District of Columbia
Press releases recorded for this federal judicial district.
U.S. Seizure of Three Websites Used by Iranian Front Company that Was Shipping Fuel on Four Tankers to VenezuelaRead the Press Release
The Justice Department today announced the seizure of three websites used by three front companies: Mobin International, Sohar Fuel, and Oman Fuel, who 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 Aug. 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.
District Man Sentenced to 102 Months in Federal Prison for Firearm Trafficking Conspiracy and Shooting of a JuvenileRead the Press Release
WASHINGTON – Jonathan Webb, 22, of Washington, D.C., was sentenced today to 102 months in federal prison in connection with a long term firearm trafficking investigation and a shooting in Southeast Washington, D.C. that left one juvenile severely injured announced Acting U.S. Attorney Michael R. Sherwin, Ashan 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),
On July 10, 2019, Webb pleaded guilty to Conspiracy to Engage in the Trafficking of Firearms and Aggravated Assault While Armed before United States District Court Judge Amit Mehta.
Today’s sentence is the result of an investigation by ATF, MPD, and the Virginia State Police into a firearms trafficking ring based out of Washington, D.C. in which members of the conspiracy were traveling to Virginia to illegally purchase firearms before filing-off the serial numbers and reselling them in the District of Columbia and Maryland.
According to the court documents, on June 27, 2018, Webb traveled with two co-conspirators to a firearms store in Virginia in order to acquire a firearm. Webb entered the firearm store, inspected firearms, and soon thereafter, handed money to a co-conspirator who agreed to purchase the firearm on his behalf. After purchasing the firearm, the three conspirators traveled back to Washington, D.C. where they filed-off the serial number for the firearm and Webb took possession of the firearm. Webb’s co-conspirators purchased approximately 31 firearms during the course of this conspiracy. Webb assisted the co-conspirators in finding buyers for some of their firearms. On at least one occasion, Webb and other members of the conspiracy posed for photographs while holding firearms and filmed a music video using firearms purchased during the course of this conspiracy.
In court papers referencing the Aggravated Assault While Armed, on October 8, 2018, Webb saw a juvenile walking on the sidewalk down the 3200 block of Stanton Road SE in Washington, D.C. As the juvenile continued walking further down Stanton Road, Webb emerged from between two houses, immediately drew his firearm and fired multiple bullets at the juvenile, striking him multiple times. As a result of the shooting, the juvenile suffered a pelvic fracture, a left arm fracture, right thigh fracture, and a spinal injury that caused paralysis.
This case was investigated by ATF and MPD with the assistance of the Virginia State Police. It was prosecuted by Assistant U.S. Attorneys Kevin L. Rosenberg of the Violent Crime and Narcotics Trafficking Section and Emile Thompson of the Homicide Section of the U.S. Attorney’s Office for the District of Columbia.
United States Files Complaint to Forfeit 280 Cryptocurrency Accounts Tied to Hacks of Two Exchanges by North Korean ActorsRead the Press Release
The Justice Department today filed a civil forfeiture complaint detailing two hacks of virtual currency exchanges by North Korean actors. These actors stole millions of dollars’ worth of cryptocurrency and ultimately laundered the funds through Chinese over-the-counter (OTC) cryptocurrency traders. The complaint follows related criminal and civil actions announced in March 2020 pertaining to the theft of $250 million in cryptocurrency through other exchange hacks by North Korean actors.
“Today’s action publicly exposes the ongoing connections between North Korea’s cyber-hacking program and a Chinese cryptocurrency money laundering network,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This case underscores the department’s ongoing commitment to counter the threat presented by North Korean cyber hackers by exposing their criminal networks and tracing and seizing their ill-gotten gains.”
“Today, prosecutors and investigators have once again exemplified our commitment to attribute national security cyber threats, to impose costs on these actors, and bring some measure of relief to victims of malicious cyber activities,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division. “Although North Korea is unlikely to stop trying to pillage the international financial sector to fund a failed economic and political regime, actions like those today send a powerful message to the private sector and foreign governments regarding the benefits of working with us to counter this threat.”
“As part of our commitment to safeguarding national security, this office has been at the forefront of targeting North Korea’s criminal attacks on the financial system,” said Acting U.S. Attorney Michael R. Sherwin of the District of Columbia. “This complaint reveals the incredible skill of our Cryptocurrency Strike Force in tracing and seizing virtual currency, which criminals previously thought to be impossible.”
“Despite the highly sophisticated laundering techniques used, IRS-CI’s Cybercrimes Unit was able to successfully trace stolen funds directly back to North Korean actors,” said Don Fort, Chief of IRS Criminal Investigation (IRS-CI). “IRS-CI will continue to collaborate with its law enforcement partners to combat foreign and domestic operations that threaten the United States financial system and national security.”
“FBI efforts to stop the flow of threat finance around the world are central to our strategy to address transnational crime,” said Assistant Director Calvin A. Shivers of the FBI’s Criminal Investigative Division. “This strategy is strengthened by the skills and expertise we continue to develop in virtual asset investigations such as this, which enable the FBI and our partners to identify and seize illicit assets.”
“As North Korea becomes bolder and more desperate in their efforts to steal money using sophisticated money laundering techniques, HSI will continue to apply pressure by exposing their fraudulent transactions,” said Special Agent in Charge Steven Cagen of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Denver. “We are committed to safeguarding the interest of the United States against the criminal elements in North Korea to protect the integrity of the cyber financial system.”
“At U.S. Cyber Command, we leverage a persistent engagement approach to challenge our adversaries’ actions in cyberspace,” said Brigadier General Joe Hartman, Commander of the Cyber National Mission Force. “This includes disrupting North Korean efforts to illicitly generate revenue. Department of Defense cyber operations do not occur in isolation. Persistent engagement includes acting through cyber-enabled operations as much as it does sharing information with our interagency partners to do the same.”
“Today’s complaint demonstrates that North Korean actors cannot hide their crimes within the anonymity of the internet. International cryptocurrency laundering schemes undermine the integrity of our financial systems at a global level, and we will use every tool in our arsenal to investigate and disrupt these crimes,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to impose risks and consequences on criminals who seek to undermine our national security interests.”
The forfeiture complaint filed today details two related hacks of virtual currency exchanges.
As alleged in the complaint, in July 2019, a virtual currency exchange was hacked by an actor tied to North Korea. The hacker allegedly stole over $272,000 worth of alternative cryptocurrencies and tokens, including Proton Tokens, PlayGame tokens, and IHT Real Estate Protocol tokens. Over the subsequent months, the funds were laundered through several intermediary addresses and other virtual currency exchanges. In many instances, the actor converted the cryptocurrency into BTC, Tether, or other forms of cryptocurrency – a process known as “chain hopping” – in order to obfuscate the transaction path. As detailed in the pleadings, law enforcement was nonetheless able to trace the funds, despite the sophisticated laundering techniques used.
As also alleged in the pleadings, in September 2019, a U.S.-based company was hacked in a related incident. The North Korea-associated hacker gained access to the company’s virtual currency wallets, funds held by the company on other platforms, and funds held by the company’s partners. The hacker stole nearly $2.5 million and laundered it through over 100 accounts at another virtual currency exchange.
The funds from both of the above hacks, as well as hacks previously detailed in a March 2020 forfeiture action (1:20-cv-00606-TJK), were all allegedly laundered by the same group of Chinese OTC actors. The infrastructure and communication accounts used to further the intrusions and fund transfers were also tied to North Korea.
The claims made in this complaint are only allegations and do not constitute a determination of liability. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
The investigation was conducted by IRS-CI’s Washington, D.C. Cyber Crimes Unit, the FBI’s Chicago and Atlanta Field Offices, and HSI’s Colorado Springs Office with additional support from the FBI’s San Francisco Field Office. Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Zia M. Faruqui, Jessi Camille Brooks, and Christopher Brown are prosecuting the case, with assistance from Supervisory Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick.
Support to this effort was provided by FBI’s San Francisco Field Office and the U.S. Attorney’s Office of the Northern District of Georgia.
Support to this effort was also provided by United States Cyber Command. More information about the command’s efforts to combat North Korean and other malware activity can be found on Twitter and VirusTotal.
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 Files Complaint to Forfeit 280 Cryptocurrency Accounts Tied to Hacks of Two Exchanges by North Korean ActorsRead the Press Release
WASHINGTON – The Justice Department today filed a civil forfeiture complaint detailing two hacks of virtual currency exchanges by North Korean actors. These actors stole millions of dollars’ worth of cryptocurrency and ultimately laundered the funds through Chinese over-the-counter (OTC) cryptocurrency traders. The complaint follows related criminal and civil actions announced in March 2020 pertaining to the theft of $250 million in cryptocurrency through other exchange hacks by North Korean actors.
“As part of our commitment to safeguarding national security, this office has been at the forefront of targeting North Korea’s criminal attacks on the financial system,” said Acting U.S. Attorney Michael R. Sherwin of the District of Columbia. “This complaint reveals the incredible skill of our Cryptocurrency Strike Force in tracing and seizing virtual currency, which criminals previously thought to be impossible.”
“Today’s action publicly exposes the ongoing connections between North Korea’s cyber-hacking program and a Chinese cryptocurrency money laundering network,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “This case underscores the department’s ongoing commitment to counter the threat presented by North Korean cyber hackers by exposing their criminal networks and tracing and seizing their ill-gotten gains.”
“Today, prosecutors and investigators have once again exemplified our commitment to attribute national security cyber threats, to impose costs on these actors, and bring some measure of relief to victims of malicious cyber activities,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division. “Although North Korea is unlikely to stop trying to pillage the international financial sector to fund a failed economic and political regime, actions like those today send a powerful message to the private sector and foreign governments regarding the benefits of working with us to counter this threat.”
“Despite the highly sophisticated laundering techniques used, IRS-CI’s Cybercrimes Unit was able to successfully trace stolen funds directly back to North Korean actors,” said Don Fort, Chief of IRS Criminal Investigation (IRS-CI). “IRS-CI will continue to collaborate with its law enforcement partners to combat foreign and domestic operations that threaten the United States financial system and national security.”
“FBI efforts to stop the flow of threat finance around the world are central to our strategy to address transnational crime,” said Assistant Director Calvin A. Shivers of the FBI’s Criminal Investigative Division. “This strategy is strengthened by the skills and expertise we continue to develop in virtual asset investigations such as this, which enable the FBI and our partners to identify and seize illicit assets.”
“As North Korea becomes bolder and more desperate in their efforts to steal money using sophisticated money laundering techniques, HSI will continue to apply pressure by exposing their fraudulent transactions,” said Special Agent in Charge Steven Cagen of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Denver. “We are committed to safeguarding the interest of the United States against the criminal elements in North Korea to protect the integrity of the cyber financial system.”
“At U.S. Cyber Command, we leverage a persistent engagement approach to challenge our adversaries’ actions in cyberspace,” said Brigadier General Joe Hartman, Commander of the Cyber National Mission Force. “This includes disrupting North Korean efforts to illicitly generate revenue. Department of Defense cyber operations do not occur in isolation. Persistent engagement includes acting through cyber-enabled operations as much as it does sharing information with our interagency partners to do the same.”
"Today’s complaint demonstrates that North Korean actors cannot hide their crimes within the anonymity of the internet. International cryptocurrency laundering schemes undermine the integrity of our financial systems at a global level, and we will use every tool in our arsenal to investigate and disrupt these crimes," said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “The FBI will continue to impose risks and consequences on criminals who seek to undermine our national security interests.”
The forfeiture complaint filed today details two related hacks of virtual currency exchanges.
As alleged in the complaint, in July 2019, a virtual currency exchange was hacked by an actor tied to North Korea. The hacker allegedly stole over $272,000 worth of alternative cryptocurrencies and tokens, including Proton Tokens, PlayGame tokens, and IHT Real Estate Protocol tokens. Over the subsequent months, the funds were laundered through several intermediary addresses and other virtual currency exchanges. In many instances, the actor converted the cryptocurrency into BTC, Tether, or other forms of cryptocurrency – a process known as “chain hopping” – in order to obfuscate the transaction path. As detailed in the pleadings, law enforcement was nonetheless able to trace the funds, despite the sophisticated laundering techniques used.
As also alleged in the pleadings, in September 2019, a U.S.-based company was hacked in a related incident. The North Korea-associated hacker gained access to the company’s virtual currency wallets, funds held by the company on other platforms, and funds held by the company’s partners. The hacker stole nearly $2.5 million and laundered it through over 100 accounts at another virtual currency exchange.
The funds from both of the above hacks, as well as hacks previously detailed in a March 2020 forfeiture action (1:20-cv-00606-TJK), were all allegedly laundered by the same group of Chinese OTC actors. The infrastructure and communication accounts used to further the intrusions and fund transfers were also tied to North Korea.
The claims made in this complaint are only allegations and do not constitute a determination of liability. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
The investigation was conducted by IRS-CI’s Washington, D.C. Cyber Crimes Unit, the FBI’s Chicago and Atlanta Field Offices, and HSI’s Colorado Springs Office with additional support from the FBI’s San Francisco Field Office. Assistant U.S. Attorneys Zia M. Faruqui, Jessi Camille Brooks, and Christopher Brown, with assistance from Supervisory Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick, Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Support to this effort was provided by FBI’s San Francisco Field Office and the U.S. Attorney’s Office of the Northern District of Georgia.
Support to this effort was also provided by United States Cyber Command. More information about the command’s efforts to combat North Korean and other malware activity can be found on Twitter and VirusTotal.
دو شهروند ایالات متحده و یک تبعه پاکستان متهم به انتقال دلارامریکا به ایران شدندRead the Press Release
فدرال مربوط به ایران متهم شدند . مزمل زئیدی، ۳۵ ساله، که شهروند ایالات متحده است و در قم، ایران اقامت دارد، به جرم فعالیت در ایالات متحده بعنوان عامل دولت ایران بدون اطلاع رسانی اولیه به دادستان کل ایالات متحده، متهم شد. زئیدی، عاصم نقوی، ۳۵ ساله، که شهروند ایالات متحده است و در هوستون، تگزاس زندگی می کند ، و علی چولا، ۳۶ ساله، که یک تبعه پاکستان است و در قم، ایران زندگی می کند، هرسه متهم به نقض قانون قدرت های اقتصادی در موارد اضطراری بین المللی شده اند. در این شکایت نامه ذکر شده که اساس هر دو جرم، فعالیت متهمان به نمایندگی از طرف رهبر ایران، برای انتقال دلار از ایالات متحده به ایران در سالهای ۱۳۹۷ و ۱۳۹۸، می باشد. زئیدی و نقوی، هردو در روز ۱۸ آگست ۲۰۲۰ در هیوستون دستگیر شدند.
جان سی دمرس، دستیار دادستان کل برای امنیت ملی گفت: "برای مبارزه با توانایی ایران در پشتیبانی ازتروریسم بین المللی و بی ثبات کردن خاورمیانه از طریق داشتن ارتش در یمن، امر مهم بازداشتن آن کشور از جمع آوری دلار آمریکا است. زئیدی، نقوی، و چولا متهمند که به ماموریت از جانب رهبر ایران، پول جمع آوری شده در آمریکا را بطور غیرقانونی از کانالهای مختلف به دولت ایران رسانیده اند. علنی شدن این اتهامات امروز باعث افشاشدن و توقف این طرح غیرقانونی شده است. وزارت دادگستری ایالات متحده و بخش امنیت ملی اش متعهدند که افرادی را که در شبکه های مخفی در ایالات متحده فعالیت دارند تا با نقض قوانین ایالات متحده، پشتیبانی و پول برای کشورهای خارجی متخاصم مثل ایران فراهم کنند، تحت تعقیب قرار دهند."
مایکل آر شروین، دادستان موقت ایالات متحده در دی سی گفت: "این قضیه از چند نظر حائزاهمیت است، از جمله، و بر اساس این شکایت نامه، رابطه عملیاتی قابل ملاحظه متهمان با سپاه پاسداران انقلاب اسلامی ایران است که در طول چند سال گذشته فعالیتهای تروریستی متعددی در سراسر جهان داشته است. برای این گونه عملیات ها پول اهمیت ویژه ای دارد و متهمان نقش مهمی در فراهم کردن این عامل اساسی داشتند."
جیمز ا داسون، دستیار موقت رئیس اف بی آی در دفتر واشنگتن دی سی گفت: " اتهاماتی که امروز علنی شد نشان دهنده تعهد ما به متوقف کردن فعالیت ماموران دولتهای خارجی متخاصم در ایالات متحده و سلب آزادی آنها برای انجام عملیات در اینجا است. علاوه بر نقض قانون ثبت نام ماموران دولتهای خارجی، زئیدی متهم است که با همدستانش از طرف دولت ایران که حامی تروریسم است، به صورت علنی دلار تهیه می کرده که اهداف ایران را به پیش ببرد و این نقض قانون قدرت های اقتصادی در موارد اضطراری بین المللی است. این قانون بخاطر متوقف کردن دولت های خارجی متخاصم در سوء استفاده از سیستم مالی ایالات متحده در راستای هدف بی ثبات کردن جهان، بوجود آمد."
پری ک ترنر، مامور ویژه مسئول در دفتر اف بی آی در هیوستون گفت: "دستگیری های امروزنتیجه مستقیم فعالیتهای بی وقفه گروه تحقیقاتی ضد تروریسم اف بی آی در هیوستون است که با همکاری چند دفتر دیگر اف بی آی و دیگر همکاران در جامعه اطلاعاتی ، جلوی کار کسانی را که برای رژیمهای تروریستی پول فراهم می کنند، می گیرند و آزادیشان را از آنها سلب می کنند."
همانطورکه دراستشهاد نامه مربوط به این اعلامیه قضایی ذکر شده، اتهام زئیدی، تمایل او به همکاری داوطلبانه با رهبر ایران برای خدمت به "جمهوری اسلامی درامور سیاسی- اجتماعی و زمینه های دیگر" در حوالی تیرماه ۱۳۹۴ می باشد. این شکایت نامه میگوید که در حوالی خردادماه ۱۳۹۷ زئیدی به سوریه رفت و با هواپیمای مسلح ارتش یا اطلاعات ایران به یک منطقه فعال جنگی پرواز کرد. این شکایت نامه همچنین می گوید که زئیدی به پایگاههای سپاه پاسداران انقلاب اسلامی ایران در مناطق جنگی دسترسی داشته است. سپاه پاسداران انقلاب اسلامی ایران در تاریخ ۱۵ فروردین ۱۳۹۸ توسط ایالات متحده بعنوان یک سازمان تروریستی شناخته شد. سرلشگر پاسدار قاسم سلیمانی تا ۱۳ دیماه ۱۳۹۸ که در حمله هوایی ایالات متحده کشته شد، فرمانده نیروی قدس بود.
براساس این شکایت نامه، درآذرماه ۱۳۹۷، زئیدی و دیگراعضای سازمان رسانه ای "نبض اسلامی" مثل چولا، از رهبر اعظم ایران اجازه جمع آوری خمس، که یک مالیات دینی است، را گرفتند تا نیمی از آنرا به یمن بفرستند. تاریخ اجازه نامه خرج پول خمس در یمن از جانب رهبر ایران و یک آیت الله دیگر، ۱۱ اسفند ۱۳۹۸ تخمین زده شده است.
دراین شکایت نامه آمده که درحوالی تیرماه ۱۳۹۸، نبض اسلامی ویدیویی برای جمع آوری بخشش ها در ایالات متحده و دیگر ممالک غربی و فرستادنشان به یمن از طریق ایران، پخش کرد. این شکایت نامه ادعا میکند که چولا در جواب نگرانی بخشش کنندگان در مورد چگونگی رساندن این پول به ایران به آنها گفته است که در این باره نمی شود در ایمیل صحبت کرد. این شکایت نامه ادعا میکند که چولا بخصوص دلار آمریکایی درخواست کرده و گفته است که نبض اسلامی قادر به قبول وجوه الکترونیکی نیست چراکه نبض اسلامی یک خیریه ثبت شده نمیباشد.
براساس این شکایت نامه، پس از تحریم رهبر ایران توسط ایالات متحده در خرداد ماه ۱۳۹۸، زئیدی به نقوی گفت که این تحریم "ضربه مستقیمی به خمس" است. در ادامه این شکایت نامه آمده است که در تابستان و پائیز ۱۳۹۸، زئیدی و نقوی همچنان به جمع آوری دلار در آمریکا و فرستادنش به ایران گاهی از طریق عراق، برای عدم نیاز به اعلام مبلغ دلار، مشغول بودند. پس ازاینکه یک گروه مسافری ۲۵ نفره که در مهرماه ۱۳۹۸ برای زئیدی و نقوی پول به ایران می بردند، در فرودگاه بازرسی شدند، زئیدی و نقوی در این باره صحبت کردند و نقوی امیدوار بود که هیچکدام از مسافران در هنگام بازگشت مبلغ همراهشان را به مسئولان لو ندهند.
این شکایت نامه می گوید که زئیدی در طول اقامت اخیرش در خردادماه ۱۳۹۹ در ایالات متحده، از خود رفتاری نشان داده که گویای این است که از یک دولت خارجی یا نیروی امنیتی خارجی مانند دولت ایران یا سپاه پاسداران انقلاب اسلامی ایران، تعلیم گرفته است. براساس این شکایت نامه، آن رفتارشامل اکراه داشتن برای صحبت کردن در مورد مطالب مهم پای تلفن یا حتی هرگونه برنامه کاربردی رمزنگاری شده، میباشد چون زئیدی می گوید که اینکار میتواند خطرناک باشد.
جرائم ذکرشده دراین شکایت نامه در حد ادعا هستند، و هر متهمی بیگناه فرض شده تا زمانی که گناهکاری اش بدون هیچ شک معقولی ثابت گردد. حداکثر مجازات نقض بخش ۹۵۱ از عنوان ۱۸ قانون قضایی ایالات متحده ده سال، و حداکثر مجازات نقض قانون قدرت های اقتصادی در موارد اضطراری بین المللی بیست سال است. برطبق قانون، حداکثر مجازات را کنگره تائین می کند و ذکرش دراینجا تنها برای اطلاع آمده است.
این تحقیقات توسط دفاتر اف بی آی در واشنگتن دی سی و هیوستون انجام گرفته است. دایره امنیت ملی دفتردادستانی ایالات متحده در واشنگتن دی سی مسئولیت این تعقیب قانونی را به همراه دوایر ضد جاسوسی، کنترل صادرات، و ضد تروریستی بخش امنیت ملی وزارت دادگستری، بعهده دارد.
Two U.S. Citizens, One Pakistani National Charged with Moving U.S. Currency to IranRead the Press Release
WASHINGTON – A complaint was unsealed today, charging two U.S. citizens with federal crimes related to Iran. Muzzamil Zaidi, 35, a U.S. citizen who resides in Qom, Iran, was charged with acting in the United States as an agent of the government of Iran without first notifying the Attorney General. Zaidi, Asim Naqvi, 35, a U.S. citizen who lives in Houston, Texas, and Ali Chawla, 36, a Pakistani national who lives in Qom, Iran, were all charged with violations of the International Emergency Economic Powers Act. The complaint alleges that both charges stem from the defendants’ campaign to transport U.S. currency from the United States to Iran on behalf of the Supreme Leader of Iran in 2018 and 2019. Both Zaidi and Naqvi were arrested in Houston on August 18, 2020.
“Disrupting Iran’s ability to raise U.S. dollars is key to combatting its ability to sponsor international terrorism and destabilize the Middle East, including through its military presence in Yemen,” said Assistant Attorney General for National Security John C. Demers. “Zaidi, Naqvi, and Chawla allegedly raised money in the United States on behalf of Iran’s Supreme Leader, and illegally channeled these dollars to the government of Iran. As a result of the charges unsealed today, their unlawful scheme has been exposed and brought to an end. The U.S. Department of Justice and its National Security Division are committed to holding accountable individuals who operate covert networks within the United States in order to provide support and funds to hostile foreign governments like Iran in violation of U.S. law.”
“This case is significant on many levels,” said Michael R. Sherwin, Acting United States Attorney for the District of Columbia. “To begin, as alleged in the criminal complaint, the defendants have considerable operational links to the IRGC, which has conducted multiple terrorist operations throughout the world over the past several years. The life-blood of these terrorist operation is cash – and the defendants played a key role in facilitating that critical component.”
“The charges unsealed today demonstrate our commitment to preventing agents of hostile foreign governments from having access and freedom to operate within the borders of the United States,” said James A. Dawson, Acting Assistant Director in Charge of the FBI’s Washington Field Office. “In addition to violating the Foreign Agents Registration Act, Zaidi allegedly operated with his co-conspirators at the behest of the Iranian government—a known sponsor of terrorism—to overtly solicit U.S. money to further Iranian causes, in violation of the International Emergency Economic Powers Act (IEEPA). This is why IEEPA was established: to prevent hostile foreign governments from leveraging the U.S. financial system in furtherance of their global destabilizing endeavors.”
"The arrests in this case are the direct result of the undeterred efforts of the FBI Houston Counterterrorism investigative team," said FBI Houston Field Office Special Agent in Charge, Perrye K. Turner. "By engaging in around the clock collaboration with multiple Field Offices and Intelligence Community partners, our agents ensure that those who send money to terrorist regimes will ultimately be held accountable and lose their freedom."
As alleged in the affidavit in support of a criminal complaint, Zaidi offered his services to the Supreme Leader of Iran in or around July 2015 and said that he could serve the “Islamic Republic in the socio-political or another field.” The complaint alleges that Zaidi traveled to Syria in or around June 2018 and that, while there, flew to an active war zone in an armed Iranian military or intelligence aircraft. The complaint alleges that Zaidi had access to bases under the command of the Iran’s Islamic Revolutionary Guards Corps (IRGC) while in that war zone, including a “Sepah Qods” (IRGC Qods Force) base. The IRGC was designated as a terrorist organization by the U.S. on April 4, 2019. Qassem Soleimani, a major general in the IRGC, was commander of the Qods Force until he was killed in a U.S. airstrike on Jan. 3, 2020.
According to the complaint, in December 2018, Zaidi and other members of an organization known as “Islamic Pulse,” including Chawla, received the permission of the Supreme Leader of Iran to collect khums, a religious tax, on the Supreme Leader’s behalf, and to send half of that money to Yemen. The complaint alleges that permission was formalized on or about Feb. 28, 2019, in a letter confirming the permission of the Supreme Leader of Iran and another Ayatollah to spend khums money in Yemen.
Based on the complaint, in or around July 2019, Islamic Pulse released a video soliciting donations for its purported Yemen campaign that showed money moving from the United States and other Western countries to Yemen through Iran. The complaint alleges that Chawla replied to donors’ concerns about how the campaign was able to get money into Yemen by stating that the matter could not be discussed over email. The complaint further alleges that Chawla sought U.S. dollars specifically, stated that Islamic Pulse could not accept electronic transfers, and admitted that Islamic Pulse was not a registered charity.
The complaint alleges that after the United States placed sanctions on the Supreme Leader of Iran in June 2019, Zaidi told Naqvi that the action was a “straight hit on khums.” The complaint alleges that in summer and fall 2019 Zaidi and Naqvi continued to collect U.S. currency in the United States and have it transported to Iran, sometimes via Iraq, structured in such a way as to avoid reporting requirements. After a group of 25 travelers carried money destined for Iran on behalf of Zaidi and Naqvi in October 2019, Zaidi and Naqvi discussed the screening the travelers underwent at the airport and Naqvi’s hope that none of the travelers would confess to authorities upon their return.
The complaint alleges that, during his current stay in the United States, which began in June 2020, Zaidi has exhibited behavior that is consistent with having received training from a foreign government or foreign intelligence service, such as the government of Iran or IRGC. According to the complaint, that behavior includes a reluctance to discuss matters over the phone, or even over encrypted applications, because Zaidi claims that doing so could be dangerous.
The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The maximum penalty for a violation of 18 U.S.C. § 951 is 10 years, and the maximum penalty for a violation of the International Emergency Economic Powers Act is 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes.
The investigation into this matter was conducted by the FBI’s Washington Field Office and Houston Field Office. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia, along with the Counterintelligence and Export Control Section and Counterterrorism Section of the National Security Division of the Department of Justice.
Two U.S. Citizens, One Pakistani National Charged with Moving U.S. Currency to IranRead the Press Release
A complaint was unsealed today, charging two U.S. citizens with federal crimes related to Iran. Muzzamil Zaidi, 36, a U.S. citizen who resides in Qom, Iran, was charged with acting in the United States as an agent of the government of Iran without first notifying the Attorney General. Zaidi, Asim Naqvi, 36, a U.S. citizen who lives in Houston, Texas, and Ali Chawla, 36, a Pakistani national who lives in Qom, Iran, were all charged with violations of the International Emergency Economic Powers Act. The complaint alleges that both charges stem from the defendants’ campaign to transport U.S. currency from the United States to Iran on behalf of the Supreme Leader of Iran in 2018 and 2019. Both Zaidi and Naqvi were arrested in Houston yesterday, Aug. 18, 2020.
“Disrupting Iran’s ability to raise U.S. dollars is key to combating its ability to sponsor international terrorism and destabilize the Middle East, including through its military presence in Yemen,” said Assistant Attorney General for National Security John C. Demers. “Zaidi, Naqvi, and Chawla allegedly raised money in the United States on behalf of Iran’s Supreme Leader, and illegally channeled these dollars to the government of Iran. As a result of today’s charges, their unlawful scheme has been exposed and brought to an end. The U.S. Department of Justice and its National Security Division are committed to holding accountable individuals who operate covert networks within the United States in order to provide support and funds to hostile foreign governments like Iran in violation of U.S. law.”
“This case is significant on many levels,” said Michael R. Sherwin, Acting United States Attorney for the District of Columbia. “To begin, as alleged in the criminal complaint, the defendants have considerable operational links to the IRGC, which has conducted multiple terrorist operations throughout the world over the past several years. The life-blood of these terrorist operations is cash – and the defendants played a key role in facilitating that critical component.”
“Today’s charges demonstrate our commitment to preventing agents of hostile foreign governments from having access and freedom to operate within the borders of the United States,” said James A. Dawson, acting Assistant Director in Charge of the FBI’s Washington Field Office. “In addition to being charged with acting as an illegal agent of Iran, Zaidi allegedly operated with his co-conspirators at the behest of the Iranian government — a known sponsor of terrorism — to overtly solicit U.S. money to further Iranian causes, in violation of the International Emergency Economic Powers Act (IEEPA). This is why IEEPA was established: to prevent hostile foreign governments from leveraging the U.S. financial system in furtherance of their global destabilizing endeavors.”
“The arrests today are the direct result of the undeterred efforts of the FBI Houston Counterterrorism investigative team,” said FBI Houston Field Office Special Agent in Charge, Perrye K. Turner. “By engaging in around the clock collaboration with multiple Field Offices and Intelligence Community partners, our agents ensure that those who send money to terrorist regimes will ultimately be held accountable and lose their freedom.”
As alleged in the affidavit in support of a criminal complaint, Zaidi offered his services to the Supreme Leader of Iran in or around July 2015 and said that he could serve the “Islamic Republic in the socio-political or another field.” The complaint alleges that Zaidi traveled to Syria in or around June 2018 and that, while there, flew to an active war zone in an armed Iranian military or intelligence aircraft. The complaint alleges that Zaidi had access to bases under the command of Iran’s Islamic Revolutionary Guard Corps (IRGC) while in that war zone, including a “Sepah Qods” (IRGC Qods Force) base. The IRGC was designated as a terrorist organization by the U.S on April 4, 2019. Qassem Soleimani, a major general in the IRGC, was commander of the Qods Force until he was killed in a U.S. airstrike on Jan. 3, 2020.
According to the complaint, in December 2018, Zaidi and other members of an organization known as “Islamic Pulse,” including Chawla, received the permission of the Supreme Leader of Iran to collect khums, a religious tax, on the Supreme Leader’s behalf, and to send half of that money to Yemen. The complaint alleges that permission was formalized on or about Feb. 28, 2019, in a letter confirming the permission of the Supreme Leader of Iran and another Ayatollah to spend khums money in Yemen.
Based on the complaint, in or around July 2019, Islamic Pulse released a video soliciting donations for its purported Yemen campaign that showed money moving from the United States and other Western countries to Yemen through Iran. The complaint alleges that Chawla replied to donors’ concerns about how the campaign was able to get money into Yemen by stating that the matter could not be discussed over email. The complaint further alleges that Chawla sought U.S. dollars specifically, stated that Islamic Pulse could not accept electronic transfers, and admitted that Islamic Pulse was not a registered charity.
The complaint alleges that after the United States placed sanctions on the Supreme Leader of Iran in June 2019, Zaidi told Naqvi that the action was a “straight hit on khums.” The complaint alleges that in summer and fall 2019 Zaidi and Naqvi continued to collect U.S. currency in the United States and have it transported it to Iran, sometimes via Iraq, structured in such a way as to avoid reporting requirements. After a group of 25 travelers carried money destined for Iran on behalf of Zaidi and Naqvi in October 2019, Zaidi and Naqvi discussed the screening the travelers underwent at the airport and Naqvi’s hope that none of the travelers would confess to authorities upon their return.
The complaint alleges that, during his current stay in the United States, which began in June 2020, Zaidi has exhibited behavior that is consistent with having received training from a foreign government or foreign intelligence service, such as the government of Iran or IRGC. According to the complaint, that behavior includes a reluctance to discuss matters over the phone, or even over encrypted applications, because Zaidi claims that doing so could be dangerous.
The charges in criminal complaints are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The maximum penalty for a violation of 18 U.S.C. § 951 is 10 years, and the maximum penalty for a violation of the International Emergency Economic Powers Act is 20 years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes.
The investigation into this matter was conducted by the FBI’s Washington Field Office and Houston Field Office. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia, along with the Counterintelligence and Export Control Section and Counterterrorism Section of the National Security Division of the Department of Justice.
Iranian National and U.A.E. Business Organization Charged with Criminal Conspiracy to Violate Iranian SanctionsRead the Press Release
Amin Mahdavi, 53, an Iranian national living in the United Arab Emirates (UAE), and Parthia Cargo LLC, a freight forwarding company located in the UAE, were charged in the U.S. District Court for the District of Columbia with participating in a criminal conspiracy to violate U.S. export laws and sanctions against Iran.
“Iran evades the U.S. embargo resulting from their malicious activities with the collaboration of those who pose as innocent buyers, but who are ready to send the products on to their forbidden destination,” said Assistant Attorney General for National Security John C. Demers. “These charges against Parthia Cargo LLC and its managing director should put on notice all freight forwarders and others who facilitate illicit transshipments to Iran that their conduct will not be tolerated.”
“We will not abide individuals or business organizations that seek to harm our national security by providing coveted U.S. goods to Iran, and we will pursue these wrongdoers no matter where they are located in the world,” said Acting U.S. Attorney Michael R. Sherwin for the District of Columbia.
“Amin Mahdavi defiantly conspired and violated U.S. sanctions to benefit his company and Iran,” said James A. Dawson, Acting Assistant Director in Charge of the FBI Washington Field Office. “Today’s charges are another example of the dedicated and unrelenting efforts of the FBI and the U.S. Attorney's Office to pursue those who violate our nation's sanctions and put our national security at risk. The FBI is charged with protecting our nation's security and intellectual property from being used to benefit our foreign adversaries.”
“The actions today are a result of the ongoing coordination and collaborative counter proliferation efforts by the Office of Export Enforcement and the FBI,” said P. Lee Smith, of BIS. “The Boston Field Office of the Office of Export Enforcement will continue to vigorously pursue violators with all law enforcement partners to interdict illicit trade that threatens U.S. national security and undermines U.S. foreign policy.”
Mahdavi and Parthia Cargo LLC 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 affidavit in support of the criminal complaint alleges that Mahdavi was the Managing Director of Parthia Cargo LLC, a business organization that facilitated the illegal shipment to Iran of goods manufactured in the United States. Mahdavi acknowledged to U.S. government officials in 2017 that he understood a U.S. government license was necessary to lawfully ship U.S. commercial aircraft parts to Iran. But Mahdavi nonetheless agreed to help ship a U.S.-origin commercial aircraft part to an Iranian air transport company, utilizing the freight forwarding services of Parthia Cargo LLC and without obtaining a license. Mahdavi and Parthia Cargo LLC conspired with individuals and business organizations located outside the United States as part of the criminal scheme, which included falsely stating to a U.S.-based aircraft parts supplier that the goods would not be shipped to Iran unless authorized by the U.S. government.
A concurrent action was filed by the Department of the Treasury, sanctioning Mahdavi and Parthia Cargo LLC, as well as a related UAE business organization, Delta Parts Supply FZC.
If convicted, Mahdavi would face up to five years of imprisonment and a fine of up to $250,000, and Parthia Cargo LLC would face a fine of up to $500,000. The criminal charge in the complaint is an allegation, and Mahdavi and Parthia Cargo LLC are presumed innocent until proven guilty beyond a reasonable doubt.
The investigation was conducted by the FBI’s Washington Field Office and the BIS’s Boston Field Office. Assistant U.S. Attorney Michael J. Friedman and National Security Division Trial Attorney Jennifer Kennedy Gellie are representing the United States.
Iranian National and U.A.E. Business Organization Charged with Criminal Conspiracy to Violate Iranian SanctionsRead the Press Release
WASHINGTON – Amin Mahdavi, 53, an Iranian national living in the United Arab Emirates (UAE), and Parthia Cargo LLC, a freight forwarding company located in the UAE, were 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.
“We will not abide individuals or business organizations that seek to harm our national security by providing coveted U.S. goods to Iran, and we will pursue these wrongdoers no matter where they are located in the world,” said Acting U.S. Attorney Michael R. Sherwin.
“Iran evades the U.S. embargo resulting from their malicious activities with the collaboration of those who pose as innocent buyers, but who are ready to send the products on to their forbidden destination,” said Assistant Attorney General for National Security John C. Demers. “These charges against Parthia Cargo LLC and its managing director should put on notice all freight forwarders and others who facilitate illicit transshipments to Iran that their conduct will not be tolerated.”
"Amin Mahdavi defiantly conspired and violated U.S. sanctions to benefit his company and Iran," said James A. Dawson, Acting Assistant Director in Charge of the FBI Washington Field Office. "Today’s charges are another example of the dedicated and unrelenting efforts of the FBI and the US Attorney's Office to pursue those who violate our nation's sanctions and put our national security at risk. The FBI is charged with protecting our nation's security and intellectual property from being used to benefit our foreign adversaries."
“The actions today are a result of the ongoing coordination and collaborative counter-proliferation efforts by the Office of Export Enforcement and the FBI,” said P. Lee Smith, of BIS. “We will continue to vigorously pursue violators with all law enforcement partners to interdict illicit trade that threatens U.S. national security and undermines U.S. foreign policy.”
Mahdavi and Parthia Cargo LLC 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 affidavit in support of the criminal complaint alleges that Mahdavi was the Managing Director of Parthia Cargo LLC, a business organization that facilitated the illegal shipment to Iran of goods manufactured in the United States. Mahdavi acknowledged to U.S. government officials in 2017 that he understood a U.S. government license was necessary to lawfully ship U.S. commercial aircraft parts to Iran. But Mahdavi nonetheless agreed to help ship a U.S.-origin commercial aircraft part to an Iranian air transport company, utilizing the freight forwarding services of Parthia Cargo LLC and without obtaining a license. Mahdavi and Parthia Cargo LLC conspired with individuals and business organizations located outside the United States as part of the criminal scheme, which included falsely stating to a U.S.-based aircraft parts supplier that the goods would not be shipped to Iran unless authorized by the U.S. government.
A concurrent action was taken by the Department of the Treasury, sanctioning Mahdavi and Parthia Cargo LLC, as well as a related UAE business organization, Delta Parts Supply FZC.
If convicted, Mahdavi would face up to five years of imprisonment and a fine of up to $250,000, and Parthia Cargo LLC would face a fine of up to $500,000. The criminal charge in the complaint is an allegation, and Mahdavi and Parthia Cargo LLC are presumed innocent until proven guilty beyond a reasonable doubt.
The investigation was conducted by the FBI’s Washington Field Office and the BIS’s Boston Field Office. Assistant U.S. Attorney Michael J. Friedman and National Security Division Trial Attorney Jennifer Kennedy Gellie are representing the United States.
Maryland Man Sentenced to 30 Months in Prison for Cyberstalking Former Girlfriend and Threatening Workplace ViolenceRead the Press Release
WASHINGTON – Brandon Spann was sentenced today to 30 months in prison after earlier pleading guilty to a federal cyberstalking charge.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin, and Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
Spann, 30, a resident of Maryland and a former employee of the Department of Education, plead guilty on February 13, 2020 in the U.S. District Court for the District of Columbia. He was sentenced by Judge Amy Berman Jackson. Following his incarceration, he is subject to three years of supervision.
According to the government’s evidence, from approximately November 2017 to July 2019, Spann undertook a pattern of stalking, harassing, and threating behavior towards his former girlfriend. As described in the plea documents, this behavior escalated, eventually targeting the victim through approximately 30 other individuals, including her friends, siblings, and parents, as well as their friends, family, and colleagues, many of whom were unfamiliar with the victim. The over 400 communications included description of murder plans, including numerous false obituaries, threats of workplace violence, and slanderous claims concerning the professional, personal, and sexual reputation of the primary victim. Judge Berman Jackson stated that although cyberstalking cases are rare in her courtroom, the “havoc and terror” wreaked by Mr. Spann “deserved law enforcement attention” and acknowledged that the “ever expanding ripples” of his threatening communication had “real consequences” to the victims, including the closure of an office, the loss of a victim’s job, and several victims’ ongoing fear and anxiety.
Spann was arrested on July 23, 2019, in his home in Maryland and he has been in custody ever since. Spann will get credit for the time he already has served. The court also granted a joint motion from the parties that will require Mr. Spann to pay more than $7,000 in restitution to two of the victims for their attorney’s fees and lost wages.
This matter was investigated by the FBI WFO's Safe Streets Violent Crime Task Force. This task force is charged with investigating acts of violence and criminal threats within the Capital Region and is composed of FBI Agents, Deputy Marshals of the United States Marshals Service, U.S. Capitol Police Officers, CSOSA Supervision Officers, and Detectives from the Washington DC Metropolitan Police Department.
The investigation into this matter was conducted by special agents from the FBI’s Washington Field Office. Assistant U.S. Attorneys Andrew Floyd of the Violent Crime and Narcotics Trafficking Section and Peter Roman of the Cyber Crime Section of the U.S. Attorney’s Office for the District of Columbia prosecuted the case.
Largest U.S. Seizure of Iranian Fuel from Four TankersRead the Press Release
The Justice Department and the United States Attorney’s Office for the District of Columbia today announced the successful disruption of a multimillion dollar fuel shipment by the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization that was bound for Venezuela. These actions represent the government’s largest-ever seizure of fuel shipments from Iran.
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 (all pictured below). A seizure order for the cargo from all four vessels was issued by U.S. District Court Judge Jeb Boasberg of the U.S. District Court for the District of Columbia.
The government announced today that it has 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.
After enforcement of the U.S. forfeiture order, Iran’s navy forcibly boarded an unrelated ship in an apparent attempt to recover the seized petroleum, but was unsuccessful. U.S. Central Command published a video of the failed Iranian operation yesterday. See https://twitter.com/CENTCOM/status/1293678243552395264
“The U.S. Attorney’s Office in the District of Columbia will continue to use civil forfeiture tools to punish state sponsors of terrorism and recover funds for the victims of terrorism,” said Acting U.S. Attorney Michael Sherwin for the District of Columbia. “This office has been at the forefront of seizing and forfeiting vessels used to clandestinely ship fuel in violation of U.S. sanctions. Today’s announcement demonstrates the relentless efforts of our law enforcement partners to ensure that seizure orders are executed no matter where the property in question is located.”
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.
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. Assistant U.S Attorneys Zia M. Faruqui, Brian Hudak, and Stuart Allen, and National Security Division Trial Attorney David Lim are litigating the case, with assistance from Paralegal Specialists Elizabeth Swienc and Legal Assistant Jessica McCormick.
Largest U.S. Seizure of Iranian Fuel from Four TankersRead the Press Release
The Justice Department today announced the successful disruption of a multimillion dollar fuel shipment by the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, that was bound for Venezuela. These actions represent the government’s largest-ever seizure of fuel shipments from Iran.
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 (all pictured below). A seizure order for the cargo from all four vessels was issued by U.S. District Court Judge Jeb Boasberg of the U.S. District Court for the District of Columbia.
The government announced today that it has 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.
After enforcement of the U.S. forfeiture order, Iran’s navy forcibly boarded an unrelated ship in an apparent attempt to recover the seized petroleum, but was unsuccessful. U.S. Central Command published a video of the failed Iranian operation yesterday. See https://twitter.com/CENTCOM/status/1293678243552395264
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.
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. Assistant U.S Attorneys Zia M. Faruqui, Brian Hudak, and Stuart Allen, and National Security Division Trial Attorney David Lim are litigating the case, with assistance from Paralegal Specialists Elizabeth Swienc and Legal Assistant Jessica McCormick.
Bella Bering Pandi LunaGlobal Disruption of Three Terror Finance Cyber-Enabled CampaignsRead the Press Release
WASHINGTON - The Justice Department today announced the dismantling of three terrorist financing cyber-enabled campaigns, involving the al-Qassam Brigades, Hamas’s military wing, al-Qaeda, and Islamic State of Iraq and the Levant (ISIS). This coordinated operation is detailed in three forfeiture complaints and a criminal complaint unsealed today in the District of Columbia. These actions represent the government’s largest-ever seizure of cryptocurrency in the terrorism context.
These three terror finance campaigns all relied on sophisticated cyber-tools, including the solicitation of cryptocurrency donations from around the world. The action demonstrates how different terrorist groups have similarly adapted their terror finance activities to the cyber age. Each group used cryptocurrency and social media to garner attention and raise funds for their terror campaigns. Pursuant to judicially-authorized warrants, U.S. authorities seized millions of dollars, over 300 cryptocurrency accounts, four websites, and four Facebook pages all related to the criminal enterprise.
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.
“It should not surprise anyone that our enemies use modern technology, social media platforms and cryptocurrency to facilitate their evil and violent agendas,” said Attorney General William P. Barr. “The Department of Justice will employ all available resources to protect the lives and safety of the American public from terrorist groups. We will prosecute their money laundering, terrorist financing and violent illegal activities wherever we find them. And, as announced today, we will seize the funds and the instrumentalities that provide a lifeline for their operations whenever possible. I want to thank the investigators from the Internal Revenue Service, Department of Homeland Security, Federal Bureau of Investigation, and the prosecutors from the D.C. United States Attorney’s Office and National Security Division for their hard and innovative work in attacking the networks that allow these terrorists to recruit for and fund their dangerous actions.”
"Terrorist networks have adapted to technology, conducting complex financial transactions in the digital world, including through cryptocurrencies. IRS-CI special agents in the DC cybercrimes unit work diligently to unravel these financial networks," said Secretary of the Treasury Steven T. Mnuchin. "Today's actions demonstrate our ongoing commitment to holding malign actors accountable for their crimes.”
“The Department of Homeland Security was born after the September 11, 2001 terrorist attacks and, nearly 20 years later, we remain steadfast in executing our critical mission to safeguard the American people, our homeland, and our values,” said Acting Secretary of Homeland Security Chad F. Wolf. “Today’s announcement detailing these enforcement actions targeting foreign terrorist organizations is yet another example of the Department’s commitment to our mission. After launching investigations that identified suspected online payments being funneled to and in support of terrorist networks, Homeland Security Investigations skillfully leveraged their cyber, financial, and trade investigative expertise to disrupt and dismantle cyber-criminal networks that sought to fund acts of terrorism against the United States and our allies. Together with our federal law enforcement partners, the Department will utilize every resource available to ensure that our Homeland is and remains secure.”
“These important cases reflect the resolve of the D.C. United States Attorney’s Office to target and dismantle these sophisticated cyber-terrorism and money laundering actors across the globe,” stated Acting United States Attorney Michael R. Sherwin. “While these individuals believe they operate anonymously in the digital space, we have the skill and resolve to find, fix and prosecute these actors under the full extent of the law.”
“IRS-CI’s ability to trace funds used by terrorist groups to their source and dismantle these radical group’s communication and financial networks directly prevents them from wreaking havoc throughout the world,” said Don Fort, Chief, IRS Criminal Investigation. “Today the world is a safer place.”
“As the primary law enforcement agency charged with defeating terrorism, the FBI will continue to combat illicit terrorist financing regardless of platform or method employed by our adversaries,” said FBI Director Christopher Wray. "As demonstrated by this recent operation, the FBI remains committed to cutting off the financial lifeblood of these organizations that seek to harm Americans at home and abroad."
“Homeland Security Investigations continues to demonstrate their investigative expertise with these enforcement actions,” said ICE Deputy Director and Senior Official Performing the Duties of the Director Matthew T. Albence. “Together with law enforcement partners, HSI has utilized their unique authorities to bring to justice those cyber-criminal networks who would do us harm.”
Al-Qassam Brigades Campaign
The first action involves the al-Qassam Brigades and its online cryptocurrency fundraising efforts. In the beginning of 2019, the al-Qassam Brigades posted a call on its social media page for bitcoin donations to fund its campaign of terror. The al-Qassam Brigades then moved this request to its official websites, alqassam.net, alqassam.ps, and qassam.ps.
The al-Qassam Brigades boasted that bitcoin donations were untraceable and would be used for violent causes. Their websites offered video instruction on how to anonymously make donations, in part by using unique bitcoin addresses generated for each individual donor.
However, such donations were not anonymous. Working together, IRS, HSI, and FBI agents tracked and seized all 150 cryptocurrency accounts that laundered funds to and from the al-Qassam Brigades’ accounts. Simultaneously, law enforcement executed criminal search warrants relating to United States-based subjects who donated to the terrorist campaign.
With judicial authorization, law enforcement seized the infrastructure of the al-Qassam Brigades websites and subsequently covertly operated alqassam.net. During that covert operation, the website received funds from persons seeking to provide material support to the terrorist organization, however, they instead donated the funds bitcoin wallets controlled by the United States.
The United States Attorney’s Office for the District of Columbia also unsealed criminal charges for two Turkish individuals, Mehmet Akti and Hüsamettin Karataş, who acted as related money launderers while operating an unlicensed money transmitting business.
Al-Qaeda Campaign
The second cyber-enabled terror finance campaign involves a scheme by al-Qaeda and affiliated terrorist groups, largely based out of Syria. As the forfeiture complaint details, these terrorist organizations operated a bitcoin money laundering network using Telegram channels and other social media platforms to solicit cryptocurrency donations to further their terrorist goals. In some instances, they purported to act as charities when, in fact, they were openly and explicitly soliciting funds for violent terrorist attacks. For example, one post from a charity sought donations to equip terrorists in Syria with weapons:
Undercover HSI agents communicated with the administrator of Reminder for Syria, a related charity that was seeking to finance terrorism via bitcoin donations. The administrator stated that he hoped for the destruction of the United States, discussed the price for funding surface-to air missiles, and warned about possible criminal consequences from carrying out a jihad in the United States.
Posts from another Syrian charity similarly explicitly referenced weapons and extremist activities:
Al-Qaeda and the affiliated terrorist groups together created these posts and used complicated obfuscation techniques, uncovered by law enforcement, to layer their transactions so to conceal their actions. Today’s complaint seeks forfeiture of the 155 virtual currency assets tied to this terrorist campaign.
ISIS Campaign
The final complaint combines the Department’s initiatives of combatting COVID-19 related fraud with combatting terrorism financing. The complaint highlights a scheme by Murat Cakar, an ISIS facilitator who is responsible for managing select ISIS hacking operations, to sell fake personal protective equipment via FaceMaskCenter.com (displayed below).
The website claimed to sell FDA approved N95 respirator masks, when in fact the items were not FDA approved. Site administrators claimed to have near unlimited supplies of the masks, in spite of such items being officially-designated as scarce. The site administrators offered to sell these items to customers across the globe, including a customer in the United States who sought to purchase N95 masks and other protective equipment for hospitals, nursing homes, and fire departments.
The unsealed forfeiture complaint seized Cakar’s website as well as four related Facebook pages used to facilitate the scheme. With this third action, the United States has averted the further victimization of those seeking COVID-19 protective gear, and disrupted the continued funding of ISIS.
The claims made in these three complaints are only allegations and do not constitute a determination of liability. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government. Further, charges contained in criminal complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
IRS-CI Cyber Crimes Unit (Washington, D.C.), HSI’s Philadelphia Office, and FBI’s Washington D.C., New York, and Los Angeles field offices are investigating the case. Assistant U.S Attorneys Jessi Camille Brooks and Zia M. Faruqui, and National Security Division Trial Attorneys Danielle Rosborough and Alexandra Hughes are litigating the case, with assistance from Paralegal Specialists Brian Rickers and Bria Cunningham, and Legal Assistant Jessica McCormick. Additional assistance has been provided by Chainalysis and Excygent.
Global Disruption of Three Terror Finance Cyber-Enabled CampaignsRead the Press Release
The Justice Department today announced the dismantling of three terrorist financing cyber-enabled campaigns, involving the al-Qassam Brigades, Hamas’s military wing, al-Qaeda, and Islamic State of Iraq and the Levant (ISIS). This coordinated operation is detailed in three forfeiture complaints and a criminal complaint unsealed today in the District of Columbia. These actions represent the government’s largest-ever seizure of cryptocurrency in the terrorism context.
These three terror finance campaigns all relied on sophisticated cyber-tools, including the solicitation of cryptocurrency donations from around the world. The action demonstrates how different terrorist groups have similarly adapted their terror finance activities to the cyber age. Each group used cryptocurrency and social media to garner attention and raise funds for their terror campaigns. Pursuant to judicially-authorized warrants, U.S. authorities seized millions of dollars, over 300 cryptocurrency accounts, four websites, and four Facebook pages all related to the criminal enterprise.
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.
“It should not surprise anyone that our enemies use modern technology, social media platforms and cryptocurrency to facilitate their evil and violent agendas,” said Attorney General William P. Barr. “The Department of Justice will employ all available resources to protect the lives and safety of the American public from terrorist groups. We will prosecute their money laundering, terrorist financing and violent illegal activities wherever we find them. And, as announced today, we will seize the funds and the instrumentalities that provide a lifeline for their operations whenever possible. I want to thank the investigators from the Internal Revenue Service, Department of Homeland Security, Federal Bureau of Investigation, and the prosecutors from the D.C. United States Attorney’s Office and National Security Division for their hard and innovative work in attacking the networks that allow these terrorists to recruit for and fund their dangerous actions.”
"Terrorist networks have adapted to technology, conducting complex financial transactions in the digital world, including through cryptocurrencies. IRS-CI special agents in the DC cybercrimes unit work diligently to unravel these financial networks," said Secretary of the Treasury Steven T. Mnuchin. "Today's actions demonstrate our ongoing commitment to holding malign actors accountable for their crimes.”
“The Department of Homeland Security was born after the September 11, 2001 terrorist attacks and, nearly 20 years later, we remain steadfast in executing our critical mission to safeguard the American people, our homeland, and our values,” said Acting Secretary of Homeland Security Chad F. Wolf. “Today’s announcement detailing these enforcement actions targeting foreign terrorist organizations is yet another example of the Department’s commitment to our mission. After launching investigations that identified suspected online payments being funneled to and in support of terrorist networks, Homeland Security Investigations skillfully leveraged their cyber, financial, and trade investigative expertise to disrupt and dismantle cyber-criminal networks that sought to fund acts of terrorism against the United States and our allies. Together with our federal law enforcement partners, the Department will utilize every resource available to ensure that our Homeland is and remains secure.”
“These important cases reflect the resolve of the D.C. United States Attorney’s Office to target and dismantle these sophisticated cyber-terrorism and money laundering actors across the globe,” stated Acting United States Attorney Michael R. Sherwin. “While these individuals believe they operate anonymously in the digital space, we have the skill and resolve to find, fix and prosecute these actors under the full extent of the law.”
“IRS-CI’s ability to trace funds used by terrorist groups to their source and dismantle these radical group’s communication and financial networks directly prevents them from wreaking havoc throughout the world,” said Don Fort, Chief, IRS Criminal Investigation. “Today the world is a safer place.”
“As the primary law enforcement agency charged with defeating terrorism, the FBI will continue to combat illicit terrorist financing regardless of platform or method employed by our adversaries,” said FBI Director Christopher Wray. "As demonstrated by this recent operation, the FBI remains committed to cutting off the financial lifeblood of these organizations that seek to harm Americans at home and abroad."
“Homeland Security Investigations continues to demonstrate their investigative expertise with these enforcement actions,” said ICE Deputy Director and Senior Official Performing the Duties of the Director Matthew T. Albence. “Together with law enforcement partners, HSI has utilized their unique authorities to bring to justice those cyber-criminal networks who would do us harm.”
Al-Qassam Brigades Campaign
The first action involves the al-Qassam Brigades and its online cryptocurrency fundraising efforts. In the beginning of 2019, the al-Qassam Brigades posted a call on its social media page for bitcoin donations to fund its campaign of terror. The al-Qassam Brigades then moved this request to its official websites, alqassam.net, alqassam.ps, and qassam.ps.
The al-Qassam Brigades boasted that bitcoin donations were untraceable and would be used for violent causes. Their websites offered video instruction on how to anonymously make donations, in part by using unique bitcoin addresses generated for each individual donor.
However, such donations were not anonymous. Working together, IRS, HSI, and FBI agents tracked and seized all 150 cryptocurrency accounts that laundered funds to and from the al-Qassam Brigades’ accounts. Simultaneously, law enforcement executed criminal search warrants relating to United States-based subjects who donated to the terrorist campaign.
With judicial authorization, law enforcement seized the infrastructure of the al-Qassam Brigades websites and subsequently covertly operated alqassam.net. During that covert operation, the website received funds from persons seeking to provide material support to the terrorist organization, however, they instead donated the funds bitcoin wallets controlled by the United States.
The United States Attorney’s Office for the District of Columbia also unsealed criminal charges for two Turkish individuals, Mehmet Akti and Hüsamettin Karataş, who acted as related money launderers while operating an unlicensed money transmitting business.
Al-Qaeda Campaign
The second cyber-enabled terror finance campaign involves a scheme by al-Qaeda and affiliated terrorist groups, largely based out of Syria. As the forfeiture complaint details, these terrorist organizations operated a bitcoin money laundering network using Telegram channels and other social media platforms to solicit cryptocurrency donations to further their terrorist goals. In some instances, they purported to act as charities when, in fact, they were openly and explicitly soliciting funds for violent terrorist attacks. For example, one post from a charity sought donations to equip terrorists in Syria with weapons:
Undercover HSI agents communicated with the administrator of Reminder for Syria, a related charity that was seeking to finance terrorism via bitcoin donations. The administrator stated that he hoped for the destruction of the United States, discussed the price for funding surface-to air missles, and warned about possible criminal consequences from carrying out a jihad in the United States.
Posts from another Syrian charity similarly explicitly referenced weapons and extremist activities:
Al-Qaeda and the affiliated terrorist groups together created these posts and used complicated obfuscation techniques, uncovered by law enforcement, to layer their transactions so to conceal their actions. Today’s complaint seeks forfeiture of the 155 virtual currency assets tied to this terrorist campaign.
ISIS Campaign
The final complaint combines the Department’s initiatives of combatting COVID-19 related fraud with combatting terrorism financing. The complaint highlights a scheme by Murat Cakar, an ISIS facilitator who is responsible for managing select ISIS hacking operations, to sell fake personal protective equipment via FaceMaskCenter.com (displayed below)
The website claimed to sell FDA approved N95 respirator masks, when in fact the items were not FDA approved. Site administrators claimed to have near unlimited supplies of the masks, in spite of such items being officially-designated as scarce. The site administrators offered to sell these items to customers across the globe, including a customer in the United States who sought to purchase N95 masks and other protective equipment for hospitals, nursing homes, and fire departments.
The unsealed forfeiture complaint seized Cakar’s website as well as four related Facebook pages used to facilitate the scheme. With this third action, the United States has averted the further victimization of those seeking COVID-19 protective gear, and disrupted the continued funding of ISIS.
The claims made in these three complaints are only allegations and do not constitute a determination of liability. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government. Further, charges contained in criminal complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
IRS-CI Cyber Crimes Unit (Washington, D.C.), HSI’s Philadelphia Office, and FBI’s Washington D.C., New York, and Los Angeles field offices are investigating the case. Assistant U.S Attorneys Jessi Camille Brooks and Zia M. Faruqui, and National Security Division Trial Attorneys Danielle Rosborough and Alexandra Hughes are litigating the case, with assistance from Paralegal Specialists Brian Rickers and Bria Cunningham, and Legal Assistant Jessica McCormick. Additional assistance has been provided by Chainalysis and Excygent.
District Man Charged with over $2 Million in Paycheck Protection Program and Related Loan FraudRead the Press Release
WASHINGTON – Kenneth Gaughan, 41, of Washington, D.C., was arrested and charged by a criminal complaint, unsealed today, with fraudulently obtaining over $2.1 million in Paycheck Protection Program (“PPP”) loans and Economic Injury Disaster Loans (“EIDL”). He used those funds, in part, to purchase a $300,000 yacht, a $1.13 million rowhouse, and a $46,000 luxury sports sedan. Gaughan was also arrested on an indictment unsealed today, charging him for a separate embezzlement scheme relating to his alleged theft of over $472,000 in funds from the Catholic Archdiocese of Washington, D.C. (“ADW”), where he was previously employed as Assistant Superintendent.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin, Special Agent in Charge Jennifer Boone of the Federal Bureau of Investigation’s Baltimore Field Office (“FBI”), Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office (“IRS-CI”), and Special Agent in Charge Kevin Kupperbusch of the U.S. Small Business Administration, Office of the Inspector General, Eastern Region (“SBA-OIG”).
The criminal complaint related to the PPP/EIDL loan fraud case was unsealed today as Gaughan has his initial appearance before U.S. Magistrate Judge G. Michael Harvey in the District of Columbia. The complaint charges Gaughan with one count of bank fraud, one count of the theft of government funds, one count of wire fraud, and one count of money laundering. The complaint alleges, through the scheme, Gaughan sought and received approximately $2.1 million in PPP and EIDL loans through applications to SBA lenders on behalf of multiple companies, all falsely purporting to register emotional support animals. Gaughan is alleged to have made false representations to receive the loan funds, including forged paperwork and bank records. Gaughan then used a portion of the loan proceeds to purchase a 2020 Cruisers Yachts 338 CX 33-foot watercraft, a 2020 Kia Stinger, and a rowhouse in Northeast, Washington, D.C. In conjunction with Gaughan’s arrest, the government obtained a warrant authorizing the seizure of the yacht, the Kia Stinger, Gaughan’s investment account, and Gaughan’s bank accounts. The government is also filing a civil forfeiture complaint against a home Gaughan purchased with his fraudulently obtained proceeds and filing a lis pendens on that property.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
EIDL is an existing SBA program designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. EIDL provides loan assistance, including up to $10,000 advances, for small businesses and other eligible entities for loans up to $2 million. The EIDL proceeds can be used to pay fixed debts, payroll, accounts payable and other bills that could have been paid had the disaster not occurred; however, such loan proceeds are not intended to replace lost sales or profits or for expansion of a business. Unlike certain other types of SBA-guaranteed loans, EIDL funds are issued directly from the United States Treasury and applicants apply through the SBA via an online portal and application.
“We will not tolerate exploitation of this national emergency for personal gain,” said Acting U.S. Attorney Michael R. Sherwin. “This Office will not allow fraudsters to steal taxpayer money intended to help small businesses that are currently struggling as a result of the COVID-19 pandemic.”
“During this time, many businesses are feeling effects of the pandemic. To help businesses make it through, the government offered loans to provide economic relief to small businesses and non-profit organizations that are currently experiencing a temporary loss of revenue and enable them to keep their workers on the payroll. Unfortunately, there are greedy individuals who choose to abuse these programs in order to enrich their lifestyle,” said Kelly R. Jackson IRS-CI Special Agent in Charge of the Washington DC Field Office. “This conduct will be investigated to ensure crooks are held responsible for stealing this money away from those who were in need.”
“Mr. Gaughan was so emboldened by deceiving a church for eight years he then, allegedly, turned his deception to the government,” said FBI Special Agent in Charge Jennifer Boone, “stealing funds that were meant to be a lifeline for struggling businesses during an unprecedented economic downturn, and greedily using them to satisfy his own materialistic desires. I want to thank the agents for their diligent work in this case.”
“It is unconscionable to fraudulently attempt to gain access to a program aimed at assisting small businesses that are struggling to survive for personal gain and profit,” said SBA OIG’s Eastern Region Special Agent-in-Charge Kevin Kupperbusch. “SBA OIG and its law enforcement will aggressively investigate allegations of fraud involving SBA’s programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
The indictment, also unsealed today before Magistrate Judge Harvey, charges Gaughan with offenses including mail fraud, wire fraud, and money laundering for perpetrating a separate scheme that defrauded ADW of over $472,000. According to the 12-count indictment, Gaughan was employed as an Assistant Superintendent of ADW, headquartered in Hyattsville, Maryland. In that role, Gaughan was responsible for recruiting and acting as the point of contact for contractors who provided various services to ADW. These included contractors that could help ADW implement anti-bullying, crisis intervention, and professional development programs at the approximately 95 Catholic schools overseen by ADW, located in Calvert, Charles, Montgomery, Prince George’s, and St. Mary’s Counties in Maryland, and Washington, D.C. Gaughan also obtained invoices for services from contractors and provided those invoices, along with requests for payment and supporting documentation, to his superiors for approval.
The indictment alleges that beginning in at least June 2010 and continuing through April 2018, Gaughan caused ADW to pay invoices manufactured by Gaughan purportedly for anti-bullying and crisis intervention programs, as well as for software used to send mass messages to ADW’s students and families. To execute the scheme, Gaughan allegedly concealed his ownership and control of three companies, including by submitting forms using an alias and falsely certifying that he did not transact any business with ADW. According to the indictment, Gaughan then transmitted fraudulent invoices for these companies and persuaded ADW to issue checks for services that Gaughan knew the companies did not provide. Gaughan allegedly opened virtual and private mailboxes in order to receive the checks that ADW issued to pay for the fraudulent invoices that Gaughan manufactured and transmitted to ADW officials. The indictment alleges that Gaughan deposited the checks issued by ADW into the bank accounts he controlled, and converted the money to his personal use.
The charges in the complaint and the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This matter was investigated by the FBI, IRS-CI, and the SBA-OIG. Assistant U.S. Attorney Christine Macey of the Fraud Section of the U.S. Attorney’s Office for the District of Columbia and Assistant U.S. Attorneys Greg Bernstein and Jessica Collins of the U.S. Attorney’s Office for the District of Maryland are investigating and prosecuting the case, supported by Paralegal Specialist Quiana Dunn-Gordon. Assistant U.S. Attorney Arvind Lal and Special Assistant U.S. Attorney Steven Brantley are handling the seizure and forfeiture matters.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
Citizens and others who suspect fraud or other criminal wrongdoing related to the pandemic should report it to the COVID-19 Pandemic Fraud Hotline by phone at 202-252-7022 or by email at [email protected].
D.C. Woman Arrested for Stealing More Than $100,000 of Donor Checks from a Local Non-Profit OrganizationRead the Press Release
WASHINGTON – Maxine Williams, 48, of Washington, D.C., was presented today in federal court on a one-count criminal complaint charging her with interstate transportation of stolen property stemming from the theft of more than $100,000 of donor checks from a local non-profit organization, announced Acting U.S. Attorney Michael R. Sherwin, U.S Postal Inspector-in-Charge for the Washington Division, Peter Rendina, and Metropolitan Police Department Chief Peter Newsham.
The affidavit in support of the criminal complaint alleges that Williams was employed as an administrative assistant by a non-profit organization in the District of Columbia between February 2015 and March 2018. Her job included performing clerical tasks, such as opening mail; processing donation checks; and preparing and mailing checks from the organization to vendors, service providers, and individuals. In March 2018, after the non-profit organization became aware that six donation checks totaling approximately $18,000 had been stolen, it confronted Williams, who admitted to depositing four checks into her Bank of America account. A subsequent investigation revealed that approximately 123 checks payable to the non-profit organization were deposited into Williams’ Bank of America account from approximately February 2016 through December 2017. Those checks totaled $110,830. The investigation also revealed that between approximately November 2015 and May 2016, an additional 21 checks payable from the non-profit organization to individuals and/or a vendor in amounts totaling $11,702 were deposited into Williams’ account.
The defendant was presented today before United States Magistrate Judge Robin M. Meriweather in the United States District Court for the District of Columbia. A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
The case was investigated by the U.S. Postal Inspection Service’s Washington Division and the Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Kondi Kleinman.
American Darknet Vendor and Costa Rican Pharmacist Charged with Narcotics and Money Laundering ViolationsRead the Press Release
A dual U.S.-Costa Rican citizen and a Costa Rican citizen, both of whom reside in Costa Rica, were indicted by a federal grand jury in the District of Columbia for their illegal sales of opioids on the darknet.
The seven-count indictment charged David Brian Pate, 44, a U.S. and Costa Rican citizen, and Jose Luis Fung Hou, 38, a Costa Rican citizen, with counts of conspiring with persons to distribute controlled substances, distribution of controlled substances, conspiring with persons to import controlled substances, conspiring to launder money, and laundering of monetary instruments.
“As alleged in the indictment, the defendants helped fuel our deadly opioid drug epidemic by hiding behind the darknet and cryptocurrency to profit from the sale of illicit opioids into the United States,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “Fortunately, by working with our law enforcement partners across the United States and overseas, we were able to uncover this darknet opioid market and bring to justice those responsible.”
“These charges are a warning to drug traffickers worldwide that neither the shroud of the darknet or of virtual currency can hide their illegal activities from the vigilance of U.S. law enforcement,” said Acting U.S. Attorney Michael Sherwin for the District of Columbia. “We are firmly committed to combatting the problem of opioid abuse and breaking through sophisticated cyber-enabled barriers employed by criminals to hide their activities.”
“The opioid epidemic is a crisis crippling many families in this country,” said Special Agent in Charge Kelly R. Jackson of the IRS Criminal Investigation (CI) Washington D.C. Field Office. “This international group profited off of people’s addictions, revictimizing them when they were already vulnerable. This group purposely distributed opioids that did not contain a safety additive and prevented inhalation of the drug. Years ago when drug dealers and traffickers moved to the darknet and started using virtual currency to conceal and expand their network, CI also moved our playing field to the darknet to bring groups like this to justice.”
“Today’s case is a great example of how the DEA has infiltrated the darknet and, together with our law enforcement partners, proven that every criminal attempting to sell these deadly drugs is within the reach of the law,” said Special Agent in Charge Jesse R. Fong of the U.S. Drug Enforcement Administration’s (DEA) Washington Field Division.
The indictment alleges that Pate illegally purchased narcotics, including OxyContin and morphine pills, primarily from Fung, a pharmacist in Costa Rica. Pate would launder payments to Fung to purchase narcotics. Pate then sold these narcotics on numerous darknet markets, including Silk Road and AlphaBay, in exchange for bitcoin. Pate utilized various online monikers including “buyersclub” on darknet markets, online forums, and bitcoin exchanges. Pate advertised that he was selling the “old formula” of OxyContin, which did not contain tamper-resistant features such as a crush-proof feature that prevented a user from inhaling or injecting the pills after pulverizing them.
The indictment further alleges that Pate’s darknet sales involved him sending bulk shipments of narcotics in pill form from Costa Rica, often concealed in tourist souvenirs such as maracas, to co-conspirator re-shippers in the United States. Pate would then send the re-shippers a list of customer orders, which included customer’s names, the customer’s shipping address, and the quantity of pills they purchased. The re-shippers created smaller packages of pills, which they then mailed to the customer. Once the shipments were received by the customer, the darknet market would release funds in bitcoin, which were held in escrow until the transaction was completed, into Pate’s account on the darknet market. Customers paid Pate over 23,903 bitcoin for these darknet market sales. The co-conspirators also laundered payments in the form of bitcoin and international wire transfers.
The charges in the pleadings are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IRS-CI Cyber Crimes Unit, DEA, and the U.S. Postal Inspection Service investigated this case. The Justice Department’s Office of International Affairs and Costa Rican authorities provided assistance.
The case is being handled by Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorneys Zia M. Faruqui and Laura Crane of the U.S. Attorney’s Office for the District of Columbia, Paralegal Specialist Brian Rickers and Teesha Tobias, and Legal Assistant Jessica McCormick. Additional assistance has been provided by former Assistant U.S. Attorneys Youli Lee and Kara Traster, and Paralegal Specialist Toni Anne Donato.
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.
American Darknet Vendor and Costa Rican Pharmacist Charged with Narcotics and Money Laundering ViolationsRead the Press Release
WASHINGTON – David Brian Pate, 44, a United States and Costa Rican citizen, and Jose Luis Fung Hou, 38, a Costa Rican citizen, both of whom reside in Costa Rica, were indicted by a federal grand jury in the District of Columbia for their illegal sales of opioids on the darknet. The seven-count indictment charged counts of Conspiring with Persons to Distribute Controlled Substances, Distribution of Controlled Substances, Conspiring with Persons to Import Controlled Substances, Conspiring to Launder Money, and Laundering of Monetary Instruments.
“These charges are a warning to drug traffickers worldwide that neither the shroud of the darknet or of virtual currency can hide their illegal activities from the vigilance of U.S. law enforcement,” said Acting U.S. Attorney Michael Sherwin. “We are firmly committed to combatting the problem of opioid abuse and breaking through sophisticated cyber-enabled barriers employed by criminals to hide their activities.”
“The opioid epidemic is a crisis crippling many families in this country,” said Kelly R. Jackson, IRS-Criminal Investigations (IRS-CI) Special Agent in Charge of the Washington DC Field Office. “This international group profited off of people’s addictions, revictimizing them when they were already vulnerable. This group purposely distributed opioids that did not contain a safety additive and prevented inhalation of the drug. Years ago when drug dealers and traffickers moved to the darknet and started using virtual currency to conceal and expand their network, CI also moved our playing field to the darknet to bring groups like this to justice.”
“Today’s case is a great example of how the DEA has infiltrated the darknet, and together with our law enforcement partners, proven that every criminal attempting to sell these deadly drugs is within the reach of the law” said Jesse R. Fong, Special Agent in Charge of the U.S. Drug Enforcement Administration’s Washington Field Division.
The indictment alleges that Pate illegally purchased narcotics, including OxyContin and morphine pills, primarily from Fung, a pharmacist in Costa Rica. Pate would launder payments to Fung to purchase narcotics. Pate then sold these narcotics on numerous darknet markets, including Silk Road and AlphaBay, in exchange for bitcoin. Pate utilized various online monikers including “buyersclub” on darknet markets, online forums, and bitcoin exchanges. Pate advertised that he was selling the “old formula” of OxyContin, which did not contain tamper-resistant features such as a crush-proof feature that prevented a user from inhaling or injecting the pills after pulverizing them.
The indictment further alleges that Pate’s darknet sales involved him sending bulk shipments of narcotics in pill form from Costa Rica, often concealed in tourist souvenirs such as maracas, to co-conspirator re-shippers in the United States. Pate would then send the re-shippers a list of customer orders, which included customer’s names, the customer’s shipping address, and the quantity of pills they purchased. The re-shippers created smaller packages of pills, which they then mailed to the customer. Once the shipments were received by the customer, the darknet market would release funds in bitcoin, which were held in escrow until the transaction was completed, into Pate’s account on the darknet market. Customers paid Pate over 23,903 bitcoin for these darknet market sales. The co-conspirators also laundered payments in the form of bitcoin and international wire transfers.
The charges in the pleadings are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IRS-CI Cyber Crimes Unit (Washington, D.C.), DEA (Baltimore, Maryland), and the U.S. Postal Inspection Service investigated this case. Costa Rican authorities provided assistance.
The case is being handled by Assistant U.S. Attorneys Zia M. Faruqui and Laura Crane of the U.S. Attorney’s Office for the District of Columbia, Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, Paralegal Specialist Brian Rickers and Teesha Tobias, and Legal Assistant Jessica McCormick. Additional assistance has been provided by former Assistant U.S. Attorneys Youli Lee and Kara Traster, and Paralegal Specialist Toni Anne Donato.
United States Files Complaint to Forfeit More Than $6.5 Million in Cryptocurrency Stolen in Banana Fund Ponzi SchemeRead the Press Release
WASHINGTON - The United States has filed a complaint to forfeit approximately 482 bitcoins and 1,721,868 tether (collectively worth approximately $6.5 million), announced the Acting U.S. Attorney for the District of Columbia Michael R. Sherwin and Special Agent in Charge of the United States Secret Service San Francisco Field Office Thomas Edwards.
The complaint alleges that the administrator of the “Banana Fund” marketed the company to potential investors as a platform for startups to post business proposals and receive crowdfunding in virtual currency. Based on the administrator’s representations, his victims sent him investment contributions; however, the Banana Fund never became operational. Instead, the administrator invested the victims’ capital for his own gain. After admitting that the Banana Fund was unsuccessful, he told his victims that he would return their contributions. When he failed to do so, the U.S. authorities seized the remaining victim funds, which amounted to more than $6.5 million in bitcoins and tether.
“The complaint in this case demonstrates our commitment to protecting people here and abroad from ever-evolving Ponzi schemes,” said Acting U.S. Attorney Sherwin. “Today’s complaint ensures that funds will be returned to victims of the scheme. This office has prioritized investigating and prosecuting the illicit use of virtual currency to launder criminal enterprises such as the Banana Fund.”
“Today’s cybercriminals rely on sophisticated techniques in order to prey on victims, often masquerading as legitimate businesses, “ said Thomas Edwards, Special Agent in Charge of the United States Secret Service’s San Francisco Field Office. “The complaint demonstrates that the Secret Service will continue to hold foreign and domestic criminals accountable, to include crooked cryptocurrency schemes that attempt to defraud American citizens. The swift actions taken by the Secret Service, the U.S. Attorney’s Office and the Department of Justice’s Computer Crime and Intellectual Property Section prevented the subject from liquidating the remaining illegally obtained funds for personal gains - and will permit us to return the reserves to the victims. This investigation is a testament to the strong partnership between the Secret Service, U.S. Attorney’s Office and the Department of Justice’s Computer Crime and Intellectual Property Section.”
The civil forfeiture complaint was filed on July 29, 2020, in the U.S. District Court for the District of Columbia. According to the complaint, between December 2016 and March 2018, the administrator for the Banana Fund solicited investments by representing his company as a platform for entrepreneurs to bring their business concepts and crowdsource ideas. Each entrepreneur’s project would be funded by the crowd during an initial token offering, with a percentage of the capital raised going to the Banana Fund. The administrator amassed over 500 bitcoins. Although the administrator claimed to be working toward opening the Banana Fund for business, he laundered the funds and made tens of thousands of virtual currency trades as part of a self-enrichment scheme.
According to the complaint, in January 2018, the administrator informed his investors that the Banana Fund had failed and promised to refund their contributions. He also claimed that he was in the process of transferring all funds to stablecoins, such as tether. Shortly thereafter, he withdrew approximately 100 bitcoins from his victims’ investments so that he could purchase a house for his personal use. He never returned any of the funds to his investors. After victim investors complained that the Banana Fund had turned out to be a fraud, USSS began an investigation.
While soliciting investments, the administrator announced publicly that investor funds had reached 557 bitcoins and approximately 1.73 million tether. After tracing the victims’ investment funds to a particular virtual currency account, USSS investigators were able to locate 482 bitcoins and 1,721,868 tether. As a result, USSS executed a seizure warrant on those funds and commenced this action to begin returning these funds to the administrator’s victims.
USSS has set up a dedicated email account for Banana Fund victims to contact law enforcement at [email protected]. Further information about filing a claim may be found at www.forfeiture.gov.
The claims made in the complaint are only allegations and do not constitute a determination of liability.
The Secret Service San Francisco Field Office is investigating the case. Assistant U.S Attorneys Zia M. Faruqui and Jessi Brooks, and Trial Attorneys Jessica Peck and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section are litigating the case, with assistance from Paralegal Specialist Elizabeth Swienc. The U.S. Attorney’s Office for the Northern District of California in San Francisco provided significant assistance.
Singaporean National Pleads Guilty to Acting in the United States as an Illegal Agent of Chinese IntelligenceRead the Press Release
Jun Wei Yeo, also known as Dickson Yeo, entered a plea of guilty today to one count of 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. Yeo’s plea was entered via videoconference before the Honorable Tanya S. Chutkan in the U.S. District Court for the District of Columbia.
The announcement was made by John G. Demers, Assistant Attorney General; Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia; Timothy R. Slater, Assistant Director in Charge of the Federal Bureau of Investigation’s (FBI) Washington Field Office; and Alan E. Kohler, Jr., Assistant Director of the FBI's Counterintelligence Division.
“The Chinese Government uses an array of duplicity to obtain sensitive information from unsuspecting Americans,” said Assistant Attorney General for the Justice Department's National Security Division John C. Demers. “Yeo was central to one such scheme, using career networking sites and a false consulting firm to lure Americans who might be of interest to the Chinese government. This is yet another example of the Chinese government’s exploitation of the openness of American society.”
“Today’s guilty plea underscores the ways that the Chinese government continues to target Americans with access to sensitive government information, including using the Internet and non-Chinese nationals to target Americans who never leave the United States,” said Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia. “We will continue to prosecute those who use deceptive practices on the Internet and elsewhere to undermine our national security.”
“At the direction of Chinese intelligence operatives, the defendant targeted U.S. government employees and an Army officer to obtain information for the government of China. Mr. Yeo admits he set up a fake consulting company to further his scheme, looked for susceptible individuals who were vulnerable to recruitment, and tried to avoid detection by U.S. authorities,” said Alan E. Kohler Jr., Assistant Director of the FBI's Counterintelligence Division. “But this isn't just about this particular defendant. This case is yet another reminder that China is relentless in its pursuit of U.S. technology and policy information in order to advance its own interests. The FBI and our partners will be just as aggressive in uncovering these hidden efforts and charging individuals who break our laws.”
“Mr. Yeo admitted that he not only provided valuable information to Chinese intelligence, but also that he knowingly recruited others in the U.S. to do the same,” said FBI Washington Field Office Assistant Director in Charge Timothy R. Slater. “The tactics Mr. Yeo used to target cleared individuals on professional networking social media sites are just one facet of the full court press China employs on a daily basis to obtain non-public U.S. government information. The FBI urges citizens, especially those holding security clearances, to be cautious when being approached by individuals on social media sites with implausible career opportunities. We are committed to holding those accountable who attempt to work for Chinese intelligence and other adversaries to the detriment of our national security.”
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime and protect our national security,” said Galen J. Nace, Deputy Assistant Director for Counterintelligence of the Department of State’s Diplomatic Security Service (DSS).
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 maximum penalty for a violation of 18 U.S.C. § 951 is ten years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The defendant’s sentence will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing is set for Oct. 9, 2020 before the Honorable Tanya S. Chutkan.
The investigation into this matter was conducted by the FBI’s Washington Field Office and DSS. 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. If you suspect you have been the target of a recruitment scheme, contact your local FBI Field Office.
Singaporean National Pleads Guilty to Acting in the United States as an Illegal Agent of Chinese IntelligenceRead the Press Release
WASHINGTON – Jun Wei Yeo, also known as Dickson Yeo, entered a plea of guilty today to one count of 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. Mr. Yeo’s plea was entered via videoconference before the Honorable Tanya S. Chutkan in the United States District Court for the District of Columbia. The announcement was made by John G. Demers, Assistant Attorney General; Michael R. Sherwin, Acting United States Attorney for the District of Columbia; Timothy R. Slater, Assistant Director in Charge of the Federal Bureau of Investigation’s (FBI) Washington Field Office; and Alan E. Kohler, Jr., Assistant Director of the FBI's Counterintelligence Division.
“The Chinese Government uses an array of duplicity to obtain sensitive information from unsuspecting Americans,” said Assistant Attorney General for National Security John C. Demers. “Yeo was central to one such scheme, using career networking sites and a false consulting firm to lure Americans who might be of interest to the Chinese government. This is yet another example of the Chinese government’s exploitation of the openness of American society.”
“Today’s guilty plea underscores the ways that the Chinese government continues to target Americans with access to sensitive government information, including using the Internet and non-Chinese nationals to target Americans who never leave the United States,” said Michael R. Sherwin, Acting United States Attorney for the District of Columbia, “We will continue to prosecute those who use deceptive practices on the Internet and elsewhere to undermine our national security.”
“Mr. Yeo admitted that he not only provided valuable information to Chinese intelligence, but also that he knowingly recruited others in the U.S. to do the same,” said FBI Washington Field Office Assistant Director in Charge Timothy R. Slater. “The tactics Mr. Yeo used to target cleared individuals on professional networking social media sites are just one facet of the full court press China employs on a daily basis to obtain non-public U.S. government information. The FBI urges citizens, especially those holding security clearances, to be cautious when being approached by individuals on social media sites with implausible career opportunities. We are committed to holding those accountable who attempt to work for Chinese intelligence and other adversaries to the detriment of our national security."
"At the direction of Chinese intelligence operatives, the defendant targeted U.S. government employees and an Army officer to obtain information for the government of China. Mr. Yeo admits he set up a fake consulting company to further his scheme, looked for susceptible individuals who were vulnerable to recruitment, and tried to avoid detection by U.S. authorities," said Alan E. Kohler, Jr., Assistant Director of the FBI's Counterintelligence Division. "But this isn't just about this particular defendant. This case is yet another reminder that China is relentless in its pursuit of U.S. technology and policy information in order to advance its own interests. The FBI and our partners will be just as aggressive in uncovering these hidden efforts and charging individuals who break our laws."
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime and protect our national security,” said Galen J. Nace, Deputy Assistant Director for Counterintelligence of the Department of State’s Diplomatic Security Service (DSS).
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 maximum penalty for a violation of 18 U.S.C. § 951 is ten years. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. The defendant’s sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Sentencing is set for October 9, 2020 before the Honorable Tanya S. Chutkan.
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.
Former Howard University Associate Director Pleads Guilty to Defrauding the School Out of More Than $100,000Read the Press Release
WASHINGTON – Doemini Mosley, 35, of Washington, D.C., pled guilty today to defrauding Howard University out of more than $100,000, announced Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the Federal Bureau of Investigation’s (FBI) Washington Field Office Criminal Division.
Mosley pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 371, in the U.S. District Court for the District of Columbia. Her co-conspirator, Brian Johnson, 35, of Washington, D.C., pled guilty last week to the same offense. The charge carries a statutory maximum sentence of five years in prison. Under federal sentencing guidelines, Mosley faces a potential recommended sentence of between 10 and 24 months in prison. The plea agreement calls for Mosley to pay $139,697.75 in restitution and $85,850 in a forfeiture money judgment.
Mosley worked at Howard from 2011 through June 2017, initially in the financial aid office and then ultimately as the Associate Director of the Bursar’s Office. Johnson, a Howard graduate, served as Associate Director of Financial Aid from 2014 through August 2016. In the fall of 2016, Mosley proposed a scheme to Johnson in which Mosley would cause fraudulently-obtained money to be sent from Howard University to Johnson, with Johnson then kicking back half of the proceeds to Mosley. As part of the scheme, Mosley applied fraudulent financial aid awards onto Johnson’s student profile even though he was no longer a student or employed at the school. As a result, Mosley caused Howard University to issue $107,697.75 to Johnson’s bank account between November 2016 and May 2017. Johnson admitted sharing half of the fraud proceeds with Mosley in the form of cash or electronic payments.
Mosley also separately defrauded the university out of an additional $32,000 in May 2017.
The Honorable Beryl A. Howell accepted Johnson’s guilty plea last Friday and Mosley’s guilty plea today. Johnson is scheduled to be sentenced on September 25, 2020. Mosley is scheduled to be sentenced on October 2, 2020.
This case is part of an ongoing investigation being conducted by the FBI’s Washington Field Office. Assistant U.S. Attorney Kondi Kleinman of the Fraud and Public Corruption Section is prosecuting the case.
United States Files Complaint to Forfeit More Than $2.37 Million from Companies Accused of Laundering Funds to Benefit Sanctioned North Korean EntitiesRead the Press Release
WASHINGTON - The United States has filed a complaint to forfeit $2,372,793 associated with four companies, announced the Acting U.S. Attorney for the District of Columbia Michael R. Sherwin, 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 that the four companies laundered United States dollars on behalf of sanctioned North Korean banks. According to the complaint, the North Korean banks used these laundered funds as part of a scheme to procure goods for the North Korean regime, as well as to illegally access the U.S. financial market.
The four companies allegedly were part of a scheme to launder payments to subsequently sanctioned entities, to include: Velmur Management Pte. Ltd. (Velmur), which the Treasury Department sanctioned for procuring Russian petroleum products for North Korea; Dandong Zhicheng Metallic Material Co. (Dandong Zhicheng), which the Treasury Department sanctioned for purchasing coal from North Korea, and then in turn laundering the proceeds of those sale to purchase items for North Korea, including nuclear and missile components; and multiple cover branches of North Korea’s Foreign Trade bank, which the Treasury Department sanctioned for facilitating transactions on behalf of actors linked to its North Korea’s proliferation network.
“The Department of Justice has repeatedly disrupted North Korea’s illicit attempts to access the U.S. financial system,” said Assistant Attorney General for National Security John C. Demers. “We will continue to do so as long as the North Korean government maintains its destabilizing, dangerous WMD activities.”
“This complaint illuminates how a global money laundering network coordinates with front companies to move North Korean money through the United States and violate the sanctions imposed by our government on North Korea,” said Acting U.S. Attorney Sherwin. “This case demonstrates that we will use all tools in our Threat Finance Unit’s portfolio to target companies that harm U.S. national security, regardless of where they are doing business.”
“The FBI, along with our domestic and international partners, will continue to prioritize and dedicate the necessary resources to investigate and combat those who are assisting North Korea in evading sanctions by providing illegal access to the U.S. financial system, contrary to our national security interests,” said Emmerson Buie, Jr., Special Agent in Charge of the FBI Chicago Field Office.
“The discovery of this transnational criminal organization is the result of international law enforcement agencies working together in the interest of national security,” said Eric Balliet Deputy Special Agent in Charge, HSI Denver. “HSI will continue to leverage our unique international authority to protect the U.S. from companies who do business with North Korea.”
The complaint was filed on July 23, 2020, in the U.S. District Court for the District of Columbia. According to the complaint, designated North Korean banks used the four companies to make and receive U.S. dollar payments to/from North Korean front companies.
The United Nations Panel of Experts reported that 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 adapt by using greater ingenuity in accessing formal banking channels. This includes 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 complaint alleges activity by the four companies that tracks this paradigm.
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 and Brian P. Hudak, and National Security Division Trial Attorney David C. Recker are litigating the case, with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick.
United States Files Complaint to Forfeit More Than $2.37 Million from Companies Accused of Laundering Funds to Benefit Sanctioned North Korean EntitiesRead the Press Release
The United States has filed a complaint to forfeit $2,372,793, announced the Department of Justice.
The complaint alleges that four companies laundered United States dollars on behalf of sanctioned North Korean banks. According to the complaint, the North Korean banks used these laundered funds as part of a scheme to procure goods for the North Korean regime, as well as to illegally access the U.S. financial market.
The four companies allegedly were part of a scheme to launder payments to subsequently sanctioned entities, to include: Velmur Management Pte. Ltd. (Velmur), which the Treasury Department sanctioned for procuring Russian petroleum products for North Korea; Dandong Zhicheng Metallic Material Co. (Dandong Zhicheng), which the Treasury Department sanctioned for purchasing coal from North Korea, and then in turn laundering the proceeds of those sale to purchase items for North Korea, including nuclear and missile components; and multiple cover branches of North Korea’s Foreign Trade bank, which the Treasury Department sanctioned for facilitating transactions on behalf of actors linked to North Korea’s proliferation network.
“The Department of Justice has repeatedly disrupted North Korea’s illicit attempts to access the U.S. financial system,” said Assistant Attorney General for National Security John C. Demers. “We will continue to do so as long as the North Korean government maintains its destabilizing, dangerous WMD activities.”
“This complaint illuminates how a global money laundering network coordinates with front companies to move North Korean money through the United States and violate the sanctions imposed by our government on North Korea,” said Acting U.S. Attorney Sherwin. “This case demonstrates that we will use all tools in our Threat Finance Unit’s portfolio to target companies that harm U.S. national security, regardless of where they are doing business.”
“The FBI, along with our domestic and international partners, will continue to prioritize and dedicate the necessary resources to investigate and combat those who are assisting North Korea in evading sanctions by providing illegal access to the U.S. financial system, contrary to our national security interests,” said Emmerson Buie, Jr., Special Agent in Charge of the FBI Chicago Field Office.
“The discovery of this transnational criminal organization is the result of international law enforcement agencies working together in the interest of national security,” said Eric Balliet Deputy Special Agent in Charge, HSI Denver. “HSI will continue to leverage our unique international authority to protect the U.S. from companies who do business with North Korea.”
The complaint was filed on July 23, 2020, in the U.S. District Court for the District of Columbia. According to the complaint, designated North Korean banks used the four companies to make and receive U.S. dollar payments to/from North Korean front companies.
The United Nations Panel of Experts reported that 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 adapt by using greater ingenuity in accessing formal banking channels. This includes 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 complaint alleges activity by the four companies that tracks this paradigm.
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 and Brian P. Hudak, and National Security Division Trial Attorney David C. Recker are litigating the case, with assistance from Paralegal Specialist Brian Rickers, Legal Assistant Jessica McCormick.
Payza and Patel Brothers Plead Guilty to Conspiring to Launder Money and Operating an Unlicensed Money Service BusinessRead the Press Release
WASHINGTON – Firoz Patel and his brother, Ferhan Patel, the founders and operators of Payza.com, AlertPay.com and Egopay.com, and the company MH Pillars doing business as Payza pled guilty to conspiring to launder money and operating an Internet-based unlicensed money service business that processed more than $250 million in illicit transactions. Firoz Patel also pled guilty to one count of conspiring to launder monetary instruments for charges related to a case out of the Middle District of Tennessee.
The plea, which took place July 17, 2020, in the United States District Court for the District of Columbia, was announced by Acting U.S. Attorney Michael R. Sherwin and Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.
Firoz Patel, 46, and Ferhan Patel, 39, are Canadian citizens, who operated Payza from offices in Canada. Payza was a money transmitting business, which transferred funds for a fee on behalf of customers across the globe to people within the United States and locations abroad.
As part of the plea, the Patel brothers and MH Pillars, Ltd., agreed to forfeit more than $12.5 million. 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 that were “Cyclers” and “MLMs” 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 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/servicing of pyramid and Ponzi schemes.
The defendants further admitted that Payza struggled to maintain relationship 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 $250,000,000 to be illegally transmitted and to failing to conduct proper due diligence of their customers. The defendant lastly acknowledged that their actions were done willfully, knowingly, and with the specific intent to violate the law.
The Honorable Ketanji B. Jackson scheduled the sentencing for November 10, 2020.
Further information for victims is available at https://www.justice.gov/usao-dc/victim-witness-assistance/obopay-payza.
This case was investigated by Department of Homeland Security, Immigration and Customs Enforcement, Washington Field Office, with assistance from the D.C. Financial Crimes Task Force. The case was prosecuted by Assistant U.S. Attorneys Zia Faruqui and Arvind Lal and former Assistant U.S. Attorneys Kate Connelly and John Marston, with assistance from Paralegal Specialist C. Rosalind Pressley and former Paralegal Specialist Toni Donato; Victim/Witness Advocates Yvonne Bryant and Tonya Jones; Document Management Analyst Basizette Stribling; Legal Assistant Jessica McCormick; and Thomas Royal and Joshua Ellen from the Litigation Support Section.
Man Indicted on Charges Related to Shooting of the Embassy of CubaRead the Press Release
WASHINGTON – Alexander Alazo, 42, of Middletown, Pennsylvania, and Aubrey, Texas, was indicted today by a federal grand jury, which charged him with multiple offenses related to his shooting of the Embassy of Cuba in Washington, D.C., announced Acting U.S. Attorney Michael R. Sherwin; Special Agent in Charge of the Washington Field Division of the U.S. Secret Service Matthew Miller; Todd J. Brown Director of the U.S. Diplomatic Security Service; and Peter Newsham, Chief of the Metropolitan Police Department.
Alazo was arrested on April 30, 2020, and was charged by criminal complaint with a violent attack on a foreign official or official premises using a deadly weapon (18 U.S.C. § 112(a)), willfully injuring or damaging property belonging to or occupied by a foreign government in the United States (18 U.S.C. § 970(a)), and interstate transportation of a firearm and ammunition with intent to commit a felony (18 U.S.C. § 924(b)). On May 1, 2020, U.S. Magistrate Judge G. Michael Harvey detained Alazo without bond pending trial. Today, a federal grand jury returned an Indictment against Alazo charging him with four federal offenses, the three for which he was charged by criminal complaint, and an additional charge for using, carrying, brandishing and discharging a firearm during a crime of violence (18 U.S.C. § 924(c)).
The criminal complaint and Indictment stem from an incident in the early hours of April 30, 2020, when Alazo fired approximately 32 rounds of an assault-style weapon at the Embassy of Cuba in Washington, D.C., which was occupied at the time of the offense. Although the Embassy of Cuba suffered both exterior and interior damage, no one was injured in the attack. Alazo was immediately apprehended by the Metropolitan Police Department (MPD) without incident, and the weapon used in the shooting was recovered, as was an accelerant-soaked Cuban flag.
Both the criminal complaint and the Indictment are formal accusations of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty. If convicted, Alazo faces a mandatory sentence of at least ten years in prison for the charge of discharging a firearm during a crime of violence. The crime of a violent attack on a foreign official or official premises using a deadly weapon and the crime of willfully injuring or damaging property belonging to or occupied by a foreign government in the United States both carry a maximum sentence of 10 years in prison, a fine of up to $250,000, and not more than three years of supervised release. The crime of interstate transportation of a firearm and ammunition with intent to commit a felony carries a maximum sentence of five years in prison a fine of up to $250,000, and not more than one year of supervised release.
“We commend the efforts of local and federal law enforcement who intervened quickly to protect lives and reduce damage to the property of a foreign government present in the United States,” said Acting U.S. Attorney Sherwin. “This investigation and prosecution is a testament to the commitment of American law enforcement to thwart the efforts of any individual who would target with violence any foreign embassy in the United States.”
“The Diplomatic Security Service is firmly committed to ensuring the safety and security of foreign missions in the United States,” said Director Brown. “We take our responsibilities outlined in the Vienna Convention seriously.”
“Our city has experienced far too many tragic outcomes when someone fires a weapon indiscriminately in our community,” said Metropolitan Police Department Chief Peter Newsham. “With this indictment, it is our hope that the criminal justice system holds this individual accountable.”
In announcing the Indictment, Acting U.S. Attorney Sherwin, Special Agent in Charge Miller, and DSS Director Brown commended the work of those who investigated the case from the Secret Service, the Diplomatic Security Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the MPD. Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Jason McCullough and Stuart Allen, Special Assistant U.S. Attorney Nicole Hutchinson, and Paralegal Specialist Bria Cunningham.
Convicted Money Launderer Pleads Guilty to Defrauding Bank While He Was Serving Term of Supervised ReleaseRead the Press Release
WASHINGTON – Deallto McQuil Key Davis, 25, of Maryland, pled guilty today to conspiring to defraud Wells Fargo Bank out of hundreds of thousands of dollars, announced Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the Federal Bureau of Investigation’s (FBI) Washington Field Office Criminal Division.
Davis pled guilty to one count of conspiracy to commit bank fraud, in violation of 18 U.S.C. § 371, in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum sentence of five years in prison. Under federal sentencing guidelines, Davis faces a likely recommended sentence of 24 to 30 months in prison. The plea agreement calls for Davis to pay $144,117 in restitution and the same amount in a forfeiture money judgment.
In 2015, Davis was convicted of conspiracy to commit money laundering in federal court in Virginia. He was sentenced to six months in prison and three years of supervised release for that offense.
From January 2018 through April 2018, while he was on supervised release, Davis conspired with others to defraud Wells Fargo Bank. The conspiracy involved Davis traveling to Wells Fargo ATMs in the District of Columbia, Maryland, and Virginia, depositing worthless checks into accounts belonging to other account holders, and causing the ATMs to malfunction. The checks Davis deposited were ultimately dishonored by the issuing banks, but in some cases, any hold that Wells Fargo placed on the deposited checks expired before Wells Fargo discovered the fraud. In total, Davis used Wells Fargo ATMs to conduct 24 fraudulent check deposits totaling approximately $390,000 into various Wells Fargo accounts. Participants in the conspiracy accessed approximately $144,000 from the accounts before Wells Fargo discovered the fraud.
The Honorable Trevor N. McFadden accepted Davis’ guilty plea and scheduled his sentencing for October 8, 2020.
In announcing the plea, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those from the FBI’s Washington Field Office who investigated the case. They also expressed appreciation to Paralegal Specialists Mariela Andrade and Amanda Rohde. Finally, they commended the work of former Assistant U.S. Attorney Anthony Saler, and Assistant U.S. Attorneys Kondi Kleinman and David Kent, for prosecuting the case.
U.S. Attorney's Office for the District of Columbia Presents Annual Youth Summit on July 17Read the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia teams up with our local and federal law enforcement partners and community-based organizations to host the Tenth Annual “Breaking the Silence on Youth Violence Youth Summit,” on Friday, July 17, 2020, at The Catholic University of America in the Hartke Theater. Due to the global pandemic, this year’s youth summit was presented for the first time virtually via Zoom. This year’s summit broke attendance records with 659 youth logged on to participate.
Acting U.S. Attorney Michael R. Sherwin gave the welcome address to the youth and spoke about the tragic death of George Floyd and how law enforcement can reevaluate how to more effectively balance First Amendment rights and violence that may be associated with protests. He also expressed how critical it is to communicate with the youth, especially during times such as these. Acting U.S. Attorney Sherwin also recognized and congratulated the 13 youth winners of the 2020 United States Attorney’s awards.
The free Summit focuses on gun violence and mental health issues and feature dynamic speakers, entertainment, prizes, invaluable information and resources.
For the past nine years, the U.S. Attorney’s Office has collaborated with its partners to host the Youth Summit. Past Summits have included sessions that highlight the causes and consequences of youth violence, challenge youth participants to make better decisions, and emphasize the importance of cooperating with law enforcement.
This year’s Youth Summit featured virtual Zumba and public service announcements on how to stay healthy during this time of crisis. Staff from the U.S. Attorney’s Office presented valuable information on topics such as “Know Your Rights,” “Mental Health” and “Internet Safety.” There was also a moment of silence for victims of gun violence.
In addition, there was a Youth Art Contest in which the theme urges young people to reflect in their artwork ways that they can effectuate change in their communities.
This year’s partners include, East of the River Family Collaborative, Hillcrest Family and Child Services Organization, Court Services and Offender Supervision Agency, Marion Barry Summer Youth Employment Program, D.C. Prevention Centers, the Metropolitan Police Department, the D.C. Department of Parks and Recreation, D.C. Department of Behavioral Sciences and Health, the D.C. Office of the Attorney General, The Flava Show, and the Foundation for a Drug-Free World.
This year’s Youth Summit was a tremendous success. For more information, contact Director of Community Outreach, Wendy Pohlhaus (202)252-6930 or [email protected]. You can also view the video of the summit on YouTube using the following link: https://www.youtube.com/watch?v=6OJpGh4rjeA&t=52s.
Howard University Graduate Pleads Guilty to Defrauding Financial Aid OfficeRead the Press Release
WASHINGTON – Brian Johnson, 35, of Washington, D.C., pled guilty today for his role in defrauding Howard University out of more than $100,000, announced Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Washington Field Office’s Criminal Division.
Johnson pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 371, in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum sentence of five years in prison. Under federal sentencing guidelines, Johnson faces a likely recommended sentence of 10 to 16 months in prison. The plea agreement calls for Johnson to pay $107,697.75 in restitution and $53,849 in a forfeiture money judgment.
According to the statement of offense filed with the Court, Johnson earned a Bachelor of Science degree and a Master of Business Administration from Howard University. From 2011 through 2016, he worked in the school’s Financial Aid Office. He served as the Associate Director of Financial Aid from 2014 through August 2016. In the fall of 2016, a co-conspirator, who worked at Howard from 2011 through 2017 in the Financial Aid Office and then the Bursar’s Office, proposed a scheme to Johnson in which the co-conspirator would cause fraudulently-obtained money to be sent from Howard University to Johnson, with Johnson then kicking back half of the proceeds to the co-conspirator. As part of the scheme, the co-conspirator applied fraudulent financial aid awards onto Johnson’s student profile even though he was no longer a student or employed at the school. As a result, the co-conspirator caused the University to issue $107,697.75 to Johnson’s bank account between November 2016 and May 2017. Johnson admitted sharing half of the fraud proceeds with the co‑conspirator in the form of cash or electronic payments.
Chief Judge Beryl A. Howell accepted Johnson’s guilty plea and scheduled his sentencing for September 25, 2020.
In announcing the plea, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those from the FBI’s Washington Field Office who are involved in this ongoing investigation. They also expressed appreciation for the work of Paralegal Specialist Mariela Andrade and former Paralegal Specialist Brittany Phillips. Finally, they commended the work of Assistant U.S. Attorney Kondi J. Kleinman.
District Man Sentenced to Five Years in Prison for Involuntary ManslaughterRead the Press Release
WASHINGTON – Edward Banks, 47 of Washington, D.C. was sentenced today to five years of incarceration for involuntary manslaughter. The announcement was made by the Acting United States Attorney, Michael R. Sherwin and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
On February 24, 2020, Banks pled guilty in the Superior Court of the District of Columbia on one count of Involuntary Manslaughter. He was sentenced by the Honorable Juliet McKenna on July 17, 2020. Following his prison term, he will serve five years of supervised release.
On August 18, 2019, the defendant entered a homeless shelter located at 2700 Martin Luther King Avenue, SE. At a certain point, the defendant was walking down a hallway in the shelter when he came upon the decedent, Mr. Abraham Weldemichael, who was standing outside the bathroom door. The defendant became angry at the decedent and took an aggressive posture. The defendant then punched Mr. Weldemichael in the face once and fled the scene. Mr. Weldemichael collapsed to the ground and did not move. Mr. Weldemichael’s unconscious body was on the ground for approximately six minutes until he was eventually discovered by security staff. Medical personnel arrived at the scene and Mr. Weldemichael was transported to George Washington Hospital. Upon arrival, he was admitted in critical condition and it was determined that he was suffering from swelling and bleeding in the brain. He eventually succumbed to his injuries and was pronounced dead on August 21, 2019 at 2:32 am.
In announcing the sentence, Acting U.S. Attorney Sherwin commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant United States Attorney Shehzad Akhtar, Paralegal Specialists Lashone Samuels; Victim Witness Specialist Jennifer Allen and Investigative Analyst Zachary McMenamin.
UAE Company Admits to North Korean Sanctions Violations and Defrauding the U.S. Goverment, Agrees to Pay $665,000Read the Press Release
WASHINGTON – Essentra FZE Company Limited (“Essentra FZE”), a global supplier of cigarette products that is incorporated in the United Arab Emirates (“UAE”), has agreed to pay a $665,112 fine and enter into a deferred prosecution agreement with the Justice Department for conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) and defrauding the United States in connection with evading sanctions on North Korea. Today’s public filing against Essentra FZE is the first ever DOJ corporate enforcement action for violations of these regulations. Essentra FZE has also entered into a settlement agreement with the Treasury Department’s Office of Foreign Assets Control (“OFAC”).
Assistant Attorney General John C. Demers for the Justice Department’s National Security Division, Acting U.S. Attorney Michael R. Sherwin of the District of Columbia, and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office made the announcement.
In entering the deferred prosecution agreement, Essentra FZE admitted and accepted responsibility for its criminal conduct and to pay a fine. Essentra FZE also agreed to implement rigorous internal controls and to cooperate fully with the Justice Department, including by reporting any criminal conduct by an employee.
“The sanctions the United States has imposed on the North Korean regime are of the utmost importance to the national security of our nation, and the enforcement of U.S. sanctions and related financial criminal laws is a major priority of the National Security Division” said Assistant Attorney General for National Security John C. Demers. “Essentra FZE devised a criminal scheme to use a deceitful web of front companies and financial entities to manipulate U.S. banks into processing prohibited U.S. dollar transactions for the benefit of North Korea. The company has now committed to working with our prosecutors to bring those individuals responsible for these acts to justice.”
“Essentra FZE undermined the integrity of our financial system and harmed our national security by deliberately providing North Korea with coveted access to the U.S. economy,” said Acting U.S. Attorney Sherwin. “Foreign companies transacting through the U.S. financial system or overseas branches of U.S. banks must comply with U.S. sanctions or else face punishment.”
"This is an important case as it demonstrates the FBI will not hesitate to hold businesses accountable for violating sanctions involving North Korea," said Alan E. Kohler, Jr, Assistant Director of the FBI's Counterintelligence Division. "We will aggressively go after enterprises using front companies, false documents, or other illegal methods to evade sanctions. We want North Korea and private industry to know that efforts to dodge our laws will never be tolerated as business as usual."
“Today’s agreement shows that attempts to skirt U.S. sanctions, no matter how complicated the trail or how complex the scheme, will be discovered and met with serious consequences,” said Jennifer Boone, Special Agent in Charge of the FBI’s Baltimore Division. “I want to thank the FBI team. This result is a testament to their hard work.”
U.S. sanctions prevented correspondent banks in the United States and overseas branches of U.S. banks from processing wire transfers on behalf of customers located in North Korea. According to admissions and court documents, beginning in at least October 2017 and continuing until at least December 2018, Essentra FZE deceived banks in the U.S. and in the U.A.E. into processing transactions for a North Korean tobacco company. Essentra FZE and its co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus, as well as falsified shipping records.
Assuming Essentra FZE’s continued compliance with the deferred prosecution agreement, the government has agreed to defer prosecution for a period of three years, after which time, the government would seek to dismiss the charges.
Essentra Fze Admits to North Korean Sanctions and Fraud Violations, Agrees to Pay FineRead the Press Release
Essentra FZE Company Limited (Essentra FZE), a global supplier of cigarette products that is incorporated in the United Arab Emirates (UAE), has agreed to pay a $665,112 fine and enter into a deferred prosecution agreement with the Justice Department for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and defrauding the United States in connection with evading sanctions on North Korea.
Today’s public filing against Essentra FZE is the first ever Department of Justice corporate enforcement action for violations of these regulations. Essentra FZE has also entered into a settlement agreement with the Treasury Department’s Office of Foreign Assets Control (OFAC).
Assistant Attorney General John C. Demers for the Justice Department’s National Security Division, Acting U.S. Attorney Michael R. Sherwin of the District of Columbia, and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office made the announcement.
In entering the deferred prosecution agreement, Essentra FZE admitted and accepted responsibility for its criminal conduct and to pay a fine. Essentra FZE also agreed to implement rigorous internal controls and to cooperate fully with the Justice Department, including by reporting any criminal conduct by an employee.
“The sanctions the United States has imposed on the North Korean regime are of the utmost importance to the national security of our nation, and the enforcement of U.S. sanctions and related financial criminal laws is a major priority of the National Security Division” said Assistant Attorney General for National Security John C. Demers. “Essentra FZE devised a criminal scheme to use a deceitful web of front companies and financial entities to manipulate U.S. banks into processing prohibited U.S. dollar transactions for the benefit of North Korea. The company has now committed to working with our prosecutors to bring those individuals responsible for these acts to justice.”
“Essentra FZE undermined the integrity of our financial system and harmed our national security by deliberately providing North Korea with coveted access to the U.S. economy,” said Acting U.S. Attorney Sherwin. “Foreign companies transacting through the U.S. financial system or overseas branches of U.S. banks must comply with U.S. sanctions or else face punishment.”
“This is an important case as it demonstrates the FBI will not hesitate to hold businesses accountable for violating sanctions involving North Korea,” said Alan E. Kohler Jr, Assistant Director of the FBI's Counterintelligence Division. “We will aggressively go after enterprises using front companies, false documents, or other illegal methods to evade sanctions. We want North Korea and private industry to know that efforts to dodge our laws will never be tolerated as business as usual.”
“Today’s agreement shows that attempts to skirt U.S. sanctions, no matter how complicated the trail or how complex the scheme, will be discovered and met with serious consequences,” said Jennifer Boone, Special Agent in Charge of the FBI’s Baltimore Division. “I want to thank the FBI team. This result is a testament to their hard work.”
U.S. sanctions prevented correspondent banks in the United States and overseas branches of U.S. banks from processing wire transfers on behalf of customers located in North Korea. According to admissions and court documents, beginning in at least October 2017 and continuing until at least December 2018, Essentra FZE deceived banks in the U.S. and in the U.A.E. into processing transactions for a North Korean tobacco company. Essentra FZE and its co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus, as well as falsified shipping records.
Assuming Essentra FZE’s continued compliance with the deferred prosecution agreement, the government has agreed to defer prosecution for a period of three years, after which time, the government would seek to dismiss the charges.
District Man Indicted on Federal Charges for Vandalizing the Lincoln Memorial During ProtestsRead the Press Release
WASHINGTON – Micah Avery, 26, of Washington, D.C., was indicted today in federal court on charges of destruction of federal property for spray-painting the Lincoln Memorial last month, announced Acting U.S. Attorney for the District of Columbia Michael R. Sherwin and Acting Chief of the United States Park Police (USPP) Gregory T. Monahan.
The federal grand jury returned an indictment that alleges that on the afternoon of May 30, 2020, officers with the U.S. Park Police witnessed Avery graffiti the words “Yall not tired yet?” with black spray paint on the Lincoln Memorial (see photo below). Avery fled as the officers approached him. After a chase, officers apprehended and handcuffed Avery. Officers attempted to put the defendant into a patrol car, but he resisted their attempts. A crowd converged on the officers and began pushing and striking the officers. During this melee, Avery broke free and ran away. One of the officers sustained an injury to his hand. A look-out was broadcast, and Avery was located shortly thereafter by other officers back at the Lincoln Memorial, still wearing the handcuffs.
An indictment is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
“Defacing one of our country’s national monuments will not be tolerated,” said Acting U.S. Attorney Michael R. Sherwin.
In announcing the indictment, Acting U.S. Attorney Sherwin and Acting Chief Monahan commended the work of the USPP officers who apprehended Avery and are investigating the incident. The case is being prosecuted by Assistant U.S. Attorney James B. Nelson of the U.S. Attorney’s Office for the District of Columbia.
Washington, D.C. General Contractor Charged with COVID-Relief FraudRead the Press Release
The owner of a residential construction contracting firm based in Washington, D.C., was charged with allegedly submitting fraudulent documents to a bank in connection with applications seeking more than $400,000 in a forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Acting U.S. Attorney Michael R. Sherwin for the District of Columbia, Special Agent in Charge James A. Dawson of the FBI Washington Field Office’s Criminal Division, Inspector General Hannibal “Mike” Ware of the Small Business Administration's Office of Inspector General (SBA OIG), and J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
Oludamilare Olugbuyi, 40, of Washington, D.C., was charged in a federal criminal complaint filed in the District of Columbia with making false statements to a financial institution. According to the complaint, Olugbuyi submitted several fake and fraudulent documents to a financial institution in support of two PPP loan applications seeking more than $400,000 in forgivable loans for a construction firm that he owned. Specifically, Olugbuyi submitted what purported to be several IRS Forms 1099-MISC reporting hundreds of thousands of dollars in disbursements made to independent contractors.
The complaint alleges that the social security numbers reflected on the forms were either invalid or assigned to other people. In addition, Olugbuyi allegedly submitted to the financial institution what purported to be a tax return reporting $175,565 in adjusted gross income for tax year 2019. According to IRS records, however, on April 14, 2020, Olugbuyi filed an IRS Form 1040 reporting $1 in total income for 2019. This document, known as a “non-filer return,” qualified Olugbuyi to receive a $1,200 Coronavirus Aid, Relief, and Economic Security Act (CARES) economic impact payment.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christine Macey are prosecuting the case. The Justice Department acknowledges and thanks the FBI, TIGTA, and the SBA OIG for their efforts investigating this matter.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Man Indicted by Federal Grand Jury for Attempting to Burn Down Metropolitan Police Department StationRead the Press Release
WASHINGTON – Jerritt Jeremy Pace, 39, of Washington, D.C., was indicted today by a federal grand jury, charging him with multiple offenses related to his attempt to burn down a police precinct, announced Acting U.S. Attorney Michael R. Sherwin; Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Ashan M. Benedict; and Chief of the Metropolitan Police Department (MPD) Peter Newsham.
Pace was arrested on May 29, 2020. On June 11, 2020, Pace was charged by Criminal Complaint with receiving an explosive in interstate commerce, using an instrumentality of interstate commerce to threaten the use of explosives, and attempted arson. On June 12, 2020, the Honorable U.S. Magistrate Judge Robin M. Meriweather held Pace without bond pending trial. Today, a federal grand jury returned an Indictment against Pace charging him with three federal arson and explosives offenses.
The Criminal Complaint and Indictment stem from an incident on or about May 29, 2020, when Pace announced on social media his intent to burn down a police station. Pace encouraged rioting against law enforcement and suggested that his followers go to MPD’s Fourth District Station, located at 6001 Georgia Avenue N.W., Washington, D.C., to burn the station and “riot with the rest of the nation.” That morning, around 6 o’clock, Pace filled a plastic laundry detergent container with gasoline and a wick and ignited it in front of the Fourth District Station. Although the physical building remained unharmed and no one was injured, the container exploded and burned on the sidewalk. Pace was immediately apprehended by an off-duty detective and police officer.
Both the Criminal Complaint and the Indictment are formal accusations of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty. If convicted, Pace faces a maximum sentence of 10 years in prison for each count, a fine of up to $250,000, and three years of supervised release.
“While the United States Attorney’s Office for the District of Columbia acknowledges the First Amendment right of individuals to protest peacefully, conduct that poses a grave risk to law enforcement, peaceful protestors, and community members alike will be prosecuted,” said Acting U.S. Attorney Michael R. Sherwin. “The quick investigative efforts of ATF and MPD thwarted a dangerous person’s attempt to use a makeshift gasoline bomb to potentially cause – in addition to property damage – serious bodily harm or death to law enforcement officers and members of our community.”
“Today’s indictment is a testament to the dedicated investigative work of the ATF/DC Arson & Explosives Task Force, in partnership with the Metropolitan Police Department and DC Fire Department. Swift identification of violent offenders is key to stopping criminal acts that can destroy property, harm people, and take lives,” said ATF Washington Special Agent in Charge Ashan Benedict. “ATF will continue to work closely with our law enforcement partners to ensure the safety of our communities and the officers who serve them.”
In announcing the Indictment, Acting U.S. Attorney Sherwin, Special Agent in Charge Benedict, and Chief Newsham commended the work of those who investigated the case. Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys James B. Nelson and Christopher A. Berridge, Paralegal Specialist Candace Battle, and Legal Assistants Peter Gaboton and Teesha Tobias.
Warrant and Complaint Seek Seizure of All Iranian Gasoil aboard Four Tankers Headed to Venezuela Based on Connection to IRGCRead the Press Release
WASHINGTON – A forfeiture complaint and warrant were filed in the U.S. District Court for the District of Columbia alleging that all petroleum-product cargo aboard the Bella with international maritime organization (IMO) number 9208124, the Bering with IMO number 9149225, the Pandi with IMO number 9105073, and the Luna with IMO number 9208100 are subject to forfeiture based on the terrorism forfeiture statute.
John Demers, Assistant Attorney General, National Security Division; Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia; Steven W. Cagen, Special Agent in Charge, Denver, Colorado, Homeland Security Investigations (HSI); Rainer S. Drolshagen, Special Agent in Charge, Minneapolis, Minnesota, Federal Bureau of Investigation, made the announcement today.
The documents allege a scheme involving multiple parties affiliated with the IRGC to covertly ship Iranian gasoil, obtained via ship-to-ship transfers, to Venezuela. The shipments are alleged to be a “source of influence” for the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization. The documents allege that profits from petroleum sales support the IRGC’s full range of nefarious activities, including the proliferation of weapons of mass destruction and their means of delivery, support for terrorism, and a variety of human rights abuses, at home and abroad. There are approximately 302,502 barrels of Iranian gasoline currently on board the Bella, approximately 302,522 barrels of Iranian gasoline currently on board the Bering, approximately 259,700 barrels of Iranian gasoline currently on board the Luna, and approximately 298,484 barrels of Iranian gasoline currently on board the Pandi. United States District Judge James E. Boasberg issued a warrant to seize all Iranian gasoline on these four vessels, based on a probable cause showing of forfeitability. The warrant commands the property to be brought to the sole jurisdiction of the U.S. District Court for the District of Columbia.
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. Funds successfully forfeited based on terrorism authorities are in part directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/).
In announcing the forfeiture complaint, Assistant Attorney General Demers, Acting U.S. Attorney Sherwin, Special Agent in Charge Cagen, and Special Agent in Charge Drolshagen commended the work of those who investigated the case from HSI and FBI. Finally, they acknowledged the work of Assistant U.S. Attorneys Zia Faruqui, Brian Hudak, and Stuart Allen; National Security Division, Counterintelligence and Export Control Section, Deputy Chief Elizabeth Cannon and Trial Attorney David Lim; and United States Attorney’s Office for the District of Columbia Paralegal Liz Swienc and Legal Assistant Jessica McCormick.
Warrant and Complaint Seek Seizure of All Iranian Gasoil Aboard Four Tankers Headed to Venezuela Based on Connection to IRGCRead the Press Release
A forfeiture complaint and warrant were filed in the U.S. District Court for the District of Columbia alleging that all petroleum-product cargo aboard the Bella with international maritime organization (IMO) number 9208124, the Bering with IMO number 9149225, the Pandi with IMO number 9105073, and the Luna with IMO number 9208100 are subject to forfeiture based on the terrorism forfeiture statute.
John C. Demers, Assistant Attorney General, National Security Division; Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia; Steven W. Cagen, Special Agent in Charge, Denver, Colorado, Homeland Security Investigations (HSI); Rainer S. Drolshagen, Special Agent in Charge, Minneapolis, Minnesota, Federal Bureau of Investigation, made the announcement today.
The documents allege a scheme involving multiple parties affiliated with the IRGC to covertly ship Iranian gasoil, obtained via ship-to-ship transfers, to Venezuela. The shipments are alleged to be a “source of influence” for the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization. The documents allege that profits from petroleum sales support the IRGC’s full range of nefarious activities, including the proliferation of weapons of mass destruction and their means of delivery, support for terrorism, and a variety of human rights abuses, at home and abroad. There are approximately 302,502 barrels of Iranian gasoline currently on board the Bella, approximately 302,522 barrels of Iranian gasoline currently on board the Bering, approximately 259,700 barrels of Iranian gasoline currently on board the Luna, and approximately 298,484 barrels of Iranian gasoline currently on board the Pandi. United States District Judge James E. Boasberg issued a warrant to seize all Iranian gasoline on these four vessels, based on a probable cause showing of forfeitability. The warrant commands the property to be brought to the sole jurisdiction of the U.S. District Court for the District of Columbia.
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. Funds successfully forfeited based on terrorism authorities are in part directed to the the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/).
In announcing the forfeiture complaint, Assistant Attorney General Demers, Acting U.S. Attorney Sherwin, Special Agent in Charge Cagen, and Special Agent in Charge Drolshagen commended the work of those who investigated the case from HSI and FBI. Finally, they acknowledged the work of Assistant U.S. Attorneys Zia Faruqui, Brian Hudak, and Stuart Allen; National Security Division, Counterintelligence and Export Control Section, Deputy Chief Elizabeth Cannon and Trial Attorney David Lim; and U.S. Attorney’s Office for the District of Columbia Paralegal Liz Swienc and Legal Assistant Jessica McCormick.
Man Charged in Federal Court for Attempting to Tear Down Statue of Andrew Jackson in Lafayette Square Amid ProtestsRead the Press Release
WASHINGTON – Jason Charter, 25, of Washington, D.C., was arrested and charged by Criminal Complaint today with destruction of federal property, announced Michael R. Sherwin, Acting U.S. Attorney; James A. Dawson, Special Agent in Charge of the Criminal Division of the Washington Field Office of the Federal Bureau of Investigation (FBI); and Gregory T. Monahan, Acting Chief of the United States Park Police (USPP).
The complaint alleges that on June 20, 2020, Charter, together with other individuals, destroyed the Albert Pike statue in Northwest, Washington, D.C., by pulling it from its base and setting it on fire. The complaint alleges that Charter was captured on video dousing the statue with a flammable liquid and then igniting it as it lay on the ground. Charter is depicted on video using the fire to light a cigarette.
The complaint further alleges that on June 22, 2020, Charter, together with other individuals, damaged and attempted to tear down the statue depicting Andrew Jackson at the Battle of New Orleans, located in Lafayette Square. The complaint further alleges that Charter was captured on video climbing up onto the statue and affixing a rope to the statue that was then used to try to pull the statue down. Three other men were previously charged with also destroying the Jackson statue.
The defendant appeared today before United States Magistrate Judge Deborah A. Robinson of the United States District Court for the District of Columbia, where he was released pending further court proceedings. A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
“While the United States Attorney's Office for the District of Columbia is committed to protecting the First Amendment right of individuals to protest peacefully, today’s additional arrest in connection with the violent destruction of federal property is a testament to our further commitment to prosecuting those criminal offenders who threaten not only property, but ultimately the safety of all through their violent acts,” said Acting U.S. Attorney Michael R. Sherwin.
“These individuals chose to engage in unlawful activity while among fellow citizens who were conducting lawful and Constitutionally protected protest activities,” said James A. Dawson, Special Agent in Charge of the Washington Field Office’s Criminal Division. “The FBI is dedicated to protecting peaceful protesters from those threatening their safety with violence and destruction of property, and where there is a federal nexus, we will investigate and hold the wrongdoers accountable.”
“This arrest is an example of excellent investigative work by the United States Park Police Criminal Investigations and the continued partnership with the FBI and the U.S. Attorney’s Office. The U.S. Park Police remains committed to protecting our icons, memorials, and park resources” said United States Park Police Acting Chief Gregory T. Monahan.
In announcing the charges, Acting U.S. Attorney Sherwin, Special Agent in Charge Dawson, and Acting Chief Monahan commended the work of the FBI agents and USPP officers who apprehended the four men and are investigating the incident. This joint investigation was conducted by the United States Park Police and the FBI Washington Field Office’s Violent Crime Task Force. Significant assistance was also provided by the Washington Metropolitan Police Department. The Violent Crime Task Force is charged with investigating acts of violence impacting the District of Columbia. Tips associated with this matter or other acts of violence can be reported to the FBI at 202-278-2000 or tips.fbi.gov.
Connecticut Man Arrested, Charged, and Detained for Distributing Child Pornography Videos to Online GroupRead the Press Release
WASHINGTON – Edward Galpin was detained yesterday pending trial on charges of conspiracy to distribute and distribution of child pornography, announced Acting United States Attorney Michael R. Sherwin and Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation (FBI) Washington Field Office’s Criminal Division. This case was investigated by special agents of the Federal Bureau of Investigation’s Washington Field Office and the Metropolitan Police Department's Child Exploitation and Human Trafficking Task Force with assistance from the Federal Bureau of Investigation’s New Haven Field Office.
Galpin, age 38, of Stratford, Connecticut, was arrested after he was charged in a criminal complaint filed in the District of Columbia last week. The complaint alleges that, in October of 2019, Galpin joined an online messaging group devoted to the exchange of child pornography and shared numerous sexually explicit videos of young children with the group. The complaint alleges that Galpin also had private conversations with an undercover officer working in the District of Columbia, sending the undercover officer a video of a female (under age 18) undressing. Galpin told the undercover that he had used a spy camera to make this recording.
The complaint further alleges that, in June, Galpin reached out to a different undercover officer, who was in a Connecticut-based teen chatroom. The undercover officer told Galpin s/he was a 14-year old female. Galpin set up a meeting with this purported 14-year old on June 25, 2020. When asked whether he had done this before, Galpin responded, “twice.” Galpin arrived at the arranged meeting place, went through a drive-through in the area, and then drove to a nearby store.
Galpin was arrested later that same day and made an initial appearance on the complaint in the District of Connecticut. At a hearing yesterday, United States Magistrate Judge Sarah A.L. Merriam detained Galpin pending trial. He has a preliminary hearing in the District of Connecticut set for July 9, 2020.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant U.S. Attorney April Russo with paralegal contractor Kenny Nguyen and with assistance from the U.S. Attorney’s Office in the District of Connecticut.
Four Men Charged in Federal Court for Attempting to Tear Down Statue of Andrew Jackson in Lafayette Square Amid ProtestsRead the Press Release
WASHINGTON – Lee Michael Cantrell, 47, of Virginia; Connor Matthew Judd, 20, of Washington, D.C.; Ryan Lane, 37, of Maryland; and Graham Lloyd, 37, of Maine, were charged by criminal complaint yesterday with destruction of federal property, announced Acting U.S. Attorney Michael R. Sherwin, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Washington Field Office’s Criminal Division James A. Dawson, and Acting Chief of the United States Park Police (USPP) Gregory T. Monahan.
The complaint, unsealed today, alleges that on June 22, 2020, the four men along with other unidentified individuals, damaged and attempted to tear down the statue depicting Andrew Jackson located in Lafayette Square. The complaint further alleges that Cantrell was captured on video attempting to pry the statue off its base with a wooden board and trying to pull the statue down with the aid of a yellow strap. The complaint alleges that Judd is seen on video trying to pull down the statue, and that Lane is seen on video affixing a rope to one part of the statue and then pulling on another rope tied to the statue. The complaint also alleges that video of the incident shows Lloyd as he breaks off and destroys the wheels of cannons located at the base of the statue. Lloyd is also captured on video pulling on ropes in an effort to topple the statue, and handing a hammer to an unidentified individual involved in the incident.
Judd was arrested on Friday and appeared in Superior Court of the District of Columbia today. The matter will be transferred to the United States District Court for the District of Columbia on Monday, June 29, 2020, where Judd will make his initial appearance before United States Magistrate Judge Robin M. Meriweather. The remaining defendants have not yet been apprehended.
A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
“The United States Attorney’s Office for the District of Columbia will not stand idly by and allow our national monuments to be vandalized and destroyed. This Office remains steadfast in its commitment to protect the sacred First Amendment right of individuals to peacefully protest, but these charges should serve as a warning to those who choose to desecrate the statues and monuments that adorn our nation’s capital: your violent behavior and criminal conduct will not be tolerated,” said Acting U.S. Attorney Michael R. Sherwin.
“The FBI respects the peaceful exercise of First Amendment rights, but we will not allow opportunists to hijack peaceful protests to incite violence and destruction of property,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division. “We will continue to work with our partners to enforce federal laws prohibiting damage to government facilities and property.”
“Members of the United States Park Police are working tirelessly to provide quality law enforcement, safeguard lives, protect our national treasures and symbols of democracy, and preserve the natural and cultural resources entrusted to its service. We are committed to ensuring that citizens are able to freely exercise their constitutional rights in a safe and peaceful manner. The deplorable acts of violence and destruction of property are unacceptable and will continue to be pursued through ongoing collaborative investigations and enforcement efforts,” said Gregory T. Monahan, Acting Chief of the United States Park Police.
In announcing the charges, Acting U.S. Attorney Sherwin, Special Agent in Charge Dawson, and Acting Chief Monahan commended the work of the FBI agents and USPP officers who apprehended the four men and are investigating the incident. The case is being prosecuted by Assistant U.S. Attorneys Gilead Light, Sara Vanore, and Laura Crane of the U.S. Attorney’s Office for the District of Columbia.
This joint investigation was conducted by the United States Park Police and the FBI Washington Field Office’s Violent Crime Task Force. Significant assistance was also provided by the Washington Metropolitan Police Department. The Violent Crime Task Force is charged with investigating acts of violence impacting the District of Columbia. Tips associated with this matter or other acts of violence can be reported to the FBI at 202-278-2000 or tips.fbi.gov.
Local Man Pleads Guilty to Stealing $124,758.21 from Former EmployerRead the Press Release
WASHINGTON – Darryl Gale, 52, a former civilian employee of the Army Ten-Miler pled guilty to stealing vendor funds from the Army Ten-Miler’s race and exposition.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin, and James A. Dawson, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
Gale pled guilty yesterday via teleconferencing in the U.S. District Court for the District of Columbia before the Honorable Emmet G. Sullivan to a one-count Information charging him with a wire fraud scheme. Gale is scheduled to be sentenced by the Honorable Emmet G. Sullivan on November 4, 2020. He faces a possible sentence of 15-21 months and will be required to pay restitution in the amount of $124,758.21, and a forfeiture money judgment.
According to the Statement of Offense, the Army Ten-Miler is an annual race and exposition that has been conducted in the District of Columbia by the U.S. Army Military District of Washington for the prior 35 years. Each year, the race and pre-race exposition attracts over 35,000 runners and 900 teams from around the world. Participants include military, civilians, wheel chair athletes and wounded warrior athletes. The Army Ten-Miler’s mission is to support Army outreach, build morale, and promote physical fitness. The Army Ten-Miler is a category-B Army Morale, Welfare, and Recreation (“MWR”) event, which is open to the public. All race proceeds benefit MWR programs. The Army Ten-Miler is organized and administered each year by a staff of employees based out of an office located in Washington, D.C.
Between 2012 and November 2018, Gale was employed as a civilian employee at the Army-Ten Miler office. Gale’s main responsibilities included selling exposition booth rentals and managing logistics on the day of the exposition and race. Gale devised a scheme to defraud the Army Ten-Miler by making false representations to exposition vendors in order to obtain vendor fees. Gale cashed and deposited into his own personal bank accounts checks, money orders, and payments through third-party payment processors from vendors who had purchased booths for an Army Ten-Miler exposition. The funds were all intended for and were due to the Army Ten-Miler as payments of fees for these booths, but Gale cashed these payments or deposited the funds into his own personal bank accounts for his own use. Through this scheme, Gale stole at least $124,758.21 in vendor fees between January 2017 and November 2018.
In announcing the plea, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those who investigated the case from the FBI’s Washington Field Office. They acknowledged the efforts of those who are handling the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists C. Rosalind Pressley and Amanda Rohde.
Finally, they commended the work of Assistant U.S. Attorneys Diane Lucas and Kathryn Rakoczy of the Fraud and Public Corruption Section, of the U.S. Attorney’s Office for the District of Columbia, who prosecuted the case.
Former D.C. Tax Official Pleads Guilty to Accepting Bribes to Erase Millions in Tax LiabilityRead the Press Release
WASHINGTON—A former official of the D.C. Office of Tax and Revenue (OTR) pled guilty today for participating in corruption schemes in which he accepted at least $75,000 in exchange for fraudulently erasing tax liability, inflicting more than $3 million in losses upon the District of Columbia.
The announcement was made by Acting U.S. Attorney Michael R. Sherwin, Special Agent in Charge James A. Dawson of FBI’s Washington Field Office, District of Columbia Inspector General Daniel W. Lucas, and District of Columbia Chief Financial Officer Jeffrey S. DeWitt.
Vincent Slater, 42, of Temple Hills, MD, pled guilty before the Honorable Reggie B. Walton in the District Court for the District of Columbia. The charge of bribery carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Slater faces a possible range of 87 to 108 months’ imprisonment. A sentencing date has not yet been set.
The investigation into Slater’s schemes—which, to date, has resulted in the guilty pleas of two taxpayers and the indictment of two taxpayers and another former District of Columbia government employee—began in 2017 when internal auditors from the Office of the Chief Financial Officer noticed suspicious adjustments to certain taxpayers’ accounts.
In announcing Slater’s guilty plea, Acting U.S. Attorney Sherwin stated, “Corruption at any level of government should not be tolerated. Our Office is committed to holding accountable officials who abuse the public trust to line their pockets with taxpayer dollars. We will vigorously pursue corruption at all levels of government, and especially corruption targeted at the citizens of the District of Columbia.”
According to the statement of offense, between 2012 and 2017, Slater brokered bribery agreements with various bar and nightclub owners—including Davoud Jafari, 69, of Washington, D.C., and Andre De Moya, 47, Arman Amirshahi, 49, and Charles Zhou, 47, of Maryland—through a former employee of the D.C. Department of Consumer and Regulatory Affairs, Anthony Merritt, 45, of Washington, D.C. Slater then used his position as a manager in OTR’s Adjustment Unit to fraudulently eliminate or reduce the tax liabilities of their businesses, or otherwise act to fraudulently benefit bribe-paying taxpayers.
As part of his guilty plea, Slater admitted to causing a total loss of more than $3 million to the District. Slater explained that typically, he and Merritt agreed to solicit bribe payments equaling approximately half of the amount the taxpayer sought to evade paying, and then to split the bribe proceeds amongst themselves. Slater further admitted that $75,000 in cash deposits he made into his bank accounts during the scheme were bribe proceeds.
Taxpayers Amirshahi and Zhou previously pled guilty for their roles in the bribery schemes and are awaiting sentencing. De Moya, Jafari, and Merritt were indicted by a grand jury in the District of Columbia in 2019 and their cases have not yet been set for trial.
Slater’s plea marked the second time in two weeks that former D.C. tax officials have pled guilty to bribery. On June 12, 2020, Bobby Tucker, 64, of Virginia, former Chief of Collections at OTR, pled guilty to a federal bribery charge stemming from a scheme in which, after departing his OTR position to pursue private business opportunities, he paid bribes to an OTR official in order to reduce the tax liabilities of a business he consulted and to take other actions to benefit Tucker’s business interests. Tucker admitted that he agreed to pay an OTR official, who was working as a confidential source, to obtain referrals of city taxpayers with outstanding tax liabilities. Tucker would then attempt to broker a bribery agreement whereby he would be paid by a business owner to facilitate a bribe to the OTR official to fraudulently reduce or eliminate tax liabilities. The Honorable Beryl A. Howell scheduled Tucker’s sentencing for September 11, 2020.
These cases are being investigated by the FBI’s Washington Field Office and the District of Columbia Officer of the Inspector General, with substantial assistance by the District of Columbia Office of the Chief Financial Officer, Office of Integrity and Oversight. Assistant United States Attorneys Emily Miller and Molly Gaston of the Fraud and Public Corruption Section are prosecuting the Slater case on other individuals involved in his corruption scheme, and Assistant United States Attorney Peter Lallas, also of the Fraud and Public Corruption Section, is prosecuting the Tucker case.
Howard University Hospital Employee and Upper Marlboro Woman Charged in Separate Criminal Complaints with Defrauding MedicaidRead the Press Release
WASHINGTON – Folashade Adufe Horne, 51, of Laurel, Maryland, and Sikirat Adunni Brown, 58, of Upper Marlboro, Maryland, were both arrested today after being charged in federal court with defrauding the D.C. Medicaid program, announced Acting U.S. Attorney Michael R. Sherwin; James A. Dawson, 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.
Horne and Brown are the third and fourth individuals charged this week with defrauding D.C. Medicaid. Yesterday, Susan Engonwei Tingwei, a University of Maryland Law School Graduate, and Janet Akindipe, an employee at the National Institutes of Health (“NIH”), were arrested.
Horne, Brown, Tingwei, and Akindipe each were charged in separate criminal complaints with health care fraud and health care false statements for falsely claiming to have provided personal care aide (“PCA”) services to D.C. Medicaid beneficiaries. Horne is alleged to have defrauded Medicaid between January 2014 and the present. Brown is alleged to have defrauded Medicaid between November 2014 and the present. Tingwei is alleged to have defrauded Medicaid between January 2015 and September 2018. Akindipe is alleged to have defrauded Medicaid between January 2015 and the present.
Home health agencies employ PCAs to assist D.C. Medicaid beneficiaries with performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. PCAs are required to accurately document the hours of care that they provide to beneficiaries on timesheets and then submit those timesheets to home health agencies, which in turn bill Medicaid for services actually rendered.
According to charging documents, Horne claimed to provide PCA services to beneficiaries when she was actually working at Howard University Hospital, where she has been employed since 2007. D.C. Medicaid claims data revealed that on 204 separate days in 2014, she purportedly provided 20 or more hours of PCA services to several Medicaid beneficiaries while working for various home health agencies, including 28 separate days where she claimed to work 32 hours. Charging documents also allege that Horne claimed to provide PCA services to D.C. Medicaid beneficiaries when she was traveling outside the United States.
Charging documents allege that Brown purported to provide PCA services in excess of twenty hours on a given day and also to multiple beneficiaries in overlapping hours. On 335 occasions between November 2014 and October 2015, Brown claimed that she provided between 20 and 38 hours of PCA services each day. She also asserted that she provided 176 hours of services during a seven-day period even though there are only 168 hours in a week. In addition, she is alleged to have paid kickbacks to at least one beneficiary to get that person to sign fraudulent timesheets.
Charging documents indicate that Tingwei earned a Master of Laws degree from the University of Maryland’s Francis King Carey School of Law in May 2017. On more than 100 occasions, she is alleged to have submitted timesheets purporting to have provided PCA services in Washington, D.C., when she was scheduled to be in Baltimore attending law school classes. As part of the investigation, law enforcement agents conducted surveillance of Tingwei and also obtained cell phone records that provided her location history. Tingwei claimed to provide PCA services in Washington at times when law enforcement agents saw her in Baltimore and also when cell phone records placed her in Baltimore.
Charging documents allege that Akindipe claimed to provide PCA services to beneficiaries when she was actually working at NIH. Between working at NIH and purportedly providing PCA services, Akindipe claimed she worked more than twenty hours a day on 338 different occasions between January 2015 and October 2018. She also is alleged to have caused Medicaid to be billed for PCA services that she purportedly rendered during three separate periods of time when she was actually traveling outside the United States.
Horne, Brown, and Akindipe appear this afternoon on their respective criminal complaints before the Honorable Robin M. Meriweather in U.S. District Court for the District of Columbia. Yesterday, Tingwei was presented before Judge Meriweather. A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, but it is not evidence of guilt. Each of the defendants is presumed innocent unless proven guilty.
This week’s arrests mark a continued effort by 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 to investigate and prosecute individuals who defraud the D.C. Medicaid program.
Since October 2019, four PCAs have been sentenced in U.S. District Court for defrauding D.C. Medicaid. Mobolaji Tina Stewart, who admitted defrauding the program out of more than $500,000, was sentenced to 13 months in prison in October 2019. Nkiru Uduji, who defrauded Medicaid out of more than $500,000, was sentenced to thirty-six months’ probation in December 2019. Rose Gana, who defrauded Medicaid out of more than $400,000 was sentenced to 13 months in prison in February 2020. Temitope Ogunbiyi, who defrauded Medicaid out of more than $1 million was sentenced to 15 months in prison in February 2020. A fifth defendant, Hope Falowo, pled guilty to defrauding Medicaid out of more than $400,000 in November 2019 and is awaiting sentencing. A sixth defendant, Charlotte Etongwe, was charged via criminal complaint in June 2019. A status hearing is scheduled in her case for July 29, 2020.
The FBI, the Department of Health and Human Services’ Office of Inspector General, and the Medicaid Fraud Control Unit have investigated all of these cases and count 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].
The cases against Horne, Brown, Tingwei, and Akindipe are being prosecuted by Assistant U.S. Attorney Kondi Kleinman.
University of Maryland Law School Graduate and National Institutes of Health Employee Charged with Defrauding MedicaidRead the Press Release
WASHINGTON – Susan Engonwei Tingwei, 42, of Silver Spring, Maryland, and Janet Akindipe, 62, of Laurel, Maryland, were both arrested today after being charged in federal court with defrauding the D.C. Medicaid program, announced Acting U.S. Attorney Michael R. Sherwin; James A. Dawson, 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, District of Columbia Inspector General.
Tingwei and Akindipe were charged in separate criminal complaints with health care fraud and health care false statements for falsely claiming to have provided personal care aide (“PCA”) services to D.C. Medicaid beneficiaries. Tingwei is alleged to have defrauded Medicaid between January 2015 and September 2018. Akindipe is alleged to have defrauded Medicaid between January 2015 and the present.
Home health agencies employ PCAs to assist D.C. Medicaid beneficiaries with performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. PCAs are required to accurately document the hours of care that they provide to beneficiaries on timesheets and then submit those timesheets to home health agencies, which in turn bill Medicaid for services actually rendered.
According to charging documents, in May 2017, Tingwei earned a Master of Laws degree from the University of Maryland’s Francis King Carey School of Law. On more than 100 occasions, she is alleged to have submitted timesheets purporting to have provided PCA services in Washington, D.C., when she was scheduled to be in Baltimore attending law school classes. As part of the investigation, law enforcement agents conducted surveillance of Tingwei and also obtained cell phone records that provided her location history. Tingwei claimed to provide PCA services in Washington at times when law enforcement agents saw her in Baltimore and also when cell phone records placed her in Baltimore.
Charging documents allege that Akindipe, a full-time employee at the National Institutes of Health (“NIH”), claimed to provide PCA services to beneficiaries when she was actually working at NIH. Between working at NIH and purportedly providing PCA services, Akindipe claimed to have worked more than twenty hours a day on 338 different occasions between January 2015 and October 2018. She also is alleged to have caused Medicaid to be billed for PCA services that she purportedly rendered during three separate periods of time when she was actually traveling outside the United States.
Tingwei appeared in court today before the Honorable Robin M. Meriweather to face charges on the criminal complaint. Akindipe is scheduled to appear tomorrow before Judge Meriweather. A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, but it is not evidence of guilt. Both defendants are presumed innocent unless proven guilty.
Today’s arrests mark a continued effort by the FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office to investigate and prosecute individuals who defraud the D.C. Medicaid program. Since October 2019, four PCAs have been sentenced in U.S. District Court for defrauding D.C. Medicaid. Mobolaji Tina Stewart, who admitted defrauding the program out of more than $500,000, was sentenced to 13 months in prison in October 2019. Nkiru Uduji, who defrauded Medicaid out of more than $500,000, was sentenced to thirty-six months’ probation in December 2019. Rose Gana, who defrauded Medicaid out of more than $400,000 was sentenced to 13 months in prison in February 2020. Temitope Ogunbiyi, who defrauded Medicaid out of more than $1 million was sentenced to 15 months in prison in February 2020. A fifth defendant, Hope Falowo, pled guilty to defrauding Medicaid out of more than $400,000 in November 2019 and is awaiting sentencing. A sixth defendant, Charlotte Etongwe, was charged via criminal complaint in June 2019. A status hearing is scheduled in her case for July 29, 2020.
The FBI, the Department of Health and Human Services’ Office of Inspector General, and the Medicaid Fraud Control Unit have investigated all of these cases and count 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].
The cases against Tingwei and Akindipe are being prosecuted by Assistant U.S. Attorney Kondi Kleinman.
Maryland Man Sentenced to 70 Months' Imprisonment for Narcotics Trafficking Conviction in ATF Firearms and Narcotics InvestigationRead the Press Release
WASHINGTON – Marcus Stackhouse, 37, of Maryland was sentenced today to 70 months’ imprisonment on a federal narcotics trafficking charge stemming from his narcotics trafficking in the summer and fall of 2019, announced Acting U.S. Attorney Michael R. Sherwin, 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).
On February 13, 2020, Stackhouse pled guilty in the U.S. District Court for the District of Columbia to one count of Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or more of Cocaine Base. Today, June 19, 2020, he was sentenced to 70 months’ imprisonment followed by four years of supervised release by the Honorable Amit P. Mehta of the U.S. District Court, with some of that term to run concurrently to his ongoing sentence in Prince George’s County, Maryland.
Stackhouse was arrested after the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) engaged in a large-scale drug investigation in the 2900 block of Martin Luther King Jr. Avenue, Southeast, Washington, D.C. and arrested multiple individuals involved with narcotics trafficking. During the investigation, the ATF conducted several controlled purchases of narcotics from Stackhouse, to include the purchase of cocaine base (also known as crack cocaine). After Stackhouse was arrested on a separate firearms charge in Maryland, Stackhouse’s brother – Kevin Stackhouse – took over the narcotics trafficking on Stackhouse’s behalf. On October 9, 2019, ATF obtained a search warrant and conducted a search of Kevin Stackhouse’s residence, finding a digital scale, drug paraphernalia, cocaine residue, two loaded firearms – a .22 caliber firearm and a revolver – and four imitation firearms. Law enforcement also recovered nearly 400 rounds of ammunition, and two additional firearms magazines. On January 8, 2020, Kevin Stackhouse pled guilty to one count of Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense, and on May 7, 2020, Judge Mehta sentenced Kevin Stackhouse to 60 months’ imprisonment.
“This investigation is another example of our ability and desire to disrupt drug trafficking organizations in the District of Columbia, even and especially during a global public health crisis,” said Acting U.S. Attorney Sherwin. “As a result of this effort, we were able to remove dangerous narcotics and firearms off of our streets.”
“Today’s sentencing is the culmination of an extensive and highly successful investigation by our dedicated agents and law enforcement partners,” said ATF Washington Special Agent in Charge Ashan M. Benedict. “This operation accomplished multiple objectives, including the removal of firearms and ammunition, as well as the arrests and convictions of multiple suspects tied to these crimes. Our communities are safer today as a result of these efforts.”
“This arrest and conviction gets us one step closer to making our communities in the District safe from illegal drugs, firearms and violent crime,” said Metropolitan Police Chief Peter Newsham. “The coordinated effort between federal and local agencies demonstrates our commitment to bringing individuals involved in these types of crimes to justice.”
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.
This case was also prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime-reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the District of Columbia, Acting U.S. Attorney Sherwin coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
In announcing the sentence, Acting U.S. Attorney Sherwin, Special Agent in Charge Benedict, and Chief Newsham commended the work of those who investigated the case, including ATF and MPD. They also expressed appreciation for the assistance provided by the United States Secret Service, U.S. Marshals Service, Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland.
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 Gregory Rosen of the Violent Crime and Narcotics Section, Paralegal Specialist Teesha Tobias, Kim Hall, Candace Battle, and Legal Assistant Peter Gaboton.
District Man Charged in Federal Court for Vandalizing the Lincoln Memorial During ProtestsRead the Press Release
WASHINGTON – Micah Avery, 26, of Washington, D.C., was arraigned today in federal court on charges of destruction of federal property, resisting a federal officer, and obstructing a law enforcement officer during a civil disorder, announced Acting U.S. Attorney Michael R. Sherwin and Acting Chief of the United States Park Police (USPP) Gregory T. Monahan.
The complaint alleges that on the afternoon of May 30, 2020, officers with the U.S. Park Police witnessed Avery graffiti the words “Yall not tired yet?” with black spray paint on the Lincoln Memorial (see photo below). Avery fled as the officers approached him. After a chase, officers apprehended and handcuffed Avery. Officers attempted to put the defendant into a patrol car, but he resisted their attempts. A crowd converged on the officers and began pushing and striking the officers. During this melee, Avery broke free and ran away. One of the officers sustained an injury to his hand. A look-out was broadcast, and Avery was located shortly thereafter by other officers back at the Lincoln Memorial, still wearing the handcuffs.
The defendant was arraigned today before United States Magistrate Robin M. Meriweather in the United States District Court for the District of Columbia. Judge Meriweather released Avery pending trial, but ordered that he stay away from the Lincoln Memorial. A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
“The United States Attorney’s Office for the District of Columbia is dedicated to protecting the vital First Amendment right of individuals who choose to peacefully protest the horrific killing of George Floyd in Minneapolis last month. Moreover, as the prosecution of Avery illustrates, the United States Attorney’s Office will not tolerate those who under the guise of the First Amendment exploit peaceful demonstrations to break the law, deface our national monuments, and threaten the safety and security of our nation’s capital. In its commitment to protect the rule of law, this Office will not leave unchecked any criminal activity, whether committed by civilians or law enforcement, that infringes on the fundamental civil rights and ability of any person to be free of violence or fear,” said Acting U.S. Attorney Michael R. Sherwin.
“The defacing of the Lincoln Memorial, one of our national icons, could not be tolerated. We are committed to safeguarding the First Amendment rights of those who come to the District of Columbia to peacefully demonstrate. This crime shows how the actions of one individual can distort and tarnish a message through vandalism and other crimes of opportunity. This case is an example of excellent police work, under challenging conditions, and meets one of the core missions of the United States Park Police,” said Gregory T. Monahan, Acting Chief of the United States Park Police.
In announcing the charges, Acting U.S. Attorney Sherwin and Acting Chief Monahan commended the work of the USPP officers who apprehended Avery and are investigating the incident. The case is being prosecuted by Assistant U.S. Attorney James B. Nelson of the U.S. Attorney’s Office for the District of Columbia.
District Man Charged in Federal Court for Shooting Police OfficerRead the Press Release
WASHINGTON – Mark Crawford, 31, of Washington, D.C., was arraigned today in federal court on charges of assaulting a police officer while armed and for related firearms charges for shooting an officer with the Metropolitan Police Department as the officer was arresting him, announced U.S. Attorney Timothy J. Shea; Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Ashan Benedict; and Chief of the Metropolitan Police Department (MPD) Peter Newsham.
The criminal complaint charges Crawford with assaulting the officer while armed with a Glock handgun and for possessing that handgun unlawfully. ATF traced the firearm and determined that it had been reported stolen from a gun store in Greensboro, North Carolina.
The complaint alleges that on the afternoon of May 12, 2020, officers with the Metropolitan Police Department responded to the 100 block of 35th Street in the southeast quadrant of the District for a report of a barred individual in the area. Crawford matched the description of the barred individual and officers attempted to speak to him. While the officers were speaking to Crawford, he ran from them. The officers apprehended Crawford and he struggled and resisted the efforts of the officers to place him in handcuffs. Once handcuffed, Crawford continued to struggle with the officers as they attempted to stand him upright. Crawford then retrieved a firearm from his waistband and fired, striking one of the officers in the thigh. After shooting the officer, Crawford fired the gun a second time, but did not strike anyone. The defendant was arrested and the gun was recovered. The injured officer was taken to the hospital to be treated for the gunshot wound; the bullet broke the officer’s femur and the officer is undergoing surgery to remove the projectile from behind his knee cap.
“We will not tolerate attacks on police officers in the District of Columbia. The conduct alleged in the criminal complaint caused serious injury to a D.C. Metropolitan Police Department officer, at a time when officers continue to risk their lives to serve and protect the public during this time of crisis. The charges filed in this case should serve as a warning to anyone who would consider resorting to violence against law enforcement,” said U.S. Attorney Timothy J. Shea.
“This situation with a violent, repeat criminal offender is indicative of the risks that law enforcement officers face each day they report for duty,” said ATF Washington Special Agent in Charge (SAC) Ashan M. Benedict. “We are pleased that the injured officer is recovering, and that the suspect is now facing significant federal criminal charges.”
The defendant was arraigned before United States Magistrate Judge G. Michael Harvey in the United States District Court for the District of Columbia. Judge Harvey ordered the defendant held without bond in this matter. A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
In announcing the charges, U.S. Attorney Shea, SAC Benedict, and Chief Newsham commended the work of the MPD officers and ATF agents who apprehended the defendant and are investigating the incident. The case is being prosecuted by Assistant U.S. Attorneys Sara Vanore, Lisa Walters, and George Eliopoulos of the U.S. Attorney’s Office for the District of Columbia.
U.S. Attorney Increases Efforts to Combat Sexual Harassment in Housing During the COVID-19 PandemicRead the Press Release
WASHINGTON – As part of a national effort directed by U.S. Attorney General William P. Barr, U.S. Attorney for the District of Columbia Timothy J. Shea is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.
“While facing both a threat to public health and a threat to economic security, District of Columbia residents need, more than ever, to feel safe in the place they call home. We will not tolerate those who seek to exploit tenants at a time when they may be most financially vulnerable,” said U.S. Attorney Shea. “The U.S. Attorney’s Office will work closely with our local and federal partners to identify incidents of sexual harassment in housing and to bring predators to justice.”
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or others who have control over housing.
Launched in 2017, the Initiative has led to the filing of lawsuits across the county alleging a pattern or practice of sexual harassment in housing and the recovery of millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years. Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.
The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].
Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.
District Woman Admits to Attempting to Defraud 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, pled guilty in federal court in the District of Columbia to a three-year scheme to defraud financial institutions and account holders of approximately $3.5 million by illegally accessing bank accounts.
Boutros, a licensed attorney in the District of Columbia, pled guilty to a criminal information charging her with bank fraud. 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 also admitted to transferring money from those accounts to accounts she controlled personally and through entities she established, including her law firm, Steele Legal PLLC. 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 pled guilty in United States District Court for the District of Columbia. United States District Judge Amit Mehta is presiding over the case. Sentencing is scheduled for September 16, 2020. The maximum penalty for bank fraud is 30 years in prison and a fine of not more than twice the amount of money Boutros gained through her fraud scheme.
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.
Criminal Charges Filed Against Two Iranian Nationals for Violating Money Laundering and Sanctions Laws by Procuring Petroleum TankerRead the Press Release
WASHINGTON – Amir Dianat, 55, and Kamran Lajmiri, 42, both Iranian nationals, were charged with violating U.S. export laws and sanctions against Iran in the United States District Court for the District of Columbia.
A two-count criminal complaint returned today charges Dianat and Lajmiri with conspiracy to provide U.S. financial services to Iranian entities and their front companies attempting to purchase a petroleum tanker, the Nautic, in September 2019. The complaint alleges that the defendants concealed from the seller, financial institutions that clear U.S. dollar transactions, and the U.S. government that the sale of this vessel was destined for Iran, all as part of a scheme to enrich the defendants and other conspirators, and to evade the regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
A related verified civil forfeiture complaint was filed against $12,338,941.91. These funds were allegedly involved in this scheme to launder funds into the United States to illicitly procure the Nautic. The complaint alleges that this scheme involved the National Iranian Oil Company, the National Iranian Tanker Company (NITC), and the IRGC-Qods Force (IRGC-QF), all specially designated nationals. The IRGC has also been designated a Foreign Terrorist Organization. This forfeiture action represents the largest ever seizure of IRGC-QF related funds. All funds of terrorist organizations are subject to forfeiture.
These defendants purchased a crude oil tanker valued at over $10 million by illegally using the U.S. financial system, defiantly violating U.S. sanctions,” said Assistant Attorney General for National Security John C. Demers. “This is yet another example of Iran brazenly using front companies and false documentation in an attempt to hide the illegal transactions that the Iranian regime desperately needs to fund its malign activities. The enforcement of U.S. sanctions and related financial criminal laws is a major component of the National Security Division’s commitment to protecting the national security of the United States. I commend the efforts of the prosecutors, agents, and analysts who uncovered this illegal scheme and whose work resulted in the largest ever forfeiture action involving IRGC-QF.”
“Employing civil forfeiture authorities specifically available to the U.S. Attorney’s Office in the District of Columbia, we will continue to aggressively prosecute those who abuse our financial system to support sanctioned entities,” said U.S. Attorney Timothy J. Shea for the District of Columbia. “We will use every measure available under the law, to include civil forfeiture to recover funds for the victims of terrorism. These laws exist and serve to prevent hostile countries from illicitly generating revenue, such as through the sale of oil, to fund their weapons proliferation programs. Today’s charges are another example of the dedicated and unrelenting efforts of our office, the FBI, and HSI.”
“Today's complaint demonstrates that those who use the U.S. financial system to benefit the Iranian oil industry will be investigated by the FBI and prosecuted to the fullest extent of the law,” said FBI Minneapolis Special Agent in Charge Rainer Drolshagen. “Iran's petrochemical and petroleum sectors are primary sources of funding for the Iranian regime, and the FBI will continue to aggressively pursue those who illegally use the U.S. financial system for their benefit,” Drolshagen added.
“Protecting our homeland encompasses many missions, including safeguarding our nation's exports and currency," said Steven W. Cagen, HSI Colorado Special Agent in Charge. “These criminals thought they could enrich themselves while aiding Iran, a country that continues to pose a serious threat to our nation’s security. They will now face the consequences of their actions.”
A concurrent action was filed by the Department of the Treasury, sanctioning Dianat and his related front company, Taif Mining.
According to the pleadings, beginning around May 2019 through December 2019, Dianat and Lajmiri conspired to purchase the Nautic via a complex web of front companies, including Taif Mining. After sending the final wire payment to the seller, Taif Mining took possession of the Nautic. It quickly changed its name and began making trips to Iran to load Iranian petroleum. Because a U.S. bank froze the funds related to the sale of the vessel, the seller never received payment. As a result, the seller instituted a civil action in the U.A.E. to recover the vessel.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the United States Department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C. The conspirators utilized the U.S. correspondent banking system to process illicit transactions in U.S. Dollars, and at no time were U.S. financial institutions alerted that they were financing the purchase of a tanker for Iranian entities.
If convicted, Dianat and Lajmiri would face a maximum of 20 years imprisonment.
The investigation was conducted by special agents from the FBI Minneapolis Field Office and HSI Colorado Springs.
The details contained in the pleadings are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law, and the burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
Assistant U.S. Attorneys Zia M. Faruqui and Brian Hudak, National Security Division Trial Attorney David C. Recker, and Supervisory Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick from the U.S. Attorney’s Office for the District of Columbia, are representing the government.