Category: FBI

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

A bank CFO who embezzled more than $800,000 from a small-town bank was sentenced Thursday to nearly three years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.

Vicki Lee Grisham, the 52-year-old former CEO of First State Bank of Abernathy, Texas, pleaded guilty in July to a felony information charging theft, embezzlement, or misapplication bank a bank officer. She was sentenced in Lubbock on Thursday to 33 months in federal prison by U.S. District Judge James Wesley Hendrix, who ordered her to pay $800,755.63 in restitution to the bank’s insurer and to serve five years of supervised release after competing her sentence.

According to court documents, Ms. Grisham was issued a credit card for purchasing business-related items for the bank and was responsible for paying invoices for that credit card.

In March 2023, the bank discovered that she systematically used the credit card for all manner of items and services unrelated to bank business, including vacations, restaurant meals, clothing, college tuition, and even her own personal income taxes. She did not reimburse the bank for any unauthorized charges.

On the day bank management confronted her, Ms. Grisham signed a document admitting she made unauthorized charges for the benefit of herself and her family.

Under the terms of her plea agreement, Ms. Grisham will also be required to consent to an FDIC Order of Prohibition from Further Participation barring any future employment for and participation with any FDIC-insured financial institution.

The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case. 

Source: Federal Bureau of Investigation FBI Crime News (b)

Director Christopher Wray has named Brian Driscoll as the special agent in charge of the Newark Field Office. Mr. Driscoll most recently served as the commander of the FBI’s Hostage Rescue Team (HRT) and Critical Incident Response Group’s (CIRG) Tactical Section chief.

Mr. Driscoll joined the FBI as a special agent in 2007. He was first assigned to the New York Field Office, where he worked organized crime matters and later became a member of SWAT.

In March 2011, Mr. Driscoll was selected as an operator for FBI’s HRT. Ultimately, he became an HRT team leader, responsible for the planning and execution of tactical solutions in furtherance of FBI global operations. He also collaborated with foreign law enforcement and military partners to conduct operations and training, strengthening FBI global partnerships.

In 2019, Mr. Driscoll moved to New York to work in the Long Island Resident Agency as a supervisory special agent to establish and lead two joint task forces concerning violent crimes, child exploitation, and human trafficking.

Mr. Driscoll was transferred to the New York Joint Terrorism Task Force in 2020 to lead the North Africa international terrorism investigations squad. Mr. Driscoll was promoted to serve as the assistant special agent in charge of the NY JTTF’s Extraterritorial Terrorism Branch.

In April of 2022, Mr. Driscoll was promoted to head of HRT and tactical section chief of CIRG.

For his actions under fire on numerous tactical operations, Mr. Driscoll has been awarded the FBI Medal of Valor and the FBI Shield of Bravery.

Prior to his career with the FBI, Mr. Driscoll was a special agent with the Naval Criminal Investigative Service. Mr. Driscoll earned a bachelor’s degree in English from Villanova University and a master’s degree in public policy and international relations from Pepperdine University.

Source: Federal Bureau of Investigation FBI Crime News (b)

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

Source: Federal Bureau of Investigation (FBI) State Crime News

DES MOINES, Iowa – A Des Moines man was sentenced today to 30 years in federal prison for sexual exploitation and attempted sexual exploitation of a child and for possessing child pornography.

According to public court documents and evidence presented in court, in 2005 and again from at least 2013 to 2015, Jeffrey Walter Gray, 62, exploited and attempted to exploit dozens of minors to produce child sexual abuse material on more than one hundred occasions. One of the ways Gray made child pornography was through the photography business he owned and operated in the Des Moines area—Wicked Imagery. Unbeknownst to his photography clients, Gray placed hidden cameras in the dressing areas at Wicked Imagery’s photography studios to capture videos of minor children undressing. Some of the child pornography Gray created depict children as young as approximately seven years old.

To date, investigators have identified over 20 children depicted in Gray’s collection of child sexual abuse material. Many other children are yet to be identified. Gray also collected material containing child sexual abuse material from the internet. In all, Gray amassed a library of over 10,000 files containing child sexual abuse material, some of which depicted children less than twelve years of age.

After completing his term of imprisonment, Gray will be required to serve a seven-year term of supervised release. There is no parole in the federal system. Restitution to the victims will be determined at a later date.

“Child predators like Gray use trust as a weapon for their own depraved goals. This depravity is only outweighed by the strength and courage of the victims involved in this investigation, and the dedication of the law enforcement officers who brought him to justice,” said United States Attorney Richard D. Westphal of the Southern District of Iowa. “Sexual predators like Gray must and will face accountability and harsh sentences for these crimes of exploitation.”

“Identifying, investigating, and apprehending child predators is one of the FBI’s highest priorities. Today’s sentence ensures that Gray will be held accountable for his horrendous actions,” said Eugene Kowel, Special Agent in Charge of the Omaha FBI Field Office. “We are proud of the work of our agents and task force officers in this case. We will remain vigilant in our pursuit of justice in cases like these, ensuring children are protected and perpetrators are brought to justice by partnering with federal, state, and local law enforcement, serving victims and their families, and providing education and conducting outreach in our community.”

The case was investigated by the Federal Bureau of Investigation and the Des Moines Police Department, with assistance from the Iowa Department of Public Safety-Division of Criminal Investigations.

The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Source: Federal Bureau of Investigation (FBI) State Crime News

A man who attempted to entice a minor to engage in sex acts was sentenced today to 210 months in federal prison.

Cory Gall, age 30, of Marion, Iowa, received the sentence after a July 3, 2024, jury verdict finding him guilty of attempted enticement of a minor.  The evidence at trial showed that, in December 2023, Gall exchanged text messages with a person who stated that she was 13 years old.  The person was actually an undercover law enforcement officer.  Gall sent messages describing sex acts he could perform with the minor, and he traveled to Hiawatha, Iowa, to meet with her.

Gall was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams.  Gall was sentenced to 210 months’ imprisonment.  He must also serve a five-year term of supervised release after the prison term.  There is no parole in the federal system.   

This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations, the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, and the Hiawatha Police Department.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is CR 24-32.

Follow us on Twitter @USAO_NDIA.

Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

Richland, Washington – U.S. Attorney Vanessa Waldref announced that on November 7, 2024, a federal grand jury for the Eastern District of Washington returned an indictment charging Francier Obando Pinillo, age 51, of Miami, Florida, with 26 counts of fraud in connection with running a cryptocurrency scam that defrauded investors of millions of dollars between November 2021 and October 2023. Pinillo was arraigned today at the U.S. District Court in Richland, Washington.

Pinillo was pastor at Ministerio Apostolico Profetico Tiempos de Poder, a Spanish-language church in Pasco, Washington. The Indictment alleges Pinillo used his position as pastor to induce members of his congregation and others to invest their money in a cryptocurrency investment business known as “Solano Fi.” Pinillo claimed the idea for Solano Fi had come to him in a dream and that it was a safe and guaranteed investment. The Indictment further alleges that Pinillo also recruited investors using social media, including a Solano Fi Facebook page as well as a Telegram group known as “Multimillionarios SolanoFi”, which had more than 1,500 members. The Indictment further alleges Pinillo told prospective investors that Solano Fi used cryptocurrency “staking” to guarantee a compounding monthly return of 34.9% with no risk. Pinillo explained that investors could access, view, and withdraw their money from Solano Fi through an online interface. However, as alleged in the indictment, the online application was actually designed to allow investors to see fraudulent purported balances and supposed investment gains but did not permit the investors to withdraw funds.

The indictment further alleges that, rather than investing funds on victims’ behalf as he had promised, Pinillo defrauded victims into making cryptocurrency transfers into accounts he designated, then converted the victims’ funds to himself and his co-schemers. Additionally, the indictment alleges that Pinillo convinced investors to recruit other investors, promising that the person who made the referral could earn additional returns for each additional investor they recruited.

The indictment alleges when victims tried to remove their assets from Solano Fi, Pinillo claimed he could not return the assets until cryptocurrency markets improved, or because the website or application was down, or that he would not return their investment unless the victim brought in a new investor to “buy out” their account. The indictment further alleges Pinillo told investors they were required to send more money to “repair” and upgrade the Solano Fi system so that investors could get their funds back.

“Fraudulent investment schemes are not new, but cryptocurrency scams are a new way fraudsters take money from hardworking, honest people,” said U.S. Attorney Waldref. “Cryptocurrency fraudsters often quickly route funds to international accounts, which presents new challenges for law enforcement attempting to recover lost funds. My office and our partners at the FBI are committed to doing all we can to recover the proceeds of these frauds for victims and to hold the people running these scams accountable.”

The fraud charges against Pinillo carry a maximum sentence of up to 20 years in prison.

This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorneys Dan Fruchter and Jeremy J. Kelley.

4:24-cr-06032-SAB

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

Source: Federal Bureau of Investigation (FBI) State Crime News

Jackson, Miss. – Choctaw Police Department Officers Robert York and Jakob Waiter along with Neshoba County Deputy Mark Flake are the newest additions to the Mississippi Safe Trails Task Force (STTF).  Robert A. Eikhoff, Special Agent in Charge of the Jackson Mississippi Field Office, administered the oath and stated, ““The implementation of the Mississippi Safe Trails Task Force ensures the FBI and partnering agencies work together to protect members of the Mississippi Band of Choctaw Indians and investigate criminal activity with a federal nexus in and around the Reservation Communities in Mississippi. The Task Force is dedicated in keeping our tribal communities safe by working along-side our partners, training together, and offering resources.”
 

The FBI Safe Trails Task Force is a collaborative effort between the FBI and other law enforcement agencies to combat violent crime and drug trafficking in Indian Country. The STTF works with a variety of partners, including DEA, ATF, tribal, state, and local law enforcement.  The STTF has been a key part of the FBI’s partnerships in Indian Country for almost 30 years.  
 

In December of 2022, the FBI field office in Jackson gained approval to establish the Mississippi STTF.  In addition to the Choctaw Police Department and the Neshoba County Sheriff’s Department, Mississippi’s STTF is comprised of officers from Leake County Sheriff’s Department, the City of Carthage Police Department, and the Jones County Sheriff’s Department.
“The Department of Justice has been working hard to strengthen law enforcement cooperation with the Mississippi Band of Choctaw Indians and other law enforcement partners in order to better address violent crime, the fentanyl crisis, and other public safety issues in Tribal communities,” said U.S. Attorney Todd Gee of the Southern District of Mississippi.

Source: Federal Bureau of Investigation (FBI) State Crime News

ATLANTA – Kimberly Johnson has pleaded guilty for her role in a mortgage fraud scheme spanning more than three years and resulting in the approval of approximately 450 mortgage loans based on fabricated documents and false information. Many of the loans are insured by the Federal Housing Administration (FHA), resulting in claims being paid for mortgages that have defaulted.

“The defendant and her co-conspirators brazenly manipulated the real estate lending process out of sheer greed,” said U.S. Attorney Ryan Buchanan. “Criminals like Johnson, who engage in mortgage fraud, threaten the soundness of the real estate market in our communities. Our office is committed to prosecuting these bad actors who abuse the system for their personal gain and to safeguard the mortgage lending system for those who rely on this financial support.”

“Kimberly Johnson engaged in a massive mortgage fraud scheme, fabricating material documents on over 450 loans to falsely qualify individuals for loans they would not have otherwise qualified for,” said Special Agent-in-Charge Jerome Winkle with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG).  “When individuals commit fraud against federally funded programs, it creates significant risks to the programs and limits the financial resources available to assist hard working individuals realize the American dream of homeownership. HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”

“Ms. Johnson’s guilty plea is the result of our commitment to hold anyone who exploits the mortgage lending system for personal gain fully accountable,” said Edwin S. Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region. “This case highlights the importance of collaboration between our law enforcement partners to protect the integrity of the housing market and prevent fraud that undermines public trust.”

“The defendant in this case pleaded guilty for her role in altering and fabricating supporting documents in fraudulent mortgage loan applications, as part of a scheme that resulted in the approval of approximately 450 mortgage loans,” said Kyle A. Myles, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), Atlanta Region. “The FDIC OIG remains committed to working with our law enforcement colleagues to investigate those who commit fraudulent acts and threaten to undermine the safety and soundness of our nation’s financial system.”

“The FBI will vigorously investigate criminal offenses that impact the integrity of the residential mortgage market. In this case, Johnson had the duty to conduct business honestly but instead chose to engage in mortgage fraud, securing mortgages for individuals who otherwise would not have qualified for one,” said Sean Burke, Acting Special Agent in Charge of FBI Atlanta. “We are proud to have worked with our law enforcement partners and the U.S. Attorney’s Office in the effort to prosecute anyone who engages in this type of misconduct.”

According to U.S. Attorney Buchanan, the charges and other information presented in court: Kimberly Johnson participated in a conspiracy in which homebuyers and mortgage brokers submitted fraudulent loan applications to induce mortgage lenders to fund mortgages. Johnson’s role in the scheme was to alter or fabricate the supporting documents for the loans, including bank statements, pay stubs and Forms W-2. Over the course of more than three years, Johnson helped approximately 450 homebuyers to commit mortgage fraud by obtaining loans for which they were unqualified. The fraudulent loan applications were submitted to numerous mortgage lenders, and some of the mortgage brokers who worked on obtaining the loans were part of the conspiracy. These fraudulent loans totaled approximately $161 million. Many of those loans have already defaulted.

Kimberly Johnson, 55, of Hampton, Georgia, pleaded guilty to one count of conspiracy to defraud the United States in a mortgage fraud scheme and, as part of her plea, has agreed to pay restitution to the victims of the conspiracy, including the U.S. Department of Housing and Urban Development, which insures many of the residential mortgages in the United States. Johnson is scheduled to be sentenced on April 11, 2025, before U.S. District Judge Sarah E. Geraghty.

This case is being investigated by the U.S. Department of Housing and Urban Development Office of Inspector General, the Federal Housing Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General and the Federal Bureau of Investigation.

Assistant U.S. Attorney Alison Prout is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

Source: Federal Bureau of Investigation (FBI) State Crime News

ST. LOUIS – The 25th patient of a Jefferson County, Missouri chiropractic office involved in a multi-million dollar disability fraud conspiracy was sentenced Wednesday as part of an ongoing fraud investigation. Six more patients are set for sentencing next year.

U.S. District Judge Stephen R. Clark sentenced Donald Furrer, 67, to one year of probation. Prior to sentencing, Furrer repaid just under $462,000 that he received from the Social Security Administration’s Disability Trust Fund and private disability benefit insurance providers by falsely claiming to be disabled.

The two chiropractors who owned and operated PowerMed Inc., Thomas G. Hobbs and Vivian Carbone-Hobbs, are in federal prison, serving four-year prison terms. Hobbs was ordered to repay $4.3 million; Carbone-Hobbs was ordered to repay $16.4 million.

One employee, Christina Barrera, was sentenced to 14 months in prison. Another, Clarissa Pogue, was sentenced to five years of probation, including six months of house arrest.

Many patients worked at Anheuser-Busch. Some are spouses of other defendants. They have been sentenced in a range from one year of probation to the 15 month term of imprisonment imposed on patient Elizabeth Guetersloh. All were ordered to repay the money they reaped via fraud, ranging from $47,087 to more than $470,000.

James Ralston was sentenced to five years of probation and ordered to repay more than $2.1 million. He was a former Anheuser-Busch union steward who referred his former co-workers and coached them as they falsified their disability applications.

Hobbs charged patients fees of thousands of dollars to prepare disability forms and coach them on how to lie about their ability to perform basic daily tasks such as lifting, standing, walking, sitting and taking care of their personal needs. According to evidence and testimony presented at the trials of Carbone-Hobbs, Barrera, Pogue, and Guetersloh, some patients were presented with a “Disability Package Pricing” sheet that listed the fees ranging as high as $8,600 for PowerMed to handle various disability claims options, including qualifying for Social Security disability, short-term disability, private insurance and insurance that would pay off auto or other loans. The total fees exceeded more than $13,000 for some patients.

Hobbs, who also falsely claimed to have a medical license, submitted fraudulent medical reports to support patient claims. He and Carbone-Hobbs also submitted fraudulent claims for reimbursement to health care benefit programs for medical services that were used to bolster those claims.

Although PowerMed patients claimed to be disabled and unable to work or do many of the basic functions of life, they travelled nationally and internationally, danced, hiked or rode roller coasters. Some bought new homes or second homes with the money.

“This investigation is ongoing, but has already resulted in convictions of 31 people, as well as the recovery of more than $6 million that will go to the Social Security Administration and the private insurers who were defrauded,” said U.S. Attorney Sayler A. Fleming. “This outcome would not have been possible without the dogged work by investigators.”

“Social Security disability benefits are intended for persons who are unable to work because they have a medical condition. Donald Furrer made false statements and misrepresentations to SSA to fraudulently receive disability benefit payments from SSA totaling more than $317,000. This sentence holds him accountable for his criminal behavior,” said Jason Albers, Special Agent in Charge, Social Security Administration Office of the Inspector, Dallas Kansas City Field Division. “In this comprehensive investigation and complex prosecution of this case, involving multiple subjects and agencies, investigators and prosecutors have done exemplary work. I commend them all for their diligent efforts in this years-long process to bring forth justice.”

“When unscrupulous individuals lie to obtain disability benefits, they are taking away resources from those who truly need it,” said FBI Acting Special Agent in Charge Greg Heeb. “I commend our agents and the prosecutors who successfully unraveled such a large conspiracy to recover millions of dollars defrauded from taxpayers who fund this critical program.”

The cases were investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation.  Assistant U.S. Attorneys Tracy Berry, Dorothy McMurtry, Diane Klocke and Gwendolyn Carroll have prosecuted the cases.

Anyone who suspects fraud involving the Disability Insurance Benefit Program should contact the Social Security Administration Office of Inspector General Hotline at: 1-800-269-0271 or https://oig.ssa.gov/report/.