty of 20 years’ imprisonment. Conspiracy to commit murder and attempted murder in aid of racketeering carries a maximum sentence of 10 years’ imprisonment. The charge of discharging a firearm during and in relation to a crime of violence carries a mandatory sentence of at least 10 years consecutive to any other sentence. If convicted, a federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The ATF and Memphis Police Department investigated the case.

Trial Attorneys Lisa M. Thelwell and Dennis Robinson of the Criminal Division’s Violent Crime and Racketeering Section are prosecuting the case, with substantial assistance from the United States Attorney’s Office for the Western District of Tennessee.

This case is part of the Criminal Division’s Violent Crime Initiative to prosecute violent crimes in Memphis, Tennessee, and surrounding areas. The Criminal Division and the U.S. Attorney’s Office for the Western District of Tennessee have partnered, along with local, state, and federal law enforcement agencies, to confront violent crimes committed by gang members and associates through the enforcement of federal laws and use of federal resources to prosecute the violent offenders and prevent further violence.

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

Source: United States Department of Justice Criminal Division

A court in Tennessee today sentenced a former employee of a DVD and Blu-ray manufacturing and distribution company used by major movie studios to 57 months in prison for stealing DVDs and Blu-rays of blockbuster movies from the company and selling them before their official scheduled release dates, as well as for being a convicted felon in possession of a firearm. A digital copy of at least one of the stolen Blu-rays was illegally distributed tens of millions of times over the internet, causing the copyright owner tens of millions of dollars in losses.

“The defendant profited from the creativity and intellectual property of others by stealing DVDs and Blu-rays of movies that were being prepared for commercial distribution,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Today’s sentencing signals our commitment to protecting American innovation from pirates that would exploit others’ work for a quick profit, which, in this case, cost one copyright owner tens of millions of dollars.”

“The copyright owner lost tens of millions of dollars as a result of Steven Hale stealing DVDs and Blu-rays of blockbuster movies and selling them before their official scheduled release dates,” said Special Agent in Charge Joseph E. Carrico of the FBI Nashville Field Office. “Today’s sentence should send a strong message that willfully stealing another party’s intellectual property is a serious crime and the FBI is committed to holding violators accountable.”

According to court documents and statements made in court, Steven R. Hale, 38, of Memphis, worked for a multinational company that, among other things, manufactured and distributed DVDs and Blu-rays of movies. From approximately February 2021 to March 2022, Hale stole hundreds of “pre-release” DVDs and Blu-rays, that is, discs being prepared for commercial distribution in the United States and not available for sale to the public. These included DVDs and Blu-rays for such popular films as “F9: The Fast Saga,” “Venom: Let There Be Carnage,” “Godzilla v. Kong,” “Shang-Chi and the Legend of the Ten Rings,” “Dune,” and “Black Widow.” Hale sold the DVDs and Blu-rays through e-commerce sites. At least one pre-release Blu-ray that Hale stole and sold, “Spider-Man: No Way Home,” was extracted or “ripped” from the Blu-ray by bypassing the encryption that prevents unauthorized copying. That digital copy was then illegally made available over the internet more than a month before the Blu-ray’s official scheduled release date. Copies of “Spider-Man: No Way Home” were downloaded tens of millions of times, with an estimated loss to the copyright owner of tens of millions of dollars.

In addition, Hale unlawfully possessed a pistol that was loaded with one live round in the chamber and 13 rounds in the magazine. Hale has prior felony convictions for armed robbery and attempted robbery.

In May 2025, in the DVD and Blu-ray case, Hale pleaded guilty to criminal copyright infringement and agreed to make full restitution to his victims, including the return of the approximately 1,160 stolen DVDs and Blu-rays seized from him to the company where he worked. The same day, in the gun case, Hale pleaded guilty to being a convicted felon in possession of a firearm. The cases were consolidated for sentencing.

The FBI is investigating the case.

Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Raney Irwin for the Western District of Tennessee prosecuted the case.

Source: United States Department of Justice Criminal Division

Laye Sekou Camara, 47, was sentenced today to 57 months in prison after pleading guilty to four counts of visa fraud.

“The defendant, who was a member of a Liberian rebel group, engaged in the extrajudicial killing of civilians and ordered a mortar attack which struck the U.S. Embassy compound in Monrovia, Liberia, before traveling to the United States and making false statements to obtain lawful permanent residence,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Human rights violators are not welcome in the United States, and the Criminal Division is committed to holding accountable those who attempt to conceal their crimes and live freely without consequence in the United States.”

“The defendant was a notorious LURD commander, brutal even by the standards of the Second Liberian Civil War, and he lied about his past to build a new life in the United States,” said U.S. Attorney David Metcalf for the Eastern District of Pennsylvania. “Today’s sentence holds him responsible for his immigration fraud and officially ends his efforts to avoid accountability for his horrific crimes.”

According to court records, in 2010, Camara, also known as “general K-1” and “general Dragon Master,” entered the United States pursuant to an immigrant visa and later obtained Lawful Permanent Resident status and a green card by falsely stating on immigration forms that he had never participated in extrajudicial killings or other acts of violence; had never been involved with a paramilitary unit, rebel group, or guerilla group; and had never engaged in the recruitment or use of child soldiers.

At a preliminary sentencing hearing held on Jan. 23, nine Liberian witnesses described how Camara used his position of power in the Liberians United for Reconciliation and Democracy (LURD) rebel group to terrorize civilians, committing extrajudicial killings and other atrocities. One farmer in Lofa County, Liberia, described how “K-1 and his boys surrounded the town, . . . [and] . . . [t]hose who refused to be arrested, those who resisted, they were killed.” Another witness recounted how Camara used a handgun to kill at close range a pregnant woman and her 13-year-old son after the woman objected to LURD’s recruitment of her son. Other witnesses described how LURD rebels – and Camara specifically – fired on and killed civilians who were trying to obtain food. Camara also ordered a “mortar crew” under his command to attack central Monrovia, striking the U.S. Embassy compound, resulting in the death of a U.S. embassy employee – a Liberian guard – and other civilians. Other witnesses testified about Camara’s tactics to humiliate and terrorize civilians, including through mutilation of his victims. In one instance, a witness described how Camara tied a man’s hands behind his back and “cut off his right ear,” when the man continued to resist.

HSI Philadelphia investigated the case, with valuable assistance from the Pennsylvania Attorney General’s Office and the U.S. Department of State’s Diplomatic Security Service at the U.S. Embassy in Monrovia. The Human Rights Violators and War Crimes Center (HRVWCC) supported the case. Established in 2009 and led by HSI, the HRVWCC uses a whole of government approach to further efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation, and the use or recruitment of child soldiers.

Assistant U.S. Attorneys Linwood C. Wright, Kelly Harrell, and Patrick Brown of the Eastern District of Pennsylvania and Trial Attorney Chelsea Schinnour of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case.

Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE (1-866-347-2423) or internationally at 001-1802-872-6199. They can also email HRV.ICE@ice.dhs.gov or complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.