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Source: US FBI

LOS ANGELES – A Wisconsin man pleaded guilty today to participating in a one-week nationwide “swatting” spree that gained access to Ring home security door cameras, placed bogus emergency phone calls designed to elicit an armed police response, then livestreamed the events on social media, sometimes while taunting responding police officers in communities such as West Covina and Oxnard.

Kya Christian Nelson, 23, of Racine, Wisconsin, pleaded guilty to one count of conspiracy and two counts of unauthorized access to a protected computer to obtain information.

Nelson, who is doing time in a Kentucky state prison after being convicted in an unrelated case, has been in federal custody since August 2024.

“Swatting puts innocent lives in danger,” said Acting United States Attorney Joseph T. McNally. “Today’s guilty plea demonstrates that individuals who engage in this dangerous conduct will be held accountable through federal prosecutions.”

“The defendant’s malicious actions traumatized his victims and put their lives – and the lives of responding officers – at risk,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “Swatting hoaxes drain crucial law enforcement resources at the expense of taxpayers and diverts police officers from responding to actual crisis situations. This case is a good reminder for security doorbell users that it’s important to practice strict cyber hygiene by using difficult passwords and by employing two-factor authentication.”

According to his plea agreement, from November 7, 2020, to November 13, 2020, Nelson and co-conspirators gained access to home security door cameras sold by Ring LLC, a Santa Monica-based home security technology company. Nelson acquired without authorization the username and password information for Yahoo! email accounts belonging to victims throughout the United States.

The conspirators then determined whether the owner of each compromised Yahoo! account also had a Ring account using the same email address and password that could control associated internet-connected Ring doorbell camera devices. Using that information, they identified and gathered additional information about their victims.

Then, the conspirators placed false emergency reports or telephone calls to local law enforcement in the areas where the victims lived. These reports or calls were intended to elicit an emergency police response to the victim’s residence. The conspirators then accessed without authorization the victims’ Ring devices and transmitted the audio and video from those devices on social media during the police response. They also taunted responding police officers and victims through the Ring devices during several of the incidents.

For example, on November 8, 2020, Nelson and a co-conspirator accessed without authorization Yahoo! and Ring accounts belonging to a victim in West Covina. A hoax telephone call was placed to the West Covina Police Department purporting to originate from the victim’s residence and posing as a minor child reporting her parents drinking and shooting guns inside the residence. The caller claimed that her parents had multiple firearms and had fired approximately seven gunshots inside the house. Based on this hoax call, West Covina Police Department officers made an emergency response to the house and cleared the residents from the home at gunpoint.

During the police response, Nelson accessed the Ring doorbell camera located at the West Covina residence and used it to verbally threaten and taunt the police officers who responded to the reported incident.

In another incident, on November 11, 2020, Nelson illegally possessed the Yahoo! and Ring login credentials of a victim living in Oxnard. Nelson then used those credentials to access the victim’s Ring account. Nelson or a co-conspirator made a hoax call to the Oxnard Police Department purporting to be coming from inside the victim’s home.

The caller told the police that they were a child whose father was wielding a handgun inside the residence. Nelson made a second hoax call to Oxnard Police to report hearing shots fired at the victim’s residence. Based on these hoax calls, Oxnard Police officers made an emergency response to the house and cleared the residents from the home at gunpoint.

Nelson accessed the Ring doorbell camera located at the Oxnard residence and used it to threaten and taunt the police officers who had responded to the reported incident.

United States District Judge John A. Kronstadt scheduled a May 1 sentencing hearing, at which time Nelson will face a statutory maximum sentence of five years in federal prison for each count.

One of Nelson’s indicted co-conspirators, James Thomas Andrew McCarty, 22, of Kayenta, Arizona, was sentenced in June 2024 to seven years in federal prison both for his role in this case, and on additional charges in the District of Arizona. In connection with the Ring swatting incidents, McCarty pleaded guilty to the same conspiracy as Nelson.

McCarty further admitted to illegally accessing a victim’s Ring camera in Florida and making a call to the North Port Florida Police Department, in which he purported to be the victim’s husband who had just killed her, was holding a hostage, and had rigged explosives at the residence. McCarty then livestreamed the law enforcement response and posted a message on social media taking credit for the swatting incident and stating that he thought it was amusing.

The FBI investigated this matter.

Assistant United States Attorney Khaldoun Shobaki of the Cyber and Intellectual Property Crimes Section is prosecuting this case.

Source: US FBI

LOS ANGELES – A cryptocurrency businessman who dubbed himself “The Godfather” and a Los Angeles County Sheriff’s Department (LASD) deputy have agreed to plead guilty to federal criminal charges, including for their roles in a conspiracy that targeted multiple victims in Los Angeles, violating their civil rights via intimidation, extortion, illegal search warrants and other abuses of police power, the Justice Department announced today.

Adam Iza, 24, who has residences in Beverly Hills and Newport Coast, was named this week in a three-count superseding information that charges him with conspiracy against rights, wire fraud and tax evasion. Iza has been in federal custody since September 2024.

Eric Chase Saavedra, 41, of Chino, an LASD deputy and a former federal task force officer, was separately charged today with conspiracy against rights and subscribing to a false tax return.

Iza and Saavedra have agreed to plead guilty to these felony charges and are expected to make their initial appearances in United States District Court in downtown Los Angeles in the coming days.

“When law enforcement officers violate their oath, they betray not only the public but also the vast majority of officers who do the job the right way,” said United States Attorney Martin Estrada. “The conduct admitted to in these plea agreements is deeply disturbing and cannot be tolerated. I am grateful for the cooperation of Sheriff Robert Luna and the Los Angeles County Sheriff’s Department in working with our office to root out corruption and uphold civil rights.”

 “The defendants profited handsomely by abusing the criminal justice system and trampling on victims’ civil rights,” said Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI is committed to rooting out corrupt officials and their coconspirators whose actions erode trust in law enforcement.”

 The plea agreement for Iza was filed this morning. Federal prosecutors late Thursday filed charges, as well a plea agreement, in the case against Saavedra.

According to their plea agreements, Iza hired off-duty LASD deputies to act as his personal enforcers against his enemies. As part of the conspiracy to violate civil rights, Iza would have the deputies assist him in carrying out extortion, intimidation, setting people up for arrest, and abuse of legal process. One of the deputies Iza employed was Saavedra, who was assigned to LASD’s Operation Safe Streets Bureau and served as a federal task force officer assigned to the United States Marshals Service’s Pacific Southwest Regional Fugitive Task Force.

Saavedra founded a private security company, Saavedra & Associates LLC. This company provided private security for its clients and often employed active LASD deputies and other law enforcement officers.  From August 2021 to March 2022, Iza – who then lived in a Bel Air mansion – hired Saavedra & Associates to provide him round-the-clock private security at a typical cost of $100,000 per month. Iza hired the company again from July 2024 until Iza’s arrest in September 2024.

Starting in the fall of 2021, Saavedra illegally and regularly used his LASD credentials to access sensitive law enforcement databases to obtain personal identifiable information for Iza, including PII for people with whom Iza had personal or business disputes, their associates and their family members. Saavedra knew he was not authorized under LASD rules to access this information for non-law enforcement matters or to share it with private clients. He did so because he wanted to impress Iza with his access to law enforcement information and to continue to receive lucrative business from Iza, according to court documents.

Saavedra admitted that he used his powers as a sworn law enforcement officer to improperly obtain court-authorized search warrants related to individuals with whom Iza had disputes, including a warrant to search an individual’s residence that Saavedra helped facilitate and a warrant to obtain location information associated with another individual that Saavedra directly obtained.

Iza, Saavedra and others used confidential information that the LASD deputies obtained in their official capacities to locate, intimidate, harass, threaten and extort individuals with whom Iza had disputes and their associates, according to court documents. They also used Telegram and other encrypted communications apps to avoid law enforcement detection.

For example, in late 2021 or early 2022, Iza – believing a victim possessed a laptop computer containing more than $100 million in cryptocurrency – discussed and agreed that Saavedra would obtain a search warrant for GPS location associated with that victim’s telephone number. In January 2022, Saavedra applied for and obtained a search warrant under false pretenses from a Los Angeles Superior Court judge. In an affidavit supporting the search warrant application, Saavedra falsely stated that the victim’s telephone number was associated with a suspect in a firearms investigation.

After securing the illegal warrant, Saavedra tracked down the victim and provided the victim’s address to Iza. In March 2022, Iza caused three armed individuals to try to force entry into the victim’s home to steal the laptop. The individuals fled after the victim fired a gunshot in their direction. Afterward, Iza sent the victim a video of the attempted home invasion robbery.

The documents filed this week describe other violent acts, including an August 2021 event during which two LASD deputies held a victim at gunpoint inside Iza’s residence, after which Iza caused $25,000 to be transferred from the victim’s bank account to his own, and an October 2021 event in which Iza himself held a victim at gunpoint, causing that victim to transfer $127,000 to Iza.

Iza also admitted to stealing more than $37 million by fraudulently gaining access to Meta Platforms Inc. business manager accounts and their associated lines of credit from 2020 to 2022.

Both Iza and Saavedra admitted in their plea agreements to federal tax crimes. Iza willfully avoided the assessment of approximately $6,772,725 in federal income tax due for the year 2021. Saavedra received approximately $373,146 in unreported income and subscribed to a false tax return for 2021.

“Mr. Iza’s and Mr. Saavedra’s relationship was little more than a thuggish partnership between a thief and a crooked cop,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The public should be able to trust members of law enforcement, but Mr. Saavedra violated his oath for a payday. Mr. Iza stole from anyone he could and found a big payday by ripping off Meta so that he could afford to pay for Mr. Saavedra’s corrupt protection and assistance.  Unfortunately for both of them, money leaves trails and IRS Criminal Investigation is the best in the world at finding and following those trails. When you commit fraud and take a payday from fraudsters you must pay taxes on those funds. Now they will face justice for their actions.”

After pleading guilty, Iza will face up to 35 years in federal prison. Saavedra will face up to 13 years in federal prison.

The FBI and IRS Criminal Investigation are investigating this matter. The Los Angeles County Sheriff’s Department has provided assistance.

Assistant United States Attorneys Daniel J. O’Brien and J. Jamari Buxton of the Public Corruption and Civil Rights Section, and Maxwell K. Coll of the Cyber and Intellectual Property Crimes Section are prosecuting this case.

Source: US FBI

LOS ANGELES – The leaders of federal and local law enforcement agencies have joined together to create the Joint Regional Fire Crimes Task Force to investigate and prosecute fire-related crimes as Los Angeles County recovers from devastating wildfires. The Task Force will focus on investigating and prosecuting criminal actors seeking to exploit the wildfire crisis.

The Joint Regional Fire Crimes Task Force includes representatives of the United States Attorney’s Office; the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Homeland Security Investigations (HSI); the Los Angeles County District Attorney’s Office; the Los Angeles City Attorney’s Office; the Los Angeles Police Department; and the Los Angeles County Sheriff’s Department.

Members of the Task Force will meet to discuss case leads, develop and share crime intelligence, and facilitate the efficient prosecution of crimes related to the Los Angeles County wildfires. The Task Force will primarily focus on four areas: looting, burglary and impersonation offenses; crimes related to arson; illegal drone activity; and financial fraud targeting both disaster victims and those wishing to make charitable donations.

“We will not permit victims to be re-victimized,” said United States Attorney Martin Estrada. “Our community has suffered tremendously, and we are here to support them. The Joint Fire Crimes Task Force is committed to addressing crimes coming out of the fires, including any looting, arson, illegal drone flights and fraud. As the rebuilding process begins and donations and relief funds come in, we must ensure that those seeking to take advantage through criminal activity are held fully accountable.”

“Every crisis generates the best of us – brave first responders and average people who step up financially to support victims – as well as the worst in our society, including those who steal well-intentioned money or defraud victims who are already suffering,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “In addition to our efforts to combat fraud, we will devote resources to the task force to investigate allegations of arson, and we will not tolerate careless and criminal drone operators who put firefighters and residents in harm’s way. The FBI will commit resources to address this new crop of criminals callously taking advantage of the vulnerable during and after these devastating wildfires.”

“ATF possesses unparalleled expertise in determining the origin and cause of fires, even under the most complex and challenging conditions,” said Jose Medina, Acting Special Agent in Charge of the ATF Los Angeles Field Division. “Our agency offers a comprehensive set of resources for arson investigations, including certified fire investigators, chemists, electrical engineers, accelerant-detection canines, and a state-of-the-art fire research laboratory. Arson destroys lives, businesses, and entire communities. Together with our partners, we are committed to identifying, apprehending, and prosecuting those responsible.”

“Far too often, during tragic events like the Los Angeles-area wildfires, we have seen greedy individuals seek to line their pockets and divert critical funds from those most in need,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “HSI Los Angeles and partner agencies will do our part to help the region recover and rebuild by ensuring that disaster-related funds will go to individuals and families that lost loved ones, homes and livelihoods – and not unscrupulous fraudsters.”

“The Los Angeles County District Attorney’s Office, in partnership with local and federal law enforcement agencies, will relentlessly pursue and hold accountable those who despicably seek to exploit this tragedy for personal gain,” said Los Angeles County District Attorney Nathan Hochman. “We want to send a clear and unequivocal message to criminals: If you seek to commit crime during this crisis, from arson, looting, burglary and theft to price gouging and financial scams, we will arrest you, prosecute you, and seek to punish you to the full extent of the law. As billions of dollars in vital aid relief pour into Los Angeles County, our Task Force, comprised of over a thousand prosecutors and thousands of law enforcement agents, will protect those who have suffered from being victimized again. Justice will be swift, certain and significant. Los Angeles County has been tested before and prevailed; and we will prevail again.”

“I am proud to stand with this powerful collaboration as we work together to ensure that no individual or business gets away with illegal or predatory conduct, including price gouging. People preying on others will face criminal justice,” said Los Angeles City Attorney Hydee Feldstein Soto. “In addition, with so many people now facing uncertainty about their future, my office is also leaning in to bring every legislative, executive and civil resource at our disposal to help us get through this emergency, and to heal, recover and rebuild together. As Angelenos, it’s what we’ve always done.”

“As our community continues to deal with these devastating wildfires, we remain steadfast in our commitment to protect our residents from those who would exploit their vulnerability,” said Los Angeles County Sheriff Robert G. Luna. “Whether it’s arson, illegal drone activity disrupting first responders, or fraud targeting victims and donors, this joint task force will investigate and hold individuals accountable. These efforts are about protecting our communities and ensuring those affected by this unimaginable disaster recover without fear or further victimization.”

“The Joint Task Force brings together individuals and agencies with the most experience and best resources to ensure that those suspected of breaking the law are identified and held accountable,” said LAPD Chief of Police Jim McDonnell. “The LAPD will not allow criminals to compound the devastation of our residents, and we will devote whatever resources are necessary to protect them.”

The Joint Regional Fire Crimes Task Force will aggressively pursue offenders in the following categories:

Looting, Burglary, Curfew Violations and Impersonation

The Task Force and partner agencies are investigating any looting, burglary, robbery, grand theft, impersonation of firefighters or law enforcement, curfew violations, and related crimes stemming from the Palisades Fire, the Eaton Fire, and other wildfires. To date more than 50 individuals have been arrested, and nine defendants have been charged and face maximum sentences ranging from six years to life in prison.

Arson

Members of the Task Force and fire authorities are investigating the Palisades Fire, the Eaton Fire and the other wildfires that started over the past week. At the request of the U.S. Attorney’s Office, ATF Los Angeles and the LAPD, ATF deployed its renowned National Response Team to the Palisades fire to investigate. These specialized investigators are working around the clock to determine the origins of these fires.

In addition, as wind events and dry conditions continue to leave the region vulnerable to wildfires, the Task Force will aggressively prosecute anyone who attempts to cause new fires by malice or reckless behavior. The federal arson statute carries a five-year mandatory minimum prison sentence and a statutory maximum sentence of 20 years in federal prison. Those penalties can increase to life sentence if a death has occurred. Under California law, arson carries a prison sentence of up to nine years.

Illegal Drones

Fire personnel must be able to perform their duties without interference. Illegal drone activity in active fire zones has disrupted operations, including one instance where a drone collided with a fire suppression plane.

The areas around the Palisades and Eaton fires are under temporary flight restrictions through January 25, and it is a crime to fly a drone in these areas. The FBI has deployed equipment to detect drones flying in these restricted areas. The federal offense of flying a drone in ones of these restricted airspaces carries a penalty of up to one year in federal prison and a fine of up to $75,000.

Fraud

The Task Force will not allow fire victims to be re-victimized by fraud and theft. Its efforts focus on ensuring that relief funds reach those in need and working to swiftly prosecutor those engaged in defrauding donors.

Generous people around the world are making donators to assist victims. Unfortunately, this creates opportunities for scams as criminals exploit disasters for their own gain by sending fraudulent solicitations or creating deceiving websites. Potential donors are urged to make donations only to known entities and to avoid giving donations in cash or via wire transfer.

The Task Force will also investigator the misuse of aid programs administered by government agencies, such as the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA). Federal agencies are deploying significant financial resources to support homeowners, renters, nonprofits and businesses affected by the fires, and any attempt to misuse these funds through fraud or identity theft will be vigorously investigated and prosecuted.

There are numerous other potential scams that might victimize victims such as contractor fraud. The Task Force will target any individual seeking to defraud victims of the wildfires.

Price-gouging laws went into effect immediately upon the declaration of a state of emergency. No person and no business can increase pricing on housing, shelter, food, water, clothing, pet care, health care or any other essential goods or services by more than 10% without violating the law. The Los Angeles City Attorney’s Office is leading Task Force efforts in this area. Violations of the price gouging statute are subject to criminal prosecution for up to one year in prison, plus a fine of up to $10,000. They are also subject to civil enforcement actions to include civil penalties of up to $2,500 per violation, injunctive relief and mandatory restitution.

Members of the Task Force remain committed to seeing that victims of these devastating fires receive justice and that those who exploit or harm them are held accountable.

Members of the public are encouraged to report wrongdoing to authorities at any law enforcement agency. For example, tips may be directed to the FBI at 1-800-CALL-FBI or https://tips.fbi.gov/home. The public may also report examples of financial fraud to the National Center for Disaster Fraud at (866) 720-5721 or https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form 

Source: US FBI

SANTA ANA, California – An Orange County man and South Los Angeles man were sentenced today to federal prison for supplying fentanyl-laced pills to a drug trafficking ring that sold these drugs to more than 1,000 customers nationwide via the dark web.

Adan Ruiz, 27, of Garden Grove, was sentenced by United States District Judge David O. Carter to 215 months (17 years, 11 months) in federal prison. Judge Carter separately sentenced Omar Navia, 39, of South Los Angeles to 180 months (15 years) in federal prison.

In imposing the sentences, Judge Carter at today’s hearings called this case “the most sophisticated fentanyl distribution ring that this court has seen.” 

Navia pleaded guilty on April 29 to one count of conspiracy to distribute controlled substances. Ruiz pleaded guilty on June 3 to one count of conspiracy to distribute controlled substances and one count of distribution of fentanyl.

Both defendants have been in federal custody since November 2023.

Navia and Ruiz admitted in their plea agreements that, from at least August 2021 to December 2022, they supplied fentanyl-laced pills to Michael Ta, 26, of Westminster, and Rajiv Srinivasan, 38, of Houston, who used the darknet and encrypted messaging applications to sell more than 120,000 fentanyl-laced pills and other drugs to more than 1,000 customers across the country, causing several fatal overdoses in the process. Navia further admitted to supplying methamphetamine to Ta and Srinivasan’s drug trafficking operation.

Srinivasan operated the account “redlightlabs” on multiple darknet marketplaces, including the site “Dark0de.” Srinivasan and Ta used the redlightlabs account to advertise and sell counterfeit M30 oxycodone pills containing fentanyl and other illicit drugs.

Srinivasan also used the encrypted messaging application Wickr to communicate with and sell drugs to customers. Srinivasan received virtual currency as payment for the drugs and then routed that virtual currency through cryptocurrency exchanges.

Ta communicated with Srinivasan about drug orders, obtained fentanyl-laced pills and methamphetamine from sources of supply, stored those drugs in his residence, and mailed out packages with drugs to customers who had ordered them from Srinivasan on the “redlightlabs” account.

From at least February 2022 to November 2022, Srinivasan and Ta engaged in at least 3,800 drug deals to approximately 1,400 customers in all 50 U.S. states, totaling more than 123,000 fentanyl-laced M30 pills, more than 9 kilograms (20 pounds) of methamphetamine, nearly 300 grams of “China white” (fentanyl powder) and black tar heroin, and 27 grams of cocaine.

Ta and Srinivasan admitted in their plea agreements to causing the fentanyl overdose deaths of three victims. Both defendants further admitted to distributing fentanyl-laced pills to two additional victims, both of whom suffered fatal drug overdoses shortly after they received the pills from Ta and Srinivasan.

Ta pleaded guilty in August 2023 to one count of conspiracy to distribute controlled substances and is serving a prison sentence of 260 months (21 years and eight months). Srinivasan pleaded guilty in June 2023 to the same charge and to one count of distributing fentanyl resulting in death and is serving a prison sentence of 235 months (19 years and seven months).

The FBI investigated this matter. The United States Postal Inspection Service, and the United States Attorney’s Office for the Southern District of Texas provided substantial assistance.

The investigation in this matter was conducted under the auspices of the FBI-led Joint Criminal Opioid Darknet Enforcement Team (JCODE), which targets darknet vendors by using sophisticated, high-tech techniques to identify drug traffickers who wrongly believe the dark web allows them to engage in criminal conduct with anonymity. Since its inception in 2018, JCODE investigations have resulted in the arrest of more than 300 darknet drug traffickers, as well as the seizure of more than $42 million in drug-tainted proceeds, over 800 kilograms of narcotics, and approximately 145 firearms.

The Northern Colorado Drug Task Force (NCDTF) also helped investigate this matter. NCDTF works to protect the community by identifying, investigating, and impacting drug-related crime in Larimer County. Participating agencies who make this effort possible include Fort Collins Police Services, Larimer County Sheriff’s Office, Loveland Police Department, Windsor Police Department, the Eighth Judicial District Attorney’s Office, and Colorado Adult Parole. The Drug Enforcement Administration’s Fayetteville Resident Agency also assisted during the investigation.

Assistant United States Attorney Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.

Source: US FBI

LOS ANGELES – An internationally known art dealer was sentenced today to 24 months in federal prison for embezzling from the bankruptcy estate of Ace Gallery Los Angeles, an art gallery located in Beverly Hills and Los Angeles, while acting as the estate’s trustee and custodian.     

Douglas J. Chrismas, 80, of the Mid-Wilshire area of Los Angeles, was sentenced by United States District Judge Mark C. Scarsi, who also ordered him to pay $12,809,192 in restitution.

At the conclusion of a four-day trial in May 2024, a jury found Chrismas guilty of three counts of embezzlement against a bankruptcy estate.

“Instead of performing his fiduciary duty and properly managing the gallery’s bankruptcy estate, this defendant chose to use funds that belonged to the creditors of the gallery to make them whole, but for his dream of an art museum that never came to be,” said United States Attorney Martin Estrada. “Today’s sentence provides a just punishment for these crimes, which were brazenly undertaken by a thief who gamed a system designed to protect those in financial desperation.”

Chrismas was the president and CEO of Art and Architecture Books of the 21st Century, which did business as Ace Gallery and had offices located in the Miracle Mile area of Los Angeles as well as in Beverly Hills.

In February 2013, Ace Gallery filed a Chapter 11 petition in federal bankruptcy court in Los Angeles and continued to operate while in bankruptcy with Chrismas acting as its fiduciary and trustee. 

In late March and early April of 2016, Chrismas embezzled approximately $264,595 that belonged to the Ace Gallery bankruptcy estate, including a $50,000 check that Chrismas signed, was drawn against the estate, and was paid to Ace Museum, a separate non-profit corporation that Chrismas owned and controlled.

Chrismas also embezzled $100,000 owed to Ace Gallery by a third party for the purchase of artwork. Instead, the funds were paid – at his direction – to Ace Museum. Finally, Chrismas embezzled approximately $114,595 owed to the gallery by a third party that purchased artwork, but which Chrismas instead had paid to Ace Museum’s landlord to keep current with its $225,000 monthly rent.

Chrismas funneled money from the bankrupt Ace Gallery for over three years, until April 2016, when the bankruptcy court appointed an independent trustee to run Ace Gallery’s bankruptcy estate and Chrismas was removed.

The FBI’s Art Crime Team investigated this matter.

Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section prosecuted this case.

Source: US FBI

FAYETTEVILLE – Two northwest Arkansas men were sentenced to federal prison this week for child exploitation offenses.  The Honorable Timothy L. Brooks presided over the sentencing hearings, which was held in the U.S. District Court in Fayetteville.

On January 10, 2024, Earnest Dean Easley, age 72, of Gravette, Arkansas, was sentenced to 168 months without the possibility of parole after being convicted of transporting child pornography through the internet. According to court documents, on June 28, 2022, an FBI taskforce officer received information from the National Center for Missing and Exploited Children indicating that Easley had sent an email containing images of child sexual abuse material . Officers later served a search warrant at Easley’s residence and discovered additional child pornography, some of which appeared to have been self-produced.  Easley later admitted that years prior, while living in Texas, he had taken lascivious photographs of a minor female relative while she was sleeping.

On January 11, 2024, Lyle Kenneth Smith, age 53, of Gentry, Arkansas, was sentenced to 74 months in federal prison without the possibility for parole after being convicted of receiving child pornography.  In August of 2021, FBI taskforce officers were conducting a nationwide investigation into Freenet, an online peer-to-peer platform.  During the investigation a task force officer discovered that Smith was actively searching for child pornography through Freenet.  Officers executed a search warrant at Smith’s residence and discovered multiple devices containing child pornography and forensic evidence that Smith had downloaded illegal content from Freenet.  Smith later admitted to having collected child pornography for years, using Freenet and other online sources.

U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

The Federal Bureau of Investigation, Benton County Sheriff’s Office, and Bentonville Police Department investigated the cases.

Assistant U.S. Attorney Devon Still prosecuted these cases on behalf of the United States.

These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing 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, please visit www.justice.gov/psc.

Source: US FBI

     LITTLE ROCK—A man who has served as a county judge, prosecutor, and criminal defense attorney was sentenced to federal prison for possession of child pornography. On Wednesday, United States District Court Judge Billy Roy Wilson sentenced Daniel Arthur Stewart, 54, of Fort Smith, to 84 months in prison with 10 years of supervised release to follow. There is no parole in the federal system.

     Stewart was originally indicted on January 8, 2019, on charges of attempting to entice a child to engage in sexual activity following an investigation into conduct that occurred between February 1, 2016, and March 19, 2016. On June 8, 2023, Stewart pleaded guilty to a superseding information that charged him with possession of child pornography related to the conduct.

     The investigation revealed that on February 1, 2016, a Faulkner County police officer with an undercover profile answered an ad posted on Craigslist. The ad was searching for contact with a “young guy” or “son.” The undercover profile was that of a 42-year-old male with a 13-year-old son. The undercover officer responded to the ad by inquiring if the poster was interested in “family play,” a term commonly used to describe sexual contact between family combinations such as father/son or mother/daughter. When the poster responded positively, the communication then continued on Kik, which is an online messaging platform. The poster’s contact photo was identified as Stewart. A sexually explicit conversation followed that led Stewart indicating he would reserve a hotel room in Fort Smith for the purpose of Stewart having sex with the 13-year-old on March 19, 2016.

     When Stewart entered the lobby of the Hampton Inn, he was taken into custody. Following Stewart’s arrest, law enforcement executed a search warrant at his residence and seized numerous electronic devices. On those devices, law enforcement found videos containing visual depictions of sexually explicit conduct involving minors, including oral sex and anal penetration between minors and between minors and adults.

     Stewart previously worked in the Sebastian County prosecutor’s office before serving as Sebastian County District Court Judge in Fort Smith. Following his time on the bench Stewart also worked as a public defender for Crawford County and more recently for Sebastian County.

     The case was investigated by the FBI and Faulkner County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Jordan Crews. 

# # #

This news release, as well as additional information about the office of the

United States Attorney for the Eastern District of Arkansas, is available online at

https://www.justice.gov/edar

Twitter:

@EDARNEWS

Source: US FBI

HOT SPRINGS, AR – Derek Scott Finkbeiner, age 46, was arrested on November 2, 2023, by the FBI. He is charged in a Criminal Complaint with a single count of Obstruction of Justice. Finkbeiner is currently serving as the elected County Sheriff in Hot Spring County, Arkansas.  A Grand Jury will later hear evidence related to this investigation and determine whether additional criminal charges will be filed against Finkbeiner. If convicted of the charge of Obstruction of Justice, Finkbeiner faces a maximum penalty of twenty years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

The Federal Bureau of Investigation (FBI) investigated the case.

Assistant U.S. Attorney’s Bryan Achorn, Trent Daniels and Criminal Chief Kim Harris are prosecuting the case.

A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov

Source: US FBI

HOT SPRINGS, AR. – A Hot Springs man was sentenced to life in prison yesterday and his co-defendant was sentenced today to 15 years in prison for the kidnapping of a minor female in April 2022. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings for the United States District Court in Hot Springs.

According to court documents, Samuel Wayne Bolling Jr., age 40 and Dayla Diane Ferrer, age 21, entered into an agreement to kidnap a minor female in an attempt to extort money from her relatives. On April 18, 2022, Ferrer approached the minor female in the downtown area of Hot Springs, Arkansas and requested her assistance. The minor entered Ferrer’s vehicle where she was immediately attacked and restrained by Bolling. Contact was made with the minor’s family and Bolling demanded payment of $10,000 in exchange for her safe return. Bolling and Ferrer held the minor overnight before releasing her the next day.

U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.

Hot Springs Police Department, FBI, Arkansas State Police, Garland County Sheriff’s Office, Hot Springs County Sherriff’s Office, and the Atoka (TN) Police Department investigated the case.

Assistant U.S. Attorneys Bryan Achorn and Carly Marshall prosecuted the case.

Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov

Source: US FBI

TEXARKANA, ARKANSAS – A Hope, Arkansas, man was sentenced on October 19, 2023, to 300 months in federal prison, with credit for time served on a related state court conviction, for using the internet to entice a minor to engage in sexual activity.  The Honorable Judge Susan O. Hickey, Chief United States District Judge, announced the sentence.  There is no parole in the federal system.

According to court documents, Jonathan Tyrell Haney, age 36, used the online social media service “Badoo” to entice a 12-year-old Ashley County girl to meet him for sexual intercourse.  The victim disappeared from her mother’s home in April 2021, reappearing alone the next day at a Columbia County gas station.  Haney’s DNA was later found on the victim’s clothing.  Haney was apprehended near Sulphur Springs, Texas, the same day the victim was found, after learning that Arkansas authorities were looking for him.

Upon completing his prison sentence, Haney will be supervised by the United States Probation Office for the next 20 years.  He is also required to register as a sex offender.

U.S. Attorney David Clay Fowlkes, of the Western District of Arkansas, made the announcement.

The Crossett, Arkansas, Police Department, Magnolia, Arkansas, Police Department, Hopkins County, Texas, Sheriff’s Office, and the Federal Bureau of Investigation investigated the case.

Assistant U.S. Attorney Graham Jones prosecuted the case for the United States.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing 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, please visit www.justice.gov/psc.

Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.