Alabama Defense Contractor Pays $507,144 to Settle False Claims Act Case Over Cybersecurity Failures on Navy Contracts

HUNTSVILLE, Ala. — LOGZONE Inc., a defense contractor based in Huntsville, has agreed to pay $507,144 to resolve allegations that it knowingly violated cybersecurity requirements on two U.S. Navy contracts, putting sensitive defense information at risk and submitting false claims for payment, federal prosecutors announced.

The settlement, reached under the False Claims Act, stems from a Defense Contract Management Agency (DCMA) assessment that found LOGZONE had failed to implement mandatory cybersecurity controls outlined in the National Institute of Standards and Technology (NIST) Special Publication 800-171. The assessment gave the company a score of -170 on a scale ranging from -203 to 110 — placing LOGZONE at the low end of compliance for the period from May 2021 to March 2025.

“Government contractors that obtain sensitive defense information in administering their contracts must follow required cybersecurity standards,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Justice Department will continue to investigate potential violations of these cybersecurity requirements in order to protect this critical information from external threats.”

According to the settlement agreement, LOGZONE allegedly submitted false or fraudulent claims for payment on two Navy contracts despite not having complied with the contracts’ cybersecurity provisions. The deficiencies identified by DCMA could, if left uncorrected, lead to significant exploitation of the company’s systems or the exfiltration of sensitive defense information, officials said.

“The protection of sensitive defense information by government contractors is critical to national security,” said U.S. Attorney Phillip W. Williams Jr. for the Northern District of Alabama. “Adherence to the cybersecurity provisions of contracts with the federal government must be a priority for all contractors, and this enforcement action should serve as a reminder of that.”

The settlement resolves allegations only; no determination of liability has been made.

“The cybersecurity provisions of federal contracts are critical to protecting sensitive information that may be transmitted in carrying out the mission of the contracts,” said Navy Vice Admiral Stephen Tedford, Director of the Defense Contract Management Agency. “DCMA will continue to ensure that contractors are fulfilling these obligations.”

California Investment Manager Pleads Guilty to Spoofing Scheme Involving Over 3,000 Manipulative Trades

SAN FRANCISCO — A Fremont man who marketed himself as an experienced algorithmic trader pleaded guilty Thursday to orchestrating a years-long securities fraud scheme that used more than 3,000 instances of illegal “spoofing” to manipulate thinly traded stocks and enrich himself, federal prosecutors said.

Mingran Wang, 52, the founder and investment manager of Greenroots Capital Management, admitted to one count of using interstate commerce for the purpose of securities fraud and agreed to forfeit over $1.3 million in proceeds from the scheme, according to court documents.

From 2021 through 2024, Wang engaged in a manipulative trading tactic known as spoofing, which involves placing non-bona fide orders with the intent to cancel them before execution. These orders create a false appearance of genuine supply or demand, tricking other investors and moving the price in the spoofer’s favor. Wang used multiple accounts at different brokerage firms, coordinating trades between them to manipulate prices on both the buy and sell sides.

The scheme targeted illiquid and thinly traded securities, which are often exchanged in low volumes with limited numbers of buyers and sellers. Such conditions can lead to volatile price swings when a transaction occurs — volatility Wang exploited for his own gain. After placing spoof orders to move the market price, Wang executed his desired bona fide orders on the opposite side of the market, profited, and then canceled the deceptive orders.

Wang marketed himself as having extensive knowledge and trading experience, including expertise in algorithmic trading, to attract investors to Greenroots Capital Management. But behind that facade, prosecutors said, he systematically manipulated the market through more than 3,000 instances of manipulative trading and spoofing.

Wang faces a maximum penalty of five years in prison when he is sentenced on Sept. 30 in the Northern District of California. A federal district court judge will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Justice Department Seizes Cloud Infrastructure Tied to Cambodian Conglomerate Accused of Laundering Billions in Cybercrime Proceeds

WASHINGTON — The Justice Department announced Thursday the seizure of a cloud computing account used by subsidiaries of the Huione Group, a Cambodia‑based corporate conglomerate alleged to have operated a massive money‑laundering infrastructure that processed billions of dollars stolen through cryptocurrency investment fraud, cyber scams, and Southeast Asian scam centers, according to court documents and federal officials.

The seized account hosted backend infrastructure for Huione Guarantee — also known as Haowang Guarantee — which prosecutors say operated Telegram channels that facilitated the sale of stolen credit card and identity information, malware‑enabled thefts, human trafficking arrangements, and laundering of proceeds from romance and investment scams. The platform also provided escrow services for criminals transacting on its systems, allowing money launderers to move cryptocurrency and convert illicit gains into the legitimate banking sector undetected.

“Today’s seizure strikes a blow against one of the world’s most prolific criminal marketplaces,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The Huione Group used this cloud computing account as part of a technological backbone that allowed billions in fraud proceeds to be transferred, moved, and concealed — much of it stolen through Southeast Asian scam centers. Seizures of these marketplaces is critical in the fight against fraud that affects so many Americans, and to stop avenues for criminal proceeds to be laundered.”

According to court documents, law enforcement has continuously traced cyber‑enabled fraud proceeds to cryptocurrency addresses attributed to the Huione Group, including Huione Guarantee, where funds were then further laundered. The scale of the problem is reflected in FBI data: Reports of cyber‑enabled fraud involving cryptocurrency continue to rise, with complainants reporting over $7.2 billion in losses to the FBI’s Internet Crime Complaint Center (IC3) in 2025 due to cryptocurrency investment fraud alone.

The action is part of Operation Riptide, an ongoing FBI campaign targeting the criminal actors, infrastructure, and financial networks behind cybercrime and fraud against the American people. Last year, Americans reported over $20 billion in losses to cybercrime — a 26% single‑year increase.

“Today’s seizure demonstrates that law enforcement will use all tools at its disposal to protect Americans from criminals seeking to exploit them,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “We will not allow individuals or companies to exploit our country’s technology to defraud hardworking Americans.”

The FBI’s San Francisco Field Office and IRS Criminal Investigation are investigating the case, with assistance from intelligence teams at Chainalysis and Elliptic, as well as Google’s CyberCrime Investigation Team.

In a related move, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a notice of proposed rulemaking to amend a previous order that severed the Huione Group from the U.S. financial system. Last October, FinCEN designated the Huione Group as a primary money laundering concern under section 311 of the USA Patriot Act, citing its role in laundering proceeds of cryptocurrency investment fraud, cyber heists conducted by North Korea, and other scams. The new proposal would expand the definition of the Huione Group to include H‑Pay Service PLC, which FinCEN has assessed as a component of the conglomerate and of primary money laundering concern.

“The FBI continually leverages its global reach to combat criminals targeting the American people,” said Assistant Director Heith Janke of the FBI’s Criminal Division. “This seizure demonstrates our commitment to disrupting every component of the illegal ecosystem and working with our partners to prevent further victimization from scams.”

“The FBI is committed to disrupting the infrastructure and services that cybercriminals rely on to profit from their illegal activity,” added Assistant Director Brett Leatherman of the FBI’s Cyber Division. “Today’s action targets a key enabler of cyber‑enabled fraud and money laundering schemes, demonstrating that the FBI will pursue not only the perpetrators, but also the services that support their criminal operations.”