Internet Fraud and Scams News

Good morning. Thank you all for joining us for the second meeting on the Counterterrorism Law Enforcement Forum. It is great to be here with so many distinguished colleagues to discuss these important issues.

I’ll add that I am especially pleased to be here in Oslo, as an Olsen, and someone who takes a lot of pride in my Norwegian heritage. For me, Oslo is a special place. It is also a place that has been touched by the violence and destruction of domestic violent extremism. So, it is poignant to be here working on this important challenge, with all of you.

Last May, we gathered in Berlin, for our inaugural meeting. I departed the forum daunted by the scale of the problem, but heartened to see the partnership of so many likeminded countries.

I returned to D.C. from Berlin on a Thursday. Two days later, on Saturday afternoon, I received the first alerts from the FBI that there was an active shooter in Buffalo, New York. What we would come to learn over the next hours and days was tha..

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Tuesday, June 6, 2023
CEO of Dozens of Companies Pleads Guilty to Massive Scheme to Traffic in Fraudulent and Counterfeit Cisco Networking Equipment
A Florida resident and dual citizen of the United States and Turkey pleaded guilty yesterday in the District of New Jersey to running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment.

According to documents filed in this case and statements made in court, Onur Aksoy, 39, of Miami, ran at least 19 companies formed in New Jersey and Florida, as well as approximately 15 Amazon storefronts and at least 10 eBay storefronts (collectively, the “Pro Network Entities”), that imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appea..

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Tuesday, June 6, 2023
Justice Department Announces Agreement in Environmental Justice Investigation of Illegal Dumping in the City of Houston
The Justice Department announced today that it has secured a settlement agreement in its environmental justice investigation into the City of Houston’s response to illegal dumping in Black and Latino neighborhoods. The agreement builds upon the city’s recently announced One Clean Houston initiative, a comprehensive plan to address pervasive illegal dumping and its negative impacts on the health, safety and quality of life of Houston residents. Today’s agreement memorializes the city’s cooperation with the Justice Department as it implements these new steps to combat illegal dumping and develops improved waste management services for residents across Houston.

“Houston’s illegal dumpsites have contaminated water and soil, attracted vermin and created blight in historically under-resourced neighborhoods across the city,” s..

Remarks as Delivered

Good morning. I am Kristen Clarke, the Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice. Today is a good day. I am here with U.S. Attorney Alamdar Hamdani for the Southern District of Texas, who you’ll hear from shortly as well.

We are here this morning to announce that the Justice Department has secured a settlement agreement in our environmental justice investigation involving the City of Houston. The City of Houston, as you have heard, has agreed to take a number of critical actions to address illegal dumping here in the city, an issue that has long plagued the predominately Black and Latino residents of Houston’s Trinity/Houston Gardens Super Neighborhood 48 and other similar communities in the city. The agreement memorializes the City of Houston’s – and Mayor Turner’s – efforts to ensure racially equitable responses to the environmental hazard and improve the quality of life of members of the Houston community.

Ille..

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Tuesday, June 6, 2023
Pharmacist Sentenced for $1M Prescription Drug Fraud Scheme
A Virginia man was sentenced today to two years in prison for his role in a scheme to defraud Medicare of over $1 million in prescription drug benefits.

According to court documents, Ronald A. Beasley II, 33, of Portsmouth, was the pharmacist in charge at NH Pharma, a pharmacy located in Lake Mary, Florida. Through NH Pharma, Beasley and his co-conspirators billed Medicare for expensive compound drug creams that they never actually purchased or dispensed, instead providing Medicare patients an inexpensive compound drug cream that Medicare did not cover. In fact, NH Pharma did not buy enough of the expensive prescription drugs to fill all the prescriptions NH Pharma billed to Medicare. In total, Beasley and his co-conspirators received more than $1 million in fraudulent Medicare proceeds.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Divi..

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Tuesday, June 6, 2023
Jury Convicts Federal Correctional Officer for Sexual Abuse of Two Female Inmates
A federal jury convicted a federal correctional officer of five counts involving sexually abusive conduct against two female victims who were serving prison sentences. U.S. District Judge Yvonne Gonzalez Rogers presided over the trial.

John Bellhouse, 40, formerly of Pleasanton, California, was initially charged with sexual abuse of an inmate on Feb. 17, 2022. A federal grand jury issued a superseding indictment on Sept. 29, 2022, charging Bellhouse with two counts of sexual abuse and three counts of abusive sexual contact. The charges involved conduct that was alleged to have occurred against two female inmates from December 2019 to December 2020. On Monday, a jury convicted Bellhouse of all counts.

“Correctional Officer Bellhouse committed an egregious breach of trust by using the cover of the BOP facility’s Safety Office to sexually abuse individuals i..

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Tuesday, June 6, 2023
New Jersey Man Found Guilty of Tax Evasion
Did Not Pay Taxes or File Returns Despite Earning Nearly $1.5 Million
A federal jury convicted a New Jersey man today of tax evasion and failing to file personal income tax returns.

According to court documents and evidence presented at trial, Jonathan D. Michael of Springfield, New Jersey, worked as a mechanic in the crane shop at the Port Newark Container Terminal. For the years 2014 through 2018, Michael provided his employer with an Employee’s Withholding Certificate (Form W-4) that falsely claimed he was exempt from any federal income tax withholding. During the same five-year period, Michael did not file personal income tax returns even though he earned approximately $1.5 million in wages, resulting in a tax loss to the IRS of over $375,000.

Michael is scheduled to be sentenced on Oct. 23, 2023, and faces a statutory maximum penalty of five years in prison for tax evasion and one year in..

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Monday, June 5, 2023
Justice Department Honors Law Enforcement Officers in Sixth Annual Attorney General’s Award for Distinguished Service in Community Policing
Attorney General Merrick B. Garland today announced the recipients of the Sixth Annual Attorney General’s Award for Distinguished Service in Community Policing, recognizing the exceptional work of 19 law enforcement officers and deputies from 15 jurisdictions across the country.

The Attorney General’s Award recognizes individual state, local, and Tribal sworn rank-and-file officers, deputies, and troopers for exceptional efforts in community policing. The awarded individuals have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations, or innovations in community policing. This year, the Department received nominations for almost 200 individual officers, deputies, and troopers. Nominations came from 49 states, representing state, local, campus..

Remarks as Delivered

Thank you, Vanita for that overly generous introduction. Good afternoon, everyone. Thank you for joining us for the sixth annual Attorney General’s Awards for Distinguished Service in Community Policing.

Can we have another round of applause to the students from McKinley Technology High School and Justice Department’s own Rhea Walker for starting this ceremony on such a lovely note?

I want to thank Director Clements and his entire team at the COPS Office for making today’s ceremony possible. And for the work they do every day to advance community policing.

The Associate Attorney General mentioned my long career at the Justice Department. I was here at the founding of the COPS Office, so I have an extra stake in this particular set of awards.

Today we are awarding 19 outstanding officers with the Attorney General’s Award for Distinguished Service in Community Policing.

These awards acknowledge their exceptional work in criminal investigations, field operation..

Remarks as Delivered

Thank you, Director Clements, for your tremendous leadership and a huge thanks to the COPS Office staff for all their work on this awards program and today’s ceremony. It is my honor to welcome our honorees, your families and all our distinguished guests to this ceremony and to the Justice Department.

Everyday law enforcement officers put themselves in harm’s way to keep us safe. The public expects this and too often takes it for granted. Today’s award ceremony allows us to take a moment to show appreciation for this immense public service. The Justice Department is proud to celebrate the individuals being recognized today. I have read your stories and know that you epitomize community policing at its best.

Community policing advances community safety by building trust, respect, and collaboration between police and communities. It’s a model of policing that respects civil rights and engages the community as a full partner in creating safer communities for police..

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Monday, June 5, 2023
Canadian Company Pleads Guilty to Illegally Selling Harp Seal Oil in the United States
FeelGood Natural Health Stores Ltd. (FeelGood) pleaded guilty today to one count of violating the Lacey Act by knowingly transporting and selling harp seal oil capsules in violation of the Marine Mammal Protection Act (MMPA). The MMPA makes it unlawful to transport or sell any marine mammal, including harp seals, or products thereof, for any purpose other than public display, scientific research, or enhancing the survival of a species or stock.

According to the plea agreement, FeelGood is a Canadian corporation located in Whitby, Ontario, Canada. Between at least April 2019 and May 2021, FeelGood offered harp seal oil capsules for sale in the United States on both its own webpage and a third-party platform. It did so even though its website on the third-party platform acknowledged, “NOT ship to USA,” and though FeelGood received a notice that some shipm..

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Monday, June 5, 2023
Readout of Assistant Attorney General Kristen Clarke’s Trip to Mississippi
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Lexington, Jackson, Indianola, and Clarksdale, Mississippi, on June 1 and June 2 to continue the division’s tour to engage with stakeholders in underserved communities and reaffirm the department’s commitment to protecting the civil rights of all Americans.

On Thursday, Assistant Attorney General Clarke and U.S. Attorney Darren LaMarca for the Southern District of Mississippi met with community leaders and stakeholders in Lexington at the Holmes County Circuit Court Complex. Holmes County is ranked as one of the poorest counties in the nation. In her remarks, Assistant Attorney General Clarke discussed the Justice Department’s commitment to address civil rights issues, including enforcing federal school desegregation orders, addressing jail and prison conditions ..

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Friday, June 2, 2023
Owner of Several Key West Hospitality Staffing Companies Sentenced for Tax and Immigration Crimes
A Florida man was sentenced yesterday to two years and eight months in prison for conspiring to defraud the United States and conspiring to harbor aliens and induce them to remain in the United States.

According to court documents and statements made in court, between November 2010 and October 2020, Batyr Myatiev owned and operated several Key West labor staffing companies, including Best Results Total Services, Inc, Ameri Hosp LLC, and Golden Sands Management, LLC, that facilitated the employment of non-resident aliens in hotels, bars, and restaurants operating in Key West and elsewhere who were not authorized to work in the United States. Myatiev encouraged workers to enter the United States illegally and induced them to remain in the country, in violation of immigration laws. Myatiev’s labor staffing companies paid alien workers without wi..

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Friday, June 2, 2023
Four Additional Oath Keepers Sentenced for Seditious Conspiracy Related to U.S. Capitol Breach
Four members of the Oath Keepers were sentenced this week on seditious conspiracy and other charges for crimes related to the breach of the U.S. Capitol on Jan. 6, 2021. Their actions and the actions of others disrupted a joint session of the U.S. Congress that was in the process of ascertaining and counting the electoral votes related to the presidential election.

Roberto Minuta, 39, of Prosper, Texas, was sentenced June 1 to 54 months in prison followed by 36 months of supervised release.

Edward Vallejo, 64, of Phoenix, Arizona, was sentenced on June 1 to 36 months in prison followed by 36 months of supervised release, including the first 12 months to be served on home confinement.

David Moerschel, 45, of Punta Gorda, Florida, was sentenced on June 2 to 36 months in prison followed by 36 months of supervised release.

Joseph Hackett, 53, of ..

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Friday, June 2, 2023
Man Sentenced for Sex Trafficking Minors in the Philippines
A Wisconsin man was sentenced today to 10 years in prison for sex trafficking multiple minors in the Philippines.

According to court documents, Donald A. Stenson, 67, of West Allis, traveled to the Philippines on multiple occasions starting in 2007 and repeatedly engaged in sexual activity with minors there. Between 2016 and 2019, Stenson lured five minor victims between the ages of approximately 11 and 17 into commercial sex arrangements, engaging in sexual activity with the victims and then providing them with money and gifts.

A search of Stenson’s electronic devices uncovered multiple images and videos of the minor victims, including a video depicting Stenson engaging in sex acts with a minor. The search also uncovered sexually explicit messages with minors and messages in which Stenson discussed engaging in sex acts with the minor victims with John Burgdorff, 66, of West All..

Remarks as Delivered

Good morning. I appreciate the opportunity to speak with you today. Many thanks to the International Bar Association for the invitation, and to Anne Walsh for the kind introduction. I look forward hearing from conference participants about some of the challenges and opportunities that cross international boundaries.

Across the globe, the COVID-19 pandemic made clear what those attending this conference know well – that, when it comes to the health and safety of its citizens, no nation is isolated from its neighbors. Pharmaceutical companies and researchers in all corners of the globe fight the same diseases and wrestle with how to best utilize rapidly evolving technologies to improve lives. And the global nature of commerce means that products developed in one part of the world may be manufactured in another part of the world, using materials from yet another part of the world, and then are shipped to and used in, still, other parts of the world.

Today, I would ..

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Thursday, June 1, 2023
Foreign National Charged for $1.8M Wire Fraud and Money Laundering Scheme
An indictment was unsealed today in the Central District of California charging a California businessman for allegedly soliciting investments under false pretenses and using investors’ funds to support his own lavish lifestyle.

According to court documents, Amadou Kane Diallo, 44, a Senegalese national and resident of Laguna Niguel, was the CEO of two California-based companies: Virtual Advisors LLC and Liquide Inc. Diallo allegedly solicited investments in his companies from at least 11 individuals for purported business opportunities in technology, health care, real estate, home ownership, and service to the African diaspora. Diallo allegedly made various false representations, including that investor funds would be spent to further investors’ interests, or not be spent at all, and instead used as “skin in the game” to attract institutional investors. Diallo is ..

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Thursday, June 1, 2023
Motel Manager Pleads Guilty to Coercing Labor and Sex Acts by Female Victim
A hotel manager in Georgia pleaded guilty today to trafficking with respect to peonage, slavery, involuntary servitude or forced labor.

According to court documents, Shreesh Tiwari, 70, an Indian national and legal U.S. permanent resident, began managing the Budgetel Motel in Cartersville, Georgia, in 2020. Tiwari hired the victim to work as a house cleaner at the motel. Tiwari knew that, prior to arriving at the Budgetel, the victim had experienced homelessness, struggled with a heroin addiction and lost custody of her young child. Tiwari promised the victim that he would help her regain custody of her child by providing her with pay, an apartment, and an attorney.

Instead of following through with his promises, Tiwari monitored the victim’s interactions with motel guests and employees and forbade her from speaking to them. Tiwari also made numerous sexual ove..