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Tag: sentenced

  • Spencer Pearson shows scars from Madison Schemitz stabbing as he’s sentenced to life

    Spencer Pearson shows scars from Madison Schemitz stabbing as he’s sentenced to life

    The former star athlete who stabbed his ex-girlfriend and her mother in a frenzied parking lot attack in Florida last summer — before slashing his own throat — still had the scars of his suicide attempt as he appeared in court for his sentencing.

    Spencer Ross Pearson, 20, was handed a life sentence on Friday after he pleaded guilty to attempted murder and aggravated battery charges in July.

    His family blamed head trauma he sustained as a high school football star for the attack.

    Spencer Pearson appeared in court on Friday, Nov. 22, with scars still on his throat following his attempt on his own life after he attacked his girlfriend and her mom. Corey Perrine/Florida Times-Union / USA TODAY NETWORK via Imagn Images
    Madison Schemitz was stabbed 15 times by Pearson, leaving her paralyzed. Corey Perrine/Florida Times-Union / USA TODAY NETWORK via Imagn Images

    Pearson was in arrested in June 2023 after stabbing his ex-girlfriend Madison Schemitz, then 17, and her mother, Jaclyn Roge, as well as a bystander who tried to intervene outside a Ponte Vedra Beach restaurant.

    The then-18-year-old had been stalking Schemitz. She was left paralyzed from the chest down in the attack, The Florida Times-Union reported.

    Surveillance video of the attack shows the mother and daughter trying to leave the restaurant as Pearson follows them, eventually rushing toward Schemitz and stabbing her 15 times. Roge tried to fight off her daughter’s attacker, and was stabbed in the forehead and leg.

    Spencer Pearson, 20, was sentenced to life in prison on Friday. handout

    A bystander who intervened was also slashed but was able to stop the onslaught.

    Pearson then slit his neck before he was taken into custody.

    Both Schemitz and Pearson, as well as both of their parents, testified during the emotionally charged sentencing.

    Pearson’s father blamed the attacked at traumatic brain injuries he sustained as a high school football star. Facebook

    During her testimony, Schemitz said she had been thinking about this moment ever since the horrifying attack.

    “June 3rd, 2023, was without a doubt the absolute worst, most traumatic day of my life. And I remember every single second of it,” she read.

    Schemitz later added: “Your honor, a 17-year-old girl should not have to know the feeling of getting stabbed. Your honor, I should not have to remember the feeling of my body being inflicted with the knife over and over again. … I remember the moment I realized I was paralyzed. I remember struggling to breathe and formulate words.”

    Schemitz hugs family and friends after the sentence was read on Friday. Corey Perrine/Florida Times-Union / USA TODAY NETWORK via Imagn Images

    Pearson also took the stand to apologize, telling the court he “hurt three innocent people.”

    “I think of my terrible crimes committed every second of every day. It’s on my mind constantly and this will never, ever change. … I can’t begin to imagine what I’ve put them through and the negative effects I’ve had on everyone involved. I understand the anger and hatred they all have for me,” he said.

    Pearson’s father, Daniel Pearson, testified about the football-related head injuries his son suffered over the years, and how he and his wife found their son attempting to kill himself after he and Schemitz broke up.

    Pearson, a former star football player, likely suffered head injuries that would make him more likely to act violent, doctors testified. Corey Perrine/Florida Times-Union / USA TODAY NETWORK via Imagn Images

    The distraught father apologized to all three of the victims, telling his son’s ex-girlfriend, “Madison, you were always so sweet… you were such a beautiful person to be around. You were so good to our family. I’m sorry this happened to you. I think about you every day, I pray for you every day. You’re a sweet soul, you’re a beautiful person, I know that. I’m sorry.”

    Doctors who testified told the court an MRI of Pearson showed evidence of multiple head injuries similar to what an NFL player might sustain and said his violent act would be more likely because of his brain injuries.

    Meanwhile, Schemitz’s mother took the stand to tell Pearson he gave “Madison a life sentence on June 3rd, 2023, and it only seems fitting that you get the same.”

    Pearson’s defense team sought 12 years in prison and 15 years supervision and mental health counseling. Corey Perrine/Florida Times-Union / USA TODAY NETWORK via Imagn Images

    While Pearson’s defense team sought 12 years in prison followed by 15 years of supervision and mental health counseling, Judge R. Lee Smith decided on a tougher punishment.

    “June 3rd of 2023, the events that unfolded on that afternoon were horrific,” Smith said. “This defendant launched a vicious attack on a 17-year-old girl … who had only weeks earlier done her part to try to save his life when he attempted suicide. The same person who tried to save his life he violently and viciously attacked.”

    The judge noted that the lasting impact of Pearson’s crimes would make “any deviation below the [sentencing] guidelines is inappropriate.”

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  • Man who stole and laundered roughly $1B in bitcoin is sentenced to 5 years in prison

    Man who stole and laundered roughly $1B in bitcoin is sentenced to 5 years in prison

    WASHINGTON — A computer expert who stole bitcoin worth billions of dollars at current prices — and then spent years laundering some of the hacked cryptocurrency with help from his wife — was sentenced on Thursday to five years in prison.

    Ilya Lichtenstein masterminded one of the largest-ever thefts from a virtual currency exchange before he and his wife, Heather Rhiannon Morgan, carried out an elaborate scheme to liquidate the stolen funds, according to federal prosecutors.

    U.S. District Judge Colleen Kollar-Kotelly told Lichtenstein that his theft was “meticulously planned” and not an impulsive act.

    “It’s important to send a message that you can’t commit these crimes with impunity, that there are consequences to them,” she said.

    Lichtenstein, who gets credit for the two years and nine months that he has spent in jail since his February 2022 arrest, expressed remorse for “wasting my talents on crime instead of a positive contribution to society.” He said he hopes that he can apply his expertise to fight cybercrime when he gets out of prison.

    “I want to take full responsibility for my actions and make amends any way I can,” he said.

    The judge is scheduled to sentence Morgan on Monday. Lichtenstein pleaded with the judge to spare his wife from prison, blaming himself for her involvement.

    In August 2016, Lichtenstein hacked into a virtual currency exchange, Hong Kong-based Bitfinex, and stole approximately 120,000 bitcoin. It was worth approximately $71 million at the time of the hack and would be valued at more than $7.6 billion at current market prices, according to prosecutors.

    Several months later, Lichtenstein began moving the stolen bitcoin in a string of complex transactions designed to conceal its path across a series of accounts and platforms. He enlisted his wife’s help in cleaning the stolen funds.

    Lichtenstein, an entrepreneur and cryptocurrency investor, is a U.S. citizen who was born in Russia and grew up in a Chicago suburb. Morgan, a business owner and writer, adopted the alter ego “ Razzlekhan ” for performing rap songs and recording videos for her music.

    Lichtenstein and Morgan were living in New York City when they were arrested in February 2022. They had been living in San Francisco around the time of the hack.

    Prosecutors recommended a five-year prison sentence for Lichtenstein, who pleaded guilty in August 2023 to one count of money laundering conspiracy. They recommended an 18-month prison sentence for Morgan, who pleaded guilty to the same charge.

    “Neither the hack nor the laundering scheme was an impulsive decision. The defendant (Lichtenstein) spent months attempting to gain access to Bitfinex’s infrastructure and get the accesses and permissions he needed in order to orchestrate his hack,” prosecutors wrote.

    Lichtenstein told his wife about the hack over three years later, but he initially solicited her help in laundering the proceeds “without explaining exactly what he was doing,” according to prosecutors.

    Morgan “was certainly a willing participant and bears full responsibility for her actions, but she was a lower-level participant,” prosecutors wrote.

    During family trips to Kazakhstan and Ukraine, Lichtenstein met with couriers who delivered him money that he smuggled back into the U.S.

    “Over half a decade, the defendant engaged in what IRS agents described as the most complicated money laundering techniques they had seen to date,” prosecutors wrote.

    Bitcoin is the largest and oldest cryptocurrency, which is digital money that typically isn’t backed by any government or banking institution. Transactions get recorded with technology called a blockchain.

    The couple successfully laundered about 21 percent of the funds stolen from Bitfinex. The laundered money was worth at least $14 million at 2016 prices. Its value would have exceeded $1 billion at the time of their 2022 arrest.

    Authorities seized the remaining funds, collectively valued at over $6 billion at current prices.

    “He became one of the greatest money launderers that the government has encountered in the cryptocurrency space,” prosecutors wrote.

    An attorney for Bitfinex said the hack “devastated” its finances and its reputation with its customers, with the stolen funds accounting for approximately 36% of the company’s assets at the time of theft.

    “Bitfinex had to take unprecedented and immediate action to ensure that any losses from the Hack would ultimately be borne by Bitfinex and its shareholders alone, not its customers,” the lawyer, Barry Berke, wrote in a letter to the judge.

    A prosecutor said Lichtenstein immediately began cooperating with federal authorities after his arrest, helping them with other cybercrime investigations.

    Over 96% of the stolen funds have been recovered, with help from Lichtenstein, according to defense attorney Samson Enzer. The “vast bulk” of the stolen money was never spent, the lawyer said.

    “This is not an evil person,” Enzer said. “This is a good person who made some very bad mistakes.”

    ___

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  • British man sentenced to 18 years for using AI to make child sexual abuse imagery

    British man sentenced to 18 years for using AI to make child sexual abuse imagery

    LONDON — A British man who used artificial intelligence to create images of child abuse was sent to prison for 18 years on Monday.

    The court sentenced Hugh Nelson, 27, after he pleaded guilty to a number of sexual offenses including making and distributing indecent images of children and distributing “indecent pseudo photographs of children.” He also admitted to encouraging the rape of a child.

    Nelson took commissions from people in online chatrooms for custom explicit images of children being harmed both sexually and physically.

    Police in Manchester, in northern England, said he used AI software from a U.S. company, Daz 3D, that has an “AI function” to generate images that he both sold to online buyers and gave away for free. The police force said it was a landmark case for its online child abuse investigation team.

    The company said the licensing agreement for its Daz Studio 3D rendering software prohibits its use for creating images that “violate child pornography or child sexual exploitation laws, or are otherwise harmful to minors.”

    “We condemn the misuse of any software, including ours, for such purposes, and we are committed to continuously improving our ability to prevent it,” Daz 3D said in a statement, adding that its policy is to assist law enforcement “as needed.”

    Bolton Crown Court, near Manchester, heard that Nelson, who has a master’s degree in graphics, also used images of real children for some of his computer-generated artwork.

    Judge Martin Walsh said it was impossible to determine whether a child was sexually abused as a result of his images but Nelson intended to encourage others to commit child rape and had “no idea” how his images would be used.

    Nelson, who had no previous convictions, was arrested last year. He told police he had met like-minded people on the internet and eventually began to create images for sale.

    Prosecutor Jeanette Smith said outside court that it was “extremely disturbing” that Nelson was able to “take normal photographs of children and, using AI tools and a computer program, transform them and create images of the most depraved nature to sell and share online.”

    Prosecutors have said the case stemmed from an investigation into AI and child sexual exploitation while police said it presented a test of existing legislation because using computer programs the way Nelson did is so new that it isn’t specifically mentioned in current U.K. law.

    The case mirrors similar efforts by U.S. law enforcement to crack down on a troubling spread of child sexual abuse imagery created through artificial intelligence technology — from manipulated photos of real children to graphic depictions of computer-generated kids. The Justice Department recently brought what’s believed to be the first federal case involving purely AI-generated imagery — meaning the children depicted are not real but virtual.

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  • Montana man to be sentenced for cloning giant sheep to breed large sheep for captive trophy hunts

    Montana man to be sentenced for cloning giant sheep to breed large sheep for captive trophy hunts

    HELENA, Mont. — An 81-year-old Montana man faces sentencing in federal court Monday in Great Falls for illegally using tissue and testicles from large sheep hunted in Central Asia and the U.S. to illegally create hybrid sheep for captive trophy hunting in Texas and Minnesota.

    Prosecutors are not seeking prison time for Arthur “Jack” Schubarth of Vaughn, Montana, according to court records. He is asking for a one-year probationary sentence for violating the federal wildlife trafficking laws. The maximum punishment for the two Lacey Act violations is five years in prison. The fine can be up to $250,000 or twice the defendant’s financial gain.

    In his request for the probationary sentence, Schubarth’s attorney said cloning the giant Marco Polo sheep hunted in Kyrgyzstan has ruined his client’s “life, reputation and family.”

    However, the sentencing memorandum also congratulates Schubarth for successfully cloning the endangered sheep, which he named Montana Mountain King. The animal has been confiscated by U.S. Fish and Wildlife Services.

    “Jack did something no one else could, or has ever done,” the memo said. “On a ranch, in a barn in Montana, he created Montana Mountain King. MMK is an extraordinary animal, born of science, and from a man who, if he could re-write history, would have left the challenge of cloning a Marco Polo only to the imagination of Michael Crichton,” who is the author of the science fiction novel Jurassic Park.

    Schubarth owns Sun River Enterprises LLC, a 215-acre (87-hectare) alternative livestock ranch, which buys, sells and breeds “alternative livestock” such as mountain sheep, mountain goats and ungulates, primarily for private hunting preserves, where people shoot captive trophy game animals for a fee, prosecutors said. He had been in the game farm business since 1987, Schubarth said.

    Schubarth pleaded guilty in March to charges that he and five other people conspired to use tissue from a Marco Polo sheep illegally brought into the U.S. to clone that animal and then use the clone and its descendants to create a larger, hybrid species of sheep that would be more valuable for captive hunting operations.

    Marco Polo sheep are the largest in the world, can weigh 300 pounds (136 kilograms) and have curled horns up to 5 feet (1.5 meters) long, court records said.

    Schubarth sold semen from MMK along with hybrid sheep to three people in Texas, while a Minnesota resident brought 74 sheep to Schubarth’s ranch for them to be inseminated at various times during the conspiracy, court records said. Schubarth sold one direct offspring from MMK for $10,000 and other sheep with lesser MMK genetics for smaller amounts.

    In October 2019, court records said, Schubarth paid a hunting guide $400 for the testicles of a trophy-sized Rocky Mountain bighorn sheep that had been harvested in Montana and then extracted and sold the semen, court records said.

    Sheep breeds that are not allowed in Montana were brought into the state as part of the conspiracy, including 43 sheep from Texas, prosecutors said.

    The five co-conspirators were not named in court records, but Schubarth’s plea agreement requires him to cooperate fully with prosecutors and testify if called to do so. The case is still being investigated, Montana wildlife officials said.

    Schubarth, in a letter attached to the sentencing memo, said he becomes extremely passionate about any project he takes on, including his “sheep project,” and is ashamed of his actions.

    “I got my normal mindset clouded by my enthusiasm and looked for any grey area in the law to make the best sheep I could for this sheep industry,” he wrote. “My family has never been broke, but we are now.”

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