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US and World News

U.S. Supreme Court conservatives lean against race-conscious student admissions

by Reuters October 31, 2022
By Reuters

By Nate Raymond and Andrew Chung

WASHINGTON (Reuters) -Conservative U.S. Supreme Court justices signaled skepticism on Monday toward the legality of race-conscious admissions policies in cases involving Harvard University and the University of North Carolina that could imperil affirmative action programs often used to boost enrollment of Black and Hispanic students.

The court, which has a 6-3 conservative majority, heard tense arguments lasting nearly five hours in appeals by a group founded by anti-affirmative action activist Edward Blum of lower court rulings upholding policies used by the two prestigious schools to foster student diversity.

The conservative justices voiced doubt about allowing race to be considered at all in admissions decisions by colleges and universities and emphasized that court precedents allowing such policies had cautioned that they should not exist forever. The liberal justices defended a limited consideration of race in admissions as one factor among many to give opportunities to deserving applicants. Rulings are due by the end of June.

“So what is your response to the simple argument that college admissions are a zero-sum game?” conservative Justice Samuel Alito asked a lawyer representing a group of students supporting UNC’s policy. “And if you give a ‘plus’ to a person who falls within the category of under-represented minority, but not to somebody else, you’re disadvantaging the latter student?”

Conservative Justice Clarence Thomas, one of the court’s two Black justices, expressed misgivings about the principle of diversity and its educational benefits.

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“I’ve heard the word ‘diversity’ quite a few times and I don’t have a clue what it means,” Thomas said.

“I don’t put much stock in that because I’ve heard similar arguments in favor of segregation, too,” Thomas added.

Conservative Justice Brett Kavanaugh told the state lawyer defending UNC’s policy that the court’s precedents have held that “these racial classifications are potentially dangerous and must have a logical end point.”

Students for Fair Admissions, Blum’s group, said UNC discriminates against white and Asian American applicants and Harvard discriminates against Asian American applicants. The schools disagree.

Many schools place a premium on achieving a diverse student population not simply to remedy racial inequity and exclusion in American life but to bring a range of perspectives onto campuses.

Harvard and UNC have said they use race as only one factor in a host of individualized evaluations for admission without quotas – permissible under Supreme Court precedents – and that curbing its consideration would cause a significant drop in enrollment of students from under-represented groups.

The cases give the court an opportunity to overturn its prior rulings – including one as recent as 2016 – allowing race-conscious admissions policies. They also give it a chance to embrace an interpretation favored by conservatives of the U.S. Constitution’s 14th Amendment promise of equal protection under the law that would bar governments and other institutions from using race-conscious policies – even those crafted to benefit people who have endured discrimination.

The court is confronting this divisive issue four months after its conservative majority drove major rulings curtailing abortion rights and widening gun rights.

‘AMERICAN PLURALISM’

Liberal Justice Elena Kagan said the plaintiffs are arguing that it does not matter if institutions are racially diverse in an American society that is quite diverse.

“I thought that part of what it meant to be an American and to believe in American pluralism is that actually our institutions are reflective of who we are as a people in all our variety,” Kagan said.

Justice Ketanji Brown Jackson, the first Black woman to serve on the court, said that given schools’ lawful ability to consider dozens of personal factors it might be unconstitutional to disallow the recognition of race among them.

Jackson said that if “a university can take into account and value all of the other background and personal characteristics of other applicants, but they can’t value race, what I’m worried about is that that seems to me to have the potential of causing more of an equal-protection problem than it’s actually solving.”

Conservative Chief Justice John Roberts said if “checking the box with race is taken away,” schools could pursue “race-neutral” alternatives such as letting students write essays that “indicate experiences they have had because of their race.”

The suits were filed separately in 2014. One accused Harvard of violating Title VI of the Civil Rights Act of 1964, which bars discrimination based on race, color or national origin under any program or activity receiving federal funding. The other accused UNC violating the 14th Amendment.

President Joe Biden’s administration backed the schools.

U.S. Solicitor General Elizabeth Prelogar told the justices, “When students of all races and backgrounds come to college and live together and learn together, they become better colleagues, better citizens and better leaders.”

Prelogar emphasized the importance of diversity at the nation’s military academies with an eye toward ensuring a racially diverse future officer corps.

The court in 2016 upheld a University of Texas race-conscious admissions policy, but has shifted rightward since then. It first upheld affirmative action in college admissions in 1978, ruling that actions to achieve diversity were permissible but racial quotas were not. It decided in 2003 that colleges could consider race as one admissions factor because of the compelling interest of creating a diverse student body.

(Reporting by Andrew Chung in Washington and Nate Raymond in Boston; Editing by Will Dunham)

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US and World News

Elon Musk’s SpaceX expects first Starship launch to orbit this year -NASA

by Reuters October 31, 2022
By Reuters

By Joey Roulette

WASHINGTON (Reuters) -SpaceX is targeting early December to launch its giant Starship rocket system into orbit for the first time, a pivotal demonstration flight as it aims to fly NASA astronauts to the moon in the next few years, a U.S. official said on Monday.

Billionaire Elon Musk’s SpaceX has sought for years to send its towering next-generation rocket system into orbit from the company’s private launch facilities in Texas, where it has only launched prototypes of Starship’s upper half some 6 miles (10 km) high to demonstrate landing attempts.

The December mission will test the entire system for the first time, involving the company’s 230-foot (70-meter) Super Heavy booster to lift the 160-foot (50-meter) Starship spacecraft into orbit.

“We track four major Starship flights. The first one here is coming up in December, part of early December,” Mark Kirasich, a senior NASA official overseeing development of the agency’s Artemis moon program, said during a live-streamed NASA Advisory Council meeting.

The Super Heavy booster would return to land, while the orbital Starship spacecraft would re-enter Earth’s atmosphere roughly 90 minutes later to splashdown dozens of miles off a Hawaiian coast, according to regulatory documents SpaceX filed last year.

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Further ground tests with the rocket and regulatory reviews could delay the debut orbital mission beyond December. The U.S. Federal Aviation Administration, which oversees commercial launch site safety, has not yet granted a license for the mission to SpaceX, part of Musk’s growing universe of companies that also includes Tesla and Twitter.

The FAA would determine whether to grant SpaceX a license “only after SpaceX provides all outstanding information and the agency can fully analyze it”, an FAA spokesman said Monday. SpaceX did not return a request for comment.

Starship is poised to be SpaceX’s flagship rocket system once fully developed, succeeding the company’s fleet of reusable Falcon 9 rockets as a more powerful and fully reusable ride to space for large batches of commercial satellites, space tourists and professional astronauts.

NASA in 2021 picked SpaceX’s Starship to land humans on the moon around 2025, for the first time since 1972. That mission, under a roughly $3 billion contract, requires several spaceflight tests in advance that could delay the 2025 moon landing mission.

Read more:

Wall Street asks if Musk can manage Twitter, Tesla and more

SpaceX capsule splashes down, returning 4 astronauts from Space Station

(Reporting by Joey Roulette; Editing by Franklin Paul, Lisa Shumaker and Alex Richardson)

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US and World News

Oath Keeper saw Jan. 6 storming of U.S. Capitol as ‘Bastille’ moment

by Reuters October 31, 2022
By Reuters

By Sarah N. Lynch

WASHINGTON (Reuters) – A member of the far-right Oath Keepers group who took part in the attack on the U.S. Capitol in January 2021 compared it to the 1789 storming of the Bastille prison in the French Revolution on Monday, and said he hoped to “disrupt Congress” from certifying President Joe Biden’s 2020 election victory.

In at times emotional testimony, Graydon Young of Englewood, Florida, told a jury that he joined the Oath Keepers in late 2020, driven by fears that Congress would certify the election that President Donald Trump’s allies falsely claimed was stolen through widespread voter fraud.

On Jan. 6, 2021, Young said he entered the U.S. Capitol with a group of fellow Oath Keepers with the aim of trying to disrupt proceedings to certify Biden’s win.

“I felt it was like a Bastille time in history,” he said, comparing the attack to the raid on the royal fortress in Paris to free opponents of the tyrannical Bourbon monarchy that helped to trigger the French Revolution.

Young’s testimony was the latest evidence presented by federal prosecutors in the criminal trial against Oath Keepers founder Stewart Rhodes and his four co-defendants – Jessica Watkins, Thomas Caldwell, Kenneth Harrelson and Kelly Meggs.

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The five are charged with multiple felonies, including seditious conspiracy, a rarely prosecuted crime under a statute dating to the Civil War era defined as attempting “to overthrow, put down or to destroy by force the government of the United States.”

On Jan. 6, some of the group’s members were among the thousands of pro-Trump supporters who surged into the Capitol, battling police and sending members of Congress and then Vice President Mike Pence scrambling for safety.

Prosecutors say the group planned and formed a “quick reaction force” of armed members who waited at a hotel in northern Virginia with a stash of firearms they could ferry across the Potomac River into the capital if called upon.

Lawyers for the defendants have argued they traveled to Washington on Jan. 6 to provide security for speakers at political rallies and had no plan to storm the Capitol by force.

Young is the second Oath Keeper member so far to testify for the government after pleading guilty, in the hopes of winning a reduced prison sentence. In June 2021, Young pleaded guilty to conspiracy and obstruction of justice charges.

He cried briefly on the stand as he discussed his plea on Monday, saying he hoped the U.S. government would recognize how sorry he is when he is later sentenced for his crimes.

Defense lawyers, however, sought to poke holes in his testimony.

“Forgive me, but in listening to you … I haven’t heard you articulate an actual agreement with anybody to commit a crime,” Rhodes’ attorney, James Lee Bright, said.

“I didn’t explicitly say let’s go commit a crime, but I thought it was implicit,” Young replied.

“It was spontaneous?” Bright asked him again later during cross-examination.

“It was,” Young replied.

(Reporting by Sarah N. Lynch; Editing by Ross Colvin and Howard Goller)

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US and World News

Brazilian assets rally in volatile session after Lula elected president

by Reuters October 31, 2022
By Reuters

By Tatiana Bautzer, Paula Laier and Rodrigo Campos

SAO PAULO/NEW YORK (Reuters) -Brazil’s currency and main stock index rallied in a volatile session on Monday, a day after leftist Luiz Inacio Lula da Silva won the country’s presidential election, with investors bracing for a choppy week ahead.

The Brazilian real gained more than 2% against the dollar after having fallen 2% overnight. The Bovespa stock index sank 2% at the opening and ended the session up 1.3%. MSCI’s index of Brazilian stocks gained 4%.

Traders said growing hopes of an orderly transition gave support to markets. While defeated incumbent Jair Bolsonaro had not made public remarks, some of his key allies have recognized publicly that Lula has won the race, easing concerns of contested election results.

“There will be no transition problem, even if Bolsonaro reacts badly, most of his allies have already recognized Lula’s victory,” said Ricardo Campos, director at Reach Capital.

However, road blocks in at least 12 Brazilian states by truckers who support Bolsonaro could affect agricultural exports in one of the world’s top food producers, according to the head of a key state farm lobby.

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INCOMING POLICIES

Lula’s Workers Party (PT) has a history of implementing policies that support low-income homebuilders, higher education and consumer spending. Lula, a former trade unionist, served two terms as Brazil’s president from 2003 to 2010.

But fears of more interventionist policies and no support for privatization weighed on shares of state-controlled companies such as oil giant Petrobras, which fell more than 8%.

Xavier Hovasse, head of emerging equities at Carmignac, said he prefers to stay away from state-owned companies due to expected higher intervention by the government.

The Bovespa index was bolstered in part by shares of private banks, industrial companies and consumer airlines. Banco do Brasil, which is partly owned by the state, bucked the trend in financials, falling 4.5% on concerns it could be used by the incoming administration to finance projects below market rates.

Analysts at Goldman Sachs said expectations for continued income support and a potential consumer debt restructuring program among Lula’s policy proposals could be viewed as supportive for domestic consumption, a pillar of growth in Latin America’s largest economy.

Investor appetite to profit from interest rate differentials, as well as a relatively cheap stock market, are supportive of further gains in the real, the best-performing currency against the dollar this year, according to Patrick Esteruelas, head of global research at Emso Asset Management.

With equity investors concerned about economic growth in China, and Russia effectively closed to foreigners, “the Brazilian equity market is in pole position to absorb that marginal dollar just because of the sheer lack of alternatives in terms of a sizable EM (equities) market,” he said.

The premium demanded by investors to hold Brazil’s hard-currency bonds over safe-haven U.S. Treasuries tightened to 265 basis points on Monday from 272 bps on Friday, data from JPMorgan showed.

FOCUS ON LULA CABINET

Investors are closely watching for any indication of Lula’s incoming cabinet and clues on the direction of spending.

“How do they plan to fund the social spending? Are we going to see some tax reforms, or where is the windfall going to come from to be able to keep the fiscal deficit in check?” said Alejandro Arevalo, head of emerging markets debt at Jupiter Asset Management in London.

Lula had been cagey about potential cabinet choices while campaigning, but several trusted allies from the PT are expected to take key posts in the new government on Jan. 1.

“The most important focus for the market will be on Lula’s nominations to Minister of Finance and Budget Planning,” Citi analysts said in a report.

Their report said the most likely outcome would be the appointment of a well-known PT politician such as Alexandre Padilha backed by a respected economic team that would be announced closer to Lula’s inauguration.

Francisco Levy, chief strategist at Empiricus Investimentos, said a favorable international reaction to Lula may help markets in the short term. Lula was quickly congratulated by the White House and European governments.

(Reporting by Tatiana Bautzer and Paula Laier in Sao Paulo and Rodrigo Campos in New York; Additional reporting by Karin Strohecker, Gabriel Araujo, Jamie McGeever and Susan MathewEditing by Paul Simao and Matthew Lewis)

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US and World News

Iran letter urges states to skip U.S. meeting on protests at U.N.

by Reuters October 31, 2022
By Reuters

By Michelle Nichols

UNITED NATIONS (Reuters) – Iran on Monday urged countries not to attend a U.S.-organized meeting at the United Nations on protests in Iran sparked by the death of a young woman in police custody, according to a letter seen by Reuters that accused Washington of politicizing human rights.

The United States and Albania will hold an informal Security Council meeting on Wednesday, that can be attended by all U.N. members. Iranian Nobel Peace Prize laureate Shirin Ebadi and Iranian-born actress and activist Nazanin Boniadi will brief.

“The U.S. has no true and genuine concern about the human rights situation in Iran or elsewhere,” Iran’s U.N. Ambassador Amir Saeid Iravani wrote in the letter to U.N. member states.

He described the protests as an internal issue and wrote that it would be “counterproductive to the promotion of human rights” if the U.N. Security Council discussed the issue.

“The United States lacks the political, moral, and legal qualifications to hold such a meeting, distorting the very basic principles of human rights,” Iravani wrote.

Iran has been gripped by protests since the death of 22-year-old Kurdish woman Mahsa Amini in police custody last month. The unrest has turned into a popular revolt by Iranians from all layers of society, posing one of the boldest challenges to the clerical leadership since the 1979 revolution.

Iran has blamed its foreign enemies and their agents for the unrest.

The meeting at the United Nations on Wednesday aims to “highlight the ongoing repression of women and girls and members of religious and ethnic minority groups in Iran” and identify ways to promote credible, independent investigations into rights abuses in Iran, the U.S. mission to the United Nations said.

Iravani questioned U.S. commitment to defending Iranian women and called on U.N. member states to “explicitly object to such reckless and dangerous practices through which the US attempt to create such a dangerous precedent and politicize human rights issues in order to achieve its political agenda.”

(Reporting by Michelle Nichols; Editing by David Gregorio)

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US and World News

U.S. Treasury to issue $550 billion in debt in Q4

by Reuters October 31, 2022
By Reuters

By Alden Bentley

NEW YORK (Reuters) – The U.S. Treasury said on Monday it expects to issue $550 billion in debt in the fourth quarter, up $150 billion from an August estimate, primarily due to changes to projections of fiscal activity, weaker prices on marketable securities and lower non-marketable financing.

The fourth-quarter estimate assumes an end-of-December cash balance of $700 billion.

It expects to borrow $578 billion in privately held net marketable debt from January to March 2023, assuming an end-of-December cash balance of $500 billion.

It said it issued $457 billion in net debt in the third quarter this year, ending the three-month period with a cash balance of $636 billion.

(Reporting by Alden Bentley, Editing by Rosalba O’Brien)

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US and World News

Armenia and Azerbaijan agree not to use force, stick to peace deals – RIA

by Reuters October 31, 2022
By Reuters

(Reuters) – The leaders of Armenia and Azerbaijan agreed on Monday not to use force and stick to earlier agreements that sought to end fighting between the two ex-Soviet neighbours, RIA news agency said.

Russian President Vladimir Putin also took part in the meeting between Azerbaijani President Ilham Aliyev and Armenian Prime Minister Nikol Pashinyan, which was held in the Black Sea port of Sochi.

The worst fighting between the two countries since a 2020 war erupted last month, killing more than 200 people. The clashes took place despite agreements in both 2020 and 2021 to find a peaceful solution.

“We agreed to refrain from the use of force or threatening force, to discuss and resolve all problematic questions solely on the basis of mutual recognition of sovereignty, territorial integrity and the inviolability of borders,” RIA cited a statement as saying.

The clashes are linked to decades-old hostilities over control of the Nagorno-Karabakh region, internationally recognised as part of Azerbaijan, but until 2020 largely controlled by the majority ethnic Armenian population.

Earlier this month the two sides agreed a civilian European Union mission should head to the border to assess the situation.

Moscow, which has a defence pact with Armenia and a military base there, deployed thousands of peacekeepers to the region after a ceasefire in 2020.

(Reporting by David Ljunggren; Editing by Sandra Maler)

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Breaking NewsD.C. NewsPolice Blotter

56-Year-Old Man Shot And Killed in D.C.

by Kristen Harrison-Oneal October 31, 2022
By Kristen Harrison-Oneal

WASHINGTON, D.C. – 56-year-old Michael Andre Evans of Maryland was shot and killed yesterday afternoon in Southeast, D.C.

At about 1 pm, the Washington D.C Metro Police detectives arrived at the 3800 Block of 9th Street after a call came in that there were sounds of gunshots.

When police arrived, they discovered Evans with a single gunshot wound. He was pronounced at the scene. The victim was then transported to the Office of the Chief Medical Examiner.

If you have any information about this case, please the police at 202-727-9099 or TEXT TIP LINE by sending a text message to 50411.

October 31, 2022 0 comments
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Mexico’s FEMSA plans push for European kiosks, B2B fintech

by Reuters October 31, 2022
By Reuters

By Kylie Madry

MEXICO CITY (Reuters) – Mexican bottler and retailer FEMSA is banking on an expansion of Swiss kiosk operator Valora in upcoming quarters as well as a business-to-business service through its financial technology arm, executives said Monday.

FEMSA entered the European market earlier this month when it bought Swiss kiosk operator Valora, which it plans to expand with new stores and affiliating independent stores in Germany, Chief Corporate Officer Francisco Camacho told analysts.

“We do not expect this to be altogether a major strain on the FEMSA funding structure,” Camacho said, adding that if necessary FEMSA would fund the expansion from the firm’s other operations.

FEMSA is not planning to expand to other geographies for the time being, Camacho said.

Executives said FEMSA would also push a business-to-business service through its financial technology arm, though they did not say how much they would invest into it, nor whether it would operate under the same name as its consumer fintech service, Spin by Oxxo.

FEMSA “will have news on that very soon,” Camacho said.

Spin, run by the Oxxo convenience store chain ubiquitous throughout Mexico, was granted a “fintech license” by regulators earlier this month, and has quickly gained a foothold in a country where many people do not have bank accounts.

The service is set to reach 10 million users by 2023, Spin executive Asensio Carrion told Reuters.

FEMSA ruled out seeking a banking license for the service for the time being, though Carrion said it was seeking permits to allow larger deposits and direct deposit payments from employers.

With the fintech license, FEMSA “can learn a lot about the use cases” for Spin and whether the service will be worthwhile for the company, Camacho said, adding the company could decide to request a banking license at a later date.

(Reporting by Kylie Madry, Editing by Isabel Woodford and Tomasz Janowski)

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Department of Justice Press Releases

ADA Settlement with Cinemark USA, Inc. Improves Accessibility of Enfield Movie Theaters

by DOJ Press October 31, 2022
By DOJ Press

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that Cinemark USA, Inc. (“Cinemark”) has entered into a settlement agreement with the government to resolve allegations that the Cinemark Enfield Square 12 theaters, located at 90 Elm Street in Enfield, does not comply with the Americans with Disabilities Act (“ADA”).

The settlement, which resolves a complaint filed with the U.S. Department of Justice that alleges that the Cinemark Enfield Square 12 is not physically accessible to persons with mobility disabilities, requires Cinemark to add ADA-compliant signage at exits and auditoriums, provide an accessible dining surface in the concession area, and acquire more receivers to use with its assistive listening system.  The settlement also requires Cinemark to make numerous changes in the bathrooms, such as moving grab bars, removing a step up at a threshold, and making a bathroom door easier to open.

Cinemark is in the process of making changes required by the settlement agreement and has agreed to ensure that any future alterations to the theaters comply with the ADA.

Under federal law, private entities that own or operate places of “public accommodation,” including movie theaters, are prohibited from discriminating on the basis of disability.  The ADA authorizes the Justice Department to investigate complaints and undertake periodic reviews of compliance of covered entities.  The Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.

“Today’s settlement helps to ensure that everyone in Connecticut can participate equally in our community, regardless of ability,” said U.S. Attorney Avery.  “My office is committed to enforcing federal law to eradicate barriers to access, inclusion and equal opportunity.  I am pleased that Cinemark has agreed to do the right thing and make their theater in Enfield accessible to persons with disabilities.”

Cinemark has three years to make the changes required by the agreement and must submit certifications concerning compliance to the U.S. Attorney’s Office every six months until it has fully complied with the agreement.

A copy of the settlement agreement will be found on www.ada.gov.

This matter was handled by Assistant U.S. Attorney Stewart C. Dearing.

Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.

Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY).  More information about the Department of Justice Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

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Department of Justice Press Releases

Latham Company Pays $75,000 for Selling Counterfeit Batteries to Department of Defense

by DOJ Press October 31, 2022
By DOJ Press

ALBANY, NEW YORK – Industrial Equipment and Supply Company, LLC (IESC) and its principals, Mark Nystoriak and Sandra Nystoriak, of Latham, New York have agreed to pay $75,000 to resolve allegations that they violated the False Claims Act for selling counterfeit batteries to the federal government on a contract valued at $33,928.60. 

The announcement was made by United States Attorney Carla B. Freedman; Scott Moreland, Special Agent in Charge, U.S. Army Criminal Investigation Division’s Major Procurement Fraud Field Office; Peter J. Tolentino, Special Agent in Charge, Naval Criminal Investigative Service, Economic Crimes Field Office; and William W. Richards, Special Agent in Charge, Air Force Office of Special Investigations, Office of Procurement Fraud, Detachment 6. 

“Our military received counterfeit batteries after a contractor cut corners to increase profits,” said United States Attorney Freedman.  “We will continue to use the False Claims Act to hold government contractors accountable when they do not meet contract requirements.” 

The Defense Logistics Agency (DLA) is the Department of Defense’s (DoD) combat logistics support agency and manages DoD’s supply chain, delivering consumable supplies to DoD components all over the world.  IESC contracted to sell batteries to DLA for a total contract amount of $33,928.60.  The contract required that the batteries be manufactured by SAFT America, Inc. and fit a standard military specification.   IESC represented that it would comply with the Buy American Act (BAA) and supply domestically manufactured batteries. IESC procured the batteries from a supplier in Singapore and failed to verify that the Singapore distributor was an authorized SAFT America distributor.  DLA distributed the batteries throughout its supply system, and later received reports that the batteries caused military equipment failures.  DLA subsequently determined the batteries were counterfeit. 

This settlement resolves the United States’ allegations that IESC violated the False Claims Act by recklessly disregarding a substantial risk that the batteries would be counterfeit when it procured batteries from an unauthorized distributor in Singapore, who offered a lower purchase price than an authorized SAFT distributor would have. 

This settlement was the result of a joint investigation by the U.S. Army Criminal Investigative Division, Syracuse Fraud Branch Office; the Naval Criminal Investigative Service, Economic Crimes Field Office; and the Air Force Office of Special Investigations, Procurement Fraud Detachment 6 Rome, New York. 

Assistant U.S. Attorney Christopher R. Moran represented the United States in this matter. 

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Department of Justice Press Releases

Montenegrin National Charged in Brooklyn Federal Court with Maritime Narcotrafficking of Over 20 Tons of Cocaine

by DOJ Press October 31, 2022
By DOJ Press

Seizure of Cocaine from the MSC Gayane at the Port of Philadelphia Was One of the Largest in U.S. History

An indictment was unsealed today in federal court in Brooklyn charging Goran Gogic with one count of conspiracy to violate the Maritime Drug Law Enforcement Act and three counts of violating the Maritime Drug Law Enforcement Act.  Gogic, a citizen of Montenegro, and a former heavyweight boxer, was arrested last night as he attempted to board an international flight from Miami International Airport.  Gogic is expected to appear this afternoon in federal court in Miami and will be arraigned in the Eastern District of New York at a later date.  

Breon Peace, United States Attorney for the Eastern District of New York; Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA); Wayne A. Jacobs, Special Agent-in-Charge, Federal Bureau of Investigation, Washington, D.C. Field Office (FBI); Keechant L. Sewell, Commissioner, New York City Police Department (NYPD); and Steven A. Nigrelli, First Deputy Superintendent, New York State Police (NYSP), announced the arrest and charges.

“The arrest and indictment of Gogic, a former boxer allegedly responsible for trafficking a staggering amount of cocaine, more than 20 tons, which he attempted to move through U.S. ports, is a resounding victory for law enforcement,” stated United States Attorney Peace.  “The meticulous planning by the defendant and his co-conspirators failed to take into account the federal agents whose hard work resulted in this body blow to the organization and individuals responsible for distributing massive quantities of cocaine.”

Mr. Peace also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania for its assistance in the investigation. 

“Gogic, as alleged, is a major drug trafficker who, along with his criminal associates, is responsible for overseeing long-range narcotics transportation on container ships as well as the wholesale distribution of cocaine throughout Europe.  Today’s arrest sends a message to narcotraffickers worldwide that they are not free to hijack international maritime commerce with impunity,” stated HSI Special Agent-in-Charge Arvelo.  “HSI, along with our partners, will continue to leverage our unique investigative authorities to aggressively pursue drug traffickers who seek to exploit legitimate industries.”

“A billion dollars’ worth of cocaine seized was a heavy hit for Gogic’s criminal network, but nothing heavier than his arrest last night,” said DEA Special Agent-in-Charge Tarentino.  “As evident in this case, criminal organizations will go to various extremes to make a profit off the sale of poison. Due to the hard work by local, state and federal law enforcement, 20 tons of poison was intercepted en route from Colombia to Europe. Gogic’s arrest underscores law enforcement’s commitment to bringing to justice those responsible for causing the most harm to our communities.”

“Gogic allegedly conspired with drug suppliers, ships’ crewmembers, and port workers to traffic massive quantities of cocaine through the U.S. to Europe via commercial cargo ships,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal/Cyber Division. “His arrest demonstrates the FBI’s and our partners’ global reach and resolve to bring narcotraffickers to justice for violating U.S. laws and exploiting maritime commerce.”

“When building a case against a sophisticated drug trafficker like Goran Gogic, operating on a mammoth scale, it is critical that federal, state, and local law enforcement work in close coordination, sharing resources and information,” stated NYPD Commissioner Sewell. “This arrest and massive seizure demonstrate the effectiveness of HSI New York’s El Dorado Task Force, of which the NYPD has long been a proud partner.”

New York State Police Acting Superintendent Nigrelli said, “This arrest and indictment speaks volumes of the tremendous coordination between law enforcement partners to stop individuals such as Mr. Gogic, from using our waterways to distribute illegal drugs throughout the world. May this arrest send a clear message that we will find and punish the people who are responsible for carrying out such acts. The New York State Police will continue to work with our partners to stop the flow of dangerous drugs in our country and the world.”

As alleged in the indictment and court documents, between May 2018 and July 2019, Gogic conspired with others to distribute massive quantities of cocaine via commercial cargo ships.  Gogic coordinated with the sources of the cocaine in Colombia, the crewmembers who transported tons of cocaine on commercial cargo ships on the high seas, and the network of port workers who transported and offloaded the cocaine in Europe via the United States. 

Members of the conspiracy loaded the commercial cargo ships at night near the coast and ports, working with crewmembers who would hoist loads of cocaine from speedboats that approached the ships at multiple points along their route.  To physically load the cocaine aboard, they used the ship’s cranes as well as nets.  Once the cocaine was onboard, the crewmembers would hide it within specific shipping containers that they knew had sufficient room to conceal the large quantities of cocaine and for which they had duplicate counterfeit seals.  They selected the specific containers to be used to conceal the cocaine based, in part, on the containers’ location and orientation, and route and destination on board the vessel.  This complex operation relied on having to access to each ship’s crew, route, manifest, real-time positioning and geolocation data and a knowledge of what legitimate cargo is contained in each container.   The conspiracy used a different set of workers with access to the ports in Europe to clandestinely access and remove the cocaine from the shipping containers upon their arrival. 

U.S. law enforcement officers seized three of these shipments:

  • The February 27, 2019 seizure of approximately 1,437 kilograms of cocaine secreted aboard the MSC Carlotta at the Port of New York and New Jersey;
  • The March 18, 2019 seizure of approximately 537 kilograms of cocaine secreted aboard the MSC Desiree at the Port of Philadelphia; and
  • The June 19, 2019 seizure of approximately 17,956 kilograms of cocaine secreted aboard the MSC Gayane at the Port of Philadelphia.  The seizure of the cocaine from the MSC Gayane—worth over $1 billion—was one of the largest seizures of cocaine in United States history. 

Law enforcement officers also seized significant amounts of cocaine related to the scheme at ports in Panama, Peru, and the Netherlands, among other countries.

If convicted, the defendant faces a mandatory minimum sentence of 10 years in prison and up to life in prison. 

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

HSI New York leads and directs all operational and administrative activities of the El Dorado Task Force (EDTF).  The EDTF is comprised of more than 200 law enforcement personnel representing approximately thirty-five (35) federal, state, and local law enforcement and regulatory agencies.  The mission of the EDTF is to disrupt, dismantle, or render ineffective, organizations involved in the laundering of proceeds of narcotics trafficking and other financial crimes.

The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section.  Assistant United States Attorneys Nomi Berenson and Robert Pollack are in charge of the prosecution.

The Defendant:

GORAN GOGIC
Age: 43          
Montenegro

E.D.N.Y. Docket No. 22-493 (NM)

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Department of Justice Press Releases

Member of Southwest Baltimore “NFL” Gang Sentenced to 29 Years in Federal Prison for a Racketeering Conspiracy, Including Two Murders and an Attempted Murder

by DOJ Press October 31, 2022
By DOJ Press

Greenbelt, Maryland – On October 28, 2022, U.S. District Judge Paul W. Grimm sentenced Bobby Cannon, a/k/a Freaky, age 24 of Baltimore, to 29 years in federal prison, followed by five years of supervised release, for participating in a violent racketeering conspiracy, specifically, the NFL Criminal Enterprise, including committing two murders.  The term NFL stands for Normandy, Franklin, and Loudon, which are three adjacent streets that run through the Edmondson Village.  Members of NFL have social and familial ties to the Edmondson Village neighborhood in southwest Baltimore. 

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Washington Division; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.

According to his guilty plea, from at least 2016 through March 26, 2020, Bobby Cannon was a member of the NFL Criminal Enterprise, which engaged in a pattern of criminal racketeering activity including murder, narcotics trafficking and smuggling, illegal firearms possession, bribery, witness intimidation, and witness retaliation.  Cannon admitted that he participated in illegal activities with other NFL Enterprise members, including committing two murders and an attempted murder, and distributing large quantities of heroin, fentanyl, and cocaine. 

As detailed in Cannon’s plea agreement, in 2018, co-defendant James Roberts and other NFL members offered money for the murder of an individual who was believed to be a federal witness cooperating with law enforcement regarding NFL.  On June 16, 2018, Cannon walked up to the porch of a house in Edmondson Village, where the individual and his girlfriend were sitting.  Cannon shot them both multiple times, killing them.  Cannon was subsequently paid by Roberts for committing the murders, which Cannon agrees was in furtherance of the NFL Criminal Enterprise.

In late 2018, Cannon was recruited by NFL to murder another individual in exchange for money and in furtherance of the NFL Criminal Enterprise.  Cannon planned the murder for several weeks and learned that the individual resided in a halfway house in East Baltimore.  On January 4, 2019, Cannon borrowed a car from a female associate in southwest Baltimore and later drove the car to the vicinity of the halfway house, where Cannon waited for the individual.  After several hours, Cannon saw the individual on the street and shot the individual multiple times in the arm, back, neck, and buttocks.  The individual sustained life-threatening injuries but survived the shooting.

Following the shooting, Cannon abandoned the car and notified the female associate, who then falsely reported to the Baltimore Police that her car was stolen.  Cannon then notified the NFL Criminal Enterprise that he attempted to murder the individual but failed to kill him.

In April 2019, the FBI arrested members of the NFL Criminal Enterprise, but not Cannon.  On a recorded jail call following the arrests, incarcerated NFL members instructed Cannon to continue distributing narcotics for the NFL.  Cannon took over a drug phone used by the NFL Criminal Enterprise so that he could continue to sell narcotics to drug customers of the organization.

On December 28, 2019, Baltimore Police officers found Cannon unconscious in a parked van. During their interaction, officers saw that Cannon had a gun, which they recovered from his jacket pocket.  Officers then searched Cannon’s van and recovered over 98 grams of fentanyl, which Cannon agrees he possessed with the intent to distribute it.

Cannon admitted in his plea agreement that over the course of the racketeering conspiracy, Cannon and his co-conspirators distributed over one kilogram of heroin, more than 400 grams of fentanyl, and more than 280 grams of crack cocaine.

More than 30 defendants in this and related cases have pleaded guilty and been sentenced to between 15 years and time served.  NFL member James Henry Roberts, a/k/a “Bub,” age 32, of Baltimore, Maryland, pleaded guilty on October 3, 2022, along with gang leader Gregory Butler, a/k/a “Gotti,” “Sags,” and “Little Dick,” age 31, also of Baltimore, to conspiracy to participate in a racketeering enterprise related to their activities in the NFL gang.  They are expected to be sentenced to 30 years in federal prison.  On October 7, 2022, the final defendant in the case, D’Andre Preston, age 26, of Baltimore, pleaded guilty to his participation in the NFL racketeering conspiracy, including a murder, and is expected to be sentenced to 25 years in federal prison.  Judge Grimm has scheduled sentencing for all three defendants on December 9, 2022.

This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN).  NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms.  NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles.  For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.

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 make our neighborhoods safer for everyone.  Project Safe Neighborhoods (PSN) is 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.

This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

United States Attorney Erek L. Barron commended the FBI, the DEA, the Montgomery County Department of Police and the Baltimore Police Department for their work in the investigation.  Mr. Barron commended the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County and Howard County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices for their assistance in the investigation and prosecution.  Mr. Barron thanked Assistant U.S. Attorneys John W. Sippel, Jr., James T. Wallner, and Robert I. Goldaris, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.   

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Department of Justice Press Releases

Fresno Resident Sentenced to 5 Years in Prison for Conspiring to Distribute Fentanyl

by DOJ Press October 31, 2022
By DOJ Press

FRESNO, Calif. — Isaiah Garcia, 20, of Fresno, was sentenced today to five years in prison for conspiring to distribute over 40 grams of fentanyl, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between October and December of 2020, Isaiah Garcia conspired with his brother, who was incarcerated at the Fresno County Jail, to distribute fentanyl pills. The two used the jail’s telephones to discuss the plan. Investigators uncovered the plan and in December 2020, obtained a federal warrant to search Isaiah Garcia’s residence. In his bedroom, officers found over 1,000 fentanyl pills. Isaiah Garcia pleaded guilty on Aug. 8, 2022. On Oct. 11, 2022, Isaiah Garcia’s brother, Mario Garcia, was sentenced to 12.5 years in prison.

The case was the result of an investigation by FORT (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department) and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.

This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.

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Department of Justice Press Releases

FEDERAL JURY CONVICTS ST. THOMAS MAN OF DISTRICT’S FIRST FENTANYL CONSPIRACY CASE

by DOJ Press October 31, 2022
By DOJ Press

St. Thomas, VI – United States Attorney Delia L. Smith announced today that a federal jury convicted Elijah Hakim, of St. Thomas, in the District’s first prosecution of conspiracy to possess with intent to distribute fentanyl and possession with intent to distribute fentanyl prosecution.  Fentanyl is a synthetic opioid that is 50 times more potent than heroin.  Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose. Chief District Judge Robert A. Molloy schedule Hakim’s sentencing for February 24, 2023.

According to court documents and evidence presented at trial, from April 20, 2021, to May 20, 2021, Hakim conspired to mail two packages containing fentanyl from Georgia to St. Thomas.  The first package was mailed on April 22, 2021, and contained 150 fentanyl pills weighing approximately 17.5 grams which were concealed in a vitamin bottle.  The package was filled with spray foam and mailed from an Atlanta, GA, area post office to St. Thomas.  The second package was mailed on May 18, 2021, and contained 200 fentanyl pills weighing approximately 25 grams which were concealed inside a Gucci gift box.  Like the first package, the second package was filled with spray foam to further conceal the pills and mailed from an Atlanta, GA post office.  Both packages were seized by U.S. Customs and Border Protections officers in San Juan, PR and St. Thomas, VI.  Court documents also revealed that during this period, a victim on St. Thomas overdosed from consuming pills suspected to contain fentanyl.

At trial, the United States introduced fingerprints found on the May package which matched Hakim’s fingerprints.  Also admitted at trial was packaging material found in Hakim’s Atlanta apartment which consisted of a spray foam cannister, bubble wrap, vacuum sealed bags and fiber tape consistent with the packaging used to conceal the fentanyl in the April and May packages.

“Across the United States, opioids, primarily fentanyl, killed over 80,000 people in 2021 alone,” stated United States Attorney Delia Smith.  “Here in the Virgin Islands, we have thus far been spared the worst of the opioid epidemic, but these two shipments of fentanyl show that we are not immune.  Fortunately, the vigilance and dedication of our law enforcement partners led to the interception of these deadly drugs and we were able to convict those responsible.  We will continue to do everything in our power to keep the Virgin Islands safe from this lethal scourge.”

“The defendant’s lawless misuse of the U.S. Mail has finally come to a halt,” said Juan A. Vargas, Acting Inspector in Charge of the Miami Division. “Postal Inspectors will continue to work collaboratively with our law enforcement partners to combine our resources and expertise to combat the perils of illegal and dangerous drug distribution.”

“Our extraordinary enforcement partnerships allow us to work in unison and combat drug trafficking and the violence this brings,” said SAC Denise Foster from the DEA Caribbean Division. “It’s the DEA’s mission to dismantle and destroy drug trafficking organizations no matter where they originate. We will continue to work diligently with our Federal, state, and local counterparts and to bring to justice those who seek to poison our communities.”

The investigation was conducted by the United States Postal Inspection Service, the Drug Enforcement Administration, U.S. Customs and Border Protection and Homeland Security Investigations.  Assistant U.S. Attorneys Meredith Edwards and Kyle Payne prosecuted the case.

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Department of Justice Press Releases

U.S. Attorney’s Office to Host Protecting Houses of Worship Training Seminar

by DOJ Press October 31, 2022
By DOJ Press

FORT COLLINS – The United States Attorney’s Office for the District of Colorado announces it will co-host a Protecting Houses of Worship (PHOW) event in Fort Collins on November 17, 2022. This interfaith event will focus on providing faith-based institutions with information from law enforcement and faith-related security experts about the threats of violence facing houses of worship and responsive measures to counter potential risks. 

The location for the event on November 17, 2022 is the Congregation Har Shalom at 725 West Drake Road in Fort Collins. If interested in attending, please RSVP to Jillian Dardani at [email protected].

The U.S. Attorney’s Office plans to co-host roughly four PHOW trainings a year across Colorado. The PHOW programs are interfaith events hosted at a community center, church, mosque, synagogue or other faith-based facility for participation by all interested faith-based organizations in the city or region. 

The event in Fort Collins is sponsored by The U.S. Attorney’s Office for the District of Colorado, Community Relations Service, Rocky Mountain Region, and the Fort Collins Police Department.

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Department of Justice Press Releases

Monmouth County Man Sentenced to 63 Months in Prison for Multimillion-Dollar Accounts Receivable Factoring Scheme

by DOJ Press October 31, 2022
By DOJ Press

TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 63 months in prison for defrauding lenders of $50 million dollars in connection with an invoice factoring scheme perpetrated over nearly a decade, U.S. Attorney Philip R. Sellinger announced.

Vincent Galano, 60, of Oceanport, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of wire fraud. Judge Quraishi imposed the sentence today in Trenton federal court.

According to documents filed in the case and statements made in court:

Accounts receivable factoring, also known as invoice financing (factoring), is a financial transaction through which a company obtains cash by selling its unpaid invoices, ordinarily at a discount, to a factor. Factoring clients send their debtors notices of assignment naming the factor as the assignee of the debt owed on the invoices. The factor collects invoiced amounts owed by the clients’ debtors and, upon collection of the entire invoiced amount, pays its clients the balance of the invoice, deducting the factor’s fees.

Galano formed PF Funding LLC (PF Funding) in 1996 for the purpose of factoring accounts receivables for various corporate clients. In 2007, PF Funding entered into a secured lending relationship with a single purpose entity created to finance PF Funding’s factoring business. Shortly thereafter, the factoring lender established a line of credit as a means to provide PF Funding capital to grow its receiveables portfolio. Over the next several years, PF Funding grew its factoring business by drawing from the line of credit while maintaining as current its loan obligations to the factoring lender. However, beginning in 2011, Galano, through PF Funding, purchased increasingly greater numbers of invoices for which he was unable to collect the debt owed on the receivables. To justify PF Funding’s continued draws from the line of credit, Galano concealed this bad debt from the factoring lender by misrepresenting the bad invoices as collectible on reports he routinely provided to the factoring lender. In other instances, Galano mischaracterized invoices that had already been paid and collected as outstanding and capable of being factored, in essence double-counting to drive up the outstanding receivables. In the reports provided to the factoring lender, Galano manipulated the overall value of PF Funding’s portfolio of outstanding invoices in an amount proportional to the funds he needed to draw from the unsecured line of credit to maintain as current the principal and interest payments on his outstanding loans.   

Engaging in this pattern of misrepresentation over nearly a decade, by 2020 PF Funding had ultimately defaulted under its loan obligations, owing approximately $50 million to its lenders by virtue of the scheme. During a May 2020 telephone call with his lenders, Galano admitted that he had concealed significant losses suffered by PF Funding over many years. He admitted that he had routinely distributed to lenders over that prolonged period fabricated reports that overstated the number and value of outstanding invoices which the reports represented as payable.   

In addition to the prison term, Judge Quraishi sentenced Galano to two years of supervised release and ordered him to pay restitution of $50 million. 

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Eric A. Boden of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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Department of Justice Press Releases

U.S. Attorney Brandon B. Brown Announces Election Day Program to Prevent Voter Fraud and Protect Voting Rights

by DOJ Press October 31, 2022
By DOJ Press

SHREVEPORT/LAFAYETTE/MONROE/ALEXANDRIA/LAKE CHARLES, La. – United States Attorney Brandon B. Brown announced today that Assistant United States Attorneys (AUSAs) Cytheria Jernigan and Karen King will lead the efforts of this office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.  AUSAs Jernigan and King have been appointed to serve as the District Election Officers (DEOs) for the Western District of Louisiana, and in that capacity are 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 United States Attorney Brandon B. Brown. “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,” said U.S. Attorney Brown. “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, AUSAs/DEOs Jernigan and King will be on duty in this district while the polls are open.  AUSA Jernigan can be reached by the public at our Shreveport office at 318-676-3600 and AUSA King can be reached at our Lafayette office at 337-262-6618.”

For those who may have complaints regarding violations in the Shreveport, Monroe, and Alexandria areas, please contact AUSA Cytheria Jernigan at 318-676-3600. Those who may have complaints involving violations in the Lafayette or Lake Charles areas, please contact AUSA Karen King at 337-262-6618. You can also email us with any complaints at: [email protected].

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 in Shreveport at 318-861-1890, Monroe at 318-387-0773, Alexandria at 318-443-5097, Lafayette at 337-233-2164 and Lake Charles at 318-433-6353.

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.  

United States Attorney Brown stated: “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  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.

For more information about federal elections, please go to our website at https://www.justice.gov/usao-wdla/election-fraud and click on the Federal Election Fact Sheet.

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October 31, 2022 0 comments
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US and World News

U.S. dollar rises as Fed likely doing another big hike; sterling sinks

by Reuters October 31, 2022
By Reuters

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) – The dollar gained across the board on Monday, regaining some of the luster it lost earlier in the month, bolstered by expectations of another supersized rate increase at this week’s Federal Reserve monetary policy meeting.

That said, the dollar’s gains could be limited if the Fed signals on Wednesday that the pace of rate hikes will slow as it assesses the impact so far of its policy tightening.

Sterling, on the other hand, was on the defensive against the dollar and the euro, despite market forecasts of another 75 basis-point rate hike by the Bank of England later this week as well.

The Fed is widely expected to raise its benchmark overnight interest rate by 75 basis points (bps) to a range of 3.75% to 4.00%, its fourth such increase in a row. But for the December meeting, fed funds futures have priced in on Monday a 55% chance of a 50-bps rate increase, down from about 67% last Friday.

In afternoon trading, the dollar rose 0.8% against the struggling yen to 148.62 yen. For the month of October, the dollar was up 2.7%, on track to post its third monthly gain versus the Japanese currency.

“I think the dollar in general is consolidating. A lot of the news has already been priced into the dollar,” said Amo Sahota, executive director at FX consulting firm Klarity FX in San Francisco.

“If the dollar is to make new gains, I think it would be relatively marginal. Generally, the dollar is somewhere in the bend – trying to establish a high, but has not generally done so. Think there is an exhaustion in that trade.”

On Monday, Japan’s finance ministry said it spent a record $42.8 billion on currency intervention this month to prop up the yen. A steep drop in the yen to a 32-year low of 151.94 to the dollar on Oct. 21 likely triggered the intervention, followed by another one on Oct. 24.

The dollar likewise climbed against the Swiss franc, rising 0.6% to 1.0014 francs.

The greenback, however, was on pace for a monthly decline of 0.5% in October, based on the dollar index. That would be its first fall since May and only its second this year.

Sterling fell 1.2% against the dollar to $1.1476. The BoE is likely to deliver a 75-basis point hike at Thursday’s meeting, although analysts said longer-term rate expectations are coming under sustained pressure.

The pound also fell versus the euro, which rose 0.5% to 86.16 pence.

BoE Deputy Governor Ben Broadbent recently suggested that the borrowing costs priced by investors would hammer the UK economy, noting that he’s doubtful Britain could engineer a “soft-landing” – a U.S. term for bringing inflation back to target without significantly damaging the real economy.

The euro dropped 0.8% against the dollar to $0.9887. The euro barely reacted after data released on Monday that showed eurozone inflation came in hotter than expected at 10.7%, a fresh record high.

Elsewhere, the Chinese yuan slumped after data released on Monday showed China’s factory activity unexpectedly fell in October, weighed down by softening global demand and strict domestic COVID-19 curbs.

The dollar was last 0.9% higher against the yuan traded offshore at 7.336. [CNY/]

The Reserve Bank of Australia (RBA), meanwhile, is tending towards the dovish end of the spectrum and is expected to raise interest rates by a more modest 25 bp at its Tuesday meeting, even as inflation raced to a 32-year high last quarter.

The Aussie dollar was last down 0.3% at US$0.6392.

In the emerging market world, the U.S. dollar dropped more than 2% against the Brazilian real after former president Luiz Inacio Lula da Silva narrowly defeated President Jair Bolsonaro in a run-off election.

========================================================

Currency bid prices at 3:08PM (1908 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 111.5400 110.8100 +0.68% 16.597% +111.6700 +110.7200

Euro/Dollar $0.9884 $0.9968 -0.84% -13.05% +$0.9966 +$0.9874

Dollar/Yen 148.6250 147.4350 +0.81% +29.11% +148.8450 +147.5500

Euro/Yen 146.90 146.93 -0.02% +12.72% +147.7500 +146.7200

Dollar/Swiss 1.0014 0.9959 +0.57% +9.80% +1.0032 +0.9962

Sterling/Dollar $1.1465 $1.1615 -1.27% -15.21% +$1.1612 +$1.1461

Dollar/Canadian 1.3631 1.3606 +0.20% +7.83% +1.3685 +1.3601

Aussie/Dollar $0.6390 $0.6412 -0.32% -12.08% +$0.6428 +$0.6368

Euro/Swiss 0.9897 0.9925 -0.28% -4.55% +0.9941 +0.9881

Euro/Sterling 0.8618 0.8577 +0.48% +2.60% +0.8625 +0.8573

NZ $0.5809 $0.5816 -0.08% -15.10% +$0.5835 +$0.5776

Dollar/Dollar

Dollar/Norway 10.3880 10.3335 +0.64% +18.05% +10.4185 +10.3500

Euro/Norway 10.2697 10.2923 -0.22% +2.56% +10.3247 +10.2657

Dollar/Sweden 11.0451 10.9395 +0.10% +22.49% +11.0660 +10.9466

Euro/Sweden 10.9175 10.9062 +0.10% +6.68% +10.9343 +10.8920

(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Alun John in London and Rae Wee in Singapore; Editing by Andrew Heavens, Nick Zieminski and Andrea Ricci)

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Reina says Jackson Township will buy Leesville Road land approved for private school complex

by Phil Stilton October 31, 2022
By Phil Stilton

JACKSON TOWNSHIP, NJ – Jackson Township Mayor Michael Reina says he and township lawyer Gregory P. McGuckin have successfully negotiated the purchase of a plot of land slated to be turned into a private school campus on Leesville Road. The proposed purchase will save the 32-acre tract from development and become part of the township’s inventory of open space.

“We have been successful in negotiating with the owners of this Leesville Road property with the intent of having the township acquire this parcel of land,” Mayor Michael Reina said.

Reina said township lawyers, RLIUPA lawyers and lawyers for Lakewood developer Mordechai Eichorn, the owner of the property, are still finalizing the details of the agreement, but all parties have agreed on the deal.

“This is a huge win for Jackson,” Reina said.

Council President Marty Flemming met with Eichorn earlier this year to make a deal with the Lakewood-based developer. Instead of four private schools, Flemming proposed a plan to build more than 60 housing units on another property approved for schools owned by Eichorn. The zoning for the area would have only allowed for 10.

Flemming’s plan was shot down by the Jackson Township Zoning Board. Later, Flemming was criticized for inviting Eichorn to a political fundraiser earlier this month.

“My priority is to protect existing neighborhoods within Jackson Township and to protect and honor the rights of all Jackson residents,” Reina said. “We have found a way to achieve both outcomes with this agreement once it is finalized and approved.”

Reina criticized Flemming’s meeting with Eichorn, which would have allowed him to build a high-density development on Leesville Road.

“We’re looking for real ways to save and protect our town’s open spaces, not just election time gimmicks to spend $1.8 million to stop eight homes from being built,” Reina said. “While my opponent was out politicking, my administration was working overtime on this.”

Reina said Flemming’s plan to spend $1.8 million on non-developable land and land that didn’t have any commercial buyers was not in the best interest of Jackson for such a little return on the amount of homes prevented from being built.

“This is real progress, and this is what I mean when I say we’re moving Jackson forward,” he added.

Eichorn was unable to be reached at press time for comment. Reina’s proposal to purchase the land will now head to the township council for a vote. Reina’s opponents, Marty Flemming, Andrew Kern and Samara Porter-O’Neill will now decide the fate of the parcel. If they reject Reina’s offer to the developer, the four schools will be built.

Reina said, like the Rova Farms purchase, the land could be eventually turned into passive or active recreation, but it will never be turned into schools or houses.

Flemming later responded in shock that Reina would not include him in the negotiations between township lawyers and the developer’s lawyers, saying it’s why Reina needs to be voted out of office. Despite proposing 50 homes at Eichorn’s other property, Flemming claimed Reina held Leesville residents “hostage”.

“We wish the residents of Leesville Road had not been held hostage so the mayor could preserve the space a week before the election,” Flemming griped about the purchase before being able to offer Eichorn another sweetheart deal to build a large residential development on the site.

Last week, it became known that Flemming tried to sell his own property to an unknown developer to build a private school on land he owned in nearby Lakehurst.

Reina says Jackson Township will buy Leesville Road land approved for private school complex

This is a breaking story. More details will be added throughout the night.

October 31, 2022 0 comments
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Brazil vote ‘reinforces’ trust in democratic institutions – U.S. State Dept

by Reuters October 31, 2022
By Reuters

WASHINGTON (Reuters) – The election in Brazil that saw leftist Luiz Inacio Lula da Silva elected for a third term as president reinforce trust in the country’s democratic institutions, U.S. State Department spokesperson Ned Price said on Monday.

Price said figures from across Brazil’s political spectrum had expressed respect for the outcome of Sunday’s vote, when asked whether he was concerned that incumbent President Jair Bolsonaro had not commented on the results.

“The vote reinforces our trust in the strength of Brazil’s democratic institutions, which perform their constitutional roles in a free and fair election conducted with transparency,” Price said.

“A hallmark of every democracy is acceptance of the will of the people as expressed through elections, followed by a peaceful transfer of power – that’s what the world will expect and what we anticipate they will see in the coming weeks,” he added.

(Reporting by Humeyra Pamuk and Simon Lewis)

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Biden congratulates Brazil’s Lula on election victory

by Reuters October 31, 2022
By Reuters

WASHINGTON (Reuters) – U.S. President Joe Biden congratulated Brazil’s Luiz Inacio Lula da Silva on his election victory during a call on Monday, the White House said in a statement.

Biden and Lula discussed their countries’ strong relationship and committed to continue working as partners to address common challenges, the White House said.

(Reporting by Chris Gallagher)

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U.S. throws out Libor-rigging charges against Hayes

by Reuters October 31, 2022
By Reuters

LONDON (Reuters) – A New York judge has dismissed criminal charges against Tom Hayes, the British trader who became the face of the global Libor interest rate scandal.

The former UBS and Citigroup trader served more than five years in prison in Britain for conspiring to rig Libor (London interbank offered rate) – a benchmark used to set rates on trillions of dollars in loans, mortgages and derivatives.

The U.S. decision comes after a separate U.S. ruling in August to throw out convictions for rigging Libor against two former Deutsche Bank traders.

Libor, once dubbed the world’s most important number, was discredited after the 2008 financial crisis when authorities in the United States and Britain found traders had manipulated it to make a profit.

Hayes was released from prison in Britain in January 2021 after serving half an 11-year sentence.

Hayes’ legal team is considering further legal options to clear his name, a representative for Hayes said in a statement.

“The U.S. Department of Justice has seen fit to dismiss charges based on the same facts, evidence and case in law that the UK courts used to justify my 11-year prison sentence,” Hayes said.

“That alone should be grounds enough for these cases to be referred back to the Court of Appeal in the UK, and if need be to the Supreme Court, which is yet to hear the case.”

(This story has been corrected to fix a spelling error in the headline.)

(Reporting by Iain Withers, additional reporting by Lawrence White; editing by Jason Neely)

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Column-U.S. bond ‘term premium’ is back, casting shadow over long end: McGeever

by Reuters October 31, 2022
By Reuters

By Jamie McGeever

ORLANDO, Fla. (Reuters) – In the worst year for U.S. Treasuries ever, it is the ultra-long end that investors should be most worried about.

Yields across the curve are at multi-year peaks as the Federal Reserve has yanked up interest rates to battle 40-year high inflation, while duration risk – a bond’s increased sensitivity to price changes over longer time frames – is also weighing heavily on the long end.

Crucially though, ‘term premium’ is back. This is the compensation investors demand for taking on interest rate risk over a bond’s lifetime, or put another way, for buying a longer-dated bond rather than rolling over shorter-term debt.

After decades of decline, even into negative territory, term premium is rising again. A secular shift may be underway.

There’s no fixed formula for calculating it, so estimates can vary significantly. But three different Fed models all tell the same story: whether it’s due to fears over inflation, liquidity, or supply and demand risks, investors want to be paid a higher rate of interest for lending to Uncle Sam long term.

GRAPHIC: U.S. 10-year Treasury term premium https://fingfx.thomsonreuters.com/gfx/mkt/zjpqjqayrvx/TermPremium3.jpg

GRAPHIC: U.S. forward term premium 10 years hence https://fingfx.thomsonreuters.com/gfx/mkt/klpygemnypg/TermPremium1.jpg

GRAPHIC: U.S. 10-year term premium (zero coupon bond) https://fingfx.thomsonreuters.com/gfx/mkt/dwvkdgjzwpm/TermPremium2.jpg

“We are in a tectonic phase of monetary policy and you are getting asset dislocations across the board, including long bonds,” said Solomon Tadesse, head of North American Quant Strategies at Societe Generale.

Dysfunction at the long end can quickly spread to the rest of the bond complex and financial markets more broadly – witness the blow up in 30-year gilts a few weeks ago that froze the UK mortgage market, forced the Bank of England to intervene, and slammed sterling to a record low against the dollar.

Thirty-year Treasuries last week snapped a long downturn. But against a backdrop of high uncertainty and volatility, it is this illiquid and price-sensitive part of the curve where the canary in the Treasury market coal mine will be seen.

“The concern is, if this elevated uncertainty persists, it could potentially trigger forced sellers, whose impact on the market could be quite pronounced. Things could snowball from there,” said Mark Cabana, head of U.S. rates strategy at Bank of America.

“The market is fragile, and by definition, when things are fragile, they can break easily.”

‘MAKES NO SENSE’

For most of the last 50 years the term premium has been positive, and since the early 1980s it has fallen, following the general downward path of interest rates. The trillions of dollars worth of bonds purchased by the Fed in response to the 2007-2009 financial crisis then pushed the term premium into negative territory.

But the Fed is now raising rates aggressively and has begun trimming its asset holdings. There is concern about where the marginal demand for long bonds will come from – many foreign central banks are selling Treasuries for currency market intervention purposes, and the U.S. central bank is stepping back too.

Treasury Secretary Janet Yellen last week insisted that the bond market is functioning smoothly, but said steps are being taken to improve its resilience in an environment of declining liquidity and rising global volatility.

GRAPHIC: U.S. Treasury market ‘MOVE’ volatility index https://fingfx.thomsonreuters.com/gfx/mkt/gdvzqrkbjpw/MOVEINDEX.jpg

Yellen didn’t mention any particular part of the curve but the long end is most vulnerable, partly because of low liquidity in ‘off-the-run’ bonds compared with ‘on-the-run’ paper.

On-the-run Treasuries are the newest issue of a particular maturity and are more heavily traded. A 30-year bond bought and held to maturity by a pension fund, for example, quickly becomes ‘off the run,’ so liquidity risk ends up lifting the term premium.

Andrew Brenner, head of international fixed income at NatAlliance Securities, reckons liquidity in off-the-run Treasuries may be around 30% lighter than on-the-run bonds.

In the week through Oct. 21 the 30-year bond’s price fell for an eighth straight week, the longest selling streak since 2004.

In yield terms, the 33-basis-point rise in that week was the biggest since March 2020 and the fourth-largest since the Great Financial Crisis. Like other parts of the curve, the 30-year yield is at its highest in more than a decade.

If the Fed is successful in driving down inflation or the economy goes into recession, more investors will flock to 30-year bonds. But right now they are aren’t getting paid enough to lock into long-dated bonds, especially the 30-year space.

“I wouldn’t go beyond three years. You get 4.10% for five years. Maybe. Or 4.10% for 30 years? It makes no sense,” Brenner at NatAlliance Securities said.

(The opinions expressed here are those of the author, a columnist for Reuters.)

Related columns:

– Fed may be alert to favoured yield curve alarm (Oct. 28)

– Markets map out the end of the line (Oct. 19)

– Hedge funds still betting on that elusive Fed pivot (Oct. 17)

(By Jamie McGeever; Editing by Paul Simao)

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U.S. resumes ‘on-site’ inspections to keep track of weapons in Ukraine

by Reuters October 31, 2022
By Reuters

By Idrees Ali

WASHINGTON (Reuters) – The United States has restarted on-site inspections in Ukraine to help keep track of the billions of dollars of weapons being provided to Kyiv, a senior U.S. official said on Monday.

Moving large amounts of weaponry into the largest conflict in Europe since World War Two carries with it risks that some could fall into the wrong hands.

But U.S. officials have said that it has been a risk worth taking in providing about $18 billion in weapons since Russia’s invasion of Ukraine in February.

A senior U.S. defense official, speaking on the condition of anonymity, said the Ukrainian government had committed to safeguarding and accounting for the weapons and there was no credible evidence they were being diverted.

But, the official said, the United States had recently restarted “on-site” inspections to check weapons stocks in Ukraine “whenever and wherever the security conditions allow.”

On-site inspections are a routine part of agreements countries sign with the United States when they are provided certain weapons.

“We’ll continue to work with our colleagues across the U.S. government and with our international partners to ensure accountability of security assistance now and in the future,” the official told reporters.

The inspections are being carried out by the defense attache and office of defense cooperations at the U.S. embassy in Kyiv, which re-opened in May.

The official declined to say how many on-site visits had been carried out so far, but acknowledged that it was not always easy to keep track of weapons in an area with an active conflict.

The United States cannot visit some places, like those close to the frontline, and is providing training to Ukrainian forces so they can provide better data, the official added.

Smaller and Highly portable missiles such as Stinger surface-to-air missiles — which are a type of MANPAD — can help win wars, but in the past they have also been lost, sold, or wound up in the arsenals of extremist groups.

Last week, the State Department laid out a series of steps it would take in the coming years to counter the diversion of weapons in eastern Europe.

(Reporting by Idrees Ali)

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