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Department of Justice Press Releases

District Man Pleads Guilty Mid-Trial to Hate Crimes Charges

by DOJ Press December 16, 2022
By DOJ Press

            WASHINGTON – Norman Wilson, 40, of Washington, D.C., pleaded guilty today, mid-trial, to charges stemming from two assaults in which he targeted Hispanic individuals based on their race and/or national origin, announced United States Attorney Matthew M. Graves.  

            Wilson pleaded guilty to two counts of simple assault with a bias-related enhancement for each count. The guilty plea followed a day and half of trial in the Superior Court of the District of Columbia.  The Honorable Peter Krauthamer immediately sentenced Wilson to 270 days of suspended time with time served for one charge, and 200 days of suspended time with time served for the second charge. The judge also imposed 1 year of supervised probation for each count.

            Mr. Wilson assaulted the first victim on May 15, 2022, at the Dupont Circle Metro Station.  During this assault, Mr. Wilson targeted the victim, hit the victim with a metal object, and then made derogatory statements directed at the victim being Hispanic.  The second assault took place on May 22, 2022, when Mr. Wilson targeted a Hispanic victim inside of the Friendship Heights Metro Station, kicked the victim in the back while descending the escalator, followed the victim throughout the station, and assaulted the victim a second time, all the while making derogatory comments directed at the victim’s race and/or national origin.  After Mr. Wilson was arrested, he was interviewed by detectives from the Metropolitan Transit Police Department. During this interview, Mr. Wilson stated his beliefs that there are too many foreigners in America, they are not humble enough, and other similar xenophobic statements.

            In announcing the sentence, U.S. Attorney Graves and Chief Michael Anzallo, of the Metro Transit Police Department, commended the work of those who investigated the case from the Metro Transit Police Department.  He also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Christopher Lionette, Daphne Teresa Nelson, and Wanda Trice, as well as Victim/Witness Coordinator Maria Sanchez-Garcia.

            Finally, he commended the efforts of Special Assistant U.S. Attorney Matthew Goldstein and Assistant U.S. Attorney Thomas Derbish, who prosecuted the case, and AUSA Bonnie Lindemann, who investigated the case.

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CBP Officers Seize Over $840K in Methamphetamine at Eagle Pass Port of Entry

by Charlie Dwyer December 16, 2022
By Charlie Dwyer

EAGLE PASS, Texas—U.S. Customs and Border Protection (CBP), Office of Field Operations (OFO) officers assigned to the Camino Real International Bridge seized methamphetamine that totaled over $840,000 in street value.

“Our CBP officers’ knowledge of concealment methods and the technology they utilize on a daily basis played a key role in the discovery of narcotics,” said Acting Port Director Michael Martinez, Eagle Pass Port of Entry. “I congratulate the officers in their continued efforts to uphold the CBP mission and protect the public from illegal narcotics.”

Packages containing 91 pounds of methamphetamine seized by CBP officers at Eagle Pass Port of Entry.
Packages containing 91 pounds of methamphetamine seized by CBP officers at Eagle Pass Port of Entry.

On Tuesday, December 13, CBP officers assigned to the Camino Real Bridge encountered a 38-year-old male Mexican citizen driving a 2015 Chevrolet Trax making entry from Mexico. The vehicle was selected for inspection. Following a canine and non-intrusive inspection system examination, CBP officers discovered a total of 91.6 pounds of alleged methamphetamine concealed within the vehicle.

The methamphetamine has an estimated street value of $842,504.

The driver was arrested. CBP seized the narcotics and vehicle. The case was turned over to Maverick County Sheriff’s Office for further investigation.

For more information about CBP, please click on the attached link.

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Follow the Director of CBP’s Laredo Field Office on Twitter at @DFOLaredo also U.S. Customs and Border Protection at @CBPSouthTexas for breaking news, current events, human interest stories and photos.

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Agents arrest sex offender attempting to cross border

by Charlie Dwyer December 16, 2022
By Charlie Dwyer

EL CENTRO, TX – On Monday night, U.S. Border Patrol agents assigned to the El Centro Sector arrested an undocumented individual with a prior sexual offense conviction.  

The record checks revealed that one of the individuals had been convicted of a sexual offense and had previously been ordered removed from the U.S. by an immigration judge. This individual will face federal charges.

It was estimated that two individuals illegally entered the United States three miles east of the Calexico Port of Entry and were approximately one mile north of the United States/Mexico border when agents apprehended them at approximately 10:16 p.m. The individuals were placed under arrest and transported to the El Centro Sector Processing Center after agents determined that they did not possess the proper documentation to be legally present in the United States.

Four individuals with prior charges of sexual offenses have been arrested and/or removed from the El Centro Sector Border Patrol since Oct. 1, 2022.      

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Exclusive-PepsiCo to roll out 100 Tesla Semis in 2023, exec says

by Reuters December 16, 2022
By Reuters

By Jessica DiNapoli and Hyunjoo Jin

NEW YORK/SAN FRANCISCO (Reuters) -PepsiCo plans to roll out 100 heavy-duty Tesla Semis in 2023, when it will start using the electric trucks to make deliveries to customers like Walmart and Kroger, the soda maker’s top fleet official told Reuters on Friday.

PepsiCo Inc, which ordered the big trucks in 2017, is purchasing them “outright” and is also upgrading its plants, including installing four 750-kilowatt Tesla Inc charging stalls at both its Modesto and Sacramento locations in California, PepsiCo Vice President Mike O’Connell said in an interview. A $15.4 million state grant and $40,000 federal subsidy per vehicle helps offset part of the costs.

“It’s a great starting point to electrify,” said O’Connell, who oversees the company’s fleet of vehicles.

“Like any early technology, the incentives help us build out the program,” he said, adding that there were “lots” of development and infrastructure costs.

PepsiCo is the first company to experiment with the battery-powered Tesla Semis as a way of cutting its environmental impact.

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United Parcel Service Inc and food delivery company Sysco Corp have also reserved the trucks, while retailer Walmart Inc is testing alternatives.

PepsiCo’s plans to use the Semis have been reported, but O’Connell provided new details on how the company is using them and its timeline for deploying them. Tesla Chief Executive Elon Musk initially said the trucks would be in production by 2019, but that was delayed due to battery constraints.

PepsiCo said it plans to deploy 15 trucks from Modesto and 21 from Sacramento. It is unclear where the others will be based but O’Connell said the firm is targeting rolling out the Semis in the central United States next, and then the East Coast.

The company’s Frito-Lay division sells lightweight food products, making it a good candidate for electric trucks, which have heavy batteries that could limit cargo capacity.

The Semis will haul Frito-Lay food products for around 425 miles (684 km), but for heavier loads of sodas, the trucks will initially do shorter trips of around 100 miles (160 km), O’Connell said. PepsiCo then will also use the Semis to haul beverages in the “400 to 500 mile range as well,” O’Connell said.

“Dragging a trailer full of chips around is not the most intense, tough ask,” said Oliver Dixon, senior analyst at consultancy Guidehouse.

“I still believe that Tesla has an awful lot to prove to the broader commercial vehicle marketplace,” Dixon said, citing Tesla’s unwillingness to offer information on payload and pricing.

PepsiCo has earmarked some of the trucks planned for the Sacramento location to make deliveries to Walmart and grocers such as Kroger Co and Albertsons Cos Inc. The trucks at the Modesto Frito-Lay plant have just gone to PepsiCo distribution centers, O’Connell said.

All of the Semis going to PepsiCo will have a 500-mile (805-km) range. O’Connell added that he is not aware of when Tesla will start deploying 300-mile (480-km) trucks. When Tesla starts building them, PepsiCo “will rotate those up” into its fleet, he said.

PepsiCo declined to share details on the price of the trucks, a figure that Tesla has kept quiet. Competing vehicles sell for $230,000 to $240,000, said Mark Barrott of consulting firm Plante Moran. He added that the 500-mile range Tesla Semi could be priced higher because its 1,000-kilowatt-hour (kWh) battery pack is about twice the size of many of its rivals.

“We keep the trucks for a million miles, seven years,” O’Connell said. “The operating costs over time will pay back.”

The Gatorade maker declined to share specifics on the weight of the trucks, another closely guarded secret by Tesla.

He said Tesla did not help pay for the trucks’ megachargers but provided design and engineering services for the facilities, which come with solar and battery storage systems.

O’Connell said that a 425-mile (684-km) trip carrying Frito-Lay products brings the Semi’s battery down to roughly 20%, and recharging it takes around 35 to 45 minutes.

(Reporting by Jessica DiNapoli in New York and Hyun Joo Jin in San Francisco; additional reporting by Joe White and Siddharth Cavale; Editing by Jonathan Oatis and Rosalba O’Brien)

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TuSimple plans to layoff half its workforce next week – WSJ

by Reuters December 16, 2022
By Reuters

(Reuters) – Self driving trucking company TuSimple Holdings Inc plans to potentially cut half of its workforce next week, WSJ reported.

The job cut would likely affect at least 700 employees, the report said citing people familiar with the matter.

TuSimple did not immediately respond to a Reuters request for comment.

The potential layoffs come after the self-driving truck startup removed its Chief Executive Officer Xiaodi Hou in October following an investigation by its board which revealed some employees spent paid hours last year working for Hydron Inc, a startup working on autonomous trucks mostly in China.

During November, TuSimple reinstated its former CEO Cheng Lu and removed four independent directors and appointed co-founder and major shareholder Mo Chen as executive chairman of the board.

(Reporting by Sneha Bhowmik in Bengaluru; Editing by Michael Perry)

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Tesla plans to announce Mexico EV plant as soon as next week -Bloomberg News

by Reuters December 16, 2022
By Reuters

(Reuters) – Tesla Inc is finalizing plans to build an electric vehicle assembly plant in an industrial area of northeastern Mexico and may announce the factory as early as next week, Bloomberg News reported late Friday.

The plant will be located in Santa Catarina in Monterrey city, the capital of Nuevo Leon state in Mexico, the report said, citing people familiar with the matter.

Final details are still being worked out, and the talks with the company have involved both the state government and Mexico’s foreign relations ministry, the report said.

It is unclear what models Tesla would produce in the Mexican factory or when it would begin production, Bloomberg said. Details could be announced in coming days, it said.

Tesla did not immediately respond to a Reuters request for comment.

Two people with knowledge of the matter told Reuters in October that Tesla Chief Executive Elon Musk was considering investing in the northern Mexican state of Nuevo Leon, which borders Texas.

Musk held a meeting in the state with Nuevo Leon Governor Samuel Garcia along with other local officials, and Ken Salazar, the U.S. ambassador to Mexico, one of the sources said.

(Reporting by Rhea Binoy in Bengaluru; Editing by Tom Hogue)

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At least three killed in Russian missile strikes on Ukraine

by Reuters December 16, 2022
By Reuters

By Tom Balmforth and Olena Harmash

KYIV (Reuters) -Russia rained down scores of missiles on Ukraine’s power grid on Friday, killing at least three people, damaging nine energy facilities and forcing Kyiv to introduce emergency blackouts across the country as winter bites.

Many people headed for shelters during the morning rush hour to take cover from the latest big attack on vital infrastructure since October, which a Kyiv official described as one of the largest missile barrages since Russia invaded in February.

The mayor of Kharkiv, Ukraine’s second largest city, reported “colossal” damage, threatening to leave many people without heating in freezing winter temperatures. The governor of the central region of Dnipropetrovsk reported “serious damage”.

Air defences took out 60 out of 76 incoming missiles fired at critical infrastructure, Ukraine’s top general said. Moscow deliberately tried to distract the air defences by flying warplanes near Ukraine, Air Force spokesperson Yuriy Ihnat said.

“They want to destroy us, and make us slaves. But we will not surrender. We will endure,” said Lidiya Vasilieva, 53, as she headed for shelter at a Kyiv railway station. “I want the war over and soon. But I am ready to wait as long as needed.”

Three people were killed in the central city of Kryvyi Rih, authorities said, and a fourth died in a fire in the southern Kherson region after an apartment block was hit by shelling before the missile strike.

The attack in Kryvyi Rih, President Volodymyr Zelenskiy’s hometown, also wounded at least 13 people, including four small children, a senior official said.

Grid operator Ukrenergo warned that repair times would be longer compared with previous ones and that it would take longer to restore power.

“What we already see is damage to about nine (power) generating facilities. Now we are still verifying the damage,” Energy Minister German Galushchenko told national television.

The central city of Poltava and parts of Kyiv were among areas where power was knocked out. Critical infrastructure was hit in the northeastern region of Kharkiv, the Black Sea region of Odesa and in Vinnytsia in west central Ukraine.

Three loud blasts were heard in Kyiv and smoke wafted overhead, Reuters witnesses said. Some railway lines were left without power.

“There is colossal damage to infrastructure, primarily the energy system,” Kharkiv Mayor Ihor Terekhov said. “I ask you to be patient with what is happening now. I know that in your houses there is no light, no heating, no water supply.”

Kyrylo Tymoshenko, deputy head of Zelenskiy’s office, said emergency power shutdowns had been introduced nationwide to enable repairs.

UKRAINE REMAINS DEFIANT

The initial air alert in Kyiv was lifted four hours after it was announced as children made their way to school and people travelled to work.

The cavernous Kyiv metro system, which has one of the deepest stations in the world, stopped functioning and was used as a bomb shelter.

Russia, which invaded Ukraine in February, Moscow says attacks on basic infrastructure are militarily legitimate. Ukraine says attacks intended to cause civilian misery are a war crime.

“The goal of the Russian Federation is for Ukrainians to be constantly under pressure, to go down into bomb shelters almost every day, to feel discomfort due to power outages or water interruptions,” Economy Minister Yulia Svyrydenko wrote on Facebook.

“But Ukraine’s position is unchanged: let it be without light, but #withoutyou. We will endure. We will win. We will rebuild.”

(Additional reporting by Aleksandar Vasovic and Pavel Polityuk, Editing by Timothy Heritage)

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Father of accused Illinois gunman faces charges in July 4 parade mass shooting

by Reuters December 16, 2022
By Reuters

By Steve Gorman

(Reuters) – An Illinois prosecutor has filed felony charges against the father of the man accused of opening fire on a crowd watching a July Fourth parade in Chicago’s Highland Park suburb five months ago, killing seven people and injuring dozens.

The father, Robert Crimo Jr., turned himself in to police on Friday under an arrest warrant charging him with seven counts of reckless conduct related to helping his son to obtain a state firearms license in 2019.

Lake County State’s Attorney Eric Rinehart said the elder Crimo was criminally reckless when he sponsored his son’s application for a firearm owner identification (FOID) card, despite knowing his son was unfit to own a gun.

“He knew what he knew and he signed the form anyway,” Rinehart told a news conference. “This was criminally reckless and a contributing cause to the bodily harm suffered by victims on July Fourth.”

Rinehart declined to specify what knowledge the father had that should have dissuaded him from sponsoring his son’s application.

Authorities have previously acknowledged the accused gunman, Robert Crimo, applied for a FOID card at age 19 in December 2019, three months after police were called to his home for a report that he had threatened to kill family members.

According to law enforcement, the police seized a collection of 16 knives, a dagger and a sword, but the weapons were returned after the father told authorities they were his.

The alleged threat in September 2019 followed a prior incident in which police responded to an emergency call reporting that the younger Crimo had attempted suicide.

The son used the FOID card he later received to legally purchase five guns between 2020 and 2021, including the one police said he used to shoot his victims from a sniper’s perch on a rooftop above the parade route. By then he was 21.

The younger Crimo could not have legally applied for a FOID card in 2019 without a parent or guardian signing for him because he was under 21 at that time.

The father was due appear in court on Saturday for a bond hearing. If convicted, he would likely face a prison term of up to three years, Rinehart said.The situation was reminiscent of involuntary manslaughter charges brought against the parents of a teenager who shot four classmates to death at a Detroit-area high school last year. Prosecutors said the couple bought their son a gun despite signs he was disturbed. The parents have pleaded not guilty.

The Michigan case appeared to mark the first instance in which the parents of a teenage school shooter were prosecuted in connection with crimes allegedly committed by their child.

In the Illinois case, questions were also raised about how that state’s comparatively strict gun laws, including the FOID licensing requirements, failed to prevent the July Fourth massacre.

Highland Park police filed a “clear and present danger” report with state police regarding the younger Crimo on the day of the September 2019 call to his home over the alleged threat he made against relatives.

But a state police officer later disregarded that report as based on “second-hand” information, so it was not a factor when the Crimo FOID application was later reviewed by state police.

(Editing by Cynthia Osterman)

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Mexican president condemns attempt on prominent journalist’s life

by Reuters December 16, 2022
By Reuters

MEXICO CITY (Reuters) – Mexico’s president condemned on Friday an apparent assassination attempt on a prominent news anchor he has often clashed with, prompting calls for better security for media workers as journalist slayings hit record levels in the country.

Television and radio presenter Ciro Gomez Leyva said two unidentified people on a motorcycle shot at him when he was in his car some 200 meters (660 feet) from his home on Thursday night.

He shared images of bullet impacts on the car on Twitter, saying he survived because of the vehicle’s armor. Gomez was back on the air on his morning radio show on Friday.

President Andres Manuel Lopez Obrador has repeatedly lambasted Gomez and other journalists critical of his policies, but opened his daily morning conference by denouncing the attack.

“He’s a journalist, a human being, but he’s also a leader of public opinion. Hurting a figure like Ciro creates a lot of political instability,” Lopez Obrador said.

On Wednesday, Gomez was singled out for criticism during a regular section of a news conference dedicated to identifying what Lopez Obrador calls the media’s “lies of the week.”

“Imagine if you just listened to Ciro or Loret de Mola or Sarmiento,” Lopez Obrador said, naming Gomez and other leading journalists. “It’s even bad for your health, I mean if you listen to them a lot, you could even develop a brain tumor.”

The assassination attempt underscored “even in Mexico City, journalists are not safe,” said Jan-Albert Hootsen, Mexico representative of the Committee to Protect Journalists (CPJ).

U.S. Ambassador to Mexico Ken Salazar condemned the attack.

“Journalist security in Mexico must be guaranteed, which is of paramount importance to fully exercise democracy and freedom of expression,” Salazar wrote on Twitter.

Eleven journalists were killed in 2022 in Mexico, making it the deadliest country for the profession, according to Reporters Without Borders. Other groups have documented even more murders.

Tony Payan, director of the Center for the United States and Mexico at Rice University’s Baker Institute for Public Policy, urged Lopez Obrador to use the “opportunity to acknowledge his own responsibility given his constant attacks on the press and specific journalists.”

(Reporting by Brendan O’Boyle; Additional reporting by Anthony Esposito; Editing by Dave Graham, Alistair Bell and Bill Berkrot)

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Ghana extends domestic debt exchange registration deadline

by Reuters December 16, 2022
By Reuters

By Cooper Inveen

ACCRA (Reuters) -Ghana has extended the registration deadline for a domestic debt exchange programme to Dec. 30, as it considers making some adjustments while it seeks approval for an IMF debt relief programme, the finance ministry said in a statement overnight on Friday.

“The extension… affords Government of Ghana the opportunity to consider suggestions made by all Stakeholders with the aim of adjusting certain measures,” the ministry said in its statement, without detailing which points had been contentious.

The debt exchange programme will now have an expected settlement date of Jan. 6. The ministry had previously set a deadline of Dec. 19 for domestic bondholders to apply for the debt exchange, with new domestic bonds to be issued on Dec. 23.

Ghana, once considered a rising star among emerging market economies, is facing a generational debt crisis. Inflation was above 50% in November, and the government is spending between 70% and 100% of its revenue on interest payments.

On Tuesday, Ghana and the International Monetary Fund announced a staff-level agreement for a $3 billion relief programme, which Reuters first reported late last week.

A debt sustainability analysis concluded earlier this month that Ghana’s debt burden was unsustainable. A comprehensive debt restructuring, including that of foreign debts, is a prerequisite for Executive Board approval, the IMF said on Tuesday.

“This extension will provide enough time for the necessary consultations and analysis to be completed to meet the expectations of local and foreign institutional bondholders while preserving the integrity of the Debt Sustainability Analysis and the Staff Level Agreement,” the finance ministry said in its Friday statement.

Under the domestic debt exchange, local bonds will be exchanged for new ones maturing in 2027, 2029, 2032 and 2037, and their annual coupon will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity.

(Reporting by Cooper Inveen; Editing by Leslie Adler)

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Citi, Revlon lenders reach deal over $500 million accidental payment

by Reuters December 16, 2022
By Reuters

(Reuters) – Citigroup Inc reached an agreement with all 10 Revlon Inc lenders it mistakenly paid about $500 million on a loan, ending litigation of more than two years, a court document showed on Friday.

Citigroup, as Revlon’s loan agent, had accidentally used its own money in August 2020 to prematurely pay off an $894 million loan owed by billionaire Ronald Perelman’s now-bankrupt cosmetics company.

Some of the recipients returned their payouts to Citi after realizing the mistake, which the U.S. bank blamed on human error, but the 10 lenders had refused, saying the bank paid what they were owed.

“About three quarters of the mistaken payments have now been returned to Citibank,” lawyers for both Citigroup and the lenders said in a letter to a federal judge.

Citibank expects to file notices of dismissal in the coming weeks if payments are made as per the agreement, the document said.

Friday’s resolution ends more than two years of litigation by Citigroup against Brigade Capital Management, HPS Investment Partners, Symphony Asset Management and the other lenders, over a blunder that the bank’s chief executive, Jane Fraser, called a “massive, unforced error.”

(Reporting by Ann Maria Shibu and Urvi Dugar in Bengaluru; Editing by Chris Reese and Leslie Adler)

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Goldman to cut thousands of staff as Wall Street layoffs intensify -source

by Reuters December 16, 2022
By Reuters

By Saeed Azhar and Lananh Nguyen

NEW YORK (Reuters) – Goldman Sachs Group Inc is planning to cut thousands of employees to navigate a difficult economic environment, a source familiar with the matter said.

The layoffs are the latest sign that cuts are accelerating across Wall Street as dealmaking dries up. Investment banking revenues have plunged this year amid a slowdown in mergers and share offerings, marking a stark reversal from a blockbuster 2021 when bankers received big pay bumps.

Goldman Sachs had 49,100 employees at the end of the third quarter after adding significant numbers of staff during the pandemic. Its headcount will remain above pre-pandemic levels, the source said. The workforce stood at 38,300 at the end of 2019, according to a filing.

The number of employees that will be affected by the layoffs is still being discussed, and details are expected to be finalized early next year, the source said.

The bank is weighing a sharp cut to the annual bonus pool this year, a separate source familiar with the matter said. That contrasts with increases of 40% to 50% for top-performing investment bankers in 2021, Reuters reported in January, citing people with direct knowledge of the matter.

“GS needs to show that its costs are as variable as its revenues, especially after a year when it provided special rewards to top managers during the boom times,” wrote Mike Mayo, a banking analyst at Wells Fargo.

“Goldman Sachs now needs to show that it can do the same when business is not as good and that they live up to the old Wall St. adage that they ‘eat what they kill,'” he said in a note.

The company’s stock fell 1.3% in afternoon trading alongside shares of JPMorgan & Chase Co and Morgan Stanley, which fell 0.6% and 1.3%, respectively.

Goldman shares have slumped almost 10% this year. But they have outperformed the broader S&P 500 bank index, which is down 24% year to date.

CONSUMER BANK STRUGGLES

The latest plan would include hundreds of employees being cut from Goldman’s consumer business, a source said.

The bank signaled it was scaling back its ambitions for Marcus, the loss-making consumer unit, in October. Goldman also plans to stop originating unsecured consumer loans, a source familiar with the move told Reuters earlier this week, another sign it is stepping back from the business.

Chief Executive Officer David Solomon, who took the helm in 2018, has tried to diversify the company’s operations with Marcus. It was placed under the wealth business in October as part of a management reshuffle that also merged the trading and investment banking units.

Trading and investment banking — the traditional drivers of Goldman’s profit — accounted for nearly 65% of its revenue at the end of the third quarter, compared with 59% in the third quarter of 2018, when Solomon took the top job.

Semafor earlier on Friday reported that Goldman will lay off as many as 4,000 people as the bank struggles to meet profit targets, citing people familiar with the matter.

Goldman Sachs declined to comment.

The latest plans come after Goldman cut about 500 employees in September, after pausing the annual practice for two years during the pandemic, a source familiar with the matter told Reuters at the time.

The investment bank had first warned in July that it might slow hiring and reduce expenses.

Global banks, including Morgan Stanley and Citigroup Inc, have reduced their workforces in recent months as a dealmaking boom on Wall Street fizzled out due to high interest rates, tensions between the United States and China, the war between Russia and Ukraine, and soaring inflation.

(Reporting by Saeed Azhar and Lananh Nguyen; Additional reporting by Noor Zainab Hussain and Mehnaz Yasmin in Bengaluru; Editing by Mark Porter)

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IMF executive board approves $3 billion Egypt extended arrangement

by Reuters December 16, 2022
By Reuters

CAIRO (Reuters) -The International Monetary Fund (IMF) executive board has approved a 46-month $3 billion financial support package for Egypt, saying it will catalyse additional funding of about $14 billion, the fund said in a statement.

The package, Extended Fund Facility (EFF), includes a flexible exchange rate regime and enhanced social safety nets to protect the vulnerable, the statement said.

Egypt’s finances, already suffering from high debt and a lack of foreign currency, deteriorated sharply after the Russian invasion of Ukraine, which prompted foreign investors to pull about $20 billion out of the country within weeks.

Bankers in north Africa’s largest economy say the gap between the Egyptian pound’s black market rate of 32 to 33 per dollar has widened in recent weeks from the official rate of 24.7 despite a 36% overall devaluation this year.

Agreement on the package was announced at the staff level on Oct. 27.

The agreement provides for an immediate disbursement of about $347 million to help support Egypt’s balance of payments and its general budget, it added.

It is expected to catalyse additional financing of about $14 billion, including investments, from Egypt’s international and regional partners, the statement said.

The agreement includes a programme of structural reforms that will “reduce the state footprint and level the playing field between the public and private sector.” It also provides for upfront monetary policy tightening and fiscal consolidation.

(Reporting by Mahmoud Mourad; Writing by Patrick Werr; Editing by Josie Kao)

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Micrometeoroid strike could be cause of Russian spacecraft leak – official

by Reuters December 16, 2022
By Reuters

By Joey Roulette

(Reuters) – A coolant leak lasting for at least three hours Wednesday night aboard a Russian Soyuz space capsule docked to the International Space Station could have been caused by a tiny meteoroid strike, a senior Russian space official said Thursday.

NASA and Russia’s space agency, Roscosmos, said no astronauts were endangered by the leak, which forced mission control officers in Moscow to call off a planned spacewalk by two cosmonauts as fluid sprayed outward into space, as seen on live video during a NASA webcast.

“The cause of the leak in Soyuz MS-22 could be a micrometeoroid hitting the ship’s radiator,” Sergei Krikalev, head of human spaceflight at Roscosmos, said in a statement posted on Telegram.

Tiny micrometeoroids, or space rocks, most of them as small as a grain of sand, are a normal part of the space environment as they zip through the solar system in random directions and typically cause little or no substantive damage to the ISS and other spacecraft protected by advanced shielding.

Russian officials are leading an investigation into the cause of the leaky fluid, which spewed from a radiator cooling loop on the exterior of Russia’s Soyuz MS-22 spacecraft starting around 7:45 p.m. Eastern time on Wednesday (0045 GMT Thursday), NASA said. The liquid coolant is used to regulate temperatures on the capsule.

NASA said MS-22’s temperatures “remain within acceptable limits.” Neither the U.S. space agency nor Roscosmos explained the spacecraft’s temperature range, how close the vessel was to reaching those limits, how much coolant escaped or what time the leakage stopped.

The same Soyuz spacecraft ferried cosmonauts Sergey Prokopyev and Dimitri Petelin along with NASA astronaut Frank Rubio to the space station in September, marking the first joint U.S.-Russian flight under a renewed agreement between NASA and Roscosmos allowing commingled crews on journeys to and from the space station. Prokopyev and Petelin were the two suited up for a six-hour spacewalk when the coolant leak began.

The space station, a football field-sized laboratory housing astronauts on a continuous basis for over two decades, has a current crew of seven. The four other members of the latest expedition arrived in October aboard a SpaceX Crew Dragon capsule. That crew includes two NASA astronauts, a Japanese astronaut and one cosmonaut.

The leak raised immediate questions about whether MS-22 will be able to return its three-man crew to Earth in March 2023 as originally planned, or if NASA and Roscosmos will need to pursue contingency plans.

The spacewalk planned for Wednesday night was postponed once before, in late November, because of faulty cooling pumps in the cosmonauts’ spacesuits. And in August, a Russian spacewalk was cut short by a battery issue with one of the cosmonauts’ spacesuits.

(Reporting by Joey Roulette; Editing by Stephen Coates)

December 16, 2022 0 comments
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US and World News

Family of activist who died in Palestinian custody turn to ICC

by Reuters December 16, 2022
By Reuters

JERUSALEM (Reuters) – The family of an activist who died in the custody of the Palestinian Authority’s security forces called on the International Criminal Court on Thursday to investigate, in what they say is the first communication to the court from Palestinians against their leadership.

Nizar Banat, an outspoken critic of President Mahmoud Abbas’s PA, died in June 2021 after security forces arrested him at a house in the West Bank city of Hebron.

An autopsy conducted by a Palestinian rights groups said Banat was struck in the head and body, leading to his “unnatural death” within an hour of his arrest.

In front of the ICC, the activist’s brother, Ghassan Banat, told Reuters he had come to The Hague to hand over the evidence gathered by his family about the incident.

“The International Criminal Court is our last hope to achieve justice for Nizar Banat,” he said, adding his brother was only demanding an end to financial and political corruption in the Palestinian territories.

The PA, which has limited self-rule in the Israeli-occupied West Bank, did not immediately respond to Reuters requests for comment on the case. It has charged 14 low-ranking officers with various offences in connection with Banat’s death. All have pleaded not guilty.

Amnesty International has called the trial “flawed” and said those who gave the orders to arrest Banat must also be held accountable.

Stoke White Lawyers, the firm that filed the communication with the ICC, said in a tweet that the “grotesque” release of the 14 suspects for a nine-day holiday in June was among factors motivating the family.

The ICC has been investigating possible war crimes and crimes against humanity by the Israeli military or Palestinian groups in the Palestinian territories since March 2021.

Banat’s death heightened criticism of the PA under Abbas, whose popularity has plummeted since he assumed office in 2005, opinion polls show. The incident sparked days of protests in the West Bank that were violently suppressed by Palestinian forces.

(Reporting by Henriette Chacar; Additional reporting by Ismail Khader and Stephanie van den Berg in The Hague; editing by John Stonestreet, Alexandra Hudson)

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US and World News

U.S. Justice Department moves to eliminate cocaine sentencing disparity

by Reuters December 16, 2022
By Reuters

By Gram Slattery

WASHINGTON (Reuters) -U.S. Attorney General Merrick Garland instructed federal prosecutors on Friday to end disparities in the way they charge offenses involving crack cocaine and powder cocaine.

The change, outlined in a pair of internal memos released by the Justice Department on Friday, is a win for criminal justice reform advocates, who point out that the current sentencing regime has led to the disproportionate incarceration of Black Americans since the policy was adopted nearly 40 years ago.

Some lawmakers and congressional aides warned, however, that the memo could complicate ongoing legislative efforts to address the issue.

Mandatory minimum sentences for crack-related offenses are currently 18 times lengthier than those for powder cocaine. The Justice Department has supported eliminating that disparity and a bipartisan group of lawmakers is working on legislation that would significantly reduce it.

In the memos, Garland instructs prosecutors to treat “crack cocaine defendants no differently than for defendants in powder cocaine cases” when they are charging defendants and making sentencing recommendations.

They also instruct prosecutors to reserve charges involving mandatory minimums to situations in which there are certain aggravating factors, such as leadership of an organized crime group.

Advocates welcomed the move, but added that codifying the change into law was key.

“Today’s announcement recognizes this injustice and takes steps to finally strike parity between powder and crack cocaine sentences when there is no pharmacological differences in the substances,” Democratic Senator Cory Booker, a sponsor of legislation regarding cocaine sentencing, said in a statement.

Some lawmakers expressed concern the announcement could trip up a deal to tuck a measure narrowing sentencing disparities between crack and powder cocaine into a year-end spending bill. 

“A bipartisan group of lawmakers, including myself, just recently came to an agreement on statutory changes that could possibly be included in the year-end funding bill,” Grassley said in a statement. “That hard-won compromise has been jeopardized because the attorney general inappropriately took lawmaking into his own hands.”

In 1986, Congress passed a law to establish mandatory minimum sentences for drug trafficking offenses, which treated crack and powder cocaine offenses using a 100-to-1 ratio. Under that formula, a person convicted for selling 5 grams of crack cocaine was treated the same as someone who sold 500 grams of powder cocaine. That proportion was narrowed to 18 to 1 in 2010.

The guidance from Garland goes into effect in 30 days. It does not apply retroactively.

(Reporting by Gram Slattery; Editing by Scott Malone and Aurora Ellis)

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Department of Justice Press Releases

Pennsylvania Inmate Sentenced To 11 Months In Prison For Pandemic Unemployment Fraud

by DOJ Press December 16, 2022
By DOJ Press

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeovanny Shultz, age 28, an inmate at the State Correctional Institution at Mercer, was sentenced by United States District Court Judge Christopher C. Conner to 11 months in prison for conspiring to steal pandemic funds.

According to United States Attorney Gerard M. Karam, Shultz pleaded guilty to conspiring with five others to file false claims for unemployment assistance during the pandemic. These defendants gathered personal identification information from inmates housed within the Pennsylvania Department of Corrections system and filed unemployment claims. The payments were mailed to particular addresses in New Cumberland, Pennsylvania, where the funds were accessed. Shultz arranged for the payment of approximately $11,000 in benefits which he was not entitled to obtain.

Andrew Marszalek, age 24, of New Cumberland, entered a guilty plea to the fraud conspiracy and was sentenced to 18 months in prison.  Nicholas Baggio, age 32, an inmate at the State Correctional Institution at Mahanoy, entered a guilty plea to conspiracy to commit mail fraud and was sentenced to one year and a day in prison.  Alexis Figueroa, age 32, of Philadelphia, entered a guilty plea to the fraud conspiracy and was sentenced to 18 months in prison. Oscar Martinez, age 30, an inmate at State Correctional Institution at Rockview, pleaded guilty and is awaiting sentencing.  Joseph Powles, age 33, of Philadelphia, is wanted as a fugitive.

The case was investigated by the U.S. Postal Inspection Service and the United States Department of Labor Office of Inspector General. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies

across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

All persons charged are presumed to be innocent unless and until found guilty in court.

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Department of Justice Press Releases

New York Attorney And Doctor Convicted Of Defrauding New York City-Area Businesses And Their Insurance Companies Of More Than $31 Million Through Massive Trip-And-Fall Fraud Scheme

by DOJ Press December 16, 2022
By DOJ Press

Damian Williams, the United States Attorney for the Southern District of New York, announced the convictions today in Manhattan federal court of GEORGE CONSTANTINE, a New York lawyer, and ANDREW DOWD, a New York orthopedic surgeon, for their participation in a massive trip-and-fall fraud scheme between 2013 and 2018.  The jury convicted CONSTANTINE and DOWD following a three-week trial before U.S. District Judge Sidney H. Stein.  Co-conspirators Marc Elefant, Sady Ribeiro, Adrian Alexander, Kerry Gordon, and Peter Kalkanis previously pled guilty before Judge Stein for their involvement in the same trip-and-fall fraud scheme.  Co-conspirators Bryan Duncan, Ryan Rainford, and Robert Locust were convicted at trial in May 2019 before Judge Stein for their participation in the same trip-and-fall fraud scheme.  Sentencing of CONSTANTINE and DOWD is scheduled for March 21, 2023. 

U.S. Attorney Damian Williams said: “Today’s unanimous jury verdict holds George Constantine, a lawyer, and Andrew Dowd, a doctor, accountable for their participation in a widespread fraud scheme that preyed upon poor, vulnerable, and at-times homeless individuals.  These individuals were recruited to stage trip-and-fall accidents and undergo medically unnecessary surgeries performed by Dowd that were designed to increase the value of fraudulent personal injury lawsuits filed by Constantine.  Constantine and Dowd abused their professional licenses, degrees, and titles to line their own pockets with millions of dollars, and they now face the prospect of lengthy prison sentences for their crimes.”

According to the allegations contained in the Superseding Indictment and the evidence presented in Court during the trial:

Between 2013 and 2018, CONSTANTINE and DOWD,  among others, engaged in an extensive fraud scheme, in which individuals (the “Patients”) were recruited to stage trip-and-fall accidents and then undergo medically unnecessary surgeries in order to increase the value of the fraudulent personal injury lawsuits that were filed on their behalf against the owners of the accident sites and/or insurance companies of the owners of the accident sites (the “Victims”).  During the course of the fraud scheme, CONSTANTINE and DOWD, together with others known and unknown, attempted to defraud the Victims of more than $31 million.

CONSTANTINE and DOWD relied upon a team of “runners” who were paid cash kickbacks by CONSTANTINE to recruit the Patients to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area.  Common accident sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes” in front of commercial establishments, such as gas stations, diners, and other businesses.  

After their staged accidents, the Patients were directed to go to the hospital to obtain discharge papers and then were brought to CONSTANTINE’s office, by the carloads, where they met with CONSTANTINE briefly, after which CONSTANTINE would uniformly accept their case.  CONSTANTINE failed to ask even the most basic questions during the intake process, including the locations of the purported accidents, and yet, would file fraudulent lawsuits, under penalty of perjury, on behalf of the Patients against the Victims.  During the course of the scheme, CONSTANTINE filed nearly 200 fraudulent lawsuits and earned more than $5 million dollars in settlement fees from these fraudulent cases.

Following the Patients’ meeting with CONSTANTINE, the Patients were driven to various medical appointments, including visits with chiropractors, physical therapists, and to obtain MRIs, all of which was designed to justify the surgical procedures on their knees, shoulders, and backs that Patients were required to have as part of the scheme. 

The Patients were then driven to meet with DOWD, an orthopedic surgeon, who would perform arthroscopic knee and shoulder surgeries on Patients within one to two weeks of first meeting the Patients.  DOWD paid hundreds of thousands of dollars in kickbacks for these Patient referrals.  DOWD performed no physical exams on the Patients and fabricated his medical reports to make it seem like the Patients were injured, when in reality they were not.  To incentivize the Patients to get surgery, the Patients were paid approximately $1,000 after each surgery.  During the course of the scheme, DOWD performed nearly 300 medically unnecessary surgeries and earned more than $3.2 million dollars.  DOWD received approximately $10,000 per surgery. 

The surgeries, as well as the other medical procedures, were funded by litigation funding companies, including a funding company owned by co-conspirator Adrian Alexander, even when the Patient maintained medical coverage through an insurance company or a government-subsidized program.  The funding companies also paid the fraud scheme organizers and participants referral fees, typically $1,000 to $2,500, for each Patient who signed a funding agreement.  In exchange for funding Patients’ medical and legal costs, the funding companies charged the Patients high interest rates.  The interest rates were so high that oftentimes the majority of the proceeds that were awarded in the fraudulent lawsuits were paid to the Funding Companies, CONSTANTINE, and other scheme participants, with the Patients receiving a much smaller percentage of the remaining recovery.

The Patients were overwhelmingly poor – individuals desperate enough to submit to surgeries in exchange for the small payments they would receive after surgery.  It was common for the Patients to ask for food or money when they would appear for their intake meetings with CONSTANTINE.  Patients were recruited from homeless shelters and often suffered from drug and alcohol addiction as well.

*                *                *           

CONSTANTINE, 60, of Plainview, New York, and DOWD, 67, of Miller Place, New York, were found guilty of conspiracy to commit mail and wire fraud, mail fraud, and wire fraud, each of which carries a maximum term of 20 years in prison.  DOWD was also found guilty of additional counts of conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. 

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the New York Field Office of the Federal Bureau of Investigation.  Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Nicholas Folly, Danielle Kudla, Alexandra Rothman, and Nicholas Chiuchiolo are in charge of the prosecution.

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Department of Justice Press Releases

Lynnwood, Washington man sentenced to prison for making multiple threatening phone calls to businesses in four states espousing racial hatred

by DOJ Press December 16, 2022
By DOJ Press

Seattle – A 37-year-old Lynnwood, Washington, man was sentenced today in U.S. District Court in Seattle to two years in prison for making interstate threats and for a hate crime: interference with a Federally Protected Activity, announced U.S. Attorney Nick Brown.  Joey David George has been in federal custody since his arrest on July 22, 2022.  George made threatening telephone calls from his home in Lynnwood, to grocery stores in Buffalo, New York, restaurants in California and Connecticut, and a marijuana dispensary in Maryland.  At the sentencing hearing U.S. District Judge Ricardo S. Martinez said “In today’s day and age, words are the weapons in the arsenal of the bully, the bigot, the racist and the homophobe…These words seep into the psyche of the victims and cause incredible pain that might never go away.”

“While Mr. George suffers from some mental health impairments, his conduct in this case was deliberate and motivated by racial hatred,” said U.S. Attorney Nick Brown. “He wanted people to feel the terror that they would be targeted because of the color of their skin. Mr. George used the tragedy of the Buffalo grocery store shooting to make his threats even more searing. We take these matters very seriously.”

According to records in the case, on July 19, 20, and 21, 2022, George telephoned multiple grocery stores in Buffalo, New York and threatened to shoot Black people in the stores.   George told the staff at the store to “take him seriously” and ordered the store to clear out the customers as he was “nearby” and “preparing to shoot all Black customers.” One store closed.  The threats followed a racially motivated shooting at another Buffalo grocery store in May 2022.   Law enforcement traced the phone number and identified George as the person who made the calls.

In addition to the calls to Buffalo, George admits that in May 2022, he called a restaurant in San Bruno, California.  In that call George allegedly threatened to shoot Black and Hispanic patrons in the restaurant.  He told law enforcement that he made the threat to strike fear in the Bay Area Black community.

On September 11, 2021, George called a cannabis dispensary in Rockville, Maryland, and used racial slurs as he threatened to shoot and kill Black people at the business.  George admitted his racial hate to local law enforcement who used caller ID to trace the call.  The dispensary shut down and hired extra security, causing a loss of over $50,000.  On that same day George also called a Denny’s restaurant in Enfield, Connecticut and threatened Black patrons at the restaurant.

In asking for a sentence at the top of the guidelines range prosecutors noted that the calls had an impact beyond just a day of business disruption. “For about a year, George had been calling other businesses around the country and threatening to kill Blacks and others. His calls caused terror. They caused police to rush to respond to the threats, leaving them unavailable to attend to emergencies and other law enforcement matters. And they disrupted business, and left employees shaken about the prospect of returning to work.”

George has agreed to pay $13,088 in restitution to the impacted businesses.  He will be on three years of supervised release when he finishes his prison sentence.

The case was investigated by the FBI with the assistance of multiple local police departments.  The case is being prosecuted by Assistant United States Attorneys Thomas Woods and Rebecca Cohen in consultation with the Department of Justice Civil Rights Division. 

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Department of Justice Press Releases

Former Chairman of Riviera Beach Housing Authority Pleads Guilty to Extortion for Kickback Payments

by DOJ Press December 16, 2022
By DOJ Press

MIAMI – Delvin Thomas, 44, of West Palm Beach, Fla., has pled guilty to one count of extortion after using his chairman position to receive a kickback from a real-estate transaction. Thomas will be sentenced March 3, 2023, before Judge Kenneth Marra.

Around April 2019, Thomas was the chairman of the Riviera Beach Housing Authority, during which time the authority sought to purchase real-estate located in Riviera Beach for a low-income rental property. Thomas introduced a real estate broker to the person at Riviera Beach Housing Authority responsible for purchasing the property and Riviera Beach Housing Authority entered into a contract with the broker to purchase the property.

The broker was to receive a three percent commission from the property’s purchase. Once the contract to purchase the property was entered, Thomas told the broker that he, Thomas, was to receive 50 percent of the commission for its sale. At closing, the broker’s company was paid a commission of $18,930. In order to hide the unlawful payment of Thomas’ 50 percent share, Thomas contacted a straw party to act as a front for this illicit activity.

The straw party (or front) agreed to deposit two checks issued to the front’s business bank account and then issue checks from said account to Sire Development Group LLC, a company Thomas owned. Two checks in the amounts of $6,400 and $3,065 were issued to the front’s company account. This represented 50 percent of the commission received by the broker. The checks falsely stated in the memo section that the payments were for “company branding” and “marketing services.” The front then issued two checks to Thomas’ company, Sire Development Group LLC, in the amounts of $6,400 and $3,000—falsely stating in the check’s memo section that the payments were for “consulting services.”  

Thomas faces a statutory maximum term of imprisonment of 20 years and a fine of $250,000.  

Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and acting Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

The FBI investigated this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.

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

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Department of Justice Press Releases

District Man Sentenced to Nine Years for Manslaughter

by DOJ Press December 16, 2022
By DOJ Press

Defendant Shot the Victim as the Victim Ran Away

            WASHINGTON – John Philogene, 24, of Washington, DC, was sentenced to nine years in prison, followed by five years of supervised release after pleading guilty to voluntary manslaughter while armed for shooting and killing a man in Southeast Washington following a fight, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD). 

            Philogene pleaded guilty and was sentenced in the Superior Court of the District of Columbia by the Honorable Marisa J. Demeo. 

            According to the government’s evidence, on March 27, 2021, the decedent, Evan Shawntez Wood, and a friend entered an apartment building in the Cascade Park Apartments at 4281 6th Street, Southeast, Washington, DC, and were immediately confronted by the defendant with a gun.  The victim, who friends said had been in the military, lunged at the defendant and they got into a fight that sprawled from the apartment building out into the courtyard.  There, the victim broke free and ran from the courtyard.  As the victim ran away, Philogene stood up, chambered a round in his handgun, and shot the victim in the back of the leg.  Mr. Wood kept running, making it a couple of blocks to a yard alongside a house on Forrester Street, Southeast, Washington, DC, where he sat down and died. 

            Philogene and another subject then warned the victim’s friend not to talk, both at the scene and again the next day by Facetime.  Philogene also went to the building where the victim’s friend usually bought drugs, kicked in an apartment door, and pointed a gun at the people inside while asking where the victim and his friend were.

            Philogene was arrested almost exactly a month later on April 27, 2021.  He has been in custody ever since.

            In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department.  They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocates Latrice Washington-Williams and Jenn Allen.  Finally, they commended the work of Assistant U.S. Attorney Peter V. Roman and Deputy Chief Laura Bach, who investigated and prosecuted the case.

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Department of Justice Press Releases

Former Federal Detention Officer sentenced to prison for illegal firearm possession and obstruction of justice

by DOJ Press December 16, 2022
By DOJ Press

Seattle – An employee at the Federal Bureau of Prisons, Federal Detention Center (FDC) at SeaTac, Washington, was sentenced today in U.S. District Court in Seattle for two federal felonies related to his conduct outside of his employment, announced U.S. Attorney Nick Brown.  Joshua Adam Shuemake, 37, was sentenced to one year and one day in prison for illegal firearm possession, and obstruction of justice.  Shuemake was convicted in September 2022 following a four-day jury trial. At today’s sentencing hearing U.S. District Judge Richard A. Jones said the victim of Shumake’s conduct was the justice system. “It’s not just the illegal possession of a firearm, it’s that you chose to ignore a judge’s order and you encouraged people lie… You can’t have a firearm and can’t come to court and lie,” Judge Jones said.

“Mr. Shuemake made relentless and deliberate efforts to undermine the administration of justice,” said U.S. Attorney Nick Brown. “He lied in King County court, to federal investigators, and to his employer.  Mr. Shuemake encouraged witnesses to lie under oath in federal proceedings.  Such conduct by a federal law enforcement officer is particularly egregious.”

According to records filed in the case and testimony at trial, following a domestic violence incident in April 2021, a King County judge barred Shuemake from possessing dangerous weapons, including firearms, and ordered him to surrender all firearms.  Shuemake signed a statement under oath saying he had no firearms.  However, evidence at trial showed Shuemake working as a restaurant and bar security guard, and despite the court order, he was seen on surveillance video multiple times with a firearm in a holster on his hip. When law enforcement searched the apartment where they observed Shuemake living, they found a handgun in the closet. The gun had Shuemake’s DNA on the grip.  Shuemake tried to claim he lived at a different address, and then pressured friends to lie to investigators about how the gun came to be in the apartment.

At the time of the FBI investigation into Shuemake’s gun possession, the Bureau of Prisons was investigating him for a sexual relationship with a female inmate.  Shumake was also being scrutinized for sharing information about inmates that resulted in assaults on some of those housed at the FDC.

Even after his conviction, Shuemake continued to violate court orders by wearing clothing identifying himself as law enforcement while working private security jobs.  Judge Jones ordered Shuemake to serve 72 hours in King County Jail for violating his bond.

Prosecutors wrote in the sentencing memo Shumake “attempted to exploit the implicit trust within the judicial system that is conferred upon sworn law enforcement officers. And yet, Shuemake not only failed to meet the basic minimum standard of being a law-abiding citizen, but he also fell woefully short of the ethical standards of a federal law enforcement officer by undermining the administration of justice at every turn.”

Shuemake was on unpaid leave from the Bureau of Prisons pending the outcome of this case.  His employment has now been terminated.

The case was investigated by the FBI.

The case was prosecuted by Assistant United States Attorneys Jessica Manca, Cindy Chang, and Ye-Ting Woo.

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Department of Justice Press Releases

Two Tennessee Men Arrested For Planning Attacks On Law Enforcement Personnel And The FBI’s Knoxville Field Office

by DOJ Press December 16, 2022
By DOJ Press

KNOXVILLE, Tenn. — A criminal complaint was unsealed today charging Edward Kelley, 33, of Maryville, TN, and Austin Carter, 26, of Knoxville, TN, with conspiracy, retaliating against a federal official, interstate communication of a threat, and solicitation to commit a crime of violence. Kelley and Austin made their initial appearance in federal court in Knoxville, TN, before U.S. Magistrate Judge Jill E. McCook. Both defendants have been detained. Carter has a detention hearing scheduled for December 21, 2022.

According to court documents, Kelley, who is facing charges in the U.S. District Court for the District of Columbia related to his assault on a law enforcement officer during the breach of the Capitol on January 6, 2021, obtained a list of law enforcement personnel who participated in that criminal investigation. In conversations with a cooperating witness, Kelley and Carter discussed plans to kill the individual law enforcement personnel on the list. Those plans included an attack on the FBI’s Knoxville, Tennessee Field Office.

“Federal law enforcement agents put their lives on the line every day to protect the public,” said United States Attorney Francis M. Hamilton III. “Planning and threatening violence against them is among the most serious of crimes. It is absolutely unacceptable and will be vigorously investigated and prosecuted,” said United States Attorney Francis M. Hamilton III.

“The FBI continually assesses the full spectrum of potential threats that come to our attention and that includes those whose intent is to harm bureau employees. The arrests were a result of an amazing team effort across the division along with our local, state, and federal partners. The partnership with the FBI Counterterrorism Division, the Department of Justice’s Counterterrorism Section, and the U.S. Attorney’s Offices in the Eastern District of Tennessee and the District of Columbia were instrumental in the success of the operation. We remind the public to remain vigilant and report any suspicious activity regardless of the intended target,” said FBI Special Agent in Charge Joseph E. Carrico.

The case is being investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Casey Arrowood and Kyle Wilson of the U.S. Attorney’s Office for the Eastern District of Tennessee, and Trial Attorneys David Smith and Jacob Warren from the Counterterrorism Section of the Justice Department’s National Security Division.

Members of the public are reminded that these are only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.

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Department of Justice Press Releases

Iowa Man Sentenced to 41 Months for Threatening United States District Judge

by DOJ Press December 16, 2022
By DOJ Press

PHOENIX, Ariz. – Ted Earl Severeid, III, 40, of Des Moines, Iowa, was sentenced on December 5, 2022, by United States District Judge Douglas L. Rayes to 41 months in prison, to run consecutively with previously imposed prison terms in other criminal cases. Severeid previously pleaded guilty to Threatening to Assault a United States Judge.

While incarcerated on other charges, Severeid mailed a threatening letter to a United States Judge, wherein he threatened to violently assault the victim. In sentencing Severeid, Judge Rayes noted that Severeid’s communication was “not an empty threat” and that Severeid’s history, combined with his decision to commit new offenses while incarcerated, required the imposition of a consecutive prison sentence in order to protect the public from future crimes.

Upon completion of his sentence, Severeid will be placed on supervised release for three years. During his term of supervision, Severeid will be prohibited from contacting the victim.

The United States Marshals Service conducted the investigation in this case. Assistant U.S. Attorneys Joseph E. Koehler and Christine D. Keller, District of Arizona, Phoenix, handled the prosecution.

 

CASE NUMBER:            CR-21-02308-PHX-DLR
RELEASE NUMBER:    2022-223_Severeid

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

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Department of Justice Press Releases

District Man Sentenced to 10 Years for Aiding and Abetting Murder in Online Robbery Scheme

by DOJ Press December 16, 2022
By DOJ Press

Defendant’s Co-conspirator Shot Victim After They Stole $225

            WASHINGTON – Deandre Houston, 21, of Washington, DC, was sentenced today to 10 years in prison, followed by five years of supervised release, for second-degree murder while armed for aiding and abetting the killing of a man in Southeast Washington as part of an online robbery scheme, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD). 

            Houston pleaded guilty and was sentenced in the Superior Court of the District of Columbia by the Honorable Maribeth Raffinan. 

            According to the government’s evidence, Houston set up accounts on OfferUp, an online marketplace service similar to eBay, which targets local buyers and sellers and allows them to post items for sale and arrange for the sales transaction through the app.  Through the app, Houston offered a non-existent 2012 MacBook Pro for sale.  The decedent, Roderick Joseph Thomas, agreed to meet Houston and buy the laptop from him. 

            On October 11, 2018, Mr. Thomas waited in his car in the 3200 block of 12th St SE, Washington, DC to buy the laptop from Mr. Houston.  Houston and an unknown co-conspirator went to meet Mr. Thomas.  The co-conspirator brought a gun, which Houston knew about and had reason to believe would be used in the robbery.  At the scene, Houston walked around Mr. Thomas’ car and got in the passenger seat while his co-conspirator approached the driver’s side door.  They told Mr. Thomas to give them the cash, presumably intended for the laptop purchase.  Houston stole the $225 from Mr. Thomas and then his co-conspirator told Mr. Thomas to get out of the car so that he could steal that too.  Mr. Thomas got out of the car and fought back, but when he got back into the car, Houston’s co-conspirator shot Mr. Thomas and killed him.  Houston and his co-conspirator then fled the scene with the cash.

            Houston was arrested less than three weeks later, on October 31, 2018.  He has been in custody ever since.

            In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department.  They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Karina Hernandez.  Finally, they commended the work of former Assistant U.S. Attorney Emile Thompson, Assistant U.S. Attorney Peter V. Roman, and Deputy Chief Laura Bach, who investigated and prosecuted the case.

December 16, 2022 0 comments
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