La Crosse Man Arrested for Production, Distribution and Possession of AI-Generated Sexually Explicit Content for Children | Top stories

LA CROSSE, Wis. (WKOW) – A Wisconsin man has been charged by the United States with crimes related to inappropriate AI-generated images of children, the Department of Justice released Monday evening.

Steven Anderegg, 42, of Holmen, Wisconsin, was arrested on four counts related to the production, distribution and possession of sexually explicit content involving AI-generated children.

If convicted on all four counts listed in the indictment, he faces a statutory maximum sentence of 70 years in prison and a mandatory minimum sentence of five years in prison. He remains in federal custody until a prison hearing scheduled for May 22.

Anderegg, who has years of experience and a college education in computer science, used a generative text-to-image AI model called Stable Diffusion (made by Stability AI) to create hyper-realistic images of naked and semi-clothed prepubescent children showing or Touching their genitals or having sexual intercourse with adults.

The investigation into AI child pornography images led to a further investigation into first-degree sexual assault of a child under 13 years of age. Anderegg is out on bail in that case, in which he is charged with three charges, including two counts of child felony exposure to harmful material.

“Technology may change, but our commitment to protecting children does not,” said Assistant Attorney General Lisa Monaco. “The Department of Justice will aggressively prosecute those who produce and distribute child sexual abuse material (CSAM), regardless of how that material was created. Simply put, CSAM generated by AI is still CSAM, and we will hold accountable those who exploit AI to create obscene, offensive and increasingly photorealistic images of children.”

According to court documents, in 2023, Anderegg shared images of this nature with a teenager and others via Instagram direct messages and the encrypted mobile messaging app Telegram.

Last fall, law enforcement in Wisconsin received two CyberTips tips from the National Center for Missing and Exploited Children indicating that the user on the “Subject Account” on Instagram, later identified as Anderegg, was sharing information about it How to bypass AI detecting and sending AI-generated images of naked minors, allegedly knowingly to a potential minor. An investigation found that Anderegg posted an Instagram story on Telegram with a GenAI image of minors in BDSM-style leather clothing and a message encouraging others to “see what they’re missing.”

According to the Justice Department, Anderegg’s messages confirmed that he has a wife and child and showed that he discussed his desire to have sex with underage boys. In one message thread, another user asked Anderegg for nude pictures of minors, and Anderegg allegedly shared that he had “tons of such pictures” on Telegram before sharing more information.

In another message, Anderegg explained that he doesn’t publicly post fully nude pictures of minors on Instagram because “that would be illegal” and then discussed how he could get around that.

The investigation also uncovered messages between Anderegg and a potential minor. After being questioned by Anderegg, it turned out that the potential minor was actually a 15-year-old man. Anderegg then, unprompted, explained how he created the images by entering text prompts into the generative AI model. He then allegedly sent unsolicited pictures of half-clothed underage boys.

“As alleged, Steven Anderegg used AI to create thousands of illegal images of prepubescent minors and even sent sexually explicit AI-generated images to a minor,” said Nicole M. Argentieri, Assistant Attorney General and Chief of the Justice Department’s Criminal Division.

This wasn’t the first time Anderegg was caught with obscene, sexual images of a child, AI or not. In 2020, law enforcement discovered that someone using the Internet at Anderegg’s home intended to download multiple files of known child sexual abuse material via an online peer-to-peer network. During the investigation, Anderegg admitted to using and deleting the program and resetting his modem. No charges were filed in connection with this investigation, but in February of this year, law enforcement issued an arrest warrant at Anderegg’s home and searched his office.

Law enforcement found a work computer indicating he works as a software developer, as well as his personal laptop with Stable Diffusion and a graphical user interface with mods and tools that create photorealistic images of minors. Anderegg allegedly had 13,000 GenAI images, including, according to the DOJ, hundreds if not thousands of images that inappropriately depicted minors touching what appeared to be adult genitals or having sexual intercourse.

The investigation also found that Anderegg used “extremely specific and explicit prompts” to create the images in a way that did not result in images of adults.

“Today’s announcement sends a clear message: using AI to produce sexually explicit depictions of children is illegal, and the Department of Justice will not hesitate to hold accountable those who possess, produce, or distribute AI-generated child sexual abuse material.” said Deputy Assistant Prosecutor General Argentieri continued.

Despite having no criminal record, the Department of Justice believes Anderegg poses an immense threat to the community. They also suggest that his motivation is a sexual interest in children, especially minors. The DOJ also notes that his technological expertise poses a danger given the lack of regulation in AI and socially protected and encrypted spaces, particularly Meta and Telegram:

“(Anderegg’s) background provides ample reason to conclude that he could circumvent such restrictions if he chose to do so. And if he did, any new criminal behavior would likely go undetected…despite the magnitude of his apparent crimes, (Anderegg) was only caught because Instagram recognized and reported that he was direct messaging a 15-year-old boy on a single day in October 2023 sent obscene images of minors engaging in sexually explicit conduct.”

In addition to the charges, the DOJ proposed subjecting Anderegg to at least computer and GPS monitoring and prohibiting any contact with minors.

Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) is prosecuting the case with assistance from the U.S. Attorney’s Office for the Western District of Wisconsin.