4 Georgians, 1 Alabaman plead guilty in money laundering, sextortion scheme
A federal case in Michigan led to four men from Georgia and one from Alabama pleading guilty to playing a role in a sexual extortion scheme.
According to the U.S. Attorney for the Western District of Michigan, the five men all pled guilty to conspiring to launder the money earned by Nigerian sex extortionists.
The U.S. Attorney's Office said five men 'used online payment systems to collect sextortion proceeds and send them to a Nigerian individual they referred to as 'The Plug.''
The indictment against the five men said the sextortionists 'had boys and young men create nude images,' then, when the sextortionists received the pictures, they allegedly had the victims send money 'to the U.S.-based money launderers through online payment systems like Apple Pay, Cash App and Zelle.'
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
The launderers kept 20%, converting the rest into bitcoin to send to 'The Plug,' who kept a portion, then sent the remaining funds to the sextortionists involved.
Federal officials said three Nigerian nationals were charged in a sextortion scheme in 2022 after 17-year-old Jordan DeMay, a victim, died.
TRENDING STORIES:
LIVE UPDATES: Tornado watch issued for NW Georgia, parts of metro Atlanta, Flood watch issued
Thousands turn out across Metro Atlanta to protest against presidential policies
1 dead after shooting in Gwinnett County shopping center parking lot
The following five individuals pled guilty to conspiring to launder proceeds for Nigerian sex extortionists:
Dinsimore Guyton Robinson, 29, of Huntsville, Ala., pleaded guilty on January 22, 2025.
Kendall Ormond London, 32, of Lithonia, Ga., pleaded guilty on March 26, 2025.
Brian Keith Coldmon, Jr., 30, of Peachtree Corners, Ga., pleaded guilty on March 28, 2025.
Jarell Daivon Williams, 31, of McDonough, Ga. pleaded guilty on April 2, 2025.
Johnathan Demetrius Green, 32, of Stone Mountain, Ga., pleaded guilty on April 2, 2025.
'These individuals helped and profited from this awful, heartbreaking scheme and so they now will face the consequences,' Acting U.S. Attorney Andrew Birge said in a statement. The conspiracy offense is punishable by up to 20 years in prison. The court will decide the sentences upon consultation with federal sentencing guidelines and the individual circumstances.
The FBI provides the following recommendations for how to protect yourself from sextortion schemes:
Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
Be suspicious if you meet someone on one game or app and that person asks you to start talking on a different platform.
Be in the know. Any content you create online—whether it is a text message, photo, or video—can be made public. And nothing actually 'disappears' online. Once you send something, you don't have any control over where it goes next.
Be willing to ask for help. If you are getting messages or requests online that don't seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone. Being a victim of sextortion is not your fault. You can get through this challenge, even if it seems scary and overwhelming. There are people who want to help.[SIGN UP: WSB-TV Daily Headlines Newsletter]

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
25 minutes ago
- Yahoo
Failed Muni Bond Draws FBI and Sparks `Ponzi-Like Fraud' Claims
(Bloomberg) -- Before the lawsuits started piling up in courtrooms across Connecticut, before his employer accused him of running a 'massive Ponzi-like fraud,' and before the FBI showed up, Robert Cappelletti looked well on his way to pulling off one of the greatest muni-bond coups of all time. Next Stop: Rancho Cucamonga! Where Public Transit Systems Are Bouncing Back Around the World ICE Moves to DNA-Test Families Targeted for Deportation with New Contract US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Trump Said He Fired the National Portrait Gallery Director. She's Still There. The plan Cappelletti had put together was so audacious it bordered on the fantastical. The housing agency he ran in Groton, a sleepy town of some 40,000 people along Connecticut's Thames River, would sell $750 million of bonds to jumpstart a $4 billion project to transform a bunch of run-down shopping plazas into a sprawling, up-scale development. There'd be a new train station, a hospital, almost 2,000 apartments and dozens of shops and restaurants. It would have been the biggest local bond issue in the state's history and expanded the tiny Groton agency far beyond its role managing two apartment complexes. And yet Cappelletti — a part-time employee with a mixed record running other housing agencies in the state — breezed through a series of crucial steps needed to complete the sale. He got approval from the five-person board that runs the agency; crafted a brief financial projections statement; scored an investment-grade bond rating; and started the process of lining up buyers for the debt. It was only when the bond sale collapsed this winter and Cappelletti was removed from office that the complex financial web that he had spun across Connecticut for years came to light. Cappelletti engaged in double-dealing, created shell companies and failed to disclose loans he took out, leaving, in the process, a trail of financial wreckage across the state, lawyers for the Groton agency alleged in the most high-profile case against him. In February, they sued Cappelletti for fraud, claiming he borrowed at least $3 million without the commission's knowledge through subsidiaries he controlled. In subsequent court documents, the authority alleged Cappelletti also took 'millions of dollars' from non-commercial lenders and other 'questionable entities' that were then transferred to others, including businesses owned by his brother, David, that received about $1 million. The housing authority's attorneys are working with the FBI, which is investigating, according to people familiar with the matter who asked not to be identified discussing internal matters. 'Everybody is disgusted,' said Ric Silver, who lives in an apartment in Pequot Village, a 104-unit complex managed by the authority. Cappelletti declined to comment through his attorney, Joseph Martini, who also declined to comment. Cappelletti's brother, David, who was named as a co-defendant in the suit last month, also declined to comment. On June 2, in court papers filed in connection with the Groton case, Ivan Ladd-Smith, another lawyer for Cappelletti, said he intends to deny the allegations. A press official for the FBI declined to comment. Robert Frink, the chair of the Groton Housing Authority, said the board has opened an investigation but is 'unable to go into greater detail at this time.' That Cappelletti drew so little scrutiny as he pushed ahead with the deal is a testament to the vulnerabilities in the vast network of government agencies struggling to provide affordable housing to low-income families across America. To finance new projects and try to address the housing crisis, the local agencies routinely sell municipal bonds, a loosely regulated corner of the securities market where deals are often just rubber-stamped. Many of the agencies have been plagued by mismanagement, poor oversight and corruption. Since 2023, prosecutors have brought bribery and fraud charges against housing authority officials in Ohio, North Carolina, Georgia, Pennsylvania, Illinois, Montana and New York, where 70 former and current New York City Housing Authority officials were ensnared in a historic case. In Connecticut, the events in Groton are drawing fresh scrutiny to the more than 100 independent housing agencies across the state, which only has enough affordable rental homes to meet the needs of about one-third of the lowest-income households. 'Until we fix the regulatory disconnect,' said Robert Boris, chair of Groton's economic development commission, 'bad actors will continue to exploit it and working families will continue to the pay the price.' Cappelletti, 58, has worked in public housing for two decades. A graduate of Assumption University, a Catholic school in Worcester, Massachusetts, he joined the housing authority in Stamford, Connecticut, in 2002 to run the city's Section 8 voucher program, according to his LinkedIn profile. In 2009, he became the executive director for the Meriden Housing Authority and five years later tacked on a similar part-time job for the Waterbury Housing Authority. Just before starting at Groton in 2016, he left the post in Waterbury. There, an investigation found he had used $56,653 of public funds to buy a Chevrolet Silverado for business and personal use even though he wasn't entitled to a vehicle, had slid someone onto the payroll without the agency's approval and allowed a contractor to live rent-free in an apartment managed by the agency in exchange for painting work. Cappelletti and Waterbury reached a separation agreement that included no admission of wrongdoing. The Groton job was a relatively modest one — mostly the oversight of 174 rental units — that Cappelletti could do while still running the agency in Meriden some 50 miles away. Cappelletti, though, envisioned much bigger things for Groton. A manufacturing hub just off the Long Island Sound, best known for its naval base, General Dynamics Corp.'s submarine factory and the sprawling research facility for the drugmaker Pfizer Inc., the town had a relatively strong economy. But that had left it with a shortage of affordable housing, and its main commercial corridor was lined with aging, strip-style retail. Cappelletti called his development project Groton 2030. It'd reserve 20% of the 1,925 apartments for lower-income residents, a key selling point to the authority's board, which approved the project in June 2023. Per the plan, Cappelletti would oversee the project himself through a development arm of the housing authority instead of hiring an experienced developer or soliciting bids. One of the housing agency commissioners who signed off on the plan, Joe Greene, soon had regrets. In an interview, Greene said he had reluctantly approved the bond during a last-minute video call but had doubts after asking for details. Cappelletti never presented a real business plan, Greene said, and the town had not received formal notice that one of its agencies was planning a massive bond sale. At odds with the rest of the board, Greene resigned that September. Two years later, he remains mystified by it all. 'I still don't know how you're going to pay off a $750 million bond in a five-year timespan when you don't own the property and when there was no business plan,' he said. 'People were amazed at the amount of money.' With the approval in hand, Cappelletti put the deal in motion. He had the Groton authority pay $25,000 to a New Jersey-based investment banker, according to a check register obtained under a freedom of information request. The authority also hired Connecticut law firm Pullman & Comley as bond counsel and obtained an 'A' rating from Egan-Jones based on a few financial projections it turned & Comley declined to comment. Eric Mandelbaum, general counsel for Egan-Jones, said the firm can't comment on particular transactions but 'stands behind its work and record, which are based on methodologies that are publicly available.' Related Story: A New Ratings Game: 3,000 Deals, 20 Analysts, Lots of Questions The sale bogged down after that. Month after month, its completion kept getting delayed. Then, in May 2024, it all started to unravel on Cappelletti when the Groton commissioners received subpoenas ordering them to travel across the state to provide sworn testimony. Months earlier, a lawsuit had been filed against Cappelletti's Meriden Housing Authority and a subsidiary, Maynard Road Corp., that had defaulted on a $16 million loan. The lender, Titan Capital, subpoenaed the Groton commissioners because Cappelletti had made $629,000 of loan repayments with funds pulled from their agency, not Meriden's. The Meriden agency is now on the hook for about $30 million — to repay the Titan loan with interest as well as $12.5 million owed to Citizens Bank for a project in Bristol, Connecticut. Back in a September 2023 board meeting, the Groton commissioners had asked Capelletti about the cash used to pay off Titan, which was recorded as an expense for the Groton 2030 project. They were assured they'd be reimbursed when the bond deal closed, minutes of the meeting show. But the Meriden lawsuit raised new questions, and when Groton commissioners started digging, they found that companies controlled by Cappelletti had bought properties in Winchester, Connecticut, and Fitchburg, Massachusetts to redevelop. Cappelletti also allegedly forged a resolution to approve $2.7 million of lease agreements for the authority, according to the February lawsuit filed by the Groton agency. 'This case involves the discovery of a massive Ponzi-like fraud,' lawyers for the agency said in a court filing. 'Over the course of at least seven years, Cappelletti accepted millions of dollars in funds from non-commercial lenders or other questionable entities.' In January, the agency suspended Cappelletti and canceled his contract. The FBI probe continues and the lawsuits are wending their way through Connecticut courts. 'Our focus now,' said Frink, the chair of the Groton Housing Authority, 'is to ensure a complete and fulsome investigation.' Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Is Elon Musk's Political Capital Spent? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To What Does Musk-Trump Split Mean for a 'Big, Beautiful Bill'? ©2025 Bloomberg L.P.


Bloomberg
43 minutes ago
- Bloomberg
Failed Muni Bond Draws FBI and Sparks `Ponzi-Like Fraud' Claims
Before the lawsuits started piling up in courtrooms across Connecticut, before his employer accused him of running a 'massive Ponzi-like fraud,' and before the FBI showed up, Robert Cappelletti looked well on his way to pulling off one of the greatest muni-bond coups of all time. The plan Cappelletti had put together was so audacious it bordered on the fantastical. The housing agency he ran in Groton, a sleepy town of some 40,000 people along Connecticut's Thames River, would sell $750 million of bonds to jumpstart a $4 billion project to transform a bunch of run-down shopping plazas into a sprawling, up-scale development. There'd be a new train station, a hospital, almost 2,000 apartments and dozens of shops and restaurants.
Yahoo
an hour ago
- Yahoo
Iguana critically ill after being shot with pellet gun, shelter searching for owner
An iguana found in Hamilton County is critically ill after being shot with a pellet gun, and the Cincinnati Animal CARE is searching for its owner. [DOWNLOAD: Free WHIO-TV News app for alerts as news breaks] The iguana was found Friday on Northland Blvd in Forest Park is is being held at Cincinnati Animal CARE, according to a social media post. TRENDING STORIES: Heroic local pharmacist saves 2 lives in one shift Firefighters respond to reported apartment fire in Dayton 24-year-old man enrolled in an Ohio high school in U.S. Marshals custody Cincinnati Animal CARE took in the iguana after it appeared to be sick or injured, according to the post. An X-ray revealed that the iguana had been shot with a pellet gun and was potentially suffering from lead poisoning. An investigation into this case of suspected cruelty has been opened, according to the post. The Cincinnati Animal CARE medical team is working with reptile veterinary professionals to provide supportive care, but the post said that the iguana is critically ill. They are still looking for the owner of the iguana, but if they can not find them, they will seek rescue replacement due to limited, species-appropriate housing at the shelter. [SIGN UP: WHIO-TV Daily Headlines Newsletter]