Month: May 2022

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Security News: Kissimmee Man Pleads Guilty To Possessing Ricin In Plot To Kill Former Partner

Source: United States Department of Justice News

Orlando, Florida –United States Attorney Roger B. Handberg announces that Kevin Deane Jones (50, Kissimmee) today pleaded guilty to unlawful possession of ricin, a biological toxin, and possessing two firearms as a convicted felon. Jones faces a maximum penalty of 10 years in federal prison on each count.

According to the plea agreement, on December 6, 2021, the FBI received a complaint that Jones had manufactured ricin intending to use it to kill his former partner. Law enforcement officers then learned that Jones had ordered numerous items online to produce ricin, had reportedly tested water guns to see which ones leaked, and had said that he would go on vacation immediately after spraying his former partner in the face with the ricin, so that he would have an alibi when she died.

On December 17, 2021, law enforcement officers learned that Jones intended to travel to out of state to where his former partner lived. Officers stopped Jones, who admitted to manufacturing ricin. Officers located a plastic water gun in Jones’s truck, as well as five tubes filled with liquids that later tested positive for ricin. A search of Jones’s residence revealed additional tubes containing ricin, along with castor beans, documents pertaining to ricin, and approximately 200 rounds of various types of ammunition.

Additional investigation revealed that on December 6, 2021, Jones was questioned by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) regarding his possession of weapons. Following the ATF visit, Jones removed multiple firearms and ammunition and took them to a storage unit rented in his name. Law enforcement officers later searched the storage unit and found a rifle, handgun, silencer, and approximately 3,000 rounds of various types of ammunition. Jones is a previously convicted felon and is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Federal Bureau of Investigation, with assistance from the Osceola County Sheriff’s Office, the Orange County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Jennifer M. Harrington.

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Security News: Cybercriminal Charged with Unauthorized Computer Intrusion, Securities Fraud, Wire Fraud and Other Crimes

Source: United States Department of Justice News

Defendant Allegedly Engaged in a Campaign of Cybercrime Targeting U.S. Victims and Causing More than $5 Million in Losses

A criminal complaint was unsealed today in federal court in Brooklyn charging Idris Dayo Mustapha, a citizen of the United Kingdom, with computer intrusion, securities fraud, money laundering, bank fraud and wire fraud, among other offenses.  The charged crimes stem from a variety of alleged criminal conduct between 2011 and 2018 in which Mustapha gained access to U.S.-based computers, including email servers and computers belonging to U.S. financial institutions, in order to steal money from online bank accounts and securities brokerage accounts.  Mustapha was arrested in the United Kingdom in August 2021 and the United States is seeking his extradition to the Eastern District of New York.

Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

“As alleged in the complaint, the defendant was part of a nefarious group that caused millions of dollars in losses to victims by engaging in a litany of cybercrimes, including widespread hacking, fraud, taking control of victims’ securities brokerage accounts, and trading in the name of the victims,” stated United States Attorney Peace.  “Protecting residents of the Eastern District and financial institutions from cybercriminals is a priority of this Office.” 

“Cyber crimes are insidious because the criminals lurk in places most people don’t see, and many don’t understand. Taking over victims’ email accounts and then stealing millions of dollars are just some of the crimes we allege Mustapha committed over the course of many years. Using digital platforms for banking and investing are now part of our everyday life, and the FBI is focused on making these tools safe from criminals like Mustapha,” stated Assistant Director-in-Charge Driscoll.

As charged in the criminal complaint, starting in 2011, Mustapha and his co-conspirators engaged in a long-running scheme to steal money through a variety of computer intrusions and frauds.

In one part of the scheme, Mustapha and his co-conspirators allegedly obtained login information for victims’ securities brokerage accounts through various methods.  The conspirators then used their access to those accounts to steal money and conduct trades to their own benefit.  Initially, conspirators accessed the victims’ brokerage accounts and transferred money from those accounts to other accounts under their control.  After financial institutions began to block those unauthorized transfers, Mustapha and his co-conspirators accessed other victims’ brokerage accounts and placed unauthorized stock trades within those accounts while simultaneously trading profitably in the same stocks from accounts that they controlled.  For example, on or about April 16, 2016, Mustapha and a co-conspirator exchanged electronic chat messages in discussing this unauthorized trading.  During the exchange, Mustapha’s co-conspirator announced access to the computers of a brokerage firm and questioned whether to engage in unauthorized trading or simply to wire money out of the brokerage account.  Mustapha wrote back: “better to go trade up and down and [] not direct fraud wire.” Additionally, as part of the scheme, Mustapha flew to New York in June 2015 and opened an account at a U.S. financial institution in New Jersey; Mustapha and his co-conspirators later transferred approximately $104,000 from a brokerage account used to conduct unauthorized trading to Mustapha’s U.S. bank account.

In another part of the scheme, Mustapha and his co-conspirators allegedly obtained login information for victims’ email accounts and accessed those accounts without authorization to obtain financial and personal identifying information about their victims.  The conspirators then contacted the victims’ financial institutions—by phone and by email messages —requesting that the victims’ financial institutions wire money from the victims to overseas bank accounts that the conspirators controlled.  For example, in May 2013, Mustapha and his co-conspirators obtained $50,000 from an investment account that belonged to U.S. victims, and Mustapha directed the transfer of those funds to a series of bank accounts controlled by the conspirators.  In April 2013, Mustapha and his co-conspirators attempted to defraud a victim located in the Eastern District of New York by obtaining control over the victims’ email account and using it to send written instructions—which falsely appeared to have been signed by the victim—to transfer $225,000 from one of the victim’s accounts, but the victim’s financial institution rejected the transfer request. 

As a result of these schemes, Mustapha and his co-conspirators realized financial gains while causing losses of more than $5 million to financial institutions, including brokerage firms.

If convicted, the defendant faces up to 20 years’ imprisonment for each of the money laundering and wire and securities fraud charges, and a mandatory consecutive two-year sentence for the charge of aggravated identity theft.

The government’s case is being handled by the Office’s National Security and Cybercrime Section and Business and Securities Fraud Section.  Assistant United States Attorneys David K. Kessler, Alexander F. Mindlin, Sarah M. Evans and Jonathan E. Algor are in charge of the prosecution.  The Justice Department’s Office of International Affairs is also providing substantial assistance. 

The Defendant:

IDRIS DAYO MUSTAPHA
Age:  32
United Kingdom

E.D.N.Y. Docket No. 17-M-367

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Security News: RV Salesman Sentenced to Prison for Tax Evasion

Source: United States Department of Justice News

A former Arkansas resident was sentenced today to 14 months in prison for evading his federal income taxes.

According to court documents and statements made in court, Joshua Wood, formerly of Alma, instructed his employer not to withhold income taxes from his paycheck and then did not file tax returns with the IRS from 2014 through 2016. During those years, Wood earned more than $378,000 selling recreational vehicles and automobiles. When questioned by IRS investigators, Wood falsely claimed to have been shot down and wounded on a Navy mission, causing him to suffer from post-traumatic stress disorder. He also falsely stated that a CPA had prepared tax returns on his behalf.

In addition to the term of imprisonment, U.S. District Judge P.K. Holmes III ordered Wood to serve three years of supervised release and to pay approximately $99,000 in restitution.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney David Clay Fowlkes for the Western District of Arkansas made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorneys Robert Kemins and Nicholas Schilling of the Justice Department’s Tax Division prosecuted the case.

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Defense News: NHHC Proclamation: ‘U.S. Navy Original Six Frigates Day’

Source: United States Navy

The date marks the 225th anniversary of the launch of the first of the U.S. Navy’s original six frigates (United States), which was authorized in the 1794 legislation entitled “An Act to Provide a Naval Armament.”

“The launch of the first six frigates was a significant moment in both U.S. Navy and American History,” said Burns. “It’s important that we mark this 225th anniversary—some of our country’s earliest heroes, achievements, and traditions are part of the six frigates’ story.”

The Original Six Frigates

After the American Revolution, trade with foreign countries was an important part of the new United States’ economic recovery.  In 1794, Congress authorized the creation of a new navy to protect American lives and commerce overseas, specifically in response to Algerine corsairs that captured U.S. merchant vessels and enslaved their crews.

The “Act to Provide a Naval Armament,” signed by President George Washington on March 27, 1794, allowed for the purchase or building of six warships. The decision to build six sailing frigates established the U.S. Navy which defended the vital trade of the American merchant fleet on oceans around the world.

The Naval Armament Act promised the president the new Navy’s first ships of war: United States (launched May 10, 1797), Constellation (1797), Constitution (1797), Congress (1799), Chesapeake (1799), and President (1800).

As the first ships purpose-built for the U.S. Navy, the frigates combined the best of warship ideas and designs of both the British and French navies and the finest structural materials to create larger, heavier ships, carrying more powerful armament.  Intended to out-sail and out-gun opponents, the frigates defended the United States in the country’s first three wars: the Quasi-War with France, the first Barbary War, and the War of 1812. In the War of 1812 United States and Constitution attained fame in their victories against the British Navy.

Of the six frigates, USS Constitution, America’s Ship of State, is the sole survivor.

“When you walk the decks of USS Constitution, you are following some of the U.S. Navy’s greatest captains – Edward Preble, Isaac Hull, William Bainbridge, Thomas McDonough, David Dixon Porter, and George Dewey,” said Margherita M. Desy, a USS Constitution historian with NHHC Detachment Boston. “USS Constitution is our direct link to the beginnings of the U.S. Navy. Commemorating the 225th anniversary of the launchings of the six original frigates provides an opportunity to reexamine and appreciate the contributions and sacrifices of the men, and now women, who have, and continue to, sail the world, keeping sea lanes free for all.”

It is important to remember that even in the age of aviation and space exploration, 95% of the world’s goods still travel by sea. The United States Navy is on duty around the world 365 days a year.

For more information on the U.S. Navy Original Six Frigates, visit the NHHC webpage here: https://www.history.navy.mil/browse-by-topic/ships/original-frigates.html

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Security News: Bennington Man Charged with Unlawful Possession of a Firearm

Source: United States Department of Justice News

The Office of the United States Attorney for the District of Vermont announced that Gavin Wilcox, 31, of Bennington, Vermont was arraigned today on an indictment that alleges Wilcox unlawfully possessed a firearm on March 31, 2022.  At today’s hearing, U.S. Magistrate Judge Kevin J. Doyle ordered Wilcox detained pending trial.

According to court records, Bennington Police Department investigators were attempting to locate a gray sedan on March 31, 2022.  During surveillance at a local business, a detective observed Gavin Wilcox exit a silver Subaru Forester and walk to another grey sedan while carrying a backpack.  The detective knew Wilcox to have an active arrest warrant. When officers apprehended Wilcox, he dropped 11 baggies of suspected heroin from his hand.  A search warrant was obtained for Wilcox’s backpack, during the execution of which detectives located a loaded Smith & Wesson Model 386 .357 magnum Pro Series revolver.  Wilcox’s criminal history includes felony offenses and a misdemeanor conviction for domestic violence which prohibited Wilcox from possessing firearms under federal law.

The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Wilcox remains presumed innocent until and unless he is convicted of a crime. Wilcox faces a maximum sentence of 10 years of imprisonment for unlawfully possessing a firearm.

United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Bennington Police Department and Homeland Security Investigations.  

The prosecutor is Assistant United States Attorney Jonathan Ophardt.  Wilcox is represented by Kevin Henry, Esq. 

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.  See https://www.justice.gov/psn for more information.