MIL Security Engine-1

Source: US FBI

BIRMINGHAM, Ala. – Ray Hunt, also known as Abdolrahman Hantoosh, Rahman Hantoosh, and Rahman Natooshas, 71, of Owens Cross Roads, Alabama, has been sentenced for violating the International Emergency Economic Powers Act.  In July 2024, Hunt pleaded guilty to conspiring to export U.S.-origin goods to the Islamic Republic of Iran in violation of the U.S. trade sanctions.

According to court documents, in May 2014, Hunt registered Vega Tools, LLC with the Alabama Secretary of State, listing the nature of the business as “the purchase/resale of equipment for the energy sector.” He operated Vega Tools, including purchasing, receiving, and shipping U.S.-origin goods, from locations in Madison County, Alabama. Beginning at least as early as 2015 and continuing to the time of his arrest in November 2022,  Hunt conspired with two Iranian companies located in Tehran, Iran, to illegally export U.S.-manufactured industrial equipment for use in Iran’s oil, gas, and petrochemical industries.

Hunt engaged in a series of deceptive practices to avoid detection by U.S. authorities, including using third-party transshipment companies in Turkey and the United Arab Emirates (UAE), routing payments through UAE banks, and lying to shipping companies about the value of his exports to prevent the filing of Electronic Export Information to U.S. authorities. Hunt lied to suppliers and shippers by claiming the items he purchased on behalf of the Iranian co-conspirators were destined for end-users in Turkey and UAE, while knowing the exports were ultimately destined for Iran. Hunt lied also to U.S. Customs and Border Protection officers regarding the nature and existence of his business when questioned upon his return from a March 2020 trip to Iran.   

Sue Bai, head of the Justice Department’s National Security Division, U.S. Attorney Prim F. Escalona for the Northern District of Alabama, Acting Assistant Secretary for Export Enforcement John Sonderman of the Department of Commerce Bureau of Industry and Security, and Assistant Director Kevin Vorndran of the FBI’s Counterintelligence Division announced the sentence.

BIS investigated the case with valuable assistance provided by the FBI.

Assistant U.S. Attorneys Jonathan Cross and Henry Cornelius for the Northern District of Alabama and Trial Attorneys Emma Ellenrieder and Adam Barry of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

Source: US FBI

Former YouPlus CEO Shaukat Shamim Presented False Financial and Product Information to Raise Money for his Artificial Intelligence Startup

Source: US FBI

HUNTSVILLE, Ala. – A North Carolina man was sentenced for attempted enticement of a minor, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

U.S. District Court Judge Anna M. Manasco sentenced Jonathan Allen Norris, 45, of Carolina Beach, North Carolina, to 120 months in prison, followed by a life term of supervised release. In October 2024, Norris pleaded guilty to attempted coercion and enticement of a minor. This conviction will require Norris to register as a sex offender in accordance with the Sex Offender Registration and Notification Act.

According to the plea agreement, in December 2022, an undercover law enforcement officer posing as a 15-year-old girl responded to an ad posted by Norris on a social media application.  On January 6, 2023, Norris arrived in Birmingham from New Mexico to engage in a sexual act with a minor.

If you suspect or become aware of possible sexual exploitation of a child, please contact law enforcement. To alert the FBI Birmingham Office, call 205-326-6166. Reports can also be filed with the National Center for Missing & Exploited Children (NCMEC) or online at www.cybertipline.org.

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

The FBI investigated the case along with the Homewood Police Department. Assistant U.S. Attorney Daniel S. McBrayer prosecuted the case. 

Source: US FBI

SAN DIEGO – Today, 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.”

“Protecting our community means identifying, arresting and holding accountable anyone who would prey on children,” said U.S. Attorney Adam Gordon. “I’m grateful for the coordinated efforts of law enforcement in this district and across the nation, and our office will continue to prioritize these prosecutions to obtain justice for these vulnerable victims.”

“Each arrest is a powerful testament to the tireless efforts of the FBI and our dedicated law enforcement partners to protect the most vulnerable among us,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “It reaffirms our unwavering commitment to pursuing justice for victims and holding predators accountable.”

In the Southern District of California, four individuals were arrested and charged with federal crimes, including:

• Seth Wheeler, who was indicted for distribution of images of minors engaged in sexually explicit conduct and possession of images of minors engaged in sexually explicit conduct. Wheeler is alleged to have distributed child pornography on two different occasions in September 2024, and in possession of child pornography in October 2024.  He was previously arrested by the state and remained in state custody until he was indicted on federal charges.
• Adam Harrison Bryant, a convicted sex offender who was charged with possession of child pornography. The investigation of Bryan began when it was suspected that he had attempted to purchase child pornography from a website using cryptocurrency.  A search warrant was executed on May 1, 2025, and Bryant was arrested when he was found in possession of an electronic device that contained child pornography. He was previously convicted in 2008 of travel with intent to engage in illicit sexual conduct and enticing a child and was sentenced to 40 months and 24 months, concurrent, followed by ten years of supervised release.
• Kristho Angel Valdez, whowas charged with receipt of images of minors engaged in sexually explicit conduct. Law enforcement officials were notified that two minor victims were exchanging sexually explicit content, including images and videos, through Snapchat with an unknown individual. Valdez was identified as the potential user of the Snapchat account and a search warrant for the account revealed thousands of sexually explicit images and videos of minors. On March 12, 2025, a search warrant was executed at Valdez’s residence. Valdez admitted to receiving sexually explicit videos from the minor victims.
• Christopher David Miller, who was charged with attempted receipt and possession of images of minors engaged in sexually explicit conduct. Agents began investigating Miller when they determined that IP addresses linked to his current and former residences attempted to obtain child pornography using Freenet, a peer-to-peer file sharing platform. A search warrant was executed at Miller’s residence on April 9, 2025, and Miller was found to be in possession of electronic devices containing child pornography.

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:

Violent Crimes Against Children

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

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

Source: US FBI

BIRMINGHAM, Ala. – Ten men pleaded guilty this week to managing a multi-million-dollar sports-betting operation, announced United States Attorney Prim F. Escalona and Special Agent in Charge Demetrius Hardeman of the Internal Revenue Service Criminal Investigation, Atlanta Field Office.

Timothy J. Pughsley, 53, and Nathan Burdette, 39, of Birmingham, Alabama; Christopher Burdette, 32, of Chelsea, Alabama; Thomas Zito, 59, of Vestavia, Alabama; Gary Rapp, 46, of Lakeland, Tennessee; Mark Giaquinto, 52, of Upton, Massachusetts; Matthew Voorhees, 49, of Englewood, Colorado; David Richards, 39, of Las Vegas, Nevada; and Joshua Gentrup, 38, of Athens, Georgia, entered their guilty pleas before United States District Judge Madeline Haikala to conspiring to operate an illegal gambling business and to their participation in a money laundering conspiracy. Jonathan Lind, 46, of Birmingham, Alabama, also pleaded guilty to conspiring to operate an illegal gambling business. Sentencing hearings for the defendants are set in May 2025.

According to the plea agreements, Pughsley began operating a bookmaking organization at least 17 years ago. The organization eventually became known as “Red44,” and bookmaking and betting activities occurred online via an offshore server located in Costa Rica. It is estimated that the organization accepted over $2 billion in wagers during its existence. Within the plea agreements, the defendants—all senior agents within Red44—agreed to pay excise tax restitution totaling $19,777,382.61 to the IRS arising from their acceptance of wagers from sports betters across the U.S. and to satisfy any income tax obligations that remain outstanding.

“These guilty pleas are the end result of years of hard work by members of federal and state law enforcement agencies to enforce our nation’s gambling and tax laws,” Escalona said. “The defendants illegally accepted millions of dollars in wagers and lived lavishly while avoiding their excise tax obligations. This office will diligently pursue those who enrich themselves in violation of the law.”

“Excise tax evasion and illegal sports betting are not victimless crimes,” said Special Agent in Charge Hardeman. “Money obtained from illegal gambling operations is often used to finance other criminal activities. IRS-CI special agents are skilled at following the money to investigate and expose these illegal organizations, who will be held accountable. Thank you to our local, state, and federal partners who assisted in this investigation.”

IRS-Criminal Investigation and Homeland Security Investigations investigated the case, with assistance from the Vestavia Hills Police Department, Shelby County Sheriff’s Office, Alabama Department of Revenue, and Federal Bureau of Investigation. Assistant United States Attorneys Catherine Crosby, Kristen Osborne, and Ryan Rummage are prosecuting the case. 

Source: US FBI

SAN DIEGO – Federal prosecutors in the Southern District of California filed 124 border-related cases this week, including charges of assault on a federal officer, bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.

The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

A sample of border-related arrests this week:

• On April 28, Jose Maria Murillo Estrada, a Mexican national, was arrested and charged with Assaulting, Resisting, or Impeding Federal Officers and reentry after deportation. According to a complaint, the assault happened after Murillo attempted to make entry into the United States from Mexico through the San Ysidro Port of Entry by running through vehicle primary lanes and was intercepted by officers.
• On April 27, Emma Alejandra Medina, a U.S. citizen, was arrested and charged with Attempted Bringing in Aliens for Financial Gain. According to a complaint, Medina was captain of a boat that was transporting eight undocumented immigrants on San Diego Bay.
• On April 26, Jorge Alexandro Tellez, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Tellez was taken into custody by Customs and Border Protection officers after he attempted to cross the border in his vehicle in the San Ysidro Port of Entry’s SENTRI lane with 286 pounds of methamphetamine concealed in all four doors, the seats, the spare tire, the tailgate, and in multiple tool bags located inside the vehicle.

Also this week, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are a few of those cases:

• On May 1, Juan Morales-Lopez, a Mexican national who was last deported in November 2024 and immediately returned on December 10th, was sentenced in federal court to 18 months in custody consecutive to 12 months custody for violating the terms of his supervised released for his earlier illegal entry conviction, for a total of 30 months in custody. Morales-Lopez has 10 illegal entry felony convictions in total and has been removed from the United States a total of 35 times.
• On May 1, Jose Ramon Ochoa-Monteverde, a Mexican national living in the United States on a Visa, was sentenced in federal court to 84 months in custody for his role as a coordinator and courier for a drug trafficking organization based in Mexico, Imperial Valley, and the Central District of California. In one instance, Ochoa-Monteverde loaded a tractor trailer with duffel bags containing 106.38 kilograms of methamphetamine at a truck stop in Brawley, CA.
• On April 28, Alejandro Gutierrez-Aguilar, who was previously convicted of Possession with Intent to Distribute in 2014, was sentenced in federal court to 30 months in custody for again entering the U.S illegally.

Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: US FBI

            WASHINGTON – Eric Council, 25, of Athens, Alabama, entered a guilty plea today to one count of conspiracy to commit aggravated identity theft in United States District Court for the District of Columbia. Council was arrested on October 17, 2024, in connection with his role in a conspiracy to hack into the X account of the U.S. Securities and Exchange Commission (SEC) and publish fraudulent posts in the name of the then-SEC Chairman. 

           The plea was announced by U.S. Attorney Edward R. Martin, Jr., Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, SEC Inspector General Deborah Jeffrey and FBI Special Agent in Charge Sean Ryan of the Washington Field Office, Criminal and Cyber Division.

           Council’s plea was entered before U.S. District Court Judge Amy Berman Jackson in the District of Columbia. He faces a maximum sentence of five years in prison, a $250,000 fine, and up to three years of supervised release. His sentencing is scheduled for May 16, 2025.

            According to court documents, from at least January 2024, Council conspired with others to carry out Subscriber Identity Model (SIM) attacks, commonly referred to as “SIM swaps,” in exchange for money. 

       A SIM card is a chip that stores information identifying and authenticating a cell phone subscriber and connects a physical cell phone to a mobile carrier’s cellular and data network. A SIM swap attack is a form of sophisticated fraud where criminal actors fraudulently induce a mobile carrier to reassign a mobile phone number from a victim’s SIM card to a SIM card and telephone controlled by a criminal actor attempting to access valuable information associated with the victim’s telephone. Members of SIM swapping groups conduct SIM swaps for the purpose of defeating multifactor authentication and/or two-step verification security features for internet connected accounts, such as social media and virtual currency accounts. 

           After convincing a mobile carrier to reassign a phone number to a new SIM card in the criminal actor’s control, members of the conspiracy generate password reset security authentication codes for online accounts and those codes are in turn sent to the telephone in the control of the criminal actor. Members of SIM swap groups share the security reset codes with one another to unlawfully access a victim’s internet connected accounts and complete the fraud. 

           On or about January 9, 2024, Council, and others, executed a SIM swap of the mobile phone account associated with the @SECgov X account, the official account of the SEC. The purpose of this SIM swap was to gain unauthorized access to this government account in order to make fraudulent posts. 

           Before January 9, a member of the conspiracy had identified the authorized user for the phone number linked to the official @SECgov X account. Council received instruction from a co-conspirator to perform the SIM swap on this phone line, along with information to make the needed fake ID, that is, an image of an ID card template with the authorized user’s name on it but Council’s face, and information purporting to be the user’s date of birth and social security number. 

           Council used his portable ID card printer to create a physical ID which he used to impersonate the victim at an AT&T store in Huntsville, Alabama. Council provided false information to the AT&T store employee to explain why he needed a replacement SIM card. Council obtained the SIM card linked to the victim’s phone line and walked to a nearby Apple store where he purchased a new iPhone to use in the crime.  He inserted the SIM card to activate the phone, received the @SECGov X password reset codes on this new phone linked to the victim’s SIM card and used his personal cell phone to take a photo of the @SECgov X account reset code to share with his co-conspirators. After passing along the password reset codes, Council drove to Birmingham, Alabama and immediately returned the iPhone for cash.  

           A member of the conspiracy used the reset code to gain access to the @SECGov X account and issue a fraudulent post in the name of the then-SEC Chairman, falsely announcing SEC approval of Bitcoin (BTC) Exchange Traded Funds (ETFs). The price of BTC increased by more than $1,000 following the post. Shortly after this unauthorized post, the SEC regained control over their X account and confirmed that the announcement was unauthorized and the result of a security breach, which caused the value of BTC decreased by more than $2,000.

            Council also admitted to attempting to perform additional SIM swaps in June 2024 in Alabama. In June 2024, the FBI executed a search warrant at an Athens, Alabama, apartment where he resided. Agents recovered a fake identification card and a portable ID card printer. They also recovered a laptop computer. 

           Pursuant to the search warrant, agents searched the laptop and discovered templates for additional fake identification cards stored on the laptop along with internet searches for “SECGOV hack,” “telegram sim swap,” “how can I know for sure if I am being investigated by the FBI,” “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them,” “what are some signs that the FBI is after you,” “Verizon store list,” “federal identity theft statute,” and “how long does it take to delete telegram account.” 

            Council admitted to receiving approximately $50,000 from members of the conspiracy to perform SIM swap during the previous six months.   

           This case is being investigated by the FBI Washington Field Office Criminal and Cyber Division, the SEC-Office of Inspector General, the U.S. Attorney’s Office for the District of Columbia, and the Computer Crime and Intellectual Property Section (CCIPS) and Fraud Section’s Market Integrity and Major Frauds Unit of the Justice Department’s Criminal Division. Significant assistance was provided by the FBI’s Birmingham Field Office.

          The prosecution is being handled by Assistant United States Attorney Kevin Rosenberg, CCIPS Trial Attorney Ashley Pungello, and Fraud Section Trial Attorney Lauren Archer. Valuable assistance was provided by Assistant United States Attorney John Hundscheid from the Northern District of Alabama.

         For more information on SIM swapping, go to: https://www.ic3.gov/PSA/2024/PSA240411

24cr0457

Source: US FBI

SAN DIEGO – After a weeklong trial, San Diego-based securities attorney Andrew Coldicutt was convicted by a federal jury today on all 17 counts of securities fraud, false securities registration statements, and wire fraud in connection with two pump-and-dump market-manipulation schemes.

The jury deliberated for less than four hours and determined that Coldicutt used his expertise as an experienced securities lawyer to help clients – who were actually undercover FBI agents – create companies, take them public, release false information about the companies, manipulate the stock for a windfall and conceal their affiliation with those companies.

In the first scheme, Coldicutt worked with others from 2017 through 2019 to prepare and execute a pump-and-dump stock fraud scheme. Coldicutt created a business plan for a fake backyard fruit harvesting company. He prepared and filed securities registration statements with the U.S. Securities and Exchange Commission for an initial public offering of the company’s stock. The securities registration statements contained false and misleading information about the company, its business plans, and the people who owned and controlled the company.

In the second scheme, in 2019, one of Coldicutt’s corporate clients needed to raise money fast. Rather than raise money legally, Coldicutt presented the undercover FBI agents with another pump-and-dump stock fraud scheme. Coldicutt wrote a false attorney opinion letter to facilitate the sale of stock for the pump-and-dump scheme.

During the trial, the government presented multiple recordings connecting Coldicutt to the crimes, including inventing the business plan in the middle of a meeting with undercover FBI agents. Coldicutt was also recorded accepting $2,500 in cash as an advance on successfully completing the pump-and-dump scheme. Jurors were also presented with encrypted messages where Coldicutt coordinated the plans for the pump-and-dump with a cooperating source.

According to testimony during the trial, the expected profit of the first pump-and-dump scheme was approximately $4.85 million, and Coldicutt’s share would be about $240,000. Since Coldicutt was actually working with undercover FBI agents and sources gathering evidence against him, no investors were injured.

A “pump and dump” scheme is a type of fraud where manipulators gain control over a company’s stock and boost a company’s stock price by spreading false information or trading in a way that creates fake demand. Once the stock price is inflated, they sell off their shares (the “dump”), causing the price to drop and leaving investors with losses.

“Securities attorneys and other professionals in the securities industry hold a critical position of trust and responsibility,” said Acting U.S. Attorney Andrew R. Haden. “When these individuals misuse their legal credentials to commit fraud, it is innocent investors who often bear the brunt of the harm. Thanks to the diligent work of FBI investigators and our prosecution team, we were able to expose the wrongdoing and deliver justice without any investors suffering financial loss. This outcome reflects the extraordinary efforts of all involved.”

“Andrew Coldicutt engaged in a deliberate, unlawful and years long securities fraud scheme,” said FBI San Diego Special Agent in Charge Stacey Moy. “Attorneys are held to a higher standard of conduct and this case proves when an individual in a position of trust abuses their authority for unjust personal gain, the FBI will hold them accountable.”

The defendant is scheduled to be sentenced on July 11, 2025, before U.S. District Judge Jinsook Ohta.

The Securities and Exchange Commission has also taken civil action against Coldicutt.

DEFENDANT                        Case Number 22cr1881                                       

Andrew Coldicutt                    Age: 44                    San Diego, California

SUMMARY OF CHARGES

Title 15, U.S.C., Sec. 77q, 77x – Securities Fraud

Maximum Penalty: Twenty years in prison

Title 15, U.S.C., Sec. 77g, 77x – False Securities Registration Statements

Maximum Penalty: Twenty years in prison

Title 18, U.S.C., Sec. 1343 – Wire Fraud

Maximum Penalty: Twenty years in prison

INVESTIGATING AGENCY

Federal Bureau of Investigation

Source: US FBI

SAN DIEGO – Federal prosecutors in the Southern District of California filed more than 90 border-related cases this week, including charges of transportation of illegal aliens, bringing in aliens for financial gain, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.

The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

A sample of border-related arrests this week, includes:

• Mexican nationals Eleazar Mozqueda Simental and Manuel Antonio Mozqueda Simental were arrested and charged on March 20, 2025, in connection with a maritime smuggling incident. They were accused of illegally transporting 14 undocumented immigrants from Mexico, Vietnam and China – all of whom were forced to wear large black trash bags over their heads and bodies during the four-hour trip. They were brought into the United States on a panga boat traveling at high speed across rough seas. According to interviews with the undocumented immigrants on the boat, at one point, the panga caught air, broke apart and capsized, sending terrified passengers into the water. The passengers, including a deaf/mute woman, were rescued.
• Mexican national Osvaldo Reyes-Virgen was arrested on March 17, 2025, by San Diego- based U.S. Border Patrol agents and charged after he was found in the United States hiding behind brush near Imperial Beach after agents observed a jet ski traveling north.  Reyes-Virgen was previously deported on March 6, 2025, after entering the United States illegally.
• On March 17, 2025, Sarah Beth Schatz, a United States citizen, was arrested and charged with alien smuggling after she was caught attempting to smuggle two citizens of China into the United States in the trunk of the vehicle she was driving.  The two Chinese citizens she was arrested with admitted that they are citizens of China without lawful documents allowing them to enter the United States and that they were going to pay $30,000 and $15,000 if successfully smuggled into the United States.
• Joshua Nicolas Sanchez Lopez, a Mexican citizen, was arrested on March 15, 2025, when he attempted to cross into the U.S. from Mexico at the Otay Mesa Port of Entry on drug importation charges. According to a federal complaint, he was the driver and registered owner of a vehicle where Customs and Border Protection officials found 108 packages consisting of over 100 pounds of methamphetamine, 22 pounds of fentanyl, and more than four pounds of heroin hidden in the doors, quarters panels, and seats of his vehicle.
• On March 16, 2025, Baudelio Escalante-Orozco, a citizen of Mexico, was arrested after he was found by San Diego-based U.S. Border Patrol Agents attempting to hide in brush seven miles north of the U.S./Mexico International Boundary Line and charged with being a deported alien found in the United States.  He is currently on probation in the District of Oregon for the same crime.   

Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: US FBI

EL CENTRO – Twenty-two alleged members of a sophisticated transnational drug trafficking organization with ties to the Sinaloa-based Beltran Leyva Cartel were indicted by a federal grand jury for importing and distributing more than a ton of methamphetamine, fentanyl and cocaine into the United States, laundering the illicit proceeds, and attempting to export firearms from the United States into Mexico.

In a coordinated takedown this morning in California, Arizona, Iowa, and Colorado, more than 150 federal, state, and local law enforcement officials arrested 10 defendants and executed six search warrants in Imperial County. As of this afternoon, the search continues for 12 fugitives.

Including seizures today and throughout this long-term investigation, authorities have confiscated more than 1,000 kilograms (about 2,204 pounds) of drugs, including methamphetamine, cocaine, and over 750 kilograms (about 1,653 pounds) of fentanyl, 10 firearms, and more than $250,000 in narcotics proceeds.

“We have literally seized a ton of drugs that were destined to hit our streets and harm our community,” said Acting U.S. Attorney Andrew Haden. “By disrupting this prolific, cartel-linked trafficking network, we are preventing the devastation and violence it brings.”

“Today’s enforcement action marks the culmination of a complex, long-term HSI investigation, demonstrating the strong collaboration between federal, state, and local law enforcement agencies nationwide,” said Shawn Gibson, Special Agent in Charge of HSI San Diego. “Our local communities are undoubtedly safer today, and we remain committed to aggressively pursuing criminal organizations that threaten our country.”

“Close coordination and aggressive action amongst allied law enforcement agencies just made communities nationwide safer places to live and work,” said El Centro Border Patrol Sector Chief Patrol Agent Gregory Bovino. “The well executed takedown of this drug trafficking organization heralds a new day in homeland security where we will relentlessly apprehend and prosecute transnational threats.”

According to search warrants, the defendants belonged to a Mexicali, Mexico- and Imperial County-based transnational criminal organization that operated as a distribution cell for the Beltrán Leyva Cartel, specifically associated with Fausto Isidro Meza Flores aka El Chapo Isidro. Using undercover operations and multiple rounds of wiretaps, agents conducted numerous controlled purchases, traffic stops of personal vehicles and tractor trailers, and searches of houses and stash locations leading to large seizures of narcotics.

Additionally, during the fourth round of wiretaps, one of the wiretap targets, an Imperial County-based narcotics subdistributor, was shot multiple times in Mexicali and died several months thereafter. Investigators believe that the subdistributor was lured from the United States to Mexico and shot by a co-conspirator in relation to their drug trafficking and money laundering activities.

According to federal search warrants:

In one instance on January 23, 2023, authorities seized approximately 1.4 million fentanyl pills after intercepting phone conversations about moving fentanyl pills in a semi-truck. Federal agents watched the transaction from afar, then conducted a traffic stop on the drug-laden tractor-trailer. Law enforcement officials located eight duffel bags containing approximately 148.53 kilograms (327.45 pounds) in the trailer of the truck.

In another instance, on May 9, 2023, authorities seized approximately 483,000 fentanyl pills after intercepting phone conversations about moving narcotics in a semi-truck. Law enforcement conducted a traffic stop on the drug-laden tractor-trailer and located bags containing approximately 48.30 kilograms (106.48 pounds) of fentanyl pills in the truck.

Shortly thereafter, on May 25, 2023, authorities seized approximately 480,000 fentanyl pills, 72.29 kilograms of methamphetamine, and a loaded 9mm handgun with a 10-round magazine inserted and a round in the chamber. After intercepting phone conversations about coordinating the movement of narcotics in a semi-truck, federal agents surveilled the narcotics being loaded into the tractor-trailer, then conducted a traffic stop. Law enforcement officials located six duffel bags containing approximately 72.29 kilograms (159.37 pounds) of methamphetamine and 48.6 kilograms (107.14 pounds) of fentanyl in the trailer of the truck.

In another instance, on October 9, 2023, investigators seized approximately 139,000 fentanyl pills and 36.66 kilograms (80.82 pounds) of methamphetamine following federal agents’ surveillance of defendants unloading and transporting the narcotics.

On March 14, 2024, after a traffic stop conducted by a Brawley police officer, law enforcement seized approximately 59.48 kilograms (131.13 pounds) of methamphetamine.

Federal agents also seized firearms and ammunition during the investigation, including two gold plated AR-15 semi-automatic rifles hidden inside a 55-gallon barbeque grill on August 3, 2023, and two rifles, two pistols, approximately 2182 ammunition rounds, and seven magazines destined for Mexicali-based drug traffickers.

Additionally, according to court records, five of the charged defendants are tied to alien smuggling activity, having been either arrested and/or previously prosecuted for immigration-related crimes, such as alien smuggling, accessory after the fact to illegal entry, and selling or offering to sell a Visa.

This case is being prosecuted by Assistant U.S. Attorney Loren G. Renner.

DEFENDANTS                                            

Case Number 24cr2399                               

Irving Alberto Lopez Valdes                                      Age: 36                       Mexicali, Mexico

Raul Salome Valdez-Orduno                                     Age: 46                       Mexicali, Mexico

Case Number 24cr2400

Jesus Damian Lizarraga Sanchez                               Age: 28                       Mexicali, Mexico

Case Number 24cr2434

Elizabeth Millan                                                         Age: 46                       San Diego, California

Brandon Garcia                                                          Age: 27                       Calexico, California

*Seven unnamed defendants are fugitives

Case Number 24cr2431

Roberto Marrufo                                                        Age: 40                        Calexico, California

Case Number 25cr0785

Ricardo Miramontes Nava                                          Age: 35                       Calexico, California

Case Number 25cr0786

Jacob Rodiles                                                              Age: 21                       El Centro, California

Roberto Fernandez                                                     Age: 70                       Calexico, California

Raul Martinez Jimenez                                               Age: 56                       Mexicali, Mexico

Julian Banuelos                                                           Age: 19                       Imperial, California

Alain Alejandro Robles-Murrieta                               Age: 19                       Mexicali, Mexico

*Three unnamed defendants are fugitives

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a) and (b)(1), 846

Maximum penalty: Life in prison with a mandatory minimum of 10 years and a $10 million fine.

Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)

Maximum penalty: Twenty years in prison and a $500,000 fine

Attempted Transfer of a Firearm for Use in a Drug Trafficking Crime – Title 18, U.S.C., Section 1924(h)

Maximum penalty: Fifteen years in prison and a $250,000 fine

INVESTIGATING AGENCIES

Homeland Security Investigations, Calexico – Imperial Valley Border Enforcement Security Taskforce (IV-BEST)

Homeland Security Investigations, Riverside, CA

Homeland Security Investigations, Denver, CO

Homeland Security Investigations, Yuma, AZ

Homeland Security Investigations, Sioux City, IA

United States Border Patrol, El Centro Sector Intelligence Unit

Customs and Border Protection, Calexico Intelligence Division

Imperial County Narcotics Task Force

Drug Enforcement Administration, Imperial County Office

Drug Enforcement Administration, Phoenix Office

Federal Bureau of Investigations, Imperial County Office

United States Immigration and Customs Enforcement, Enforcement and Removal Operations

United States Marshals Service

Calexico Police Department

Imperial County Sheriff’s Office

Imperial County District Attorney’s Office

Brawley Police Department

California Highway Patrol

El Centro Police Department

San Diego-Imperial Valley HIDTA

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (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.

High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.

This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).