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

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)—May 5, 2015. The Justice Department announced today that it reached settlement agreements with the city of Parowan, Utah; the city of Española, New Mexico; and the village of Ruidoso, New Mexico.  The agreements resolve investigations of each public entity under Title I of the Americans with Disabilities Act (ADA).  The investigations found that each jurisdiction’s online employment application asked questions about disabilities in violation of the ADA.  The ADA does not permit employers to inquire as to whether an applicant is an individual with a disability or as to the nature of such disability before making a conditional offer of employment.  Under Section 503 of the Rehabilitation Act of 1973, however, federal contractors subject to affirmative action requirements must invite an applicant voluntarily to self-identify as an individual with a disability, consistent with certain requirements. 

Two investigations also found that the public entity’s online employment opportunities website or job applications were not fully accessible to people with disabilities, such as those who are blind or have low vision, are deaf or hard of hearing, or have physical disabilities affecting manual dexterity (such as limited ability to use a mouse).  In recent months, the department reached similar settlement agreements with the cities of DeKalb, Illinois; Vero Beach, Florida; Fallon, Nevada; Isle of Palms, South Carolina; Hubbard, Oregon; and Florida State University. 

“These agreements ensure that job applicants with disabilities will have an equal chance to compete for jobs in the public sector and won’t face illegal questions,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “We commend each public entity for its cooperation in making the job application process more accessible.”   

Under the settlement agreements, each public entity agrees to ensure that its hiring policies and procedures do not discriminate against any applicant on the basis of disability, including by:

not conducting a medical examination or making a disability-related inquiry of a job applicant before a conditional offer of employment is made;

not requiring a medical examination or making inquiries of an employee as to whether such employee is an individual with a disability or as to the nature or severity of the disability, unless such examination or inquiry is shown to be job-related and consistent with business necessity;

maintaining the medical or disability-related information of applicants and employees in separate, confidential medical files; and

training employees who make hiring or personnel decisions on the requirements of the ADA, designating an individual to address ADA compliance matters, and reporting on compliance.

Parowan and Ruidoso must also ensure that their online employment opportunities website and job applications conform with the Web Content Accessibility Guidelines 2.0, which are industry guidelines for making web content accessible.

Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

Related Material:

Espanola Settlement Agreement

Parowan Settlement Agreement

Ruidoso Settlement Agreement

Source: justice.gov

Washington, DC—(ENEWSPF)—May 5, 2015. The Justice Department’s Civil Rights Division announced today that a settlement has been reached with the Bullhead City Fire District (BCFD) in Arizona, resolving claims that BCFD violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), by discriminating against U.S. Army Reserves Member Brett Guinan  and by failing to reemploy him following his military deployment.  USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations, and provides that service members shall not be discriminated against because of their military obligations.              

According to the complaint, filed yesterday in the United States District Court of the District of Arizona, BCFD discriminated against Guinan by terminating his employment on the basis of his military service.  The complaint alleges that, between 2008 and 2013, Guinan was deployed three times in the Army Reserves.  During his second military deployment, Guinan’s supervisor began making negative statements about Guinan’s military service obligations.  In June 2013, while Guinan was serving his third deployment, BCFD eliminated Guinan’s Fire Inspector position and terminated his employment, claiming to have undergone a “reduction in workforce.”  Guinan’s Fire Inspector position, however, was the only job position eliminated in 2013.  After Guinan’s position was eliminated, BCFD also continued to pay other people to perform Guinan’s Fire Inspector duties and continued to post new job openings on its website.  The complaint further alleges that after Guinan returned from his third deployment, he notified BCFD that he was seeking reemployment.  Despite Guinan’s efforts to be reemployed, BCFD refused to reemploy him as required by USERRA.

Under the terms of the settlement agreement, filed along with the complaint, BCFD has agreed to pay $75,000 as back pay and front pay damages to Guinan.  BCFD also has agreed to adopt a new personnel policy that informs employees of their rights and obligations under USERRA and to provide USERRA training to all supervisory staff in its five fire stations.

“This settlement will provide much needed relief to U.S. Army Reserve Member Brett Guinan, who lost his job simply for serving our country,” said Acting Associate Attorney General Stuart F. Delery.  “I want to thank the Department of Labor for referring this case to the Department of Justice. I’m hopeful that through the department’s newly created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”

“The men and women who wear our nation’s uniform need to know that they will be protected from the types of injustice experienced by Mr. Guinan,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “The Department of Justice, through its enforcement of USERRA, strongly supports the right of service members to retain their rightful positions in the workforce both while they serve and after they complete their military service to our country.”

This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service.  The case is being handled by the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of Army Reserves service members upon their return to civilian life.

The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA.  Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

Related Material:

Guinan Complaint

Guinan Settlement Agreement

Source: justice.gov

Company Must Pay $232.7 Million Penalty

Washington, DC--(ENEWSPF)--May 7, 2015.  The U.S. District Court of the District of Columbia entered a formal judgment yesterday memorializing the sentence requiring Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd, to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.

The judgment was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Under Secretary Eric L. Hirschhorn of the U.S. Commerce Department’s Bureau of Industry and Security (BIS). 

At a hearing on April 30, 2015, the District Judge John D. Bates of the District of Columbia accepted the company’s guilty plea and sentenced the company to the proposed sentence articulated in the plea agreement, which called for the fine and other terms of corporate probation.  The court recognized the seriousness of SOHL’s criminal conduct, which posed a threat to our national security.  In addition, the court noted that the scope of criminal conduct justified the large monetary penalty imposed.  Finally, the court concluded that the terms of probation provided adequate deterrence to SOHL as well as other companies.  Yesterday, the court entered the written judgment confirming the sentence imposed on April 30, 2015.

“The court’s judgment represents a milestone in the enforcement of U.S. sanctions laws,” said Assistant Attorney General Carlin.  “This case marks the first conviction of a corporate entity for facilitating violations of the International Economic Emergency Powers Act and the highest criminal fine ever imposed in a sanctions prosecution.  The Court’s imposition of this serious sentence should serve as a strong deterrent for multinational corporations doing any business in countries subject to U.S. economic sanctions.”

“This guilty plea and sentence hold this company accountable for violating trade laws by doing business with sanctioned countries and undermining the interests of the United States,” said Acting U.S. Attorney Cohen. “We hope that other companies tempted to break our export laws take note of the $232.7 million penalty that will be paid in this case.”

The criminal information and plea agreement were filed on March 25, 2015, in federal court in the District of Columbia, charging SOHL with one count of knowingly and willfully conspiring to violate IEEPA.  The plea agreement that the court approved also requires SOHL to submit to a three-year period of corporate probation and agree to continue to cooperate with the government and not commit any additional felony violations of U.S. federal law.  SOHL’s monetary penalty includes a $77,569,452 criminal forfeiture and an additional $155,138,904 criminal fine.  The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.  In addition to SOHL’s commitments, under the plea agreement SOHL’s parent company, Schlumberger Ltd., has also agreed to the following terms during the three-year term of probation, among others: maintaining its cessation of all operations in Iran and Sudan, reporting on the parent company’s compliance with sanctions, responding to requests to disclose information and materials related to the parent company’s compliance with U.S. sanctions laws when requested by U.S. authorities, and hiring an independent consultant to review the parent company’s internal sanctions policies and procedures and the parent company’s internal audits focused on sanctions compliance. 

The court agreed that in addition to SOHL continuing its cooperation with U.S. authorities throughout the three-year period of probation and agreeing not to engage in any felony violation of U.S. federal law, SOHL’s parent company, Schlumberger Ltd., will also hire an independent consultant who will review the parent company’s internal sanctions policies, procedures and company-generated sanctions audit reports.

According to court documents, starting on or about early 2004 and continuing through June 2010, Drilling & Measurements (D&M), a United States-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of SOHL.  Although SOHL, as a subsidiary of Schlumberger Ltd., had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures.  As a result of D&M’s lack of adherence to U.S. sanctions combined with SOHL’s failure to train properly U.S. persons and to enforce fully its policies and procedures, D&M, through the acts of employees residing in the United States, violated U.S. sanctions against Iran and Sudan by: (1) approving and disguising the company’s capital expenditure requests from Iran and Sudan for the manufacture of new oilfield drilling tools and for the spending of money for certain company purchases; (2) making and implementing business decisions specifically concerning Iran and Sudan; and (3) providing certain technical services and expertise in order to troubleshoot mechanical failures and to sustain expensive drilling tools and related equipment in Iran and Sudan. 

The investigation that commenced in 2009 was led by the Justice Department’s National Security Division, the U.S. Attorney’s Office of the District of Columbia and the U.S. Department of Commerce BIS’ Dallas Field Office.  Assistant Attorney General Carlin is grateful to Special Agent Troy Shaffer from BIS’ Dallas Field Office for his excellent work.  Assistant Attorney General Carlin also acknowledged the work of those who handled the case from the National Security Division and the U.S. Attorney’s Office, including former Trial Attorney Ryan Fayhee and former Assistant U.S. Attorneys John Borchert and Ann H. Petalas.

The case was prosecuted by Trial Attorney Casey Arrowood of the National Security Division, Assistant U.S. Attorney Maia L. Miller of the National Security Section and Assistant U.S. Attorney Zia Faruqui of the District of Columbia.

Source: justice.gov

Washington, DC--(ENEWSPF)--May 7, 2015.  A federal grand jury has brought an additional charge against Christopher Lee Cornell, 21, of Green Township, Ohio.  In a superseding indictment returned in Cincinnati, he is now also charged with attempting to provide material support to a designated foreign terrorist organization.

The charge is in addition to the original Jan. 21, 2015, indictment that charged Cornell with attempting to kill officers and employees of the United States, solicitation to commit a crime of violence and possession of a firearm in furtherance of a crime of violence.  Cornell was charged for his alleged participation in a plot to attack the U.S. Capitol Building and kill government officials.

The superseding indictment, which was returned today, was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Division.

The four-count superseding indictment alleges that on or about August 2014 through January 2015, Cornell allegedly plotted, planned and attempted to attack the U.S. Capitol.

The defendant is also alleged to have attempted to provide material support and resources to a foreign terrorist organization, specifically the Islamic State of Iraq and the Levant (ISIL), knowing that the organization was a designated foreign terrorist organization and that the organization had engaged in and was continuing to engage in terrorist activity.  Material support and resources consisted of personnel in the form of the defendant himself by plotting and attempting to execute an attack on the U.S. Capitol.

Cornell allegedly attempted to kill officers and employees of the United States during their official duties, specifically by attempting to attack the U.S. Capitol Building.  During that same time, the defendant allegedly attempted to persuade others to kill officers and employees of the United States.  Cornell also allegedly possessed two semi-automatic rifles and approximately 600 rounds of ammunition.

Providing material support to a designated foreign terrorist organization carries a potential maximum sentence of 15 years in prison.  Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison.  Solicitation to commit an attempted murder is a crime punishable by 20 years in prison.  Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.

Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF).  The JTTF is made up of officers and agents from the Cincinnati Police Department; Colerain, Ohio, Police Department; Dayton, Ohio, Police Department; Ohio State Highway Patrol; U.S. Immigrations and Customs Enforcement; U.S. Secret Service; and West Chester, Ohio, Police Department.

Assistant Attorney General Carlin and U.S. Attorney Stewart commended the investigation of this case by the JTTF.  The case is being prosecuted by Trial Attorney Michael Dittoe of the Justice Department’s National Security Division and Assistant U.S. Attorney Tim Mangan of the Southern District of Ohio.

An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

Related Material:

Cornell Superseding Indictment

Source: justice.gov