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

HAMMOND – Lorraine Duchscher, 50 years old, of Crown Point, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to three counts of wire fraud.

Duchscher was sentenced to 46 months in prison followed by 2 years of supervised release and was ordered to pay $490,958.35 in restitution to the victim of the offense.

According to documents in the case, between March 2017 and December 2019, Duchscher worked as an office manager for a company in Crown Point. In this capacity, she had unsupervised access to the company’s bank account, financial records and payroll information. For almost three years, Duchscher made regular adjustments to her paychecks and gave herself additional pay to which she was not entitled. She also wrote over 100 unauthorized business checks to herself and another employee, which were cashed at local banks and currency exchanges. Over the course of the scheme, Duchscher defrauded the company out of $490,958.35; money she used to fund her lavish lifestyle which included the purchase of airline tickets, rental cars, vacation home rentals, entertainment, and cosmetic procedures, among other things.

This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Jennifer Chang and Steven J. Lupa.

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

CHICAGO — A federal grand jury has indicted a man on sex trafficking charges for allegedly enticing a minor to engage in a commercial sex act in a Chicago suburb.

The two-count federal indictment charges KENNARD CAMERON, 38, of Chicago, with sex trafficking of a minor and conspiracy to engage in sex trafficking of a minor.  According to the indictment, Cameron recruited and enticed the minor to engage in a commercial sex act in Lansing, Ill., on March 17, 2023.

Cameron was arrested last week.  U.S. Magistrate Judge Beth W. Jantz on Wednesday ordered Cameron to remain detained pending trial.

The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorney Jennifer Chang.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. 

Each charge in the indictment is punishable by a maximum sentence of life in federal prison.  The charge of sex trafficking of a minor also includes a mandatory minimum sentence of ten years.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678.  The service is available 24 hours a day, seven days a week.

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

CHICAGO — A federal judge has sentenced a Chicago man to five and a half years in prison for fraudulently obtaining more than $2.9 million in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

From April to November of 2020, QUAMDEEN AMUWO, 41, participated in a scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program.  The EIDL program was intended to provide loan assistance and grants to cover working capital and other operating expenses for legitimate businesses suffering the economic effects of the Covid-19 pandemic.  As part of the scheme, Amuwo submitted to the SBA numerous applications for loans on behalf of businesses that he and others purportedly owned.  The applications contained false statements and misrepresentations concerning the purported entities’ owners, employees, revenues, costs, and dates of establishment.  In support of his applications, Amuwo provided false business registration forms and bogus personal identifying information of the purported owners.

Amuwo led and organized a sophisticated fraud scheme that caused the SBA to disburse at least $2.9 million in EIDL loans and grants into bank accounts that he and others controlled.  He used the money to make cash withdrawals, transfers, and purchases for his personal benefit.

A federal jury in June convicted Amuwo on all twelve wire fraud counts against him.  In addition to the prison sentence, U.S. District Judge Edmond E. Chang on Wednesday ordered Amuwo to pay more than $2.9 million in restitution.

The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  Substantial assistance was provided by the SBA’s Office of Inspector General.  The government was represented by Assistant U.S. Attorneys Heidi Manschreck and Matthew Moyer.

Anyone with information about attempted fraud involving Covid-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud at (866) 720-5721, or by filing a complaint online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

SACRAMENTO, Calif. — Pat Brady, 53, of Lake Forest, pleaded guilty today to murder in aid of racketeering as part of a long-running investigation into the California Aryan Brotherhood prison gang, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. The charges allege that AB members oversaw a significant heroin and methamphetamine trafficking operation from their California prison cells using smuggled cellphones to direct drug trafficking activities, order murders, and oversee other criminal activities inside and outside of the prisons.

According to the plea agreement, on July 28, 2018, Brady murdered an inmate at High Desert Prison as part of an AB-related killing. Brady admitted that he committed the murder because the victim falsely claimed to be an AB member and had run up a significant drug debt at his previous prison — both violations of the AB’s expected codes of conduct. Brady willfully, deliberately, and with premeditation, murdered the victim in order to maintain his status within the gang.

This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case.

U.S. District Judge Kimberly J. Mueller is scheduled to sentence Brady on March 25, 2024. Brady faces a mandatory sentence of life in prison.

Four remaining defendants, Ronald Yandell, Billy Sylvester, Danny Troxell, and Jason Corbett are scheduled for trial in February 2024. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

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

ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Jeremy Isaac Lopez appeared in federal court on a criminal complaint charging him with possession with intent to distribute a mixture and substance containing a detectable amount of methamphetamine. Lopez, 28, will remain in temporary custody pending a detention hearing.

According to the criminal complaint, on April 19, 2023, officers from the Pueblo of Pojoaque Tribal Police Department attempted to detain Lopez at the Cities of Gold Casino in Santa Fe on a arrest warrant for failure to comply with his conditions of release related to a pending state armed robbery charge. Officers observed Lopez inside the casino and followed him outside to his car where he got in the driver’s seat of a car. When officers commanded Lopez to exit the vehicle, Lopez put the vehicle in drive and accelerated forward, smashing into a parked vehicle. Officers contained and disabled the vehicle. Lopez was then removed from the vehicle and placed under arrest.

A search incident to the arrest located approximately 12 grams of suspected methamphetamines, on Lopez’s person as well as an additional 7 grams of suspected Heroin and 53 grams of suspected Fentanyl in the vehicle.

A criminal complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted of the most serious allegation, Lopez faces 20 years in prison.

The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with the assistance of the Pueblo of Pojoaque Tribal Police Department and Espanola Police Department. Assistant U.S. Attorney Robert James Booth II is prosecuting the case.

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24-12

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

ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Dustin Roy Rockmen and Kenzie Roy Rockmen appeared in federal court on an indictment charging them with coercion and enticement of a minor, transfer of obscene material to a minor, sexual abuse of a minor, and sexual abuse. Dustin Roy Rockmen is also charged with the distribution of obscene visual representations of the sexual abuse of a child and possession of child pornography. Dustin Roy Rockmen, 32, of Navajo, New Mexico, and Kenzie Roy Rockmen, 24, of Hunters Point, Arizona, will remain in temporary custody pending a detention hearing.

According to the indictment, between Oct. 16, 2020, and Jan. 10, 2022, Dustin Roy and Kenzie Roy coerced Jane Doe, a minor, into engaging in sexual activity with both men using threats and by placing Jane Doe in fear of her life. Subsequently, Dustin Roy Rockmen transferred and distributed obscene material depicting him engaging in sexual activity with Jane Doe.

An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Dustin Roy Rockmen and Kenzie Roy Rockman face up to life in prison.

The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and the New Mexico Office of the Medical Investigator. Assistant U.S. Attorney Robert James Booth II is prosecuting the case.

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24-11

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

ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Phillip Edward Lahi, Sr. pleaded guilty to abusive sexual contact in Indian Country. Lahi Sr., 72, of Zuni, New Mexico, and an enrolled member of the Pueblo of Zuni, will remain in custody pending sentencing, which has not been scheduled.

According to his plea, sometime between Nov. 1, 2021, and December 1, 2021, Lahi Sr. engaged in abusive sexual contact with a minor while hugging her. The victim, identified as Jane Doe, who is also a member of Zuni Pueblo, was less than twelve years old at the time.  By the terms of the plea agreement, Lahi faces up to 8 years in prison and must register as a sex offender.

The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Brittany DuChaussee is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse.  Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, 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 http://www.justice.gov/psc/.

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24-10

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

Tampa, Florida – United States Attorney Roger B. Handberg announces the culmination of a transnational cybercrime investigation involving the xDedic Marketplace. According to court documents, the xDedic Marketplace was a website on the dark web that illegally sold login credentials (usernames and passwords) to servers located across the world and personally identifiable information—dates of birth and Social Security numbers—of U.S. residents. Once purchased, criminals used these servers to facilitate a wide range of illegal activity that included tax fraud and ransomware attacks. The xDedic administrators practiced exceptional operational security, operating the website across a widely distributed international network, and utilizing cryptocurrency in order to hide the locations of the Marketplace’s underlying servers and the identities of its administrators, sellers, and buyers. In total, xDedic offered more than 700,000 compromised servers for sale, including at least 150,000 in the United States and at least 8,000 in Florida. Marketplace victims spanned the globe and industries, including local, state, and federal government infrastructure, hospitals, 911 and emergency services, call centers, major metropolitan transit authorities, accounting and law firms, pension funds, and universities.

In January 2019, the U.S. Attorney’s Office for the Middle District of Florida (Tampa Division) seized xDedic’s domain names and dismantled the website’s infrastructure, effectively ceasing its operation. The international operation to dismantle and seize this infrastructure was the result of close cooperation with law enforcement authorities in Belgium and Ukraine, the European law enforcement agency Europol, the National High Tech Crime Unit from the Dutch National Police, and the German Bundeskriminalamt.

In the years that followed the takedown of the xDedic Marketplace, the U.S. Attorney’s Office investigated and charged individuals involved in every level of the website’s operation, including its administrators, server sellers, and buyers. For example, Alexandru Habasescu and Pavlo Kharmanskyi were Marketplace administrators. Habasescu, who resided in Chisnau, Moldova, was the lead developer and technical mastermind for the Marketplace, while Kharmanskyi, who lived in Kiev, Ukraine, advertised for the website, paid administrators, and provided customer support to buyers. Habasescu was taken into custody in the Spanish Canary Islands in 2022 and extradited to the United States, while Kharmanskyi was arrested at the Miami International Airport in 2019 as he attempted to enter the United States. Habasescu and Kharmanskyi were sentenced to 41 and 30 months’ imprisonment, respectively.

Marketplace seller Dariy Pankov, a Russian national, was one of the highest sellers on the Marketplace by volume, listing for sale the credentials of more than 35,000 compromised servers located all over the world and obtaining more than $350,000 in illicit proceeds. Pankov’s criminal activities were facilitated by a powerful malicious software program he developed named “NLBrute,” that was capable of compromising protected computers by decrypting login credentials. Pankov was taken into custody in the Republic of Georgia in 2022 and extradited to the United States. He was subsequently sentenced to 60 months in federal prison.

Nigerian national Allen Levinson was a prolific buyer on the Marketplace who held particular interest in purchasing access to U.S.-based Certified Public Accounting firms. He used the information he obtained from those servers to file hundreds of false tax returns with the United States government, requesting more than $60 million in fraudulent tax refunds. Levinson was taken into custody in the United Kingdom in 2020 and extradited to the United States. He was subsequently sentenced to 78 months in federal prison.

Many of the charged defendants are foreign nationals and hold citizenship in countries that do not extradite their nationals, requiring the United States to locate and extradite subjects from countries that do.  As identified in the table below, to date, 17 defendants have been charged and/or extradited to the United States.

Name (Age, Nationality)	Offense of Conviction	Term of Imprisonment
Allen Levinson (31, Nigeria)	Conspiracy to Commit Mail and Wire Fraud	78 months
T’Andre McNeely (33, California)	Conspiracy to Commit Mail and Wire Fraud	78 months
Michael Carr (33, California)	Conspiracy to Commit Mail and Wire Fraud	78 months
Dariy Pankov (29, Russia)	Conspiracy to Commit Access Device and Computer Fraud	60 months
Glib Ivanov-Tolpintsev (29, Ukraine)	Conspiracy to Commit Access Device and Computer Fraud	48 months
Alexandru Habasescu (31, Moldova)	Access Device Fraud	41 months
Adedotun Adejumo (45, Oklahoma)	Conspiracy to Commit Wire Fraud	33 months
Pavlo Kharmanskyi (32, Ukraine)	Access Device Fraud	30 months
Joshua Spencer (29, New York)	Conspiracy to Commit Access Device Fraud	28 months
Ibrahim Jinadu (36, Georgia)	Conspiracy to Commit Wire Fraud	27 months
Brandon Williams (34, California)	Conspiracy to Commit Mail and Wire Fraud	12 months
Harold McKinzie (29, Illinois)	Wire Fraud	5 years’ probation
Bamidele Omotosho (42, Nigeria)	Conspiracy to Commit Wire Fraud	Sentence pending
Olayemi Adafin (38, United Kingdom)	Conspiracy to Commit Wire Fraud	Sentence pending
Olakunle Oyebanjo (29, United Kingdom)	Conspiracy to Commit Wire Fraud	Sentence pending
Akinola Taylor (38, United Kingdom)	Conspiracy to Commit Wire Fraud	Sentence pending
Oluwarotimi Ogunlana (29, Texas)	Conspiracy to Commit Wire Fraud	Sentence pending

In addition to the individuals above, xDedic Marketplace buyers Olufemi Odedeyi (42, United Kingdom) and Oluwaseyi Shodipe (41, United Kingdom) have been charged with conspiracy to commit wire fraud and aggravated identity theft. Both and are pending extradition from the United Kingdom. Shodipe has also been charged with making false claims and theft of government funds. If convicted, Odedeyi and Shodipe each face a maximum penalty of 20 years in federal prison.

These cases were led by the Tampa Division of the Federal Bureau of Investigation and the Tampa Field Office of Internal Revenue Service – Criminal Investigation. Substantial assistance was provided by the IRS-CI Cyber Crimes Unit (Washington, D.C.), the Department of Justice’s Office of International Affairs, and Homeland Security Investigations. This investigation also benefited greatly from cooperation with foreign law enforcement in Belgium, Georgia, Germany, Poland, Spain, the United Kingdom, Romania, Switzerland, Estonia, Latvia, Bulgaria, Ukraine, Lithuania, and Moldova. The cases are being prosecuted by Assistant United States Attorneys Rachel K. Jones, Carlton C. Gammons, and Suzanne Nebesky.