District Not Recorded

On Oct. 25, 2018, Jason Michael Ludke, of Milwaukee, pled guilty to conspiring to provide material support or resources to the Islamic State of Iraq and Syria (ISIS), in violation of Title 18, United States Code, Section 2339B(a)(1). Assistant Attorney General for National Security John C. Demers, United States Attorney Matthew D. Krueger for the Eastern District of Wisconsin and Special Agent-in-Charge R. Justin Tolomeo of the FBI’s Milwaukee Division made the announcement today.

According to the plea agreement, Ludke and a co-conspirator agreed that they would travel through Mexico to Syria and Iraq in order to join ISIS and to work under its direction and control. Ludke also recorded a video of himself pledging his allegiance to the leader of ISIS, Abu Bakr al-Baghdadi, and stating that he was ready to join ISIS. Ludke told an FBI Undercover Employee (UCE), who Ludke believed was assisting in the travel plans, that Ludke had training in jiu-jitsu and computers, which Ludke believed would benefit ISIS. On Oct. 5, 2016, Ludke and his coconspirator were traveling to the Texas/Mexico border in order to accomplish their plan to join ISIS (in Syria or Iraq), when law enforcement located and arrested them.

Ludke has prior convictions for child sexual assault and for making death threats against a federal judge. Also according to the plea agreement, Ludke was on probation at the time he was arrested and had cut the tracking device from his ankle before leaving Wisconsin.

“This conviction demonstrates the United States’ resolute commitment to protecting our country and combatting foreign terrorism,” United States Attorney Krueger said. “Individuals like Ludke who seek to provide material support to ISIS will be held accountable.”

“The FBI’s number one priority is protecting Americans from terrorism,” said Special Agent-in-Charge Justin Tolomeo. “I commend our Joint Terrorism Task Force (JTTF), which includes our local, state and federal partners, for their investigative efforts in identifying and arresting Jason Ludke that prevented him from joining the ISIS terror group.”

Ludke faces a maximum term of imprisonment of 20 years, a maximum term of supervised release of life, and a maximum fine of $250,000.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

The case was investigated by the FBI and the JTTF and is being prosecuted by Assistant United States Attorneys Paul Kanter and Benjamin Taibleson and Trial Attorney Jolie F. Zimmerman of the Department’s Counterterrorism Section.

A federal jury found two home health owners and two employees guilty today for their roles in a scheme to bill Medicare and Medicaid for over $3.7 million in charges when the owners had previously been excluded from participating in federal health care benefit programs.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region, Special Agent in Charge Eric Jackson of the FBI’s Dallas Field Office and Director of Law Enforcement David Maxwell of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement. 

After a six-day trial, Celestine “Tony” Okwilagwe, 50, of Dallas County, Texas; Paul Emordi, 52, of Collin County, Texas; Adetutu Etti, 60, also of Dallas County; and Loveth Isidaehomen, 49, also of Dallas County, were each convicted of one count of conspiracy to commit health care fraud.  In addition, Okwilagwe and Etti were each convicted of two counts of false statement in connection with a health care benefit program.  Sentencing before U.S. District Judge Jane Boyle of the Northern District of Texas, who presided over the trial, has not yet been scheduled. 

According to evidence presented at trial, Okwilagwe and Emordi owned and operated Elder Care, a Medicare and Medicaid provider in Garland, Texas, when both were previously excluded from participating in any federal health care benefit program.  Etti, the administrator of Elder Care, concealed Okwilagwe’s ownership and Okwilagwe and Emordi’s exclusions from Medicare and Medicaid.  Etti signed false documents that indicated that no one associated with Elder Care was excluded and that another individual owned Elder Care, the evidence showed.  The evidence further established that Isidaehomen signed bank documents and wrote employee paychecks to conceal the involvement of her husband, Okwilagwe.  The defendants also engaged in a scheme to submit false and fraudulent bills to Medicare for services that were not needed, the evidence showed. 

Evidence at trial demonstrated that Elder Care billed Medicare and Medicaid for over $3.7 million for claim reimbursements to which it was not entitled because Okwilagwe and Emordi were excluded from Medicare.

This case was investigated by HHS-OIG, the FBI, and MFCU.  Assistant Deputy Chief Adrienne Frazior and Trial Attorney Catherine Wagner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Russell Fusco of the Northern District of Texas are prosecuting the case. 

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. 

A former procurement officer of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in an international money laundering scheme involving bribes paid by the owners of U.S.-based companies to Venezeulan government officials in exchange for securing additional business with PDVSA and payment priority on outstanding invoices.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (HSI) Houston Field Office made the announcement.

Ivan Alexis Guedez (Guedez), 47, of Katy, Texas, pleaded guilty before U.S. Magistrate Judge Christina A. Bryan of the Southern District of Texas in Houston to one count of conspiracy to launder money.  Guedez is scheduled to be sentenced on Feb. 20, 2019 by U.S. District Judge Gray H. Miller of the Southern District of Texas.

According to admissions made in connection with Guedez’s plea, Guedez agreed with other PDVSA officials and businessmen who were employed by a Miami-based PDVSA supplier that, in exchange for bribe payments, Guedez and the other PDVSA officials would direct PDVSA business toward the supplier.  The co-conspirators who were employed by the PDVSA supplier also received kickbacks.  Guedez and his co-conspirators concealed the corrupt payments by, among other things, communicating using fictitious email addresses, creating false invoices to justify the payments, and directing the bribe payments to a Swiss account in the name of a shell company before being disbursed to the co-conspirators.

As part of his plea agreement, Guedez has agreed to forfeit the proceeds of his criminal activity.

Guedez becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.  Including Guedez, the Justice Department has announced the guilty pleas of a total of 15 individuals in connection with the investigation.

HSI Houston is conducting the ongoing investigation with assistance from HSI Boston and Madrid, as well as from IRS Criminal Investigation.  Trial Attorneys Jeremy R. Sanders, Sarah E. Edwards and Sonali Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case.  Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.

The Criminal Division’s Office of International Affairs and the Cayman Islands Mutual Legal Assistance Authority and Office of the Director of Public Prosecution also provided assistance. 

The Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

The Justice Department today announced the one-year anniversary of its initiative to combat sexual harassment in housing. Since its launch in October 2017 and nationwide expansion in April 2018, the Department has seen a major upswing in both reporting and enforcement. Over the past year, the Department has:

• Opened 34 new sexual harassment matters. This is more than any previous year and nearly five times the number of matters opened in the prior year.
• Filed six pattern-or-practice lawsuits challenging alleged sexual harassment in housing. This is more than the Department has filed in any previous year.
  • Western District of Michigan - United States v. Tjoelker,
  • District of Kansas - United States v. Cao Properties and Rentals,
  • Southern District of Ohio - United States v. Klosterman,
  • Northern District of New York - United States v. Waterbury,
  • Northern District of Alabama - United States v. Hames,
  • Western District of Oklahoma - United States v. Pelfrey. 

“This important initiative is giving a voice to victims of sexual harassment in housing. It also sends the strong message that the Department is listening to victims and taking action against landlords and managers who attempt to prey on vulnerable individuals all over the country,” said Acting Assistant Attorney General John Gore for the Civil Rights Division. “The Justice Department remains committed to our goal to make more people aware that no one should have to choose between a home and the right to be free from sexual harassment.”

“A home can never be a place of peace and comfort for individuals who are subjected to sexual harassment,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “We still have work to do, but the initiative has taken tremendous steps this past year toward addressing this unlawful behavior and the Justice Department and HUD remain committed to doing even more to inform the public about their housing rights.” 

The Department took several steps this past year to drive an increase in reporting and enforcement.

First, the Department held 20 roundtables about sexual harassment in housing at U.S. Attorneys’ Offices across the country. At these events, the Department creates opportunities for collaboration with local community partners, including engaging local law enforcement officers, legal aid offices, fair housing organizations, universities, civil rights organizations, and other groups.

U.S. Attorney Roundtables Hosted this Year:

Central District of California

District of Colorado

Middle District of Florida

Northern District of Georgia

Northern District of Iowa

District of Maryland

District of Massachusetts

Eastern District of Michigan

District of Minnesota

District of New Jersey (2)

Eastern & Southern Districts of New York (joint)

Northern District of Ohio

Eastern District of Pennsylvania

District of South Dakota

Northern District of Texas

District of Vermont

Western District of Virginia (2)

Second, the Department created an outreach toolkit designed to leverage the nationwide network of U.S. Attorney’s Offices and boost local outreach about sexual harassment in housing.

Third, the Department released a Public Service Announcement (PSA), in conjunction with the U.S. Department of Housing and Urban Development (HUD), featuring three women who were identified as victims of sexual harassment in DOJ lawsuits. The Department developed a 60-second video featuring three women who were injured parties in sexual harassment lawsuits brought by the Department under the Fair Housing Act. In the PSA, the women, in their own words, share the stories of how they were harassed and the impact the experience has on their lives. The PSA is posted on the Department’s YouTube channel.

Fourth, the Department launched a webpage on sexual harassment in housing. It is available in both English and Spanish. The webpage has resources available to download. This includes a partnership toolkit, flyers in 11 languages (English, Spanish, Arabic, Chinese (simplified), Chinese (traditional), Haitian Creole, Hindi, Korean, Tagalog, Urdu, and Vietnamese), palm cards in English and Spanish, and information sheets for advocates in English and Spanish.

Finally, the Department and HUD launched a new Task Force to Combat Sexual Harassment in Housing. It is focused on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies. The Task Force has facilitated collaboration between DOJ and HUD in drawing attention to the national PSA, including distributing it to public housing authorities, on HUD’s YouTube channel, and through social media.

More information about the Civil Rights Division and the civil rights laws it enforces is available at justice.gov/crt. If you believe you may be a victim of sexual harassment in housing, you should:

• call the Justice Department at 1-844-380-6178,
• send an e-mail to fairhousing@usdoj.gov, or
• contact HUD at 1-800-669-9777.

If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.

In anticipation of the upcoming general elections, the Department of Justice today provided information about its efforts through the Civil Rights Division and Criminal Division to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.

“Voting rights are constitutional rights, and they’re part of what it means to be an American,” Attorney General Jeff Sessions said. “The Department of Justice has been entrusted with an indispensable role in securing these rights for the people of this nation.  This year we are using every lawful tool that we have, both civil and criminal, to protect the rights of millions of Americans to cast their vote unimpeded at one of more than 170,000 precincts across America.  Citizens of America control this country through their selection of their governmental officials at the ballot box. Likewise, fraud in the voting process will not be tolerated. Fraud also corrupts the integrity of the ballot.”

Civil Rights Division:

The Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote, and with the criminal provisions of federal statutes prohibiting discriminatory interference with that right.

The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act, and the Civil Rights Acts.  Among other things, collectively, these laws:

• prohibit election practices that have either a discriminatory purpose based on race or membership in a minority language group or a discriminatory result such that members of racial or language minority groups have less opportunity than other citizens to participate in the political process;
• prohibit intimidation of voters;
• provide that voters who need assistance in voting because of disability or illiteracy can obtain assistance from a person of their choice (other than agents of their employer or union);
• provide for accessible voting machines for voters with disabilities;
• provide for provisional ballots for voters who assert they are registered and eligible but whose names do not appear on poll books;
• provide for absentee registration and ballots for uniformed service members, their family members and U.S. citizens living abroad;
• provide that citizens can register to vote through drivers’ license, public assistance or disability services offices, and through the mail; and
• include requirements regarding maintaining voter registration lists.

The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.

On Election Day, Nov. 6, 2018, the Civil Rights Division will implement a comprehensive program to help protect the right to vote that will include the following:

• The Civil Rights Division will conduct monitoring in the field at polling places around the country.
• Civil Rights Division staff in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the federal statutes the division enforces.  The division will take appropriate action and will coordinate with other entities within the Department of Justice concerning these complaints before, during, and after Election Day.
• Civil Rights Division staff will be available to receive complaints related to voting by telephone (1-800-253-3931 toll free or 202-307-2767) or by TTY (202-305-0082), by fax (202-307-3961), by email (voting.section@usdoj.gov), and, by complaint form on the Department’s website at https://www.justice.gov/crt/voting-section.

Complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911.  They should also be reported to the Department after local authorities are contacted.

Criminal Division and the Department’s 94 U.S. Attorneys’ Offices:

The Department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and protect the integrity of the federal election process.

The Criminal Division’s Public Integrity Section and the Department’s 94 U.S. Attorneys’ Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election fraud, such as vote buying, multiple voting, submission of fraudulent ballots or registrations, alteration of votes, and malfeasance by election officials.  The Criminal Division is also responsible for enforcing federal criminal law prohibiting voter intimidation for reasons other than race, color, national origin, or religion (as noted above, voter intimidation that has a basis in race, color, national origin or, religion is addressed by the Civil Rights Division).

The U.S. Attorney’s Offices around the country designate Assistant U.S. Attorneys who serve as district election officers (DEOs) in the respective districts.  DEOs are responsible for overseeing potential election-crime matters in their districts, and for coordinating with the Department’s election-crime experts in Washington, D.C.

On Nov. 6, the U.S. Attorneys’ Offices will work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible voter fraud are handled appropriately.  Specifically:

• In consultation with federal prosecutors at the Public Integrity Section in Washington, D.C., the District Election Officers in U.S. Attorneys’ Offices, FBI officials at Headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open, to receive complaints from the public.
• Election-crime complaints should be directed to the local U.S. Attorney’s Offices or the local FBI office.  A list of U.S. Attorneys’ Offices and their telephone numbers can be found at https://www.justice.gov/usao/find-your-united-states-attorney.  A list of FBI offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.
• Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorneys’ Offices and the FBI regarding the handling of election-crime allegations.

Complaints related to violence, threats of violence, or intimidation at a polling place should be reported first to local police authorities by calling 911.

Both protecting the right to vote and combating election fraud are essential to maintaining the confidence of all Americans in our democratic system of government.  The Department encourages anyone with information suggesting voting discrimination or ballot fraud to contact the appropriate authorities, and notes in particular that the Department of Homeland Security plays its own important role in safeguarding critical election infrastructure from cyber and other threats.

Chinese intelligence officers and those working under their direction, which included hackers and co-opted company insiders, conducted or otherwise enabled repeated intrusions into private companies’ computer systems in the United States and abroad for over five years.  The conspirators’ ultimate goal was to steal, among other data, intellectual property and confidential business information, including information related to a turbofan engine used in commercial airliners.

The charged intelligence officers, Zha Rong and Chai Meng, and other co-conspirators, worked for the Jiangsu Province Ministry of State Security (“JSSD”), headquartered in Nanjing, which is a provincial foreign intelligence arm of the People’s Republic of China’s Ministry of State Security (“MSS”). The MSS, and by extension the JSSD, is primarily responsible for domestic counter-intelligence, non-military foreign intelligence, and aspects of political and domestic security. 

From at least January 2010 to May 2015, JSSD intelligence officers and their team of hackers, including  Zhang Zhang-Gui, Liu Chunliang, Gao Hong Kun, Zhuang Xiaowei, and Ma Zhiqi, focused on the theft of technology underlying a turbofan engine used in U.S. and European commercial airliners.  This engine was being developed through a partnership between a French aerospace manufacturer with an office in Suzhou, Jiangsu province, China, and a company based in the United States. Members of the conspiracy, assisted and enabled by JSSD-recruited insiders Gu Gen and Tian Xi, hacked the French aerospace manufacturer.  The hackers also conducted intrusions into other companies that manufactured parts for the turbofan jet engine, including aerospace companies based in Arizona, Massachusetts and Oregon.  At the time of the intrusions, a Chinese state-owned aerospace company was working to develop a comparable engine for use in commercial aircraft manufactured in China and elsewhere. 

Defendant Zhang Zhang-Gui is also charged, along with Chinese national Li Xiao, in a separate hacking conspiracy, which asserts that Zhang Zhang-Gui and Li Xiao leveraged the JSSD-directed conspiracy’s intrusions, including the hack of a San Diego-based technology company, for their own criminal ends.

“For the third time since only September, the National Security Division, with its US Attorney partners, has brought charges against Chinese intelligence officers from the JSSD and those working at their direction and control for stealing American intellectual property,” said John C. Demers, Assistant Attorney General for National Security.  “This is just the beginning.  Together with our federal partners, we will redouble our efforts to safeguard America’s ingenuity and investment.” 

 “State-sponsored hacking is a direct threat to our national security.  This action is yet another example of criminal efforts by the MSS to facilitate the theft of private data for China’s commercial gain,” said U.S. Attorney Adam Braverman.  “The concerted effort to steal, rather than simply purchase, commercially available products should offend every company that invests talent, energy, and shareholder money into the development of products.”

 “The threat posed by Chinese government-sponsored hacking activity is real and relentless,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “Today, the Federal Bureau of Investigation, with the assistance of our private sector, international and U.S. government partners, is sending a strong message to the Chinese government and other foreign governments involved in hacking activities.  We are working together to vigorously investigate and hold hackers accountable regardless of their attempts to hide their illicit activities and identities.”

On October 10, the Department of Justice announced that a JSSD intelligence officer was extradited to the Southern District of Ohio, on charges that he attempted to steal trade secrets related to jet aircraft engines, and in September, in the Northern District of Illinois, a U.S. Army recruit was charged with working as an agent of a JSSD intelligence officer, without notification to the Attorney General. 

As the indictment in the Southern District of California describes in detail, China’s JSSD intelligence officers and hackers working at their direction masterminded a series of intrusions in order to facilitate intrusions and steal non-public commercial and other data.  The hackers used a range of techniques, including spear phishing, sowing multiple different strains of malware into company computer systems, using the victim companies’ own websites as “watering holes” to compromise website visitors’ computers, and domain hijacking through the compromise of domain registrars.  

The first alleged hack began no later January 8, 2010, when members of the conspiracy infiltrated Capstone Turbine, a Los-Angeles-based gas turbine manufacturer, in order to steal data and use the Capstone Turbine website as a “watering hole.”   

China’s intelligence service also sought, repeatedly, to hack into a San Diego-based technology company from at least August 7, 2012 through January 15, 2014, in order to similarly steal commercial information and use its website as a “watering hole.”

Chinese actors used not only hacking methods to conduct computer intrusions and steal commercial information, they also coopted victim company employees.  From at least November 2013 through February 2014, two Chinese nationals working at the direction of the JSSD, Tian Xi and Gu Gen, were employed in the French aerospace company’s Suzhou office.  On January 25, 2014, after receiving malware from an identified JSSD officer acting as his handler, Tian infected one of the French company’s computers with malware at the JSSD officer’s direction. One month later, on February 26, 2014, Gu, the French company’s head of Information Technology and Security in Suzhou, warned the conspirators when foreign law enforcement notified the company of the existence of malware on company systems. That same day, leveraging that tip-off, conspirators Chai Meng and Liu Chunliang tried to minimize JSSD’s exposure by causing the deletion of the domain linking the malware to an account controlled by members of the conspiracy.

The group’s hacking attempts continued through at least May of 2015, when an Oregon-based company, which, like many of the other targeted companies, built parts for the turbofan jet engine used in commercial airliners, identified and removed the conspiracy’s malware from its computer systems.

Count Two of the indictment charges a separate conspiracy to hack computers in which Zhang Zhang-Gui, a defendant charged in Count One, supplied his co-defendant and friend, Li Xiao, with variants of the malware that had been developed and deployed by hackers working at the direction of the JSSD on the hack into Capstone Turbine. Using malware supplied by Zhang, as well as other malware, Li launched repeated intrusions that targeted a San Diego-based computer technology company for more than a year and a half.  These intrusions caused thousands of dollars of damage to protected computers.

Count Three of the indictment charges Zhang Zhang-Gui with the substantive offense of computer hacking a San Diego technology company, which was one of the targets of the conspiracies alleged in Counts One and Two.

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. 

The FBI, led by the San Diego Field Office, conducted the investigation that resulted in charges announced today.  This case is being prosecuted by Alexandra Foster and Sabrina Fève of the United States Attorney’s Office for the Southern District of California and Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section.  The Criminal Division’s Office of International Affairs also provided assistance in this matter, and the Department appreciates the cooperation and assistance provided by France’s General Directorate for Internal Security (DGSI) and the Cybercrime Section of the Paris Prosecutor’s Office during the investigation of this matter.

Case Number: 13CR3132-H

A businessman was charged in a superseding indictment filed today for his alleged participation in a scheme to bribe senior government officials of the Republic of Haiti in connection with a planned $84 million port development project, and to launder funds in order to promote the bribery.  An alleged co-conspirator was previously charged in the original indictment.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division and Special Agent in Charge Harold M. Shaw of the FBI’s Boston Field Office made the announcement.

Roger Richard Boncy, 74, a dual U.S. and Haitian citizen who resides in Madrid, Spain, was charged in a superseding indictment filed in the District of Massachusetts with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and the Travel Act, one count of violating the Travel Act and one count of conspiracy to commit money laundering.  The superseding indictment also charges Boncy’s co-conspirator, Joseph Baptiste, DDS, 66, of Fulton, Maryland, with the same crimes.  Baptiste was originally charged by indictment in this case in October 2017.  Baptiste’s trial is scheduled to begin on Dec. 3, in the District of Massachusetts in Boston. 

The superseding indictment alleges that Boncy and Baptiste solicited bribes from undercover agents posing as potential investors in connection with a proposed project to develop a port in the Mȏle St. Nicolas area of Haiti.  The proposed project was expected to cost approximately $84 million and was to involve the construction of multiple cement factories, a shipping-vessel recycling station, an international transshipment station with numerous slips for shipping vessels, a power plant, a petroleum depot and tourist facilities. 

During a recorded meeting at a Boston-area hotel, Boncy and Baptiste allegedly told the agents that, in order to secure Haitian government approval of the project, they would funnel the payments to Haitian officials through a non-profit entity that Baptiste controlled, which was based in Maryland and purported to help impoverished residents of Haiti.  In intercepted telephone calls, Boncy and Baptiste also allegedly discussed bribing an aide to a high-level elected official in Haiti with a job on the port development project, in exchange for the aide’s help in obtaining the elected official’s authorization for the project.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The FBI’s Boston Field Office and International Corruption Unit investigated the case.  Trial Attorney Elina A. Rubin-Smith of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kriss Basil of the District of Massachusetts are prosecuting the case. 

The Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

Assistant Attorney General for National Security John C. Demers and United States Attorney William M. McSwain for the Eastern District of Pennsylvania announced that an Algerian man was sentenced today to 15 years’ imprisonment for conspiring to provide material support and resources to terrorists.  United States District Judge Petrese B. Tucker presided over the proceeding. 

Ali Charaf Damache, 53, also known as Theblackflag, was indicted in 2011 in the Eastern District of Pennsylvania on one count of conspiracy to provide material support to terrorists and one count of attempted identity theft to facilitate an act of international terrorism.  He was extradited from Spain in 2017 and pleaded guilty in July 2018. Upon completing his prison sentence, he will be removed from the United States and return to Ireland, where he is a citizen, or alternatively, Algeria.

Damache, his co-defendant Mohammad Hassan Khalid, and others conspired to support, recruit, and coordinate a terrorist cell, consisting of men and women from Europe and the United States, to wage violent jihad in and around Europe.  Jamie Paulin Ramirez, a resident of Colorado, and Colleen R. LaRose, aka Fatima LaRose, aka JihadJane, a resident of the Eastern District of Pennsylvania are among Damache’s co-conspirators. 

Though there were several involved in the conspiracy, Damache was the force behind the terrorist cell he formed.  He enticed LaRose and Ramirez to travel to Ireland live with him and train in the ways of violent jihad; convinced Khalid, LaRose and others to recruit men online to wage violent jihad in South Asia and Europe; and began to coordinate explosives training for his co-conspirators.  He also trained Ramirez’s son in the ways of violent jihad, on one occasion taking him to a public park for physical training that scared him.

“At a time when radical terrorist groups use the Internet to recruit new members and coordinate attacks against innocent people, the National Security Division remains committed to investigating all possible threats to our country aggressively — including those that take place online,” said Assistant Attorney General Demers.  “Through close cooperation with our international law enforcement partners and the dedicated work of our agents and prosecutors, we have brought Damache to justice.  The sentence in this case and order of removal have made the United States safer, and I applaud the women and men throughout the law enforcement community who made it happen.”

“Today’s sentencing marks the end of a long and arduous prosecution that has spanned more than nine years, involved four defendants and five unnamed co-conspirators, and required multiple coordinated international arrests and two extradition applications,” said United States Attorney McSwain.  “Damache and his co-conspirators were motivated by hate and prejudice, and their criminal activities presented a very real danger to our country and the world.  This case is a prime example of the remarkable results we can accomplish when law enforcement – both foreign and domestic – work together to stop our enemies who intend to wage war on our way of life.  As this case shows, our resolve to dismantle extremists groups is stronger than ever.”

This case was investigated by the FBI's Joint Terrorism Task Force in New York and the FBI Field Divisions in New York, Denver, Baltimore and Washington, D.C., and the IRS.  The Justice Department’s Office of International Affairs and authorities in Spain provided substantial assistance.  Authorities in Ireland also provided assistance in this matter. 

The case is being prosecuted Trial Attorneys Matthew F. Blue and C. Alexandria Bogle of the National Security Division’s Counterterrorism Section, and First Assistant U.S. Attorney Jennifer Arbittier Williams and Assistant U.S. Attorney Sarah M. Wolfe of the Eastern District of Pennsylvania.

An Arvada, Colorado, woman pleaded guilty today to one count of willfully making and subscribing to a fraudulent corporate income tax return announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents, Marlene Seo owned and operated a corporation called National Martial Arts Academy Inc., a martial arts instruction business.  From 2011 through 2013, income from Seo’s martial arts school was deposited into bank accounts that she did not disclose to the corporation’s bookkeeper and accountants, which resulted in her underreporting the business’s gross receipts on corporate tax returns for tax years 2011, 2012, and 2013 by approximately $650,000.  Seo plead guilty to signing and filing a false 2012 U.S. Corporation Income Tax Return, Form 1120, filed on behalf of National Martial Arts Academy.

Sentencing is scheduled for February 1, 2019.  Seo faces a maximum sentence of three years in prison.  She also faces a term of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Anahi Cortada and Lisa L. Bellamy, who are prosecuting the case.

The Department today released an update on hate crimes and announced the launch of a new comprehensive hate crimes website designed to provide a centralized portal for the Department’s hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other related organizations and individuals. The resources include training materials, technical assistance, videos, research reports, statistics, and other helpful information from all of the Department components working on hate crimes.

In recent years, the Department has ramped up its hate crimes prosecution program and increased training of federal, state, and local law enforcement officers to ensure that hate crimes are identified and prosecuted to the fullest extent possible. The Department of Justice Law Enforcement Roundtable on Improving the Identification and Reporting of Hate Crimes being conducted today and tomorrow through the Department’s Hate Crimes Enforcement and Prevention Initiative is an example of ongoing efforts to spur communication and cohesion among those in the field working on hate crimes.

Over the past 10 years, the Department of Justice has charged more than 300 defendants with hate crimes offenses, including 50 defendants in FY 2017 and 2018. In FY 2018, the Department charged 27 defendants in 22 cases, and obtained 30 convictions. Since January 2017, the Department has indicted 50 defendants involved in committing hate crimes and secured convictions of 51 defendants for hate crimes incidents.

At today’s roundtable, Deputy Attorney General Rod Rosenstein announced additional new efforts to assist in combatting hate crimes, including an $840,000 grant from the National Institute of Justice (NIJ) for a new research study on hate crimes data collection, and the extension of technical assistance resources relating to hate crimes through the Department’s Collaborative Reform Initiative. The website, the roundtable, the NIJ grant, and the Collaborative Reform resources are just some of the Department’s efforts that reflect discussions with law enforcement, advocates, faith leaders, and community members at the Department’s Hate Crimes Summit and National Summit on Crime Reduction and Public Safety in June 2017.

“Individuals should be able to live their lives free from the threat of violence and discrimination, no matter who they are, what they believe, or how they worship,” said Acting Assistant Attorney General John Gore. “I am proud of the work that the Civil Rights Division and our partners in the U.S. Attorneys’ offices have accomplished working with the FBI and our state and local law enforcement partners. We will continue to prioritize our work bringing perpetrators of hate crimes to justice throughout the country.”

Recent Department work on hate crimes prosecutions:

• On Saturday, within hours of the shooting at the Tree of Life Jewish Synagogue, the Department filed hate crime and other charges against the defendant Robert Bowers. The criminal complaint charges Bowers with 29 counts setting forth federal crimes of violence and firearms offenses. The crimes of violence are based upon the federal civil rights laws prohibiting hate crimes.
• This month, a Texas man was sentenced to almost 25 years in prison for a hate crime relating to the 2017 burning of a mosque in Victoria, Texas.  A jury found him guilty on July 16 for a hate crime in the burning of the Victoria Islamic Center (the mosque) on Jan. 28, 2017, and for the use of fire to commit a federal felony.  
• In September, a Florida man was sentenced to four years in prison, three years’ supervised release, and $1,800 in restitution for obstructing the free exercise of religious beliefs by threatening, in a phone message, to detonate a bomb at a mosque in Pembroke Pines, Florida.
• In August, a Kansas man who shot three men at a bar in Olathe was sentenced to life in prison without parole. The defendant killed one victim, and attempted to kill a second victim, because of their actual or perceived race, color, religion, or national origin. The defendant fired his weapon at a third man who had chased the defendant after the attack.  Earlier this year, the defendant plead guilty to hate crimes, firearms, attempted murder, and murder charges.  According to the agreement he signed when he plead guilty, the defendant went up to the victims in a bar, demanded to know how they came into the United States, and called one victim a “terrorist.”  
• In June, an Ohio man was charged with federal hate crimes including a hate crime act that resulted in the death of Heather Heyer, for his actions during the Aug. 12, 2017 “Unite the Right Rally” in Charlottesville.

The Department continues to conduct training and outreach programs in order to work with the network of U.S. Attorney’s Offices, local communities and organizations, and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits.

More information about the Department’s hate crimes efforts, along with a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available on the new webpage, www.justice.gov/hatecrimes.

The former managing director and vice chairman of a Swiss bank was sentenced to 10 years in prison today, after previously pleading guilty for his role in a billion-dollar international scheme to launder funds embezzled from Venezuelan state-owned oil company Petróleos de Venezuela, S.A. (PDVSA).

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.

Matthias Krull, 44, a German national and Panamanian resident, pleaded guilty to one count of conspiracy to commit money laundering, on Aug. 22.  U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida sentenced Krull to serve 120 months in prison, to be followed by three years of supervised release.  Judge Altonaga also ordered Krull to pay a fine in the amount of $50,000 and a forfeiture money judgment of $600,000.

As part of his plea, Krull admitted that in his position with the Swiss bank, he attracted private clients, particularly clients from Venezuela, to the bank.  In this role, Krull’s clients included Francisco Convit Guruceaga, who was indicted on money laundering charges on Aug. 16.  Krull’s clients also included three unnamed conspirators described in the Aug. 16 indictment. 

Krull admitted that the conspiracy began in December 2014 with a currency exchange scheme that was designed to embezzle around $600 million from PDVSA, obtained through bribery and fraud and the conspirators’ efforts to launder a portion of the proceeds of that scheme.  By May 2015, the conspiracy had doubled in amount to $1.2 billion embezzled from PDVSA.  PDVSA is Venezuela’s primary source of income and foreign currency (namely, U.S. Dollars and Euros).  Krull joined the conspiracy in or around 2016, he admitted, when a co-conspirator contacted him to launder the proceeds of a PDVSA foreign-exchange embezzlement scheme. 

Ultimately, Krull joined the conspiracy to launder $1.2 billion worth of funds that were embezzled from PDVSA, he admitted.  Krull and members of the money laundering conspiracy used Miami, Florida real estate and sophisticated false-investment schemes to conceal that the $1.2 billion was in fact embezzled from PDVSA.  Krull also admitted that surrounding and supporting these false-investment laundering schemes are complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers. 

Krull’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

The investigation was conducted by HSI Miami, HSI London, HSI Rome and HSI Madrid.  This case is being prosecuted by Assistant Chief David Johnson and Trial Attorney Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael Nadler of the Economic and Environmental Crimes Section of the Southern District of Florida. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture.

The Criminal Division’s Office of International Affairs provided substantial assistance in this matter; the National Crime Agency of the United Kingdom; and Italian, Spanish and Maltese law enforcement authorities provided assistance. 

The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.      

Deputy Attorney General Rod Rosenstein today announced a grant of more than $840,000 to the University of New Hampshire to conduct a national survey of hate crime incidents and victimization. He also announced that a $10 million dollar technical assistance program launched last March by Attorney General Sessions will now include the prosecution and prevention of hate crimes. For the first time, law enforcement will be able to access critical and innovative education and training resources on hate crimes investigation and prevention. The announcements were made at the Department of Justice Law Enforcement Roundtable on Improving the Identification and Reporting of Hate Crimes, hosted by the Department’s Hate Crimes Enforcement and Prevention Initiative. Acting Assistant Attorney General John Gore for the Civil Rights Division, Phil Keith, Director of Community Oriented Policing Services (COPS), and Matt M. Dummermuth, Office of Justice Programs (OJP) Principal Deputy Assistant Attorney General joined the Deputy Attorney General in making the announcement.

“Today’s roundtable brings together two of the Department’s highest priorities:  supporting our state and local law enforcement partners, and deterring bias-motivated crimes,” said Deputy Attorney General Rosenstein. “We will continue to work with our partners to prevent hate crimes and make all of our neighborhoods free from violence and fear.”

“Hate crimes are an attack on a fundamental principle of the United States to be free from fear of violence because of your sexual orientation, gender identity, race, color, religion, or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice is committed to using every tool at its disposal to combat this type of violence and the grants announced today at the law enforcement roundtable will help strengthen our ability to identify and prosecute these violent hate crimes.”

“In all facets of our work, we must ensure that we understand the needs of law enforcement.  That is why it is my top priority to ensure that we are always listening to the field, rather than telling the field what it needs,” said COPS Director Phil Keith. “Through programs like today’s roundtable and the extension of Collaborative Reform technical assistance to hate crimes, we can offer the support and assistance that state, local, and tribal law enforcement agencies request to improve their own hate crimes efforts.”

“Crimes motivated by racial, ethnic, sexual or religious animus carry a particularly vile moral quality, but because they are defined, recorded and investigated differently across states, we do not fully comprehend their impact on public safety,” said Dummermuth. “This study will shed new light on the prevalence and character of hate offending in the United States, and even better, it will show us what policies and practices are working to solve these crimes, bring perpetrators to justice and deliver support to victims.”

The Department is committed to enforcing federal hate crimes statutes, including the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act of 2009 (HCPA), which allow the Department to prosecute certain crimes that are committed because of the actual or perceived race, color, religion, national origin, gender, sexual orientation, gender identity, or disability of any person. The day and a half long law enforcement roundtable joins over fifty law enforcement executives from agencies around the country to explore successful practices and challenges in identifying, reporting, and tracking hate crimes. The roundtable was designed to spur discussions between colleagues about challenges to hate crimes data collection, practical tips on overcoming barriers, and strategies to most efficiently track and prosecute perpetrators of hate crimes nationwide. A report will be issued after the roundtable summarizing the discussion of best practices for law enforcement seeking to improve their agencies’ investigation and reporting of hate crimes.

The multi-phase study, funded by the National Institute of Justice (NIJ) in the Department’s Office of Justice Programs, will provide detailed data about hate crimes, analyze local policies that impact hate crime reporting, and identify successful investigation and prosecution strategies. The study will survey 3,000 law enforcement agencies to collect information on rates of reported hate crime incidents, gather profiles of hate crime offenders, and capture challenges in defining, investigating and documenting hate crimes. The second follow-up phase will survey 250 prosecutors about cases that ended in arrest. The study will run through 2021 and include a report on the findings.

The extension of technical assistance relating to hate crimes by the Collaborative Reform Technical Assistance Center, a partnership with the International Association of Chiefs of Police (IACP), and eight leading law enforcement leadership and labor organizations, will allow law enforcement to build and improve their hate crimes investigation and reporting practices.

The Department has created and launched a number of training and outreach programs in order to work with the network of U.S. Attorney’s Offices, local communities and organizations, and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits. More information about the Department’s hate crimes efforts, along with a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available on a new DOJ webpage, launched today: www.justice.gov/hatecrimes.

In addition to today’s award, OJP provides indirect support for hate crime programs through several OJP components, such as the Bureau of Justice Statistics, the Bureau of Justice Assistance and the Office for Victims of Crime.  More information about OJP’s programs is available at: www.ojp.gov.

The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

The Community Relations Service (CRS) collaborated with other components of the Department of Justice (DOJ) to develop the Hate Crimes Website, which officially launched on Monday, October 29, 2018.

The new website provides a centralized portal for the DOJ’s hate crimes resources for victims, law enforcement, researchers, civil rights groups, media, and other related organizations and individuals. The resources include training materials, technical assistance, videos, research reports, statistics, and other helpful information from all the DOJ components working on hate crimes.

Combatting hate crimes is one of the Department’s highest priorities. The Department combats hate crimes through prevention, education, outreach, data collection, and support for state, local, and tribal law enforcement. In addition to CRS, the DOJ components involved in the creation of the website are the Civil Rights Division, Criminal Division, Executive Office for United States Attorneys, Federal Bureau of Investigation, Office of Community Oriented Policing Services, and Office of Justice Programs.

We encourage you to visit the hate crimes website to learn more about how you can help prevent and respond to hate crimes in your community. For more information, please refer to the following DOJ press releases:

Justice Department Releases Update on Hate Crimes Prosecutions and Announces Launch of New Hate Crimes Website (October 29, 2018)

Deputy Attorney General Rod J. Rosenstein Delivers Remarks at a Law Enforcement Roundtable Regarding Improving Identification and Reporting of Hate Crimes (October 29, 2018)

Deputy Attorney General Rosenstein Announces Funds and Technical Assistance Resources to Help Law Enforcement Investigate and Prosecute Hate Crimes at Law Enforcement Roundtable (October 29, 2018)

Today, the U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) announced a settlement that requires Aux Sable Liquid Products LP (Aux Sable) to strengthen air pollution controls and reduce air pollution at its natural gas processing facility, located southwest of Chicago. The facility, which is the largest natural gas processing plant in the United States, is located within the Chicago Non-Attainment Area for ground-level ozone, which includes the greater Chicago area and the northwest Indiana counties of Lake and Porter.

Under the terms of the settlement, Aux Sable will pay a $2.7 million civil penalty and at least $4.5 million on improvements to pollution controls and projects to reduce volatile organic compounds (VOCs) and nitrogen oxide emissions (NOX).

“Today’s settlement appropriately enforces and resolves significant violations of the Clean Air Act by Aux Sable,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The important upgrades at Aux Sable facility – required by today’s action -- will improve air quality in the Chicago area.  The Department of Justice continues to work with EPA to protect clean air for all Americans.”  

“The settlement reached today will result in cleaner air for communities in the Greater Chicago area by reducing emissions of pollutants that are ozone precursors,” said Assistant Administrator Susan Bodine for EPA’s Office Of Enforcement and Compliance Assurance. “This work required under the settlement will not only achieve compliance with the Clean Air Act, it also will advance EPA’s goal of reducing the number of nonattainment areas in the country.”

This settlement addresses alleged violations of the Clean Air Act’s New Source Review Rules for excess fugitive emissions of VOCs.  The Department of Justice and EPA allege that VOC emissions from equipment leaks at the facility have significantly exceeded the applicable thresholds for such emissions since the facility began operating in 2000, and Aux Sable has therefore never complied with the New Source Review requirements, including the lowest achievable emission rate and emission offset standards.  

In this settlement, Aux Sable has agreed to take measures to reduce its emissions of VOCs, including (1) expanding its fugitive emission leak detection and repair program to cover thousands of fittings at its facility; (2) complying with a more stringent leak threshold for making repairs to valves throughout the facility; (3) installing state-of-the-art “low-emissions” technology to replace or repack older leaking valves; (4) achieving 99 percent control efficiency of VOC emissions at the facility’s off-gas incinerators; (5) complying with flare operation monitoring requirements; and (6) installing ultra-low oxides of nitrogen (NOx) burner technology at the facility’s two process heaters.  EPA estimates that Aux Sable will spend at least $1.5 million in capital costs and at least $250,000 per year in incremental operational and maintenance costs to complete these improvements. 

Additionally, Aux Sable has addressed its noncompliance with the Illinois volatile organic material emission trading program by purchasing from the Illinois EPA the necessary VOC emission allotments and required emission excursion compensation to cover VOC emission-allotment deficiencies from 2001 to 2015, at a cost of more than $156,000. Aux Sable also submitted to Illinois corrections to past annual emission reports.

To mitigate the environmental harm caused by its Clean Air Act violations, Aux Sable has agreed to implement mitigation projects to reduce VOC and NOX emissions at locomotive switchyards located in the Chicago Area, which will include repowering switcher locomotives and installing switcher locomotive idle-reduction technology. Aux Sable will spend $3 million to implement these projects.

VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems. Besides ground level ozone, NOx emissions also contribute to acid rain, particulate matter, water quality deterioration, and visual impairment.

The consent decree has been lodged with the U.S. District Court for the Northern District of Illinois and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register, allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.

For more information on the settlement, please visit: https://www.epa.gov/enforcement/aux-sable-liquid-products-clean-air-act-settlement. 

Attorney General Sessions today issued the following statement on the horrific tragedy in Pittsburgh: “Hatred and violence on the basis of religion can have no place in our society,” Attorney General Jeff Sessions said. “Every American has the right to attend their house of worship in safety. Today 11 innocent people were suddenly and viciously murdered during religious services and several law enforcement officers were shot. These alleged crimes are reprehensible and utterly repugnant to the values of this nation. Accordingly, the Department of Justice will file hate crimes and other criminal charges against the defendant, including charges that could lead to the death penalty. 

“It has been an important week for us to show gratitude for the hard work of our law officers around the country. And today was no exception. I want to thank the FBI, ATF, Pittsburgh police, and especially the heroic officers who were so quick to respond to the shooting, including the multiple officers who were shot. These officers ran to danger to save others, which reflects the highest traditions of policing in this country. There can be no doubt that they saved lives today.

“The Department of Justice will continue to support our state and local partners and we will continue to bring the full force of the law against anyone who would violate the civil rights of the American people.”

Three Colombian nationals have pleaded guilty to a four-count federal indictment in the Southern District of Florida stemming from their roles in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.

Carlos Emilio Ibarguen Palacios, 27, pleaded guilty today before the Honorable Darrin P. Gayles of the Southern District of Florida to one count of conspiracy to encourage and induce aliens to come to the United States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person.  Fredis Valencia Palacios, 30, pleaded guilty on Sept. 25, 2018 and Jhoan Stiven Carreazo Asprilla, 23, pleaded guilty on Oct. 24, 2018 before the Honorable Jose E. Martinez of the Southern District of Florida to the same charges. 

The three defendants, all Colombian nationals, were previously extradited to the United States in 2017 and 2018 to face these charges. 

“These defendants’ depraved acts—which included sexually assaulting and murdering one victim, cutting the throat of a second, and leaving a third for dead in the ocean—underscore the dangers inherent in alien smuggling,” said Assistant Attorney General Benczkowski.  “This prosecution of three smugglers from Colombia reflects our resolve to bring to justice those who exploit our immigration laws and prey upon aliens seeking to illegally enter the United States.”

“The high seas do not protect criminals from prosecution in the United States,” said U.S. Attorney Fajardo Orshan.  “When human smugglers knowingly plan to violate U.S. immigration laws and expose illegal aliens to grave danger during their arduous journey, the U.S. Attorney’s Office, with the assistance of our domestic and foreign law enforcement partners, stand ready to prosecute the offenders on American soil.”

“Today’s guilty plea by Ibarguen Palacios brings to justice another defendant in one of the most horrific cases investigated by HSI Miami,” said HSI Special Agent in Charge Selby.  “This is exactly what we are constantly warning the public of when it comes to the dangers of human smuggling.  Although these pleas will not return the victims to their loved ones, it does bring justice for their friends and family. HSI will continue to aggressively investigate, pursue and shut down these organizations that are involved in this heinous criminal act.”

According to the court record, including agreed upon factual proffers, since 2014, Valencia Palacios, Carreazo Asprilla, and Ibarguen Palacios, and their co-defendant organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States.  In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami. 

On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by Valencia Palacios to a boat captained by Ibarguen Palacios, and Carreazo Asprilla, to begin their journey to Panama.  During the boat trip, Ibarguen Palacios and Carreazo Asprilla pulled a knife and a gun, respectively, on the victims.  Ibarguen Palacios tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard Ibarguen Palacios and Carreazo Asprilla sexually assault the female victim before cutting her throat and murdering her.  The surviving victim also heard Ibarguen Palacios and Carreazo Asprilla cut the other male victim’s throat, killing him.  While that was happening, the survivor managed to free himself and escape by swimming away.  Ibarguen Palacios and Carreazo Asprilla left him for dead.

The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy.  The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water.  The co-defendants were subsequently located and arrested.

Sentencing is scheduled for Valencia Palacios on Nov. 28, and for Carreazo Asprilla and Ibarguen Palacios on Jan, 4, 2019, all before U.S. District Judge Martinez.

This case was investigated by HSI Miami, with assistance from the HSI Bogota field office.  The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation.  The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition.  The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities. 

This case is being prosecuted by Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida.

A former U.S. Department of Veterans Affairs (VA) official pleaded guilty to demanding and receiving bribes from three for-profit schools in exchange for enrolling disabled military veterans in those schools and facilitating over $2 million in payments from the VA using the veterans’ federal benefits. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.

James King, 63, of Baltimore, Maryland, pleaded guilty to an Information alleging one count of honest services and money/property wire fraud, one count of bribery, and one count of falsifying records to obstruct an administrative investigation.  The plea was entered before U.S. District Judge John D. Bates of the District of Columbia, who set sentencing for Jan. 15, 2019.  King is the fourth individual to plead guilty as part of this investigation.  In April, Albert Poawui and Sombo Kanneh pleaded guilty to bribing and conspiring to bribe King, respectively.  In July, Michelle Stevens pleaded guilty to bribing King. 

“For years, James King and his criminal associates defrauded an important VA program that provides education services to military veterans who served our country,” said Assistant Attorney General Benczkowski.  “The Justice Department is committed to prosecuting those who seek to illegally enrich themselves at the expense of programs intended to help our brave servicemembers.” 

“James King took advantage of his position with the VA by participating in a scam that took money from programs meant to help our disabled military veterans find jobs and enhance their education,” said U.S. Attorney Liu. “This investigation shows that we will do everything we can to ensure that taxpayer money intended for our veterans is put to its proper use, not siphoned off by the people and organizations who are entrusted with helping them.”

“King tried to use his position to enrich himself at the expense of veterans who have honorably served our country,” said FBI Special Agent in Charge DeSarno. “This guilty plea makes it perfectly clear that such activity by anyone affiliated with the U.S. government will not be tolerated. The FBI will work closely with our partners to continue to aggressively investigate allegations of corruption.”

“King’s plea is a win for VA and our veterans,” said Kim Lampkins, Special Agent in Charge of the VA-OIG Mid-Atlantic Field Office.  “It sends a clear message that VA OIG is dedicated to prosecuting those that take advantage of VA programs that are intended to help our veterans and their families.”

According to King’s admissions made in connection with his plea, the Vocational Rehabilitation and Employment (VR&E) provides disabled U.S. military veterans with education and employment-related services.  VR&E program counselors advise veterans under their supervision which schools to attend and facilitate payments to those schools for veterans’ tuition and necessary supplies.

From 2015 through 2017, King, using his position as a VR&E program counselor, demanded and received cash bribes from the owners of Atius Technology Institute (Atius), Eelon Training Academy (Eelon), and School A, a school purporting to specialize in physical security classes.  King facilitated over $2 million in payments to Atius, over $83,000 to Eelon, and over $340,000 to School A, all in furtherance of King’s separate agreements with the respective school owners to commit bribery and defraud the VA.  King agreed with Poawui and Stevens that they would each pay him, in cash, seven percent of the money they received from the VA in exchange for King steering veterans to their schools and facilitating VA payments.  King similarly accepted cash payments from the owner of School A, who is identified as Person A in the Information, in exchange for the same official acts.

In order to maximize the profits from their fraud, all three school owners sent King and other VA officials false information about the education being provided to veterans, and King facilitated payments to all three schools knowing this information was false.  King also admitted to repeatedly lying to veterans under his supervision in order to convince them to attend Atius, Eelon, or School A.  For example, King falsely instructed one veteran that, unless he attended School A, his VR&E program benefits would “lapse.”  King insisted that this veteran enroll in School A despite the veteran’s protests that he could not engage in physical security work due to a physical disability, and despite the fact that the veteran had enrolled in the VR&E program to pursue his dream of becoming a baker.

In early 2017, the VA initiated a fact-finding inquiry into Atius based on complaints by students as to the quality of education at the school.  In August 2017, after King became aware of the inquiry, he created a falsified site visit report and instructed Poawui to send it to another VA official, all in an effort to obstruct the VA’s inquiry into Atius.  In January 2018, after Poawui had begun to cooperate with the government in its investigation, King attempted to convince Poawui to lie to the grand jury about the purpose of the bribe payments.

King’s plea is the result of an ongoing investigation by the FBI’s Washington Field Office and the VA Office of Inspector General.  Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section, former Assistant U.S. Attorney and current Fraud Section Trial Attorney Sonali D. Patel, and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.  Former Assistant U.S. Attorney Adrienne Dedjinou and Paralegal Josh Fein of the U.S. Attorney’s Office for the District of Columbia also assisted with the investigation.

An Ohio man has been arrested and charged by criminal complaint with attempting to provide material support to ISIS-affiliated foreign terrorist organizations. Naser Almadaoji, 19, an Iraqi-born naturalized U.S. citizen, was arrested yesterday at John Glenn International Airport in Columbus, Ohio. It is alleged Almadaoji intended to travel through Kazakhstan on his way to Afghanistan, where he intended to join with, and fight for, ISIS.

Assistant Attorney General for National Security John C. Demers, United States Attorney Benjamin C. Glassman for the Southern District of Ohio and Assistant Director Michael Garrity of the FBI’s Counterterrorism Division made the announcement.

“Naser Almadaoji allegedly attempted to seek terrorist training in weapons and tactics and discussed a willingness to conduct terrorist ‘projects’ in the United States on behalf of foreign terrorist groups,” said Assistant Attorney Demers. “Protecting America from terrorist activity, including conduct like this, remains the highest priority of the Department of Justice.” 

“This is the third individual arrested by the FBI on terrorism charges in just over a week.  As demonstrated by these arrests -- two in Ohio and one in Illinois -- the threat posed by terrorism remains extremely serious,” said Assistant Director McGarrity. “The FBI is working with our law enforcement partners day and night through our Joint Terrorism Task Forces across the nation to identify terrorists and those who support them.  The American public also has an important role to play, and we urge anyone who sees something suspicious to contact law enforcement.  Your tips are vitally important to protecting our country.”

“According to the charging document, Almadaoji wanted to make his way to Afghanistan to train with an ISIS organization,” U.S. Attorney Glassman said. “He allegedly pledged allegiance to the leader of ISIS in a video in which he wore a head scarf, and had plans to cause conflict in America between the United States Government and anti-government militias. These are serious allegations, and thwarting terrorist threats remains a top priority for the United States Attorney’s Office.”

According to an affidavit filed in support of the criminal complaint, Almadaoji purchased a plane ticket for travel on October 24. It is alleged that Almadaoji intended to travel to Astana, Kazakhstan, where he planned to be smuggled into Afghanistan so that he could receive military training from ISIS Wilayat Khorasan and then fight for the Islamic State (or one of its affiliates). Almadaoji explained to an individual whom he believed to be in contact with ISIS that he wanted “weapons experts training, planning, executing, hit and run, capturing high value targets, ways to break into homes and avoid security guards. That type of training.”

It is alleged that, between February 16 and 24, 2018, Almadaoji traveled to Egypt and Jordan. Following that travel, in August 2018, Almadaoji allegedly communicated online with an individual he believed was a contact with ISIS organizations. He represented that he tried to join a terrorist organization during his travels to Jordan and Egypt stating, “I don’t wanna say here why I was in Egypt but him [an Egyptian associated] and I planned something and it didn’t work at [sic] well.”

In the same month, it is alleged that Almadaoji told a second individual online – whom he also believed to be associated with ISIS – that he was “always willing” to assist with “projects” in the United States.

According to the affidavit, Almadaoji pledged allegiance to ISIS and discussed with the second contact that he planned to cause the collapse of the United States by starting a conflict between the United States Government and anti-government militias.” Almadaoji allegedly recorded and sent a video of himself wearing a headscarf and pledging allegiance to the leader of the Islamic State.

It is further alleged that Almadaoji translated ISIS propaganda from Arabic to English, and told his contact, “Don’t thank me . . . it’s my duty.”

Attempting to provide material support and resources to a foreign terrorist organization is a federal crime punishable by up to 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.

Assistant Attorney General Demers and U.S. Attorney Glassman commended the investigation of this case by the FBI.

The case is being prosecuted by Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section and Assistant United States Attorney Dominick S. Gerace. A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division today announced the formation of the Appalachian Regional Prescription Opioid Strike Force (ARPO Strike Force), a joint law enforcement effort that brings together the resources and expertise of the Health Care Fraud Unit in the Criminal Division’s Fraud Section (HCF Unit), the U.S. Attorney’s Offices for nine federal districts in five states, as well as law enforcement partners at the FBI, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and U.S. Drug Enforcement Administration (DEA).  The mission of the ARPO Strike Force is to identify and investigate health care fraud schemes in the Appalachian region and surrounding areas, and to effectively and efficiently prosecute medical professionals and others involved in the illegal prescription and distribution of opioids.

Assistant Attorney General Benczkowski was joined in the announcement by U.S. Attorney Robert M. Duncan Jr. for the Eastern District of Kentucky; U.S. Attorney Russell M. Coleman for the Western District of Kentucky; U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio; U.S. Attorney William J. Powell for the Northern District of West Virginia; U.S. Attorney Michael B. Stuart for the Southern District of West Virginia; U.S. Attorney J. Douglas Overbey for the Eastern District of Tennessee; U.S. Attorney Donald Q. Cochran for the Middle District of Tennessee; U.S. Attorney D. Michael Dunavant for the Western District of Tennessee; U.S. Attorney Jay E. Town for the Northern District of Alabama; Assistant Director Robert Johnson of the FBI’s Criminal Investigative Division; Deputy Inspector General for Investigations Gary L. Cantrell of the Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Administrator John J. Martin of the DEA Diversion Control Division.

“While the opioid epidemic continues to inflict untold pain and suffering on people across the country, the devastation in the Appalachian region and adjacent areas has been particularly staggering,” said Assistant Attorney General Benczkowski.  “It is all the more reprehensible when unscrupulous physicians and pharmacies contribute to the epidemic by illegally supplying dangerous prescription painkillers.  Working with our partners in U.S. Attorney’s Offices and law enforcement, the Appalachian Regional Prescription Opioid Strike Force will combat illegal prescription opioids and health care fraud by holding accountable corrupt medical professionals who seek to profit off the crisis of opioid addiction.” 

“The creation of the Appalachian Regional Prescription Opioid Strike Force will bring together critical resources from the FBI and our partners to fight health care fraud in this region and the growing opioid epidemic that faces the United States,” said FBI Assistant Director Johnson.  “Healthcare fraud touches every corner of the United States, and through this strike force, the FBI will continue our tireless work to combat illegal opioid prescriptions and bring to justice those medical professionals who put their greed over the health and wellbeing of their patients.”

“The opioid epidemic has had a devastating impact on Americans across the country, including the people of the Appalachian region,” said HHS-OIG Deputy Inspector General for Investigations Cantrell. “The Strike Force model is a proven mechanism to target illicit conduct and hold accountable criminals involved in illegal opioid prescription and distribution schemes.  We will continue to work closely with our federal, state, and local law enforcement partners to curb this damaging epidemic.”

“Our nation’s opioid crisis requires us to work with unprecedented urgency in attacking drug diversion at every level,” said DEA Assistant Administrator Martin.  “These joint strike force efforts will save lives, while allowing us to better target and bring to justice those who facilitate addiction and profit at the expense of the weakest and most afflicted.”

Prior to this announcement, the HCF Unit operated Medicare Fraud Strike Force’s in 12 locations across the United States including Miami, Florida; Los Angeles, California; Detroit, Michigan; Houston, Texas; Brooklyn, New York; Baton Rouge and New Orleans, Louisiana; Tampa/Orlando, Florida; Chicago, Illinois; and Dallas, Texas, along with a Corporate Strike Force located in Washington, D.C., and the Newark/Philadelphia Regional Medicare Fraud Strike Force.  The Strike Forces represent a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI, HHS-OIG and the DEA.

The ARPO Strike Force will be made up of prosecutors and data analysts with the HCF Unit, prosecutors with the nine U.S. Attorney’s Offices in the region, and special agents with the FBI, HHS-OIG and DEA.  The ARPO Strike Force will operate out of two hubs based in the Cincinnati/Northern Kentucky, and Nashville, Tennessee, areas, supporting the nine districts that make up the ARPO Strike Force region.  In addition, the APRO Strike Force will work closely with other various federal law enforcement agencies, including the U.S. Postal Inspection Service and IRS Criminal Investigation, and State Medicaid Fraud Control Units. 

The ARPO Strike Force will target criminal conduct associated with the improper prescription and distribution of prescription opioids and other dangerous narcotics throughout the Appalachian region and surrounding areas – focusing on criminal conduct by physicians, pharmacists, and other medical professionals.  The ARPO Strike Force will also investigate and prosecute violations of health care fraud whenever such fraud is detected throughout the region.

In June, Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III noted the success of the Strike Force model while announcing the largest ever health care fraud enforcement action involving 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings.  Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.  More information can be obtained at https://www.justice.gov/opa/documents-and-resources-june-28-2018.

In August, Assistant Attorney General Benczkowski announced the Newark/Philadelphia Medicare Fraud Strike Force, which focuses on health care fraud and illegal opioid prescriptions in the Newark/Philadelphia region.

The Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the prosecutors in the 12 Medicare Fraud Strike Force locations have charged over 4,000 defendants who collectively have falsely billed the Medicare program for over $14 billion.  Since January 2017, the HCF Unit has charged over 85 defendants, including 33 doctors with the illegal prescription of opioids (nearly 30 million pills).

Attorney General Jeff Sessions today announced $35 million in funding to support law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, and prescription opioids, and another $35 million to establish new programs to provide services to children victims of the opioid crisis.

The announcement was made at the Department’s National Opioid Summit, which coincides with Red Ribbon Week, a yearly October event encouraging students, parents, schools, and communities to promote drug-free lifestyles. Additionally, the upcoming Drug Enforcement Administration’s (DEA) National Prescription Drug Take Back Day on October 27 provides an opportunity for Americans to prevent overdose deaths and drug addictions before they start. Last year, the Department expanded on DEA's Drug Takeback Days and collected more than 2.7 million pounds of expired or unused prescription drugs since April 2017. The Department of Justice also recently announced a total of almost $320 million in unprecedented funding to combat the opioid crisis in America.

"Ending the opioid crisis is a top priority for this administration, and under the leadership of President Trump, the Department of Justice has taken historic action," Attorney General Sessions said. "We have already seen a nearly 20 percent decline in opioid prescription rates nationwide in 2017 and 2018, and we are cutting opioid production by an average of 10 percent for next year. Preliminary data also show that after years of large and sustained increases, overdose deaths may have finally started to decrease.  Today, we are announcing millions in grants intended to help the most vulnerable victims of the opioid crisis: children.  The Department is investing almost $35 million to assist youth victims of this crisis through enhancing community programs, supporting partnerships with victim service providers, and establishing mentoring programs. We are also announcing another $35 million for state law enforcement in states with high levels of heroin and methamphetamine abuse.  These measures take us one step closer to bringing this crisis to an end.”

In 2017, more than 72,000 Americans lost their lives to drug overdoses, an increase from the 64,000 overdose deaths in 2016, according to the Centers for Disease Control and Prevention. The majority of these deaths can be attributed to opioids, including illicit fentanyl and its analogues.

In FY 2018, the Office for Victims of Crime (OVC) made awards to 41 sites and a technical assistance provider totaling $29.8 million. This is in addition to about $4.8 million in transferred funds to the Bureau of Justice Assistance (BJA) to support partnership between victim service providers and first responders who encounter an overdose where children are present. The OVC program will support partnerships between victim service providers and first responders who encounter an overdose where children are present, through direct services, training and technical assistance, and efforts to build direct victim assistance services through community-based systems. The funding will provide funding for school-based programs, foster care and child welfare programs, counseling and assistance programs, child advocacy programs, court-appointed special advocates, mentoring and tutoring programs, civil legal services, and other programs.

The Community Oriented Policing Services (COPS) Office is awarding more than $27.8 million in grant funding to 17 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF). AHTF provides two years of funding directly to law enforcement agencies in states with high per capita levels of primary treatment admissions for heroin and other opioids. This funding will support the location or investigation of illicit activities related to the distribution of heroin or the unlawful distribution of prescription opioids.

Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office will also award $7.2 million to nine state law enforcement agencies. These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies will be awarded two years of funding through CAMP to support the investigation of illicit activities related to the manufacture and distribution of methamphetamine.

The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: /media/973761/dl?inline

The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: /media/973756/dl?inline

The complete list of OVC awards can be found here: https://ojp.gov/newsroom/pressreleases/2018/ojp-news-10252018c.pdf

In recognition of National Domestic Violence Awareness Month, Deputy Attorney General Rod Rosenstein met with Acting Director of the Office on Violence Against Women (OVW) Katharine Sullivan and other senior Justice officials today to discuss the Violence Against Women Act’s (VAWA) essential focus on criminal justice responses to domestic violence.  Deputy Attorney General Rosenstein also announced new OVW funding for the department’s Tribal Special Assistant U.S. Attorney (SAUSA) program. 

“There is no place in our society for domestic violence, and holding perpetrators accountable and providing services to victims is a critical part of the Department’s response,” said Deputy Attorney General Rosenstein. “During this National Domestic Violence Awareness Month, I encourage law enforcement, prosecutors, judges, and other criminal justice professionals to speak out about domestic violence and redouble efforts to bring perpetrators to justice.  I am especially pleased to announce new funding to support four new Tribal Special Assistant U.S. Attorneys, whose collaboration across the tribal and federal jurisdictional landscape is a model for effective prosecution of violence against women.”

OVW’s Tribal Special Assistant United States Attorneys (Tribal SAUSAs) Program is another Department initiative supporting innovative prosecutorial collaborations. These prosecutors bring cases in both tribal and federal courts, and help ensure that tribal and federal authorities have a seamless response in prosecuting cases under their jurisdiction. In OVW’s pilot project, Tribal SAUSAs reported a wide range of successes, including prosecution of cases that otherwise may not have been brought.

Today, OVW is announcing new Tribal SAUSA Program awards of $437,500 each to the following four tribes:

• Salt River Pima-Maricopa Indian Community (Arizona);
• Confederated Tribes of the Umatilla Indian Reservation (Oregon);
• Rosebud Sioux Tribe (South Dakota); and
• Confederated Tribes of the Colville Reservation (Washington).

Commemorated in the United States since 1987, National Domestic Violence Awareness Month educates the public, commemorates and honors victims and survivors, and connects service providers across the country. President Trump has continued the tradition of issuing a presidential proclamation to recognize October as National Domestic Violence Awareness Month.

Strengthening criminal justice is the core component of VAWA, and Acting Director Sullivan pointed to the Improving the Criminal Justice Response to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program (ICJR) as the “backbone of VAWA.” ICJR helps communities investigate and prosecute these crimes and keep violent criminals off the street. Since 1997, OVW has made 1,655 ICJR grant awards totaling over $847,000,000. In fiscal year 2018, OVW made 54 ICJR awards totaling $32,610,116.

This funding has supported justice responses including dedicated police and prosecution units, specialized courts, and offender monitoring in 538 communities. For example, Fairfax County in Virginia uses ICJR funding to support a specialized prosecutor for domestic violence and stalking cases and to monitor the enforcement of civil protective orders.

ICJR also funds unique collaborative approaches, such as Family Justice Centers – “one stop shops” housing police, prosecution, and victim services in one place – and multidisciplinary teams that decrease domestic violence homicides. Since 2012 OVW has awarded over $24 million in ICJR funding to reduce domestic violence homicide, including pilot sites, nationwide training, and research. This includes six awards totaling $3,299,977 for fiscal year 2018.

Many victims also face substance abuse issues, and may struggle to access the justice system and get the protection they need. OVW is today announcing an award of $450,000 to the Alliance for HOPE International to train Family Justice Centers to address this complex challenge. The Alliance for HOPE International will partner with the National Center on Domestic Violence, Trauma, and Mental Health.

VAWA was first authorized in 1994 and focused on strengthening the criminal justice response to domestic violence. VAWA was reauthorized in 2000, 2005, and 2013, and each reauthorization included expansions such as addressing elder abuse, combatting stalking, and serving victims of sex trafficking in Indian Country. More information about VAWA is available at www.justice.gov/ovw/legislation.

A 64-year-old Grapevine, Texas, man was sentenced today to 12 months in federal prison for a hate crime, announced Acting Assistant Attorney General John Gore for the Civil Rights Division and U.S. Attorney for the Northern District of Texas Erin Nealy Cox.

In July, Glenn Eugene Halfin pleaded guilty to interfering with housing rights after he repeatedly threatened and intimidated an African American family living in the apartment above his own because of their race.

In court documents, Mr. Halfin admits that in December 2017, he purchased a baby doll at Walmart, fashioned a rope into a noose, and slipped the noose around the baby doll’s neck. He then hung the noose from the railing directly in front of the staircase the victims used to access their apartment.

The defendant “recognized that this display would be particularly intimidating for the African-American victims who had a young daughter,” documents say.  

“The Justice Department will not tolerate unlawful acts of racial intimidation,” said Acting Assistant Attorney General John Gore. “We will continue to prosecute hate crime offenders like Halfin to ensure that all families can feel safe in their own homes, regardless of their race, religion, or national origin.”

“No family should be afraid for children in their own home,” said U.S. Attorney Nealy Cox. “The Northern District of Texas will not tolerate crimes born of bigotry. Prosecuting those that persecute others based on race is a priority for my office.”  

The FBI and the Grapevine Police Department, in conjunction with the Tarrant County District Attorney’s Office, conducted the investigation. Trial Attorney Rebekah Bailey of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Nicole Dana prosecuted the case.

Four additional members of Chicago area criminal street gang, the Latin Dragons Nation, have been charged with racketeering conspiracy and other related offenses in a second superseding indictment unsealed today, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana announced. 

According to the second superseding indictment, the Latin Dragons Nation is a criminal street gang that originated in Chicago and spread to other areas, including the Northern District of Indiana.  Members and associates of the Latin Dragons Nation allegedly engage in acts of violence, including murder, attempted murder, witness tampering, and assault, to protect the gang’s territory and drug operations.  Latin Dragons Nation gang members are required by gang rules to take immediate violent action against anyone who threatens them, and gain respect and status within the gang by doing so.

The four additional defendants charged in the nine-count indictment are Gustavo Colunga aka “Barkley,” 25, of Hammond, Indiana; Joshua Harris-White aka “BJ,” 24, of Chicago, Illinois; Mario Colunga, 30, of Whiting, Indiana; and Luis Colunga, aka “Panson,” 28, of Chicago, Illinois.

Among the various alleged offenses that the second superseding indictment added are:

• On or about July 27, 2015, allegedly Gustavo Colunga and Joshua Harris-White approached Victim #6, a juvenile, whom Gustavo Colunga and Harris-White believed was a rival gang member. Harris-White held Victim #6 down, while Gustavo Colunga stabbed Victim #6 in the throat. Both Gustavo Colunga and Harris-White fled in a vehicle driven by a third Latin Dragon Nation member.
• On or about Nov. 22, 2017, allegedly while Mario Colunga was driving a vehicle occupied by Ralph Mendez Jr., another Latin Dragon Nation member and three female associates, Mendez Jr. did a drive-by shooting in a rival gang neighborhood in Chicago, Illinois.
• On different occasions, allegedly Luis Colunga delivered an H&R .38 caliber revolver, and Gustavo Colunga delivered a Smith & Wesson .45 caliber semi-automatic pistol and Inter Ordnance .380 caliber semi-automatic pistol and a quantity of cocaine to an undercover ATF special agent. 
• On or about Aug. 13, 2018, Gustavo Colunga and Joshua Harris-White sold a Ruger .44 magnum revolver and a quantity of marijuana to an ATF undercover special agent.

The previously indicted defendants, charged in this case are Manuel Diaz aka “Smiley,” 27, of Hammond, Indiana; Eduardo Diaz-Corral aka “Lalo,” 20, of Calumet City, Illinois; Ralph Mendez Jr. aka “Lil Devious,” 22, of Chicago, Illinois; and Joseph Roggenkamp aka “Dro,” 21, of East Chicago, Indiana.  Diaz-Corral and Diaz allegedly participated, respectively, in the murders of Paul Cruz on Nov. 20, 2016, in Chicago, and Charles Berrios on Sept. 30, 2017, in Hammond, Indiana. These murders and other acts of violence are charged in this second superseding indictment.

The second superseding indictment is part of ongoing efforts to curb the activities of violent street gangs in the Northern District of Indiana. 

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.  The maximum penalty for murder in aid of racketeering is death or in the alternative a mandatory life sentence.

This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Hammond Police Department; the East Chicago Police Department; the Merrillville Police Department; the Hobart Police Department and the Lake County Sheriff’s Department along with the Chicago and Calumet City, Illinois Police.  The case is being prosecuted by Trial Attorney Robert S. Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph A. Cooley and David J. Nozick of the Northern District of Indiana.

Alaa Mohd Abusaad was charged today by criminal complaint in Birmingham, Alabama with attempting to provide material support and resources to al Qaeda, a designated foreign terrorist organization, and aiding and abetting others, in violation of Title 18, United States Code, Sections 2339B and 2.  Assistant Attorney General for National Security John C. Demers, United States Attorney Jay E. Town of the Northern District of Alabama, and FBI Special Agent in Charge Johnnie Sharp Jr. of the Birmingham Division made the announcement today.

As set forth in the complaint, Abusaad instructed an FBI undercover employee (UCE) about how to send money to the mujahedeen—fighters engaged in jihad.  Abusaad told the UCE that money “is always needed.  You can’t have a war without weapons.  You can’t prepare a soldier without equipment.”  Abusaad also advised the UCE on how to send money in a manner that would avoid detection by law enforcement, including by using fake names and addresses when conducting electronic money transfers.  Subsequently, Abusaad introduced the UCE to a financial facilitator who could route the UCE’s money to “brothers that work with aq” (meaning al Qaeda).

If convicted, Abusaad faces a maximum penalty of 20 years’ imprisonment, a $250,000 fine, and up to a life term supervised release.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge.

 Investigation of the case was conducted by the FBI, including FBI offices in Birmingham, Alabama and Cleveland, and Toledo, Ohio.  The prosecution is being handled by Assistant United States Attorneys Henry Cornelius and Manu Balachandran, and Trial Attorney Jennifer Levy of the National Security Division’s Counterterrorism Section.

The charges contained in the complaint are allegations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant EDWARD A. BAZA (“BAZA”), age 65, originally from Guam but residing in Hesperia, California, was sentenced on October 22, 2018, in District Court to a 45-month term of imprisonment, to be followed by two years of supervised release, and 50 hours of community service.  The Court also ordered BAZA to pay a mandatory $100 assessment fee.  In addition, defendants who are convicted of a federal drug offense may no longer qualify for certain federal benefits.

          On June 12, 2018, BAZA pled guilty to the charge of Unlawful Use of the Mail to Facilitate the Conspiracy to Distribute Methamphetamine, in violation of 18 U.S.C. § 1952(a)(3)(A).  The investigation revealed that BAZA and other individuals used the mail system in an attempt to distribute methamphetamine on Guam.  On August 19, 2013, a package addressed to BAZA’s girlfriend was searched pursuant to a federal search warrant. Agents found methamphetamine concealed inside a Chips Ahoy cookie container.  BAZA and his girlfriend went to the post office to claim the package.  The substance was later determined to contain 137.3 grams of methamphetamine hydrochloride, with a 90% purity.  The drugs had a street value of up to $123,000.

          The U.S. Postal Service and the Drug Enforcement Administration conducted the investigation.  The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.

A Hillsboro, Oregon, tax fraud promoter was sentenced to ten years in prison today for submitting fraudulent financial instruments to financial institutions and the U.S. Treasury and failing to file income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents and evidence presented at his April 2017 jury trial, from approximately 2008 through 2015, Winston Shrout, 70, created and submitted more than 300 fraudulent financial instruments with the intent of defrauding financial institutions and the U.S. Treasury.  Shrout held seminars and private meetings to promote and market the use of these fraudulent financial instruments to pay off debts, including federal taxes.  Shrout sold recordings of his seminars, templates for fraudulent financial instruments and other materials through his website.

The evidence presented at trial also proved that Shrout failed to file his 2009 through 2014 tax returns despite earning substantial income from seminars, licensing fees associated with the sale of his products and annual pension payments. Shrout admitted during trial that he had not paid income tax for at least twenty years.

In addition to the term of imprisonment, U.S. District Judge Robert E. Jones ordered Shrout to serve five years of supervised release and pay restitution to the IRS.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Stuart Wexler and Lee Langston of the Tax Division, who prosecuted the case.  Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the District of Oregon for their support during the investigation and prosecution of this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

A high-ranking North Carolina leader of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, was sentenced today to 19 years in prison for racketeering conspiracy.  Also sentenced today were two other members of the Bloods gang.  Sixty-seven defendants have now either pleaded guilty or have been convicted at trial.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John A. Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.

Cynthia Gilmore, aka Cynthia Young and Lady Bynt, 43, of Raleigh, North Carolina, was sentenced by Chief Judge Frank D. Whitney to serve 228 months in prison.  Gilmore had been convicted, together with UBN Godfathers Pedro Gutierrez and James Baxton, by a federal jury sitting in Charlotte on May 17, following a two-week trial.  In addition, two other Bloods members were also sentenced today.  Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, was sentenced by Judge Whitney to serve 43 months in prison.  Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, was sentenced by Judge Whitney to serve 70 months in prison.

“As a trusted leader of the Nine Trey Gangsters, Cynthia Gilmore played an integral role in the gang’s violent mission by trafficking narcotics, robbing other drug dealers, and acting as a communications conduit for Pedro Gutierrez, the gang’s incarcerated leader who had previously ordered a gang war,” said Assistant Attorney General Benczkowski.  “Now totaling 67 defendants adjudicated guilty, the Department of Justice’s prosecution of the Nine Trey Gangsters continues to disrupt and weaken this violent prison and street gang, and serves as a testament to what cooperation between federal, state, and local law enforcement can accomplish.”

“Cynthia Gilmore was a gang member who had risen to the leadership ranks within the Nine Trey Gangsters, a powerful set of the Bloods in North Carolina, said U.S. Attorney Murray.  “As a gang member, Gilmore engaged in racketeering criminal acts, including robbery and drug trafficking, to support the gang and pay her dues.  As a trusted gang leader, Gilmore had direct access to the gang’s highest leadership, including to the Bloods’ Godfather, Pedro Gutierrez, with whom she had face-to-face meetings while he was incarcerated in New York.  As the Godfather’s messenger, Gilmore assisted Gutierrez in maintaining control over the gang, and made certain that other gang members knew, understood, and executed Gutierrez’s orders.  With another Bloods leader and two more gang members put behind bars, my office continues our work to dismantle criminal enterprises and to protect the people of the Western District from violent street gangs.”

In February 2017, President Donald Trump directed the Department of Justice “to reduce crime in America,” and Attorney General Jeff Sessions has made violent crime reduction and eliminating gangs a priority during his tenure. In June 2018, the Attorney General announced the largest increase in Assistant U.S. Attorneys—311 new prosecutors, including eight in North Carolina—to combat violent crime and carry out other Department priorities.

Additionally, Attorney General Sessions last year announced a reinvigorated Project Safe Neighborhoods program aimed at reducing the rising tide of violent crime in America. The U.S. Attorney’s Office for the Western District of North Carolina is an active participant in PSN.

Deputy Attorney General Rod Rosenstein mentioned many of these announcements and more when he delivered remarks in August to the 17th Annual Gangs Across the Carolinas Conference, a conference which Attorney General Sessions delivered remarks to in August 2017.

According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993.  UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks.  Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown.  UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members.  The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”

According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN.  Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders.  Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93.  A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business.  UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.

According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and “Godfather.” 

Evidence at trial established that Gilmore was a high-ranking leader of the Nine Trey Gangsters in North Carolina with the rank of “Low,” and that she was involved in drug trafficking and the robbery of other drug dealers.  Evidence also established that Gilmore traveled regularly between North Carolina and New York State, where she met with Pedro Gutierrez, the highest ranking leader of the United Blood Nation, who was incarcerated at the time.  Evidence further established that Gilmore assisted Gutierrez’s control of the Bloods organization in North Carolina by sending him dues and by passing along communications from Gutierrez to other gang leaders and members.

In all, 67 defendants have been adjudicated guilty in this case, including the three defendants who were found guilty at trial; 64 defendants have pleaded guilty in this investigation.  Twelve defendants in high-ranking leadership positions have been convicted:

• Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine.  Atkinson was sentenced on Aug. 21 to a term of 208 months in prison;
• James Baxton, aka Frank White and Grown, 44, of New York City, New York,  was convicted at trial on May 17.  Trial evidence established that Baxton was a “Worldwide High” of the Nine Trey Gangsters and that, while incarcerated in the New York State Department of Corrections, Baxton trafficked heroin within the prison system and engaged in wire fraud by threatening the relatives of other incarcerated inmates.  Baxton was sentenced on Sept. 4 to a term of 240 months in prison, to be served federally after completing a term in New York State prison;
• Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics.  According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony.  Coker was also recorded discussing a potential murder of a rival gang member.  Coker was sentenced on June 18, to a term of 140 months in prison;
• Pedro Gutierrez, aka Magoo, Light, and Inferno, of New York City, New York, was convicted at trial on May 17.  Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN.  As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011, directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.  Gutierrez was sentenced on Sept. 4 to a term of 240 months in prison, to be served consecutively to the remainder of a New York State sentence for murder;
• Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of her plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton.  Harrison was sentenced on June 18, to a term of 32 months in prison;
• Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine.  According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low.”  Haynes was sentenced on Aug. 15, to a term of 64 months in prison;
• Bobby Earl Hines, aka Swahili Red, 35, of North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of his plea agreement, Hines admitted to holding the leadership rank of “High”;
• Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud.  According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards.  Lattibeaudiere was sentenced on June 19, to serve 56 months in prison;
• MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and conspiracy to possess with intent to distribute heroin, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low;”
• Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy.  During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN.  Rosero was sentenced on July 31, to 87 months in prison, to be served federally after completing a sentence in New York State;
• Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy.  Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”  Porsha Rosero was sentenced on July 31, to serve 21 months in prison; and
• Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime.  According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.”  Wilson was sentenced on July 30, to serve 82 months in prison.

The following 34 defendants have also pleaded guilty and have been sentenced in this investigation:

• Sherman Devante Addison, aka Ace, 24, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy.  Addison was sentenced on Aug. 15, to serve 33 months in prison;
• Freddrec Deandre Banks, aka Drec and Banga, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy.  Banks was sentenced on Aug. 14, to serve 33 months in prison;
• Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy.  Blakeney was sentenced on July 31, to serve 18 months in prison;

• Shakira Monique Campbell, aka Lady Rage, 24, of Charlotte, North Carolina, pleaded guilty to possession of cocaine.  Campbell was sentenced to serve eight months in prison;
• Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking.  Covington was sentenced to serve 87 months in prison
• Alex Levi Cox, aka Quick, 28, of Loris, South Carolina, pleaded guilty to racketeering conspiracy.  Cox was sentenced on Aug. 21, to serve 17 months in prison;
• Richard Diaz, aka Damu, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  Diaz was sentenced on Aug. 15, to serve 33 months in prison;
• Christopher Dentre Hamrick, aka Red Dot, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon.  Hamrick was sentenced on May 30, to serve 64 months in prison;
• Lavaughn Antonio Hanton, aka Killem and Billy-D, 35, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  Hanton was sentenced on Aug. 21, to 216 months in prison;
• Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  Harrison was sentenced on June 25, to serve 27 months in prison;
• Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy.  Hicks was sentenced on May 31, to serve 24 months in prison;
• Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy.  Hopper was sentenced on June 20, to serve 27 months in prison;
• Donl Lequintin Hunsucker, aka Remy, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  Hunsucker was sentenced on Aug. 15, to serve 52 months in prison;
• Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  Jackson was sentenced on Aug. 21, to serve 27 months in prison;
• Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy.  Johnsom was sentenced on May 30, to serve 57 months in prison;
• Joe Tarpeh Johnson, aka JR, Big Pusha and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud.  Johnson was sentenced on April 28, to serve 31 months in prison;
• Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  Johnson was sentenced on July 9, to serve 18 months in prison;
• Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  King was sentenced on July 30, to serve 25 months in prison;
• David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy.  Lowe was sentenced on May 29, to serve 24 months in prison;
• Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon.  Lytle was sentenced on Aug. 22, to serve 46 months in prison;
• Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy.  Manning was sentenced on July 31, to serve 21 months in prison;
• Travis McClain, aka Fridaay Daa Thuurteenth, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  McClain was sentenced on Aug. 14, to serve 27 months in prison;
• Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  McIntosh was sentenced on July 30, to serve 18 months in prison;
• D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  McNeil was sentenced on June 20, to serve 33 months in prison;
• Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy.  Omotosho was sentenced on May 29, to serve 33 months in prison;
• James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  Pegues was sentenced on May 29, to serve 33 months in prison;
• Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy.  Peterkin was sentenced on June 25, to serve 21 months in prison;
• Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  Potts was sentenced on May 29, to serve 30 months in prison;
• Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud.  Sattar was sentenced on Aug. 22, to serve 33 months in prison;
• Anthony Bernard Smith, aka Redd Lion, 25, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy.  Smith was sentenced on April 23, to serve 44 months in prison;
• Cedric Surratt, aka Hollywood, 5-Star and Lingo, 30, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  Surratt was sentenced on June 20, to serve 28 months in prison;
• Peatrez Lamar Teaste, aka P-Wheezy, 25, of Loris, South Carolina, pleaded guilty to racketeering conspiracy.  Teaste was sentenced on Aug. 21, to serve 109 months in prison;
• Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud.  Turner was sentenced on April 23, to serve 35 months in prison; and
• Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.  Watkins was sentenced on July 30, to serve 27 months in prison.

   The following 19 defendants have also pleaded guilty and are awaiting sentencing in this case:

• Aaron Demitri Alexander, aka A Dawg, 25, of Charlotte, North Carolina, pleaded guilty on July 9, to racketeering conspiracy;
• Antarious Quashard Byers, aka Bang, 25, of Shelby, North Carolina, pleaded guilty on Aug. 28, to racketeering conspiracy;
• Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession with intent to distribute cocaine;
• Marquel Michael Cunningham, aka Omega, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• James Walter Dowdle, aka Staxx, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and use of a firearm in furtherance of a crime of violence;
• John Paul Durant, aka JP, Glock and Gudda, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Shamon Movair Goins, aka Rugie, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Jasmin Reikeem Hicks, aka Rude, 28, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
• Wesley Javon Howze, aka Drama, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Juan Cruz Leon, aka Jefe, 22, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Terry Lavon Maddox, aka Turbo, 27, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and possession with intent to distribute cocaine base;
• Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and two counts of possession with intent to distribute cocaine base;
• Christopher Lashon Miller, aka Dro, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Johnny Thomas Mitchell, aka Joker, 38, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Christopher O’Brien Moore, aka Ratchet, 23, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Kenneth Marquise Ruff, aka Red Hot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty on Jan. 5, to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
• Jhad Elijah Thorbourne, aka Flight, 24, of Charlotte, North Carolina, pleaded guilty on July 19, to racketeering conspiracy; and
• Patrick Wray, aka Ike and Murda, 30, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy.

The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations.  Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program.  OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

The former Chief Financial Officer of an Austin, Texas based company pleaded guilty today to willfully failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. 

According to court documents, from 2010 to 2016, John Herzer was the CFO of AXO Staff Leasing (AXO), a professional employer organization.  Herzer handled all of the company’s finances and had final authority over which creditors to pay and when to pay them. Herzer was also responsible for collecting and paying to the IRS taxes withheld from AXO’s employees’ wages.  Despite this obligation, Herzer did not pay to the IRS AXO’s employment tax withholdings and instead used more than $4.9 million of those funds for his own benefit including paying personal expenses and transferring millions of dollars to his own bank accounts.  In total, Herzer’s fraudulent conduct caused a tax loss to the IRS of more than $13 million.

A sentencing date has not yet been scheduled. Herzer faces a statutory maximum sentence of five years imprisonment, as well as a term of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Robert Kemins and David Zisserson, who prosecuted the case.  Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Western District of Texas (Austin Division) for their substantial assistance.

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

Eight New Orleans, Louisiana-area defendants have pleaded guilty for their participation in a conspiracy to obtain oxycodone through fraud by using fictitious prescriptions.  Six of the eight defendants have also pleaded guilty for the roles in a scheme to possess with intent to distribute oxycodone on the black market. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana, Special Agent in Charge Eric J. Rommal of the FBI’s New Orleans Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office and Special Agent in Charge Stephen G. Azzam of the U.S. Drug Enforcement Administration (DEA)’s New Orleans Field Division made the announcement. 

Jesse J. Wildenfels, 39, of Metairie, Louisiana, pleaded guilty today to a dual-object conspiracy to acquire and obtain possession of oxycodone by fraud and to possess oxycodone with the intent to distribute.  On Oct. 17, Luis R. Cabrera Jr., 38, of Norco, Louisiana; Vicki J. Skeldon, 44, of Metairie; Stephanie N. Free, 28, of Gretna, Louisiana; Jarrod A. Doubleday, 47, of Livingston, Louisiana; John A. Doubleday, 52, of Place, Louisiana; Whitney J. Swan III, 48, of Saint Rose, Louisiana; and Cynthia B. Foret, 41, also of Norco, pleaded guilty to their roles in violating the Controlled Substances Act.  Cabrera, Skeldon, Free, John Doubleday and Swan pleaded guilty to a dual-object conspiracy to acquire and obtain possession of oxycodone by fraud and to possess oxycodone with the intent to distribute.  Jarrod Doubleday and Foret pleaded guilty to conspiracy to obtain possession of oxycodone by fraud.                                      

“These defendants were responsible for over 10,000 Oxycodone pills flowing onto the streets in and around New Orleans,” said Assistant Attorney General Benczkowski.  “I commend the prosecutors in the Medicare Fraud Strike Force and the U.S. Attorney’s Office, along with our law enforcement partners, for their outstanding efforts to disrupt the illegal sale of opioids on the black market.”

“The proliferation of illegally obtained opioids flooding our community has made a significant contribution to the abuse of prescription drugs which plagues many families,” said U.S. Attorney Strasser.  “Cases such as this shows the commitment DOJ has to our community by combating this growing threat.” 

“Driven by greed and addiction, these eight defendants manipulated a system established to assist patients with legitimate medical conditions,” said FBI Special Agent in Charge Rommal.  “Through their illicit gains, these defendants contributed to the daily oxycodone epidemic taking this nation by storm. By removing these defendants from our streets and communities, the FBI, in conjunction with our federal, state, and local law enforcement partners were able to take the drugs out of an addict’s hands and hopefully save a life or two.”

“The eight individuals involved in this scheme heartlessly contributed to the opioid epidemic plaguing our society today,” said DEA Special Agent in Charge Azzam.  “This malicious conduct puts lives at risk and won’t be tolerated.  DEA, along with our law enforcement partners, will continue to aggressively pursue those who seek to perpetuate and profit from the opioid crisis in this country and bring them to justice.”

The charges stem from the defendants’ involvement in a prescription drug diversion conspiracy in the greater New Orleans area.  The conspiracy in total resulted in the diversion of approximately 10,000 oxycodone pills on the black market. 

In pleading guilty, Cabrera, Skeldon, Free, John Doubleday, Swan and Wildenfels admitted that, between February 2017 and June 2018, they either provided their personal identifying information for the purpose of having fictitious prescriptions for oxycodone created in their names or referred co-conspirators for the purpose of having fictitious prescriptions for oxycodone written in their co-conspirators’ names.  The prescriptions were then filled at area pharmacies and a portion of oxycodone pills obtained with those prescriptions were subsequently sold on the black market.  Additionally, in pleading guilty, Jarrod Doubleday admitted to filling fictitious prescriptions for oxycodone in his own name between April 2017 and May 2017.  And, in pleading guilty, Foret admitted to forging prescriptions for oxycodone in her own name and in the name of her co-conspirators between February 2015 and October 2016, which were ultimately filled. 

U.S. District Judge Lance M. Africk for the Eastern District of Louisiana set sentencing for Cabrera, Skeldon, Free, Doubleday and Swan on Jan. 24, 2019, and for Doubleday, Foret and Wildenfels on Feb. 7, 2019.

This case was investigated by the FBI, HHS-OIG, the DEA and the Jefferson Parish Sheriff’s Office.  Trial Attorney Jared Hasten of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana are prosecuting the case.

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

The Department of Justice and the Department of the Interior announced a dramatic expansion of the federal government’s key program that provides tribes with access to national crime information databases, the Justice Department’s Tribal Access Program for National Crime Information (TAP). 

By the end of 2019, the Justice Department will expand the number of TAP participating tribes by more than 50 percent—from 47 tribes to 72.  The Department of the Interior (DOI) will fund the instillation of TAP Kiosks at three locations where the BIA-Office of Indian Services (BIA-OIS) deliver direct service social services by the end of 2019 and DOI aims to expand TAP access at all 28 BIA-Office of Justice Services (BIA-OJS) operated law enforcement agencies and detention service centers.  These BIA locations will provide some degree of access to TAP for services delivered to more than 50 tribal communities that currently do not have any direct access. 

“For far too long, a lack of access to federal criminal databases has hurt tribal law enforcement—preventing them from doing their jobs and keeping their communities safe,” said Deputy Attorney General Rod Rosenstein.  “With the Tribal Access Program, participating tribes will be able to protect victims of domestic violence, register sex offenders, keep guns out of dangerous hands, and help locate missing people.  This milestone demonstrates our deep commitment to strengthening public safety in Indian country.”

“I am proud to authorize the funding for the expansion of the Tribal Access Program to the Bureau of Indian Affairs to make the future of justice in Indian Country stronger,” said Assistant Secretary for Indian Affairs Tara Sweeney at the 75th National Congress of American Indians Convention today. “The Bureau of Indian Affairs is proud to grant greater access to these important databases at more locations throughout Indian Country. Performing background checks is a critical step in protecting our precious Native children in foster care, and tribal communities served by the BIA will benefit from access to this extensive public safety tool.”

“Access to information is vital to effective law enforcement,” said Trent Shores, U.S. Attorney for the Northern District of Oklahoma and the Chairman of the Attorney General’s Advisory Subcommittee on Native American Issues.  “The Tribal Access Program will enhance and improve the ability of tribal law enforcement officers to serve their communities. The Native American Issues Subcommittee is proud to support the continued expansion of this tool throughout Indian Country.

The Native American Issues Subcommittee (NAIS) is comprised of United States Attorneys with Indian Country in their federal districts. They advise the Attorney General regarding the development and implementation of policies pertaining to justice in Indian Country. The NAIS identified ‘increased law enforcement resources’ as one of four priority areas to improve justice services in Indian Country. Support for and increased dissemination of the TAP was unanimously supported by the US Attorneys at a recent NAIS meeting in Indian Country in Tulsa, Oklahoma.

“We at the BIA-OJS look forward to having direct access to these vital resources,” said Deputy BIA Director for Office of Justice Services Charles Addington. “We have waited years for the opportunity to streamline how we access these critical databases and the funding authorized by AS-IA Sweeney will allow  our law enforcement officers the ability to receive the information they need to do their jobs effectively and keep them safe.”

TAP, offered in two versions, TAP-FULL and TAP-LIGHT, allows tribes to more effectively serve and protect their communities by fostering the exchange of critical data through several national databases through the FBI’s Criminal Justice Information Systems (CJIS) network, including the National Crime Information Center (NCIC), Next Generation Identification (NGI), National Data Exchange (N-DEx), National Instant Criminal Background Check System (NICS), Law Enforcement Enterprise Portal (LEEP) as well as other national systems such as the International Justice and Public Safety Network (Nlets).   TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced nationwide; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.

TAP-FULL consists of a kiosk workstation that provide access to national systems and is capable of processing finger and palm prints, as well as taking mugshots and submitting records to national databases. TAP-LIGHT is software for criminal agencies that include police departments, prosecutors, criminal courts, jails, and probation departments. Both versions provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purpose.  TAP is currently available to 47 tribes nationwide with over 220 tribal criminal justice and civil agencies participating.

For more information on TAP, including a list and map of present TAP-FULL and TAP-LIGHT tribes, visit www.justice.gov/tribal/tribal-access-program-tap

For more information about the Justice Department’s work on tribal justice and public safety issues, visit:  www.justice.gov/tribal

A Centreville, Virginia man was sentenced today to 25 years in prison followed by a lifetime of supervised release for producing child pornography, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division, and Fairfax County Chief of Police Colonel Edwin C. Roessler Jr. announced.

Kenneth Wayne Burk, 37, a power washer, was sentenced by U.S. District Judge Leonie M. Brinkema of the Eastern District of Virginia.

According to court documents, law enforcement began investigating Burk after a minor accused him of sexual abuse.  In 2017, law enforcement seized electronic devices from Burk’s home in Centreville, and a forensic examination of these devices revealed numerous images of Burk sexually abusing the minor between 2013 and 2017.

The case was investigated by the FBI and the Fairfax County Police Department.  Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Whitney D. Russell of the Eastern District of Virginia prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

A criminal complaint was unsealed in Alexandria, Virginia, today charging a Russian national for her alleged role in a Russian conspiracy to interfere in the U.S. political system, including the 2018 midterm election. Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and FBI Director Christopher Wray made the announcement after the charges were unsealed.

“Today’s charges allege that Russian national Elena Alekseevna Khusyaynova conspired with others who were part of a Russian influence campaign to interfere with U.S. democracy,” said Assistant Attorney General Demers. “Our nation is built upon a hard-fought and unwavering commitment to democracy. Americans disagree in good faith on all manner of issues, and we will protect their right to do so. Unlawful foreign interference with these debates debases their democratic integrity, and we will make every effort to disrupt it and hold those involved accountable.”

“The strategic goal of this alleged conspiracy, which continues to this day, is to sow discord in the U.S. political system and to undermine faith in our democratic institutions,” said U.S. Attorney Terwilliger. “This case demonstrates that federal law enforcement authorities will work aggressively to investigate and prosecute the perpetrators of unlawful foreign influence activities, and that we will not stand by idly while foreign actors obstruct the lawful functions of our government. I want to thank the agents and prosecutors for their determined work on this case.”

“This case serves as a stark reminder to all Americans: Our foreign adversaries continue their efforts to interfere in our democracy by creating social and political division, spreading distrust in our political system, and advocating for the support or defeat of particular political candidates,” said Director Wray. “We take all threats to our democracy very seriously, and we’re committed to working with our partners to identify and stop these unlawful influence operations. Together, we must remain diligent and determined to protect our democratic institutions and maintain trust in our electoral process.”

According to allegations in the criminal complaint, Elena Alekseevna Khusyaynova, 44, of St. Petersburg, Russia, served as the chief accountant of “Project Lakhta,” a Russian umbrella effort funded by Russian oligarch Yevgeniy Viktorovich Prigozhin and two companies he controls, Concord Management and Consulting LLC, and Concord Catering. Project Lakhta includes multiple components, some involving domestic audiences within the Russian Federation and others targeting foreign audiences in the United States, members of the European Union, and Ukraine, among others.

Khusyaynova allegedly managed the financing of Project Lakhta operations, including foreign influence activities directed at the United States. The financial documents she controlled include detailed expenses for activities in the United States, such as expenditures for activists, advertisements on social media platforms, registration of domain names, the purchase of proxy servers, and “promoting news postings on social networks.” Between January 2016 and June 2018, Project Lakhta’s proposed operating budget totaled more than $35 million, although only a portion of these funds were directed at the United States. Between January and June 2018 alone, Project Lakhta’s proposed operating budget totaled more than $10 million. 

The alleged conspiracy, in which Khusyaynova is alleged to have played a central financial management role, sought to conduct what it called internally “information warfare against the United States.” This effort was not only designed to spread distrust towards candidates for U.S. political office and the U.S. political system in general, but also to defraud the United States by impeding the lawful functions of government agencies in administering relevant federal requirements. 

The conspirators allegedly took extraordinary steps to make it appear that they were ordinary American political activists. This included the use of virtual private networks and other means to disguise their activities and to obfuscate their Russian origin. They used social media platforms to create thousands of social media and email accounts that appeared to be operated by U.S. persons, and used them to create and amplify divisive social and political content targeting U.S. audiences. These accounts also were used to advocate for the election or electoral defeat of particular candidates in the 2016 and 2018 U.S. elections. Some social media accounts posted tens of thousands of messages, and had tens of thousands of followers.

The conspiracy allegedly used social media and other internet platforms to address a wide variety of topics, including immigration, gun control and the Second Amendment, the Confederate flag, race relations, LGBT issues, the Women’s March, and the NFL national anthem debate. Members of the conspiracy took advantage of specific events in the United States to anchor their themes, including the shootings of church members in Charleston, South Carolina, and concert attendees in Las Vegas; the Charlottesville “Unite the Right” rally and associated violence; police shootings of African-American men; as well as the personnel and policy decisions of the current U.S. presidential administration.

The conspirators’ alleged activities did not exclusively adopt one ideological view; they wrote on topics from varied and sometimes opposing perspectives. Members of the conspiracy were directed, among other things, to create “political intensity through supporting radical groups” and to “aggravate the conflict between minorities and the rest of the population.” The actors also developed playbooks and strategic messaging documents that offered guidance on how to target particular social groups, including the timing of messages, the types of news outlets to use, and how to frame divisive messages.

The criminal complaint does not include any allegation that Khusyaynova or the broader conspiracy had any effect on the outcome of an election. The complaint also does not allege that any American knowingly participated in the Project Lakhta operation.

The investigative team received exceptional cooperation from private sector companies, such as Facebook and Twitter.

Assistant U.S. Attorney Jay V. Prabhu and Special Assistant U.S. Attorney Alex Iftimie are prosecuting the case, with assistance of Trial Attorneys Matthew Y. Chang and Patrick T. Murphy of the National Security Division’s Counterintelligence and Export Control Section.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-mj-464.

A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty beyond a reasonable doubt in a court of law.

The Department of Justice today announced that it is successfully closing its memorandum of agreement with the Juvenile Court of Memphis and Shelby County and the Shelby County Detention Center. 

Shelby County and the Civil Rights Division of the Department of Justice entered into the agreement in December of 2012 to address the results of an investigation by the Department into the operations of the County’s juvenile justice system.  The investigation looked into the operation and administration of the County’s juvenile court as well as the conditions of confinement for juveniles held in the County’s Detention Center. 

Over the last six years, Shelby County has implemented a number of significant reforms under the agreement.  To ensure that it protects the constitutional rights of juveniles to receive due process and equal protection under the law, the County has for the first time established and funded a juvenile unit in the public defender’s office that now represents the majority of juveniles who appear before the Juvenile Court.  The County now provides counsel to juveniles at both probation conferences and at court hearings.  The County has also undertaken efforts to ensure that decisions made at different levels of the juvenile justice system are unbiased and guided by objective criteria.  Finally, the County has taken numerous steps to prevent the unnecessary use of force in the Detention Center and to protect juveniles from the risk of suicide. 

“The Department of Justice is committed to protecting the constitutional rights of all juveniles who enter the justice system,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.  “Shelby County made commendable efforts to improve its juvenile justice system. The Department is pleased to see Shelby County and its local elected officials embrace and show public commitment to continuing the reforms it has made.” 

The Department of Justice applauds Shelby County’s reform efforts and appreciates the productive partnership that the County has established with the Department over the last six years. 

More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt.

The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times.  The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters.  The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud.  More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.

“Following Hurricane Michael’s landfall and as recovery efforts continue, it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes, impersonation of government officials and solicitations for fake charities,” said Deputy Attorney General Rod Rosenstein.  “The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”

Since Hurricane Michael’s landfall, many people are left without food, water, or shelter, and are experiencing devastating damage to life and property.  Unfortunately, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster.  They are looking to strike those at their most vulnerable time.

While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need.  Examples of illegal activity being reported to the NCDF and law enforcement include:

• Impersonation of federal law enforcement officials;
• Identity theft;
• Fraudulent submission of claims to insurance companies and the federal government;
• Fraudulent activity related to solicitations for donations and charitable giving;
• Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
• Price gouging;
• Contractor Fraud;
• Debris removal fraud;
• Theft, looting, and other violent crime 

Numerous U.S. Attorney Offices in districts impacted by recent hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud. 

“The NCDF has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints after the recent hurricanes and help ensure that each report of fraud reaches the appropriate investigative agency,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director.  “Raising public awareness is a great way for the NCDF to reach thousands of people who may one day be subjected to fraudulent schemes.” 

Members of the public are reminded to apply a critical eye and exercise due diligence before trusting anyone purporting to be working on behalf of disaster victims.  They should also exercise the same care before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster.  Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.  Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721.   The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov.  Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here.  Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.

A former U.S. Navy Commander was sentenced today to 30 months in prison, followed by three years of supervised release, a $10,000 fine and $21,625.60 in restitution by the Honorable Janis L. Sammartino of the U.S. District Court for the Southern District of California.  The case relates to a wide-ranging corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based company, Glenn Defense Marine Asia (GDMA).

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Adam L. Braverman for the Southern District of California, made the announcement.

Earlier this year, Amundson, 51, of Ramsey, Minnesota pleaded guilty to one count of conspiracy to commit bribery, admitting that he conspired with Francis and others to receive things of value in exchange for taking official acts for the benefit of GDMA and violating his official duties to the U.S. Navy.  Francis pleaded guilty in 2015 to bribery and fraud charges.

According to admissions made as part of his guilty plea, from May 2005 to May 2013, Amundson served as the officer responsible for coordinating the U.S. Navy’s joint military exercises with its foreign navy counterparts.  As part of his duties, Amundson was responsible for building and maintaining cooperative relationships with the U.S. Navy’s foreign navy exercise partners.  Amundson admitted that from September 2012 through October 2013, Francis paid for dinner, drinks, transportation, other entertainment expenses, and the services of prostitutes for Amundson and other U.S. Navy officers, in return for sensitive information, such as U.S. Navy ship schedules, and for taking other actions in favor of GDMA and in violation of his official duties.   Amundson further admitted that after being interviewed by federal criminal investigators in October 2013, he deleted e-mail correspondence with Francis. 

So far, 33 defendants have been charged and 21 have pleaded guilty, many admitting to accepting things of value from Francis in exchange for helping the contractor win and maintain contracts and overbill the Navy by millions of dollars.

The investigation is being conducted by the Defense Criminal Investigative Service, Naval Criminal Investigative Service and Defense Contract Audit Agency.  The case is being prosecuted by Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California.              

A former lobbyist was charged in an indictment with obstructing justice in connection with an ongoing federal investigation and proceedings concerning a multi-million dollar high-yield investment fraud scheme, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  

Christopher Petrella, 51, of Greer, South Carolina, was arrested yesterday and charged in the Western District of North Carolina with one count of obstruction of justice.  

Ten individuals had been previously indicted by a Charlotte grand jury for their alleged roles in a high-yield investment scheme involving Niyato Industries Inc.  The charges in that case allege that the defendants raised money from investors by representing that Niyato manufactured electric and compressed natural gas (“CNG”) automobiles when, in truth, the company had no facilities, no operations, and no capability to manufacture anything.  That case is scheduled for trial.     

The indictment returned on Tuesday and unsealed yesterday alleges that Petrella, who worked to promote Niyato and purportedly lobbied on Niyato’s behalf, attempted to obstruct, influence and impede the ongoing federal investigation into the alleged Niyato fraud, as well as the upcoming trial, by misleading federal law enforcement about his own involvement with Niyato and by portraying himself as a whistleblower.  Petrella is alleged to have produced to a federal law enforcement agent a bogus “quarterly report” related to his lobbying work for Niyato.  According to the indictment, Petrella also falsely claimed he had filed the “quarterly report” with the U.S. Congress pursuant to certain requirements applicable to federal lobbyists.  The bogus “quarterly report” purportedly disclosed to authorities that certain individuals had made false and misleading statements about Niyato’s business and operations on Niyato’s Twitter and Facebook pages.  In reality, the indictment alleges that the “quarterly report” Petrella produced to federal law enforcement was a sham and Petrella’s statement that he had filed the document with the U.S. Congress was false. 

Petrella’s initial court appearance is scheduled on Wednesday, Oct. 24, at 10:40 a.m. before Magistrate Judge David S. Cayer in the Western District of North Carolina.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case was investigated by the U.S. Postal Inspection Service.  Trial Attorneys William Bowne and Christopher Fenton of the Criminal Division’s Fraud Section are prosecuting the case.

Remarks as Prepared for Delivery

Thank you for that kind introduction and thank you to the ABA Section of Environment, Energy, and Resources (SEER) for the honor of joining you this morning as a keynote speaker. Let me also recognize this year’s conference chair, Juge Gregg, who has done a remarkable job coordinating SEER’s 26th Annual Fall Conference.

Throughout my sixteen years of law practice, I have benefitted from many of this Section’s conferences and the excellent journals and publications produced by your members. A copy of the Spring 2004 edition of the Natural Resources & Environment Magazine, entitled “Enforcement and Compliance,” sits on my coffee table at Main Justice. I always appreciated that this Section provides both senior experienced attorneys as well as recent law graduates an opportunity to put their ideas and legal analyses out there for consideration among the nation’s environmental lawyers. My article – about state enforcement barring environmental citizen suits – is on pages 57 to 61 of the Spring 2004 edition. I had just graduated law school one year earlier, and I co-wrote the article with a cherished former colleague, Tripp Head, since lost to cancer, who was active in this Section and taught me a great deal about writing and lawyering.

If you glance through this edition, you will also see articles from others in this respected Section, including former Assistant Attorney General John Cruden and Deputy AAG Bruce Gelber, who co-authored an article on pages 10 to 18 about federal environmental enforcement, not to mention the article on pages 27 to 31 co-authored by Karen Mignone, Chair-Elect of the Section. Year after year, ABA SEER makes valuable contributions to the practice of environmental law across our nation. Thank you to all who contribute to make the Section so successful in its mission.

Introduction to ENRD

Since January 20, 2017, I have been honored to serve as the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. About to celebrate its 110th birthday next year, our historic division is a powerful force for good in our country. It is our Division’s responsibility to enforce the nation’s environmental laws and to defend good governance by federal agencies engaged in management of natural resources, environmental protection, and land acquisition. We also have a vital role in Indian Country as well. With almost 600 attorneys, paralegals, and staff, and with a docket of more than 6,000 cases and matters, ENRD is engaged every day, all across the country, in pursuit of our important mission under law.

We have continued to look forward to the arrival of Jeff Clark as our next Assistant Attorney General. After a longer wait than was deserved, we were very pleased to see the Senate confirm Jeff last week. He is an exceptional lawyer and will do a great job as the leader of our Division. He served previously as a Deputy AAG during the tenure of AAG Tom Sansonetti, an outstanding leader of our historic Division in his own right. We currently anticipate Jeff Clark’s tenure to officially begin on November 1, 2018, at which point I will shed the “Acting” AAG title and continue serving in the Division as the Principal Deputy Assistant Attorney General.   

In our front office, we are fortunate to be joined by our current team of Deputy AAGs: Bruce Gelber; Jean Williams; Eric Grant; and Jonathan Brightbill. Justin Heminger, an excellent attorney from our Environmental Defense Section, currently serves as Chief of Staff. We have a strong front office team focused on fulfilling the critical mission of ENRD. Jeff Clark’s arrival will undoubtedly make our team even stronger.

Our Division has been busy over the last 21 months. This morning, I want to share with you some insights into what we have been doing, and how we are approaching our civil and criminal enforcement matters and our defense of agency actions, including key priorities of this Administration. I’ll conclude with some remarks about our Supreme Court practice, including the mandamus petition we filed just yesterday in the Juliana litigation, described by some news reports as the “kids’ climate case,” but perhaps more appropriately should be called the “Jim Hansen case.”

ENRD and the Rule of Law

Under the leadership of Attorney General Jeff Sessions and Deputy Attorney General Rod Rosenstein, one overriding principle has governed our work: the impartial rule of law. This principle is reflected in virtually every speech they deliver, and it undergirds every decision they make. Recently, Attorney General Sessions framed the principle this way: “No greater good can be done for the overall health and well-being of our Republic, than preserving and strengthening the impartial rule of law.” He also framed it this way: “The rule of law is more than an outcome. It is a formal process that creates an opportunity for a jury or a court to produce a just outcome—and a just outcome may not be the politically popular one.”

Last week, I was honored to join the Attorney General in London where he delivered a major international speech about our nation’s efforts to combat the illegal trade in protected wildlife. He expressed our country’s longstanding view that the poaching and trafficking of protected wildlife is a “threat to good governance, a threat to the rule of law, and a challenge to our stewardship responsibilities for this good earth.” Again, he emphasized, “It is the rule of law that forms the foundation for liberty, safety, and prosperity.” Absent good institutions and the rule of law, which we are beyond blessed to have inherited in this great nation, we are utterly helpless in the fight to ensure clean air, clean water, clean land, and the conservation of natural resources. 

Likewise, Deputy Attorney General Rosenstein recently reinforced that point when he was the keynote speaker at our Division’s annual awards ceremony in September, where we recognized the exceptional work of attorneys and support staff from across the Division as well as our agency partners. DAG Rosenstein reminded us that, in his words:

Government lawyers are obligated to advocate for the truth. Only we are accountable for investigating and disclosing evidence of innocence. Only we are accountable for refraining from advocating arguments that we know to be wrong. That is because our duty is to the truth and not a particular outcome in any case. That is what the rule of law is all about.      

Enforcement and the Rule of Law

At ENRD, this fundamental principle of the impartial rule of law is a touchstone for our own work. Earlier this year, I issued a directive to our civil and criminal enforcement lawyers identifying central principles – the impartial rule of law, first among them – that should govern our environmental enforcement activities. We also sought to highlight other principles like cooperative federalism, exercising pragmatic decision-making, and protecting taxpayers and the public fisc, and we identified our current enforcement priorities. This directive, which the Attorney General reviewed and approved, is available for review on our website.

When the new Administration took office, there were probably some who mistakenly believed that we would be soft on enforcement. Twenty-one months later, I suspect that there are fewer who have that belief. Since January of 2017, our Division has recovered more than $1 billion in injunctive relief under Superfund to require cleanups of contaminated sites across the nation; obtained record-setting civil penalties in cases involving illegal dredging of protected streams and wetlands; and sought a record-sized civil fine for oil spills at land-based oil production facilities. These are just a few examples of our enforcement successes.

In fact, in the twelve month period from January 20, 2017 to January 20, 2018, my first year as Acting AAG, we secured $1.57 billion in civil penalties – our second best year over the past twenty years. Some may point out that much of that penalty comes from the Clean Air Act defeat device case against Volkswagen, which we concluded in 2017. But when you take out that penalty, ENRD still recovered $121 million in civil penalties, which by itself is higher than the civil penalties that we recovered over the same period in twelve of the last twenty years.

One trend that we have observed in our enforcement work is that we are initiating fewer cases per year than we used to file. But that is not a recent change – it is a long-term trend that you can see playing out over the past two decades. Many factors have contributed to this. For example, in many of our recent cases, we address violations of federal law at multiple facilities in the same settlement. Thus, in August of this year, we settled with a glass manufacturing company to resolve Clean Air Act violations at all six of the company’s facilities located in six different states. Rule of law does not mean weak enforcement – it means vigorous but even-handed enforcement that is consistent with a sound interpretation of applicable statutes and regulations.

Since I became Acting AAG, our Division also has pursued a broad range of criminal cases. Our prosecutors have convicted more than 30 defendants for wildlife trafficking crimes, with another 25 charged during that period. This is on top of significant numbers of additional defendants who have been charged and convicted in wildlife crimes cases brought by U.S. Attorney Offices across our country.

Earlier this year, our Division’s prosecutors obtained a significant prison sentence for a New York defendant found guilty of smuggling parts taken from endangered African lions and tigers. In another case this year, a California resident was sentenced to more than two years in federal prison for smuggling horns taken from endangered African black rhinos. And as part of a multi-year operation that included this case, at least 50 other defendants have been arrested, charged, convicted, and sentenced in recent years for smuggling ivory taken from African or Asian elephants, rhino horns, and other protected species. Last week, while in London with the Attorney General, I met with our counterparts at Interpol, and many countries to discuss ways to even more effectively pursue this international conservation imperative. Next week, the Attorney General is convening a forum to continue the discussion. We will be joined by leading experts from across the federal government who will be looking at ways to more effectively pursue criminal enforcement of our wildlife trafficking laws. 

Just this week, our environmental prosecutors obtained guilty verdicts against four defendants in New Jersey charged with felony dog fighting. And we have been supporting the Administration’s efforts to combat the illegal growth of marijuana on our nation’s public lands, which is having devastating effects on water resources and protected species in the Western United States, especially right here in California.

Throughout our civil and criminal enforcement program, we have prioritized our work in cases involving fraud against the United States, as well as rooting out and bringing enforcement actions against those who would undermine the integrity of environmental programs and the public’s trust in them.

In just the last two months alone, our Division has announced several successes in fighting fraud. Let me quickly mention several of those. 

We announced a major Clean Air Act civil settlement that requires the defendant – an energy company – to retire 36 million renewable fuel credits (valued at $10 million) and to pay a $25 million civil penalty. 

We obtained a 63-month prison sentence for an Ohio man and $26 million in restitution for his role in a conspiracy that generated millions of dollars in fraudulent renewable fuel credits.

We reached a major settlement with an auto parts company over aftermarket defeat devices in vehicles.

And we obtained a guilty plea involving a seafood company selling millions of dollars of foreign crab meat falsely labeled as blue crab and as “product of USA.”

I am proud of the hard work of our ENRD enforcement attorneys – both civil and criminal – in these cases and many others across our full docket. These successes are also shared with our agency partners. On that point, let me say this: I have known and worked with Acting Administrator Andrew Wheeler and Susan Bodine, the Assistant Administrator for EPA’s enforcement office (OECA) for many years, before our time in this Administration, and I know they understand and appreciate the rule of law and the importance of enforcing our nation’s environmental laws. It is an honor to work alongside them in our shared mission of environmental enforcement.

Defending Good Governance

Even as we vigorously enforce the law consistent with sound principles of federal enforcement, our Division is also defending lawful actions by the agencies we serve. This includes the strong defense of federal permits that authorize the construction and operation of energy infrastructure projects like the Dakota Access Pipeline, which was held up in the prior administration but is now fully operational. We are in active and ongoing litigation related to many pipelines as well as other infrastructure projects around the nation. These infrastructure cases are a priority for the Division. Likewise, the Division has made it a priority to defend the rightful prerogative of a new administration to review and reconsider the costs, benefits, soundness, and legality of the prior administration’s policies and regulations.

In our defensive work, I have the privilege of working alongside great lawyers like Daniel Jorjani at the Interior Department, Stephen Vaden at the Agriculture Department, George Fibbe at the Energy Department, Paul Ney and Harry Kelso at the Defense Department, and EPA’s General Counsel Matt Leopold. Matt happens to also be a former ENRD attorney and is a longtime friend who I know is as committed as anyone to the Constitution, the rule of law, and our mission under law to protect human health and the environment. I was glad to see him on the program for this conference as well, with our Deputy AAG, Jon Brightbill.

As has been discussed at many of the sessions at this conference, the Trump Administration is undertaking an ambitious agenda of regulatory reform, which many credit with helping to fuel the economic growth and job creation that our nation is currently enjoying. ENRD is supporting this regulatory reform work by advising our client agencies on high-priority rulemakings and ensuring the effective defense of regulatory actions in court. Anyone who has litigated on behalf of the federal government knows that you win some and you lose some. While we strive to win, we seek to do so consistent with doing justice. In our regulatory rollback and reform work, our aim at ENRD is to avoid unnecessary litigation, support the integrity of the administrative process, and conserve the resources of the courts, the agencies, and other litigants, while also defending the rightful prerogative of the Administration to set its own policy agenda.

Of course, the vast majority of our defensive cases are Administrative Procedure Act (APA) cases. As such, the administrative record forms the factual backbone of these cases. Often, our ability to successfully defend an agency action depends on the record used by the agency to make its decision. We work every day to ensure that the agencies provide a complete and appropriate administrative record when their decisions are challenged in court. We also want those records to contain all the necessary record documents – no more and no less. This means that documents that are not properly part of the record should be excluded from the record. For instance, just because a document is subject to disclosure under a FOIA request related to a certain agency action does not mean the same document is necessarily considered part of the administrative record. This is especially true for deliberative documents. The FOIA analysis is different than the determination of whether a particular document is properly part of the administrative record, and FOIA might yield documents that were never even seen by the agency’s decisionmaker.

To assist our client agencies in that task, I issued a memorandum last year setting forth the Division’s current position on the contents of administrative records. That memorandum, which reverses a position announced by ENRD in January 1999, is consistent with the position taken by the Office of the Solicitor General in briefs filed in federal appellate courts. The memo makes clear that agency “deliberative documents” are not properly part of the record, and therefore, generally should not be produced as part of the administrative record filed with the court, nor listed in a privilege log. This position is based on the determination that documents reflecting internal deliberations are immaterial to the purpose of record review litigation under the APA, and including them would chill free and frank agency discussion and decision-making. This is an issue that continually arises in our APA cases.

Another issue that arises often in our defensive work is the propriety of nationwide injunctions. Attorney General Sessions recently issued a memorandum on this topic. His view, and the position of the United States, is very clear: the trend of federal courts issuing nationwide injunctions should be challenged. There has been a recent increase in the number of judges who have been willing to issue injunctions or orders that block the entire federal government from enforcing a law or policy throughout the country. Attorney General Sessions was unequivocal about such actions, stating in a recent memo that “[t]hese abuses of judicial power are contrary to law.” He explained that “[t]he Constitution does not grant to a single district judge the power to veto executive branch actions with respect to parties not before the court. Nor does it provide the judiciary with authority to conduct oversight of or review policy of the executive branch.”

This has been the longstanding position of the Executive Branch under previous Administrations from both political parties. The litigation guidelines issued by Attorney General Sessions will help ENRD attorneys present strong and consistent arguments in court against the issuance of nationwide injunctions. You can expect our attorneys to be making these arguments in your cases, should the issue come up. This is true even in cases where we might have a policy preference for a particular court to enjoin a rule. Again, this is based in the impartial rule of law. 

ENRD in the Supreme Court

Turning next to our ENRD practice at the Supreme Court, if you attended yesterday’s Supreme Court review panel, you heard there are seven environmental, natural resource, and Indian law cases before the Supreme Court this term. Not surprisingly, ENRD, working with the Office of the Solicitor General, is involved in all of them. This includes cases about designation of critical habitat, Fifth Amendment claims against local municipalities in federal court, Indian treaty rights, uranium mining, and National Park Service lands in Alaska.

Through the years, the United States has a strong record on environmental and natural resource cases before the Supreme Court, particularly in cases where we ask the Court for review. Interestingly, looking back over the last decade, the United States has filed cert petitions in just eighteen ENRD cases, and of those eighteen petitions, the Supreme Court granted cert in nine cases – half of them.

Of course, as this term demonstrates, ENRD’s docket of Supreme Court cases usually originates from cases in which our opponents have sought Supreme Court review or the Court has asked the United States for its views on whether a particular petition in a non-government case should be granted. In fact, of the seven merits-stage cases in which ENRD is involved so far this term, all of the petitions were filed by other parties. And of those seven cases, we filed amicus briefs at the petition stage in four of them – one “uninvited” amicus brief in which we supported the State of Oklahoma’s cert petition in Carpenter v. Murphy (involving the territorial boundaries of the Creek Nation), and three amicus briefs filed at the request of the Supreme Court in which we also supported cert: Washington Dept. of Licensing v. Cougar Den, Inc. (involving state taxation on off-Indian reservation commercial activities); Virginia Uranium, Inc. v. Warren (involving federal preemption of state laws regulating uranium mining); and Herrera v. Wyoming (involving an 1868 federal treaty and the application of hunting regulations to members of an Indian tribe). You will note that most of these cases relate to Indian country issues, which remains a topic of particular interest for the Supreme Court.

Finally, just yesterday, the United States filed a mandamus petition in the Supreme Court in the Juliana litigation. The history of the case may be familiar to many of you, but let me take a moment to recount the timeline and the issues.

In 2015, the Juliana plaintiffs – 21 minors, an environmental advocacy organization, and a guardian purporting to represent “future generations” – sued the United States, the President, eight Executive Branch agencies, and other federal defendants for depriving them of an asserted right to “a climate system capable of sustaining human life” under the Due Process Clause of the Fifth Amendment and related legal theories. As relief, these plaintiffs asked the district court to order the federal government to “move to swiftly phase out CO2 emissions, as well as take such other action as necessary to ensure that atmospheric CO2 is no more concentrated than 350 ppm by 2100, including to develop a national plan to restore Earth’s energy balance, and implement that national plan so as to stabilize the climate system.” As the district court judge herself framed it, “really the endgame is setting up a survival plan unless one of the other branches of government act – unless they act.” The federal district court in Oregon has set a 50-day trial to begin on October 29, just ten days from now. 

On behalf of the United States, ENRD moved to dismiss the case long ago, and more recently we moved for judgment on the pleadings. We showed that the plaintiffs lack standing; that the purported constitutional right that they assert simply does not exist; that the public trust doctrine, which exists only as a matter of state law, is totally inapplicable here; and that the plaintiffs have not identified specific governmental actions that could be subject to challenge under the APA. Because we firmly believe there is no legal basis for this case to be heard in federal court, we also moved to stay the trial until the district court ruled on those dispositive motions.

In fact, no fewer than three courts have recently ruled that claims of this nature are not justiciable. In July of this year, in City of New York v. BP, a federal district court in New York rejected claims against energy companies on trespass and nuisance theories alleging that their sale and promotion of fossil fuels contributed to global warming. The court explained that “[t]o litigate such an action for injuries from foreign greenhouse gas emissions in federal court would severely infringe upon the foreign-policy decisions that are squarely within the purview of the political branches of the U.S. government.” The court also recognized that “global warming and solutions thereto must be addressed by the two other branches of government,” and they “are not for the judiciary to ameliorate.”

Similarly, in June of this year, Judge Alsup in the Northern District of California dismissed public nuisance climate change claims brought by the cities of Oakland and San Francisco against oil companies, on the basis that those claims are barred by the separation of powers. In that case, ENRD filed an amicus brief explaining the United States’ position that courts should refrain from fashioning new judicial remedies to address climate change issues – a position with which the district court agreed.  

And in August of this year, in a case styled Aji P. v. Washington, a Washington state court rejected climate change claims by twelve young Washington residents, including one of the named plaintiffs in the Juliana lawsuit. Similar to the plaintiffs in the Oregon lawsuit, the plaintiffs here asked the Washington court to order the State to develop “an enforceable state climate recovery plan” and retain jurisdiction to “approve, monitor and enforce compliance” with that plan. The court correctly dismissed the case, finding that the “relief requested by Plaintiffs would require the Court to usurp the roles of the legislative and executive branches of our state government” in violation of the separation of powers. 

The Washington court also addressed a second issue relevant to the Oregon case: whether the Constitution provides a fundamental right to a healthy climate. In the Washington case, the plaintiffs asserted a constitutional right nearly identical to the one that the plaintiffs request the Oregon court to recognize: a right to “stable climate system that sustains human life and liberty.” But the Washington court declined to recognize such a right, stating: “A stable and healthy climate, like world peace and economic prosperity, is a shared aspiration – the goal of a people, rather than the right of a person. These types of aims are the objectives of a polity, to be pursued through the political branches of government. They are not individual rights that can be enforced by a court of law.”    

In the Oregon case, however, the court has consistently ignored or rejected these basic principles of separation of powers and has invoked, instead, a purported “failure of the legal system to protect humanity from the collapse of finite natural resources by the uncontrolled pursuit of short-term profits,” and stated that the “third branch can, and should, take another long and careful look at the barriers to litigation created by modern doctrines of subject-matter jurisdiction and deference to the legislative and administrative branches.”  

In our view, the Oregon lawsuit is an unconstitutional attempt to use a single court to control the entire nation’s energy and climate policy. It is a matter of separation of powers and preserving the opportunity in our system of government for those policies to be decided by the elected branches, not the courts.   

The Attorney General, in a speech earlier this week about judicial encroachment into the policymaking sphere, put it this way:

[The courts] should decide legal questions based on the law and the facts – not their policy preferences. It is of no moment whether a judge likes or dislikes a policy matter. Sometimes judges adopt the view that they can order some policy outcome since the politically accountable branches failed to act. Their failure to act is a policy decision, not a gap for the judiciary to fill. When Congress rejects a proposed policy, a decision has been made – just as surely as when they pass a bill into law. Courts have no right to impose the rejected choice.

Thus, federal district court judges are not empowered to fashion immigration policy, combat climate change, solve the opioid crisis, or run police departments. The Legislative and Executive branches – of federal and state government – are the constitutionally authorized branches to do these things, and if these branches haven’t done so to the satisfaction of an unaccountable judge, it’s not because they need judicial expertise or advice.

The Justice Department is continuing our efforts to see that the Oregon case is dismissed, as is clearly warranted by law. Our mandamus petition, filed yesterday in the Supreme Court, makes a strong and persuasive case for dismissal. We will see how the Court decides the issue. In the meantime, trial preparation continues.

Beyond the legal defects, the fallacies of the plaintiffs’ policy approaches are significant, as well. They are ignoring the clear fact that the United States is the global leader in environmental protection. Indeed, the United States leads the world in greenhouse gas reductions, and the United States is the global leader in the development of new energy technologies that are helping to reduce emissions. And importantly, the plaintiffs in Oregon are ignoring the fact that clean and responsible production and use of fossil fuels remains vital to the health and well-being of the American people, as the Article I and Article II branches of our government, across Administrations, have continued to recognize through their legislative enactments and policies. At bottom, our defense in the Juliana case is built on the rule of law and the Constitution. It is, in a very real sense, about defending democracy.

Conclusion

As you can tell, ENRD is a busy place. Since I joined the Division on January 20, 2017, it has felt more like a sprint than a marathon. But I am proud of what we have achieved over these 21 months, and I am confident that many more successes lie ahead for the Division under the leadership of AAG Jeff Clark.

So, let me conclude, again, by thanking Juge Gregg and the other organizers of this important conference. It is an honor for me to address you this morning. Thank you.

A federal grand jury in Salt Lake City returned a seven-count indictment Thursday morning charging William Clyde Allen, III, age 39, of Logan, Utah, in connection with ricin-related threats.  The indictment alleges he knowingly threatened to use a biological agent and toxin, specifically ricin, as a weapon. 

Assistant Attorney General John C. Demers of the Department of Justice’s National Security Division, U.S. Attorney John W. Huber of Utah, Special Agent in Charge Eric K. Barnhart of the FBI’s Salt Lake City Field Office, Special Agent in Charge John Gullickson of the U.S. Secret Service’s Denver Field Office, and U.S. Postal Inspector Jared D. Bingham, Team Leader in Salt Lake City, announced the indictment.

The indictment also charges Allen with one count of mailing a threat against the President and five counts of mailing threatening communications to an officer or an employee of the United States in the indictment returned Thursday morning.

Allen was arrested on a federal complaint filed Oct. 5, 2018. He was ordered detained pending resolution of the case at a detention hearing Monday. U.S. Magistrate Judge Dustin B. Pead found him to be a danger to the community.  Allen entered a plea of not guilty to the charges Thursday morning in U.S. District Court.  U.S. District Judge David Sam will preside over a four-day trial starting Dec. 26, 2018, in Salt Lake City.

The indictment alleges the defendant sent a letter to the President of the United States with the language “Jack and the Missile Bean Stock Powder” and containing castor bean material.

Five counts of the indictment charge Allen with mailing threatening communications to an officer or an employee of the United States, including Secretary of Defense James N. Mattis; Admiral John M. Richardson, Chief of Naval Operations; FBI Director Christopher A. Wray; CIA Director Gina Haspel; and Secretary of the Air Force Heather Wilson. 

Ricin naturally exists in, and may be extracted from, the seeds of the castor bean.  The extraction of ricin from these seeds does not require technical expertise.  Small doses of ricin are lethal to human beings if ingested, inhaled, or injected.  According to Center for Disease Control information, there are no known antidotes for poisoning from ricin. Allen purchased  380 castor beans in December 2017 in quantities of 100 (two purchases) and 30 (six purchases).

The potential maximum penalty for threatening to use a biological toxin as a weapon is life in prison.  Mailing a threat against The President has a potential maximum penalty of five years in prison and mailing a threatening communications to an officer or an employee of the United States has a potential 10-year sentence.

Indictments are not a finding of guilt.  Individuals charged in indictments are presumed innocent unless or until proven guilty in court.

The U.S. Attorney’s Office in Salt Lake City, with the assistance of the Department of Justice’s National Security Division’s Counterterrorism Section, is prosecuting the case.   U.S. Postal Inspectors and special agents of the FBI and U.S. Secret Service are investigating the case.

Roland J. Bourgeois, Jr., de 55 años, vecino de Nueva Orleans, Luisiana, compareció ante la Jueza Superior del Tribunal Federal de Distrito Mary Ann Vial Lemmon y se declaró culpable ante los cargos de que, tras el Huracán Katrina, disparó a tres hombres jóvenes afroestadounidenses por motivo de su raza mientras los hombres intentaban huir de Nueva Orleans. Así anunciaron John Gore, el Fiscal General Auxiliar en funciones de la División de Derechos Civiles; Peter G. Strasser, el Fiscal Federal para el Distrito Oriental de Luisiana; y Eric J. Rommal, el Agente Especial Encargado de la División del Buró Federal de Investigaciones (FBI, por sus siglas en inglés) en Nueva Orleans.

Según los documentos presentados en apoyo de la declaración, poco después de la llegada del Huracán Katrina a Nueva Orleans, Bourgeois y otros hombres blancos, vecinos del barrio de Algiers Point, acordaron utilizar fuerza para alejar a los afroestadounidenses de su barrio. Transportaron árboles caídos para bloquear las calles cerca de sus casas y comenzaron patrullas armadas en el barrio.

El 1 de septiembre del 2005, tres hombres jóvenes afroestadounidenses, D.H, M.A. y C.C., caminaron a Algiers Point en un intento de llegar al desembarque del transbordador, un lugar que las agencias estatales y federales estaban usando como punto de evacuación. Cuando los tres hombres cruzaron la barricada construida por Bourgeois y otros, Bourgeois abrió fuego con una escopeta y lesionó a los tres hombres. Después de que huyeran, Bourgeois se jactó que había «dado con uno» y prometió «matar a ese [palabra racista] si el hombre llegara a sobrevivir. Bourgeois advirtió a uno de sus vecinos que «se disparará a cualquier cosa que pase por esta calle cuya tez sea más oscura que un saco de papel marrón».

«Esta declaración de culpabilidad demuestra el compromiso continuo del Departamento de Justicia a lo largo del tiempo a hacer que los autores de delitos de odio rindan cuentas de sus acciones», declaró el Fiscal General Auxiliar en funciones John Gore.  «Todo estadounidense, independientemente de su raza, tiene derecho a vivir libre de violencia y daños físicos».

«Una de las tareas principales del Departamento de Justicia es la defensa de los derechos civiles de nuestros ciudadanos. Esta condena demuestra el compromiso de los cuerpos del orden público a hacer que los individuos rindan cuentas de sus acciones, a pesar del paso del tiempo», afirmó el Fiscal Federal Strasser. «Espero que esta declaración de culpabilidad ofrezca un atisbo de paz a aquellos que fueron directamente impactados por este delito y a esta gran ciudad que sufrió tanto en los días después del Huracán Katrina».

«Aunque estos delitos y el Huracán Katrina ocurrieron hace más de 13 años, el FBI no se olvida. La declaración de culpabilidad de hoy es una prueba de que la justicia perdura y de que continuaremos persiguiendo a aquellos que vulneren y priven a otros de sus derechos civiles», dijo el Agente Especial Encargado del FBI Eric J. Rommal.

Bourgeois será condenado el 17 de enero del 2019. Conforme los términos del acuerdo de admisión de culpabilidad, Bourgeois se enfrenta a un mínimo de cinco años de cárcel y un máximo de diez años. Previamente, Bourgeois fue acusado en una acusación formal de cinco cargos en julio del 2010.

El FBI llevó a cabo la investigación. El caso está siendo enjuiciado por el Fiscal Federal Auxiliar para el Distrito Oriental de Luisiana David Howard Sinkman y el Consejero de Litigios Especiales Jared Fishman y la Abogada de Litigios Mary J. Hahn de la División de Derechos Civiles.

Two Detroit-area home health agency owners were sentenced to 10 and six years in prison, respectively, for their roles in a multimillion dollar scheme to defraud Medicare by billing for home health services that were never provided.

Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.

Hafiz Tahir, 49, and Tasneem Tahir, 44, both of Brownstown, Michigan, were sentenced by U.S. District Judge Marianne O. Battani of the Eastern District of Michigan, to 10 and six years in prison, respectively. Judge Battani also ordered the defendants to pay restitution in the amount of $9,674,575 and $4,447,667, respectively, jointly and severally with their co-conspirators.  Judge Battani entered money judgments against Hafiz Tahir, in the amount of $5,575,562.33, and Tasneem Tahir, in the amount of $2,605,176.70.  The Tahirs were also ordered to forfeit to the United States their interest in $226,000 located in a Lebanese bank, two pieces of real property and cash in lieu of two vehicles.  The defendants each pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to pay and receive health care kickbacks. 

As part of their guilty pleas, Hafiz and Tasneem Tahir admitted that they paid illegal kickbacks in exchange for the referral of Medicare beneficiaries to home health agencies that they owned.  They further admitted that between 2009 and 2017, they submitted false and fraudulent claims to Medicare for home health services that were never provided. 

Hafiz and Tasneem Tahir were charged along with Hoda Sabbagh, aka Donna Hamadani, 54, of Milford, Michigan; Emma King, 69, of Detroit, Michigan; and Antonio Kho, 72, of Oak Park, Michigan.  King and Kho pleaded guilty and are pending sentencing.  Sabbagh remains a fugitive. 

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The FBI and HHS-OIG investigated the case.  Trial Attorney Rebecca Yuan of the Fraud Section prosecuted the case.  The financial investigation was conducted in coordination with the Forfeiture and Financial Litigation Unit of the U.S. Attorney’s Office for the Eastern District of Michigan.  Assistant U.S. Attorney Shankar Ramamurthy of the Eastern District of Michigan handled the asset forfeiture proceedings.  

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Officer Guillermo Ravelo was sentenced to 27 months incarceration for conspiracy to deprive a person of his civil rights and deprivation of civil rights under color of law.

“These officers conspired to falsely arrest individuals in the name of providing deceptive clearance statistics for the benefit of Chief Atesiano,” said Acting Assistant Attorney General John Gore. “Chief Atesiano and these officers abused their authority and the Department will continue to ensure officers such as these are held accountable.”

“Officers who use excessive force and make false arrests maliciously cause harm to their victims and scourge our justice system,” said U.S. Attorney Ariana Fajardo Orshan. “With great power, comes great responsibility. Through aggressive federal prosecutions, the U.S. Attorney’s Office for the Southern District of Florida will continue to guard the invaluable civil rights of every member of our community and hold those accountable who violate our constitutional protections.”

“These three police officers from Biscayne Park disgraced themselves and damaged the public’s trust in law enforcement. Their actions are inexcusable and are not representative of the law enforcement professionals who serve us selflessly,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “The citizens of South Florida can take comfort in the fact that the vast majority of police officers are honest, forthright individuals who are committed to doing the job right. To those officers who aren’t, the FBI’s Miami Area Corruption Task Force was assembled and designed to root them out.”

“Honesty and integrity are the core values of every effective police officer,” said State Attorney Katherine Fernandez Rundle. “Former Biscayne Park Police Officers Guillermo Ravelo, Charlie Dayoub and Raul Fernandez undermined their essential task of protecting the community, in some instances by using excessive force and in others, by conspiring to deprive suspects of their civil rights so as to produce bogus arrests. This absolute abuse of power by all three officers violated every aspect of the oath Ravelo, Dayoub, and Fernandez took the day they became police officers.”

 “The officers’ actions are everything we guard against in law enforcement and violated our most important principals,” said FDLE Miami Special Agent in Charge Troy Walker.  “When an officer abuses the public’s trust, there must be severe consequences.  I thank the U.S. Attorney’s Office for their work on this case.”

According to court filings, on Jan. 23, 2013 and Feb. 26, 2014, at the direction of then Biscayne Park Police Department Chief Raimundo Atesiano, Ravelo falsely arrested a victim identified as “C.D.” and another victim identified as “E.B.”  C.D. was charged with two residential burglaries, and E.B. was charged with five vehicle burglaries, both without probable cause. In a separate incident, on April 7, 2013, Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop.  During the arrest of the driver, Ravelo used unreasonable force by striking the handcuffed driver with his fists.

Former Chief Atesiano previously pleaded guilty to acting under color of law as chief of police when on three separate occasions he ordered officers Ravelo, Charlie Dayoub and Raul Fernandez to falsely arrest and charge individuals with unsolved burglaries.  In court filings related to the plea, Atesiano admitted that he instructed Ravelo to falsely arrest and charge E.B for five vehicle burglaries based upon what Atesiano knew were false confessions.  Former Chief Atesiano is scheduled to be sentenced on Nov. 27, 2018.

Former officers Charlie Dayoub and Raul Fernandez were each sentenced to 12 months in prison for their role in falsely arresting a 16-year old juvenile, “T.D.,” for four unsolved burglaries.   Dayoub and Fernandez were the first officers to cooperate with the government and accept responsibility for their criminal acts. Their cooperation directly implicated Atesiano and resulted in an indictment being returned against the former chief charging civil rights violations. 

As noted at the hearing and in court filings, on June 13, 2013, Chief Atesiano instructed the officers to unlawfully arrest and falsely charge T.D., a juvenile previously known to Chief Atesiano and Dayoub. Dayoub and Fernandez complied with Chief Atesiano’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like Chief Atesiano and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.

According to court filings, Chief Atesiano intentionally encouraged officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries, which created a fictitious 100% clearance rate for that category of crime.

This case was investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

StarKist Co. has agreed to plead guilty for its role in a conspiracy to fix prices of packaged seafood sold in the United States, the Department of Justice announced today.

According to a one-count felony charge filed today in the U.S. District Court for the Northern District of California in San Francisco, StarKist and its co-conspirators agreed to fix the prices of canned tuna fish from as early as November 2011, through at least as late as December 2013.  In addition to pleading guilty, StarKist has agreed to cooperate in the investigation.  StarKist faces a criminal fine of up to $100 million. The amount of StarKist’s fine will be determined at a sentencing hearing and the plea agreement is subject to court approval.   

“The conspiracy to fix prices on these household staples had direct effects on the pocketbooks of American consumers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “All Americans have the right to the benefits of free and open competition — the best goods and services at a price free from collusion.  We will continue to hold companies and individuals who cheat consumers accountable.”

“Our citizens' confidence in the ability to buy goods within an unbiased market is key to sustaining an efficient and fair economy,” said Special Agent in Charge John F. Bennett, FBI San Francisco. “This investigation stands as a symbol of our commitment to holding corporations and senior leadership accountable and ensuring that activities such as price fixing will not be tolerated.”

A total of six charges have resulted from this federal antitrust investigation into the packaged seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office.  Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the packaged seafood industry should contact the Antitrust Division’s San Francisco Office at (415) 934-5300, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at (415) 553-7400.

Bourgeois shot at three young African-American men fleeing Hurricane Katrina in 2005

Roland J. Bourgeois, Jr., 55, of New Orleans, LA, appeared yesterday before Senior U.S. District Court Judge Mary Ann Vial Lemmon and pleaded guilty to charges that, in the wake of Hurricane Katrina, he shot at three young African-American men because of their race as the men attempted to evacuate New Orleans, announced Acting Assistant Attorney General for the Civil Rights Division John Gore; U.S. Attorney for the Eastern District of Louisiana Peter G. Strasser; and FBI New Orleans Division Special Agent in Charge Eric J. Rommal.

According to documents filed in connection with the plea, shortly after Hurricane Katrina struck New Orleans, Bourgeois and other white male residents of the Algiers Point neighborhood agreed that they would use force to keep out African Americans from their neighborhood. They moved fallen trees to barricade the streets near their homes and started armed patrols of the neighborhood.

On Sept. 1, 2005, three young African-American men – D.H., M.A., and C.C. – walked to Algiers Point in an effort to reach the ferry landing, a site that state and federal agencies were using as an evacuation point. When the three men crossed a barricade constructed by Bourgeois and others, Bourgeois opened fire with a shotgun, wounding all three men. After the men fled, Bourgeois boasted that he had “got one” and pledged to “kill that [racial slur]” if the man had survived.  Bourgeois warned one of his neighbors: “Anything coming up this street darker than a brown paper bag is getting shot.”

“This guilty plea demonstrates the Justice Department’s continued commitment over time to holding perpetrators of hate crimes accountable for their actions,” said Acting Assistant Attorney General John Gore. “All Americans have the right to be free from violence or physical harm, regardless of their race.”

“Upholding the civil rights of our citizens is one of the most important duties of the DOJ.  This plea demonstrates the resolve of law enforcement to hold individuals responsible for their actions, despite the passage of time,” said U.S. Attorney Strasser. “Hopefully this plea brings some measure of finality to those affected by this crime and to this city that endured so much in the days following Hurricane Katrina.”

“Even though these crimes and Hurricane Katrina occurred over 13 years ago, the FBI does not forget.  Today’s guilty plea is proof that the arms of justice are long and we will continue to seek out those who violate and deprive others of their civil rights,” said FBI Special Agent in Charge Eric J. Rommal.

Bourgeois will be sentenced on Jan. 17, 2019. Under the terms of the plea agreement, Bourgeois faces a minimum of five years of imprisonment and a maximum of ten years. Bourgeois was previously charged in a five-count indictment in July 2010.

The FBI conducted the investigation.  The case is being prosecuted by Assistant United States Attorney David Howard Sinkman of the Eastern District of Louisiana and Special Litigation Counsel Jared Fishman and Trial Attorney Mary J. Hahn of the Civil Rights Division.

Terry J. Albury, 39, a former Special Agent of the FBI, was sentenced today to 48 months in the District of Minnesota in connection with his unauthorized disclosure and retention of classified national defense information.

The announcement was made by Attorney General Jeff Sessions, FBI Director Chris Wray, Assistant Director in Charge of the Washington Field Office Nancy McNamara, and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, after sentencing by U.S. District Judge Wilhelmina M. Wright.

"We are conducting perhaps the most aggressive campaign against leaks in Department history," said Attorney General Sessions. "Crimes like the one committed by the defendant in this case will not be tolerated—they will be prosecuted to the fullest extent of the law and punished. I want to thank Assistant Attorney General Demers, U.S. Attorney Terwilliger, and their attorneys for their hard work in prosecuting this important case. Today's sentence should be a warning to every would-be leaker in the federal government that if they disclose classified information, they will pay a high price."

"Every FBI agent has a solemn obligation to protect classified information from unauthorized disclosure to safeguard our national security. Terry Albury betrayed that responsibility, and he betrayed the trust bestowed on him by the American people," said FBI Director Christopher Wray. "His sentencing today demonstrates those who violate the law by disclosing classified information will be held responsible for their reckless and illegal actions."

“Leaking classified national defense information to the media is a crime that damages our national security,” said U.S. Attorney Terwilliger. “Albury transmitted classified information not just to one hostile foreign power, but to every hostile foreign power with the ability to pick up a newspaper or access the Internet. To be clear, this was not whistleblower activity. Albury made no attempts to engage in any of the legitimate whistleblower processes available to him, and instead chose to betray his oath and his colleagues by leaking classified national defense information to the press. This case should send a message to anyone considering violating the public’s trust and compromising our national security by disclosing classified information. We will remain steadfast and dogged in pursuit of these challenging but critical national security cases.”

"Terry Albury willingly disclosed classified information that he had taken an oath to protect, for his own purposes," said Assistant Director in Charge Nancy McNamara. "He violated the trust that was placed in him by willfully providing information that could endanger national security to individuals not authorized to receive it and lied to the FBI about his actions. Albury violated the trust that was placed in him and his attempt to leverage national security information for his own reasons brought him to this sentence today. The FBI will continue to take all necessary and appropriate steps to thoroughly investigate individuals, no matter their position, who undermine the integrity of our justice system by lying to federal investigators."

According to court documents, Albury worked as an FBI Special Agent in the Minneapolis field office at the time of the disclosures, held a Top Secret//Sensitive Compartmented Information security clearance, and his daily duties provided him access to sensitive and classified FBI and other U.S. government information.

According to court documents, beginning in 2016 and continuing through August 2017, Albury knowingly and willfully disclosed national defense information, classified at the Secret level, to a reporter. Albury employed methods to avoid detection, including printing documents that he created by cutting and pasting portions of an original document into a new document so as to avoid leaving a record of having printed the original, classified document. Albury also accessed documents on a classified computer and took pictures of the computer screen in order to photograph certain classified documents. Those additional classified documents were recovered on an electronic storage device found during a search of his home.

Assistant U.S. Attorney Danya E. Atiyeh of the Eastern District of Virginia, and Trial Attorneys Patrick T. Murphy and David C. Recker of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

The Department of Justice and U.S. Environmental Protection Agency (EPA) entered into a settlement with Heritage Thermal Services Inc., a subsidiary of Heritage Environmental Services LLC, resolving allegations that the company violated the Clean Air Act at its hazardous waste incinerator located in East Liverpool, Ohio. 

Some of the alleged violations arose from an explosion at the incinerator on July 13, 2013, which ruptured incinerator ducting, releasing untreated flue gas, steam, and boiler ash beyond the incinerator’s fence line.

“The July 2013 explosion at the Heritage incinerator was a consequence of systemic failures to comply with the Clean Air Act, which protects communities and American workers from harmful releases of air pollutants,” said Acting Assistant Attorney General Jeffrey H. Wood.  “This settlement requires the company to comply with Clean Air Act requirements and to perform important lead abatement work to make the East Liverpool community a safer and healthier place for workers and residents.”

“Today’s settlement will bring the Heritage plant into compliance with Clean Air Act regulations, preventing incidents like the July 2013 explosion,” said EPA Office of Enforcement and Compliance Assurance Associate Administrator Susan Bodine. “In addition, Heritage will perform a project that will help to protect people, especially children, from the harmful health effects of lead exposure.”

The U.S. alleges that Heritage violated the Clean Air Act on hundreds of days beginning in November 2010 and continuing thereafter, including violations emanating from the July 13, 2013 explosion.  The violations include failures to comply with applicable emissions limits, operating parameter limits, and other Clean Air Act regulatory requirements.

The settlement, which was lodged in federal court for the Northern District of Ohio, requires that Heritage undertake extensive measures designed to bring its operations into compliance with the Clean Air Act.  For instance, Heritage will not accept certain wastes that cause the kind of excess emissions that contributed to the July 2013 incident.  Heritage is also required to investigate and implement corrective measures to reduce future emissions and will study whether other changes in its production process would also prevent Clean Air Act violations.  Heritage is also required to pay a penalty of $288,000, and to spend at least $302,500 performing lead hazard abatement work at properties within 25 miles of East Liverpool, Ohio where the owners cannot afford to undertake lead abatement or replacement of lead water service lines. 

The Department of Justice and EPA will hold a public meeting at the East Liverpool City Council Chambers on November 7, 2018, from 6:30 pm to 8:30 pm EDT to provide the public with information about the settlement and to answer questions by the public.

The proposed settlement is subject to a 30-day public comment period and final court approval. To view the consent decree or to submit a comment, visit the department’s website at: www.justice.gov/enrd/Consent_Decrees.html.

Information about EPA Region 5's air enforcement program is at http://www.epa.gov/region5/air/enforce/index.html.

Potential environmental violations may be reported at http://www.epa.gov/compliance/complaints.

A former supervisor of Deutsche Bank’s Pool Trading Desk and a former derivatives trader were convicted today in New York for their participation in a scheme to manipulate the London Interbank Offered Rate (LIBOR), a critical global benchmark tied to trillions of dollars in derivatives, loans, mortgages, and other financial products.    

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division; and Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division made the announcement. 

Following a month long jury trial before the Hon. Chief Judge Colleen McMahon of the U.S. District Court for the Southern District of New York, a jury convicted former Deutsche Bank supervisor Matthew Connolly, 53, of Basking Ridge, New Jersey, of one count of conspiracy and two counts of wire fraud and former derivatives trader Gavin Campbell Black, 48, of London, of one count of conspiracy and one count of wire fraud.  A sentencing date has not been set. 

“Matthew Connolly and Gavin Black undermined the integrity of our financial markets by manipulating LIBOR, which is widely considered to be the most important number in the financial world because of its impact on trillions of dollars in financial products,” said Assistant Attorney General Benczkowski.  “The Justice Department and its law enforcement partners will aggressively investigate and prosecute individuals and financial institutions who engage in this sort of misconduct.”

“Today’s convictions demonstrate our continuing commitment to prosecute those who fraudulently manipulated the financial markets for their own personal benefit and, in doing so, undermined free market competition,” said Assistant Attorney General Delrahim.  “Such conduct will not be tolerated by this administration, especially when it threatens to destabilize global markets and financial stability worldwide.  This case is a compelling example of effective coordination among law enforcement agencies — both at home and abroad.  The Antitrust Division will continue to work with its many partners to aggressively pursue other individuals involved in this or other illegal schemes that undermine free financial markets.”

“Today’s conviction should serve as a reminder of our commitment to hold individuals and institutions accountable for their involvement in complex fraud schemes,” said Special Agent in Charge DeSarno. “The FBI will continue to work with our global partners in bringing those who undermine our financial markets to justice.”

According to evidence presented at trial, LIBOR is an averaged interest rate, calculated based on submissions from lending banks around the world, reflecting the honest and unbiased rates those banks believed they would be charged if borrowing from other banks.  LIBOR was published by the British Bankers’ Association, a trade association based in London.  The published LIBOR “fix” for USD currency was the result of a calculation based upon submissions from a panel of 16 banks, including Deutsche Bank. 

Connolly was Deutsche Bank’s director of the Pool Trading Desk in New York, where he supervised traders who traded USD LIBOR-based derivative products.  Black was a director on Deutsche Bank’s Money Market and Derivatives Desk in London, who also traded USD LIBOR-based derivative products.  In order to increase Deutsche Bank’s profits on derivatives contracts tied to the USD LIBOR, Connolly directed his subordinates to reach out to Deutsche Bank’s LIBOR submitters to ask them to submit false and fraudulent LIBOR contributions consistent with his traders’ or the banks’ financial interests, rather than the honest and unbiased costs of borrowing, the evidence showed.  The jury also heard evidence that Black asked Deutsche Bank’s cash traders who were responsible for submitting the bank’s LIBOR rates to ask that they adjust their submissions to favor his derivative trading positions.  According to evidence at trial, several Deutsche Bank LIBOR submitters accommodated the defendants’ LIBOR manipulation requests.

In April 2015, Deutsche Bank entered into a deferred prosecution agreement to resolve wire fraud and antitrust charges and Deutsche Bank Group Services (UK) Limited pleaded guilty to one count of wire fraud, collectively agreeing to pay a $775 million fine, for the bank’s role in the scheme.  Two Deutsche Bank traders pleaded guilty to fraud charges related to the LIBOR manipulation scheme. 

Special agents, forensic accountants and intelligence analysts of the FBI’s Washington Field Office are conducting the investigation.  Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section and Trial Attorneys Michael Koenig and Christina Brown of the Justice Department’s Antitrust Division are prosecuting the case.  The department acknowledges the contributions of Clair Dobbin, of Three Raymond Buildings Barristers, and Alan Ward, of Stephenson Harwood LLP, for their advocacy on behalf of the United States in the British courts.    

The investigation leading to this case has required, and has greatly benefitted from, a diligent and wide-ranging assistance among various enforcement agencies both in the United States and abroad.  In particular, the Department acknowledges and expresses its appreciation for this assistance from the Commodity Futures Trading Commission’s Division of Enforcement, the U.K. Financial Conduct Authority, and the U.K. Serious Fraud Office.  Valuable assistance was provided by the Justice Department’s Office of International Affairs and the Civil Division’s Office of Foreign Litigation.

The Justice Department today announced that Marq Perez, 26, was sentenced to more than 24 years in prison for burning down the Victoria Islamic Center on Jan. 28, 2017. Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Ryan Patrick for the Southern District of Texas, Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Special Agent in Charge Perrye K. Turner of the FBI made the announcement.

A jury found Perez guilty on July 16, for a hate crime in the burning of the Victoria Islamic Center (the mosque) on Jan. 28, 2017, and for the use of fire to commit a federal felony.  In addition, the jury found that Perez possessed an unregistered destructive device for a separate but related incident that occurred on Jan. 15, 2017.

“Everyone in this country has the right to worship freely without fear of violence,” said Acting Assistant Attorney General John Gore. “This defendant terrorized the Muslim community in Victoria, and the Department partnered with federal, state, and local agencies to ensure that the person responsible for this heinous hate crime would be found and prosecuted.”

“The Attorney General has said that the Freedom of religion is indeed our ‘first freedom’—being the first listed right of our First Amendment,” said Patrick. “The Department of Justice prosecutes violent and dangerous crime, but also, and particularly when that crime interferes with someone’s ability to practice their religious faith. Not only was this a dangerous and potentially deadly act, but also one spurred from hate. I am glad justice was served in this case.”

“ATF is the primary federal law enforcement agency tasked with investigating House of Worship Fires and views an arson against a house of worship as not just an attack on a building, but as an attack against an entire community,” said Milanowski. “ATF is pleased the defendant has been held accountable for this crime and will continue to respond to these violent crimes using all available resources.”

“Mr. Perez sought to provoke terror within the tranquil space of the Victoria Islamic Center," said FBI Assistant Special Agent-in-Charge Edward Michel. "By deliberately burning down this mosque, Mr. Perez attacked a specific religious congregation in the hope of spreading fear, conflict and depriving Victoria’s Islamic community of their peaceful and safe place to worship. Today's sentencing illustrates that hate crimes will not be tolerated. No one in this country should feel afraid to openly practice their religion or express their beliefs. The FBI will continue to aggressively investigate civil rights violations wherever and whenever they occur."

Testimony at trial detailed how Perez conducted what he described as “recon” by breaking into the mosque a week before he set it on fire. Evidence presented at trial showed that Perez communicated with someone through Facebook about breaking into the mosque a second time, the same night of the fire. A witness who was with Perez on the night of the fire described how Perez used a lighter to set papers on fire inside the mosque and how excited Perez was upon seeing the mosque in flames just minutes later. The witness testified that Perez said that he burned down the mosque, because he wanted to “send a message.” During the execution of a search warrant, federal agents recovered stolen property taken from the mosque the night of the fire in Perez’s home. Several witnesses at trial also testified about Perez’s animus towards Muslims and that he often used anti-Muslim slurs.

When Perez learned that the Victoria Muslim community had raised money to rebuild the mosque, he told a witness that he would burn the mosque down again if it was rebuilt.

Members of the mosque testified at the trial that they watched from afar as federal, state, and local law enforcement officers tried to extinguish the fire, but observed that the fire could not be put out until it had engulfed the entire mosque. Those witnesses also testified that, after the destruction of the mosque, the Victoria Islamic Center raised money online from over 20,000 individuals from all over the United States and over 90 countries to rebuild the mosque.   

ATF and FBI conducted the investigation along with the City of Victoria Fire Marshal’s Office, Victoria Fire Department, Victoria Police Department, Texas Department of Public Safety - Criminal Investigations Division and Texas Rangers with assistance of Texas State Fire Marshal’s Office and Sheriff’s Offices in Victoria and Nueces Counties and the Victoria County District Attorney’s Office.

Assistant U.S. Attorneys Sharad S. Khandelwal and Kate Suh prosecuted the case along with Trial Attorney Saeed Mody of the Department of Justice’s Civil Rights Division.

Under the leadership of Attorney General Jeff Sessions, the Department of Justice charged the largest number of violent crime and firearm defendants in its history in Fiscal Year (FY) 2018.

“President Donald Trump is a law-and-order President—and this is a law-and-order administration,” said Attorney General Jeff Sessions.  “The Department of Justice is breaking law enforcement records and doing so by significant margins.  When I took office as Attorney General, I ordered federal prosecutors and agents to take illegal guns off of our streets, to prosecute crimes aggressively, to protect our nation’s borders, and to target white collar fraud.  With support from our state and local partners, our federal prosecutors and agents have delivered—and I am grateful to them and the fabulous state and local officers who worked so hard to make these achievements possible.  And we are seeing results.  Violent crime and homicides, which jumped in 2015 and 2016, both dropped in 2017 and will drop again in 2018.  There can be no doubt that good law enforcement policies can make our communities safer.”

According to data from the Executive Office for United States Attorneys (EOUSA), the number of defendants charged with criminal felony offenses increased by nearly 15 percent from more than 71,200 defendants in FY 2017 to more than 81,800 in FY 2018. 

In FY 2018, the Justice Department charged the largest number of violent crime defendants since EOUSA started to track this category more than 25 years ago (more than 16,800)—surpassing by nearly 15 percent the previous record set just last year.

In FY 2018, the Justice Department charged more than 15,300 defendants with federal firearms offenses, which is 17 percent more than the previous record.

In FY 2018, over 23,400 defendants were charged with felony illegal re-entry, an increase of more than 38 percent from FY 2017.

In FY 2018, over 23,600 defendants were charged with drug-related offenses, an increase of more than six percent from FY 2017.  

Also in FY 2018, the Justice Department increased white-collar prosecutions by more than three percent, charging more than 6,500 defendants.

Finally, in FY 2018, more than 68,400 defendants were charged with misdemeanor illegal entry.  This is the highest number of such defendants charged since EOUSA started to track this category and an almost 86 percent increase from the previous year.  This total is also more than 4 percent higher than the previous record of over 65,500 defendants set in FY 2013.

The United States of America, through its Departments of Justice, Treasury, and State  announced today a series of measures to target and dismantle the Cartel Jalisco Nueva Generacion (CJNG) – one of the largest, most dangerous drug cartels currently operating in Mexico. These measures include the unsealing of 15 indictments, the State Department’s approval of large rewards, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designations, and the establishment of a citizen tip-line.   

CJNG is one of the most powerful cartels in Mexico and the Department of Justice considers it to be one of the five most dangerous transnational criminal organizations in the world, responsible for trafficking many tons of cocaine, methamphetamine and fentanyl-laced heroin into the United States, as well as for violence and significant loss of life in Mexico.

Attorney General Jeff Sessions of the U.S. Department of Justice, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), FBI Deputy Director David L. Bowdich, Director Andrea Gacki of OFAC, Assistant Secretary for International Narcotics and Law Enforcement Affairs Kirsten D. Madison of the U.S. Department of State, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Executive Associate Director Derek Benner and Chief Don Fort of IRS Criminal Investigation (IRS-CI), made the announcement.

Background

Founded in 2011, CJNG has grown in size and strength rapidly since its inception.  Today, the DEA estimates the CJNG exerts influence in 23 of 31 (75 percent) of Mexican states, including  key drug production and transportation corridors.  CJNG is a powerful drug cartel in Mexico as a result of the organization’s disciplined command and control, sophisticated money laundering techniques, efficient drug transportation routes, and extreme violence.  The cartel has also expanded globally, with significant presence and illicit business not only throughout the United States and Mexico, but also Europe, Asia, and Australia. 

“We will continue to hammer transnational criminal organizations like the Cartel de San Jalisco Nueva Generacion, or CJNG,” said Attorney General Sessions.  “The DEA has said for three years in a row that Mexican drug cartels are the single gravest drug threat that this country faces.  President Trump recognizes this, and the day I was sworn in as Attorney General, he ordered me to dismantle transnational criminal organizations, including the cartels.  We have been faithful to that order.  Today, I am announcing 15 indictments returned against the leaders of CJNG. These indictments are our next steps—but not our last.  We will continue following President Trump’s order.”

“DEA has a strong partnership with the Government of Mexico that is demonstrated in the relentless pursuit of the violent leadership of the CJNG cartel,” said Acting Administrator Dhillon. “We will continue to work closely with our international partners to bring Nemiso Cervantes aka El Mencho to justice and dismantle drug cartels like CJNG.”

Unsealing of Indictments

Today, the Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section, U.S. Attorney’s Office in the Southern District of California, the Northern District of Illinois, the Southern District of Mississippi, and the Eastern District of Virginia are announcing 15 indictments, some recently unsealed, against the following CJNG leaders, financiers, transporters, and sources of drug supply:

Nemesio Oseguera Cervantes, aka “Mencho”:  Oseguera Cervantes, 52, is the lead defendant in a three-count superseding indictment returned in the District of Columbia in 2017 alleging that he is the leader of a Continuing Criminal Enterprise, conspired to distribute significant quantities of narcotics for illegal importation into the United States, and has used a firearm during and in relation to these drug trafficking crimes.  In addition to the indictment in the District of Columbia, Oseguera Cervantes has also been charged with drug trafficking offenses in the Southern District of Mississippi (SDMS).  He is currently a fugitive and was designated as a “Kingpin” under the Foreign Narcotics Kingpin Designation Act by the Department of the Treasury in April 2015. 

Ruben Oseguera Gonzalez, aka, “Menchito”:  Oseguera Gonzalez, 28, Oseguera Cervantes’ son, served as the CJNG’s second in command until the time of his arrest by Mexican authorities in June 2015.  Oseguera Gonzalez is charged in a two-count indictment returned in the District of Columbia in 2017 alleging that between 2007 and February 2017, Oseguera Gonzalez engaged a conspiracy to distribute significant quantities of narcotics for illegal importation into the United States and that Oseguera Gonzalez engaged in the use of a firearm during and in relation to one or more drug trafficking crimes.  Oseguera Gonzalez remains in Mexican custody and is currently pending extradition to the United States. 

Abigael Gonzalez Valencia: Gonzalez Valencia, 45, the head of the “Cuinis” organization, is charged in a three-count indictment returned in the District of Columbia in 2014 alleging that he was a leader in a Continuing Criminal Enterprise, conspired to distribute significant quantities of narcotics for illegal importation into the United States, and used a firearm during and in relation to one or more drug trafficking crimes.  The CJNG has flourished in significant part because of its close affiliation with the Cuinis organization, which is the primary financial support network of the CJNG drug trafficking efforts.  The Cuinis organization is composed of multiple members of the Gonzalez Valencia family.  The relationship between the Cuinis organization and the CJNG is cemented through both intertwined drug trafficking and money laundering dealings as well as familial relationships, including the marriage of one member of the Gonzalez Valencia family to CJNG leader Nemesio Oseguera Cervantes.  Gonzalez Valencia was designated as a “Kingpin” under the Foreign Narcotics Kingpin Designation Act by the Department of the Treasury in April 2015.  Gonzalez Valencia was arrested by Mexican authorities in February 2015 pursuant to his charges in the United States and is awaiting extradition.

Jesus Contreras Arceo, aka “Canasto”:   Contreras Arceo, 41, is charged in a two-count indictment returned in the Eastern District of Virginia in 2017 alleging that between 2011 until March 2017, Contreras Arceo engaged in a conspiracy to distribute significant quantities of narcotics for illegal importation into the United States and that Contreras Arceo engaged in a conspiracy to commit money laundering.  Contreras Arceo was arrested by Mexican authorities in July 2018 pursuant to his charges in the United States and is awaiting extradition.

Erick Valencia Salazar, aka “El 85”:  Valencia Salazar, 41, is charged in a one-count indictment returned in the District of Columbia in 2018 alleging that between 2003 until August 2018, Valencia Salazar engaged in a conspiracy to distribute significant quantities of narcotics for illegal importation into the United States.  Valencia Salazar is currently a fugitive and is believed to be in Mexico.

Juan Perez-Vargas, aka, “Piolin”:  Perez-Vargas, 37, is charged in a two-count indictment returned in the Southern District of California in 2017 alleging that Perez-Vargas engaged in a conspiracy to distribute significant quantities of narcotics for illegal importation into the United States.  Perez-Vargas was arrested by Mexican authorities in September 2017 pursuant to his charges in the United States and is awaiting extradition. 

Diego Pineda Sanchez, aka “Botas” and Carlos Parra-Pedroza:  Pineda Sanchez, 33, and Parra-Pedroza, 35, are charged with 28 others in a 63-count indictment returned in the Northern District of Illinois in 2015, alleging that between 2011 and September 2014, Pineda Sanchez and Parra-Pedroza led a Mexico-based conspiracy to launder more than $100 million in narcotics proceeds belonging to Mexico-based drug traffickers, through the purchase and resale of gold.  The evidence in the case established that Pineda Sanchez and Parra-Pedroza laundered most of these narcotics proceeds on behalf of CJNG and its leader, Nemesio Oseguera Cervantes aka “Mencho.”  Pineda Sanchez and Parra-Pedroza have pleaded guilty to the money laundering conspiracy charges, and are facing a statutory maximum sentence of 20 years in prison.  On Oct. 5, Pineda Sanchez was sentenced to serve 15 years in prison by the U.S. District Court in Chicago.  The Court will set a sentencing date for Parra-Pedroza at a status hearing on Nov. 1.  All other charged and arrested members of the conspiracy have pleaded guilty and have either been sentenced or are awaiting sentencing.

The following individuals linked to the CJNG have also been indicted as a result of the coordinated efforts against the cartel:

• Oswaldo de Jesus Miramontes-Diaz, 44, was charged in the Central District of California in 2015. Miramontes-Diaz is currently serving a sentence pursuant to the charges in the United States;
• Gerardo Gonzalez Valencia, aka, “Lalo,” 41, was charged in the District of Columbia in 2016. He was arrested by Uruguayan authorities in April 2016 on these charges, and is awaiting extradition; 
• Jose Gonzalez Valencia, aka, “Chepa,” 42, was charged in the District of Columbia in 2016. He was arrested by Brazilian authorities in December 2017 on these charges, and is awaiting extradition;
• Ulises Yovany Mora-Tapia, aka, “Yiyo,” 33, was charged in the District of Columbia in 2016. Mora-Tapia is currently a fugitive and is believed to be in Mexico;
• Jorge Manuel Cobian-Gonzalez, 43, was charged in the Eastern District of Virginia in 2017. Cobian-Gonzalez is currently awaiting trial;
• Juan Manuel Abouzaid El Bayeh aka, “El Escorpion,” 45, was charged in the District of Columbia in 2017. Abouzaid El Bayeh is currently a fugitive and is believed to be in Mexico; and
• Alfredo Galindo-Salazar aka, “Tucan,” 47, was charged in the District of Columbia in 2018. Galindo-Salazar is currently a fugitive and is believed to be in Mexico.

Treasury OFAC Designations

Since April 2015, OFAC has announced nine designation actions totaling 63 separate individuals and entities in Mexico tied to the CJNG and the Cuinis organization.  In the initial 2015 designation action, both Nemesio Oseguera Cervantes and Abigael Gonzalez Valencia were designated by OFAC as Specially Designated Narcotics Traffickers under the Foreign Narcotics Kingpin Designation Act.  These Kingpin Act designation actions targeting the CJNG and the Cuinis organization are among the most aggressive and targeted in OFAC’s history against Mexican drug trafficking organizations.  Based upon this series of OFAC designations, Mexican authorities were able to seize the Hotelito Desconocido, an exclusive boutique hotel on the Pacific coast of Mexico, which was controlled by members of Los Cuinis organization.  OFAC designations have allowed U.S. and Mexican government officials to follow the money of the CJNG and the Cuinis organization in an effort to disrupt their money laundering activities.

“Treasury has strategically targeted leaders of CJNG and the Cuinis organizations, as well as complicit family members, criminal operatives, and businesses under their control,” said OFAC Director Gacki.  “Our goal is to disrupt the cartels’ finances, which are overwhelmingly generated from drug sales that occur in the United States, and deny them access to the U.S. financial system.  OFAC is committed to working with the Department of Justice and Mexican counterparts in order to apply economic pressure on CJNG and the Cuinis organizations until they are effectively dismantled.”

State Department Award and DEA Tip-Line

As part of continuing efforts to cripple the operations of the CJNG, the U.S. Department of State has previously issued a number of rewards through the Narcotics Rewards Program for information leading to the arrest of critical CJNG operatives.  Previously, the Department of State issued rewards through the Narcotics Rewards Program for up to the amount of $5 million for information leading to the arrests of Nemesio Oseguera Cervantes, Abigael Gonzalez Valencia, and Jose Gonzalez Valencia.   Effective immediately, the Department of State is announcing an increase to the Narcotics Rewards Program reward for information leading to the arrest of the leader of the CJNG, Nemesio Oseguera Cervantes aka, “El Mencho.”  Now $10 million, the reward is one of the largest ever approved for the Narcotics Rewards Program.  Additionally, the Department of State is announding a Narcotics Rewards Program reward for information leading to the arrest of high ranking CJNG member Erick Valencia Salazar, aka, “El 85,” in the amount of $5 million.  Individuals with information about this organization should contact law enforcement authorities by calling 1-213-237-9990, via email at MENCHOTIPS@usdoj.gov, or via Twitter by contacting the handle, @DEALosAngeles. 

“The $10 million reward for information leading to the arrest of “El Mencho” is among the highest the Narcotics Rewards Program currently offers,” said Assistant Secretary for International Narcotics and Law Enforcement Affairs Madison.  “This reflects the U.S. government’s strong commitment to bringing Oseguera Cervantes to justice.” 

Acknowledgments

These cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), and were significantly aided by coordination and support from the multi-agency Special Operations Division (SOD) near Washington, D.C.  OCDETF is a partnership that brings together the combined expertise and unique abilities of federal, state, and local enforcement agencies.  The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.

These cases are being prosecuted by the Criminal Division’s Narcotic and Dangerous Drug Section in conjunction with DEA Los Angeles Field Division, DEA Mexico City, DEA Guadalajara, DEA Chicago, FBI New York, FBI’s Legal Attaché Office in Mexico City, Homeland Security Investigations (HSI) Chicago and HSI Riverside; the Southern District of California in conjunction with DEA San Diego, DEA Guadalajara and HSI San Ysidro; the Northern District of Illinois in conjunction with the IRS-CI Chicago; the Bureau of Alcohol, Tobacco, Firearms, and Explosives Chicago and HSI Chicago; the SDMS in conjunction with DEA Gulfport and the Eastern District of Virginia in conjunction with the DEA Bilateral Investigations Unit.

The United States would like to acknowledge the significant contributions of the Government of Mexico in their bilateral efforts to target and dismantle the CJNG. The daily coordination between the Government of Mexico with the U.S. Department of Justice, Treasury and State to target this violent drug cartel has a direct impact on the lives and livelihood of millions of citizens in the United States and Mexico.

Relevant Court documents and visuals can be found at: https://www.justice.gov/opa/documents-and-resources-october-16-2018-press-conference?utm_medium=email&utm_source=govdelivery.

A former executive vice president of State Street Corporation was sentenced today in federal court in Boston, Massachusetts, in connection with engaging in a scheme to defraud at least six of the bank’s clients through secret commissions applied to billions of dollars of securities trades. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling for the District of Massachusetts, and Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Office, made the announcement.

Ross McLellan, 47, of Hingham, Massachusetts, was sentenced by U.S. District Court Judge Leo T. Sorokin to 18 months in prison and two years of supervised release. In June 2018, McLellan was convicted by a federal jury of one count of conspiring to commit securities fraud and wire fraud, two counts of securities fraud and two counts of wire fraud.

In April 2016, McLellan, a former executive vice president of State Street who served as global head of its Portfolio Solutions Group and president of its U.S. broker-dealer unit, and Edward Pennings, 47, of Surrey, England, a former senior managing director of State Street and the head of its Portfolio Solutions Group for Europe, the Middle East and Africa, were indicted. In June 2017, Pennings pleaded guilty and is scheduled to be sentenced on Nov. 6.  Also in June 2017, Richard Boomgaardt, 44, of Sevenoaks, England, a former managing director of State Street, was charged separately and pleaded guilty in July 2017 to one count of conspiracy to commit securities fraud and wire fraud.  Boomgaardt was sentenced in July 2018 to one year of probation.

According to the evidence presented at trial, between February 2010 and September 2011, McLellan, Pennings, and Boomgaardt conspired to add secret commissions to fixed income and equity trades performed for at least six clients of the bank’s “transition management” business, which helps institutional clients move their investments between and among asset managers or liquidate large investment portfolios.  The commissions were charged on top of fees that the clients had agreed to pay to the bank, and despite written instructions to the bank’s traders that generally reflected that the clients were not to be charged trading commissions.  McLellan, Pennings, and Boomgaardt took steps to hide the commissions from the clients and others within the bank, including by directing that the commissions not be broken out in post-trade reports.  For example, in a telephone call in March 2010, Pennings instructed Boomgaardt not to talk about the plans to charge hidden commissions on one transaction “with anyone . . . because it’s not going to help our story. Don’t even share it with the rest of the team, to be honest.” 

The evidence at trial demonstrated that in June 2010 McLellan and Boomgaardt requested that the bank’s traders provide them with the reported daily high and low prices of securities that the bank had traded for the client so that they could determine the amount of the commissions to be applied to each security without attracting the client’s attention.   In March 2011 McLellan instructed a U.S. fixed income trader to charge a commission of one basis point (0.01 percent) of yield to each trade conducted for another client – notwithstanding that the written trading instructions for the transaction said to charge zero commissions – and subsequently instructed the trader to delete any reference to the commissions from the trading results he sent to the transition manager assigned to the project.

The evidence at trial further showed that, in June 2011, when one of the affected clients inquired about whether it had, in fact, been charged commissions in breach of its agreement with the bank, Pennings initially denied that any commissions had been charged.  Later, at McLellan’s direction, Pennings acknowledged only that “inadvertent commissions” had been applied to securities traded in the United States, but did not disclose that they had, in fact, been intentionally charged in both the United States and in Europe.  McLellan and Pennings  sought to mislead the bank’s compliance staff into believing that the commissions had been charged in error and that the amount of the overcharges was limited to the commissions applied on U.S. securities.

The case was investigated by the FBI.  Valuable assistance was provided by the Securities & Exchange Commission and the Justice Department’s Office of International Affairs.

Trial Attorney William Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen E. Frank of the District of Massachusetts prosecuted the case.