Washington, DC—(ENEWSPF)—April 27, 2015.l The Justice Department announced today that it has reached an agreement with Compass Career Management L.L.C. (Compass Career College) of Hammond, Louisiana, to remedy violations of the Americans with Disabilities Act (ADA).  Compass Career College is a private provider of vocational education and career training.

Title III of the ADA prohibits public accommodations, such as private vocational and technical colleges, from discriminating against people with disabilities, including those with HIV.  Based on its investigation, the department determined that the college conditionally accepted an applicant into its Licensed Practical Nursing (LPN) program but issued a follow-up letter to the applicant after the college discovered that the applicant has HIV.  The college’s letter discouraged the applicant from pursuing enrollment at the college.  Despite the college’s letter, the applicant attempted to finalize enrollment at the college, but the college advised the applicant that the class was full and did not admit the applicant.  The consent decree, filed today along with a complaint in the U.S. District Court for the Eastern District of Louisiana, must be approved by the court.

Under the terms of the consent decree, the college will implement a nondiscrimination policy to ensure that the college does not discriminate against persons with HIV; stop questioning applicants and students about their HIV status; train college administrators and instructors on ADA requirements and the revised policies required by the consent decree; and report to the department on its compliance with the consent decree.  In addition, the college will pay $30,000 in compensatory damages to the applicant, and will pay a civil penalty of $5,000 to the United States. 

“We continue to work to eradicate discriminatory and stigmatizing treatment of people with HIV based on unfounded fears and stereotypes,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “The ADA clearly protects individuals with HIV and other disabilities from exclusion or marginalization, including in vocational schools, trade schools, and career colleges.”

“This is an important step by the leadership of Compass Career College to ensure compliance with the ADA,” said U.S. Attorney Kenneth Polite Jr. of the Eastern District of Louisiana.  “The agreement that we are announcing today reflects the college’s commitment, and that of the Justice Department, to ensure full accessibility and opportunity for individuals with disabilities – including those with HIV – in the private educational setting.”

To read the consent decree and complaint or for more information on the ADA and HIV discrimination, visit www.ada.gov/aids.  Title III of the ADA requires public accommodations, such as private schools, to provide individuals with disabilities (including HIV), equal access to goods, services, privileges, facilities, advantages and accommodations.  For more information about the ADA, call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.

Related Material:

Compass Joint Motion for Entry of Consent Decree

Source: justice.gov

Washington, DC—(ENEWSPF)—April 27, 2015. Medical device manufacturer Medtronic Corporation and two of its top executives have agreed to resolve allegations that they violated various provisions of the federal Food, Drug and Cosmetic Act  (FDCA) with regard to the company’s SynchroMed infusion pump.  At the request of the U.S. Food and Drug Administration (FDA), the Justice Department today filed a complaint and a proposed consent decree in the U.S. District Court for the District of Minnesota.  The complaint alleges that Medtronic, its chief executive officer, S. Omar Ishrak, and its senior vice president, Thomas M. Tefft, have been distributing medical devices in interstate commerce that are adulterated because they were not manufactured in accordance with current good manufacturing processes.

“The proposed consent decree will require Medtronic and its leadership to commit to making changes in their process that will benefit the American public by ensuring that their products are safe and effective for patients,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “The Department of Justice will not permit medical device manufacturers to shirk their responsibility to ensure that the devices that patients rely upon are safe.”

The defendants design, manufacture and distribute the SynchroMed II implantable infusion pump system, which is used to deliver medication to treat cancer, chronic pain and severe spasticity.  Medical devices such as the Medtronic’s SynchroMed system are required to comply with FDA’s quality system (QS) regulations.  The complaint alleges that Medtronic repeatedly failed to correct violations of the QS regulations with regard to the SynchroMed II.

The FDA conducted multiple inspections of Medtronic Neuromodulation’s manufacturing facilities in Columbia Heights, Minnesota, between 2006 and 2013.  These inspections revealed significant violations of the QS regulations, many of which related to design controls, complaint handling, and corrective and preventive action.  Those regulations ensure that when a device is found to have malfunctioned or caused serious injury to a patient, the complaint is thoroughly investigated and necessary validated design changes are implemented.  The problems that the FDA observed with the SynchroMed II pump could result in an over- or under-infusion of medication for patients.

Under the terms of the agreement, which must be approved by the court, Medtronic and the two individual defendants have agreed to stop manufacturing, designing and distributing new SynchroMed II pump systems except in extraordinary cases, such as when a treating physician certifies that a SynchroMed II pump is medically necessary for an individual patient’s treatment.  The proposed consent decree also requires Medtronic to retain an expert to help Medtronic correct its regulatory violations.  Medtronic may not resume distributing the SynchroMed II pump system until it receives permission from the FDA.

“We will continue to work with the Food and Drug Administration and our partners at the Consumer Protection Branch of the Department of Justice to identify and remedy instances in which medical technology manufacturers in Minnesota fail to adhere to best practices,” said U.S. Attorney Andrew M. Luger of the District of Minnesota.  “As an industry leader, Medtronic and its executives must adhere to the high-quality manufacturing processes required under the FDCA.”

The matter is being handled by the Civil Division’s Consumer Protection Branch, the U.S. Attorney’s Office of the District of Minnesota and the FDA’s Office of Chief Counsel.

Related Material:

Complaint

Consent Decree

Source: justice.gov

Washington, DC--(ENEWSPF)--April 27, 2015.  On Thursday, April 23, a federal jury convicted a naturalized U.S. citizen and former Iranian national of violations of U.S. export and money laundering laws, arising from his involvement in a scheme to purchase marine navigation equipment and military electronic equipment for illegal export to, and end-use in, Iran, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Laura E. Duffy of the Southern District of California.

Arash Ghahreman, 45, of Staten Island, New York, was convicted of attempted export to Iran, and conspiracy to do the same, in violation of the Iran Trade Embargo (formerly known as the Iranian Transactions and Sanctions Regulations); smuggling goods from the United States, and conspiracy to the same; and aiding and abetting the transfer of money from Dubai, United Arab Emirates (UAE), to the United States, in support of an illegal export activity, and conspiracy to do the same.  The case involved a seven-day jury trial, beginning on April 13, 2015, and ending on April 23, 2015, when the jury returned a guilty verdict on seven counts of a nine-count superseding indictment after one day of deliberation.  The jury was unable to reach a verdict on two of the counts involving the attempted exportation and smuggling of a fiber optic gyrocompass, used in both military and civilian marine navigation applications.

“The defendants used a front company to illegally send U.S. goods and technologies – including those used in military applications – to Iran,” said Assistant Attorney General Carlin.  “These violations of the Iran Trade Embargo have the potential to harm U.S. national security objectives, and we will continue to hold accountable those who seek to circumvent its restrictions.  I would like to thank the agents and prosecutors for their hard work in obtaining this conviction.”

The evidence presented at trial showed that Ghahreman acted an agent of an Iranian procurement network which used a front company in Dubai to acquire U.S. goods and technologies for illegal transshipment to, and end-use in, Iran.  Co-defendant Koorush Taherkhani, 43, an Iranian national and resident, was the managing director and founder of that front company, co-defendant TIG Marine Engineering Services.  Because of his German nationality, co-defendant Ergun Yildiz, 35, a resident of UAE, was hired by Taherkhani to be the “face” of the front company, as the president/CEO of TIG Marine.  Before Ghahreman immigrated to the United States in 2007, Ghahreman and Taherkhani had been friends and dorm mates at an Iranian university, where each received a degree in marine engineering.  Upon graduation, both Ghahreman and Taherkhani worked as engineers for various Iranian shipping companies, including the Islamic Republic of Iran Shipping Lines and its subsidiaries.  After immigrating to the United States, Ghahreman was employed by various shipyards in the United States, and became a naturalized U.S. citizen.  Because of his employment and citizenship status, Ghahreman was well placed to act as an agent of the illegal procurement network. 

From December 2012 through June 17, 2013, Ghahreman and his co-defendants negotiated via email, text, telephone and meetings with U.S. Immigration Customs and Enforcement’s Homeland Security Investigations (ICE-HSI) and the Defense Criminal Investigative Service (DCIS) undercover agents to purchase marine navigation components (fiber optic gyrocompasses), military electronic components (electron tubes) and other U.S. technology for illegal export to, and/or end-use in, Iran.  The undercover agents were posing as brokers of U.S. goods and technology, willing to sell U.S. goods to the defendants for end-use in Iran.  Ultimately, as a result of these negotiations, Ghahreman and his co-defendants agreed to purchase four Navigat-2100 fiber optic gyrocompasses and 50 Y-690 units (electron tubes).  Pursuant to that agreement, Ghahreman and his co-defendants wired approximately $60,000 in partial payment for the gyrocompasses and electron tubes from a bank in Dubai to the undercover agents’ bank account.  Ultimately, on June 17, 2013, ICE-HSI agents arrested Ghahreman and Yildiz after they traveled to the United States and took partial delivery of one gyrocompass and two electron tubes and attempted to ship the items indirectly to Iran, via third countries.

Ghahreman is scheduled to be sentenced on July 17, 2015, before U.S. District Judge Dana M. Sabraw of the Southern District of California.  Yildiz pleaded guilty to conspiracy to export to Iran on Oct. 9, 2014, and is scheduled to be sentenced on May 8, 2015, before Judge Sabraw.  Co-defendant Taherkhani, an Iranian national and resident, remains a fugitive.  Co-defendant TIG Marine is a Dubai company.

The case was investigated by ICE-HSI and DCIS.  The case was prosecuted by Assistant U.S. Attorneys Shane P. Harrigan and Timothy D. Coughlin of the Southern District of California, with assistance provided by the Justice Department’s National Security Division.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 27, 2015. Franklin Brown, 35, and Eric Walters, 39, both former police officers with the city of Marion Police Department in Marion County, South Carolina, were sentenced to serve 18 months and one year and one day in prison, respectively, today in federal court in Florence, South Carolina, by U.S. District Court Judge R. Bryan Harwell for repeatedly tasing a former local female resident during the course of her detainment.  For both defendants, three years of supervised release will follow the prison sentences and they each face a $100 special assessment.  Brown and Walters previously pleaded guilty to violating the victim’s civil rights during this incident.

According to court documents, on April 2, 2013, in the course of detaining the victim, Walters tased the victim causing her to fall to the ground and injure her head.  Once she was on the ground, Walters continued to tase the victim multiple times.  Brown subsequently arrived on scene and proceeded to tase the victim as she was seated on the curb, restrained in handcuffs and surrounded by law enforcement.  Walters and Brown admitted there was no legitimate law enforcement purpose for repeatedly tasing the victim as she did not pose a threat to the officers.

“The defendants abused their authority as law enforcement officers by repeatedly tasing a defenseless, compliant victim,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “Today’s sentence is a reminder that this type of abusive and dishonorable behavior will not go unpunished.”

“I thank the Marion Police Department, the FBI and the Civil Rights Division,” said U.S. Attorney Bill Nettles of the District of South Carolina.  “Due to their collective efforts in concert with our office, the officers in this case were brought to justice.”

Today’s sentence resulted from the investigative work of the FBI’s Myrtle Beach Division.  The case is being prosecuted by Trial Attorneys Henry Leventis and Nicholas Murphy of the Civil Rights Division, and Assistant U.S. Attorney John Potterfield of the District of South Carolina.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 29, 2015.  Today, the filing of an Information charging Alicia Keir, 24, of Demotte, Indiana, with involuntary manslaughter for the death of her newborn child by failing to summon medical attention, announced U.S. Attorney David Capp for the Northern District of Indiana.

On October 10, 2011, Keir was aboard a cruise ship on the high seas, gave birth alone and failed to obtain any medical attention.  The child died from exposure and lack of care.  Jurisdiction for acts occurring upon the high seas can be in the district where a defendant resides.  In conjunction with the information, Keir has filed a petition to enter a guilty plea to the involuntary manslaughter charge. 

The U.S. Attorney’s Office emphasized that an information is merely an allegation and not proof of guilt.  All persons charged are presumed innocent until and unless proven guilty in court.

This case was the result of an investigation by the Federal Bureau of Investigation and is being prosecuted by the Assistant U.S. Attorneys Randall S. Stewart and Gary T. Bell.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 30, 2015. A Miami-area medical doctor was sentenced today to 60 months in prison for his role in a $5.5 million Medicare fraud scheme involving fraudulent billings by a psychiatric hospital in Hollywood, Florida.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Barry Kaplowitz, 54, of Aventura, Florida, a licensed physician, was convicted of making false statements related to health care matters on Feb. 20, 2015, following a six-week jury trial.  In addition to today’s prison sentence, U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida ordered Kaplowitz to pay more than $2.9 million in restitution.

According to evidence presented at trial, Kaplowitz served as the medical director at Hollywood Pavilion (HP), a state-licensed psychiatric hospital, from approximately 2008 to 2011.  During that time, Kaplowitz signed false and fraudulent medical records in order to make it appear that HP’s patients qualified for and received intensive outpatient services, even though they did not.  The evidence demonstrated that Kaplowitz signed patient files for over 400 patients certifying that he had provided mental health services to each of them, even though he never saw nor provided any treatment to the patients.  HP used these falsified medical records to submit over 2,800 false claims to Medicare totaling over $5.5 million.  Medicare paid $2.9 million on those false claims.

Five other individuals have previously been convicted and sentenced in this case:

• Karen Kallen-Zury, of Lighthouse Point, Florida, HP’s former chief executive officer, was sentenced to 25 years in prison;

• Daisy Miller, of Hollywood, the clinical director of HP’s inpatient facility, was sentenced to 15 years in prison;

• Michele Petrie, of Fort Lauderdale, Florida, the head of HP’s intensive outpatient program, was sentenced to six years in prison;

• Christian Coloma, of Miami Beach, Florida, the director of physical therapy for an entity associated with HP, was sentenced to 12 years in prison; and

• Christopher Gabel, of Davie, Florida, HP’s former chief operating officer, was sentenced to six years in prison.

Kallen-Zury, Miller, Gabel and Petrie were ordered to pay more than $39 million in restitution, and Coloma was ordered to pay more than $20 million in restitution.

The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.  The case is being prosecuted by Trial Attorneys Nicholas E. Surmacz, Andrew H. Warren and L. Rush Atkinson of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion.  In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 30, 2015. An independent contractor for a trucking company in Afghanistan that was responsible for delivering fuel to U.S. Army installations was sentenced to four years in prison today for offering a U.S. Army serviceman $54,000 in bribes to falsify documents confirming the receipt of fuel shipments that were never actually delivered.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Special Inspector General for Afghanistan Reconstruction John F. Sopko, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office, Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) New York Field Office and Director Frank Robey of the U.S. Army’s Criminal Investigation Command (CID) made the announcement.

Akbar Ahmed Sherzai, 50, of Centreville, Virginia, pleaded guilty on Feb. 14, 2014, to one count of conspiracy to commit bribery.  In addition to the prison sentence, U.S. District Court Judge Margo K. Brodie of the Eastern District of New York ordered Sherzai to forfeit $54,000. 

In connection with his guilty plea and in other court documents, Sherzai acknowledged that he was employed by a local Afghan trucking company contracted to transport fuel between U.S. military bases in Afghanistan.  Sherzai acknowledged that, in April 2013, he approached a U.S. military serviceman to discuss instances in which his company failed to deliver the fuel—called “no-show” missions—which resulted in a $75,000 fine to his company for each no-show.  Sherzai admitted that he offered the serviceman bribes to falsify documents to confirm deliveries, so that Sherzai’s company and others could recover the fines they had paid for no-shows.  On several occasions, Sherzai paid cash bribes to the serviceman, who, unbeknownst to Sherzai, was working with law enforcement.  In total, Sherzai acknowledged that he paid the serviceman $54,000 to falsify documents relating to nine deliveries, allowing his company and others to avoid or recover $675,000 in fines.

This matter was investigated by the Special Inspector General for Afghanistan Reconstruction, FBI, ICE-HSI and CID.  The case is being prosecuted by Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Amir H. Toossi of the Eastern District of New York.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 30, 2015.  Thirteen current and former law enforcement officers and two other individuals have been indicted and arrested for allegedly protecting narcotics shipments and cash proceeds during transit along the east coast for what they believed was a large-scale drug trafficking organization that was actually an undercover operation by the FBI.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division made the announcement.

“Corruption in local government – especially involving law enforcement – threatens the social compact that binds our communities together,” said Assistant Attorney General Caldwell.  “When the officer with a gun and a badge is no different from the trafficker peddling drugs in the street, we all suffer.  That is why the Criminal Division of the Department of Justice and our law enforcement partners in North Carolina and throughout the country are determined to root out corruption, wherever and in whatever form it may be found.”

“The actions by these individuals are particularly troubling due to their current and past affiliation with law enforcement,” said U.S. Attorney Walker.  “Their alleged conduct was reprehensible and my office will not tolerate this kind of corruption in our district.  I am grateful for the outstanding work of the FBI Special Agents who investigated this case.”

“They vowed to protect and serve, but instead these deputies and correctional officers sold their badges and used their law enforcement positions to line their own pockets,” said Special Agent in Charge Strong.  “Public corruption at any level is the number one criminal priority of the FBI and we will work aggressively to protect the public trust.”

The following individuals were indicted in the Eastern District of North Carolina and arrested today in a coordinated operation by the FBI:

• Lann Tjuan Clanton, 36, a correctional officer with the Virginia Department of Corrections;

• Ikeisha Jacobs, 32, a deputy with the Northampton County Sheriff’s Office;

• Jason Boone, 29, a deputy with the Northampton County Sheriff’s Office;

• Wardie Vincent Jr., 35, formerly of the Northampton County Sheriff’s Office;

• Adrienne Moody, 39, a correctional officer with the North Carolina Department of Public Safety;

• Cory Jackson, 43, formerly of the Northampton County Sheriff’s Office;

• Jimmy Pair Jr., 48, a deputy with the Northampton County Sheriff’s Office;

• Curtis Boone, 31, a deputy with the Northampton County Sheriff’s Office;

• Antonio Tillmon, 31, a police officer with the Windsor City Police Department;

• Alaina Kamling, 27, a correctional officer with the North Carolina Department of Public Safety;

• Kavon Phillips, 25, a correctional officer with the North Carolina Department of Public Safety;

• Crystal Pierce, 31, of Raleigh, North Carolina;

• Alphonso Ponton, 42, a correctional officer with the Virginia Department of Corrections;

• Thomas Jefferson Allen II, 37, a deputy with the Northampton County Sheriff’s Office; and

• Tosha Dailey, 31, a 911 dispatch operator for Northampton County.

All 15 defendants are charged with conspiring to distribute controlled substances and conspiring to use and carry firearms during and in relation to drug trafficking offenses.  Other charges against certain defendants include attempted extortion, attempted possession with intent to distribute controlled substances, money laundering, federal programs bribery and use and carry of firearms during and in relation to crimes of violence and drug trafficking offenses.

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

The case is being investigated by the FBI’s Charlotte Division, Raleigh Resident Agency and the North Carolina Department of Public Safety, with assistance from the Halifax County Sheriff’s Office.  The case is being prosecuted by Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Brian S. Meyers of the Eastern District of North Carolina.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 30, 2015.  The Justice Department announced that Huntsville, Alabama, Police Department Officer Brett Russell, 48, has been charged with deprivation of rights under color of law for allegedly assaulting and injuring G.H., a detainee, on Dec. 23, 2011.  Russell also has been charged with obstruction of justice for allegedly filing a false police report regarding this incident.

The indictment identifies the subject of the arrest by the initials, “G.H.”  According to the indictment, Russell falsely stated in his incident report that G.H. kicked at officers, attempted to head-butt officers while they transported him to Russell's vehicle, that he was told to stop resisting several times but would not comply and that he was transported to the Huntsville metro jail “without incident.”  Russell omitted from his report that he "had struck G.H. with his fist and kneed G.H. in the body," as the indictment says.

Russell faces a maximum sentence of 10 years in prison for the civil rights charge and 20 years for the obstruction charge.  An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty.

The investigation by the Florence Resident Agency of the FBI is ongoing.  The case is being prosecuted by Trial Attorney Carroll McCabe of the Civil Rights Division and Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama.

Source: justice.gov

Kolon Sentenced To Pay $360 Million in Restitution And Fines

Washington, DC--(ENEWSPF)--April 30, 2015.  Kolon Industries Inc., a South Korean industrial company, pleaded guilty this morning in federal court in Alexandria, Virginia, to conspiracy to steal trade secrets involving E.I. DuPont de Nemours & Co.’s (DuPont) Kevlar technology.  The company was sentenced to pay $85 million in criminal fines and $275 million in restitution. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond, Virginia, Division made the announcement.

Kolon Industries Inc., appearing through two successor entities—Kolon Industries Inc. and Kolon Corporation (collectively, Kolon)—pleaded guilty to one count of conspiracy to convert trade secrets before U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia. 

“Protecting the trade secrets of American businesses sustains the integrity and competitiveness of the American economy, and encourages the development of new products, including advanced technologies,” said Assistant Attorney General Caldwell.  “The Criminal Division is committed to ensuring that foreign companies, like Kolon Industries, cannot escape the reach of the criminal justice system when they have conspired to steal the results of American ingenuity and our companies’ intellectual property.”

“Research and development are pillars of our economy, and we cannot allow anyone to obtain by theft what innovators develop through effort and ingenuity,” said U.S. Attorney Boente.  “Today’s outcome confirms that we will aggressively investigate and prosecute intellectual property crimes, regardless of whether the perpetrators are foreign or domestic, corporations or individuals.  There are no safe harbors for those who seek to steal trade secrets in the Eastern District of Virginia.”

“Protecting American companies from the theft of their trade secrets is a high priority for the FBI,” said Special Agent in Charge Lee.  “Each year, billions of U.S. dollars are lost to foreign competitors who pursue illegal commercial short cuts by stealing valuable advanced technologies.  This case demonstrates the FBI’s ability to penetrate these highly sophisticated criminal schemes and bring their perpetrators to justice.  Its outcome should send a clear message to foreign commercial actors who seek to illegally exploit American companies and steal our nation’s innovation and technology.”

According to the statement of facts filed with the plea agreement, from June 2006 to February 2009, Kolon conspired with former DuPont employees and others to steal DuPont’s trade secrets for making Kevlar, a high-strength, para-aramid synthetic fiber.  Kevlar, a trademarked name, is one of DuPont's most well-known products and is used is a wide range of commercial applications such as body armor, fiber optic cables, and automotive and industrial products.  Kolon admitted that it was attempting to improve the quality of its own para-aramid fiber known as Heracron. 

Kolon personnel met repeatedly with former DuPont employees, including Edward Schulz, 72, of Brownstown, Pennsylvania, and Michael Mitchell, 58, of Chesterfield, Virginia, to obtain confidential and proprietary DuPont information about Kevlar.  Schulz pleaded guilty to conspiracy to steal trade secrets in September 2014 and is scheduled to be sentenced on June 26, 2015.  Mitchell pleaded guilty to theft of trade secrets and obstruction of justice in December 2009 and was sentenced to 18 months in prison. 

Kolon admitted that it obtained technical and business documents regarding Kevlar, including instructional materials that described DuPont’s “New Fiber Technology,” documents on polymerization, and a detailed breakdown of DuPont’s capabilities and costs for the full line of its Kevlar products and DuPont’s Kevlar customers.

According to the statement of facts and Mitchell’s admissions at his guilty plea, Mitchell exchanged numerous telephone calls and emails with Kolon personnel.  On more than one occasion, Mitchell advised Kolon personnel that some of the information they sought was proprietary and that DuPont considered such information to be trade secrets.  Mitchell also coordinated a meeting at a hotel in Richmond, at which Kolon personnel were introduced to a cooperating witness who pretended to be a disgruntled scientist from DuPont.  During the Richmond meeting, Kolon personnel indicated that they would only be comfortable communicating with the cooperating witness in a manner that was confidential and that would not leave an evidentiary trail.

In February 2009, DuPont filed a civil lawsuit against Kolon in the Eastern District of Virginia, alleging theft of trade secrets.  Thereafter, certain Kolon personnel attempted to delete files and emails related to Mitchell, Schulz and outside consultants hired to improve Kolon’s para-aramid fiber, and urged other Kolon personnel to search for such materials and mark them for deletion.

Kolon also admitted that certain employees approached a former employee of an American subsidiary of Teijin Ltd. – a Japanese company that makes the para-aramid fiber called Twaron—in an unsuccessful effort to obtain information about Twaron.

This case represents the first time that foreign corporations with no direct presence in the United States were found to be successfully served with U.S. criminal process, over their objections, based on service pursuant to an international treaty.  In December 2014, the district court found that both of the successor companies were properly served, and ordered them to appear for arraignment.  In February 2015, the Fourth Circuit Court of Appeals denied Kolon’s petition for extraordinary relief seeking reversal of the district court’s order.

Five former Kolon executives and employees, all of South Korea, were charged in an August 2012 indictment filed in the Eastern District of Virginia: Jong-Hyun Choi, 58, a senior executive who oversaw the Heracron Business Team; In-Sik Han, 52, who managed Kolon’s research and development related to Heracron; Kyeong-Hwan Rho, 49, the head of the Heracron Technical Team; Young-Soo Seo, 51, the general manager for the Heracron Business Team; and Ju-Wan Kim, 42, a manager on the Heracron Business Team.

None of these individuals has appeared in the United States to face the charges.  The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

The case was investigated by the FBI’s Richmond Division.  The case is being prosecuted by Assistant U.S. Attorneys Kosta S. Stojilkovic and Matthew Burke of the Eastern District of Virginia, Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Senior Counsel Rodolfo Orjales of the Criminal Division’s Computer Crime and Intellectual Property Section.  The Criminal Division’s Office of International Affairs has provided valuable assistance.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 30, 2015.  A federal jury in Oklahoma City convicted a Texas man today of running an illegal international gambling enterprise and conspiring to commit money laundering, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sanford C. Coats of the Western District of Oklahoma.

Bartice Alan King, aka “Luke,” 44, of Spring, Texas, was found guilty of conducting an illegal gambling business and engaging in a conspiracy to commit money laundering.  A sentencing hearing has not yet been set.

According to evidence presented at trial, from 2003 to 2013, King was the owner, CEO and President of Legendz Sports, an Internet and telephone gambling enterprise based in Panama City, Panama.  Over the course of a decade, the international gambling enterprise took more than $1 billon in illegal wagers, almost exclusively from gamblers in the United States on American sporting events. 

The evidence demonstrated that after founding Legendz Sports, King directed and supervised a network of bookies located all over the United States, who illegally solicited and accepted sports wagers and settled gambling debts.  The evidence further demonstrated that bookies and runners for Legendz Sports transported millions of dollars of gambling proceeds in cash and checks from the United States to Panama.  The checks were made out to various shell companies created by Legendz Sports throughout Central America to launder gambling proceeds. 

The evidence demonstrated that the illegal gambling proceeds were used to further promote the gambling business, including to pay employees, build a new multi-million dollar call center to take bets and build a “bank” of cash to pay future winning bettors.  King used the profits to live a lavish lifestyle, including mansions in Florida and Texas.

The case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service.  The Criminal Division’s Office of International Affairs also assisted with this investigation.  The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Susan Dickerson Cox and Travis D. Smith of the Western District of Oklahoma.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 30, 2015.  The Justice Department announced today that John Louis Blalack, 21, of Brandon, Mississippi, was sentenced today in U.S. District Court of the Southern District of Mississippi in Jackson for his role in a federal hate crime conspiracy involving racially motivated assaults, culminating in the death of James Craig Anderson, an African-American man, in the summer of 2011.  Blalack had previously pleaded guilty to two counts of commission of a hate crime for his role in the conspiracy and the cover-up.  Blalack was sentenced to 240 months in prison.

Eight other defendants in related cases, Deryl Paul Dedmon, 22, John Aaron Rice, 22, Dylan Wade Butler, 23, Jonathan Kyle Gaskamp, 22, and Joseph Paul Dominick, 23, all of Brandon, Mississippi; William Kyle Montgomery, 25, of Puckett, Mississippi, Sarah Adelia Graves, 22, of Crystal Springs, Mississippi; and Shelbie Brooke Richards, 21, Pearl, Mississippi, were previously sentenced to 600 months, 220 months, 78 months, 48 months, 48 months, 224 months, 60 months and 96 months, respectively, for their roles in the conspiracy.  Robert Henry Rice is awaiting sentencing.

“The Justice Department will always fight to hold accountable those who commit racially motivated assaults,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “We hope that the prosecution of those responsible for this horrific crime will help provide some measure of closure to the victim’s family and to the larger community affected by this heinous crime.”

“This prosecution sends a clear message that this office, in partnership with the DOJ Civil Rights Division, will prioritize and aggressively prosecute hate crimes and other civil rights violations in the Southern District of Mississippi,” said U.S. Attorney Gregory K. Davis of the Southern District of Mississippi.

“The FBI takes very seriously its responsibility to uphold the civil rights of all citizens,” said Special Agent in Charge Donald Alway of the FBI’s Jackson, Mississippi, Division.  “Together with its law enforcement partners, the FBI will continue its efforts to aggressively pursue and bring to justice all those individuals who conspire to deprive others of their civil rights merely because of the color of their skin.”

In prior court hearings, the defendant admitted that beginning in the spring of 2011, he and others conspired with one another to harass and assault African Americans in and around Jackson.  On numerous occasions, the co-conspirators used dangerous weapons, including beer bottles, sling shots and motor vehicles, to cause, and attempt to cause, bodily injury to African Americans.  They would specifically target African Americans they believed to be homeless or under the influence of alcohol because they believed that such individuals would be less likely to report an assault.  The co-conspirators would often boast about these racially motivated assaults.

Blalack admitted his involvement in the conspiracy and to his role in the beating and killing of James Craig Anderson.  Specifically, he admitted that in the early morning hours of June 26, 2011, he and six other co-conspirators agreed to carry out their plan to find, harass and assault African Americans.  At around 4:15 a.m., Blalack, Montgomery, John Aaron Rice and Butler drove to Jackson in Montgomery’s white Jeep with the understanding that Richards, Graves and Dedmon would join them a short time later.

At approximately 5:00 a.m., the four occupants of the Jeep spotted Anderson in a motel parking lot off Ellis Avenue.  They decided that Anderson would be a good target for an assault because he was African-American and appeared to be intoxicated.  Blalack and J. Rice got out of the Jeep to distract Anderson while they waited for Richards, Graves, and Dedmon to arrive.  After Richards, Graves and Dedmon arrived in a Ford F250 truck, Rice and Dedmon physically assaulted Anderson.  After the assault, the four occupants of the Jeep left the motel parking lot in the Jeep.  Dedmon then deliberately used his truck to run over Anderson, causing injuries which resulted in Anderson’s death.  Blalack also admitted that prior to Anderson's death he and his co-conspirators threw beer bottles at African American and also used a sling shot to shoot metal ball bearings at victims in Jackson.

This case was the result of a cooperative effort among the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Southern District of Mississippi and the Hinds County, Mississippi, District Attorney’s Office.  This case was investigated by the Jackson Division of the FBI and the Jackson Police Department.  It is being prosecuted by Trial Attorney Sheldon L. Beer and Deputy Chief Paige M. Fitzgerald of the Civil Rights Division of the Department of Justice, and Glenda R. Haynes of the U.S. Attorney’s Office for the Southern District of Mississippi.

Source: justice.gov

Washington, DC--(ENEWSPF)--May 1, 2015. Merit Energy Company, a Texas-based oil and natural gas exploration and production company, has agreed to pay an $885,000 civil penalty and to improve leak detection and repair work practices to settle alleged violations of the Clean Air Act at its natural gas processing facility in Kalkaska, Michigan, the Department of Justice and the Environmental Protection Agency (EPA) announced today.  Emissions of volatile organic compounds (VOCs) from leaking equipment impact the environment and may cause serious health effects.  VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. 

“This comprehensive compliance program continues our efforts to control fugitive emissions and will require Merit Energy to upgrade its monitoring and maintenance practices to help prevent future violations,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division.  “Compliance with the clean air laws is essential to maintaining safe, responsible, and reliable sources of domestic energy.”

"People in northwest Michigan will breathe cleaner air as a result of this settlement," said EPA Regional Administrator Susan Hedman.  "Merit Energy will be making changes at the company's natural gas processing facility in Kalkaska that will prevent emissions of pollutants that pose risks for people with asthma and other respiratory diseases.”

“My office is pleased with this settlement.  Prevention or immediate detection and repair are critical when protecting health and the environment,” said U.S. Attorney Patrick Miles Jr. for the Western District of Michigan.  “We and the EPA are vigilantly ensuring compliance with the Clean Air Act and other environmental laws.”

In addition to paying a penalty, Merit Energy will implement a comprehensive leak detection and repair (LDAR) program to reduce emissions of VOCs from leaking equipment such as valves and pumps.  These emissions, known as “fugitive” emissions because they are not discharged from a stack but rather leak directly from equipment, are generally controlled through work practices, like monitoring and repairing leaks.  The settlement requires Merit Energy to implement enhanced work practices, including more frequent leak monitoring, better repair practices and innovative new efforts designed to prevent leaks.  In addition, the enhanced LDAR program requires Merit Energy to replace valves with new “low emissions” valves or valve packing material, designed to significantly reduce the likelihood of future leaks of VOCs.  This settlement imposes the first enhanced LDAR program at a natural gas processing facility.

According to the complaint, filed simultaneously with the settlement today in the Western District of Michigan, Merit Energy allegedly violated Clean Air Act requirements to monitor and repair leaking equipment and demonstrate compliance with regulations applicable to onshore natural gas processing plants. 

The consent decree is subject to a 30 day comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice web site at www.justice.gov/enrd/Consent_Decrees.html.

Source: justice.gov

Washington, DC--(ENEWSPF)--May 1, 2015.  BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, was sentenced today for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) by processing billions of dollars of transactions through the U.S. financial system on behalf of Sudanese, Iranian and Cuban entities subject to U.S. economic sanctions.  BNPP was sentenced to a five-year term of probation, and ordered to forfeit $8,833,600,000 to the United States and to pay a $140,000,000 fine.  Today’s sentencing is the first time a financial institution has been convicted and sentenced for violations of U.S. economic sanctions, and the total financial penalty—including the forfeiture and criminal fine—is the largest financial penalty ever imposed in a criminal case.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office and Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) made the announcement.  U.S. District Court Judge Lorna G. Schofield of the Southern District of New York imposed the sentence.

“BNP Paribas flouted U.S. sanctions laws to an unprecedented extreme, concealed its tracks, and then chose not to fully cooperate with U.S. law enforcement, leading to a criminal guilty plea and nearly $9 billion penalty” said Assistant Attorney General Caldwell.  “BNPP deliberately disregarded the law and provided rogue nations, and Sudan in particular, with vital access to the global financial system, helping that country’s lawless government to harbor and support terrorists and to persecute its own people.  Today’s sentence demonstrates that financial institutions will be punished severely but appropriately for violating sanctions laws and risking our national security interests.”

“BNPP, the world's fourth largest bank, has now been sentenced to pay a record penalty of almost $9 billion for sanctions violations that unlawfully opened the U.S. financial markets to Sudan, Iran, and Cuba,” said U.S. Attorney Bharara.  “BNPP provided access to billions of dollars to these sanctioned countries, and did so deliberately and secretly, in ways designed to evade detection by the U.S. authorities.  The sentence imposed today is appropriate for BNPP’s years-long and wide-ranging criminal conduct.”

“The sentencing of BNP Paribas Bank and the $9 Billion monetary penalty should sound the alarm to international financial institutions thinking of perpetrating these crimes,” said Chief Weber.  “The ability of IRS-CI and our partners to expose blatant violations of U.S. embargos and sanctions has changed the way financial matters are handled worldwide. We will continue to use our financial expertise to uncover these types of violations, as well as methodical and deliberate actions to conceal prohibited transactions from U.S. regulators and law enforcement.”

In connection with its guilty plea on July 9, 2014, BNPP admitted that from at least 2004 through 2012, it knowingly and willfully moved over $8.8 billion through the U.S. financial system on behalf of Sudanese, Iranian and Cuban sanctioned entities, in violation of U.S. economic sanctions.  The majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses.  BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assisting the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period.  Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”

Similarly, from October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.74 billion on behalf of Cuban sanctioned entities.  BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal.  BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal.”

BNPP also engaged in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012—nearly two years after the bank had commenced an internal investigation into its sanctions compliance and pledged to cooperate with the government.  The illicit Iranian transactions included transactions for a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company and an Iranian oil company.

In accepting BNPP’s guilty plea, Judge Schofield stated that BNPP’s actions “not only flouted U.S. foreign policy but also provided support to governments that threaten both our regional and national security and, in the case of Sudan, a government that has committed flagrant human rights abuses and has known links to terrorism.”  Judge Schofield further stated that the forfeiture of over $8 billion will “surely have a deterrent effect on others that may be tempted to engage in similar conduct, all of whom should be aware that no financial institution is immune from the rule of law.”

The Justice Department is exploring ways to use the forfeited funds to compensate individuals who may have been harmed by the sanctioned regimes of Sudan, Iran and Cuba.  As a preliminary step in this process, the Justice Department is inviting such individuals or their representatives to provide information describing the nature and value of the harm they suffered.  Beginning today (May 1, 2015), interested persons can learn more about this process and submit their information at www.usvbnpp.com [external link], or call 888-272-5632 (within North America) or 317-324-0382 (internationally).

In addition to its federal criminal conviction, BNPP pleaded guilty in New York State Supreme Court to falsifying business records and conspiring to falsify business records.  BNPP also agreed to a cease and desist order and to pay a civil monetary penalty of $508 million to the Board of Governors of the Federal Reserve System.  The New York State Department of Financial Services announced that BNPP agreed to, among other things, terminate or separate from the bank 13 employees, including the Group Chief Operating Officer and other senior executives; suspend U.S. dollar clearing operations through its New York Branch and other affiliates for one year for business lines on which the misconduct centered; extend for two years a monitorship put in place in 2013; and pay a monetary penalty of $2.24 billion.  In satisfying its criminal forfeiture penalty, BNPP will receive credit for payments it made in connection with its resolution of these related state and regulatory matters.  The Treasury Department’s Office of Foreign Assets Control also levied a fine of $963 million, which will be satisfied by payments made to the Justice Department.

This case was investigated by the IRS-CI’s Washington Field Office and FBI’s New York Field Office.  This case was prosecuted by Deputy Chief Craig Timm and Trial Attorney Jennifer E. Ambuehl of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys Andrew D. Goldstein, Martin S. Bell, Christine I. Magdo and Micah W.J. Smith of the Southern District of New York.

The New York County District Attorney’s Office conducted its own investigation alongside the Justice Department in this case.  The Justice Department expressed its gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter.

Source: justice.gov

Washington, DC--(ENEWSPF)--May 1, 2015. Former Puerto Rico Police Officers Jimmy Rodriguez Vega and David Colon Martinez were sentenced today for civil rights and obstruction of justice violations related to the fatal beating of Jose Luis Irizarry Perez, 19, announced Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.  Rodriguez Vega was sentenced to serve 33 months months in prison for violating Irizarry Perez’s civil rights by striking him with a police baton during the incident, and Colon Martinez was sentenced to serve 24 months for making false statements to a Special Agent of the Federal Bureau of Investigation (FBI) and to the federal grand jury during the federal civil rights investigation.

With the issuance of today’s sentences, all six former Puerto Rico police officers who pled guilty for their roles in the beating and obstruction of the subsequent civil rights investigation have been sentenced.  According to documents filed in connection with the underlying guilty pleas, Rodriguez Vega and former Puerto Rico Police Sergeant Erick Rivera Nazario violated the constitutional rights of Irizarry Perez by striking him with their police batons while Colon Martinez physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.  As part of his guilty plea, Rodriguez Vega admitted that after Rivera Nazario struck Irizarry Perez, while he was restrained and not posing a threat to any officer, Rodriguez Vega swung his own police baton as if it were a baseball bat into the victim’s forehead.  In conjunction with his guilty plea, Colon Martinez admitted that he falsely told the FBI and the grand jury that he did not see anyone else hit Irizarry Perez, whereas in truth he observed Rodriguez Vega and Rivera Nazario swing their batons into Irizarry Perez’s head and upper body, after which the victim collapsed to the ground.

U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by three years of supervised release.  During the three-year term, the defendants will be under federal supervision, and risk additional prison time should they violate any terms of their supervised release. 

“The former police officers convicted for their roles in the fatal beating and obstruction of the subsequent investigation violated their sworn oaths to the young victim, his family, and the public at large,” said Principal Deputy Assistant Attorney General Gupta.  “Unfortunately, egregious civil rights violations by a few individuals, such as in this case, damage the public’s trust in law enforcement.  That’s why the department will steadfastly continue to investigate and prosecute these matters, but also work with law enforcement to rebuild that trust and ensure all individuals’ civil rights are protected under the law.”

 “Today’s sentencing brings a measure of justice to the family of Jose Luis Irizarry Perez,” said U.S. Attorney Rodriguez-Vélez.  “The U.S. Attorney’s Office reaffirms its commitment to vigorously prosecute those who abuse their power and official positions at the expense of constitutionally guaranteed civil rights.”

This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras of the District of Puerto Rico.

Source: justice.gov

Washington, DC--(ENEWSPF)--May 1, 2015.  In a settlement agreement with the Navajo Nation, the U.S. will place $13.2 million into an environmental response trust to pay for the evaluations of 16 priority abandoned uranium mines located across Navajo lands.  The investigation of these sites is a necessary step before final cleanup decisions can be made.  The work to be conducted is subject to the approval of the Navajo Nation as the lead agency and the Environmental Protection Agency (EPA) as the supporting agency. 

“This agreement is part of the Justice Department’s increased focus on environmental and health concerns in Indian country as well as the commitment of the Obama Administration to fairly resolve the historic grievances of American Indian tribes and build a healthier future for their people,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “The site evaluations focus on the mines that pose the most significant hazards and will form a foundation for their final cleanup.  In partnership with our sister federal agencies, we will also continue our work to address the legacy of uranium mining on Navajo lands, including ongoing discussions with the Navajo Nation.”

“EPA is proud to help implement this historic settlement,” said Regional Administrator Jared Blumenfeld for EPA for the Pacific Southwest.  “It dovetails with our ongoing activities as we work together to make real progress on the environmental legacy of uranium mining on the Navajo Nation.”

The Navajo Nation encompasses more than 27,000 square miles within Utah, New Mexico and Arizona in the Four Corners area.  The unique geology of the region makes the Navajo Nation rich in uranium, a radioactive ore in high demand after the development of atomic power and weapons at the close of World War II.  Approximately four million tons of uranium ore were extracted during mining operations within the Navajo Nation from 1944 to 1986.  The federal government, through the Atomic Energy Commission (AEC), was the sole purchaser of uranium until 1966, when commercial sales of uranium began.  The AEC continued to purchase ore until 1970.  The last uranium mine on the Navajo Nation shut down in 1986.  Many Navajo people worked in and near the mines, often living and raising families in close proximity to the mines and mills.

Since 2008, a number of federal agencies including EPA, the Department of Energy, the Bureau of Indian Affairs, the Department of the Interior, the Nuclear Regulatory Commission and the Indian Health Service have been collaborating to address uranium contamination on the Navajo Nation.  The federal government has invested more than $100 million to address abandoned uranium mines on Navajo lands.  EPA has remediated 34 homes, provided safe drinking water to 1,825 families, conducted field screening at 521 mines, compiled a list of 46 “priority mines” for cleanup and performed stabilization or cleanup work at nine mines. This settlement agreement resolves the claims of the Navajo Nation pertaining to costs of evaluations at 16 of the 46 priority mines for which no viable responsible private party has been identified.

In April 2014, the Justice Department and EPA announced in a separate matter that approximately $985 million of a multi-billion dollar settlement of litigation against subsidiaries of Anadarko Petroleum Corp. will be paid to EPA to fund the clean-up of approximately 50 abandoned uranium mines in and around the Navajo Nation, where radioactive waste remains from Kerr-McGee mining operations.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 30, 2015. An independent contractor for a trucking company in Afghanistan that was responsible for delivering fuel to U.S. Army installations was sentenced to four years in prison today for offering a U.S. Army serviceman $54,000 in bribes to falsify documents confirming the receipt of fuel shipments that were never actually delivered.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York, Special Inspector General for Afghanistan Reconstruction John F. Sopko, Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office, Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) New York Field Office and Director Frank Robey of the U.S. Army’s Criminal Investigation Command (CID) made the announcement.

Akbar Ahmed Sherzai, 50, of Centreville, Virginia, pleaded guilty on Feb. 14, 2014, to one count of conspiracy to commit bribery.  In addition to the prison sentence, U.S. District Court Judge Margo K. Brodie of the Eastern District of New York ordered Sherzai to forfeit $54,000. 

In connection with his guilty plea and in other court documents, Sherzai acknowledged that he was employed by a local Afghan trucking company contracted to transport fuel between U.S. military bases in Afghanistan.  Sherzai acknowledged that, in April 2013, he approached a U.S. military serviceman to discuss instances in which his company failed to deliver the fuel—called “no-show” missions—which resulted in a $75,000 fine to his company for each no-show.  Sherzai admitted that he offered the serviceman bribes to falsify documents to confirm deliveries, so that Sherzai’s company and others could recover the fines they had paid for no-shows.  On several occasions, Sherzai paid cash bribes to the serviceman, who, unbeknownst to Sherzai, was working with law enforcement.  In total, Sherzai acknowledged that he paid the serviceman $54,000 to falsify documents relating to nine deliveries, allowing his company and others to avoid or recover $675,000 in fines.

This matter was investigated by the Special Inspector General for Afghanistan Reconstruction, FBI, ICE-HSI and CID.  The case is being prosecuted by Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Amir H. Toossi of the Eastern District of New York.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 30, 2015.  Thirteen current and former law enforcement officers and two other individuals have been indicted and arrested for allegedly protecting narcotics shipments and cash proceeds during transit along the east coast for what they believed was a large-scale drug trafficking organization that was actually an undercover operation by the FBI.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division made the announcement.

“Corruption in local government – especially involving law enforcement – threatens the social compact that binds our communities together,” said Assistant Attorney General Caldwell.  “When the officer with a gun and a badge is no different from the trafficker peddling drugs in the street, we all suffer.  That is why the Criminal Division of the Department of Justice and our law enforcement partners in North Carolina and throughout the country are determined to root out corruption, wherever and in whatever form it may be found.”

“The actions by these individuals are particularly troubling due to their current and past affiliation with law enforcement,” said U.S. Attorney Walker.  “Their alleged conduct was reprehensible and my office will not tolerate this kind of corruption in our district.  I am grateful for the outstanding work of the FBI Special Agents who investigated this case.”

“They vowed to protect and serve, but instead these deputies and correctional officers sold their badges and used their law enforcement positions to line their own pockets,” said Special Agent in Charge Strong.  “Public corruption at any level is the number one criminal priority of the FBI and we will work aggressively to protect the public trust.”

The following individuals were indicted in the Eastern District of North Carolina and arrested today in a coordinated operation by the FBI:

• Lann Tjuan Clanton, 36, a correctional officer with the Virginia Department of Corrections;

• Ikeisha Jacobs, 32, a deputy with the Northampton County Sheriff’s Office;

• Jason Boone, 29, a deputy with the Northampton County Sheriff’s Office;

• Wardie Vincent Jr., 35, formerly of the Northampton County Sheriff’s Office;

• Adrienne Moody, 39, a correctional officer with the North Carolina Department of Public Safety;

• Cory Jackson, 43, formerly of the Northampton County Sheriff’s Office;

• Jimmy Pair Jr., 48, a deputy with the Northampton County Sheriff’s Office;

• Curtis Boone, 31, a deputy with the Northampton County Sheriff’s Office;

• Antonio Tillmon, 31, a police officer with the Windsor City Police Department;

• Alaina Kamling, 27, a correctional officer with the North Carolina Department of Public Safety;

• Kavon Phillips, 25, a correctional officer with the North Carolina Department of Public Safety;

• Crystal Pierce, 31, of Raleigh, North Carolina;

• Alphonso Ponton, 42, a correctional officer with the Virginia Department of Corrections;

• Thomas Jefferson Allen II, 37, a deputy with the Northampton County Sheriff’s Office; and

• Tosha Dailey, 31, a 911 dispatch operator for Northampton County.

All 15 defendants are charged with conspiring to distribute controlled substances and conspiring to use and carry firearms during and in relation to drug trafficking offenses.  Other charges against certain defendants include attempted extortion, attempted possession with intent to distribute controlled substances, money laundering, federal programs bribery and use and carry of firearms during and in relation to crimes of violence and drug trafficking offenses.

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

The case is being investigated by the FBI’s Charlotte Division, Raleigh Resident Agency and the North Carolina Department of Public Safety, with assistance from the Halifax County Sheriff’s Office.  The case is being prosecuted by Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Brian S. Meyers of the Eastern District of North Carolina.

Source: justice.gov

Washington, DC--(ENEWSPF)--April 30, 2015.  The Justice Department announced that Huntsville, Alabama, Police Department Officer Brett Russell, 48, has been charged with deprivation of rights under color of law for allegedly assaulting and injuring G.H., a detainee, on Dec. 23, 2011.  Russell also has been charged with obstruction of justice for allegedly filing a false police report regarding this incident.

The indictment identifies the subject of the arrest by the initials, “G.H.”  According to the indictment, Russell falsely stated in his incident report that G.H. kicked at officers, attempted to head-butt officers while they transported him to Russell's vehicle, that he was told to stop resisting several times but would not comply and that he was transported to the Huntsville metro jail “without incident.”  Russell omitted from his report that he "had struck G.H. with his fist and kneed G.H. in the body," as the indictment says.

Russell faces a maximum sentence of 10 years in prison for the civil rights charge and 20 years for the obstruction charge.  An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty.

The investigation by the Florence Resident Agency of the FBI is ongoing.  The case is being prosecuted by Trial Attorney Carroll McCabe of the Civil Rights Division and Assistant U.S. Attorney Xavier O. Carter Sr. of the Northern District of Alabama.

Source: justice.gov

Kolon Sentenced To Pay $360 Million in Restitution And Fines

Washington, DC--(ENEWSPF)--April 30, 2015.  Kolon Industries Inc., a South Korean industrial company, pleaded guilty this morning in federal court in Alexandria, Virginia, to conspiracy to steal trade secrets involving E.I. DuPont de Nemours & Co.’s (DuPont) Kevlar technology.  The company was sentenced to pay $85 million in criminal fines and $275 million in restitution. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond, Virginia, Division made the announcement.

Kolon Industries Inc., appearing through two successor entities—Kolon Industries Inc. and Kolon Corporation (collectively, Kolon)—pleaded guilty to one count of conspiracy to convert trade secrets before U.S. District Judge Anthony J. Trenga of the Eastern District of Virginia. 

“Protecting the trade secrets of American businesses sustains the integrity and competitiveness of the American economy, and encourages the development of new products, including advanced technologies,” said Assistant Attorney General Caldwell.  “The Criminal Division is committed to ensuring that foreign companies, like Kolon Industries, cannot escape the reach of the criminal justice system when they have conspired to steal the results of American ingenuity and our companies’ intellectual property.”

“Research and development are pillars of our economy, and we cannot allow anyone to obtain by theft what innovators develop through effort and ingenuity,” said U.S. Attorney Boente.  “Today’s outcome confirms that we will aggressively investigate and prosecute intellectual property crimes, regardless of whether the perpetrators are foreign or domestic, corporations or individuals.  There are no safe harbors for those who seek to steal trade secrets in the Eastern District of Virginia.”

“Protecting American companies from the theft of their trade secrets is a high priority for the FBI,” said Special Agent in Charge Lee.  “Each year, billions of U.S. dollars are lost to foreign competitors who pursue illegal commercial short cuts by stealing valuable advanced technologies.  This case demonstrates the FBI’s ability to penetrate these highly sophisticated criminal schemes and bring their perpetrators to justice.  Its outcome should send a clear message to foreign commercial actors who seek to illegally exploit American companies and steal our nation’s innovation and technology.”

According to the statement of facts filed with the plea agreement, from June 2006 to February 2009, Kolon conspired with former DuPont employees and others to steal DuPont’s trade secrets for making Kevlar, a high-strength, para-aramid synthetic fiber.  Kevlar, a trademarked name, is one of DuPont's most well-known products and is used is a wide range of commercial applications such as body armor, fiber optic cables, and automotive and industrial products.  Kolon admitted that it was attempting to improve the quality of its own para-aramid fiber known as Heracron. 

Kolon personnel met repeatedly with former DuPont employees, including Edward Schulz, 72, of Brownstown, Pennsylvania, and Michael Mitchell, 58, of Chesterfield, Virginia, to obtain confidential and proprietary DuPont information about Kevlar.  Schulz pleaded guilty to conspiracy to steal trade secrets in September 2014 and is scheduled to be sentenced on June 26, 2015.  Mitchell pleaded guilty to theft of trade secrets and obstruction of justice in December 2009 and was sentenced to 18 months in prison. 

Kolon admitted that it obtained technical and business documents regarding Kevlar, including instructional materials that described DuPont’s “New Fiber Technology,” documents on polymerization, and a detailed breakdown of DuPont’s capabilities and costs for the full line of its Kevlar products and DuPont’s Kevlar customers.

According to the statement of facts and Mitchell’s admissions at his guilty plea, Mitchell exchanged numerous telephone calls and emails with Kolon personnel.  On more than one occasion, Mitchell advised Kolon personnel that some of the information they sought was proprietary and that DuPont considered such information to be trade secrets.  Mitchell also coordinated a meeting at a hotel in Richmond, at which Kolon personnel were introduced to a cooperating witness who pretended to be a disgruntled scientist from DuPont.  During the Richmond meeting, Kolon personnel indicated that they would only be comfortable communicating with the cooperating witness in a manner that was confidential and that would not leave an evidentiary trail.

In February 2009, DuPont filed a civil lawsuit against Kolon in the Eastern District of Virginia, alleging theft of trade secrets.  Thereafter, certain Kolon personnel attempted to delete files and emails related to Mitchell, Schulz and outside consultants hired to improve Kolon’s para-aramid fiber, and urged other Kolon personnel to search for such materials and mark them for deletion.

Kolon also admitted that certain employees approached a former employee of an American subsidiary of Teijin Ltd. – a Japanese company that makes the para-aramid fiber called Twaron—in an unsuccessful effort to obtain information about Twaron.

This case represents the first time that foreign corporations with no direct presence in the United States were found to be successfully served with U.S. criminal process, over their objections, based on service pursuant to an international treaty.  In December 2014, the district court found that both of the successor companies were properly served, and ordered them to appear for arraignment.  In February 2015, the Fourth Circuit Court of Appeals denied Kolon’s petition for extraordinary relief seeking reversal of the district court’s order.

Five former Kolon executives and employees, all of South Korea, were charged in an August 2012 indictment filed in the Eastern District of Virginia: Jong-Hyun Choi, 58, a senior executive who oversaw the Heracron Business Team; In-Sik Han, 52, who managed Kolon’s research and development related to Heracron; Kyeong-Hwan Rho, 49, the head of the Heracron Technical Team; Young-Soo Seo, 51, the general manager for the Heracron Business Team; and Ju-Wan Kim, 42, a manager on the Heracron Business Team.

None of these individuals has appeared in the United States to face the charges.  The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

The case was investigated by the FBI’s Richmond Division.  The case is being prosecuted by Assistant U.S. Attorneys Kosta S. Stojilkovic and Matthew Burke of the Eastern District of Virginia, Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Senior Counsel Rodolfo Orjales of the Criminal Division’s Computer Crime and Intellectual Property Section.  The Criminal Division’s Office of International Affairs has provided valuable assistance.

Source: justice.gov