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US and World News

Bentley’s profit gets a lift from niche, personalised cars

by Reuters November 1, 2022
By Reuters

By Nick Carey

LONDON (Reuters) – Luxury British carmaker Bentley said on Wednesday that its operating profit for the first nine months of 2022 more than doubled, as global economic uncertainty failed to dent customer interest for niche models and increased car customisation.

The unit of German carmaker Volkswagen posted an operating profit for the first three quarters of 2022 of 575 million euros ($568 million), more than the 275 million euros in the same period of last year.

Bentley said global sales were up 3% at 11,316 units, while revenue jumped 28% to 2.49 billion euros from 1.95 billion a year earlier.

“While Bentley continues to tackle the challenges it faces in the global market, this latest set of financial figures shows strong results in most regions,” Chief Executive Adrian Hallmark said in a statement.

Bentley said sales were up 18% in Europe in the first nine months of the year, and were up 17% in the Asia Pacific region. Sales in the Americas, Bentley’s biggest region by sales, were up 7%.

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($1 = 1.0128 euros)

(Reporting By Nick Carey; editing by David Evans)

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November 1, 2022 0 comments
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US and World News

Emergency calls reveal growing desperation before South Korea Halloween crush

by Reuters November 1, 2022
By Reuters

By Soo-hyang Choi

SEOUL (Reuters) -Transcripts of the 11 emergency calls made in the hours and minutes before a Halloween party crush killed more than 150 people in Seoul reveal the growing fear of revellers and how they had urged the police to intervene.

The transcripts of emergency calls released by the police showed the first warning of a possible deadly surge was made at 6:34 p.m. on Saturday, roughly four hours before the crush turned deadly.

National Police Commissioner General Yoon Hee-keun on Tuesday acknowledged crowd control at the scene was “inadequate”, noting that police had received multiple reports warning of possible accidents on the night of the disaster.

The interior minister and the city mayor have also apologised. Proper crowd and traffic control by the authorities could have prevented or at least reduced the surge of partygoers, safety experts have said.

The transcripts, released to media, give a chilling prediction of how the tragedy would unfold.

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“Looks like you can get crushed to death with people keep coming up here while there’s no room for people to go down,” a citizen said in that first call. “I barely managed to leave but there are too many people, looks like you should come and control.”

The crush on Saturday night killed 156 people, many in their teens and 20s, and injured another 157 as revellers flooded the narrow alleyways of the popular Itaewon district to mark the first virtually unrestricted Halloween festivities in three years.

Police received 10 other similar calls before the chaos was known to have turned fatal – and released all those transcripts on Tuesday.

The transcripts appear to confirm the accounts of witnesses, who told Reuters they saw some police directing traffic on the main road but few or no officers in the crowded pedestrian alleyways and side streets.

Roughly 100,000 people were estimated to be in Itaewon on Saturday, an area known for its hills and narrow alleys. There were 137 police officers there at the time, the authorities have said.

‘VERY DANGEROUS’

“People are falling down on the streets, looks like there could be an accident, it looks very dangerous,” another caller said at 8:33 p.m, according to the police transcript.

The latest call released by the police came at 10:11 p.m., minutes before people packed into one particularly narrow and sloping alley began to fall over each other shortly before 10:30 p.m.

“(People) will get crushed to death here. It’s chaotic,” the transcript of that call says, noting that screams were heard over the phone.

Police went to the scene for four out of the 11 calls, a police official told reporters. It was not immediately clear why they did not deploy officials on the other calls or what safety measures they took after arriving.

“Those things are all under inspection now, so it’s difficult for me to answer at this point,” a National Police Agency official said when asked by Reuters about responding to four calls.

The official did not elaborate on the contents of the transcripts.

“The police will speedily and rigorously conduct intensive inspections and investigation on all aspects without exception to explain the truth of this accident,” police commissioner Yoon told a news conference earlier.

As police began investigating how so many people were killed, Prime Minister Han Duck-soo said the probe would also cover whether government agencies’ on-site responses were appropriate.

President Yoon Suk-yeol has declared a week of national mourning, and called for better safety measures to manage crowds even when there is no central organising entity.

The festivities in Itaewon did not have a central organiser, which meant government authorities were not required to establish or enforce safety protocols.

The disaster is the country’s deadliest since a 2014 ferry sinking that killed 304 people, mainly high school students.

(Reporting by Soo-hyang Choi;Editing by Alison Williams)

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US and World News

U.S. FAA should bar airlines from reducing leg room -6 Democratic senators

by Reuters November 1, 2022
By Reuters

By David Shepardson

WASHINGTON (Reuters) -Six Democratic U.S senators urged the Federal Aviation Administration on Tuesday to bar airlines from further shrinking the size and leg room of airplane seats.

The senators including Majority Leader Chuck Schumer, Richard Blumenthal, Edward Markey and Ron Wyden, said airlines have been shrinking seat sizes since at least the 1990s — with seat pitch, which determines leg room, decreasing from 32 inches (81 cm) to 28 inches (71 cm), and seat width decreasing from 19 inches (48 cm) to as little as 16 inches (41 cm).

“We urge the FAA to comprehensively review the safety factors impacting seat pitch, width, and length and ensure that such safety factors take into account the entirety of the American public – including children, senior citizens, individuals with disabilities, and others,” the senators wrote to FAA Acting Administrator Billy Nolen.

“We urge the FAA to immediately prohibit any reduction in size, width, or pitch of seats on airplanes, the amount of leg room per seat, and the width of aisles on such planes until a final rule is issued.”

Airlines for America, a group representing United Airlines, Delta Air Lines, American Airlines and others and the International Air Transport Association said in written comments they believe the FAA should not write regulations setting minimum seating dimensions, arguing the agency “has thoroughly studied seat sizes and concluded that current passenger dimensions and configurations are safe.”

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In 2018, Congress said FAA within a year had to issue regulations establishing minimum dimensions for passenger seats – including minimums for seat pitch, width, and length – “that are necessary for the safety of passengers.”

Last month, a U.S. appeals court heard arguments from a flyer advocacy group urging it to order the FAA to set minimum seat dimensions on passenger airplanes. There are no current minimum seat dimensions.

Current rules say airlines must be able to evacuate passengers within 90 seconds but do not set seat size requirements.

In July 2018 the FAA said it would not regulate seat size.

Airlines’ margins could suffer if they had to reconfigure planes and eliminate seats.

The FAA noted Tuesday it had released an aircraft cabin evacuation study in March and opened it for comments in August. The FAA has received nearly 25,000 comments. The comment period expires Tuesday.

(Reporting by David Shepardson; Additional reporting by Diane Bartz; Editing by Chizu Nomiyama, David Gregorio and Chris Reese)

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Department of Justice Press Releases

Coon Rapids Man Pleads Guilty to Threatening a U.S. Senator

by DOJ Press November 1, 2022
By DOJ Press

ST. PAUL, Minn. – A Coon Rapids man has pleaded guilty to making interstate threats against a U.S. Senator, announced U.S. Attorney Andrew M. Luger.

According to court documents, on June 11, 2022, Brendon Michael Daugherty, 35, left two voicemail messages on the field office telephone of a U.S. Senator located outside the state of Minnesota. Both messages contained threats of violence directed at the U.S. Senator. In his first message, Daugherty stated, “You and the Republican Party should be proud that you’re pushing me to become a domestic terrorist. Have a nice [expletive] day; can’t wait to kill ya.” In his second message, Daugherty stated, “I also just wanted to note, thank God the Republican Party is against gun control laws because it would keep guns out of the hands of a person that was disabled and volatile like I am, but you guys are totally against that. So, I may actually get to carry out my nefarious goals.” Field office staff retrieved and recorded the messages and reported them to U.S. Capitol Police.

Daugherty pleaded guilty today in U.S. District Court before Senior Judge Eric C. Tostrud to one count of interstate transmission of a threat to injure the person of another. A sentencing hearing will be scheduled at a later time.  

This case is the result of an investigation conducted by the FBI and the U.S. Capitol Police.

Assistant U.S. Attorney Kimberly A. Svendsen is prosecuting the case.

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Department of Justice Press Releases

St. Paul Felon Pleads Guilty to Illegal Possession of a Firearm

by DOJ Press November 1, 2022
By DOJ Press

ST. PAUL, Minn. – A St. Paul man has pleaded guilty to possessing a firearm as an Armed Career Criminal, announced U.S. Attorney Andrew M. Luger.

According to court documents, on March 17, 2022, Geraldo Jay Dilworth, 34, was in possession of a Springfield Armory .45 caliber pistol while waiting to board a train at the Union Depot Station in St. Paul. Because he has multiple prior felony convictions in Ramsey and Washington Counties, Dilworth is prohibited under federal law from possessing firearms or ammunition at any time.

Dilworth pleaded guilty today before Senior U.S. District Judge Susan Richard Nelson to one count of felon in possession of a firearm as an Armed Career Criminal. He faces a mandatory minimum sentence of 15 years imprisonment. A sentencing hearing will be scheduled at a later time.  

This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.

Assistant U.S. Attorney Lauren O. Roso is prosecuting the case.

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Department of Justice Press Releases

U.S. Attorney’s Office Announces Participation in Justice Department’s Nationwide Election Day Program

by DOJ Press November 1, 2022
By DOJ Press

KNOXVILLE, Tenn. – The United States Attorney’s Office announced today that Assistant United States Attorney (AUSA) Perry H. Piper will lead the efforts of the Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.  AUSA Piper has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Tennessee, and in that capacity is responsible for overseeing the Office’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said United States Attorney Francis M. Hamilton III.  “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence.  The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

 “The franchise is the cornerstone of American democracy, said United States Attorney Hamilton. “We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.” 

In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA Piper will be on duty in this District while the polls are open.  He can be reached by the public at the following telephone numbers: (423) 385-1332 or (423) 504-7318.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at (865) 544-0751.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.

 “Ensuring free and fair elections depends in large part on the assistance of the American electorate, stated United States Attorney Hamilton.  “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

                                                                                            ###

November 1, 2022 0 comments
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Department of Justice Press Releases

Woman Sentenced to 3 Years in Federal Prison for Health Care Fraud Schemes

by DOJ Press November 1, 2022
By DOJ Press

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that NICOLE STEINER, formerly known as Nicole Balkas, 33, formerly of Stratford, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for health care fraud offenses.

According to court documents and statements made in court, Steiner owned and operated Helping Hands Academy, LLC, in Bridgeport, which provided applied behavior analysis services to children diagnosed with Autism Spectrum Disorder (ASD), and was as a participating provider in the Connecticut Medicaid Program (“Medicaid”).  From December 2018 to October 2020, Steiner submitted and caused to be submitted fraudulent claims to Medicaid for applied behavior analysis services that were purportedly provided to Medicaid clients.  She submitted claims for dates of service when no applied behavior analysis services of any kind had been provided to the Medicaid clients identified in the claims, and she inflated the number of hours for certain claims even when applied behavior analysis had been provided to the Medicaid clients identified in the claims.  Steiner also submitted false Medicaid claims in 2020 using a former employee’s name and performing provider number.

After the Connecticut Department of Social Services (DSS), which administers the Medicaid program in Connecticut, terminated Helping Hands Academy as a provider, Steiner made several false statements and submitted an altered document to DSS in an effort to rescind the termination and to receive payment for previously submitted claims.

Medicaid suffered a loss of more than $500,000 as a result of Steiner’s admitted conduct.

On April 28, 2021, Steiner pleaded guilty to one count of health care fraud related to this scheme.

After her guilty plea, and while she was released on bond awaiting sentencing, Steiner was a silent partner in another company that provided applied behavior analysis services to children diagnosed with ASD called New Beginnings Children’s Behavioral Health LLC.  Steiner was responsible for billing claims to Medicaid, managing payroll, and recruiting and screening potential employees, and she and had access to and used her business partner’s email and other online accounts to operate the company.  Steiner and the company engaged in health care fraud by billing Medicaid for thousands of dollars in services not rendered and, in particular, billing for services not rendered by Steiner.

Steiner was arrested on May 2, 2022, and, on July 29, she pleaded guilty to a second count of health care fraud.

While released on bond and living in New Jersey awaiting sentencing in both cases, Steiner submitted false Medicaid applications indicating that she lived in Bridgeport in order to get Medicaid coverage for her and her children.

Steiner was remanded to custody at the conclusion of the sentencing proceeding.

Judge Meyer ordered Steiner to pay $505,955.56 in total restitution.

This investigation was conducted by the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation.  U.S. Attorney Avery acknowledged the valuable cooperation of the Connecticut Department of Social Services in the investigation.

This case was prosecuted by Assistant U.S. Attorney David T. Huang.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.

November 1, 2022 0 comments
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Department of Justice Press Releases

Pharmacy Manager Sentenced to Probation for Obtaining Opiates By Fraud

by DOJ Press November 1, 2022
By DOJ Press

The Office of the United States Attorney for the District of Vermont stated that Brian Thomas Badgley, 37, of Waterbury, Vermont was sentenced today by United States District Judge Christina Reiss to three years of probation after his conviction for obtaining controlled substances by fraud in violation of 21 U.S.C. § 843(a)(3).  

According to court records and proceedings, while employed as a pharmacy manager of the CVS located in Berlin, Vermont, Badgley tampered with a bottle of Hydromorphone oral solution by removing a quantity for his own use, and then diluting the remaining contents of the bottle with liquid Benadryl and distilled water.  Badgley then reattached the tamper seal on the bottle with clear tape and returned the diluted Hydromorphone oral solution to the inventory of the pharmacy, from which it could have been administered to pharmacy patients.  Badgley also obtained Hydromorphone tablets and Hydromorphone solution through misrepresentations and fraud, specifically by entering false entries into the pharmacy ordering system, entering false pill counts into the inventory system, and diluting the oral solution.  

According to court records and the public records of various state boards of pharmacy, Badgley stole hydromorphone tablets in 2015 as an employee of a pharmacy in Texas, and stole hydromorphone tablets in 2016 from a Vermont hospital at which he had been previously employed.  These prior instances resulted in the State of Vermont’s Board of Pharmacy placing strict conditions on his license to practice pharmacy.  Badgley’s license was fully reinstated in 2020, and then suspended on September 24, 2021 when the Board became aware of the new allegations of tampering and obtaining controlled substances by fraud.   

United States Attorney Nikolas P. Kerest commended the investigatory efforts of the U.S. Food & Drug Administration’s Office of Criminal Investigations, the Drug Enforcement Administration, the Vermont Secretary of State’s Office of Professional Regulation, and the Berlin Police Department.

Badgley was represented by Robert Sussman, Esq. Assistant U.S. Attorney Jonathan A. Ophardt represented the United States.

November 1, 2022 0 comments
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Department of Justice Press Releases

New Haven Man Sentenced to Prison for Crack Cocaine Distribution and Ammunition Possession Offenses

by DOJ Press November 1, 2022
By DOJ Press

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that BRIAN WARD, 30, of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 37 months of imprisonment, followed by three years of supervised release, for narcotics distribution and ammunition possession offenses.

According to court documents and statements made in court, on July 21, 2021, law enforcement arrested Ward’s associate, Zaquawn Arrington, on a federal criminal complaint at Arrington’s New Haven residence.  Ward used a bedroom at Arrington’s residence and was present at the time of Arrington’s arrest.  A search of the residence revealed crack cocaine, a digital scale, and $2,075 in cash.  During the search, investigators observed Ward throw a bag from the house.  The bag contained crack cocaine packaged for distribution.  Later that day, investigators conducted a court-authorized search of the residence and located in Ward’s bedroom a pistol box containing four ammunition magazines, and a box of 39 9mm rounds.

Ward was subsequently seen on surveillance video firing a gun at a group of individuals immediately after one of the individuals shot and killed his associate on August 8, 2021, in Hamden.

Ward’s criminal history includes state felony drug and assault offenses.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

Ward has been detained since August 18, 2021.  On December 14, 2021, he pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”), and one count of possession of ammunition by a felon.

Arrington was convicted of possession with intent to distribute cocaine base.

This investigation was conducted by the Federal Bureau of Investigation’s New Haven Safe Streets/Gang Task Force, the New Haven Police Department and the West Haven Police Department.  The Task Force includes members from the Connecticut State Police, Connecticut Department of Correction and the New Haven, Milford, East Haven and West Haven Police Departments.

The case was prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr., through Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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Department of Justice Press Releases

Westbrook Man Fined $4,000 for Baiting Ducks in Violation of the Migratory Bird Treaty Act

by DOJ Press November 1, 2022
By DOJ Press

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Casey, Regional Chief, Division of Refuge Law Enforcement, announced that DAVID FOSTER, 51, of Westbrook, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport for violating the Migratory Bird Treaty Act.  Judge Dooley ordered Foster to pay a $4,000 fine.

According to court documents and statements made in court, in late September and early October 2020, after receiving an anonymous complaint, the Connecticut Environmental Conservation Police (EnCon) and U.S. Fish and Wildlife Service personnel investigated the spreading of whole kernel corn around a hunting blind on Menunketesuck Island in Westbrook.  Foster had received a summons for waterfowl baiting/taking violations in the same area in October 2009.  On October 10, 2020, which was the opening day of duck hunting season, officers who had established surveillance near the duck blind observed Foster, two other hunters shoot and retrieve ducks over the area that had been baited.  When they finished, officers conducted a compliance check.  Under questioning, Foster admitted that he had spread corn over the hunting area to attract ducks.

Foster pleaded guilty on August 2, 2022.

This matter was investigated by the U.S. Fish and Wildlife Service, Division of Refuge Law Enforcement, and the Connecticut Environmental Conservation Police.  This case was prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.

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Department of Justice Press Releases

Two Foreign Nationals Sentenced to Prison for Trafficking Ivory and Rhinoceros Horn from the Democratic Republic of the Congo

by DOJ Press November 1, 2022
By DOJ Press

Seattle – A federal judge sentenced Herdade Lokua, 34, and Jospin Mujangi, 32, of Kinshasa, Democratic Republic of Congo (DRC), to prison for their roles in trafficking wildlife products from DRC to Seattle. Lokua was sentenced to 20 months in prison and Mujangi was sentenced to 14 months in prison. Both men had pleaded guilty to conspiracy and Lacey Act charges on July 13. 

At the sentencing hearing U.S. District Judge John C. Coughenour said, “The message must be conveyed that if you get caught you are going to jail…. This is an ugly trade in the body parts of majestic animals.”

The court determined that Lokua was the organizer of a trafficking operation involving more than five other co-conspirators whose goal was to ship a cargo container full of elephant ivory, white rhinoceros horn and pangolin scales to Seattle. Mujangi helped package the wildlife products and handled the financial details to process the payment through a Chinese bank and then back to DRC.

“Today’s sentence demonstrates that wildlife trafficking leads to prison, and that we are committed to prosecuting this crime,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “I commend our Homeland Security Investigations and DRC partners in stopping this trafficking ring before tons of protected wildlife products entered the illegal market.”

“Wildlife trafficking is decimating many species worldwide and has broader impacts to a country’s economic development and security,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI operations in the Pacific Northwest. “HSI is proud of our international public and private sector partnerships who enabled the success of this investigation and will continue to leverage those partnerships to target and dismantle future trafficking organizations who seek profit over the risk of extinction.”

“The elephant in the room has been addressed today as Mr. Jujangi and Mr. Lokua receive their just rewards for trafficking illegal wildlife products,” said Special Agent Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Conservation efforts on behalf of endangered and protected animals is critical to their continued survival, and IRS-CI is proud to work with our partners both domestically and internationally in order to safeguard these creatures.”

In their prior guilty pleas, both defendants admitted that, beginning in November 2019, they agreed to smuggle the wildlife products at issue to the United States. They worked with a middleman to negotiate the sales and coordinate imports to Seattle. Between August and September 2020, Lokua and Mujangi made several small sales to build trust with the buyers. They sent three packages containing approximately 49 pounds of ivory from Kinshasa. They arranged for the ivory to be cut into smaller pieces and painted black; the packages were then falsely labeled as containing wood.

Lokua and Mujangi acknowledged that in June 2021, they sent nearly five pounds of rhinoceros horn to Seattle using a similar scheme. Lokua discussed sending two tons of ivory and one ton of pangolin scales concealed in a shipping container. He stated that payment would have to be routed through a bank account in China before they could access the cash in Kinshasa.

Lokua and Mujangi admitted that they traveled to Seattle on Nov. 2, 2021, to meet with prospective buyers who were actually undercover federal agents. After negotiating the details for 4,900kg of ivory, 3kg of rhinoceros horn, and 1,500kg of pangolin scales, worth $3.5 million, agents arrested both men in Edmonds, Washington.

The investigation was part of “Operation Kuluna,” an international operation conducted between HSI Seattle, the government of the DRC and the U.S. Embassy in Kinshasa. After the arrests, the task force in DRC acted on information provided by HSI Seattle to seize 2,067 pounds of ivory and 75 pounds of pangolin scales in Kinshasa worth over $1 million, all contraband related to wildlife trafficking.

The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, falsely labeling shipments containing wildlife. The United States, DRC and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is an international treaty that restricts trade in species that may be threatened with extinction. CITES has permit requirements for protected wildlife, and the indictment alleges that the defendants did not obtain any of the necessary papers or declarations from DRC or the United States.

The CITES treaty has listed the white rhinoceros (Ceratotherium simum) as a protected species since 1975 and the African elephant (Loxodanta africana) since 1977. All species of pangolin were added to the CITES appendix with the greatest level of protection in 2017. All three mammals are threatened by poaching and habitat loss.

HSI Seattle conducted the investigation, with assistance from IRS Criminal Investigation. Senior Trial Attorneys Patrick M. Duggan and Ryan C. Connors of the Environmental Crimes Section with assistance from the U.S. Attorney’s Office for the Western District of Washington represented the government.

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Department of Justice Press Releases

American Woman Who Led ISIS Battalion Sentenced to 20 Years

by DOJ Press November 1, 2022
By DOJ Press

ALEXANDRIA, Va. – A U.S. citizen was sentenced to 20 years in prison today in the Eastern District of Virginia for organizing and leading an all-female military battalion in Syria on behalf of the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

According to court documents, Allison Fluke-Ekren, aka “Allison Ekren,” aka “Umm Mohammed al-Amriki,” and aka “Umm Mohammed,” 42, a former resident of Kansas, traveled overseas and, from in or about September 2011 through in or about May 2019, engaged in terrorist acts in multiple countries, including Syria, Libya, and Iraq. Fluke-Ekren ultimately served as the leader and organizer of an ISIS military battalion, known as the Khatiba Nusaybah, where she trained women on the use of automatic firing AK-47 assault rifles, grenades, and suicide belts. Over 100 women and young girls, some as young as 10-years-old, received military training from Fluke-Ekren in Syria on behalf of ISIS.

During the sentencing hearing, the Court incorporated into the record two separate letters submitted by Fluke-Ekren’s adult daughter and adult son, both of whom wrote about being abused by Fluke-Ekren, beginning in Kansas and continuing overseas when they were minors. The government also played audio recordings of January 2021 phone conversations between Fluke-Ekren and her daughter, where she instructed her to delete messages shared between them to ensure Fluke-Ekren could continue to evade capture in Syria, and encouraged her daughter to leave the U.S. and return to Syria. Additionally, Fluke- Ekren’s adult daughter delivered a victim impact statement in court today describing the severe abuse that Fluke-Ekren inflicted upon her in Syria, including coercing her to marry an ISIS fighter, who then raped her, when she was only 13 years old. Fluke-Ekren’s adult son also delivered a statement in court describing attempts by Fluke-Ekren to convince him to leave the U.S. and travel to Syria to prevent him from approaching authorities with any information that could compromise her.

In or around 2008, Fluke-Ekren departed the United States and moved to Egypt with her second husband, a now-deceased former member of the terrorist organization Ansar al-Sharia. Fluke-Ekren resided in Egypt until in or around 2011, at which point she moved to Libya. Near the end of 2011, Fluke-Ekren resided with her second husband, among others, in Benghazi, Libya. In the aftermath of the September 11, 2012 terrorist attack on the U.S. Special Mission and CIA Annex in Benghazi, Fluke-Ekren’s second husband claimed that he removed at least one box of documents and at least one electronic device from the U.S. compound in Benghazi. He brought the items to the residence where he resided with Fluke-Ekren and others at that time. Fluke-Ekren assisted her second husband with reviewing and summarizing the contents of the stolen U.S. government documents. The stolen documents and electronic device, along with the summaries that Fluke-Ekren helped prepare, were provided to the leadership of Ansar al-Sharia in Benghazi.

In or around late 2012, Fluke-Ekren, her second husband, and others traveled from Libya to Turkey. Shortly thereafter, they traveled from Turkey to Syria. After approximately six weeks, Fluke-Ekren returned to Turkey while her second husband remained in Syria. Fluke-Ekren’s second husband ascended through the ranks of ISIS and ultimately became the “emir” (leader) of ISIS snipers in Syria. In or around mid-2014, Fluke-Ekren and others were smuggled back into Syria. While residing in Syria, Fluke-Ekren told a witness about her desire to conduct an attack in the United States. To conduct the attack, Fluke-Ekren explained that she could go to a shopping mall in the United States, park a vehicle full of explosives in the basement or parking garage level of the structure, and detonate the explosives in the vehicle with a cell phone triggering device. Fluke-Ekren also spoke about learning how to make bombs and explosives. Fluke-Ekren further said that she considered any attack that did not kill a large number of individuals to be a waste of resources. Fluke-Ekren would hear about external attacks taking place in countries outside the United States and would comment that she wished the attack had occurred on United States soil instead.

In 2014, ISIS officials sent a female member of ISIS, who traveled from Central America, to Ablah, Syria, where she resided in an adjoining residence to Fluke-Ekren for approximately 18 days. This witness visited Fluke-Ekren at her residence in Syria on multiple occasions. During those visits, Fluke-Ekren discussed ideas for an attack involving the use of explosives on the campus of a U.S.-based college in the Midwest. 

In or around 2015, Fluke-Ekren, her second husband, and others moved from Syria to Mosul, Iraq, where they temporarily resided inside an ISIS-controlled compound within the University of Mosul. When Fluke-Ekren arrived in Mosul, she met with ISIS personnel who were in charge of homes for widowed women whose husbands died while fighting for ISIS. Fluke-Ekren assisted the ISIS personnel by providing ideas for how the homes should function and operate.

In or around mid-2016, Fluke-Ekren led and organized an effort to establish a Women’s Center in Raqqa, Syria. Fluke-Ekren obtained authorization from the “Wali,” the ISIS-appointed mayor of Raqqa, in order to establish the Center. There, Fluke-Ekren and others provided medical services, educational services about the Islamic State, child care, and various training to women and young girls. As the Center’s leader, Fluke-Ekren also provided and assisted other female ISIS members in providing training to numerous women and young girls on the use of automatic firing AK-47 assault rifles, grenades, and explosive suicide belts.

In or around late 2016, the ISIS “Wali” of Raqqa approved the creation of the “Khatiba Nusaybah” – a military battalion to be comprised solely of female ISIS members. The Khatiba Nusaybah began operations on behalf of the terrorist organization in or around February 2017. Fluke-Ekren’s main objective as the leader and organizer of the Khatiba Nusaybah battalion was to teach female ISIS members how to defend themselves against ISIS’s enemies, including helping male fighters defend ISIS-controlled Raqqa. Fluke-Ekren sought to motivate her trainees by explaining how female fighters can ensure the Islamic State is kept alive by “helping ISIS expand and to remain” through the use of weapons, including automatic firing AK-47 assault rifles, grenades, and suicide belts packed with explosives. In addition, witnesses with first-hand knowledge stated that the Khatiba Nusaybah also provided certain members with instruction on physical training ­including martial arts, medical training, VBIED driving courses, ISIS religious classes, and how to pack and prep a “go bag” with rifles and other military supplies.

In 2018, Fluke-Ekren informed another witness that she had instructed an individual in Syria to send a message to one of her family members stating that Fluke-Ekren was dead so that the U.S. government would not attempt to locate her. Fluke-Ekren informed this same witness that it was important to kill the “kuffar” (disbelievers) and die as martyrs on behalf of ISIS in Syria. Fluke-Ekren was located outside the United States since on or about January 8, 2011, until she was transferred in custody to the Eastern District of Virginia on January 28, 2022.    

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; and Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.

First Assistant United States Attorney Raj Parekh and Assistant United States Attorney John Gibbs from the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case, with assistance from the Justice Department’s National Security Division.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-92.

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Department of Justice Press Releases

Recidivist Fraudster Convicted At Trial Of Over $10 Million COVID-19 Loan Fraud Scheme

by DOJ Press November 1, 2022
By DOJ Press

Damian Williams, the United States Attorney for the Southern District of New York, announced that earlier today a federal jury found ADEDAYO ILORI guilty of all six counts of an Indictment for his participation in a fraudulent scheme to obtain more than $10 million in government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic.  The defendant was found guilty following a one-week trial before U.S. District Judge Mary Kay Vyskocil.  The jury further found that ILORI committed these crimes while on pretrial release.  Sentencing is currently scheduled for January 31, 2023, before Judge Vyskocil.

U.S. Attorney Damian Williams said: “Adedayo Ilori used the stolen identities of innocent victims to steal Government money that was set aside to help small businesses stay afloat during the COVID-19 pandemic.  Ilori illegally profited from a national emergency.  Making matters worse, he did so while on pretrial release in another serious criminal case brought by this Office.  Thanks to the hard work of the Department of Justice-Office of Inspector General and the career prosecutors in this Office, a unanimous jury has found Ilori guilty of committing another fraud scheme.”

According to the Superseding Indictment and the evidence presented at trial:

From at least in or about August 2020 through at least in or about October 2021, ILORI and his co-defendant, Chris Recamier, engaged in a rampant COVID-19 loan fraud scheme.  Utilizing false identities, sham tax records, and corporate documents, ILORI and Recamier successfully obtained more than $1 million and attempted to obtain more than $10 million through two loan programs of the U.S. Small Business Administration (“SBA”) designed to provide relief to small businesses during the COVID-19 pandemic, namely the Paycheck Protection Program ( “PPP”) and the Economic Injury Disaster Loan (“EIDL”) Program.  In particular, ILORI and Recamier applied for 14 PPP and EIDL loans.  In applying for these loans, ILORI and Recamier claimed stolen identities of third parties and claimed full control of a number of companies, which they purported, cumulatively, employed more than 200 people and paid monthly salaries of more than $3.2 million in wages.  In reality, they did not operate these companies.  In submitting these applications, ILORI and Recamier, among other things, submitted falsified tax documents which were never actually filed with the Internal Revenue Service.

ILORI and Recamier transferred the majority of these stolen government funds toward cryptocurrency investments, the purchase of stocks, cash withdrawals, and personal expenses, including leasing luxury apartments and a Mercedes.  The investment accounts were also opened by ILORI and Recamier in the stolen identities of third parties.

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the SBA’s PPP.  Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined by the number of employees employed by the business and their average payroll costs.  Businesses applying for a PPP loan must provide documentation to confirm that they have previously paid employees the compensation represented in the loan application.  The CARES Act also expanded the separate EIDL Program, which provides small businesses with low-interest loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing due to COVID-19.  To qualify for an EIDL loan under the CARES Act, the applicant must have suffered “substantial economic injury” from COVID-19.

ILORI committed these offenses while facing charges in a separate case filed in the Southern District of New York involving fraud, identity theft, and money laundering in United States v. Ilori, 20 Cr 378 (LJL).  As part of that case, ILORI was sentenced on March 3, 2022, to 63 months in prison by U.S. District Judge Lewis J. Liman in connection with a commercial loan fraud and bank bribery scheme.

*                *                *

ILORI, 43, of Queens, New York, was convicted of: (1) major fraud against the United States, which carries a maximum sentence of 20 years in prison; (2) conspiracy to commit wire and bank fraud, which carries a maximum sentence of 40 years in prison; (3) wire fraud, which carries a maximum sentence of 40 years in prison; (4) bank fraud, which carries a maximum sentence of 40 years in prison; (5) aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison; and (6) conspiracy to commit money laundering, which carries a maximum sentence of 30 years in prison. 

The maximum potential sentences in this case, which are increased by the jury’s finding that these crimes were committed while ILORI was on pretrial release, are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

ILORI’s co-defendant, Chris Recamier, 59, of New York, New York, previously pled guilty to major fraud against the United States and was sentenced on October 17, 2022, by Judge Vyskocil to nine years in prison.

Mr. Williams praised the investigative work of the DOJ-OIG.  Mr. Williams also thanked the U.S. Secret Service, the Drug Enforcement Administration, the New York City Police Department, the Federal Bureau of Investigation, and the Federal Aviation Administration for their assistance in this investigation.

This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Juliana Murray, David R. Felton, and Daniel G. Nessim are in charge of the prosecution.

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Department of Justice Press Releases

Mexican citizen admits to smuggling a minor and fleeing law enforcement

by DOJ Press November 1, 2022
By DOJ Press

CORPUS CHRISTI, Texas – A 27-year-old Mexican man has pleaded guilty to attempting to smuggle undocumented aliens, announced U.S. Attorney Jennifer B. Lowery.

Luis Alberto Garcia-Quirino admitted to one count of transporting illegal aliens within the United States.

On June 28, law enforcement observed a black Honda Accord traveling North near La Gloria. At that time, the vehicle appeared to be riding low and moving at a slow rate of speed.

Authorities followed the vehicle and pulled up next to it. They saw multiple silhouettes shifting around in the rear passenger area. They further noticed Garcia-Quirino repeatedly turning around to speak to someone in the rear of the vehicle.

A registration check on the Texas license plate revealed the year of the vehicle did not match its description in the system. Law enforcement attempted to conduct a traffic stop. However, the car failed to yield and continued northbound. The vehicle then crossed intersections of two county roads and pulled over at the gate of La Rucia Ranch.

Authorities discovered nine individuals in the car including an unaccompanied minor. They were all found to be illegally present in the country.

As part of his plea, Garcia-Quirino admitted he illegally entered the United States by crossing the river near Camargo, Tamaulipas, Mexico. After he and others were taken to a stash house, Garcia-Quirino then drove the others further into the United States. 

U.S. District Judge Nelva Gonzales Ramos will impose sentencing Feb. 14, 2023. At that time, Garcia-Quirino faces up to five years in federal prison and a possible $250,000 maximum fine.

Garcia-Quirino has been and will remain in custody pending that hearing.

Border Patrol conducted the investigation. Assistant U.S. Attorney J. Parker Gochenour is prosecuting the case.

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Department of Justice Press Releases

Local felon indicted for possession of firearm after shooting in north Laredo

by DOJ Press November 1, 2022
By DOJ Press

LAREDO, Texas – A 32-year-old man residing in Laredo has been charged with possession of a firearm as a convicted felon, announced U.S. Attorney Jennifer B. Lowery.

Today, a federal grand jury returned the one-count indictment against Cesar Javier Estrada. He is expected to appear for his arraignment before U.S. Magistrate Judge Diana Song Quiroga in the near future.

According to the charges, on Oct. 6, law enforcement responded to a call reporting shots fired on the 800 block of Nafta Boulevard. Shortly after, they allegedly received a second call describing a person with a gunshot wound arriving at Doctor’s Hospital.

Authorities arrived at the hospital and determined the patient with the gunshot wound to be Estrada’s nephew, according to the charges. He and Estrada allegedly arrived together in the same vehicle. The charges further allege that Estrada’s car contained two pistols, spent shell casings and had numerous bullet holes in the exterior.

At the scene, law enforcement allegedly discovered two ounces of marijuana, shell casings and bullet fragments that matched the firearms found inside Estrada’s vehicle.

The charges allege Estrada has two prior felony robbery convictions in Webb County and one federal felony conviction for unlawful transportation of an alien in the Southern District of Texas. As such, he is prohibited from possession firearms or ammunition, according to the charges.

If convicted, Estrada faces a up to 15 years in prison and possible $250,000 maximum fine.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Laredo Police Department. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

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Department of Justice Press Releases

U.S. Attorney Jason M. Frierson Appoints District Election Officer

by DOJ Press November 1, 2022
By DOJ Press

LAS VEGAS – United States Attorney Jason M. Frierson announced today that Assistant United States Attorney (AUSA) Daniel Schiess will lead the efforts for the District of Nevada in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Schiess has been appointed to serve as the District Election Officer (DEO) for the District of Nevada, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Frierson. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

“The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Schiess will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (702) 388-6336,” said U.S. Attorney Frierson.

In addition, the FBI will have agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The FBI’s Las Vegas Field Office can be reached by the public at: (702) 385-1281 or at tips.fbi.gov.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.

“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” said U.S. Attorney Frierson. “It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

###

 

 

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Department of Justice Press Releases

Atlanta Man Pleads Guilty in Firearms Trafficking Conspiracy Involving 500+ Firearms Shipped from Georgia to California and Sold on the Black Market

by DOJ Press November 1, 2022
By DOJ Press

SACRAMENTO, Calif. — Malek Williams, 29, of Stone Mountain, Georgia, pleaded guilty today to unlawful dealing in firearms without a license, U.S. Attorney Phillip A. Talbert announced.

On March 24, 2022, Williams was indicted with four other co-conspirators in a firearms trafficking scheme where firearms were acquired in Georgia and shipped to California to sell on the black market. Also charged in the conspiracy are Jerrell Lawson, 32, of Sacramento; Aisha Hoggatt, 30, of Sacramento; Terrence Phillips, 40, of Union City; and James Gordley, 33, of Modesto.

According to court documents, between November 2019 and October 2021, Williams participated in a conspiracy that brought more than 500 firearms from Georgia into California. Lawson would broker firearms transactions in Georgia over the internet, and Williams, a Georgia resident with a license to carry a concealed firearm, would pick up firearms in person and mail the firearms to various locations in California at Lawson’s direction. Some of the firearms went to individuals that are prohibited from possessing firearms due to prior felony convictions. Hoggatt worked with Lawson to coordinate the purchase, mailing, and distribution of the firearms. Phillips and Gordley also distributed the firearms in California.

The investigation began when a firearm used in a shooting in Sacramento was traced to the last known sale by a federally licensed dealer in Georgia. A subsequent sale of the firearm led to Lawson’s organization. Lawson and his co-conspirators used coded language to traffic firearms and moved money using a variety of financial institutions. During the investigation, interdicted packages destined for Lawson and other co-conspirators were found to contain firearms, ammunition, knives, and brass knuckles, among other things.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Sacramento Region/San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force Initiative. Assistant U.S. Attorneys Alexis Klein and Justin Lee are prosecuting the case.

Williams is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 31, 2023. Williams faces a maximum statutory penalty of five years in prison for unlawful dealing in firearms.

Charges are pending against the remaining defendants. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The Sacramento Region/San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force is one of five cross-jurisdictional strike forces launched by the U.S. Department of Justice in July 2021 to disrupt illegal firearms trafficking in key regions across the country.  Each strike force is led by designated United States Attorneys, who collaborate with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction as well as law enforcement partners in areas where illegally trafficked guns originate.  The strike forces use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes, and are an important part of the Department’s Comprehensive Violent Crime Reduction Strategy.

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Department of Justice Press Releases

Brownsville man pleads guilty to transporting people trapped in travel trailer

by DOJ Press November 1, 2022
By DOJ Press

CORPUS CHRISTI, Texas – A 40-year-old Brownsville resident has admitted to transporting illegal aliens within the United States, announced U.S. Attorney Jennifer B. Lowery.

On June 30, Gaston Perez drove a truck hitched with a recreational vehicle (RV) in to the Javier Vega Border Patrol (BP) checkpoint near Sarita. Shortly after, a K-9 alerted law enforcement to the RV. Further inspection revealed individuals trapped in the back of the travel trailer. They were unable to exit on their own due to the slide outs being drawn in and not having power to extend them.

Authorities used jumper cables to restart the RV battery and operate the slide outs. Five people were located in the back of the trailer including two inside a bed. Three additional individuals were discovered in the front of the RV.

Law enforcement used a backscatter machine to scan the travel trailer and found two anomalies inside a wooden entertainment console. They removed a television set and discovered two more individuals sweating profusely.

A total of 10 undocumented individuals were located in the RV. One of them told authorities she felt like she was going to faint as she was getting out of the trailer.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing Feb. 15, 2023. At that time, Perez faces up to five years in prison and a possible $250,000 maximum fine.

Perez was allowed to remain on bond pending that hearing.

BP and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Liesel Roscher and J. Parker Gochenour are prosecuting the case.

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Department of Justice Press Releases

Mexican women plead guilty to smuggling balls of heroin in potato chip bags

by DOJ Press November 1, 2022
By DOJ Press

LAREDO, Texas – Two women residing in Monterrey, Mexico, have admitted to their roles in importing nearly 1000 grams of heroin, announced U.S. Attorney Jennifer B. Lowery.

Maria Luisa Hernandez-Alanis, 41, and Tania Melissa Coutino-Hernandez, 40,  admitted that on Sept. 4, they arrived at the Juarez-Lincoln Bridge Port of Entry in Laredo in a vehicle. They applied for entry into the United States by presenting B1/B2 tourist visas.

At secondary inspection, law enforcement discovered two yellow bags of potato chips inside of Coutino-Hernandez’s purse. The bags appeared to be sealed and unopened. However, the contents felt like a heavy ball. Further inspection revealed the bags contained heroin bundles weighing 983.9 grams.

The investigation revealed the pair were both aware of the drugs and were going to be paid $300 each to cross into the country with them. The co-conspirators planned on returning to Mexico with a large amount of cash.

U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Hernandez-Alanis and Coutino-Hernandez face up to 40 years in prison and a possible $5 million maximum fine.

Both Hernandez-Alanis and Coutino-Hernandez have been in and will remain in custody pending that hearing.

The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.

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Department of Justice Press Releases

Tax preparer sentenced for fraudulently inflating tax returns

by DOJ Press November 1, 2022
By DOJ Press

HOUSTON – A former local tax preparer has been ordered to federal prison following his conviction of fraudulently filing tax returns from 2014 to 2017, announced U.S. Attorney Jennifer B. Lowery.

David Wright pleaded guilty June 3. 

Today, U.S. District Judge David Hittner sentenced him to 36 months in federal prison to be immediately followed by one year of supervised release. Wright was further ordered to pay $178,688 in restitution to the IRS. At the hearing, the court heard additional argument regarding how Wright profiting from several years of fraudulently filing tax returns. In handing down the sentence, the court noted the nature of the offense, the fact that Wright employed others to participate in the fraudulent activity and that these fraudulent filings were done without the knowledge of the taxpayer clients. 

The investigation revealed Wright and his employees prepared and submitted 43 fraudulent tax returns for 16 clients. They consistently used false Schedule C Business Income or Loss deductions to inflate tax refunds for clients.

They included fake expenses such as advertising, vehicle/transportation, legal/professional services, office/business property costs, maintenance, supplies, travel and utilities. This caused hundreds of thousands of dollars of tax loss to the IRS.

Wright was taken into custody and will be transferred to a U.S. Bureau of Prisons facility to be determined in the near future.

IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Zahra Jivani Fenelon prosecuted the case.

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Department of Justice Press Releases

Local man pleads guilty to hiding drugs in arcade game

by DOJ Press November 1, 2022
By DOJ Press

CORPUS CHRISTI, Texas – A 44-year-old Corpus Christi man has admitted to possession with intent to distribute more than 100 grams of heroin, announced U.S. Attorney Jennifer B. Lowery.

On April 1, authorities executed a search warrant at the residence of Jose Adame Jr. There, there found approximately 389.2 grams of black tar heroin, crack cocaine, a digital scale and $4,000 in a kitchen cabinet. They also found several bags of marijuana in a Ms. Pac-Man arcade gaming cabinet.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing Feb. 14, 2023. At that time, Adame faces up to 40 years in federal prison and a possible $5 million maximum fine.

He has been and will remain in custody pending that hearing.

Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and the Corpus Christi Police Department. Assistant U.S. Attorney Patrick Overman is prosecuting the case.

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Department of Justice Press Releases

Monkey smuggler pleads guilty

by DOJ Press November 1, 2022
By DOJ Press

BROWNSVILLE, Texas – A 20-year-old Katy resident has pleaded guilty to illegally smuggling a spider monkey into the United States and fleeing from federal law enforcement, announced U.S. Attorney Jennifer B. Lowery.

Savannah Nicole Valdez pleaded guilty to smuggling wildlife into the United States without first declaring and invoicing it and fleeing an immigration checkpoint.

On March 21, Valdez attempted to enter the United States through the Gateway International Bridge in Brownsville. Law enforcement observed a wooden box with holes inside the vehicle which Valdez said contained beer she had purchased in Mexico.

However, when authorities opened the box, they discovered a live spider monkey and referred Valdez to secondary inspection. Valdez refused to comply with their instructions and instead sped off, running a traffic light and nearly colliding with officers and other vehicles.

Later that day, agents found multiple online postings advertising the sale of the spider monkey in the Katy and Houston areas with Valdez’s phone number listed in the advertisements.

On March 28, Valdez contacted law enforcement and turned herself in. She admitted to knowingly importing the monkey despite not declaring it and intentionally fleeing from law enforcement.

The monkey was ultimately recovered and placed with an animal shelter in the Central Florida area.

U.S. District Judge Rolando Olvera will impose sentencing Jan. 25. At that time, Valdez faces up to 20 years in federal prison and a possible $250,000 maximum fine.

She was permitted to remain on bond pending that hearing.

Homeland Security Investigations, Customs and Border Protection and the Fish and Wildlife Service conducted the investigation with the assistance of the Kingsville Police Department.

Assistant U.S. Attorney Edgardo J. Rodriguez is prosecuting the case.

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Department of Justice Press Releases

Production of Sexually Explicit Photos of Minor Females Leads to Lengthy Prison Sentence for Lafayette Man

by DOJ Press November 1, 2022
By DOJ Press

LAFAYETTE, La. – United States Attorney Brandon B. Brown announced that Jody Osmer, 38, of Lafayette, Louisiana, was sentenced today by United States District Judge David C. Joseph. Osmer received a sentence of 235 months (19 years, 7 months) in prison, followed by a lifetime of supervised release, for production of child [censored]ography.

This investigation began when law enforcement officers with the National Center for Missing and Exploited Children (“NCMEC”) received a cyber tip regarding distribution of child [censored]ography associated with Osmer. On April 13, 2021, law enforcement agents executed a search warrant at his residence in Lafayette and found him to be in possession of child [censored]ography involving prepubescent minors. Osmer later admitted to agents that he had used social media to communicate with minor females in an effort to meet them in person and engage in sexual relations.

Through their investigation, agents learned that between October 2014 and January 2017, two minor females had communicated with Osmer via cell phone applications and had sent sexually explicit images of themselves via cell phone with Osmer at his request. In addition, Osmer admitted that he met one of the minor victims and engaged in sex with her. Osmer pleaded guilty to coercing a minor to engage in sexually explicit conduct and agreed that he did so with the purpose of producing a visual depiction of that conduct.

The case was investigated by the U.S. Department of Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Craig R. Bordelon.

This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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November 1, 2022 0 comments
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US and World News

Airbnb expects holiday-quarter bookings to moderate; shares fall

by Reuters November 1, 2022
By Reuters

By Aishwarya Nair

(Reuters) -Airbnb Inc forecast holiday-quarter revenue that could fall short of market expectations, saying a strong dollar had started to pressure its business and bookings would moderate, sending its shares down 7% after the bell.

The San Francisco-based vacation rental company posted estimate-beating third-quarter profit and revenue.

But growth slowed to 29% in the July-September period, down from 58% in the second quarter and 67% a year earlier when people started traveling with a vengeance as COVID-19 cases fell and people who were working remotely booked longer-term stays.

Airbnb said in a letter to shareholders on Tuesday that it expected a continued, albeit choppy, recovery of cross-border travel as macro conditions persisted.

“This is really kind of a hard year-over-year comp,” Chief Financial Officer David Stephenson told a post-earnings call.

“If you go back and compare back to 2019, we’re seeing stable to increasing demand across the globe.”

The travel industry has seen a big recovery this year on the back of the best summer travel season in three years, but it faces risks from the global surge in inflation.

Airbnb’s shares have slumped more than a third this year, versus a roughly 19% fall in the broader market.

Chief Executive Brian Chesky sought to assuage concerns on the call, saying the company expected “really strong demand” next year, especially from U.S. travelers going to Europe.

Airbnb guided fourth-quarter revenue between $1.80 billion and $1.88 billion, versus analysts’ expectations of $1.85 billion, according to Refinitiv.

The company recorded its highest ever third-quarter bookings, with nearly 100 million nights and experiences booked. Average daily rates climbed 5% year-over-year to $156.

The company, which generates half its revenue from listings outside the United States, said the rates were significantly higher excluding the impact of foreign currency fluctuations.

Major U.S. airlines have pointed to a rise in international trips, especially to Europe, as travelers took advantage of a strengthened dollar. Airbnb said, however, the majority of travelers in North America and Europe had booked domestic stays.

(Reporting by Aishwarya Nair in Bengaluru; Editing by Devika Syamnath, Sayantani Ghosh and Leslie Adler)

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Auditor exodus at embattled China property firms triggers governance concerns

by Reuters November 1, 2022
By Reuters

By Clare Jim

HONG KONG (Reuters) – Auditors of at least 14 Hong Kong-listed Chinese property firms have exited this year, securities filings showed, raising governance concerns about the debt-ridden developers several of whom are yet to publish long-pending financial results.

Embattled developers including Sunac China, Shimao Group and Kaisa Group are among those whose auditors have parted ways in recent months. In many cases, firms outside the Big-Four accounting firms have been roped in as replacements.

The trend, which accelerated earlier this year, has seen auditors, including the world’s top auditing firms PricewaterhouseCoopers (PwC) and Deloitte, resigning from their roles.

It comes as the property sector, which accounts for roughly a quarter of China’s economy, has been beset by multiple headwinds after regulators have clamped down on excessive borrowing since mid-2020.

A string of debt-laden developers defaulted on their offshore bond payments starting late last year, a growing number of homebuyers have halted mortgage payments on stalled projects and pandemic restrictions have continued to undermine demand.

Analysts and the Hong Kong audit watchdog say that the growing list of auditors leaving the developers highlights transparency and governance issues, especially as many of the exits happened just ahead of result announcements.

The audit watchdog in Hong Kong, where most of the major Chinese developers are listed, said in an open letter to members last week that it had growing concerns that the audit quality may be compromised as a result of the changes close to earnings period.

S&P Global Ratings director Edward Chan said many of these developers have already come under distress, and the market is watching what the new auditors can reveal in the upcoming financial statements.

“Investors and creditors would like to know more if there are any hidden debt in the financial reports,” said Chan, adding it could help them to calculate the recovery rate of their holdings.

While the auditors have not given any reason for their exits, the developers have blamed the move on factors including not being able to reach agreements with their respective auditors for completing the audit process.

Deloitte in Hong Kong declined to comment on the reasons for ending their auditing mandates for some Chinese property developers. PwC did not respond to Reuters requests for comment.

OPAQUE PRACTICES

Chan from S&P, which has withdrawn ratings on many Chinese property developers this year citing insufficient information, believes some auditors had pushed back on opaque practices in the property sector such as the use of off-balance-sheet debt.

Shimao announced in late March – a few days before the 2021 financial reporting deadline – that it would appoint Zhonghui Anda CPA Ltd as its auditor, while in July Beijing-based Sunac changed its auditor to BDO Ltd. In both cases PwC had resigned as the auditor.

Both developers cited a failure to reach agreement with PwC on the timetable to complete the audit procedures as the reason for the change, since they could not provide required information to the auditor on time due to COVID-19-induced curbs in China and other market factors.

Shimao and Sunac’s Hong Kong-listed shares have been suspended from trading since April due to the inability to publish their full-year 2021 financial results, and they face delistings if they remain suspended for 18 months.

Hong Kong’s audit watchdog Accounting and Financial Reporting Council (AFRC) said in its letter last week the majority of new appointments at companies with significant operations in mainland China or overseas were of auditors who have “disproportionate” relevant experience and available resources.

“We have concerns as to whether the incoming auditors possessed the necessary competence and adequate capabilities to perform quality audits within limited time frame,” it said.

(Editing by Sumeet Chatterjee and Muralikumar Anantharaman)

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