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Source: US FBI

A federal judge in Phoenix today sentenced the three owners of Backpage, a prostitution website, for offenses arising from their promotion of and associated money laundering.

Michael Lacey, 76, of Paradise Valley, Arizona, was sentenced to five years in prison and three years of supervised release; Scott Spear, 73, of Phoenix, was sentenced to 10 years in prison and three years of supervised release; and John “Jed” Brunst, 72, of Phoenix, was sentenced to 10 years in prison and three years of supervised release. The Court also ordered that all defendants turn themselves in to the U.S. Marshals Service by noon on Sept. 11.

“The defendants and their conspirators obtained more than $500 million from operating an online forum that facilitated the sexual exploitation of countless victims,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendants thought they could hide their illicit proceeds by laundering the funds through shell companies in foreign countries. But they were wrong. Their sentences should serve as a stark reminder that the Criminal Division and its law enforcement partners are committed to protecting victims and following the money to unmask those who exploit human beings for financial gain.”

“These convictions hold accountable three C-Suite executives who controlled an enterprise and its illicit profits,” said U.S. Attorney Gary Restaino for the District of Arizona. “The courage of the victims of Backpage’s criminal activities is vindicated by the sentences imposed by the Court, to include the loss of liberty for each defendant as well as the additional large fine imposed on defendant Lacey, which will inure to the benefit of the Crime Victims Fund and crime victims everywhere.”

According to court documents and evidence presented at trial, Lacey, Spear, and Brunst owned Backpage. From September 2010 through its seizure by the United States in April 2018, Backpage was the internet’s leading forum for prostitution ads. Evidence at trial showed that the conspirators knowingly promoted prostitution via various marketing strategies. For example, the conspirators engaged in a reciprocal link program with an independent web forum that permitted “johns” to post reviews of prostitution acts with specific women. Additionally, the conspirators used an automated filter and human moderators to remove terms known to indicate sex-for-money, while still allowing the ads to be posted. Through this attempt to sanitize the ads, the conspirators sought “plausible deniability” for what the conspirators knew to be ads promoting prostitution. Over the life of the conspiracy, the conspirators earned more than $500 million. In an effort to preserve the money earned, Lacey, Spear, and Brunst laundered the money through numerous shell companies they created in multiple foreign countries.

In November 2023, a federal jury in Phoenix convicted Lacey of one count of international concealment money laundering; Spear of conspiracy to violate the Travel Act, 17 counts of violating the Travel Act, money laundering conspiracy, and 10 counts of concealment money laundering; and Brunst of conspiracy to violate the Travel Act, money laundering conspiracy, 10 counts of concealment money laundering, and five counts of international promotional money laundering.

Today’s sentences follow prior convictions of Backpage leadership and corporate entities:

• In April 2018, Carl Ferrer, 57, of Frisco, Texas, who was Backpage’s co-founder and CEO, pleaded guilty to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce and to engage in money laundering.
• In August 2018, Dan Hyer, 54, of Dallas, who was Backpage’s Sales & Marketing Director, pleaded guilty to conspiracy to facilitate prostitution using a facility in interstate or foreign commerce.
• In April 2018, several Backpage-related corporate entities, including Backpage LLC, pleaded guilty to conspiracy to engage in money laundering.

Co-conspirator James Larkin, 73, died on July 31, 2023, before trial began.

Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Gary M. Restaino for the District of Arizona, Special Agent in Charge Carissa Messick of the IRS Criminal Investigation (CI) Phoenix Field Office, Acting Assistant Director Jodi Cohen of the FBI’s Criminal Investigative Division, Special Agent in Charge Jose A. Perez of the FBI Phoenix Division, and Acting Inspector in Charge Matthew Shields of the U.S. Postal Inspection Service (USPIS) Los Angeles Division made the announcement.

Assistant U.S. Attorneys Kevin Rapp, Margaret Perlmeter, and Peter Kozinets for the District of Arizona and Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case, with significant assistance from the U.S. Attorney’s Office for the Central District of California, Office of the California Attorney General, and Office of the Texas Attorney General. Assistant U.S. Attorney Joseph Bozdech for the District of Arizona is handling the asset forfeiture aspects of the case.

Source: US FBI

TUCSON, Ariz. – On August 14, 2024, a federal grand jury in Tucson returned an 11-count indictment against Daniel Jarrett Ridlinghafer, 37, of Marana for Bank Fraud, Wire Fraud, and Mail Fraud.

The indictment alleges that Ridlinghafer owned and operated Psalm 112 LLC, d.b.a. Tucson Solar Pros, a solar installation company based in Tucson. Beginning in January 2021 and continuing through July 7, 2022, Ridlinghafer engaged in a scheme to defraud at least 25 homeowners and two federally insured credit unions. Ridlinghafer, or his employees, signed fraudulent contracts with victim homeowners for the purchase and installation of solar power electrical systems on the victims’ homes. The victim credit unions then funded loans for many of the projects based on those contracts. After receiving payment from the victim homeowners and credit unions, Ridlinghafer abandoned the projects, failed to provide the victim homeowners any of the equipment they had purchased, and did not install any solar equipment on their homes. Ridlinghafer allegedly defrauded the victim homeowners and credit unions out of at least $695,000.00.

A conviction for Bank Fraud carries a maximum penalty of 30 years in prison and a $1,000,000.00 fine. A conviction for Mail Fraud and Wire Fraud carries a maximum penalty of 20 years in prison and a $250,000.00 fine.

An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
 

CASE NUMBER:           CR-2024-05232 TUC-RM
RELEASE NUMBER:    2024-115_Ridlinghafer

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

Source: US FBI

Director Christopher Wray has named Jose A. Perez as the special agent in charge of the Phoenix Field Office. Mr. Perez most recently served as a deputy assistant director within the Criminal Investigative Division at FBI Headquarters in Washington, D.C.

Mr. Perez joined the FBI as a special agent in 2003 and was assigned to the Jackson Field Office, where he conducted violent crimes and gang investigations under the Jackson Safe Streets Gang Task Force.

In 2006, Mr. Perez transferred to the Miami Field Office, where he worked on investigations into gangs and drug trafficking organizations. In 2013, Mr. Perez was promoted to supervisory special agent within the Criminal Investigative Division at FBI Headquarters, where he managed organized crime operations in South and Central America.

In 2016, Mr. Perez was assigned to the Las Vegas Division, where he led the Violent Crimes Against Children and Human Trafficking Squad. In 2017, Mr. Perez assumed leadership of the Violent Crimes Task Forces. In this role, Mr. Perez led the team through several successful gang and Hobbs Act investigations, as well the nomination and eventual capture of a Top Ten Fugitive. In 2018, Mr. Perez led the Las Vegas Joint Terrorism Task Force.

In 2019, Mr. Perez was promoted to assistant special agent in charge in the Dallas Field Office, where he oversaw the FBI Resident Agencies located in North Texas. In 2021, Mr. Perez was promoted to section chief over the Violent Crime Section of the Criminal Investigative Division.

Mr. Perez holds a bachelor of science degree in criminal justice from Florida International University. Prior to joining the FBI, Mr. Perez served as a U.S. Pretrial Services and Probation Officer.

Source: US FBI

ANCHORAGE, Alaska – An Anchorage Police Department officer was convicted of 24 criminal counts today for his participation in a scheme to defraud a corporation of millions of dollars.

According to court documents and evidence presented at trial, Nathan Michael Keays, 44, was friends with a ConocoPhillips employee, Forrest Wright, 44. The two conspired to use Keays’s foam insulation business, Eco Edge Armoring LLC, to defraud ConocoPhillips by approving contracts for goods and services that were never provided. Over the course of the scheme, Keays and Wright obtained more than $3 million from fraudulent bills. Wright pleaded guilty in March 2021 and is scheduled to be sentenced in May 2024.

The scheme started in 2019 when Wright was a Senior Drilling and Wells Planner with ConocoPhillips, where he was responsible for ordering materials and labor for drilling and wells projects. Wright had the authority to approve material and labor orders for up to $1 million and was trusted to recommend vendors for supplies.

Keays conspired with Wright to craft fraudulent emails and alter the Eco Edge Armoring LLC website to present the company as a major oil and gas services enterprise, when in fact, it had no employees and no ability to provide goods or services in the oil industry. Wright sent emails from his personal account to Keays’s personal account with instructions to send technical emails to Wright’s business account to establish Eco Edge Armoring LLC as an approved vendor. Wright would then forward these emails to other personnel within ConocoPhillips to ensure Keays’s company was approved as a frequently used vendor.

After achieving the approved vendor status, Keays submitted fraudulent invoices totaling over $3.2 million for materials that did not exist and labor that was never performed. Keays also submitted fraudulent timesheets in the name of nonexistent employees to make it appear that work had actually been performed. Wright used his position in the company to direct personnel to approve the payment of invoices by falsely representing that the nonexistent materials were delivered and accounted for and that the work outlined in the invoices was performed.

Keays received $3,087,720 in electronic payments from ConocoPhillips for the fraudulent material and labor through a bank account for Eco Edge Armoring LLC and split the proceeds with Wright by issuing checks to Spectrum Consulting, a shell entity created by Wright. In total, Keays personally received more than $1.4 million. Keays used his proceeds of the scheme for personal expenses, including paying off loans, purchasing real estate and buying cryptocurrency.  

Keays was convicted of one count of conspiracy to commit wire fraud, 11 counts of wire fraud, one count of conspiracy to commit money laundering and 11 counts of money laundering.

“This successful conviction represents closure in a complex white-collar crime case and demonstrates that no one is above the law,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “To anyone thinking of committing a financial crime, know that my office, in collaboration with our law enforcement partners across the state, will work vigorously to find you and prosecute you to the furthest extent of the law.”

“This verdict demonstrates the FBI’s commitment to investigate and hold accountable those who engage in fraudulent schemes for personal gain,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “With special agents, forensic accountants, and prosecutors who specialize in unraveling complex financial crimes, the FBI and our partners will continue to disrupt fraudsters and bring them to justice.”

The FBI Anchorage Field Office investigated the case.

Assistant U.S. Attorneys Michael Heyman and James Klugman are prosecuting the case.

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Source: US FBI

STATESBORO, GA:  A man serving a life term in a Georgia state prison has been indicted on multiple federal charges for constructing and mailing bombs to federal facilities.

David Cassady, 55, an inmate at Phillips State Prison in Buford, Ga., is charged with Making an Unregistered Destructive Device; two counts of Mailing a Destructive Device; and two counts of Attempted Malicious Use of an Explosive, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia.

There is no parole in the federal system.

“Protecting our personnel and facilities is a fundamental role of our office and of our law enforcement partners,” said U.S. Attorney Steinberg. “We also will take action against inmates who seek to commit crimes and harm the public from behind bars.”

As described in the indictment returned by the April session of the Grand Jury in the Southern District of Georgia, Cassady was an inmate in the now-closed Georgia State Prison in Reidsville, Ga., in Tattnall County, when he constructed destructive devices and mailed two of them via U.S. Mail to the United States Courthouse and Federal Building in Anchorage, Alaska, and to a federal facility at 1400 New York Avenue NW in Washington, D.C.

The indictment alleges the bombs were sent in an attempt “to maliciously damage or destroy, by means of fire or explosive, a building in whole or in part owned or possessed by, or leased to, the United States,” and “created substantial risk of injury to a person.”

Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.

The case is being investigated by the U.S. Postal Inspection Service, the U.S. Marshals Service, the FBI Anchorage Office, Homeland Security Investigations Federal Protective Service, the Georgia Bureau of Investigation, and the Georgia Department of Corrections Office of Professional Standards, and Prosecuted for the United States of America by Southern District of Georgia Assistant U.S. Attorney L. Alexander Hamner.

Source: US FBI

Director Christopher Wray has named Rebecca A. Day as the special agent in charge of the Anchorage Field Office in Alaska. Ms. Day most recently served as a section chief in the Critical Incident Response Group at FBI Headquarters in Washington, D.C.

Ms. Day joined the FBI as a special agent in 2006 and was assigned to the Las Vegas Field Office, where she investigated organized crime and drug matters and served on the Evidence Response Team. In 2009, she transferred to the Fort Worth Resident Agency of the Dallas Field Office, where she investigated public corruption and civil rights violations.

In 2012, Ms. Day was promoted to a supervisory special agent in the Terrorist Financing Operations Section of the Counterterrorism Division at Headquarters, serving as a program manager. After returning briefly to Fort Worth, Ms. Day was selected in 2014 to serve as a field supervisor in the Tulsa Resident Agency of the Oklahoma City Field Office. In Tulsa, she oversaw all national security threats, including counterterrorism, counterintelligence, weapons of mass destruction, and cyber. She also served as the program coordinator of the Domestic Terrorism Program for the Oklahoma City Field Office.

Ms. Day was promoted in 2020 to assistant special agent in charge of the Oklahoma City Field Office’s Criminal Branch. She managed the response after a U.S. Supreme Court decision reaffirmed reservation land, expanding the FBI’s investigative and jurisdictional responsibilities related to Indian Country. Ms. Day also served as the SWAT commander and led the Crisis Negotiation Team and Operational Medical Program.

In 2022, Ms. Day was promoted to section chief of the Investigative and Operations Support Section in the Critical Incident Response Group at Headquarters, leading the Behavioral Analysis, Intelligence, and Security and Facilities units.

Ms. Day earned a Bachelor of Science in finance from East Central University in Oklahoma. Prior to joining the FBI, she worked as an accountant in the energy sector.

Source: US FBI

Source: US FBI

ANCHORAGE, Alaska – A Fairbanks man was sentenced today to 25 years in prison for coercing two minors to engage in sexually explicit conduct.

According to court documents, in September 2022, Leveron Moore, 40, enticed two minors, aged 15 and 16 at the time, for the purpose of coercive sexual exploitation.

Moore also used his cell phone to produce, attempt to produce and possess photos of sexually explicit conduct involving both minor victims and used an application on his phone to hide the images from law enforcement.

One of the minor victims reported the abuse to a local health official, and Moore was arrested by the FBI in March 2023. Moore had previously been separated from the U.S. Army while stationed at Fort Wainwright in lieu of a court martial after having been charged with the attempted sexual assault of an 18-year-old subordinate in 2016.

The defendant is required to serve 20 years’ supervised release as part of his sentence.

“Mr. Moore deliberately targeted two of Alaska’s most vulnerable community members and will now pay the price for his destructive actions,” said U.S. Attorney S. Lane Tucker of the District of Alaska. “We commend the tremendous bravery of both victims for disclosing Mr. Moore’s heinous conduct to officials. My office stands by our firm commitment to work with our law enforcement partners to investigate and prosecute any instance of child exploitation.”

“Mr. Moore deliberately exploited and abused minors, the most vulnerable members of our community,” said Acting Special Agent in Charge Kevin Vorndran of the FBI Anchorage Field Office. “The FBI will continue to work collaboratively with law enforcement partners and service providers to seek justice for these horrific crimes against children.”

The FBI Anchorage Field Office, with assistance from the Alaska State Troopers and the Fairbanks Police Department, investigated the case.

Assistant U.S. Attorney Adam Alexander prosecuted the case.

This case was brought 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 https://www.justice.gov/psc.

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Source: US FBI

ANCHORAGE, Alaska – An Anchorage woman was sentenced today to 30 years in prison for her role in a conspiracy to produce child sexual abuse materials.

According to court documents, Denali Brehmer, 22, and her co-conspirator Darin Schilmiller, 25, conspired to murder Cynthia Hoffman in June 2019 while Schilmiller was residing in Indiana. While they were conspiring to commit Hoffman’s murder, they also conspired to coerce a minor victim to produce sexually explicit images, which Brehmer took and sent to Schilmiller via text message.

Brehmer and Schilmiller pleaded guilty to production of child pornography in front of the U.S. District Court in July 2023. Schilmiller is awaiting sentencing. Both defendants were sentenced by the State of Alaska to 99 years in prison for their roles in Hoffman’s murder.

In delivering the sentence, the court ordered Brehmer to serve a maximum sentence of 30 years in prison and the rest of her life on supervised release.

“The harm Ms. Brehmer has caused to the victims and their families through the course of her conduct is unfathomable,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “My office will continue our unwavering commitment to work with our law enforcement partners to protect Alaska’s children and seek justice against perpetrators who choose to commit these reprehensible crimes.”

“This sentencing underscores the unrelenting efforts by law enforcement and prosecutors, at every level, to ensure that none of Brehmer’s ruthless crimes went unanswered or unpunished,” said Acting Special Agent in Charge Kevin Vorndran of the FBI Anchorage Field Office. “The FBI and our law enforcement partners will continue to use every tool available to identify, investigate, and hold accountable those who exploit and harm our most vulnerable.”

“Denali Brehmer’s actions are beyond heinous,” said Anchorage Police Chief Michael Kerle.  “Overcoming the trauma the victim suffered due to Brehmer’s actions will be a life-long journey.  This case is an excellent example of why various law enforcement entities working together through the FBI’s Child Exploitation and Human Trafficking Task Force is so vitally important.  Hopefully today’s sentencing will aid the victim in their healing process.”

The FBI Anchorage Field Office and Anchorage Police Department investigated the case as part of the FBI’s Child Exploitation and Human Trafficking Task Force.

Assistant U.S. Attorney Adam Alexander prosecuted the case.

This case was brought 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 https://www.justice.gov/psc.

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Source: US FBI

ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment charging an Anchorage man with being a felon in possession of firearms and ammunition.

Court documents allege that on Sept. 7, 2023, Christopher Nickalaskey, 32, possessed multiple firearms and ammunition.

According to court documents and a press release from the Anchorage Police Department, on Oct. 1, 2023, Nickalaskey possessed a firearm during an encounter with police. The release alleges Nickalaskey was contacted by police and began to fight officers. During the altercation, Nickalaskey allegedly reached for a gun in his waistband and pulled the trigger, striking himself and an officer in the lower body.

At the time of both alleged events, Nickalaskey was a convicted felon. Nickalaskey was convicted of a drug crime in the Anchorage Superior Court in 2014 and of being a felon in possession of a firearm in the U.S. District Court for the District of Alaska in 2021.

Nickalaskey is charged with two counts of felon in possession of firearms and ammunition. The defendant will make his initial court appearance on a later date before a U.S. Magistrate Judge of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 15 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 S. Lane Tucker of the District of Alaska, Acting Special Agent in Charge Kevin Vorndran of the FBI Anchorage Field Office and Chief Michael Kerle of the Anchorage Police Department made the announcement.

The FBI Anchorage Field Office and Anchorage Police Department are investigating the case.

Assistant U.S. Attorney Jennifer Ivers is prosecuting the case.

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

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