Author: MIL-OSI Publisher

Source: United States Department of Justice Criminal Division

Abdi Yusef Hassan, 56, of Minneapolis, Minnesota, and Mohamed Tahlil Mohamed, 43, of Mogadishu, Somalia, were both sentenced to 30 years in prison for hostage taking, terrorism, and firearms offenses, in connection with the 977-day hostage taking of an American journalist in Somalia. A jury in the Eastern District of New York convicted Hassan and Mohamed of those offenses in February 2023 following a three-week trial.

According to the complaints, indictments, evidence at trial, and statements made in public court proceedings, in January 2012, Michael Scott Moore, an American freelance journalist, traveled to Somalia to research piracy and the Somali economy. On Jan. 21, 2012, Moore was driving in the vicinity of Galkayo, Somalia, when his vehicle was suddenly surrounded by a group of heavily armed men carrying assault rifles and rocket-propelled grenade launchers. The men pulled Moore from his vehicle, beat him with their weapons, and drove him away in another vehicle to a secluded area, where they held him with two Seychellois fishermen (Fisherman-1 and Fisherman-2). The fishermen had been abducted off the Somali coast in October 2011. Moore was held in various locations in the vicinity of Hobyo, Somalia, for approximately three months.

In April 2012, Moore and Fisherman-1 were transferred to a boat, F/V Naham III, which had previously been hijacked in March 2012. The pirates kept Moore and Fisherman-1 captive aboard the Naham III, along with 28 crew members of the ship. Moore learned from the crew members, who were from Vietnam, China, Philippines, and Taiwan, that the hostage takers murdered the captain of the ship when they captured the vessel and that his body was kept in the ship’s freezer. The hostage takers kept Moore on the Naham III until approximately August 2012, when they transferred him back to land. On one occasion, in approximately May 2012, Moore’s captors took him from the Naham III to the Somali bush, where they forced Moore to watch as they hung Fisherman-1 from a tree by his feet and beat Fisherman-1 with a cane.  During the torture of Fisherman-1, the pirates who were present were armed with heavy weaponry, including machine guns and grenade launchers.

Moore remained a hostage for another two years. During this time, his captors shuttled him between safehouses, chained him at night to prevent his escape, surrounded him with armed guards, and repeatedly threatened him with bodily harm. Moore was also forced to make several proof-of-life videos requesting large ransom payments for his release. The kidnappers provided Moore with almost no information, and his access to the outside world was limited to a radio. In September 2014, following the payment of a ransom, Moore’s captors released him.

Hassan and Mohamed each played significant roles in Moore’s captivity. Hassan, a naturalized U.S. citizen, served as the Minister of the Interior (a role that made him responsible for police and security forces) in Galmudug province in Somalia, where Moore was held hostage. Hassan served as an overall leader of the pirates and headed their efforts to extort a massive ransom from Moore’s aging mother. Among other things, Hassan directed the production of proof-of-life videos with Moore, participated in negotiations for ransom payments, and used his own home as a base of operations for the pirates. Mohamed, a serving officer in the Somali army, was a supervisor of the pirates guarding Moore during the early stages of the hostage taking. After Moore had been moved several times, Mohamed continued to play an essential role in the hostage taking, relying on his military position, training, and experience to serve as the pirates’ head of security and armorer. As head of security, Mohamed was in charge of moving Moore from location to location around Somalia.  Mohamed also leveraged his military background to provide and repair heavy machine guns, grenade launchers, and other weapons that the pirates used to ensure that Moore could not escape.

In addition to the prison term, Hassan and Mohamed were sentenced to one day of supervised release.

Assistant Attorney General Matthew G. Olsen, U.S. Attorney Damian Williams for the Southern District of New York, and Executive Assistant Director Robert Wells of the FBI National Security Branch announced the case.

The FBI Boston and Minneapolis Field Office investigated the case with assistance from Department of State Diplomatic Security Service.

Assistant U.S. Attorney Sam Adelsberg and Trial Attorney Josh Champagne of the National Security Division’s Counterterrorism Section prosecuted the case with assistance from the U.S. Attorney’s Office for the Eastern District of New York and the Department of Justice’s Office of International Affairs.

Source: United States Department of Justice Criminal Division

Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, pleaded guilty today to one count of conspiracy to commit money laundering for his role in a scheme to launder millions of dollars in proceeds of cryptocurrency investment scams.

“Daren Li and his co-conspirators laundered over $73 million from the victims of cryptocurrency investment scams, using a web of shell companies and international bank accounts,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although Li committed this offense from outside the United States, he was not beyond the reach of the Justice Department. Today’s plea reflects our ongoing commitment to working with our domestic and international partners to hold accountable anyone responsible for cryptocurrency investment fraud against U.S. victims — wherever the perpetrators are located.”

Li was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transported to the Central District of California.

According to court documents, Li admitted that he conspired with others to launder funds obtained from victims through cryptocurrency scams and related fraud. In furtherance of the conspiracy, he communicated with his co-conspirators through encrypted messaging services. In order to conceal or disguise the nature, location, source, ownership, and control of the fraudulently obtained victim funds, Li would instruct co-conspirators to open U.S. bank accounts established on behalf of shell companies and would monitor the receipt and execution of interstate and international wire transfers of victim funds. Li and other co-conspirators would receive victim funds in financial accounts they controlled, and then monitor the conversion of victim funds to virtual currency, specifically Tether (USDT), and the subsequent distribution of that virtual currency to cryptocurrency wallets controlled by Li and his co-conspirators.

Li admitted that at least $73.6 million in victim funds were directly deposited into bank accounts associated with him and his co-conspirators, including at least $59.8 million deposited from U.S. shell companies that laundered victim proceeds.

“Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process,” said United States Attorney Martin Estrada for the Central District of California. “Investors should be diligent and on guard against anyone offering quick riches via new, exotic investments. A healthy dose of skepticism could prevent financial ruin down the road.”

“This investigation demonstrates how domestic and international partnerships are vital to successfully combatting transnational crime,” said Acting Assistant Director of Investigations Michael Ball of the U.S. Secret Service (USSS).

Li is scheduled to be sentenced on March 3, 2025. Li faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

USSS’s Global Investigative Operations Center is investigating the case. Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, the Dominican Republic National Drug Directorate Sensitive Investigative Unit and Fugitive Task Force, U.S. Marshals Service, Drug Enforcement Administration, and Justice Department’s Office of International Affairs provided assistance.

Trial Attorney Stefanie Schwartz of the Criminal Division’s Computer Crime and Intellectual Property Section’s National Cryptocurrency Enforcement Team and Assistant U.S. Attorneys Maxwell Coll and Nisha Chandran for the Central District of California are prosecuting the case.

If you or someone you know is a victim of cryptocurrency investment scams, report it to IC3.gov.

Source: United States Department of Justice Criminal Division

A former member of the U.S. Air National Guard (USANG), Jack Douglas Teixeira, 22, of North Dighton, Massachusetts, was sentenced today in federal court in Boston for retaining and transmitting hundreds of pages of classified National Defense Information (NDI), including many documents designated top secret, on an online social media platform in 2022 and 2023. Teixeira, was sentenced to 15 years in prison to be followed by three years of supervised release. Teixeira was also barred from having contact with foreign agents.

In March, Teixeira pleaded guilty to six counts of willful retention and transmission of classified information relating to the national defense. Teixeira was arrested in April 2023 and charged by criminal complaint with retention and transmission of NDI and unauthorized removal and retention of classified documents or materials. He was subsequently indicted by a federal grand jury in Boston in June 2023. He has remained in federal custody since his arrest.

“Jack Teixeira repeatedly shared classified national defense information on a social media platform in an attempt to impress anonymous friends on the internet – instead, it has landed him a 15 year sentence in federal prison,” said Attorney General Merrick B. Garland. “Teixeira’s profound breach of trust endangered our country’s national security and that of our allies. This sentence demonstrates the seriousness of the obligation to protect our country’s secrets and the safety of the American people.”

“This sentencing is a stark warning to all those entrusted with protecting national defense information: betray that trust, and you will be held accountable,” said FBI Director Christopher Wray. “Jack Teixeira’s criminal conduct placed our nation, our troops, and our allies at great risk. The FBI will continue to work diligently with our partners to protect classified information and ensure that those who turn their backs on their country face justice.”

“Mr. Teixeira is responsible for engaging in one of the most significant leaks of classified documents and information in United States history, which resulted in exceptionally grave and long-lasting damage to the national security of the United States,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “He exploited his Top-Secret security clearance to share critical defense information online. In doing so, he exposed sensitive defense information involving our allies, putting our intelligence community and our troops at risk. It is vital that our classified information remains just that – classified. Leaking and distributing this kind of information poses significant and real consequences across the globe. This is disturbing conduct that will not go unnoticed and unchecked.”

Teixeira enlisted in the USANG in September 2019. Until his arrest in 2023, he served with the 102nd Intelligence Wing at Otis USANG Base in Massachusetts as a Cyber Defense Operations Journeyman. Teixeira’s primary responsibility was maintaining and troubleshooting the classified workstations of other members of the 102nd Intelligence Wing. In order to perform his job, Teixeira was granted a Top-Secret//Sensitive Compartmented Information security clearance in 2021. Beginning in or around January 2022, Teixeira unlawfully retained and transmitted NDI classified as “TOP SECRET” or “SECRET” and/or Sensitive Compartmented Information (SCI), onto the social media platform Discord to persons not authorized to receive such information.

Teixeira used a secure workstation at the Otis USANG Base to conduct hundreds of searches for classified documents containing NDI that were unrelated to his duties. On two separate occasions, Teixeira’s superiors warned him not to take notes on classified intelligence information and to stop conducting “deep dives” into classified intelligence information. Despite these warnings and his considerable training, Teixeira purposefully and repeatedly removed classified information and documents containing NDI without authorization from the secure facility where he worked. Teixeira subsequently transmitted the information by typing it into an online social media platform, where it was further transmitted by other users. Teixeira also posted images of hundreds of classified documents to a social media platform, nearly all of which bore standard classification markings – including “SECRET,” “TOP SECRET” and SCI designations – indicating that they contained highly classified U.S. government information. The documents and information illegally disseminated by Teixeira discussed a range of topics including descriptions of the Russia-Ukraine conflict and troop movements on a particular date. The information he retained and disseminated was derived from sensitive U.S. intelligence, gathered through classified sources and methods.

Shortly before his arrest in April 2022, Teixeira took steps to conceal his disclosures by destroying and disposing of his electronic devices, deleting his online accounts, and encouraging his online acquaintances to do the same.

The FBI Washington and Boston Field Offices investigated the case. Valuable assistance was provided by the Naval Criminal Investigative Service, Air Force Office of Special Investigations, and the U.S. Attorney’s Office for the Eastern District of Virginia.

Assistant U.S. Attorneys Nadine Pellegrini, Jared C. Dolan, and Jason A. Casey for the District of Massachusetts and Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

Source: United States Department of Justice Criminal Division

A Florida man pleaded guilty today to conspiracy to commit offenses against the United States and conspiracy to commit money laundering in connection with a scheme to defraud insurance regulators and policyholders through a web of companies based in North Carolina, Bermuda, Malta, and elsewhere.

According to court documents, from no later than 2016 through at least 2019, Greg Lindberg, 54, of Tampa, conspired with others to defraud various insurance companies, other third parties, and ultimately thousands of insurance policyholders. Lindberg and others conspired to deceive the North Carolina Department of Insurance and other regulators, evaded regulatory requirements meant to protect policyholders, concealed the true financial condition of his companies, and improperly used insurance company funds for his personal benefit. Lindberg and his co-conspirators caused companies he controlled to invest more than $2 billion in loans and other securities with his own affiliated companies and laundered the proceeds of the scheme. As set forth in the indictment, Lindberg directed the scheme and personally benefitted from the fraud in part by “forgiving” more than $125 million in loans to himself from the insurance companies that he controlled.

To carry out the conspiracies, Lindberg and others engaged in circular transactions among Lindberg’s web of entities using insurance company funds and made and caused to be made various materially false and misleading statements and representations to and omitted material information from regulators, various ratings agencies, insurance companies, insurance policyholders, and others regarding these transactions.

As a result of Lindberg’s conduct, his insurance companies, third-party entities, and policyholders suffered substantial financial hardship, and some of his insurance companies have been placed in rehabilitation and liquidation.

“Greg Lindberg and his co-conspirators misused $2 billion of company funds in their international scheme to defraud corporate victims, regulators, and policyholders,” said Principal Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division. “Thousands of policyholders suffered substantial financial hardship as a result of Lindberg’s fraud scheme, which left multiple companies in or on the brink of liquidation. The Justice Department will not hesitate to hold corporate executives accountable when they threaten critical sectors of the economy, like the insurance industry, to enrich themselves.”

“Lindberg created a complex web of insurance companies, investment businesses, and other business entities and exploited them to engage in millions of dollars of circular transactions. Lindberg’s actions harmed thousands of policyholders, deceived regulators, and caused tremendous risk for the insurance industry,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Today’s guilty plea affirms our commitment to protecting the public from predatory financial schemes and bringing to justice those who betray public trust for personal gain.”

“Lindberg’s elaborate network of investments, insurance companies, and financial deals was designed to exploit the insurance system and drain millions from policyholders to enrich himself at the public’s expense,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “The FBI remains steadfast in our commitment to root out financial fraud.”

Lindberg pleaded guilty to one count of conspiracy to commit offenses against the United States, including wire fraud, investment adviser fraud, and crimes in connection with insurance business, and one count of money laundering conspiracy. He faces a maximum penalty of five years in prison on the conspiracy to commit offenses against the United States count and 10 years in prison on the money laundering conspiracy count. In addition to pleading guilty to these charges, on May 15, following a retrial, Lindberg was convicted by a federal jury in Charlotte of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions, aimed at bribing the elected North Carolina Commissioner of Insurance to influence the regulation of Lindberg’s insurance companies. A sentencing date has not yet been set. A federal district court judge will determine Lindberg’s sentence in both cases after considering the U.S. Sentencing Guidelines and other statutory factors in each case. Lindberg was remanded into the custody of the U.S. Marshals.

In December 2022, one of Lindberg’s top executives, Christopher Herwig, pleaded guilty in a related case to conspiring with Lindberg and others to commit offenses against the United States, including wire fraud, investment advisor fraud, and money laundering, as well as to the making of false statements in the business of insurance. Herwig is also awaiting sentencing.

The FBI Charlotte Field Office is investigating the case. The Securities and Exchange Commission’s Chicago Regional Office provided valuable assistance to the investigation.

Trial Attorney Lyndie Freeman of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Dan Ryan and Taylor Stout for the Western District of North Carolina are prosecuting the case.