District of Columbia
Press releases recorded for this federal judicial district.
Former Background Investigator for Federal Government Pleads Guilty to Making a False StatementRead the Press Release
WASHINGTON – Michael Johnson, 43-years old, a former background investigator who did work under contract for the Defense Counterintelligence and Security Agency (DCSA), pled guilty today to a charge stemming from his falsification of work on background investigations of federal employees and contractors, announced Acting U.S. Attorney Michael R. Sherwin.
Johnson, of Columbia, Missouri, pled guilty in the U.S. District Court for the District of Columbia to making a false statement. The Honorable Trevor N. McFadden scheduled sentencing for February 9, 2021. The charge carries a statutory penalty of up to five years in prison and a fine of up to $250,000.
According to a statement of offense submitted to the Court, Johnson was employed by CACI, a private entity that had a contract to supply background investigative services to DCSA on behalf of the Office of Personnel Management’s Federal Investigative Services, which now is known as OPM’s National Background Investigations Bureau. Johnson admitted that, between approximately April 2015 and February 2016, he submitted roughly 65 Reports of Investigations on background investigations, in which he falsely represented that he had interviewed a source or reviewed a record regarding the subject of the background investigation. In fact, Johnson had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, for receiving or retaining security clearances, or for positions of public trust.
The false representations by Johnson have required OPM and DCSA to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $254,555.92 to the U.S. government.
OPM has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Johnson, more than 25 other background investigators have been convicted of charges.
This matter was investigated by the DCSA Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Bianca Forde of the Public Corruption and Civil Rights Section.
District Woman Admits to Disclosing the Identity of Superior Court Grand Jury Witness,Comprising Witness SecurityRead the Press Release
WASHINGTON – Dawn Monique Garris, a 45-year-old District of Columbia resident, pled guilty in federal court in the District of Columbia to contempt in violation of 18 U.S.C. § 402, for disclosing the name of a Superior Court grand jury witness to a D.C. Department of Corrections inmate.
Garris pled guilty to Count One of a criminal Indictment charging her with contempt. According to court papers, Garris was the sergeant-at-arms and a grand juror for a D.C. Superior Court grand jury in September 2019. She heard testimony from a grand jury witness as part of a violent crime investigation, and then disclosed the identity of the witness to a D.C. Department of Corrections inmate. In doing so, she violated the grand jury secrecy rules and the direction of the Chief Judge of the D.C. Superior Court.
“The U.S. Attorney’s Office is committed to protecting the integrity of the Superior Court and the local grand jury process,” Acting United States Attorney Michael R. Sherwin announced. “Today’s guilty plea sends a strong message that any potential for compromising witness security will not be tolerated.”
“By law, Grand Juries and the matters which appear before them are both protected and secret, and Garris betrayed the special trust which she was afforded," said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office Criminal Division. "The confidence of the public in the Grand Jury process is central to our judicial system and the rule of law. The FBI will continue to work to investigate all allegations of public corruption, which is the FBI’s top criminal investigative priority.”
Garris pled guilty in United States District Court for the District of Columbia. United States District Judge Carl Nichols is presiding over the case. Sentencing is scheduled for February 23, 2021.
The Washington Field Office of the Federal Bureau of Investigation investigated the case. Assistant United States Attorney Liz Aloi of the Public Corruption and Civil Rights Section is prosecuting the case.
Woman Pleads Guilty to Paying More than $6,500 in Cash Bribes to Metropolitan Police Department Employees in Exchange for Personal Identifying Information of Traffic Crash VictimsRead the Press Release
WASHINGTON – Michelle Cage, 45, of Maryland, pled guilty on November 19, 2020 to bribery for paying more than $6,500 in bribes to a Metropolitan Police Department (MPD) employee, Acting U.S. Attorney Michael R. Sherwin announced.
Cage pled guilty to a criminal Information before the U.S. Magistrate Judge Zia Faruqui in the U.S. District Court for the District of Columbia. The Information charged Cage with one count of bribery of a public official, which carries with it the penalties of up to 15 years of prison followed by three years of supervised release, and a fine of up to $250,000. The guilty plea will be referred to U.S. District Judge Emmett Sullivan for approval and sentencing. A sentencing date has not yet been set.
According to Cage’s admissions in connection with her guilty plea, dating back to at least 2012, Cage worked, in return for referral fees, to connect people in need of legal representation or medical services with providers of those services. In 2017, Cage started MC Referrals and Marketing L.L.C. (MC Referrals) to provide these referral services. To identify potential clients, Cage obtained from the Metropolitan Police Department (MPD) Traffic Accident Reports, or “PD Form 10s,” which contained the names and contact information of individuals involved in traffic accidents. Beginning in 2015, however, MPD General Order 401.03 limited the distribution of these reports to individuals involved in traffic accidents and their representatives. Cage admitted that, beginning at that time and continuing into 2017, she paid cash bribes in the amount of $50 to $200 per week to a clerk in MPD’s First District station, to influence the clerk to violate the General Order and provide Cage with the confidential reports, which Cage used to contact and solicit potential clients. Cage admitted that she paid the clerk at least $6,500 in bribes.
In announcing the guilty plea, Acting U.S. Attorney Sherwin commended the work of those who assisted the case from the FBI’s Washington Field Office and MPD’s Internal Affairs Division. He also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, Public Corruption and Civil Rights Section, including Assistant U.S. Attorney Veronica Sanchez, who prosecuted the case.
Federal Contractor Agrees to Pay $18.98 Million for Alleged False Claims Caused by Overcharges and Unqualified LaborRead the Press Release
WASHINGTON – Cognosante, LLC has agreed to pay the United States $18,987,789 to resolve allegations that it violated the False Claims Act by using unqualified labor and overcharging the United States for services provided to government agencies under two General Services Administration (GSA)) contracts, the Justice Department announced today. Cognosante, which is headquartered in Falls Church, Virginia, provides health care and IT services and solutions to federal agencies.
GSA’s Multiple Award Schedule (MAS) contracts allow the federal government to leverage its buying power to achieve favorable pricing. Under MAS contracts, contractors negotiate with GSA to set maximum prices for goods and services subsequently ordered by agencies across the federal government. These contracts provide streamlined access to the federal marketplace.
The settlement resolves allegations that Cognosante overcharged the United States for services performed under two GSA MAS contracts, including by providing false information concerning Cognosante’s commercial discounting practices during contract negotiations. It also resolves allegations that Cognosante charged the United States for labor that failed to meet the qualifications in one of the contracts.
“MAS contract holders must deal forthrightly with federal agencies during negotiations and throughout the life of their contracts,” said Acting Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will hold accountable contractors who cause the government to pay more than it should for goods and services.”
“This settlement exhibits our dedication to recover overcharges paid by the government,” said Acting U.S. Attorney for the District of Columbia Michael R. Sherwin. “We expect our contracting partners to be fully candid with the government, and we will pursue those that fail to fulfill that expectation.”
"Today's settlement is a result of the successful partnership of the Office of Inspector General and the Department of Justice to protect and maintain the integrity of GSA's Multiple Award Schedule program,” said Carol F. Ochoa, Inspector General of GSA.
Cognosante investigated and disclosed to the United States the contractual violations resolved in the settlement. It received credit for its disclosure and cooperation.
The settlement was the result of a joint investigation by the General Services Administration OIG, the United States Attorney’s Office for the District of Columbia, and the Civil Division’s Commercial Litigation Branch. The claims resolved by the settlement agreement are allegations only and there has been no determination of liability.
U.S. Attorney's Office Closes Investigation into the Death of Deon KayRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia will not pursue federal criminal civil rights charges against the Metropolitan Police Department (MPD) officer involved in the fatal shooting of 18-year-old Deon Kay, the Office announced today.
Officials from the U.S. Attorney’s Office’s Public Corruption and Civil Rights Section (PCCR) and MPD’s Internal Affairs Division (IAD) informed representatives of Mr. Kay’s family today of this determination. Based on the results of a thorough investigation, the U.S. Attorney’s Office cannot prove, beyond a reasonable doubt, that the MPD officer who shot Mr. Kay committed willful violations of the applicable federal criminal civil rights statute.
PCCR and IAD conducted a thorough review of Mr. Kay’s shooting, including examining: statements from officers and civilians on the scene; a voluntary statement from the officer who shot Mr. Kay; body worn camera (BWC) footage; radio transmissions; evidence collected from the incident scene and attendant results of forensic tests; and autopsy and toxicology reports. The review uncovered no evidence that would support a criminal prosecution.
The investigation determined that, on September 2, 2020, an MPD officer fatally shot Mr. Kay, an 18-year-old District resident, during an encounter in a small parking lot near 225 Orange Street, Southeast. According to information obtained during the investigation, the MPD officer and other officers reported to that location because they had obtained information that there were individuals there displaying firearms from inside a parked car. When the officers arrived, individuals inside the parked car exited and ran, including Mr. Kay. One officer encountered Mr. Kay and shot him in the chest. That officer’s BWC shows that Mr. Kay was holding a gun in his right hand and, in approximately the same instant that the officer fired, raised his right arm with the gun in his hand. Mr. Kay tossed the gun, which was found approximately 98 feet from where he was shot. The investigation did not determine whether Mr. Kay tossed the gun deliberately or in response to being shot at. MPD officers on scene administered emergency medical measures and Mr. Kay was transported to George Washington University Hospital, where he passed away approximately 45 minutes after the shooting. Another individual who was inside the parked car with Mr. Kay was found to be in possession of a gun.
The focus of the criminal investigation was to determine whether federal prosecutors could prove that the officer violated any federal or local laws, concentrating on the possible application of 18 U.S.C. § 242, a federal criminal civil rights statute. In order to establish a violation of this statute, prosecutors must prove, beyond a reasonable doubt, that the officer acted willfully to deprive Mr. Kay of a right protected by the Constitution or other law, here the Fourth Amendment right not to be subjected to an unreasonable seizure. Prosecutors would have to prove not only that the officer used force that was constitutionally unreasonable, but that he did so “willfully,” which the Supreme Court has interpreted to mean he acted with a bad purpose to disregard the law. As this requirement has been interpreted by the courts, evidence that an officer acted out of fear, mistake, panic, misperception, negligence, or even poor judgment cannot establish the high level of intent required under Section 242.
The investigation revealed no evidence to establish beyond a reasonable doubt that the officer willfully committed a violation of 18 U.S.C. § 242. Specifically, the U.S. Attorney’s Office is unable to disprove a claim of self-defense or defense of others by the officer involved, who fired a single shot at Mr. Kay within one second of Mr. Kay holding a gun in his hand and raising his arm. The U.S. Attorney’s Office has therefore closed its investigation into this matter.
Washington, D.C. Man Sentenced for Fraud Schemes Involving COVID-19 Protective Equipment, Tax Refunds, and Class Action Settlement PaymentsRead the Press Release
WASHINGTON – A Washington, D.C., man was sentenced November 10, 2020 to 36 months of incarceration for his convictions on charges of mail fraud and wire fraud in relation to the sale of COVID-19 personal protective equipment (“PPE”) and the filing of fraudulent tax refund request and class action settlement claims.
The announcement was made by Michael R. Sherwin, the Acting U.S. Attorney in this case, Peter R. Rendina, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and, Jeff Dewitt, Chief Financial Officer of the District of Columbia Office of Tax and Revenue, Criminal Investigation Division.
Craven Randall Casper, 38, of Washington, D.C., pled guilty in two separate prosecutions, first to mail fraud on March 12, 2020, and later to wire fraud on July 14, 2020. His sentencing was consolidated into one proceeding. On November 10, 2020, Casper was sentenced by Judge Amit Mehta to 36 months’ incarceration. He was placed on three years of supervised release and ordered to pay $235,807.11 in restitution to victims.
According to the government’s evidence, in connection with the mail fraud prosecution, Casper obtained personally identifiable information (“PII”) for taxpayers from around the country and, posing as those taxpayers, filed false state tax income returns that contained refund claims. Casper successfully negotiated approximately 47 of those fraudulently-obtained tax refund checks between approximately February 2018 and July 2019. This amounted to approximately $197,518.82. In some instances, Casper also used individuals’ PII to open bank accounts in their names to further assist him in the scheme. Casper also submitted online fraudulent claims, in other peoples’ names, to various class action settlement funds for payments of money from class action settlements. Between approximately December 2017 and February 15, 2018, Casper successfully negotiated at least 120 fraudulently-obtained class action settlement checks, totaling approximately $34,487.84.
In connection with the wire fraud prosecution, in February and March 2020, Casper created and operated a website, www.coronavirusprotectionmasks.org, on which he advertised for sale personal protection equipment (“PPE”) related to the COVID-19 pandemic. These PPE items included N95 respirator masks, protective masks, and hand sanitizer. Casper did not provide the PPE to the vast majority of his paying customers. He stole at least $3,800.45 from his customers.
This case was investigated by the U.S. Postal Inspection Service, with assistance from the D.C. Office of Tax and Revenue. It was prosecuted by Special Assistant U.S. Attorney Mona Sedky and former Assistant U.S. Attorney Michael J. Marando. Assistance was provided by Victim Witness Coordinator Tonya Jones and Victim Witness Program Specialist Yvonne Bryant, all of the U.S. Attorney’s Office for the District of Columbia.
Two Canadian Brothers and their Company, Payza, Sentenced for Conspiring to Launder Money Service BusinessRead the Press Release
WASHINGTON – On November 10, 2020, Firoz Patel and Ferhan Patel, the founders and operators of Payza.com, AlertPay.com, and Egopay.com, and their company MH Pillars were sentenced in the United States District Court for the District of Columbia for operating an Internet-based unlicensed money service business that processed more than $250 million in transactions.
Firoz Patel was sentenced to 36 months of incarceration; Ferhan Patel was sentenced to 18 months of incarceration; and MH Pillars, Inc., doing business as Payza, was sentenced to three years of corporate probation, announced Acting U.S. Attorney Michael R. Sherwin. The defendants were also ordered to forfeit more than $4.5 million that had already been seized by the United States. The defendants were also required to forfeit the websites through which they committed their offenses, Payza.com and AlertPay.com.
On July 17, 2020, Firoz Patel, 46, and Ferhan Patel, 39, both of Quebec, Canada, each pled guilty to Conspiracy to Commit Crimes against the United States by Operating an Unlicensed Money Transmitting Business and by Laundering Monetary Instruments. The Honorable Ketanji B. Jackson of the United States District Court took the defendants’ guilty pleas and sentenced them.
“Operating an unlicensed money transmitting business that launders the transactions of other crimes and frauds is a serious criminal offense. Without the money laundering, the frauds run by Payza’s customers could not have been completed,” said U.S. Attorney Sherwin. “These convictions will remind criminals that the United States will do everything within its power to take the profit out of crime and convict those who enable fraud.”
The defendants, through Payza.com, operated a money transmitting business that operated without the necessary state licenses and knowingly transmitted funds that were derived from illegal activity. Despite receiving cease and desist letters from States and being told by a consultant that operating a money transmission business without the necessary licenses was a crime, Firoz and Ferhan Patel continued their illegal activity. For example, Firoz Patel admitted to operating a prior money service business, AlertPay, which ignored repeated warnings from state regulators about its unlicensed activities. Firoz Patel transitioned AlertPay into Payza after Firoz Patel was the subject of a Tennessee indictment for laundering narcotics proceeds through AlertPay. The defendants admitted that no substantive changes took place during this rebrand.
Payza had numerous merchants which the defendants knew to be Ponzi/pyramid schemes. The defendants admitted to sanitizing Payza’s customers list by removing known illegal merchants, before producing that information to third parties requesting customer information. For example, a co-conspirator informed Ferhan Patel in a series of emails that he was looking through the merchant list to remove “any merchants who have gross violations such as adult, gambling, drugs, violence ect. [sic]. And what I think is the tricky part: Identify MLM’s [multi-level marketing schemes] that are set up as obvious illegal Pyramid schemes.” Payza failed to follow its own “Merchant Risk Guideline,” as internal documents revealed specific failures in relation to preventing the taking on and servicing of pyramid and Ponzi schemes.
The defendants further admitted that Payza struggled to maintain its relationships with financial institutions, because Payza so frequently was found to have customers engaged in illegal activity. Firoz Patel’s solution to this was to create a new company, Egopay, which took on all of Payza’s high risk customers. Firoz Patel and Ferhan Patel caused an email to be sent to high-risk Payza customers directing them to migrate their accounts to Egopay. Ferhan Patel told Firoz Patel that Egopay was a problem in the U.S. because Egopay collected no customer due diligence data which created “obvious money laundering concerns.” Ferhan Patel further admitted to Firoz Patel that Egopay was classified as a money service business and that it had no know your customer checks in place. In spite of these known money laundering problems, Firoz Patel continued to allow Egopay to operate freely via the Payza platform. Ultimately, Egopay was shut down by regulators in Belize, after which Payza began again directly servicing many of Egopay’s customers.
The defendants each admitted that their scheme caused over $250 million to be illegally transmitted and to failing to conduct proper due diligence of their customers. The defendants also acknowledged that their actions were done willfully, knowingly, and with the specific intent to violate the law.
In announcing the sentencing, Mr. Sherwin praised the efforts of those who have investigated and prosecuted the case. He expressed appreciation to the agents who worked on the investigation from the Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations, Washington Field office. He also commended those who worked on the case from the U.S. Attorney’s Office, including former Paralegals C. Rosalind Pressley and Toni Donato, Paralegals Elizabeth Swienc and Brian Rickers, Records Examiner Angela De Falco, Contract Financial Analyst Jason Hall, Victim Witness Specialists Yvonne Bryant and Basizette Stribling, Legal Assistant Jessica McCormick, and Thomas Royal and Joshua Ellen from the Litigation Support Section.
Finally, he praised the work of Assistant United States Attorney Arvind Lal and former Assistant United States Attorneys Zia Faruqui and John Marston.
USDA Contractor Admits to Giving Gifts to USDA Officials to Influence Award of Contracts and Obstructing Federal Grand Jury InvestigationRead the Press Release
WASHINGTON – Eric Schneider, a 60-year-old Virginia resident and former Vice-President and Chief Operating Officer of Communications Resource, Inc. (CRI), pled guilty on November 6, 2020 in federal court in the District of Columbia to one count of conspiracy to violate the Procurement Integrity Act and one count of obstruction of justice.
According to court papers, Schneider admitted to giving gifts to multiple officials at the United States Department of Agriculture (USDA) to influence the award of contracts worth over $19.2 million to CRI and another company he controlled. Schneider admitted to giving USDA officials Corvette wheels, concert tickets, PGA tour tickets, meals, alcohol, strip clubs, parking, concierge medical services, prescription drugs, and other cash tips. Schneider further admitted that, as part of the conspiracy, he drafted or instructed employees to draft procurement documents in such a way as to favor the award of a multi-million dollar contract to CRI. Schneider then provided the documents to a USDA official to whom he provided gifts, for use in the procurement process as if they had been prepared by the USDA. Schneider also admitted to directing two CRI employees to destroy documents responsive to a federal grand jury subpoena.
Schneider pled guilty in United States District Court for the District of Columbia. United States District Judge Carl J. Nichols is presiding over the case. A sentencing date has not yet been set. The maximum penalty for conspiracy is five years in prison and a fine of not more than $250,000 or twice the pecuniary gain or loss of the offense. The maximum penalty for obstruction of justice is ten years of imprisonment.
The Washington Field Office of the Federal Bureau of Investigation, and the Beltsville Field Office of the United States Department of Agriculture, Office of the Inspector General (OIG) investigated the case, along with assistance from the Department of Health and Human Services OIG, the Department of State OIG and the Small Business Administration OIG. Assistant United States Attorney Elizabeth Aloi of the Public Corruption and Civil Rights Section is prosecuting the case.
Taiwan Individual and International Business Organizations Charged with Criminal Conspiracy to Violate Iranian SanctionsRead the Press Release
Chin Hua Huang, 42, a resident of Taiwan, was charged in the United States District Court for the District of Columbia with participating in a criminal conspiracy to violate U.S. export laws and sanctions against Iran. Also charged was Taiwan business organization DES International Co., Ltd. (DES Int’l) and Brunei business organization Soltech Industry Co., Ltd. (Soltech).
Huang, DES Int’l, and Soltech were charged in a criminal complaint with conspiring to defraud the United States and to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSRs).
“The defendants are charged with conspiring to violate American sanctions on Iran by buying goods from the United States, concealing the origin of those goods and sending them to Iran for use by the government and business,” said Assistant Attorney General for National Security John Demers. “Violations of the sanctions diminish their effectiveness and delay the day when Iran will cease its belligerent activity.”
“Individuals or business organizations that violate U.S. laws by providing U.S. goods to Iran without a license will be prosecuted to the fullest extent of the law,” said Acting U.S. Attorney Sherwin.
“The FBI greatly appreciates the coordinated efforts with HSI, OFAC, DCIS, BIS, DC USAO, and DOJ CES to bring formal charges against DES International, it’s subsidiary Soltech Industry, and Ms. Chin Hua Huang. Together, they worked to relentlessly pursue every lead to ensure these individuals would face the charges detailed in the criminal complaint for their roles in illegally supplying U.S. technology to Iran,” stated FBI San Antonio Division Special Agent in Charge Christopher Combs. “The items, which were allegedly delivered by DES International, its front companies and Ms. Huang to Iran, undermined our national security. For me, the most impressive aspect of this investigative team’s diligent work was not only the criminal charges against these three entities, but also the addition of four individuals and more than six companies to the Department of Treasury Office of Foreign Asset Control’s Specially Designated Nationals and Blocked Persons List (SDN) surrounding this proliferation network located throughout the Middle East and Asia.”
“Today’s action is a tremendous example of Homeland Security Investigations’ (HSI) collaborative commitment to enforce the export laws of the United States. These individuals and organizations are eroding our country’s national security and legitimate commerce by transshipping sensitive U.S. technology to Iran through various shell companies and affiliates,” said Special Agent in Charge, Shane Folden, HSI San Antonio. “This effort demonstrates the U.S. Government’s enduring resolve to ensure significant consequences to violators. HSI is uniquely positioned to use its wide ranging investigative authorities and global footprint to mitigate weaknesses within the U.S. trade and financial sectors by utilizing the full authorities of the U.S. Government.”
"This investigation underscores the Defense Criminal Investigative Service's commitment to safeguarding our nation's most sensitive technologies and preventing those technologies from getting into the hands of our adversaries," said Michael Mentavlos, Special Agent in Charge of the DCIS Southwest Field Office. "DCIS, in consort with our law enforcement partners, will continue to aggressively identify, disrupt, and bring to justice those who attempt to circumvent export control laws and threaten the integrity of U.S. military technology."
“Today’s action is the result of seamless coordination and collaborative counter proliferation efforts of a very dedicated multi-agency team of law enforcement professionals from the Office of Export Enforcement (OEE), Homeland Security Investigations, Defense Criminal Investigative Service, the FBI and the Department of Justice. OEE and our partners will continue to prevent the illegal export of U.S. technologies and protect American businesses by combatting transnational criminal networks and violators of our export laws.” said P. Lee Smith, Performing the Nonexclusive Functions and Duties of the Assistant Secretary for Export Enforcement, Bureau of Industry and Security, US Department of Commerce.
The affidavit in support of the criminal complaint alleges that Huang was a sales agent for DES Int’l and Soltech, both of which procured goods from the United States for the benefit of Iranian government entities and business organizations. DES Int’l and Soltech were affiliated with one another by virtue of common directors, employees, and customers. Huang used her position as a sales agent to help an Iranian research center obtain U.S. goods without a license from the Department of the Treasury. These goods included a power amplifier designed for use in electromechanical devices, and cybersecurity software. Huang took steps to conceal the U.S. origin of the goods, including by removing serial number stickers with the phrase “Made in USA” from packages, and by causing the cybersecurity software to be downloaded onto a computer outside of Iran. Huang shared developments regarding this illegal conduct with other employees and directors of DES Int’l and Soltech.
A concurrent action was taken by the Department of the Treasury, sanctioning Huang, DES Int’l, and Soltech, and seven related individuals and entities.
If convicted, Huang would face up to five years of imprisonment and a fine of up to $250,000, and Des Int’l and Soltech would each face a fine of up to $500,000. The criminal charge in the complaint is an allegation, and criminal defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The investigation was conducted by the FBI’s San Antonio, Texas, Field Office, HSI, DCIS, and DOC. Assistant U.S. Attorney Michael J. Friedman and National Security Division Trial Attorney William Mackie are representing the United States.
Taiwan Individual and International Business Organizations Charged with Criminal Conspiracy to Violate Iranian SanctionsRead the Press Release
WASHINGTON – Chin Hua Huang, 42, a resident of Taiwan, was charged in the United States District Court for the District of Columbia with participating in a criminal conspiracy to violate U.S. export laws and sanctions against Iran. Also charged was Taiwan business organization DES International Co., Ltd. (DES Int’l) and Brunei business organization Soltech Industry Co., Ltd. (Soltech).
Huang, DES Int’l, and Soltech were charged in a criminal complaint with conspiring to defraud the United States and to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSRs).
“Individuals or business organizations that violate U.S. laws by providing U.S. goods to Iran without a license will be prosecuted to the fullest extent of the law,” said Acting U.S. Attorney Sherwin.
“The defendants are charged with conspiring to violate American sanctions on Iran by buying goods from the United States, concealing the origin of those goods and sending them to Iran for use by the government and business,” said Assistant Attorney General for National Security John Demers. “Violations of the sanctions diminish their effectiveness and delay the day when Iran will cease its belligerent activity.”
“The FBI greatly appreciates the coordinated efforts with HSI, OFAC, DCIS, BIS, DC USAO, and DOJ CES to bring formal charges against DES International, its subsidiary Soltech Industry, and Ms. Chin Hua Huang. Together, they worked to relentlessly pursue every lead to ensure these individuals would face the charges detailed in the criminal complaint for their roles in illegally supplying U.S. technology to Iran,” stated FBI San Antonio Division Special Agent in Charge Christopher Combs. “The items, which were allegedly delivered by DES International, its front companies and Ms. Huang to Iran, undermined our national security. For me, the most impressive aspect of this investigative team’s diligent work was not only the criminal charges against these three entities, but also the addition of four individuals and more than six companies to the Department of Treasury Office of Foreign Asset Control’s Specially Designated Nationals and Blocked Persons List (SDN) surrounding this proliferation network located throughout the Middle East and Asia.”
“Today’s action is a tremendous example of Homeland Security Investigations’ (HSI) collaborative commitment to enforce the export laws of the United States. These individuals and organizations are eroding our country’s national security and legitimate commerce by transshipping sensitive U.S. technology to Iran through various shell companies and affiliates,” said Special Agent in Charge, Shane Folden, HSI San Antonio. “This effort demonstrates the U.S. Government’s enduring resolve to ensure significant consequences to violators. HSI is uniquely positioned to use its wide ranging investigative authorities and global footprint to mitigate weaknesses within the U.S. trade and financial sectors by utilizing the full authorities of the U.S. Government.”
"This investigation underscores the Defense Criminal Investigative Service's commitment to safeguarding our nation's most sensitive technologies and preventing those technologies from getting into the hands of our adversaries," said Michael Mentavlos, Special Agent in Charge of the DCIS Southwest Field Office. "DCIS, in consort with our law enforcement partners, will continue to aggressively identify, disrupt, and bring to justice those who attempt to circumvent export control laws and threaten the integrity of U.S. military technology."
“Today’s action is the result of seamless coordination and collaborative counter proliferation efforts of a very dedicated multi-agency team of law enforcement professionals from the Office of Export Enforcement (OEE), Homeland Security Investigations, Defense Criminal Investigative Service, the FBI and the Department of Justice. OEE and our partners will continue to prevent the illegal export of U.S. technologies and protect American businesses by combatting transnational criminal networks and violators of our export laws.” said P. Lee Smith, Performing the Nonexclusive Functions and Duties of the Assistant Secretary for Export Enforcement, Bureau of Industry and Security, US Department of Commerce.
The affidavit in support of the criminal complaint alleges that Huang was a sales agent for DES Int’l and Soltech, both of which procured goods from the United States for the benefit of Iranian government entities and business organizations. DES Int’l and Soltech were affiliated with one another by virtue of common directors, employees, and customers. Huang used her position as a sales agent to help an Iranian research center obtain U.S. goods without a license from the Department of the Treasury. These goods included a power amplifier designed for use in electromechanical devices, and cybersecurity software. Huang took steps to conceal the U.S. origin of the goods, including by removing serial number stickers with the phrase “Made in USA” from packages, and by causing the cybersecurity software to be downloaded onto a computer outside of Iran. Huang shared developments regarding this illegal conduct with other employees and directors of DES Int’l and Soltech.
A concurrent action was taken by the Department of the Treasury, sanctioning Huang, DES Int’l, and Soltech, and seven related individuals and entities.
If convicted, Huang would face up to five years of imprisonment and a fine of up to $250,000, and DES Int’l and Soltech would each face a fine of up to $500,000. The criminal charge in the complaint is an allegation, and criminal defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The investigation was conducted by the FBI’s San Antonio, Texas, Field Office, HSI, DCIS, and DOC. Assistant U.S. Attorney Michael J. Friedman and National Security Division Trial Attorney William Mackie are representing the United States.
United States Files Complaint to Forfeit Iranian Missiles and Sells Previously-Transferred Iranian PetroleumRead the Press Release
WASHINGTON - The Justice Department today announced the filing of a complaint to forfeit two shipments of Iranian missiles that the U.S. Navy seized in transit from Iran’s Islamic Revolutionary Guard Corps (IRGC) to militant groups in Yemen, as well as the sale of approximately 1.1 million barrels of Iranian petroleum that the United States previously obtained from four foreign-flagged oil tankers bound for Venezuela.
These actions represent the government’s largest-ever forfeitures actions for fuel and weapons shipments from Iran.
“The two forfeiture complaints allege sophisticated schemes by the IRGC to secretly ship weapons to Yemen and fuel to Venezuela, countries that pose grave threats to the security and stability of their respective regions,” said John Demers, Assistant Attorney General for National Security. “Iran continues to be a leading state sponsor of terrorism and a worldwide destabilizing force. It is with great satisfaction that I can announce that our intentions are to take the funds successfully forfeited from the fuel sales and provide them to the United States Victims of State Sponsored Terrorism Fund after the conclusion of the case.”
“These actions demonstrate our commitment to working with all of our law enforcement partners to stem the flow of illicit weapons, oil, and money from Iran’s Islamic Revolutionary Guard Corps and other organizations that would do harm to the United States,” said U.S. Attorney Michael R. Sherwin for the District of Columbia. “The U.S. Attorney’s Office for the District of Columbia will use all available tools, including our jurisdiction to seize and forfeit assets located abroad, to counter terrorist funding and weapons proliferation.”
“This case exemplifies the remarkable collaboration across government toward our shared goal of protecting the homeland from regimes that threaten our national security. This investigation sends a message that the attempted circumvention of U.S. sanctions and the avoidance of export conventions will not be tolerated,” said Derek Benner, Executive Associate Director for Homeland Security Investigations (HSI). “HSI will continue to use the full scope of its authorities and stand besides its partners in the U.S. and around the world keep weapons and assets out of the hands of adversarial regimes.”
“The FBI places a high priority on national security investigations targeting state sponsored foreign terrorist organizations like the IRGC,” said FBI Minneapolis Special Agent in Charge Michael Paul. “We recognize and appreciate the hard work and dedication of the agents and prosecutors who secured forfeiture of the petroleum and prevented its proceeds from funding Iran’s campaign of violence and unrest throughout the Middle East.”
“The illegal exportation of sensitive technology to prohibited countries poses a significant threat to our national security,” said Dermot F. O'Reilly, Director, Defense Criminal Investigative Service (DCIS). “The complaint announced today is the direct result of joint investigative and analytical efforts with close partners in law enforcement and the Department of Defense. DCIS will continue to identify, disrupt, and bring to justice those who threaten U.S. military technology.”
U.S. Navy Central Command (NAVCENT) seized the weapons from two flagless vessels in the Arabian Sea on Nov. 25, 2019 and Feb. 9, 2020, respectively. The weapons included 171 guided anti-tank missiles, eight surface-to-air missiles, land attack cruise missile components, anti-ship cruise missile components, thermal weapons optics, and other components for missiles and unmanned aerial vehicles.
On Aug. 20, 2020, the Justice Department filed a complaint seeking to forfeit the seized weapons in U.S. District Court for the District of Columbia. The forfeiture action is part of a larger investigation of an Iranian weapons smuggling network responsible for the arms shipments. The network was involved in the illicit trafficking of advanced conventional weapons systems and components, including systems that contain U.S.-origin components, by sanctioned Iranian entities that directly support military action by the Houthis movement in Yemen and the Iranian regime’s campaign of terrorist activities throughout the region.
On Feb. 9, 2020, U.S. authorities seized three type “358” surface-to-air missiles (above) and 150 “Dhelaveih” anti-tank guided missiles (below).
On July 2, 2020, the United States also filed a complaint in U.S. District Court for the District of Columbia seeking to forfeit all petroleum-product cargo aboard four foreign-flagged oil tankers. The petroleum originated in Iran, and the sale of that petroleum benefitted the IRGC, a sanctioned Iranian entity. In August 2020, the district court issued a warrant for arrest in rem and the United States subsequently transferred approximately 1.1 million barrels of refined petroleum from the four vessels. The United States has now sold and delivered that petroleum.
The two forfeiture complaints allege sophisticated schemes by the IRGC to clandestinely ship weapons and fuel to sanctioned entities that pose grave threats to U.S. national security. Forfeiture complaints are merely allegations. The burden to prove forfeitability in both civil forfeiture proceedings is upon the government.
Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/) after the conclusion of the case.
These seizures and forfeiture actions are a product of the U.S. government’s coordinated efforts to enforce U.S. sanctions against the IRGC and the Iranian regime. HSI’s Washington Field Office and DCIS’s Mid-Atlantic Field Office are leading the investigation of the Iranian weapons smuggling network, with substantial assistance from NAVCENT in conducting the seizures. The weapons case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia. Assistant U.S. Attorneys Michael P. Grady and Stuart D. Allen are handing the case on behalf of the U.S. Attorney’s Office, with support from Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick.
HSI Denver and FBI’s Minneapolis Field Office are investigating the shipments of Iranian petroleum, again with substantial assistance from NAVCENT during the seizure. The petroleum case is being prosecuted by the National Security Division and the U.S. Attorney’s Office for the District of Columbia. Assistant U.S. Attorneys Brian P. Hudak, Michael P. Grady, and Stuart D. Allen and National Security Division Trial Attorney David Lim are litigating the case, with support from Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick. The Money Laundering and Asset Recovery Section of the Criminal Division of the U.S. Department of Justice provided extensive assistance in the forfeiture and sale of the seized petroleum.
United States Files Complaint to Forfeit Iranian Missiles and Sells Previously-Transferred Iranian PetroleumRead the Press Release
The Justice Department today announced the filing of a complaint to forfeit two shipments of Iranian missiles that the U.S. Navy seized in transit from Iran’s Islamic Revolutionary Guard Corps (IRGC) to militant groups in Yemen, as well as the sale of approximately 1.1 million barrels of Iranian petroleum that the United States previously obtained from four foreign-flagged oil tankers bound for Venezuela.
These actions represent the government’s largest-ever forfeitures actions for fuel and weapons shipments from Iran.
“The two forfeiture complaints allege sophisticated schemes by the IRGC to secretly ship weapons to Yemen and fuel to Venezuela, countries that pose grave threats to the security and stability of their respective regions,” said John Demers, Assistant Attorney General for National Security. “Iran continues to be a leading state sponsor of terrorism and a worldwide destabilizing force. It is with great satisfaction that I can announce that our intentions are to take the funds successfully forfeited from the fuel sales and provide them to the United States Victims of State Sponsored Terrorism Fund after the conclusion of the case.”
“These actions demonstrate our commitment to working with all of our law enforcement partners to stem the flow of illicit weapons, oil, and money from Iran’s Islamic Revolutionary Guard Corps and other organizations that would do harm to the United States,” said U.S. Attorney Michael Sherwin for the District of Columbia. “The U.S. Attorney’s Office for the District of Columbia will use all available tools, including our jurisdiction to seize and forfeit assets located abroad, to counter terrorist funding and weapons proliferation.”
“This case exemplifies the remarkable collaboration across government toward our shared goal of protecting the homeland from regimes that threaten our national security. This investigation sends a message that the attempted circumvention of U.S. sanctions and the avoidance of export conventions will not be tolerated,” said Derek Benner, Executive Associate Director for Homeland Security Investigations (HSI). “HSI will continue to use the full scope of its authorities and stand besides its partners in the U.S. and around the world keep weapons and assets out of the hands of adversarial regimes.”
“The FBI places a high priority on national security investigations targeting state sponsored foreign terrorist organizations like the IRGC,” said FBI Minneapolis Special Agent in Charge Michael Paul. “We recognize and appreciate the hard work and dedication of the agents and prosecutors who secured forfeiture of the petroleum and prevented its proceeds from funding Iran’s campaign of violence and unrest throughout the Middle East.”
“The illegal exportation of sensitive technology to prohibited countries poses a significant threat to our national security,” said Dermot F. O'Reilly, Director, Defense Criminal Investigative Service (DCIS). “The complaint announced today is the direct result of joint investigative and analytical efforts with close partners in law enforcement and the Department of Defense. DCIS will continue to identify, disrupt, and bring to justice those who threaten U.S. military technology.”
U.S. Navy Central Command (NAVCENT) seized the weapons from two flagless vessels in the Arabian Sea on Nov. 25, 2019 and Feb. 9, 2020, respectively. The weapons included 171 guided anti-tank missiles, eight surface-to-air missiles, land attack cruise missile components, anti-ship cruise missile components, thermal weapons optics, and other components for missiles and unmanned aerial vehicles.
On Aug. 20, 2020, the Justice Department filed a complaint seeking to forfeit the seized weapons in U.S. District Court for the District of Columbia. The forfeiture action is part of a larger investigation of an Iranian weapons smuggling network responsible for the arms shipments. The network was involved in the illicit trafficking of advanced conventional weapons systems and components, including systems that contain U.S.-origin components, by sanctioned Iranian entities that directly support military action by the Houthis movement in Yemen and the Iranian regime’s campaign of terrorist activities throughout the region.
On Feb. 9, 2020, U.S. authorities seized three type “358” surface-to-air missiles (above) and 150 “Dhelaveih” anti-tank guided missiles (below).
On July 2, 2020, the United States also filed a complaint in U.S. District Court for the District of Columbia seeking to forfeit all petroleum-product cargo aboard four foreign-flagged oil tankers. The petroleum originated in Iran, and the sale of that petroleum benefitted the IRGC, a sanctioned Iranian entity. In August 2020, the district court issued a warrant for arrest in rem and the United States subsequently transferred approximately 1.1 million barrels of refined petroleum from the four vessels. The United States has now sold and delivered that petroleum.
The two forfeiture complaints allege sophisticated schemes by the IRGC to clandestinely ship weapons and fuel to sanctioned entities that pose grave threats to U.S. national security. Forfeiture complaints are merely allegations. The burden to prove forfeitability in both civil forfeiture proceedings is upon the government.
Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/) after the conclusion of the case.
These seizures and forfeiture actions are a product of the U.S. government’s coordinated efforts to enforce U.S. sanctions against the IRGC and the Iranian regime. HSI’s Washington Field Office and DCIS’s Mid-Atlantic Field Office are leading the investigation of the Iranian weapons smuggling network, with substantial assistance from NAVCENT in conducting the seizures. The weapons case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia. Assistant U.S. Attorneys Michael P. Grady and Stuart D. Allen are handing the case on behalf of the U.S. Attorney’s Office, with support from Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick.
HSI Denver and FBI’s Minneapolis Field Office are investigating the shipments of Iranian petroleum, again with substantial assistance from NAVCENT during the seizure. The petroleum case is being prosecuted by the National Security Division and the U.S. Attorney’s Office for the District of Columbia. Assistant U.S. Attorneys Brian P. Hudak, Michael P. Grady, and Stuart D. Allen and National Security Division Trial Attorney David Lim are litigating the case, with support from Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick. The Money Laundering and Asset Recovery Section of the Criminal Division of the U.S. Department of Justice provided extensive assistance in the forfeiture and sale of the seized petroleum.
Press Release by United States Attorney Relating to November 2020 General ElectionRead the Press Release
WASHINGTON - Acting United States Attorney Michael R. Sherwin announced today that Assistant United States Attorney (AUSA) Liz Aloi will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election. AUSA Aloi has been appointed to serve as the District Election Officer (DEO) for the District of Columbia, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
Acting United States Attorney Sherwin said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, Acting United States Attorney Sherwin stated that AUSA/DEO Aloi will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (202) 252-7212.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI Washington Field Office can be reached by the public at (202) 278-2000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Department of Justice Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Acting United States Attorney Sherwin said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
Guild Mortgage Company to Pay Almost $25 Million to Resolve Allegations It Knowingly Caused False Claims to Federal Housing AdministrationRead the Press Release
WASHINGTON – Guild Mortgage Company has agreed to pay the United States $24.9 million to resolve allegations that it violated the False Claims Act and the common law by knowingly breaching material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA), the Department of Justice announced today. Guild Mortgage Company is headquartered in San Diego, California, with branches across the United States.
“Ensuring the integrity of federal lending programs is important to keeping those programs financially sound,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “Together, with our partners at HUD, we have worked hard to hold accountable FHA lenders that knowingly and materially violate program requirements that help Americans achieve the dream of home ownership.”
“The United States is committed to providing Americans opportunities to own their own homes,” said Acting U.S. Attorney for the District of Columbia Michael R. Sherwin. “This settlement reflects the diligent work of officials from the Department of Justice and HUD to ensure that the programs that provide those opportunities are operated with integrity and in accordance with requirements established by law.”
“As this settlement demonstrates, we are committed to holding mortgage lenders accountable when they choose to abuse the integrity of vital government programs that are designed to assist homeownership,” said U.S. Attorney Robert Brewer for the Southern District of California. “We also commend the whistleblower for coming forward, exposing these wrongs, and working with the government investigative team.”
“The Federal Housing Administration insurance program is a critical tool that helps hardworking Americans achieve their dream of homeownership. Any abuse of that program is unacceptable and the bad actors will be held accountable,” said Rae Oliver Davis, U.S. Department of Housing and Urban Development, Inspector General. “This case highlights the effectiveness and the importance of whistleblower programs.”
Participants in the FHA mortgage insurance program, like Guild Mortgage Company, can originate and underwrite mortgages without first having the government review the loans for compliance with the agency’s underwriting and origination requirements. If an FHA-insured loan defaults, the holder of the loan can then recover from the United States for certain losses. Lenders must follow FHA rules designed to ensure that only mortgages that meet key credit and underwriting criteria are insured by the government.
The settlement announced today resolves allegations that Guild Mortgage Company knowingly approved ineligible loans that later defaulted and resulted in claims to FHA for mortgage insurance, failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, and failed to self-report materially deficient loans that it identified.
The agreement resolves allegations brought by the former head of quality control at Guild Mortgage Company, Kevin Dougherty, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The Act permits the United States to intervene in such a lawsuit, as it did in part here. Dougherty will receive $4,980,000 as his share of the government’s recovery.
The investigation, litigation, and settlement were the result of a coordinated effort among the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Offices for the District of Columbia and the Southern District of California, HUD, and HUD-OIG.
The qui tam case is captioned United States ex rel. Dougherty v. Guild Mortgage Company, Civ. A. No. 16-2909 (S.D. Cal.).
The claims asserted against the defendant are allegations only, and there has been no determination of liability.
Special Counsel to the U.S. Attorney for the District of Columbia Elana Suttenberg Delivers Testimony before the D.C. Council regarding Policing Reform and Proposed Amendment of Rioting StatuteRead the Press Release
Chairman Allen and Members of the Council:
My name is Elana Suttenberg, and I am the Special Counsel for Legislative Affairs at the United States Attorney’s Office for the District of Columbia. I thank you for the opportunity to appear today to share the Office’s views regarding the proposed legislation.
As members of this community, we remain deeply disturbed by the death of George Floyd, and the circumstances surrounding his death. We support the fair and equitable treatment of individuals, regardless of race. In this time, we recommit ourselves to our duty as prosecutors—that is, to uphold the Constitution and the laws of the District of Columbia, and to serve justice for all. We support many of the goals of these bills, which include ensuring accountability for police misconduct, and we commend the Council for its role in furthering this goal.
Bill 23-0882, the “Comprehensive Policing and Justice Reform Amendment Act of 2020”
As to Bill 23-0882, the “Comprehensive Policing and Justice Reform Amendment Act of 2020,” we have several concerns regarding proposals in this bill relating to body-worn camera (BWC) footage. First, the bill proposes prohibiting MPD members from reviewing their BWC recording or BWC recordings that have been shared with them to assist in initial report writing. It bears emphasizing that, before this same change was implemented by the Council’s emergency legislation, MPD members were generally permitted to review their BWC recording or BWC recordings that had been shared with them to assist in initial report writing, but were precluded from reviewing their own BWC recording before writing an initial report where a police shooting was involved. As detailed in our June 8, 2020 letter to the Council regarding the emergency legislation, we support expanding that exception (that is, the preclusion of review) to encompass cases involving officer conduct that results in serious bodily injury or death, even where there is no firearm involved.
Our concerns, therefore, only apply to cases that do not involve a police shooting, or officer-involved death or serious bodily injury. These include homicides, sexual abuse, domestic violence, robberies, burglaries, assaults, and other violent crimes committed by civilians against other civilians.
Our primary objective is to ensure the accuracy of the initial police report. Particularly in less serious cases, where a detective may not be assigned, the initial police report is a crucial way to inform prosecutors, the defense, and judges about the facts of the case. Officer accuracy in report writing is paramount, and we are concerned about any change in law that could infringe on accuracy. Frequently, the language in the initial police report is the same language used in a Gerstein affidavit filed in court or in an arrest or search warrant, upon which judges rely when making decisions that affect a person’s liberty and privacy.[1]
Further, BWC footage may contain exculpatory material that is favorable to a defendant. This could include exculpatory statements made by civilian witnesses, exculpatory evidence captured on video, exculpatory suspects that could exonerate the accused, and misidentification of an arrestee. The law should encourage police to discover and capture exculpatory material at the earliest opportunity, and should not prohibit police from reviewing BWC footage where exculpatory material may exist.
Moreover, if officers are not permitted—outside of the context of officer conduct that results in serious bodily injury or death—to review BWC footage before writing a report, officers may be incentivized to write very brief initial reports that do not contain meaningful details, to the detriment of prosecutors seeking to make just charging decisions, defense counsel arguing probable cause and release conditions, and judges making probable cause and hold determinations.
Finally, the Police Executive Research Forum (PERF) clarified in a letter to this Committee that it continues to recommend that officers be allowed to view BWC recordings before writing an initial police report. We agree with PERF on this issue, and appreciate PERF resolving any ambiguity as to their current position.
Second, the bill proposes requiring the Mayor, within 5 business days after an officer- involved death or the serious use of force, to publicly release the names and BWC recordings of all officers who committed the officer-involved death or serious use of force, with certain exceptions. The Mayor would retain discretion to release other BWC recordings in matters of significant public interest.
We are concerned that this modification would, in fact, make it more difficult to investigate a serious officer-involved death or serious use of force. Such a result, of course, would be contrary to our shared goal of ensuring officer accountability for misconduct. Once the BWC footage is public, both the officer involved and any civilians involved would be able to watch it. The early publication of BWC could, in certain situations, create a narrative that makes it difficult to conduct an investigation, as it may lead witnesses to a conclusion that affects their testimony, or otherwise influence witness testimony. In our June 8, 2020 letter to the Council, we expressed concern about the initial proposal that BWC footage must be released 72 hours following an incident. This proposal has now been modified to mandate release after 5 business days, rather than 72 hours. Although 5 business days could allow for more investigation than 72 hours, it would still be very difficult for our office to conduct a full investigation within 5 business days, as a full investigation could include all relevant parties, including involved civilians, testifying before the grand jury.
Because there are situations where it could be appropriate for the Mayor, in consultation with the relevant agencies, to release BWC footage, the Mayor should have discretion to release BWC footage at an appropriate time, balancing the needs of the community to see the footage with the needs of prosecutors to accurately investigate what happened, and the security and privacy rights of civilian witnesses who may be depicted in the footage.
Bill 23-0723, the “Rioting Modernization Amendment Act of 2020”
As to Bill 23-0723, the “Rioting Modernization Amendment Act of 2020,” we agree in principle with what we understand the Judiciary Committee Chairman’s goal to be in proposing an amendment to the rioting statute: to clarify the current statute so that it is clear to all and to ensure that it provides for public safety by appropriately capturing rioting versus otherwise protected conduct. We have several concerns, however, with this amended offense as drafted.
Under current law, a “riot” is “a public disturbance involving an assemblage of 5 or more persons which by tumultuous and violent conduct or the threat thereof creates grave danger or injury to property or persons.” D.C. Code § 22-1322(a). A person can be liable for the offense of rioting either for “willfully engag[ing] in a riot” or for “willfully incit[ing] or urg[ing] other persons to engage in a riot.” D.C. Code §§ 22-1322(b) and (c).
Further, under current law, a riot is a group activity, and the presence of a “riot” must first be established. The subsequent question of whether a particular person is “engaging” in a riot is an individualized determination. Courts have upheld a wide range of behavior as “engaging” in a riot. In Matthews v. United States, 419 F.2d 1177 (D.C. Cir. 1969), the Court of Appeals for the D.C. Circuit held that a defendant who took liquor from a liquor store during a riot was deemed to have engaged in the riot. In Carr v. District of Columbia, 587 F.3d 401, 406 (D.C. Cir. 2009), the D.C. Circuit stated that “if members of the crowd were cheering acts of violence committed by other marchers, they would be engaging in criminal conduct” under the rioting statute.
The proposed bill would modify the rioting statute to create liability for rioting where 10 or more people are each committing or attempting to commit a specified criminal offense in the area perceptible to one another. By changing the law in this manner, it would be more difficult to establish both that a riot exists and that an individual is engaging in a riot—even under circumstances where most members of our community would agree that the conduct at issue constituted rioting.
This is the case because the bill would change the offense of rioting by making rioting liability contingent upon each individual’s criminal or attempted criminal conduct, rather than contingent upon each individual’s willful participation in the group activity. In other words, to prove rioting under this bill, we would first have to prove that the defendant engaged in the underlying criminal conduct (for example, an assault, destruction of property, etc.), and then also prove that nine (9) other individuals engaged in underlying criminal conduct in the area perceptible to one another. Because this rioting bill provides the same maximum penalty as the penalty for much of the underlying criminal conduct on which the amended offense would rely, and creates additional elements to prove, there would be little incentive for prosecutors to charge a defendant with the offense of rioting. Rather, where appropriate, prosecutors likely would charge the defendant only with the underlying criminal conduct, such as assault or destruction of property.
Further, this proposal would remove liability for inciting or urging others to engage in a riot. This means that a person who organizes and coordinates a violent riot, but does not physically participate in it, would have no liability under this provision. Although other theories of accomplice liability could potentially apply, we believe that specific provisions for inciting a riot are warranted. Dispensing with specifically enumerated criminal liability for inciting others to riot will create gaps in the ability of law enforcement to address situations where a person or persons are actively encouraging others toward criminal behavior, and may reduce law enforcement’s ability to thwart such rioting behavior before it even begins.
Moreover, this proposal limits rioting to a misdemeanor offense, and eliminates a felony gradation of rioting. Under current law, felony liability attaches where, “in the course and as a result of a riot[,] a person suffers serious bodily harm or there is property damage in excess of $5,000.” D.C. Code § 22-1322(d). We recommend that the rioting statute maintain felony liability based on the level of bodily harm or the amount of property damage incurred.
Finally, the bill appears to use some language from the draft recommendations of the Criminal Code Reform Commission (CCRC). Without the context of the CCRC’s full recommendations, however, this language creates gaps in liability. For example, the bill references “a criminal offense that causes or would cause . . . [b]odily injury.” Under the CCRC’s recommendations, the corollary offense to simple assault would require “bodily injury.” Under current law, by contrast, simple assault does not require bodily injury as an element of the offense, see D.C. Code § 22-404(a)(1), although felony versions of assault do require various levels of bodily injury, see D.C. Code § 22-404(a)(2) (assault with significant bodily injury); D.C. Code § 22-404.10 (aggravated assault, which requires serious bodily injury). Because simple assault under current law does not require “bodily injury” as an element of the offense, simple assault would not constitute “a criminal offense that causes or would cause . . . bodily injury” under this bill. Thus, under this bill as drafted, a defendant who commits simple assault would not be liable for rioting—a result that we do not believe would be intended by the drafters.
* * *
The U.S. Attorney’s Office for the District of Columbia looks forward to continuing to work with the Council, the community, and other stakeholders to ensure that our laws are just and equitable.
[1] A Gerstein affidavit, which is sworn to by a law enforcement officer, is a document filed in court setting forth the facts of a cases that provides a basis for the judicial finding of probable cause. A judicial finding of probable cause is required for pretrial detention.
Singaporean National Sentenced to 14 Months in Prison for Acting in the United States as an Illegal Agent of Chinese IntelligenceRead the Press Release
Jun Wei Yeo, also known as Dickson Yeo, was sentenced today in federal court to 14 months in prison. Yeo pled guilty on July 24, 2020 to acting within the United States as an illegal agent of a foreign power without first notifying the Attorney General, in violation of 18 U.S.C. § 951. The announcement was made by John G. Demers, Assistant Attorney General; Michael R. Sherwin, Acting United States Attorney for the District of Columbia; James A. Dawson, Acting Assistant Director in Charge of FBI Washington Field Office; Alan E. Kohler, Jr., Assistant Director of the FBI's Counterintelligence Division; and Deputy Assistant Secretary Ricardo Colón, Domestic Operations.
Yeo was sentenced by The Honorable Tanya S. Chutkan of the United States District Court for the District of Columbia.
“At the direction of the Government of the People’s Republic of China, Yeo recruited Americans to provide information that he would pass back to his PRC handlers,” said Assistant Attorney General for National Security John C. Demers. “Yeo concealed his PRC affiliation from his recruits and, contrary to law, from the United States Government. This criminal conduct is part of the PRC’s efforts to exploit the openness of American society by using agents who may appear innocuous, but who act upon taskings from a foreign government to obtain access and information.”
“This case serves as a reminder that China is using professional networking social media sites to target U.S. citizens with government security clearances, and to try to gain non-public and classified information. The threat is real, and we will prosecute foreign agents who exploit those platforms,” said Michael R. Sherwin, Acting United States Attorney for the District of Columbia.
“Today we are reminded yet again of the Chinese government's aggressive attempts to gain knowledge and information about U.S. policy and government," said James A. Dawson, Acting Assistant Director in Charge of the FBI's Washington Field Office. "The FBI’s warning is not new, but the message warrants repeating: the Chinese communist government is working to gain information and access by all means, including recruiting US-based individuals to provide classified and/or sensitive information. There is no doubt that if you are a former clearance holder, you are an ideal and vulnerable target because of your knowledge and access. If you believe you have been the target of a recruitment scheme, the FBI is here to help. We remain committed to rebuffing the Chinese government’s attempts, and to protecting the American people, our ideas, and our national and economic security interests.”
"Jun Wei Yeo admittedly acted as an illegal agent of a foreign power by using various social media sites, such as a professional networking website and other social networking applications, to recruit Americans with access to sensitive government information. He identified their vulnerabilities, like dissatisfaction with work or financial difficulties, and offered money in exchange for information and written reports,” said Alan E. Kohler Jr., Assistant Director of the FBI’s Counterintelligence Division. "This is a sobering reminder that the U.S. needs to be clear-eyed about the scope of the Chinese government’s ambition to manipulate Americans for their own nation’s advancement; and, confronting this threat remains the FBI’s top counterintelligence priority."
“The close working relationship between the U.S. Department of State’s Diplomatic Security Service, the FBI, and the U.S. Attorney’s Office resulted in today's sentencing of Mr.Yeo before he could potentially harm the security of our country,” said Deputy Assistant Secretary Ricardo Colón, Domestic Operations, U.S. Department of State’s Diplomatic Security Service. “This was a great success by all of the agencies involved.”
As outlined in the Statement of Offense, Yeo began working with Chinese intelligence officers as early as 2015, initially targeting other Asian countries, but then focusing on the United States. In response to taskings from his Chinese intelligence contacts, Yeo worked to spot and assess Americans with access to valuable non-public information, including U.S. military and government employees with high-level security clearances. After Yeo identified American targets, he solicited them for non-public information and paid them to write reports. Yeo told these American targets that the reports were for clients in Asia, without revealing that they were in fact destined for the Chinese government.
Yeo made use of various social media sites to carry out the taskings given to him by Chinese intelligence operatives. In 2018, Yeo created a fake consulting company that used the same name as a prominent U.S. consulting firm that conducts public and government relations, and Yeo posted job advertisements under that company name. Ninety percent of the resumes Yeo received in response were from U.S. military and government personnel with security clearances, and he passed resumes of interest to one of the Chinese intelligence operatives.
Yeo also used a professional networking website that is focused on career and employment information to carry out the taskings he received from Chinese intelligence officials. Yeo used the professional networking website to find individuals with resumes and job descriptions suggesting that they would have access to valuable information. After he identified individuals worth targeting, Yeo followed guidance he received from Chinese intelligence operatives regarding how to recruit potential targets, including identifying their vulnerabilities, such as dissatisfaction with work or financial difficulties.
The investigation into this matter was conducted by the Federal Bureau of Investigation’s Washington Field Office and the U.S. Department of State’s Diplomatic Security Service. The case is being prosecuted by Assistant U.S. Attorneys Thomas N. Saunders and Erik M. Kenerson of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, along with David Aaron of the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice. If you suspect you have been the target of a recruitment scheme, contact your local FBI Field Office.
Singaporean National Sentenced to 14 Months in Prison for Acting in the United States as an Illegal Agent of Chinese IntelligenceRead the Press Release
WASHINGTON – Jun Wei Yeo, also known as Dickson Yeo, was sentenced today in federal court to 14 months in prison. Yeo pled guilty on July 24, 2020 to acting within the United States as an illegal agent of a foreign power without first notifying the Attorney General, in violation of 18 U.S.C. § 951. The announcement was made by John G. Demers, Assistant Attorney General; Michael R. Sherwin, Acting United States Attorney for the District of Columbia; James A. Dawson, Acting Assistant Director in Charge of FBI Washington Field Office; Alan E. Kohler, Jr., Assistant Director of the FBI's Counterintelligence Division; and Deputy Assistant Secretary Ricardo Colón, Domestic Operations Deputy Assistant Secretary Ricardo Colón, Domestic Operations.
Yeo was sentenced by The Honorable Tanya S. Chutkan of the United States District Court for the District of Columbia.
“At the direction of the Government of the People’s Republic of China, Yeo recruited Americans to provide information that he would pass back to his PRC handlers,” said Assistant Attorney General for National Security John C. Demers. “Yeo concealed his PRC affiliation from his recruits and, contrary to law, from the United States Government. This criminal conduct is part of the PRC’s efforts to exploit the openness of American society by using agents who may appear innocuous, but who act upon taskings from a foreign government to obtain access and information.”
“This case serves as a reminder that China is using professional networking social media sites to target U.S. citizens with government security clearances, and to try to gain non-public and classified information. The threat is real, and we will prosecute foreign agents who exploit those platforms,” said Michael R. Sherwin, Acting United States Attorney for the District of Columbia.
“Today we are reminded yet again of the Chinese government's aggressive attempts to gain knowledge and information about U.S. policy and government," said James A. Dawson, Acting Assistant Director in Charge of the FBI's Washington Field Office. "The FBI’s warning is not new, but the message warrants repeating: the Chinese communist government is working to gain information and access by all means, including recruiting US-based individuals to provide classified and/or sensitive information. There is no doubt that if you are a former clearance holder, you are an ideal and vulnerable target because of your knowledge and access. If you believe you have been the target of a recruitment scheme, the FBI is here to help. We remain committed to rebuffing the Chinese government’s attempts, and to protecting the American people, our ideas, and our national and economic security interests.”
"Jun Wei Yeo admittedly acted as an illegal agent of a foreign power by using various social media sites, such as a professional networking website and other social networking applications, to recruit Americans with access to sensitive government information. He identified their vulnerabilities, like dissatisfaction with work or financial difficulties, and offered money in exchange for information and written reports,” said Alan E. Kohler Jr., Assistant Director of the FBI’s Counterintelligence Division. "This is a sobering reminder that the U.S. needs to be clear-eyed about the scope of the Chinese government’s ambition to manipulate Americans for their own nation’s advancement; and, confronting this threat remains the FBI’s top counterintelligence priority."
“The close working relationship between the U.S. Department of State’s Diplomatic Security Service, the FBI, and the U.S. Attorney’s Office resulted in today's sentencing of Mr. Yeo before he could potentially harm the security of our country,” said Deputy Assistant Secretary Ricardo Colón, Domestic Operations, U.S. Department of State’s Diplomatic Security Service. “This was a great success by all of the agencies involved.”
As outlined in the Statement of Offense, Yeo began working with Chinese intelligence officers as early as 2015, initially targeting other Asian countries, but then focusing on the United States. In response to taskings from his Chinese intelligence contacts, Yeo worked to spot and assess Americans with access to valuable non-public information, including U.S. military and government employees with high-level security clearances. After Yeo identified American targets, he solicited them for non-public information and paid them to write reports. Yeo told these American targets that the reports were for clients in Asia, without revealing that they were in fact destined for the Chinese government.
Yeo made use of various social media sites to carry out the taskings given to him by Chinese intelligence operatives. In 2018, Yeo created a fake consulting company that used the same name as a prominent U.S. consulting firm that conducts public and government relations, and Yeo posted job advertisements under that company name. Ninety percent of the resumes Yeo received in response were from U.S. military and government personnel with security clearances, and he passed resumes of interest to one of the Chinese intelligence operatives.
Yeo also used a professional networking website that is focused on career and employment information to carry out the taskings he received from Chinese intelligence officials. Yeo used the professional networking website to find individuals with resumes and job descriptions suggesting that they would have access to valuable information. After he identified individuals worth targeting, Yeo followed guidance he received from Chinese intelligence operatives regarding how to recruit potential targets, including identifying their vulnerabilities, such as dissatisfaction with work or financial difficulties.
The investigation into this matter was conducted by the Federal Bureau of Investigation’s Washington Field Office and the U.S. Department of State’s Diplomatic Security Service. The case is being prosecuted by Assistant U.S. Attorneys Thomas N. Saunders and Erik M. Kenerson of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, along with David Aaron of the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice. If you suspect you have been the target of a recruitment scheme, contact your local FBI Field Office.
Owner of Food Service Firm Operating in Government Buildings Throughout the D.C. Area Sentenced to Prison for Payroll Tax FraudRead the Press Release
A Potomac, Maryland, owner of companies providing food services in government buildings was sentenced to 21 months imprisonment for not paying more than $10 million in employment and sales tax, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting U.S. Attorney Michael R. Sherwin for the District of Columbia.
According to documents and information provided to the court, Steve Choi was the founder, president, and operator of nine companies that provided food services within government buildings located in the D.C. area, including the Department of Justice, the Department of Agriculture, the Department of Energy, the Department of Commerce, NASA, and the Library of Congress, among other locations.
As president and operator of the companies, Choi was responsible for collecting and paying employment taxes to the IRS. Notwithstanding these obligations, and civil collection efforts from the IRS, from 2012 through 2015, Choi collected tax withholdings from his employees’ wages, but did not pay over $4.4 million in employment taxes. During the same period, Choi also did not pay more than $6.2 million in sales taxes to the D.C. Office of Tax and Revenue. Rather than pay the sales and employment taxes, from 2011 through 2015, Choi directed his companies to pay millions of dollars in other expenditures, including over $1 million in personal salary, personal donations, and cash advances.
On Feb. 7, 2020, Choi pleaded guilty to employment tax fraud.
“As an employer, Choi had a legal obligation to pay over the money withheld for taxes on behalf of his employees,” said IRS-Criminal Investigation (CI) Special Agent in Charge Kelly R. Jackson. “CI will continue to investigate those who choose to utilize their companies’ payroll tax withholdings for their personal benefit.”
In addition to the term of imprisonment, U.S. District Judge Ketanji Brown Jackson ordered Choi to serve three years of supervised release and to pay approximately $6,390,182 in restitution to the Office of Tax and Revenue and $4,737,809 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman, Acting U.S. Attorney Sherwin, and IRS-CI Special Agent in Charge Kelly R. Jackson thanked special agents of IRS-CI and Office of Tax and Revenue who investigated the case, and Trial Attorneys Jack Morgan and Eric Schmale of the Tax Division, as well as Assistant U.S. Attorney Veronica Sanchez, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Maryland MS-13 Leader Charged with Illegal Firearms Trafficking in Washington, D.C.Read the Press Release
WASHINGTON – Wilber Vigil-Benitez, also known as “Solitario,” of El Salvador, was arrested today on an outstanding arrest warrant from the United States District Court for the District of Columbia, announced Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia; John J. Durham, Director, Joint Task Force Vulcan (JTFV); Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
On August 25, 2020, Vigil-Benitez, 25, of Oxon Hill, Maryland, was charged in the United States District Court for the District of Columbia, in case number 20-cr-170, in a nine-count indictment with conspiring to engage in the illegal trafficking of firearms, engaging in the business of dealing in firearms without a license, and seven counts of possession of a firearm by a person previously convicted of a crime punishable by more than one year. If convicted of all counts, Vigil-Benitez could face up to 85 years in prison.
According to the indictment and additional court documents filed by the Government, Vigil-Benitez, who also goes by the gang name “Solitario,” is a leader of the Delicias Locos Salvatruchas Clique de La Mara Salvatrucha, commonly referred to as MS-13, a transnational criminal organization. From approximately September 2017 through July 2018, Vigil-Benitez led a firearms trafficking conspiracy where, according to the indictment, he obtained firearms from an MS-13 associate and then illegally sold them on the streets of Washington, D.C., for profit. Vigil-Benitez was prohibited from possessing firearms due to his prior Maryland felony conviction, a firearms offense. Vigil-Benitez traveled from Maryland into the District of Columbia to sell firearms illegally on at least eight occasions. In total, Vigil-Benitez sold at least ten firearms, including an assault rifle.
On October 9, 2020, the Honorable Magistrate Judge G. Michael Harvey held Vigil-Benitez without bond pending a detention hearing on October 14, 2020. An indictment is a formal accusation of criminal conduct, for the purpose of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
“Today’s arrest of a member of a transnational criminal organization represents the successful coordination of multiple federal and local law enforcement partners.” said Acting United States Attorney Michael R. Sherwin. “Our office is committed to disrupting the financial lifeline of criminal organizations such as MS-13 and bringing to justice those individuals who would bring firearms into our jurisdiction and inject fear and violence into our communities.”
“This case is another example of the strong partnership between the FBI and our local, state and federal partners to identify, investigate and ultimately prosecute members and associates of MS-13," said Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. "MS-13, known for their violence, is a transnational gang which primarily preys and takes advantage of fellow immigrants from Central America. The FBI will continue to work collaboratively with our partners to identify, disrupt, and dismantle MS-13 in our communities.”
“In order to effectively combat the MS-13, we must not only prosecute violent crimes committed by the organization, but also must target its sources of revenue, including illegal firearms trafficking,” stated JTFV Director John J. Durham. “Thanks to the dedicated efforts of the FBI and MPD during this investigation, numerous illegal firearms were seized and an MS-13 leader will face justice.”
This investigation was carried out in partnership with JTFV. In August 2019, Attorney General Barr created JTFV to carry out the recommendations of the MS-13 subcommittee formed under the Attorney General’s Transnational Organized Crime Task Force, which was the result of President Trump’s February 2017 Executive Order directing the Departments of Justice, State, and Homeland Security, and the Office of the Director of National Intelligence to coordinate a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13, and restore safety for the American people. The principal purpose of JTFV is to coordinate and lead the efforts of the Justice Department and U.S. law enforcement agencies against MS-13 in order to dismantle the group.
This case was investigated by the FBI’s Cross Border Task Force, which is composed of FBI agents from both the Washington Field Office and the Baltimore Field Office, with task force officers from the U.S. Park Police, Prince George’s County Police, Montgomery County Police, and MPD. The task force works in partnership with the ATF, DEA, USMS, the Department of Homeland Security, Enforcement Removal Operations, and other local, state and federal agencies. The task force is charged with investigating the most egregious violent gangs and street crews operating between the District of Columbia and Prince George’s and Montgomery Counties, Maryland. Significant investigative assistance was provided in this case by the MPD’s, Narcotics and Special Investigative Division (NSID).
This case is being investigated by the FBI and MPD with the assistance of the U.S. Department of Homeland Security, Immigration and Customs Enforcement’s Homeland Security Investigations and Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney Kevin L. Rosenberg of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia, and Assistant U.S. Attorney Nicholas J. Patterson detailed to JTFV.
District Woman Sentenced to Prison Tern for Financial Exploitation of a Vulnerable Adult and TheftRead the Press Release
WASHINGTON – Jasmine Renee Worthy, 54, of Washington, D.C. was sentenced on September 25, 2020 by the Honorable Judge Robert A. Salerno of the Superior Court for the District of Columbia to 60 days incarceration to be followed by five years of supervised release, announced Acting U.S. Attorney Michael R. Sherwin, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Karl Racine, Attorney General for the District of Columbia. Worthy pled guilty in December 2019 to one count of Financial Exploitation of a Vulnerable Adult or Elderly Person and five counts of Theft related to money that she wrongfully obtained from five additional victims. Worthy was also ordered at sentencing to pay a combined restitution amount of $58,465 to victims of the offense.
According to the factual proffer, over the course of nine months, between 2018 and 2019, Worthy exploited a blind adult woman who had inherited a sum of money from a deceased family member. Specifically, Worthy’s scheme involved holding herself out as someone who specialized in finding homes for people who had been denied housing in the past, were poor or who had poor or no credit. Worthy led the victim to believe that she would use the funds provided by the victim to locate a suitable home for the victim and her two minor children to live. During the course of the scheme, Worthy often went with the victim to the bank to obtain cash from the victim’s account. Worthy exploited the victim, completely depleting the victim’s bank account of approximately $40,200.
From March to April 2019, Worthy obtained $2,400 from another victim who had been denied housing and had been referred to Worthy’s company, Second Chance Housing. The victim, who was pregnant at the time, met with Worthy, along with her minor child, in a parking lot in Southeast DC. The victim explained the urgency of her living situation and that she would be homeless if unable to find a place to live. Worthy took the victim’s money and shortly thereafter stopped communications with her. As was revealed at sentencing, following the theft of her money, the victim was forced to move with her minor child to a shelter.
In March 2018, another victim gave Worthy $3,900 for DC housing vouchers and furnishings which Worthy told the victim that she would secure. After numerous attempts by the victim to either get the defendant to provide the services and merchandise or return the money, Worthy ceased communications with the victim. Worthy similarly promised another victim that she would locate a home for the victim. This victim gave Worthy $4,800. Worthy never applied the money to a home or furnishings for the victim and stopped communications after repeated demands by the victim for return of her funds. Another couple in search of an apartment for rent met with Worthy, explained that their credit was bad and gave Worthy $2,665. The couple was never shown any apartments and Worthy cut off communications with them.
The final victim hired Worthy as a property manager for her DC home when the victim had to leave the DC area in order to care for an ill relative who resided out of state. Worthy convinced the victim that she needed to provide $4,500 to Worthy so that Worthy could have an escrow account set up and held by the Department of Consumer & Regulatory Affairs (DCRA). No escrow account was established. Worthy stopped communications with the victim after repeated requests by the victim for return of her funds.
At sentencing, the prosecution team appeared remotely due to the ongoing COVID-19 pandemic alongside victims and their families and argued before the court that notwithstanding the ongoing pandemic, the defendant’s actions, lack of remorse, and the significant harm caused to DC residents in need of housing warranted time in prison.
In announcing the sentence, Acting U.S. Attorney Michael R. Sherwin, and MPD Chief Newsham commended the work of the Metropolitan Police Department Financial and Cyber Crimes Unit, which investigated the case alongside investigators from the Office of the Attorney General. They also cited the efforts of Assistant U.S. Attorney Stephanie G Miller and Special Assistant United States Attorney Jennifer C. Mika, on detail from the Office of the Attorney General to handle financial crimes cases involving elderly victims, who investigated and prosecuted the cases from the U.S. Attorney’s Office for the District of Columbia with support from Paralegal Specialists Sabrina Turner and Chad D. Byron.
This prosecution is part of the Office’s wider efforts to combat crimes against seniors. In 2018, the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia simultaneously launched initiatives to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office and the Office of the Attorney General for the District of Columbia to develop and coordinate further the prosecution of these cases and enhance overall support of older or vulnerable victims in the District of Columbia. The team consists of experienced prosecutors and victim advocates from across these two Offices, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit. This prosecution is indicative of the continued collaboration between the U.S. Attorney’s Office and the Office of the Attorney General to prosecute cases of this kind.
Former Federal Government Contract Officer Sentenced to Prison for Accepting BribesRead the Press Release
WASHINGTON – Ronnie Simpkins, 68, of Lusby, Maryland, a former government contract officer with the General Services Administration (GSA), was sentenced to a 21-month prison term on a federal bribery charge stemming from a scheme in which he accepted bribes from government contractors from August 2011 to August 2017. Simpkins pled guilty to the charge on December 19, 2019.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin, Robert E. Bornstein, acting Special Agent in Charge, FBI Washington Field Office, Criminal Division, and Eric D. Radwick, Acting Special Agent in Charge, General Services Administration, National Capital Region, Office of Investigations.
According to the government’s evidence, from 1989 until May 2019, Simpkins was employed by the General Services Administration (“GSA”) as a Contract Specialist, informally known as a Contracting Officer, in procurement related positions, and between August 2013 and May 2019, he worked as a Contract Specialist assigned to GSA’s headquarters in Washington, D.C. From February 2010 to August 2017, Simpkins was assigned to a sub-division of the Federal Acquisition Service, which oversees the administration of GSA Schedule 70 contracts. “Schedules” are long-term government-wide contracts with commercial companies that provide access to commercial products and services at fair and reasonable prices to the government. “Schedule 70 contracts” provide IT solutions, services, and software to federal, state, and local customer agencies. GSA pre-negotiates the vendors’ pricing, terms, and conditions, to streamline the acquisition process while at the same time providing the best value to the end user agency.
According to court papers, Company A, a Northern Virginia corporation, held a GSA Schedule contract, which it actively advertised to prospective federal agency customers. To maintain its GSA Schedule contract, Company A was required to have annual sales in excess of $25,000—a requirement that could be waived by GSA’s administrative contracting officer. Company A was also required to pay an Industrial Funding Fee (“IFF”) of 0.75% of all its Schedule sales. Dating back to 2006, Company A maintained its GSA Schedule contract despite reporting no sales and not paying any IFFs since 2006. Simpkins oversaw the contract dating back to 2009.
Simpkins admitted that, for approximately six years between 2011 and 2017, he accepted cash, meals, and furniture from two Company A officials to use his position to help Company maintain its GSA Schedule contract. Simpkins admitted to meeting the Company A officials over a dozen times at various restaurants in Northern Virginia, the Company A officials’ residences, and other places, often outside of normal GSA business hours and on weekends. At these meetings, the Company A officials treated Simpkins to meals and gave him cash totaling “thousands of dollars into the teens.” In July 2016, Simpkins accepted more than $2,000 worth of furniture paid for by the officials. Simpkins admitted to taking more than $12,000 in cash and furniture from the Company A officials.
Simpkins admitted to using his GSA position to help Company A in exchange for these payments. Specifically, Simpkins recommended and signed Company A’s contracts with GSA, even though Company A failed to meet program requirements; deliberately neglected to notify GSA, as he was obligated to do, when Company A’s contract under his supervision no longer met program requirements; and advised Company A about ways to avoid contract cancellation despite failing to meet GSA’s program requirements.
United States District Judge Trevor N. McFadden, who presided over the case, sentenced Simpkins to 21 months in prison, followed by one year of supervised release. The Court also imposed a $10,000 fine and ordered Simpkins to forfeit $12,108.91.
The case was investigated by the FBI’s Washington Field Office Criminal Division and GSA Office of Inspector General and prosecuted by the U.S. Attorney’s Office’s Public Corruption and Civil Rights Section.
D.C. Man Arrested and Charged with Kidnapping a Local Man at GunpointRead the Press Release
WASHINGTON – Kareem Davis, 19, of Washington, D.C. has been arrested and charged via criminal complaint with kidnapping on Tuesday, October 6, 2020.
The charges were announced by Acting U.S. Attorney Michael R. Sherwin, Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
On September 17, 2020, at approximately 12:50 a.m., Davis approached the victim’s vehicle, which was parked in the 3800 block of 9th Street S.E. in Washington, D.C. Davis entered the vehicle, produced a silver handgun and asked the victim for all of his money. After taking the victim’s wallet, which contained over $200, Davis threatened to kill the victim if he could not give over more money. The victim, fearing for his life, offered to drive Davis to an ATM. Over the next hour, Davis forced the victim to drive to eight different ATMs in Maryland to procure approximately $1500 for him. Davis then demanded to be driven back to 9th Street S.E. As the victim neared the location on 9th Street S.E. where Davis had entered his car, he put the car in to cruise control and jumped out of the driver’s side door, successfully escaping from Davis. Davis was ultimately identified via surveillance video at several ATMs and two dashboard cameras within the victim’s vehicle. Davis was arrested in Washington, D.C. on Tuesday without incident.
“Violent crimes, particularly those involving the use of firearms, are one of the highest priorities for the U.S. Attorney’s Office and our law enforcement partners,” said Acting U.S. Attorney Sherwin. “Thorough investigation and coordinated work across departments helped make our community safer today with this arrest.”
"Today’s charges are another example of the collaboration between the FBI, MPD, and our law enforcement partners on the DC Violent Crime Task Force to quickly take violent criminals off the streets of our city,” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “The FBI and our task force partners are committed to bringing justice to those who put our communities’ safety in jeopardy by committing serious crimes like car-jacking and armed robbery.”
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by the FBI Washington Field Office’s Violent Crime Task Force, which comprises FBI Agents and Task Force Officers from MPD, the U.S. Marshals Service, the U.S. Capitol Police, the Court Services and Offender Supervision Agency for the District of Columbia, and the Department of Homeland Security Federal Protective Service.
In announcing the charges, Acting U.S. Attorney Sherwin, acting Special Agent in Charge Bornstein, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Kimberly Paschall of the Federal Major Crimes Section, Paralegal Specialists Rommel Pachoca and Teesha Tobias, Legal Assistant Kate Abrey, and Victim Advocate Yvonne Bryant.
District Woman Sentenced to 30 Months for Defrauding Banks of up to $3.5 Million by Illegally Accessing AccountsRead the Press Release
WASHINGTON – Tricia Steele Boutros, a 41-year-old District of Columbia resident, was sentenced to 30 months’ imprisonment today in federal court in the District of Columbia for spearheading a three-year scheme to defraud financial institutions and account holders of approximately $3.5 million by illegally accessing bank accounts.
Boutros pled guilty to a criminal information charging her with bank fraud on May 1, 2020. According to court papers, Boutros frequently used an encrypted internet network, referred to as the “dark web,” that allowed her to conceal her identity and illicitly obtain login information for bank account holders. Boutros admitted to using the login information to access at least 30 different bank accounts from more than ten different financial institutions. Boutros admitted to transferring money from those accounts to accounts she controlled personally and through entities she established, including a law firm. Boutros also wrote fraudulent checks on some of the accounts she illegally accessed. Court papers state that Boutros made the fraudulent checks payable to herself, to entities she controlled, and to her creditors. Boutros further admitted that she used stolen identities and counterfeit identification documents to open bank accounts through which she facilitated the transfer of fraud proceeds for her benefit.
Court papers state that, in total, Boutros initiated or attempted to initiate at least $3.5 million in fraudulent transactions from the accounts that she illegally accessed. Some of those transfers were stopped before they were processed or were able to be reversed after the fraud was discovered. Boutros admitted to obtaining between $1.3 million and $2.2 million as a result of her fraud scheme.
Boutros was sentenced by the Honorable Amit Mehta of the U.S. District Court for the District of Columbia. Boutros was ordered to serve 30 months in prison followed by 60 months of supervised release. The Court will determine the amount of restitution owed, which will be at least $1.3 million, at a later date.
The Washington Field Office of the Federal Bureau of Investigation investigated the case. Assistant United States Attorney Elizabeth Aloi of the Fraud and Public Corruption Section is prosecuting the case. Former Assistant United States Attorneys Denise Simmonds and Anthony Saler also prosecuted the case.
D.C. Man Arrested and Charged with Robbing Three Banks in a Single DayRead the Press Release
WASHINGTON – Micheal Antonio Smith, 32, of Washington, D.C. has been arrested and charged via criminal complaint with robbing three different Wells Fargo Bank branches on Tuesday, September 29, 2020.
The charges were announced by Acting U.S. Attorney Michael R. Sherwin, Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Smith robbed the Wells Fargo Bank located at 3200 Pennsylvania Avenue S.E. at approximately 12:18 p.m. At approximately 12:59 p.m., Smith then robbed the Wells Fargo Bank at 609 H Street N.E. Finally, at 2:23 p.m., Smith robbed the Wells Fargo Bank located at 1934 14th Street N.W. Smith was captured on surveillance video in all three banks, and also captured outside a bank after he had removed his hood and mask. Overall, Smith received more than $1,500 from the three robberies.
FBI agents, with assistance from MPD officers and detectives, were able to identify Smith and track his movements on September 29, 2020, and thereafter. Agents confirmed that Smith had fled Washington, D.C. to Philadelphia after the last robbery and, on October 3, 2020, Smith was arrested in Philadelphia with assistance from the Philadelphia Police Department. Smith will be transported back to Washington, D.C. by the United States Marshals Service to face trial.
“This investigation is a perfect example of the necessary synergy between law enforcement organizations,” noted Acting U.S. Attorney Sherwin. “Through good policing and coordinated efforts, law enforcement was able to remove a dangerous person from the streets.” Special Agent in Charge Bornstein further stated “Those intending to rob banks should take heed that the FBI and its local task force partners to include MPD, will take swift actions to identify, seek and arrest those responsible for these acts” said Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. “This arrest is one of the many examples of the ways the FBI and our partners on the DC Violent Crime Task Force work together to swiftly take violent criminals off the streets before they act again.”
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter was investigated by the FBI Washington Field Office’s Violent Crime Task Force which is composed of FBI Special Agents, along with task force officers from the Metropolitan Police Department, the United States Capitol Police, the United States Marshal’s Service, the Court Services and Offender Supervision Agency, and the DHS Federal Protective Service. The task force is charged with identifying, investigating and removing the most egregious actors engaged in violent crimes within the District of Columbia. Investigative assistance in this matter was provided by the FBI – Philadelphia Field Office.
In announcing the charges, Acting U.S. Attorney Sherwin, acting Special Agent in Charge Bornstein, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys James B. Nelson and Jeffrey Poulin of the Federal Major Crimes Section, and Paralegal Specialist Teesha Tobias.
The Department of Justice Files Statement of Interest in Capitol Hill Baptist Church's Effort to Practice Its Faith During COVID-19Read the Press Release
WASHINGTON - The Department of Justice today filed a statement of interest in federal district court in Washington, D.C., arguing the Constitution and federal law require the District of Columbia to accommodate Capitol Hill Baptist Church’s effort to hold worship services outdoors, at least to the same extent the District of Columbia allows other forms of outdoor First Amendment activity, such as peaceful protests.
The statement of interest was filed in Capitol Hill Baptist Church v. Bowser, a case challenging the District of Columbia’s refusal to allow outdoor worship because of the city’s COVID-19 restrictions. The suit challenges the permit denial under the Free Speech and Free Exercise Clause of the First Amendment, and the Religious Freedom Restoration Act (RFRA). The suit alleges that while places of worship are limited to 100 people at outdoor worship services, these limits do not apply to, among other things, outdoor protests and rallies accommodating thousands.
“The right to free exercise of religion and the right to protest are both enshrined in the First Amendment of the Constitution. We are a nation dedicated to freedom of conscience and freedom of expression. The District of Columbia has, unfortunately, neglected these rights,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “The Department of Justice is committed to defending both of these fundamental freedoms and in supporting all Americans' rights to worship as they choose.”
“One of the most foundational rights protected by the Bill of Rights is the free exercise of religion,” said Acting U.S. Attorney Michael Sherwin for the District of Columbia. “The Department of Justice is committed to upholding all the civil rights protected under the First Amendment, be it peaceable assembly in protest or practicing faith.”
Capitol Hill Baptist Church is a church of more than 850 members with a strong religious conviction that it should meet in person as a complete body for worship each Sunday. It therefore sought a permit to hold worship outdoors in excess of the 100-person limit, which the city denied.
The United States’ brief explains there is no Constitutional or statutory basis for allowing protests and rallies attended by thousands of people, but silencing religious worship. The brief also explains the city bears a high burden of proof to justify its actions under the First Amendment and RFRA because its actions impose a “substantial burden” on religious exercise, as the church has shown here.
The statement of interest is part of Attorney General William P. Barr's initiative, announced April 27, directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review governmental policies around the country to ensure that civil liberties are protected during the COVID-19 pandemic.
Department of Justice Files Statement of Interest Supporting Capitol Hill Baptist Church's Efforts to Practice its Faith During COVID-19Read the Press Release
The Justice Department today filed a statement of interest in federal district court in Washington, D.C., arguing the Constitution and federal law require the District of Columbia to accommodate Capitol Hill Baptist Church’s effort to hold worship services outdoors, at least to the same extent the District of Columbia allows other forms of outdoor First Amendment activity, such as peaceful protests.
The statement of interest was filed in Capitol Hill Baptist Church v. Bowser, a case challenging the District of Columbia’s refusal to allow outdoor worship because of the city’s COVID-19 restrictions. The suit challenges the permit denial under the Free Speech and Free Exercise Clause of the First Amendment, and the Religious Freedom Restoration Act (RFRA). The suit alleges that while places of worship are limited to 100 people at outdoor worship services, these limits do not apply to, among other things, outdoor protests and rallies accommodating thousands.
“The right to free exercise of religion and the right to protest are both enshrined in the First Amendment of the Constitution,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “We are a nation dedicated to freedom of conscience and freedom of expression. The District of Columbia has, unfortunately, neglected these rights. The Justice Department is committed to defending both of these fundamental freedoms and in supporting all Americans rights to worship as they choose.”
“One of the most foundational rights protected by the Bill of Rights is the free exercise of religion,” said Acting U.S. Attorney Michael Sherwin for the District of Columbia. “The Justice Department is committed to upholding all the civil rights protected under the first amendment, be it peaceable assembly in protest or practicing faith.”
Capitol Hill Baptist Church is a church of more than 850 members with a strong religious conviction that it should meet in person as a complete body for worship each Sunday. It therefore sought a permit to hold worship outdoors in excess of the 100-person limit, which the city denied.
The United States’ brief explains there is no constitutional or statutory basis for allowing protests and rallies attended by thousands of people, while at the same time silencing religious worship. The brief also explains the city bears a high burden of proof to justify its actions under the First Amendment and RFRA because its actions impose a “substantial burden” on religious exercise, as the church has shown here.
The statement of interest is part of Attorney General William P. Barr's initiative, announced April 27, directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review governmental policies around the country to ensure that civil liberties are protected during the COVID-19 pandemic.
Statement of U.S. Attorney for the District of Columbia Michael R. Sherwin on Domestic Violence Awareness MonthRead the Press Release
WASHINGTON — Today is the first day of Domestic Violence Awareness Month (DVAM). First observed in 1987, DVAM is an opportunity to raise public awareness regarding issues relating to domestic violence. The United States Attorney’s Office for the District of Columbia is deeply involved in addressing domestic violence in our community, as our office handles the prosecution of all domestic violence cases involving adult offenders that occur in the District of Columbia. This year, we again take this opportunity to reaffirm our commitment to seeking justice for those individuals harmed by domestic violence.
As part of that commitment, earlier this year, our office launched a new Intimate Partner Violence (IPV) Prevention Initiative. This initiative is focused on collaborating with community partners to address IPV, as well as further developing our Office’s expertise in prosecuting domestic violence cases. Assistant United States Attorney Ryan Creighton, a senior prosecutor in the Sex Offense and Domestic Violence Section of our Office, was selected to lead this important Initiative. Nationally, about 1 in 4 women and 1 in 9 men experience sexual violence, physical violence, and/or stalking by an intimate partner. According to the American Academy of Child and Adolescent Psychiatry, as many as 10 million children and adolescents witness violence between their parents or caregivers each year, [1] and children who witness domestic violence are also significantly more likely to be victims-survivors of child abuse themselves.
IPV is just as much of a challenge here in Washington, D.C., and its effects can be devastating and, regrettably, sometimes fatal.
We must also acknowledge that the global COVID-19 pandemic has created even more challenges for those in our community most vulnerable to abuse, and to domestic violence in particular. Numerous reports over the last few months have documented an increase in domestic violence in communities nationally and across the globe. Our city has similarly seen the impact of this insidious form of violence. And at a time when many victims-survivors may feel trapped at home with their abuser, it is important that they know they are not alone, and that help is available.
Despite the ongoing health emergency, our Office has worked tirelessly to bring safety and justice to victims-survivors of domestic violence. For example:
- As part of the Intimate Partner Violence Prevention Initiative, our Office developed flyers, in English and Spanish, with key information about what services are available to victims-survivors of abuse during the pandemic, and how to report abuse safely. Officers with the Metropolitan Police Department have distributed hundreds of the flyers throughout our community and continue to do so;
- Prosecutors in our Sex Offense and Domestic Violence Section have responded to hundreds of motions seeking early release for those convicted of domestic violence, arguing against release where it is necessary to keep our community safe, with almost uniform success;
- Our Office worked with community partners to establish procedures for conducting remote interviews of children suspected to be victims-survivors of abuse; and
- Our Office is planning several remote events during the month of October to educate the public about domestic violence and to help victims-survivors learn how to break free from the powerful cycle of violence, including a WebEx presentation with the Washington Humane Society on October 29 from 3:00 – 4:15 p.m. on the link between animal cruelty and domestic violence. Other events focusing on domestic violence include the following:
- October 7, 14, 21, and 28 – Domestic Violence/Bullying Hispanic Youth Presentation (available to students only);
- October 14 and 21 – Women’s Roundtable Series focused on domestic violence (6:00 p.m. on the 14th) and protecting children from abuse and neglect (also at 6;00 p.m. on the 21st);
- October 27 – Hate Bias Task Force Meeting focused on helping victims-survivors of domestic violence during COVID-19 (6:00 p.m.); and
- October 28 – Clergy Ambassador Program event focused on domestic violence (6:00 p.m.).
While this Domestic Violence Awareness Month comes during a uniquely challenging time, it is nevertheless an important reminder of the fact that now, more than ever, we must fight to bring justice to those who have been victimized by domestic violence.
[1] https://www.aacap.org/AACAP/Families_and_Youth/Facts_for_Families/FFF-Guide/Helping-Children-Exposed-to-Domestic-Violence-109.aspx.
Maryland Woman Pleads Guilty to Committing Health Care FraudRead the Press Release
WASHINGTON – Janet Olatimbo Akindipe, 62, of Laurel, Maryland, pleaded guilty today in federal court to defrauding the D.C. Medicaid program out of more than a quarter million dollars.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin; Robert E. Bornstein, Acting Special Agent in Charge, FBI Washington Field Office, Criminal Division; Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C.; and Daniel W. Lucas, Inspector General for the District of Columbia.
Akindipe pleaded guilty to health care fraud in U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Akindipe faces a likely recommended sentence of between 18 and 24 months in prison and a fine of up to $75,000. The Honorable Colleen Kollar-Kotelly took the plea and scheduled sentencing for January 22, 2021.
Akindipe has worked as a full-time employee for the U.S. Department of Health and Human Services since March 2013. At various times between November 2014 and June 2020, she also was employed by six different home health agencies to serve as a personal care aide for D.C. Medicaid beneficiaries. The home health agencies employed Akindipe to assist Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Akindipe was supposed to document the care she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered.
Between January 2015 and June 2020, Akindipe caused the D.C. Medicaid Program to issue payments totaling $269,808 for services that she did not render. As part of her fraud scheme, she submitted false timesheets to different home health agencies purporting that she provided personal care aide services that she did not provide. She claimed she provided such services during times when she actually was working her shift at the National Institutes of Health. She claimed to work more than twenty hours in a given day on more than 300 occasions. She also claimed to provide personal care aide services in the District of Columbia on days when she was not even in the United States, but traveling abroad instead. Akindipe acknowledged paying kickbacks to Medicaid beneficiaries to get them to sign timesheets saying she provided services that she did not actually render.
The FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the D.C. Medicaid program. Since October 2019, five former personal care aides have been sentenced in U.S. District Court for defrauding D.C. Medicaid. In June 2020, four additional individuals, including Akindipe, were charged in criminal complaints with health care fraud and health care false statements.
The government counts on the public for tips and assistance in helping stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS‑TIPS [(800) 447-8477].
Assistant U.S. Attorney Kondi Kleinman of the Fraud Section is prosecuting the case.
United States Files Complaint Against Nutter Home Loans for Forging Certifications and Using Unqualified Underwriters to Approve Government-Insured Reverse MortgagesRead the Press Release
WASHINGTON - The United States has filed a complaint under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and the False Claims Act against Nutter Home Loans, f/k/a James B. Nutter & Co. (Nutter), for forging certifications and using unqualified underwriters to approve Federal Housing Administration (FHA) insured Home Equity Conversion Mortgages (HECM), the Department of Justice announced today.
“The HECM program benefits America’s seniors and our communities,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “The Department is committed to holding accountable those who violate the bedrock requirements of this important program.”
“Companies participating in federal programs must operate with honor and integrity,” said Acting U.S Attorney Michael R. Sherwin for the District of Columbia. “This action sends a clear message that we will not tolerate fraud against programs designed to financially help our nation’s seniors.”
“Lenders who willfully disregard FHA requirements for HECM loans expose the program to significant financial losses that threaten the future availability of this important program to seniors,” said Rae Oliver Davis, Inspector General, U.S. Department of Housing and Urban Development. “This complaint is evidence that we will tirelessly investigate allegations of abuses of the HECM program by FHA lenders.”
The FHA, part of the U.S. Department of Housing and Urban Development (HUD), offers numerous mortgage insurance programs intended to help build and sustain strong communities across America. The HECM program is a reverse mortgage program specifically for senior homeowners age 62 and older. The program allows seniors to access the equity in their residences, and thereby age in place in their family home, through a mortgage agreement with a lender that is insured against loss by the FHA. The United States’ complaint alleges that in order to significantly increase its loan production, Nutter used unqualified underwriters lacking the requirements established by HUD to review and approve HECMs that Nutter ultimately insured with the FHA. Moreover, on other loans, Nutter forged the signatures of qualified underwriters to make it appear that a qualified underwriter had reviewed and approved the loan.
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, HUD, and HUD’s Office of Inspector General. The claims asserted against the defendant are allegations only, and there has been no determination of liability.
Maryland Couple Arrested for Selling Explosive Devices to Undercover ATF AgentRead the Press Release
WASHINGTON – Brittany Nicole Adams, 29, of Landover, MD, and Anthony Benson, Jr., 30, of Washington, D.C., have been indicted and arrested for conspiracy to distribute explosive devices and three counts of distribution of explosive devices. The charges were filed in an indictment unsealed in the U.S. District Court for the District of Columbia, announced U.S. Attorney Michael R. Sherwin and Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
The investigation began after ATF identified advertisements on a website that offered for sale explosive devices described as “Dynamite,” and available for local pickup in Washington, D.C. An undercover agent responded to the ad and arranged to meet with the seller at a predetermined location in Washington, D.C. In June of 2020, ATF agents conducted an undercover controlled purchase of suspected explosive devices after Adams and Benson met with the undercover agent in response to communication related to the sale advertisement. At the meeting, Adams provided the undercover agent with eleven suspected illegal explosive devices in exchange for U.S. currency. Subsequently, on two additional occasions in July of 2020, Adams and Benson met with the undercover agent and again provided to the undercover agent illegal explosive devices in exchange for U.S. currency.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, Acting U.S. Attorney Sherwin and Special Agent in Charge Benedict commended the work of those who investigated the case from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorney Emory V. Cole of the Federal Major Crimes Section, Paralegal Specialist Teesha Tobias, and Legal Assistant Kate Abrey.
Two Defendants Plead Guilty to Conspiracy to Use Forged Passports and Identification Cards in Widespread English Proficiency Exam Scheme Benefiting Chinese Nationals Seeking Student VisasRead the Press Release
WASHINGTON – Yixin Ren, 36, of Brooklyn, NY, and Yishan Lin, 35, of Queens, NY, pled guilty today before U.S. District Court Judge Timothy J. Kelly to one count of conspiracy to use false, forged, and counterfeited documents, in violation of 18 U.S.C. § 371, in connection with a scheme where Chinese nationals fraudulently obtained student visas by hiring people with fake Chinese passports to take an English proficiency test in their names.
The United States requires foreign citizens who wish to enter the United States on a temporary basis to study at a college or university to first obtain an F-1 student visa. To obtain a student visa, foreign citizens must first apply to study at a school that has been authorized by the Student and Exchange Visitor Program (SEVP) to enroll foreign students. In the United States, many SEVP-certified schools require foreign citizens whose first language is not English to certify proficiency in English by achieving a particular score on the TOEFL or other English proficiency examination.
When the foreign national goes to a TOEFL testing location, the test taker must present an original, non-expired, government-issued identification document recognized by their home country. As described in the indictment and the plea agreement, the defendants conspired to use counterfeit People’s Republic of China passports and national identification cards to impersonate at least 50 different Chinese nationals at various TOEFL testing locations internationally, including in the District of Columbia.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin for the District of Columbia, and Special Agent in Charge Raymond Villanueva of the HSI Washington Field Office.
The charge of conspiracy to use false, forged, and counterfeited documents carries a statutory maximum penalty of five years in prison. Sentencing has been scheduled before the Honorable Timothy J. Kelly on December 11, 2020.
This case was investigated by Homeland Security Investigations’ Washington Field Office, with assistance from the U.S. Citizenship and Immigration Service’s Fraud Detection National Security Section and the U.S. Treasury Office of the Inspector General. The Educational Testing Service, which administers the TOEFL exam, has also provided assistance during the investigation.
This matter is being prosecuted by Assistant United States Attorney Jessi Camille Brooks of the National Security Section, with assistance from Paralegal Specialist Jorge Casillas. Special thanks go to former Assistant United States Attorney Jeff Pearlman and former Special Assistant United States Attorney Elizabeth Dewar.
New York Couple Pleads Guilty to Federal Charges in $4 Million Extortion SchemeRead the Press Release
WASHINGTON – Archie Kaslov, 54, and Candy Evans, 51, of New York, N.Y., pled guilty today to federal charges related to their roles in a wide-ranging fraud, extortion, and money laundering scheme, which involved one of their sons pretending to be a New York mobster in order to get a Maryland man to embezzle more than $4 million from his employer in Washington, D.C. The announcement was made by Acting U.S. Attorney Michael R. Sherwin and Robert E. Bornstein, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
In April 2018, a federal grand jury indicted Kaslov; Candy Evans; their sons Tony John Evans, Corry Blue Evans, and Robert Evans; and Robert Evans’ common-law ex-wife Gina Russell on various charges related to the extortion scheme.
As part of the scheme, a New York woman conspired with Kaslov, Candy Evans, Tony John Evans, Corry Blue Evans, Robert Evans, and Russell to extort money and gold bars from the Maryland man, which caused the Maryland man to embezzle funds from his employer between January 2017 and March 2017, and which he converted to cash and gold bars. The Maryland man delivered the money and gold bars to New York drop-off locations, including a hotel room, believing the funds were going to mobsters to whom the New York woman owed money. In reality, all of the funds he embezzled and delivered to New York went to members of the Evans-Kaslov family.
Kaslov pled guilty to conspiracy to commit wire fraud, in violation of 18 U.S.C. § 371. As part of his guilty plea, he admitted that he drove members of his family around New York with cash obtained from the scheme. On one such occasion, he drove to the New York diamond district on 47th Street where he and family members spent tens of thousands of dollars in criminal proceeds from the scheme on watches, including Rolexes. Kaslov also admitted that, after the Maryland man delivered approximately $2 million in gold bars to Tony John Evans and other individuals, Kaslov and others turned around and sold the gold bars for cash. Kaslov also traveled to Texas in May 2017 with a family member, where the two paid more than $300,000 in cash, the majority of which was proceeds from the scheme, to purchase a Rolls Royce Phantom Drophead from a car dealer. In January 2020, Kaslov and Candy Evans sold that Rolls Royce in New Jersey for $120,000.
Candy Evans pled guilty to tampering with a witness by corrupt persuasion or misleading conduct, in violation of 18 U.S.C. § 1512(b)(3). As part of her guilty plea, she admitted that once the FBI launched its investigation, she counseled the New York woman whom the Maryland man met on Backpage to lie to people, including the FBI. In April 2017, Candy Evans, believing that married individuals could not be compelled to testify against each other, advised the New York woman and Russell to get married to prevent such testimony about the scheme in Court. The New York woman and Russell married at City Hall in New York. Candy Evans further panicked and wanted a letter that would exonerate her, Kaslov, and their three sons from any involvement in the scheme to get money from the Maryland man. Thus, she directed Russell and the New York woman to sign a handwritten, notarized confession attempting to fully implicate themselves and to exonerate Candy Evans, Kaslov, and their sons. Later that month, when the New York woman was scheduled to meet with the FBI, Candy Evans counseled the woman to lie by telling the FBI that there actually never had been an extortion scheme and that the Maryland man had invented the entire thing about mobsters to justify why he embezzled money from his employer. In October 2017, two days after the FBI executed search warrants at various Evans-Kaslov family members’ residences, Candy Evans called an FBI special agent who was investigating the case and told him that Kaslov and two of her other sons had not done anything illegal, which she acknowledged was false, and that it was just Tony John Evans, Russell, and the New York woman who had committed the crimes. In November 2017, prior to Russell’s interview with the FBI, Candy Evans also instructed Russell to lie to the FBI.
The maximum sentence for Kaslov’s charge, conspiracy to commit wire fraud, is five years in prison. The maximum sentence for tampering with a witness is twenty years in prison. Under federal sentencing guidelines, however, the likely recommended sentence for Kaslov is 30 to 37 months in prison. Candy Evans’ likely recommended sentence is 12 to 18 months’ imprisonment. As part of his plea agreement, Kaslov agreed to forfeit certain property that was seized as part of the government’s investigation. Candy Evans also agreed not to challenge the forfeiture of certain items of property seized by the government.
In September 2018, Tony John Evans pled guilty to interference with interstate commerce by extortion. The Honorable Emmet G. Sullivan, the District Court judge presiding over the case, sentenced him to five years in prison. In July 2019, Russell pled guilty to that same offense. She awaits sentencing. Charges remain outstanding against Robert Evans and Corry Blue Evans.
In announcing the guilty pleas, Acting U.S. Attorney Sherwin and Acting Special Agent in Charge Bornstein commended the work of those who investigated the case from the FBI’s Washington Field Office Criminal Division. They expressed appreciation for assistance provided by the U.S. Department of Justice Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Diane Lucas and Arvind Lal, who are assisting with forfeiture issues, Paralegal Specialist Stephanie Frijas, former Paralegal Specialists Brittany Phillips, Joshua Fein, Jessica Mundi, and Kristy Penny, and Forensic Accountant Bryan Snitselaar.
Finally, they commended the work of Assistant U.S. Attorneys David Kent and Kondi Kleinman, who investigated and are prosecuting the case.
Two Individuals Charged with Bribery Related to Iraq ContractsRead the Press Release
WASHINGTON –Two individuals have been charged with bribery offenses in connection with Department of Defense contracts as part of the Fraud Section’s ongoing efforts to combat corruption and fraud in contracting on U.S. military installations overseas.
Mark Alan Fryday, 37, and Lara Jumaah Mohammed, 30, both residing in Erbil, Iraq, were charged in an indictment filed in the District of Columbia with one count of conspiracy and one count of bribery of a public official.
“This alleged bribery and kickback scheme sought to undermine the efforts of the Department of Defense to lawfully contract overseas,” said Acting Assistant Attorney General Brian C. Rabbitt. “Corruption undermines our military’s readiness and affects the wellbeing of our servicemembers, and the Department of Justice will continue to work to protect our men and women in uniform from corrupt and fraudulent conduct around the world.”
“This office is committed to protecting the integrity of government contracting and in particular stamping out corruption that threatens the U.S. military and its installations abroad,” said Acting U.S. Attorney Michael Sherwin of the District of Columbia. “This indictment, and our partnership with the Fraud Section on this case, is part of that effort.”
“Contractors who do business with the Department of Defense should take notice of these investigations. This type of egregious conduct will not be tolerated” said Stanley Newell, Special Agent in Charge for the Defense Criminal Investigative Service (DCIS), Transnational Operations Field Office. “DCIS and its law enforcement partners remain steadfast in our commitment to defend the integrity of the Department of Defense contracting process by rooting out fraud and deceit of this sort, and ensuring that the perpetrators are held accountable.”
“We are committed to maintaining the integrity of the procurement process,” said Director Frank Robey of the U.S. Criminal Investigation Command’s (CID) Major Procurement Fraud Unit. “This indictment sends an unmistakable message to other companies around the world – that we will be relentless in rooting out corruption at any level.”
The indictment alleges that Fryday and Mohammed offered bribes to a U.S. Army official at Erbil Air Base in Iraq. Fryday and Mohammed allegedly owned companies based in Erbil that sought contracts to supply goods and services to U.S. military forces there. In early 2020, Fryday and Mohammed allegedly offered to pay an Army contracting official a kickback equivalent to 20 percent of the value of any contract that he awarded to their companies. Fryday and Mohammed also allegedly offered an upfront cash payment in exchange for the award of a contract to supply equipment that was due to be awarded in late March 2020.
As part of the Fraud Section’s on-going efforts to combat corruption and fraud in contracting on U.S. military installations overseas, two additional individuals have been previously charged. Roy George Varkey, 56, of Kuwait City, Kuwait, was charged with two counts of bribery in an indictment filed in the District of Columbia on Dec. 19, 2019, for his role in offering bribes to an employee of the Defense Logistics Agency (DLA) at Camp Arifjan, a U.S. military facility in Kuwait, in late 2019. Xavier Fernando Monroy, the former Director of Operations of the U.S. Navy’s Military Sealift Command Office in Busan, Republic of Korea, was charged by complaint on May 20, 2020 in the District of Columbia for allegedly participating in a bribery conspiracy and lying to federal investigators.
An indictment or complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption cases.
The investigation is being conducted by DCIS and the CID’s Major Procurement Fraud Unit. Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric S. Nguyen of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Two Individuals Charged with Bribery Related to Iraq ContractsRead the Press Release
Two individuals have been charged with bribery offenses in connection with Department of Defense contracts as part of the Fraud Section’s ongoing efforts to combat corruption and fraud in contracting on U.S. military installations overseas.
Mark Alan Fryday, 37, and Lara Jumaah Mohammed, 30, both residing in Erbil, Iraq, were charged in an indictment filed in the District of Columbia with one count of conspiracy and one count of bribery of a public official.
“This alleged bribery and kickback scheme sought to undermine the efforts of the Department of Defense to lawfully contract overseas,” said Acting Assistant Attorney General Brian C. Rabbitt. “Corruption undermines our military’s readiness and affects the wellbeing of our servicemembers, and the Department of Justice will continue to work to protect our men and women in uniform from corrupt and fraudulent conduct around the world.”
“My office is committed to protecting the integrity of government contracting and in particular stamping out corruption that threatens the U.S. military and its installations abroad,” said Acting U.S. Attorney Michael Sherwin of the District of Columbia. “This indictment, and our partnership with the Fraud Section on this case, is part of that effort.”
“Contractors who do business with the Department of Defense should take notice of these investigations. This type of egregious conduct will not be tolerated” said Stanley Newell, Special Agent in Charge for the Defense Criminal Investigative Service (DCIS), Transnational Operations Field Office. “DCIS and its law enforcement partners remain steadfast in our commitment to defend the integrity of the Department of Defense contracting process by rooting out fraud and deceit of this sort, and ensuring that the perpetrators are held accountable.”
“We are committed to maintaining the integrity of the procurement process,” said Director Frank Robey of the U.S. Criminal Investigation Command’s (CID) Major Procurement Fraud Unit. “This indictment sends an unmistakable message to other companies around the world – that we will be relentless in rooting out corruption at any level.”
The indictment alleges that Fryday and Mohammed offered bribes to a U.S. Army official at Erbil Air Base in Iraq. Fryday and Mohammed allegedly owned companies based in Erbil that sought contracts to supply goods and services to U.S. military forces there. In early 2020, Fryday and Mohammed allegedly offered to pay an Army contracting official a kickback equivalent to 20 percent of the value of any contract that he awarded to their companies. Fryday and Mohammed also allegedly offered an upfront cash payment in exchange for the award of a contract to supply equipment that was due to be awarded in late March 2020.
As part of the Fraud Section’s on-going efforts to combat corruption and fraud in contracting on U.S. military installations overseas, two additional individuals have been previously charged. Roy George Varkey, 56, of Kuwait City, Kuwait, was charged with two counts of bribery in an indictment filed in the District of Columbia on Dec. 19, 2019, for his role in offering bribes to an employee of the Defense Logistics Agency (DLA) at Camp Arifjan, a U.S. military facility in Kuwait, in late 2019. Xavier Fernando Monroy, the former Director of Operations of the U.S. Navy’s Military Sealift Command Office in Busan, Republic of Korea, was charged by complaint on May 20, 2020 in the District of Columbia for allegedly participating in a bribery conspiracy and lying to federal investigators.
An indictment or complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption cases.
The investigation is being conducted by DCIS and the CID’s Major Procurement Fraud Unit. Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric S. Nguyen of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
United States Citizen Who Joined ISIS Charged with Material Support ViolationsRead the Press Release
WASHINGTON – An indictment and arrest warrant were unsealed today in the federal court of the District of Columbia charging Lirim Sylejmani, a Kosovo-born naturalized U.S. citizen, with conspiring to provide, providing, and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, and receiving training from ISIS, in violation of 18 U.S.C. §§ 2339B and 2339D.
Sylejmani was detained overseas by the Syrian Democratic Forces (SDF) and recently transferred into FBI custody. Sylejmani made his initial appearance before Magistrate Judge Robin M. Meriweather in the U.S. District Court for the District of Columbia.
“The United States is committed to holding accountable those who have left this country in order to join ISIS,” said Assistant Attorney General John C. Demers. “I want to thank the agents, analysts and prosecutors involved for their effort to hold the defendant responsible for his actions.”
“The defendant is a U.S. citizen who abandoned the country that welcomed him to join ISIS in Syria” stated Acting U.S. Attorney Sherwin. “He will now be held accountable for his actions in an American courtroom. Our national security prosecutors and law enforcement partners will continue to ensure that those who threaten our country are prosecuted to the fullest extent of the law.”
“Today’s announcement underscores the FBI’s commitment to combatting terrorism worldwide. Sylejmani allegedly traveled to Syria with the intent to join, train with, and fight on behalf of ISIS, said Matthew R. Alcoke, Special Agent in Charge of the FBI Washington Field Office Counterterrorism Division. “The FBI Washington Field Office Joint Terrorism Task Force will continue to relentlessly pursue all individuals who choose to support terrorist organizations, no matter where they are located.”
According to the allegations in the indictment, from November 2015 through February 2019, Sylejmani conspired to provide and provided material support and resources, including personnel and services, to ISIS in Syria and received military training from the terrorist organization. The defendant was captured by the SDF in 2019 and has spoken to a number of media outlets about his time with ISIS.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force. Assistant U.S Attorneys Jessi Camille Brooks and Brenda J. Johnson of the National Security Section, and Trial Attorney David Smith of the National Security Division’s Counterterrorism Section are litigating the case, with assistance from Paralegal Specialist Jorge Casillas.
United States Citizen Who Joined ISIS Charged with Material Support ViolationsRead the Press Release
An indictment and arrest warrant were unsealed today in the federal court of the District of Columbia charging Lirim Sylejmani, a Kosovo-born naturalized U.S. citizen, with conspiring to provide, providing, and attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, and receiving training from ISIS, in violation of 18 U.S.C. §§ 2339B and 2339D.
Sylejmani was detained overseas by the Syrian Democratic Forces (SDF) and recently transferred into FBI custody. Sylejmani made his initial appearance before U.S. District Court in Washington, D.C.
“The United States is committed to holding accountable those who have left this country in order to join ISIS,” said Assistant Attorney General John C. Demers. “I want to thank the agents, analysts and prosecutors involved for their effort to hold the defendant responsible for his actions.”
“The defendant is a U.S. citizen who abandoned the country that welcomed him to join ISIS in Syria” stated Acting U.S. Attorney Sherwin. “He will now be held accountable for his actions in an American courtroom. Our national security prosecutors and law enforcement partners will continue to ensure that those who threaten our country are prosecuted to the fullest extent of the law.”
“Combating terrorism remains the FBI’s top priority, and we will continue working with both our U.S. and foreign partners around the world in furtherance of that mission,” said Jill Sanborn, Assistant Director of the FBI's Counterterrorism Division. “Today’s announcement should serve as a warning to those who have traveled, or attempted to travel, to join ISIS that the FBI remains steadfast in ensuring they face justice.”
“Today’s announcement underscores the FBI’s commitment to combatting terrorism worldwide. Sylejmani allegedly traveled to Syria with the intent to join, train with, and fight on behalf of ISIS, said Matthew R. Alcoke, Special Agent in Charge of the FBI Washington Field Office Counterterrorism Division. “The FBI Washington Field Office Joint Terrorism Task Force will continue to relentlessly pursue all individuals who choose to support terrorist organizations, no matter where they are located.”
According to the allegations in the indictment, from November 2015 through February 2019, Sylejmani conspired to provide and provided material support and resources, including personnel and services, to ISIS in Syria and received military training from the terrorist organization. The defendant was captured by the SDF in 2019 and has spoken to a number of media outlets about his time with ISIS.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force. Assistant U.S Attorneys Jessi Camille Brooks and Brenda J. Johnson of the National Security Section, and Trial Attorney David Smith of the National Security Division’s Counterterrorism Section are litigating the case, with assistance from Paralegal Specialist Jorge Casillas.
U.S. Citizen Sentenced to 21 Months in Prison in Scheme to Unlawfully Export Stolen U.S. TechnologyRead the Press Release
WASHINGTON – Si Mong Park, 50, a United States citizen born in South Korea, was sentenced on September 14, 2020 for stealing technology from U.S. companies he worked for and unlawfully exporting the technology to South Korea. Judge Rudolph Contreras sentenced the defendant to 21 months in prison and 36 months of supervised release.
The defendant worked as a software engineer in the United States. While working for two different American defense contractors, he stole technical proprietary data relating to testing environment software for a storage management system for a military aircraft, and data relating to a missile system. In November 2011, he took that information to South Korea, and subsequently presented some of that information to non-U.S. personnel in order to drum up business for his company. The files contained technical data that under the Arms Export Control Act were designated on the United States Munitions List. Under the International Traffic in Arms Regulations, the defendant was required to apply for and obtain an export license from the United States Department of State before exporting the technical data to another country or showing it to another foreign citizen. The defendant was extradited to the United States in August of 2019, and pled guilty.
“The defendant stole sensitive U.S. military-related information and sought to use it for his own benefit. The U.S. Attorney’s Office is committed to prosecuting those who violate U.S. export laws designed to protect our national security. ” said Acting U.S. Attorney Michael R. Sherwin.
“When Si Mong Park worked for American defense contractors, he was entrusted with sensitive information about our defense systems. He betrayed that trust when he stole and illegally exported that information to pursue profit for his own gain,” said Special Agent in Charge of the Washington, D.C. Field Office Raymond Villanueva. “Homeland Security Investigations works to investigate and seek prosecution for those who partake in the illegal export of U.S. military technical data to other nations as part of our mission to protect national security.”
"The illegal compromise of sensitive technology and information poses serious risks to our defense systems and personnel," said Special Agent in Charge Robert E. Craig, Jr., of the DCIS Mid-Atlantic Field Office. "DCIS remains committed to working with our law enforcement partners to ensure the protection of critical defense technology and to bring to justice those who threaten our national security."
This case was investigated by Homeland Security Investigations Field Office. The case was prosecuted by Assistant U.S. Attorney Brenda J. Johnson of the National Security Section, Senior Trial Attorney Jeff Pearlman of the Computer Crime and Intellectual Property Section of the Department of Justice and Heather Schmidt of the National Security Division. The Office of International Affairs, HSI Seoul, HSI Jakarta and the Seoul Metropolitan Police Agency also provided valuable assistance in the case.
Maryland Man Charged with Arson in Federal Court for Igniting Police Cars on Fire Outside of the United States Supreme CourtRead the Press Release
WASHINGTON – Cody Michael Tarner, 23, of Hagerstown, Maryland, was indicted by a federal grand jury with multiple offenses related to his burning of two police cars and the attempted burning of a third police vehicle, announced Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia and Matthew R. Alcoke, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Washington Field Office Counterterrorism Division
On September 8, Tarner was indicted for Arson and Destruction of Government Property. On August 17, 2020, the Honorable Judge G. Michael Harvey held Tarner without bond pending trial.
The indictment stems from an incident on July 15, 2020, when Tarner poured a liquid from a gas can onto three Supreme Court Police vehicles igniting two of the vehicles. This also resulted in Tarner being engulfed in flames and suffering severe burns to himself. A Supreme Court Police Officer immediately rendered first aid to Tarner. Tarner was subsequently hospitalized and was brought to court for his initial appearance on August 13, 2020, when he was released from the hospital. Of the three police vehicles, one was completely burned, one was damaged, and the third did not catch fire.
An indictment is a formal finding by a grand jury that there is probable cause that the defendant committed the stated crimes; it is not evidence of guilt. A defendant is presumed innocent unless proven guilty.
“The actions taken by this individual destroyed federal property and were heinous and could have resulted in the loss of lives,” said Acting United States Attorney Michael R. Sherwin. “In addition, members of law enforcement were targeted and this type of action will never be acceptable as our office will continue to prosecute crimes such as this to the fullest extent of the law.”
“The attempted destruction of federal property will not be tolerated,” said Matthew R. Alcoke, Special Agent in Charge of the Washington Field Office’s Counterterrorism Division. “The FBI is committed to quickly responding with our partners at The Supreme Court Police, U.S. Capitol Police, and other members of the Joint Terrorism Task Force to diminish any potential risk to the public and government facilities in these situations.”
In announcing the charges, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those who investigated the case, including FBI, Supreme Court Police, as well as the United States Capitol Police, who provided valuable assistance. This case is being investigated by the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
District Man Sentenced to 8 1/2 Year Prison Term for String of Robberies Targeting Women in Columbia HeightsRead the Press Release
WASHINGTON – Thadduse Hartridge, 19, of Washington, D.C. was sentenced on September 16, 2020 by the Honorable Judge Judith A. Smith of the Superior Court for the District of Columbia to 102 months’ (8 ½ years’) incarceration to be followed by three years of supervised release, announced Acting U.S. Attorney Michael R. Sherwin, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Hartridge previously pled guilty in the Superior Court for the District of Columbia to one count of Carjacking for an offense that occurred on January 17, 2019, one count of Robbery for an offense that occurred on January 16, 2019, and one count of Assault with Intent to Commit Robbery for an offense that occurred on December 12, 2018.
In each of the three offenses, Hartridge, along with his co-defendant, Kaveyon Andrews, targeted female victims during the day while they were walking alone near alleyways in the Columbia Heights neighborhood. In each offense, the defendants used gratuitous force and violence to rob the victims of their property. The defendants used weapons, including a metal baton, a knife, and a brick to assault the victims, causing serious physical injuries, including compound fractures, lacerations, and head injuries. After the offense on January 17, 2019, Hartridge and his co-defendant were identified from high resolution security footage depicting the carjacking offense that was broadcasted over news media outlets by MPD. The co-defendant turned himself in and provided a statement to law enforcement, in which he acknowledged his role in the three offenses. In addition, Washington Metropolitan Area Transit Authority (WMATA) footage and metro card data showed that both defendants travelled from Anacostia metro station to the Columbia Heights metro station just before each of the offenses, and there was additional security footage obtained capturing a portion of the January 16, 2019 offense.
The co-defendant, Kaveyon Andrews, is scheduled to be sentenced before Judge Smith on the same counts on November 10, 2020.
In announcing the sentence, Acting U.S. Attorney Michael R. Sherwin, and MPD Chief Newsham commended the work of those law enforcement officers, including the Metro Transit Police Department officers, who assisted in the investigation of the cases. They also cited the efforts of Assistant U.S. Attorney Lauren B. Goddard, who investigated and prosecuted the cases from the U.S. Attorney’s Office for the District of Columbia. They also thanked Paralegal Specialist Antoinette M. Sakamsa.
Woman Charged for Throwing Lit Device at Metropolitan Police OfficerRead the Press Release
WASHINGTON – Alanna Rogers, 26, of Baltimore, MD, was arraigned yesterday in the Superior Court of the District of Columbia on a criminal complaint charging her with felony assault on a police officer while armed and misdemeanor rioting based on her throwing a firework at police officers, burning the trousers of one police official, during a declared riot that took place on August 30 and carried over to August 31, 2020, announced Acting U.S. Attorney Michael R. Sherwin. Although Rogers was not charged when initially arrested on August 31, today’s charges are based on additional investigative work by the Metropolitan Police Department and the United States Attorney’s Office for the District of Columbia.
At today’s arraignment, the Honorable Judge Sean C. Staples found probable cause for the charges and agreed with the government that a presumption in favor of detention applied in this case. The court released Rogers, however, after finding that the presumption was rebutted by her lack of criminal history. The court ordered Rogers to stay away from the 800 and 900 blocks of Sixteenth Street, N.W., and not to possess fireworks.
A criminal complaint is a formal accusation of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
In addition to the Rogers case, last week, the U.S. Attorney’s Office filed charges against two other individuals for rioting. One defendant was charged with misdemeanor rioting, in United States v. Wu, Crim. No. 2020-CMD-006839, for his conduct on August 30-31. The other was charged with misdemeanor destruction of property, defacing property, and misdemeanor rioting, in United States v. Powell, Crim. No. 2020-CMD-006862, for his conduct on August 14. The U.S. Attorney’s Office continues to review additional evidence presented by MPD and will bring additional charges as warranted by the evidence.
United States Files Complaint to Forfeit Nearly $1 Million from Companies Accused of Enabling North Korean Sanctions EvasionRead the Press Release
WASHINGTON - The United States has filed a complaint to forfeit $955,880.85 associated with two companies, announced Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia; Emmerson Buie, Jr., Special Agent in Charge of the FBI Chicago Field Office; and Steven Cagen, Special Agent in Charge of the HSI Denver Field Office.
The complaint alleges the Ryer International Trading Limited and Rensy International Trading Co., Limited acted as intermediaries for North Korea’s purchase and acquisition of telecommunications equipment from ZTE, which included US-origin components.
ZTE exported millions of U.S.-origin parts to North Korea between 2010 and 2016, receiving payments in U.S. dollars through China-based shell companies, Ryer and Rensy. Ryer and Rensy were intermediaries to negotiate purchase contracts, request payments, and receive the U.S.-origin goods on behalf of ZTE’s North Korean customers.
Ryer’s proprietors attempted to invest the proceeds of their activity in the EB-5 immigrant investor program, which provides eligibility for permanent residence in the United States.
“This complaint illuminates how procurement networks coordinate with front companies to move North Korean money through the United States to obtain U.S.-origin technology in violation of sanctions and money laundering laws,” said Acting U.S. Attorney Sherwin. “This case demonstrates that we will use all tools in our Threat Finance Unit’s portfolio to disrupt activity by the North Korean regime that harms U.S. national security, regardless of where they are doing business.”
"The evasion of U.S. financial sanctions by foreign actors will not be tolerated, and the FBI will continue to work with federal law enforcement partners to ensure that there are consequences for those seeking to profit through illegal money laundering activities,” said Emmerson Buie, Jr., Special Agent in Charge of the FBI’s Chicago Field Office.
“This seizure demonstrates how seriously we take our commitment to safeguarding the interests of the United States against criminal elements aiding North Korea,” said Steven Cagen, special-agent-in-charge, HSI Denver. “This case underscores the resolve of Homeland Security Investigations to use its investigative authority to disrupt this threat.”
The complaint was filed on September 11, 2020, in the U.S. District Court for the District of Columbia. According to the complaint, Ryer and Rensy also acted as a conduit for North Korean money laundering through sanctioned North Korean financial institutions.
The United Nations Panel of Experts reported as to how North Korean banks have been able to evade sanctions and continue to access the international banking system. Specifically, despite strengthened financial sanctions, North Korean networks are accessing formal banking channels by maintaining correspondent bank accounts and representative offices abroad that are staffed by foreign nationals making use of front companies. These broad interwoven networks allow North Korean banks to conduct illicit procurement and banking activity.
The claims made in the complaint are only allegations and do not constitute a determination of liability.
The FBI’s Chicago Field Office and HSI’s Colorado Springs Office are investigating the case. Assistant U.S Attorneys Zia M. Faruqui, Michael Grady, and Brian P. Hudak, and National Security Division Deputy Chief Liz Cannon are litigating the case, with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick, and Records Examiner Angela De Falco.
Department of Justice Announces Charges of North Korean and Malaysia Nationals for Bank Fraud, Money Laundering and North Korea Sanctions ViolationsRead the Press Release
WASHINGTON – The Department of Justice announced a criminal complaint charging Ri Jong Chol, Ri Yu Gyong, North Korean nationals, and Gan Chee Lim, a Malaysia national. The three were charged with conspiracy to violate North Korean Sanctions Regulations and bank fraud, and conspiracy to launder funds. The defendants allegedly established and utilized front companies that transmitted U.S. dollar wires through the United States to purchase commodities on behalf of North Korean customers.
“Violations of U.S. sanctions on North Korea enrich the regime and allow it to continue to fund the destabilizing activities that the sanctions are meant to prevent,” said John C. Demers, Assistant Attorney General for National Security. “These defendants allegedly violated U.S. sanctions by lying to international financial institutions in order to dupe them into processing transactions in U.S. dollars which they would not otherwise have cleared. The Department of Justice will continue to investigate and prosecute violations of the North Korea sanctions so that one day that country may rejoin the community of nations.”
“The defendants knowingly and willfully circumvented sanctions designed to protect the U.S. financial system from abuse by individuals working on behalf of North Korea,” said Acting U.S. Attorney Sherwin. “We will continue to disrupt their actions and hold them accountable.”
“The FBI will not stand idle while North Koreans attempt to covertly access the U.S. financial system in violation of U.S. sanctions,” said Alan E. Kohler Jr, Assistant Director of the FBI's Counterintelligence Division. “The FBI will continue to protect the sanctity of the U.S. financial system.”
“Protecting our financial institutions from National Security focused money laundering is a top priority of our office,” said Michael F. Paul, Acting Special Agent in Charge of the FBI’s Minneapolis Division. “Our agents, financial analysts and intelligence analysts worked tirelessly on this international investigation, and their hard work paid off.”
U.S. sanctions and banking regulations prevented correspondent banks in the United States from processing wire transfers on behalf of customers located in North Korea. According to court documents, beginning in at least August 2015 and continuing until at least August 2016, the defendants deceived banks in the U.S. into processing transactions for North Korean customers. The defendants and their co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus.
Court documents note that Ri Jong Chol was the Deputy Director of a company sanctioned by the U.S. Department of Treasury, which referred to the company as a subordinate of North Korea’s Ministry of People’s Armed Forces. The defendants discussed new sanctions on North Korea and referenced several news articles detailing those sanctions published by U.S. and U.K. news organizations. They utilized shipping companies previously linked to the attempted sales of luxury goods to North Korea, and failed to seek the required licenses from the U.S. Government.
FBI’s Minneapolis field office is investigating the case. The case is being handled by the National Security Division and the U.S. Attorney's Office for the District of Columbia. Assistant U.S Attorney Zia M. Faruqui and National Security Division Trial Attorneys David Recker and Alexandra Hughes are litigating the case, with assistance from Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick.
Department of Justice Announces Charges of North Korean and Malaysia Nationals for Bank Fraud, Money Laundering and North Korea Sanctions ViolationsRead the Press Release
The Department of Justice announced a criminal complaint charging Ri Jong Chol, Ri Yu Gyong, North Korean nationals, and Gan Chee Lim, a Malaysia national. The three were charged with conspiracy to violate North Korean Sanctions Regulations and bank fraud, and conspiracy to launder funds. The defendants allegedly established and utilized front companies that transmitted U.S. dollar wires through the United States to purchase commodities on behalf of North Korean customers.
“Violations of U.S. sanctions on North Korea enrich the regime and allow it to continue to fund the destabilizing activities that the sanctions are meant to prevent,” said John C. Demers, Assistant Attorney General for National Security. “These defendants allegedly violated U.S. sanctions by lying to international financial institutions in order to dupe them into processing transactions in U.S. dollars which they would not otherwise have cleared. The Department of Justice will continue to investigate and prosecute violations of the North Korea sanctions so that one day that country may rejoin the community of nations.”
“The defendants knowingly and willfully circumvented sanctions designed to protect the U.S. financial system from abuse by individuals working on behalf of North Korea,” said Acting U.S. Attorney Sherwin. “We will continue to disrupt their actions and hold them accountable.”
“The FBI will not stand idle while North Koreans attempt to covertly access the U.S. financial system in violation of U.S. sanctions,” said Alan E. Kohler Jr, Assistant Director of the FBI's Counterintelligence Division. “The FBI will continue to protect the sanctity of the U.S. financial system.”
“Protecting our financial institutions from National Security focused money laundering is a top priority of our office,” said Michael F. Paul, Acting Special Agent in Charge of the FBI’s Minneapolis Division. “Our agents, financial analysts and intelligence analysts worked tirelessly on this international investigation, and their hard work paid off.”
U.S. sanctions and banking regulations prevented correspondent banks in the United States from processing wire transfers on behalf of customers located in North Korea. According to court documents, beginning in at least August 2015 and continuing until at least August 2016, the defendants deceived banks in the U.S. into processing transactions for North Korean customers. The defendants and their co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus.
Court documents note that Ri Jong Chol was the Deputy Director of a company sanctioned by the U.S. Department of Treasury, which referred to the company as a subordinate of North Korea’s Ministry of People’s Armed Forces. The defendants discussed new sanctions on North Korea and referenced several news articles detailing those sanctions published by U.S. and U.K. news organizations. They utilized shipping companies previously linked to the attempted sales of luxury goods to North Korea, and failed to seek the required licenses from the U.S. Government.
FBI’s Minneapolis field office is investigating the case. The case is being handled by the National Security Division and the U.S. Attorney's Office for the District of Columbia Assistant U.S Attorney Zia M. Faruqui and National Security Division Trial Attorneys David Recker and Alexandra Hughes are litigating the case, with assistance from Financial Intelligence Analyst Charlotte Coolidge, Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick.
Maryland Woman Pleads Guilty to Health Care FraudRead the Press Release
WASHINGTON – Charlotte Besumbu Etongwe, 45, of Beltsville, Maryland, pled guilty today in federal court to defrauding the D.C. Medicaid program out of more than a quarter million dollars.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin; Robert E. Bornstein, Acting Special Agent in Charge, FBI Washington Field Office, Criminal Division; Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services’ Office of Inspector General for the region that includes Washington, D.C.; and Daniel W. Lucas, Inspector General for the District of Columbia.
Etongwe pled guilty to health care fraud in U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 10 years in prison and potential financial penalties. Under federal sentencing guidelines, Etongwe faces a likely recommended sentence of between 18 and 24 months in prison and a fine of up to $75,000. The Honorable Tanya S. Chutkan took the plea and scheduled sentencing for December 7, 2020.
According to a statement of offense submitted to the Court, Etongwe worked as a personal care aide for eleven different home health agencies at various times between July 2014 and March 2019. The home health agencies employed Etongwe to assist D.C. Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Etongwe was supposed to document the care she provided to the Medicaid beneficiaries on timesheets and then submit the timesheets to the home health agencies, which would in turn bill Medicaid for the services that she rendered.
Between 2014 and 2019, Etongwe caused the D.C. Medicaid Program to issue payments totaling $369,970 for services that she did not render. As part of her fraud scheme, she submitted false timesheets to different home health agencies claiming that she provided 22 hours or more of personal care aide services. She also submitted false timesheets claiming to have provided personal care aide services to multiple Medicaid beneficiaries in overlapping hours.
The FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office are committed to investigating and prosecuting individuals who defraud the D.C. Medicaid program. Since October 2019, five former personal care aides have been sentenced in U.S. District Court for defrauding D.C. Medicaid. In June 2020, four additional individuals were charged in criminal complaints with health care fraud and health care false statements.
The government counts on the public for tips and assistance in helping stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS‑TIPS [(800) 447-8477].
Assistant U.S. Attorney Kondi Kleinman of the Fraud Section is prosecuting the case.
Seven Defendants Arrested and Charged in Conspiracy to Possess and Carry Firearms in Furtherance of Drug TraffickingRead the Press Release
WASHINGTON – Seven men have been indicted on federal narcotics and firearms charges as part of an ongoing investigation into drug and firearms trafficking in Southeast Washington, D.C.
The charges were announced by Acting U.S. Attorney Michael R. Sherwin, Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office Criminal Division, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Those indicted by the federal grand jury include: Terrance Phillips, 35, of Washington, D.C., Niko Culbreth, 28, of Washington, D.C.; Xavier Matthews, 20, of Washington, D.C.; Naseem Roach, 20, of Washington, D.C.; Victor Davis, 20, of Washington, D.C.; Trenton Robinson, 24, of District Heights, Maryland; Steven Phillips, Jr., 26, of Washington, D.C.
According to the indictment, the defendants were engaged in the distribution of marijuana, oxycodone, and codeine. Their drug distribution was centered on 10th Place Southeast and Wheeler Road Southeast, both of which connect Alabama Avenue Southeast and Mississippi Avenue Southeast in the Congress Heights neighborhood of the District of Columbia. The defendants also used, carried, and possessed firearms, to include privately made firearms (often referred to as “ghost guns”), to protect their illegal narcotics business, to include protecting their persons, their cash, their territory, and their narcotics and paraphernalia. The defendants purchased, or otherwise acquired, firearms—often utilizing controlled substances as currency—either from each other, or from other sources. The defendants also sold or traded firearms to each other, or to other sources, in order to acquire money to purchase drugs and/or other firearms.
The defendants are expected to make their initial appearances before the U.S. Magistrate Court today, September 3, 2020.
In addition to effecting their arrests, law enforcement agents from FBI, ATF, and MPD executed multiple search warrants throughout this investigation, yielding the seizure of one fully-automatic machine gun, six additional semi-automatic firearms, more than $19,500 in cash, approximately 200 grams of oxycodone, and narcotics paraphernalia.
“The U.S. Attorney’s Office is committed to investigating and prosecuting those who endanger the residents of the District of Columbia in pursuit of the illegal gun and drug trade.” said Acting U.S. Attorney Michael R. Sherwin.
“Violent drug traffickers prey on members of their own neighborhoods,” said Robert E. Bornstein, acting Special Agent in Charge of the FBI Washington Field Office Criminal Division. “This investigation and the resulting arrests demonstrate the strong partnership between the FBI and other Department of Justice law enforcement assets—including ATF, DEA, and the U.S. Marshals Service—and MPD to address violent crime within the District of Columbia. Together, we will continue to work tirelessly with our task force partners to remove dangerous narcotics and illicitly obtained firearms from circulation on the streets of our communities.”
“The arrests today of these seven individuals marks the continuation of a concerted effort by law enforcement to pursue these violent criminals,” said Ashan M. Benedict, Special Agent in Charge of ATF’s Washington Field Division. “Given the staggering number of crimes committed by these individuals, it was imperative that they be brought to justice. We thank our local and federal law enforcement partners for their exceptional assistance in apprehending these criminals.”
An indictment and its contents are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case was investigated by the FBI Washington Field Office's Cross Border Task Force, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Washington DC Metropolitan Police Department. Additional assistance in this matter was provided by the United States Marshals Service and the Metropolitan Washington Airports Authority. The task force is comprised of Special Agents from the Washington and the Baltimore Field Offices, task force officers from the Capital Region, and United States Park Police.
In announcing the indictment, Acting U.S. Attorney Sherwin, acting Special Agent in Charge Bornstein, Special Agent in Charge Benedict, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who are handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys James B. Nelson and Kaitlin A. Vaillancourt of the Federal Major Crimes Section, and Paralegal Specialists Jennifer Saralino, Rommel Pachoca, Kim Hall, Candace Battle, and Teesha Tobias as well as Legal Assistants Emma Atlas, Peter Gaboton, LaToya Wade, and Kate Abrey.
Man Charged for Assault on Metropolitan Police Officer Who Was in Proximity to Confrontation of Senator Rand PaulRead the Press Release
WASHINGTON – Brennen Sermon, 27, of Orlando, Florida, was charged by information on Friday, August 28, 2020, announced Acting United States Attorney Michael R. Sherwin. Sermon was in the vicinity of U.S. Senator Rand Paul when he was arrested by the Metropolitan Police Department for assault on a Metropolitan Police Department Officer.
Sermon was charged by information in D.C. Superior Court with one count of assault on a law enforcement officer in violation of D.C. Code § 22-405(b). He was arraigned on that charge and was released on his personal recognizance.
A Gerstein affidavit, based on an initial report from a responding officer, was filed along with the information. It states that at about 12:30 am on August 28, 2020, a Metropolitan Police Department officer was holding a police line at 14th and F Street NW when the defendant kicked his bicycle and fled. The officer pursued, and the defendant punched the officer in the left side of his face. The affidavit further reports that the officer sustained a laceration and severe swelling above his left eye, was transported to the hospital, and received stitches. A supplemental Gerstein affidavit filed after the initial report was prepared which clarified that a preliminary review of body worn camera showed that the individual kicking the bicycle and the individual throwing the punch appear to be wearing different color shirts. Therefore, the defendant is presently charged only with respect to the punching allegation.
Both the information and the Gerstein affidavits are formal accusations of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty. If convicted, Sermon faces a maximum sentence of 180 days in prison for each count, a fine of up to $1,000.
In announcing the charge, Acting U.S. Attorney Sherwin, commended the work of the Metropolitan Police Department in responding to these events.
Statement from the U.S. Attorney's Office for the District of Columbia in Response to Mayor Muriel Bowser's Press Conference TodayRead the Press Release
WASHINGTON – Over the past year, the United States Attorney’s Office for the District of Columbia has charged more than 9,500 cases, which include more than 2,500 felony cases. Specifically, with regard to the spike in protest-related violence throughout the District this summer, the Office aggressively charged 121 criminal cases from May 28, 2020 to August 1, 2020. These cases included assault and battery on local police officers and federal agents, arson cases, and the destruction of both private and government property. Most recently, over this past weekend alone, the Office brought criminal charges against five individuals linked to protest-related violence – two of those cases involved assaults on police officers.
Mayor Muriel Bowser’s public statement today related to the United States Attorney’s Office reluctant to prosecute “68 outstanding arrest warrants” is patently false and serves no purpose other than to pass blame and foster innuendo. Since the protests began, this Office has never turned down a single case for prosecution in which there was sufficient evidence to support probable cause.
The Office remains committed to keeping the community safe, but also holds true to the rule of law and constitutional protections for all citizens.
Company Pleads Guilty to Money Laundering Violation as Part of Scheme to Circumvent North Korean Sanctions and Deceive Banks, Agrees to Pay Forfeiture and FineRead the Press Release
WASHINGTON – Yang Ban Corporation, a company established in the British Virgin Islands in 2014 that operated in South East Asia pleaded guilty today to conspiring to launder monetary instruments in connection with evading sanctions on North Korea and deceiving correspondent banks into processing U.S. dollar transactions. The company will pay a financial penalty totaling $673,714.04.
In pleading guilty, Yang Ban admitted and accepted responsibility for its criminal conduct. Yang Ban also agreed to implement rigorous internal controls and to cooperate fully with the Justice Department, including by reporting any criminal conduct by an employee.
“Evasion of the United States sanctions laws allows North Korea to continue its dangerous and persistent proliferation activities and to develop weapons of mass destruction,” said John C. Demers, Assistant Attorney General for National Security. “This defendant utilized dual invoicing practices and provided false statements to conceal the ultimate destination of commodities it purchased for North Korea, duping U.S. correspondent banks into processing U.S. dollar transactions that they would not otherwise have authorized. The disruption of this activity demonstrates that the Justice Department will leverage its significant investigative assets to uncover and punish North Korean efforts to engage in fraud, money laundering, and sanctions violations all to bolster its oppressive regime.”
“Yang Ban undermined the integrity of our financial system and harmed our national security by circumventing banks’ sanction and anti-money laundering filters as part of a scheme to launder funds for North Korean customers,” said Acting U.S. Attorney Sherwin. “Today’s action demonstrates this office’s commitment to find and punish companies, no matter where they are located, whose actions illegally facilitate North Korean sanctions evasion.”
“Once again, the Department of Justice has disrupted an effort by North Korea to covertly access the U.S. financial system in violation of U.S. sanctions,” said Alan E. Kohler Jr, Assistant Director of the FBI's Counterintelligence Division. “The FBI will aggressively investigate companies established for the sole purpose of evading U.S. sanctions on North Korea. The sanctity of the U.S. financial system will not be compromised.”
“Companies making deliberate efforts to launder money through the United States will be shut down,” said Michael F. Paul, Acting Special Agent in Charge of the FBI’s Minneapolis Division. “I commend the hard work of the agents and analysts who investigated this case.”
“Homeland Security Investigations is committed to working with our law enforcement partners to protect the integrity of the U.S. financial system, leveraging investigative assets in our combined efforts to expose the North Korean regime’s attempt to evade U.S. sanctions,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.
U.S. sanctions and banking regulations prevented correspondent banks in the United States from processing wire transfers on behalf of customers located in North Korea. According to admissions and court documents, beginning in at least February 2017 and continuing until at least May 2018, Yang Ban deceived banks in the U.S. into processing transactions for North Korean customers of Yang Ban. Yang Ban and its co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus. Yang Ban specifically admitted to conspiring with other, including SINSMS, a subsequently designated company, to falsify shipping records. For example, in May 2017, a North Korean co-conspirator notified Yang Ban and its co-conspirators of a company which would ship to Nampo, North Korea, but would require two separate sets of shipping documents. One set of documents would be free of any indication that the shipment was going to North Korea, and a second set of documents would contain the North Korea details for internal record keeping.
Yang Ban admitted that it was aware that it needed to distance itself from North Korean front companies in order to protect it from additional scrutiny from banks that process U.S. dollar transactions. For example, in September 2016, Yang Ban caused an employee to inform a North Korean customer that Yang Ban was unable to use a related company for further business with North Korea due to bank restrictions on such transactions
The investigation was conducted by the FBI’s Minneapolis Field Office with support from HSI’s Washington D.C. Office. Assistant U.S. Attorney Zia M. Faruqui and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick, and Records Examiner Angela De Falco.
Company Pleads Guilty to Money Laundering Violation as Part of Scheme to Circumvent North Korean Sanctions and Deceive Banks, Agrees to Pay Forfeiture and FineRead the Press Release
Yang Ban Corporation, a company established in the British Virgin Islands in 2014 that operated in South East Asia pleaded guilty today to conspiring to launder monetary instruments in connection with evading sanctions on North Korea and deceiving correspondent banks into processing U.S. dollar transactions. The company will pay a financial penalty totaling $673,714.04.
In pleading guilty, Yang Ban admitted and accepted responsibility for its criminal conduct. Yang Ban also agreed to implement rigorous internal controls and to cooperate fully with the Justice Department, including by reporting any criminal conduct by an employee.
“Evasion of U.S. sanctions laws allows North Korea to continue its dangerous and persistent proliferation activities and to develop weapons of mass destruction,” said John C. Demers, Assistant Attorney General for National Security. “This defendant utilized dual invoicing practices and provided false statements to conceal the ultimate destination of commodities it purchased for North Korea, duping U.S. correspondent banks into processing U.S. dollar transactions that they would not otherwise have authorized. The disruption of this activity demonstrates that the Justice Department will leverage its significant investigative assets to uncover and punish North Korean efforts to engage in fraud, money laundering, and sanctions violations all to bolster its oppressive regime.”
“Yang Ban undermined the integrity of our financial system and harmed our national security by circumventing banks’ sanction and anti-money laundering filters as part of a scheme to launder funds for North Korean customers,” said Acting U.S. Attorney Sherwin for the District of Columbia. “Today’s action demonstrates this office’s commitment to find and punish companies, no matter where they are located, whose actions illegally facilitate North Korean sanctions evasion.”
“Once again, the Department of Justice has disrupted an effort by North Korea to covertly access the U.S. financial system in violation of U.S. sanctions,” said Alan E. Kohler Jr, Assistant Director of the FBI's Counterintelligence Division. “The FBI will aggressively investigate companies established for the sole purpose of evading U.S. sanctions on North Korea. The sanctity of the U.S. financial system will not be compromised.”
“Companies making deliberate efforts to launder money through the United States will be shut down,” said Michael F. Paul, Acting Special Agent in Charge of the FBI’s Minneapolis Division. “I commend the hard work of the agents and analysts who investigated this case.”
“Homeland Security Investigations (HSI) is committed to working with our law enforcement partners to protect the integrity of the U.S. financial system, leveraging investigative assets in our combined efforts to expose the North Korean regime’s attempt to evade U.S. sanctions,” said Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) HSI Washington, D.C.
U.S. sanctions and banking regulations prevented correspondent banks in the United States from processing wire transfers on behalf of customers located in North Korea. According to admissions and court documents, beginning in at least February 2017 and continuing until at least May 2018, Yang Ban deceived banks in the U.S. into processing transactions for North Korean customers of Yang Ban. Yang Ban and its co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus. Yang Ban specifically admitted to conspiring with other, including SINSMS, a subsequently designated company, to falsify shipping records. For example, in May 2017, a North Korean co-conspirator notified Yang Ban and its co-conspirators of a company which would ship to Nampo, North Korea, but would require two separate sets of shipping documents. One set of documents would be free of any indication that the shipment was going to North Korea, and a second set of documents would contain the North Korea details for internal record keeping.
Yang Ban admitted that it was aware that it needed to distance itself from North Korean front companies in order to protect it from additional scrutiny from banks that process U.S. dollar transactions. For example, in September 2016, Yang Ban caused an employee to inform a North Korean customer that Yang Ban was unable to use a related company for further business with North Korea due to bank restrictions on such transactions
The investigation was conducted by the FBI’s Minneapolis Field Office with support from HSI’s Washington D.C. Office. Assistant U.S. Attorney Zia M. Faruqui and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick, and Records Examiner Angela De Falco.
U.S. Seizure of Three Websites Used by Iranian Front Company that Was Shipping Fuel on Four Tankers to VenezuelaRead the Press Release
WASHINGTON - The Justice Department today announced the seizure of three websites used by three front companies: Mobin International, Sohar Fuel, and Oman Fuel, that arranged a multimillion dollar fuel shipment by the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, that was bound for Venezuela.
On July 2, 2020, the United States filed a complaint seeking to forfeit all petroleum-product cargo aboard four foreign-flagged oil tankers, including the M/T Bella with international maritime organization (IMO) number 9208124, the M/T Bering with IMO number 9149225, the M/T Pandi with IMO number 9105073, and the M/T Luna with IMO number 9208100. A seizure order for the cargo from all four vessels was issued by U.S. District Court Judge Boasberg of the U.S. District Court for the District of Columbia.
On August 14, 2020, the United States announced that it successfully executed the seizure order and confiscated the cargo from all four vessels, totaling approximately 1.116 million barrels of petroleum. With the assistance of foreign partners, this seized property is now in U.S. custody.
Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/) after the conclusion of the case.
The forfeiture complaint alleged how Mohammad Madanipour used a web of front companies, including Mobin International to perpetrate this scheme. The websites for Mobin International and related front companies, Sohar Fuel, and Oman Fuel, now display the following splash page noting control by the U.S. government:
Pursuant to 18 U.S.C. § 2232, interfering with lawful execution of the United States seizure order may subject a party to criminal penalties for interfering with the jurisdiction of the U.S. District Court for District of Columbia over the petroleum cargo.
A warrant for arrest and civil forfeiture complaint are merely allegations. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
HSI’s Colorado Springs and FBI’s Minneapolis field office are investigating the case. The case is being handled by the National Security Division and the U.S. Attorney's Office for the District of Columbia. The Money Laundering and Asset Recovery Section is managing the seizure and forfeiture process. Assistant U.S Attorneys Zia M. Faruqui, Brian Hudak, Stuart Allen, and Jessi Brooks, and National Security Division Trial Attorney David Lim are litigating the case, with assistance from Paralegal Specialists Elizabeth Swienc, Legal Assistant Jessica McCormick, and Records Examiner Angela De Falco.