Maryland Man Charged with Money Laundering Offenses Related to Computer Intrusions that Targeted New Jersey Company

by DOJ Press June 3, 2022

By: DOJ Press

NEWARK, N.J. – A Maryland man was indicted on money laundering charges related to money obtained through unlawful computer intrusions that targeted a New Jersey-based employee benefit and payroll management company, U.S. Attorney Philip R. Sellinger announced today.

Oladapo Sunday Ogunbiyi, 40, of Greenbelt, Maryland, is charged by indictment with one count of conspiracy to commit money laundering, two counts of money laundering, and two counts of engaging in transactions in property derived from criminal activity. Ogunbiyi appeared before U.S. Magistrate Judge Lois H. Goodman in Trenton federal court.

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

Ogunbiyi conspired with others to launder funds obtained through an unlawful computer fraud scheme in which they obtained unauthorized access to a 401k account held for the benefit of a person at the New Jersey company. They then added a bank account belonging to another individual to the victim’s 401k account without the victim’s knowledge or authorization. This account was designated as the account to receive withdrawals from the victim’s 401k account. Thereafter, $246,390 was transferred to the bank account belonging to account that had been added without the victim’s knowledge or consent.

Ogunbiyi and others directed that the fraud proceeds be converted into cashier’s checks, which were provided to Ogunbiyi. He then deposited the cashier’s checks into bank accounts under his control and withdrew the funds in a series of ATM and counter withdrawals designed to conceal the source of the money, which he used for personal expenditures.

The counts of money laundering and money laundering conspiracy carry a maximum penalty of 20 years in prison and a fine of $500,000, or twice the value of the property involved in the transaction, whichever is greater. The counts of engaging in transactions in property derived from criminal activity carry a maximum penalty of 10 years in prison and a fine of $250,000, or twice the value of the property involved in the transaction, whichever is greater.

U.S. Attorney Sellinger credited special agents of the FBI, including the FBI’s Cyber Crimes Task Force, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Office’s Cybercrime Unit.

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

June 3, 2022 0 comments

Department of Justice Press Releases

Former Carpenters’ Benefit Plan Administrator Admits Embezzling $140,000

by DOJ Press June 3, 2022

By: DOJ Press

NEWARK, N.J. – The former administrative manager of a carpenters’ union pension fund today admitted embezzling approximately $140,000 and making false statements on a required report to the U.S. Department of Labor (DOL), U.S. Attorney Philip R. Sellinger announced today.

George R. Laufenberg, 72, of Wall Township, New Jersey, pleaded guilty before U.S. District Judge Kevin R. McNulty in Newark federal court to two counts of an indictment charging him with embezzling approximately $140,000 in pension benefits (Count One) and making false statements to the DOL (Count Five).

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

Laufenberg was the administrative manager of the Northeast Carpenters Pension Fund, which was subject to the Employee Retirement Income Security Act (ERISA). Laufenberg was a fiduciary and participant in the pension fund. He admitted stealing $140,000 that was paid to him under a deferred compensation agreement to which he was not entitled. Laufenberg also admitted that he made false statements in a form required under ERISA that he filed to the Department of Labor on behalf of the pension fund.

The maximum penalty for each count is five years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 6, 2022.

U.S. Attorney Sellinger credited special agents of the DOL Employee Benefit Security Administration, under the supervision of Thomas Licetti, Regional Director; special agents of the DOL Office of the Inspector General, under the supervision of Special Agent in Charge Jonathan Mellone; and agents of the Port Authority of New York/New Jersey, under the supervision of Inspector General John Gay, with the investigation leading to today’s guilty plea.

The government is represented by Senior Litigation Counsel V. Grady O’Malley of the Organized Crime/Gangs Unit, and Assistant U.S. Attorney Kendall R. Randolph of the Organized Crime and Drug Enforcement Task Force Unit.

June 3, 2022 0 comments

Department of Justice Press Releases

Holbrook Man Sentenced for Cocaine Trafficking; Boston Man Pleads Guilty to Cocaine Distribution

by DOJ Press June 3, 2022

By: DOJ Press

BOSTON – A Holbrook man was sentenced and a Boston man pleaded guilty yesterday in connection with their respective roles in a drug trafficking conspiracy.

Andre Echevarria, 41, of Holbrook, was sentenced by U.S. District Court Judge Richard G. Stearns to 41 months in prison and three years of supervised release. In September 2021, Echevarria pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine.

Tarik Muhammad, 27, of Boston, pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine. Judge Stearns scheduled sentencing for June 21, 2022.

The defendants were charged in June 2020 along with 23 others as part of “Operation Snowfall” – a multi-year investigation into drug trafficking activities by a drug trafficking organization (DTO) comprised of Boston-based street gang members and associates. According to the charging documents, beginning in November 2018, law enforcement investigated drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.

The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown.

The investigation identified Echevarria as a drug trafficker who purchased cocaine from co-defendants and wholesale drug suppliers Winston McGhee and, allegedly, Derek Hart. According to the charging documents, McGhee and Hart were the two highest-level drug suppliers within the DTO. Over the course of the investigation, investigators identified Echevarria coordinating drug deals on intercepted calls with others, including McGhee and allegedly Hart, and also surveilled him participating in drug trafficking activity. On a call in April 2020, Echevarria received a “cooking class” from McGhee in which McGhee instructed him on how to convert cocaine into crack with the powder he had previously sold to him. When those efforts failed, Echevarria returned cocaine to McGhee in exchange for a replacement batch.

During a search of Echevarria’s vehicle at the time of his arrest, law enforcement recovered a Smith & Wesson .380 caliber pistol with an obliterated serial number. A search of his residence resulted in the seizure of a Smith & Wesson magazine and 10 rounds of ammunition.

The investigation also identified Muhammad as a drug distributor. Law enforcement intercepted calls between Muhammad and Kenji Drayton, one of the main suppliers and distributors within the DTO, in which they coordinated a meetup. Law enforcement subsequently surveilled Drayton’s meeting with Muhammad at an agreed-upon location discussed in the calls. Soon thereafter, Drayton entered a location known to have been used by Drayton during the investigation for drug trafficking purposes. After emerging minutes later, Drayton joined Muhammad in a vehicle and drove away. Law enforcement stopped the car soon after and ordered the occupants Muhammad out of the car. While searching Muhammad for possible weapons or drugs, law enforcement felt an object at the crease of Muhammad’s buttocks. Law enforcement restrained Muhammad, placed him in the back of an empty, clean police wagon, and transported him to the police station.

During the transport, law enforcement saw Muhammad throw himself to the ground and thrash about. Officers radioed those observations onto the station. When the wagon arrived at the station, Muhammad was observed to be covered with white powder. The back of the wagon also was dusted with white powder. Officers subsequently recovered a ripped plastic bag containing a white residue from the outer area of Muhammad’s buttocks.

Of the defendants charge in this case, Muhammad is the 12^th defendant to plead guilty and Echevarria is the seventh defendant to be sentenced. Four defendants have pleaded guilty and are awaiting sentencing. Four defendants have pleaded not guilty and are awaiting trial. One defendant, Derek Hart, remains at large.

The charge of conspiracy to distribute and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release, and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

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 https://www.justice.gov/OCDETF.

First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance in the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Offices. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.

The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

June 3, 2022 0 comments

Department of Justice Press Releases

Malden Woman Sentenced for Embezzling Nearly $800,000 from Employer

by DOJ Press June 3, 2022

By: DOJ Press

BOSTON – A Malden woman was sentenced today in federal court in Boston on fraud and identity theft charges in connection with her embezzlement of more than $795,000 from her employer.

Kayla Figelski, 34, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to three years in prison and two years of supervised release. Figelski was also ordered to pay restitution in the amount of $796,747. In May 2021, Figelski pleaded guilty to seven counts of bank fraud and one count of aggravated identity theft.

From in or about April 2017 through June 2019, Figelski stole at least $796,747 from her employer, an elder law attorney, in Malden. Figelski perpetrated the scheme by forging checks to herself from her employer’s checking accounts, including conservatorship, trust and estate administration accounts her employer maintained for the firm’s elderly clients and their estates. Figelski deposited the checks into her own bank account, from which she withdrew the funds, or directly cashed the checks. Figelski concealed the scheme by altering bank statements to make it appear that the checks were written to legitimate vendors. As a result of Figelski’s theft, her employer was forced to sell the building where her law practice was located, which had been in the victim’s family since 1976.

United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Malden Police Department. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.

June 3, 2022 0 comments

Department of Justice Press Releases

Stilwell Man Sentenced to Life in Prison for Sexually Abusing a Minor

by DOJ Press June 3, 2022

By: DOJ Press

TULSA, Okla. –A Stilwell man who sexually abused a minor during a 2017 road trip was sentenced Friday in federal court, announced U.S. Attorney Clint Johnson.

Chief U.S. District Judge John F. Heil III sentenced David Anthony RomanNose, 45, to life in federal prison for aggravated sexual abuse by force and threat in Indian Country and 180 months in prison for sexual abuse of a minor in Indian Country.

“David RomanNose exploited the trust and friendship of a 12-year-old child. The victim’s testimony about the abuse she endured helped prevent the defendant from continuing to prey on other children,” said U.S. Attorney Clint Johnson. “The collaboration and exemplary work from our partners at the FBI, Oneida Indian Nation Police Department and Craig County Sheriff’s Office ensured that RomanNose was held responsible for his crimes.”

“The reprehensible crimes committed by Mr. RomanNose against a minor reveal his repulsive and vile character,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The spectacular bravery displayed by the victim– in combination with the partnerships between federal, tribal, and state law enforcement– brought Mr. RomanNose to justice. The FBI and our police partners will continue to fight against predators who prey on our Oklahoma community.”

On July 4, 2017, RomanNose, accompanied a group who were traveling through northeastern Oklahoma after attending a festival in Seiling. While traveling, RomanNose sexually abused the victim in the backseat of the vehicle. The violation occurred in Indian Country on the Will Rogers Turnpike/Interstate Highway I-44 near Vinita. RomanNose also abused the minor, an Oneida Indian Nation citizen, after the group arrived home in New York.

During the trial, family members testified that following the road trip, the victim’s behavior changed dramatically. They stated that she became more withdrawn and started acting out. Unexplained changes in children’s behavior can be indicative of child sexual abuse. The victim eventually disclosed the abuse to a counselor and family member.

RomanNose remains in the custody of the U.S. Marshals Service until transfer to a Federal Bureau of Prisons facility.

The FBI, Oneida Indian Nation Police Department, Craig County Sheriff’s Office, and the Craig County District Attorney’s Office conducted the investigation. Assistant U.S. Attorneys Gina S. Gilmore and Stacey P. Todd are prosecuting the case.

*Note: the spelling of the defendant’s last name was clarified in court today as RomanNose. It was spelled Romannose in previous press releases.

June 3, 2022 0 comments

Department of Justice Press Releases

Drug Dealer Sentenced to 25 Years for Distributing Fentanyl Resulting in an Overdose Death

by DOJ Press June 3, 2022

By: DOJ Press

Assistant U. S. Attorneys Kareem A. Salem (619) 546-8904 and Larry Casper (619) 546-6734

NEWS RELEASE SUMMARY – June 3, 2022

SAN DIEGO – Drug dealer Arnold Ray Walters III of San Diego was sentenced in federal court today to 25 years in prison for unlawfully possessing firearms and distributing fentanyl that resulted in the overdose death of a 24-year-old Poway man on January 1, 2017.

According to his plea agreement, Walters admitted that, on or about December 31, 2016, he knowingly provided a pressed-blue pill containing fentanyl to another individual and understood that it would, in turn, be provided to the victim. Walters also admitted he was aware of the potentially lethal impact of the fentanyl based on his knowledge of other individuals accidentally overdosing on fentanyl.

At today’s sentencing hearing, U.S. District Judge Janis L. Sammartino noted, “This was truly a tragic case.”

Walters, who has a history of drug-sales convictions and firearm offenses, admitted that he sold fentanyl despite knowing the perils associated with the drug. Walters was also found in unlawful possession of several firearms including an AR-15 style semi-automatic rifle.

“This is a sentence that reflects the tragic and senseless loss of a young life,” said U.S. Attorney Randy Grossman. “Dealers take note, you will pay a high price for your greedy, reckless actions which are destroying lives, families and communities. Our prosecutors and law enforcement officials are working hard to prevent more deaths and seek justice for victims.” Grossman thanked the prosecution team as well as officials from the San Diego Sheriff’s Department and Homeland Security Investigations for their excellent work on this case.

“This significant sentence should send a strong message that HSI takes very seriously its mission of ensuring public safety,” said HSI San Diego Special Agent in Charge Chad Plantz. “HSI will continue to work with our federal, state, and local law enforcement partners to relentlessly investigate and bring to justice those who introduce dangerous narcotics into our communities.”

For those who suffer from addiction, please know there is help. Call the crisis line at 888-724-7240; it’s always open.

DEFENDANT Case Numbers 19-CR-4406-JLS; 18-CR-2185-JLS

Arnold Ray Walters III Age: 34 San Diego

SUMMARY OF CHARGES

Felon in Possession of Firearm – Title 18, U.S.C., Section 922(g)(1)

Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(c)

Maximum penalty: Mandatory minimum 20 years in prison up to life

AGENCY

San Diego Sheriff’s Department

U.S. Homeland Security Investigations

June 3, 2022 0 comments

Department of Justice Press Releases

Leaders of International Organization that Trafficked in Counterfeit Apple Products Plead Guilty

by DOJ Press June 3, 2022

By: DOJ Press

Assistant U.S. Attorney Timothy F. Salel (619) 546-8055

NEWS RELEASE SUMMARY – June 3, 2022

SAN DIEGO – Three brothers from San Diego pleaded guilty in federal court yesterday, admitting that for eight years, they led an international conspiracy to traffic counterfeit iPhones and iPads.

As part of their plea agreements, the Liao brothers – Zhiwei, Zhimin and Zhiting – and their wives – Dao La, Mengmeng Zhang, and Tam Nguyen, who also pleaded guilty yesterday – agreed to forfeit their interests in five residences in San Diego, more than $250,000 in criminal proceeds, and more than 200 Apple iPhones that were counterfeit, fraudulently obtained, or linked to their criminal conspiracy.

The Liaos admitted that, from 2011 through at least August 2019, they managed an organization to traffic in counterfeit Apple products. The Liaos imported counterfeit iPhones and iPads from China that looked genuine and included identification numbers that matched identification numbers on real iPhones and iPads that were under warranty and had been previously sold to customers in the United States and Canada.

At the direction of the Liao brothers, co-conspirators traveled to hundreds of Apple Stores across the United States and Canada and attempted to exchange more than 10,000 counterfeit iPhones and iPads for genuine iPhones and iPads. The Liaos exported fraudulently obtained iPhones and iPads to individuals in foreign countries for profit. The estimated total infringement amount or loss suffered by Apple was approximately $6.1 million.

“As our markets become more global, more complex and more sophisticated, protecting intellectual property rights become even more important,” said U.S. Attorney Randy S. Grossman. “Our office will aggressively prosecute criminals who try to steal intellectual property and attempt to exchange counterfeit products for genuine products. We will continue fighting IP crime and upholding the rule of law.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“For years, the Liao brothers and their co-conspirators trafficked thousands of counterfeit Apple products in exchange for genuine Apple products totaling millions of dollars,” said FBI Special Agent in Charge Stacey Moy. “The FBI and our law enforcement partners at the San Diego Police Department, the San Diego County Sheriff’s Department, U.S. Customs and Border Protection, Homeland Security Investigations, and the U.S Attorney’s Office will pursue criminal organizations who target legitimate businesses through fraudulent means for their own financial gain.”

The Liao brothers and their wives are scheduled to appear for sentencing before U.S. District Judge Cynthia A. Bashant on August 15, 2022, at 9:00 a.m.

DEFENDANTS Case Number 19CR4407-BAS

Zhiwei Liao, aka “Allen” San Diego, CA Age: 34

Zhimin Liao, aka “Jimmy” San Diego, CA Age: 36

Zhiting Liao, aka “Tim” San Diego, CA Age: 33

Dao Trieu La, aka “Selena”

aka “Denise” San Diego, CA Age: 32

Mengmeng Zhang, aka “Aria” San Diego, CA Age: 31

Tam Thi Minh Nguyen, aka “Kelly,”

aka “Actheart” San Diego, CA Age: 39

CO-CONSPIRATORS WHO PREVIOUSLY PLEADED GUILTY

Charley Hsu San Diego, CA Age: 41

Danny Tran Chan,

aka “Stanley” San Diego, CA Age: 32

Phillip Pak, aka “Teddy” San Diego, CA Age: 33

Deedee Zhu, aka “David,”

aka “Peter” San Diego, CA Age: 35

Jiaye Jiang, aka “joejoekong”

aka “yipkong” San Diego, CA Age: 34

Hyo Yang, aka “Will” San Diego, CA Age: 33

SUMMARY OF CHARGES

The Liao brothers (Zhiwei, Zhimin, and Zhiting) all pleaded guilty to conspiracy to traffic in counterfeit goods. The Liaos’ wives pleaded guilty to substantive counts of wire fraud or mail fraud. Dao Trieu La pleaded guilty to wire fraud. Mengmeng Zhang and Tam Nguyen pleaded guilty to mail fraud.

Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Section 2320

Maximum penalty: Ten years in prison, $2 million fine, mandatory restitution, and forfeiture.

Wire fraud – Title 18, U.S.C., Section 1343

Maximum penalty: Twenty years in prison, the greater of $250,000, or twice the value of the gross gain or twice the gross loss to the victims, mandatory restitution, and forfeiture.

Mail fraud – Title 18, U.S.C., Section 1341

Maximum penalty: Twenty years in prison, the greater of $250,000, or twice the value of the gross gain or twice the gross loss to the victims, mandatory restitution, and forfeiture.

AGENCIES

Federal Bureau of Investigation

San Diego Police Department

San Diego Sheriffs

U.S. Customs & Border Protection

Homeland Security Investigations

June 3, 2022 0 comments

Financial News

Walmart says some suppliers working with retailer to cut prices

by Reuters June 3, 2022

By: Reuters

By Siddharth Cavale

BENTONVILLE, Ark. -Senior Walmart Inc executives said on Friday some suppliers have been responding to the largest U.S. retailer’s efforts to lower prices despite their own struggles with high inflation, material and labor costs.

Investors have questioned Walmart’s ability to ask suppliers to offer price reductions when they too are focused on protecting margins in the face of inflation hovering at a four-decade high.

“There are certain suppliers that have taken one line, others that are working with us to find ways to reduce costs even in times when costs are going up,” John Furner, CEO of Walmart U.S., said in response to an analyst question at the Arkansas-based company’s annual meeting.

“A number of suppliers” are working with Walmart to ensure prices do not go up, and in some cases, also finding ways to lower it, Furner added.

“I am really impressed,” Furner said.

Walmart CEO Doug McMillon said the company is using methods such as ordering further out or asking for changes in pack sizes or case sizes to make it easier for suppliers to control their costs.

“In my 30 years of experience, most of it in merchandising, there has always been something you can do, there has always been a way to get costs out to alleviate pressure,” McMillon said at the meeting.

McMillon also said he was “concerned” about the rising inflation rate, whether at this level or if it rises further and stays there for a sustained period of time.

“I think that has a negative impact on too many families, and I’m concerned about that,” McMillon said.

To soften the impact on households and better compete against dollar chains, McMillon said Walmart will focus on limiting price hikes on basic goods such as canned tuna and macaroni and cheese.

To ensure volumes are maintained on discretionary items, it also plans to reduce prices on apparel and home goods to attract shoppers squeezed by inflation as well as those on a higher income scale, McMillon added.

Besides price increases, Walmart is dealing with an inventory surge caused in part by a shift in purchasing patterns toward food and other basics. Inventories rose 32% in the first quarter, a fifth of which came from merchandise arriving earlier than it anticipated.

Furner said getting the inventory “right” was going to be key to its success after it contributed to a quarterly decline in first quarter profits. It will, however, take a couple of more quarters “to get back to where we want to be,” Furner said.

The comments were made a day after Walmart announced that it will open four new fulfillment centers in the United States over the next two years, doubling its storage capacity and speeding up its ability to deliver orders.

(Reporting by Siddharth Cavale in Bentonville, Arkansas; Editing by Clarence Fernandez and Will Dunham)

June 3, 2022 0 comments

Top Headlines US and World News

Mariah Carey is sued over ‘All I Want for Christmas Is You’

by Reuters June 3, 2022

By: Reuters

By Jonathan Stempel

(Reuters) – Mariah Carey was sued on Friday over her 1994 Christmas classic “All I Want for Christmas Is You” by a songwriter who said he co-wrote a song with the same title five years earlier.

In a complaint filed in New Orleans federal court, Andy Stone is seeking at least $20 million in damages from Carey, her co-writer and Sony Music Entertainment for copyright infringement and misappropriation, among other claims.

Stone, who performs as Vince Vance with the country-pop band Vince Vance & the Valiants, accused the defendants of having illegally exploited his “popularity and unique style” and caused confusion by recording the newer song without his permission.

Carey’s and Stone’s songs have different lyrics and melodies.

Spokespeople for Carey and Sony Music did not immediately respond to requests for comment.

Carey’s song appeared on her album “Merry Christmas,” and has long received widespread play on radio and in retail shopping environments during the holiday season.

It has also topped the Billboard Hot 100 chart every year since 2019, despite having been recorded a quarter century earlier. “All I Want for Christmas Is You” was Carey’s 19th No. 1 song, one fewer than the Beatles.

Stone said his own song had received “extensive airplay” during the 1993 Christmas season, and also appeared on Billboard charts.

It wasn’t clear from the complaint when Stone first learned about Carey’s song.

The complaint said Stone’s lawyers first contacted the defendants in April 2021 about their alleged unauthorized use, but were “unable to come to any agreement.”

Stone’s lawyers did not immediately respond to requests for additional comment.

The case is Stone v Carey et al, U.S. District Court, Eastern District of Louisiana, No. 22-01616.

(Reporting by Jonathan Stempel in New York; Editing by Cynthia Osterman)

June 3, 2022 0 comments

Department of Justice Press Releases

Fresno Man Pleads Guilty to Escape

by DOJ Press June 3, 2022

By: DOJ Press

FRESNO, Calif. —Joel Jose Rueda, 29, of Fresno, pleaded guilty today to escaping from the custody of the Bureau of Prisons, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Rueda had been serving a federal sentence for being a felon in possession of a firearm when he escaped from federal custody in December 2021. He was later arrested by Fresno police officers following a traffic stop on March 11, 2021. During the stop, he attempted to flee and resisted arrest. After pleading guilty in Fresno County Superior Court to resisting the officers’ arrest, he was brought to federal court to face an escape charge and quickly entered his guilty plea.

This case is the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorneys Justin Gilio and Karen Escobar are prosecuting the case.

Rueda is scheduled for sentencing before U.S. District Judge Jennifer L. Thurston on Sept. 9, 2022. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

June 3, 2022 0 comments

Department of Justice Press Releases

Navajo man indicted for sexual abuse of a minor

by DOJ Press June 3, 2022

By: DOJ Press

ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Leonard Lewis was arraigned on an indictment charging him with sexual abuse of a minor in Indian Country. Lewis, 65, of Shiprock, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending space at a halfway house, after which he will remain on conditions of release pending trial, which has not been scheduled.

A federal grand jury indicted Lewis on May 25. According to the indictment, between March 1, 2021, and April 30, 2021, Lewis allegedly sexually abused a child, identified as Jane Doe. The alleged abuse occurred on the Navajo Nation in San Juan County, New Mexico.

An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lewis faces up to 15 years in prison.

The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Criminal Investigation and Navajo Police Department. Special Assistant United States Attorney Chelsea N. Van Deventer is prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals 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 http://www.justice.gov/psc/.

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June 3, 2022 0 comments

Department of Justice Press Releases

Main Line Accountant Convicted at Trial of Tax Evasion

by DOJ Press June 3, 2022

By: DOJ Press

PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Michael Goldner, 51, of Malvern, PA, was convicted today at trial of tax evasion and failing to file tax returns, charges arising from his scheme to use his cash and his employer’s business bank accounts to hide his actual income and therefore avoid paying his legitimate tax obligations.

In June 2021, the defendant was charged by Indictment, and a Superseding Indictment was filed in November 2021 charging the defendant with one count of tax evasion and two counts of failure to file personal income tax returns. Evidence presented at trial showed that for the tax years 2013 through 2017, Goldner reported more than $4 million in income and $1.8 million in tax due, of which he paid less than $100,000. Further, from 2016 to 2020, the defendant evaded the payment of these outstanding taxes while earning a substantial income. Instead of depositing his paychecks into a personal bank account, he cashed the checks and used his employer’s business accounts to pay hundreds of thousands of dollars of personal expenses, including rent, a second home, groceries, private school and dance lessons for his child, country club dues, and restitution from a prior fraud conviction for which he was on federal probation. For the years 2016 and 2017, the defendant filed tax returns that failed to report this additional income from his employer. For tax years 2018 and 2019, the defendant failed to file a return altogether.

“The American tax system provides government services critical to our people,” said U.S. Attorney Williams. “Every time someone cheats the tax system, the burden of providing vital services increases on taxpayers who pay their fair share. As a professional accountant, this defendant knew what his obligations were and willfully chose to ignore them, even while he was on federal probation for a previous fraud conviction. The jury’s verdict has sent a clear message that tax cheats will not be tolerated.”

“Mr. Goldner went through great lengths to not pay taxes, including hiding money from the IRS,” said Yury Kruty, IRS Criminal Investigation Special Agent in Charge. “In all the steps he took to hide his money, he failed to account for the hallmark expertise IRS Special Agents possess when it comes to following the money. Mr. Goldner thought he could fly under the radar, but the verdict returned today shows how futile his efforts were.”

“‘If at first you don’t succeed, try, try again’ really shouldn’t be a fraudster’s mantra,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “But Michael Goldner apparently thought he’d give it a whirl. Hopefully, this second federal conviction will be more impactful than his first. To put it plainly: if you keep defrauding the government and cheating honest taxpayers, the FBI and our partners are going to keep locking you up.”

The case was investigated by Internal Revenue Service – Criminal Investigations and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney David Ignall and Department of Justice Trial Attorney for the Criminal Division’s Tax Section Jack Morgan.

June 3, 2022 0 comments

Department of Justice Press Releases

Taylorville, Illinois, Man Convicted of Possession of More than 50 Grams of Methamphetamine (“Ice”) with the Intent to Distribute

by DOJ Press June 3, 2022

By: DOJ Press

SPRINGFIELD, Ill. – A federal jury returned a guilty verdict on Thursday, June 2, 2022, against Donald R. Felton, 37, of the 900 block of West Poplar Street in Taylorville, Illinois, for possession with intent to distribute 50 or more grams of actual methamphetamine (“Ice”). Sentencing for Felton has been scheduled for October 5, 2022, at the federal courthouse in Springfield, Illinois.

Over two days of testimony, the government presented evidence to establish that beginning in May 2019, law enforcement officers initiated an investigation of Felton for traveling to the St. Louis area to obtain methamphetamine for redistribution in the Taylorville area. On June 8, 2019, officers saw Felton drive his SUV to a rest area near Hamel, Illinois, north of St. Louis, where he met with an unknown man, and then returned to Taylorville. Once Felton returned to Taylorville, officers executed a traffic stop and then searched the SUV. During the search, officers seized 398 grams (nearly one pound) of pure methamphetamine (“Ice”) and a digital scale. They also seized more than $800 in cash from Felton.

Felton remains in the custody of the U.S. Marshals. At sentencing, Felton faces statutory penalties of a minimum of 15 years and up to life in prison, up to a $20,000,000 fine, and a minimum of 10 years and up to a life term of supervised release.

The case investigation was conducted by the Illinois State Police Central Illinois Enforcement Group, Christian County Sheriff’s Office, Taylorville Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorneys Timothy A. Bass and Sierra Senor-Moore represented the government at trial.

June 3, 2022 0 comments

Department of Justice Press Releases

Red Lake Man Sentenced to More Than 19 Years in Prison for Sexual Abuse of a Child

by DOJ Press June 3, 2022

By: DOJ Press

ST. PAUL, Minn. – A Red Lake man was sentenced to 235 months in prison, followed by five years of supervised release, for sexually abusing a child over the course of several years, announced United States Attorney Andrew M. Luger.

According to court documents, between August 2014 and August 2020, Kory Paul Lussier, 25, knowingly and repeatedly engaged in sexual contact with a minor female who was between seven and thirteen years old at the time.

Lussier was sentenced today in U.S. District Court before Senior Judge Paul A. Magnuson. On October 21, 2021, Lussier pleaded guilty to one count of abusive sexual contact with a child.

This case was the result of investigations conducted by the Red Lake Department of Public Safety and the FBI Headwaters Safe Trails Task Force.

Assistant U.S. Attorney Alexander D. Chiquoine prosecuted the case.

June 3, 2022 0 comments

Department of Justice Press Releases

Rochester Man Sentenced to 15 Years in Prison for Conspiracy to Distribute Methamphetamine

by DOJ Press June 3, 2022

By: DOJ Press

ST. PAUL, Minn. – A Rochester man was sentenced today to 180 months in prison followed by five years of supervised release for conspiracy to distribute methamphetamine, announced United States Attorney Andrew M. Luger.

According to court documents, from June 2019 through August 2019, Nicholas John Hanson, 38, was part of a conspiracy to distribute methamphetamine. As part of the conspiracy, Hanson coordinated and facilitated the delivery of methamphetamine on behalf of the conspiracy leader, John Willis Netherton, also known as “Big John,” and “Wicked One.”

Hanson, who pleaded guilty on August 17, 2020, was sentenced yesterday by U.S. District Judge Susan Richard Nelson. Hanson was the last conspiracy member to be sentenced by the Court. Judge Nelson previously sentenced several other conspiracy members:

On August 25, 2020, Jacob Paul Williams was sentenced to 180 months imprisonment and five years of supervised release.
On August 28, 2020, Miguel Angel Cuevas Zamora was sentenced to 120 months imprisonment and two years of supervised release.
On May 11, 2021, conspiracy leader Netherton was sentenced to 260 months imprisonment and five years of supervised release.
On June 22, 2021, Jason Edward Hoffman was sentenced to 132 months imprisonment and five years of supervised release.
On June 7, 2021, Andrew Robert Berndt was sentenced to 102 months imprisonment and five years of supervised release.
On July 19, 2021, Deja Lee Benton was sentenced to 84 months imprisonment and five years of supervised release.
On August 18, 2021, Joshua Alexander Sazo was sentenced to 60 months imprisonment and two years of supervised release.
On June 1, 2022, Kayleigh Rea Todd was sentenced to 40 months imprisonment and five years of supervised release.

This case is the result of an investigation conducted by the Drug Enforcement Administration, the Rochester Police Department, the Minnesota Bureau of Criminal Apprehension, the Southeast Minnesota Violent Crimes Enforcement Team, the Olmsted County Sheriff’s Office, the South Central Drug Investigation Unit, and the Minnesota State Patrol.

Assistant U.S. Attorney Allen A. Slaughter, Jr. prosecuted the case.

June 3, 2022 0 comments

Department of Justice Press Releases

Second Port St. Joe man Sentenced to Ten Years in Federal Prison for Conspiracy to Distribute Methamphetamine

by DOJ Press June 3, 2022

By: DOJ Press

TALLAHASSEE, FLORIDA – Arthur Desean North, 32, of Port St. Joe, Florida, was the second man from Port St. Joe to be sentenced to federal prison this week for his part in a conspiracy to distribute methamphetamine. North received a sentence of ten years in prison. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the sentence.

“Rural communities throughout our district are plagued by methamphetamine distribution,” said U.S. Attorney Coody. “We are committed to work with our law enforcement partners to identify and aggressively prosecute those recidivist offenders who continue to distribute such addictive and deadly controlled substances. This sentence is further proof of this resolve.”

North pled guilty to conspiring to distribute over 50 grams of methamphetamine and 500 grams of a mixture containing methamphetamine. Court documents show that North was responsible for distributing at least ten pounds of methamphetamine.

“In partnership with the Drug Enforcement Administration and the United States Attorney’s Office, we remain committed to identifying and holding those who distribute deadly drugs to account,” said Franklin County Sheriff A.J. Smith. “Significant sentences like this should deter those who would engage in such acts.”

North was part of a conspiracy which was obtaining methamphetamine from Atlanta, Georgia. North was provided with one-pound quantities of methamphetamine which he resold in various communities in North Florida. North had four prior convictions for drug-trafficking offenses and was on probation for sale of cocaine at the time he conspired to distribute methamphetamine.

“Methamphetamine is a dangerous and destructive drug. This sentence sends a strong message that those who bring this poison into our communities will be held accountable for their actions,” said Miami Field Division Special Agent in Charge Deanne L. Reuter. “DEA remains deeply committed to working with our local, state, and federal law enforcement partners to target these individuals who threaten the safety of our communities.”

Following North’s 120-month sentence, he will be on federal supervised release for ten years. This sentence was the result of an investigation conducted by the Franklin County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney James A. McCain prosecuted the case.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

June 3, 2022 0 comments

Department of Justice Press Releases

Justice Department secures settlement against DeKalb County, Georgia, after officials terminated a sexual harassment complainant

by DOJ Press June 3, 2022

By: DOJ Press

ATLANTA – The Department of Justice announced it has reached a settlement agreement with DeKalb County, Georgia, that will resolve its lawsuit alleging the county violated Title VII of the Civil Rights Act of 1964 when it retaliated against former administrative assistant Cemetra Brooks, first by extending her probationary period and then by terminating her employment during the extended period, because she made a sexual harassment complaint. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex and religion and prohibits retaliation against employees for opposing employment practices that are discriminatory under Title VII.

“Discrimination in the workplace is toxic,” said U.S. Attorney Ryan K. Buchanan. “An employee who faces discrimination in the workplace should be able to freely exercise their rights under Title VII without fear of retaliation.”

“Probationary employees are especially vulnerable to discrimination as they have fewer employment protections than permanent employees and are often reluctant to file a complaint since it could easily cost them their jobs,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This settlement agreement underscores that Title VII’s protections apply equally to probationary employees. The Civil Rights Division stands ready to vigorously enforce the law when employees who complain about sexual harassment are subject to retaliation.”

According to the Justice Department’s complaint filed in the U.S. District Court for the Northern District of Georgia, during her initial six-month probation, Brooks filed a sexual harassment complaint with DeKalb County alleging her supervisor, the deputy director of the county’s Facilities Management Department, subjected her to unwelcome sexual advances, comments and conduct. these claims were later investigated and substantiated by the county. The United States’ lawsuit further alleges that, just one month after Brooks complained, the deputy director’s supervisor, the director, contacted human resources asking for information from the county’s still-active investigation of Brooks’ complaint that would help him fire Brooks while she remained on probation. According to the lawsuit, on advice of a high-level county official, the director extended Brooks’ probation by three months instead. However, near the end of her extended probation, the director fired Brooks without giving her any reason.

Under the settlement agreement, submitted for court entry and approval, the county will pay Brooks $190,000 for lost wages and compensatory damages. The agreement also requires the county to develop, and submit to the Justice Department for approval, anti-discrimination and anti-retaliation policies and to provide the supervisors and managers in its Facilities Management Department with training on those policies and on the types of workplace conduct that constitute unlawful employment practices under Title VII.

The Atlanta District Office of the Equal Employment Opportunity Commission (EEOC) investigated and attempted to resolve Brooks’ charge of discrimination before referring it to the Department of Justice as an enforcement action. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov.

Assistant U.S. Attorney Aileen Bell-Hughes, Civil Rights Enforcement Coordinator, handled this matter for the U.S. Attorney’s Office for the Northern District of Georgia.

The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and www.justice.gov/crt/employment-litigation-section.

For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

June 3, 2022 0 comments

Department of Justice Press Releases

Three Kenosha Area Men Enter Guilty Pleas for Conspiring to Commit Tax Fraud

by DOJ Press June 3, 2022

By: DOJ Press

United States Attorney Richard G. Frohling announced that on March 29, 2022, an information was filed charging Richard Pignotti (age 63), Richard Milkie (age 62), and Jeffrey Milkie (age 56), each of Kenosha, Wisconsin, with conspiring to under-report income derived from their business in order to pay less federal tax, in violation of Title 18, United States Code, Section 371. Separate plea agreements were also filed, in which each defendant agreed to waive indictment by the grand jury and enter a guilty plea to the charge in the information. On separate dates in May 2022, each defendant entered a plea of guilty to the charge in the information.

According to court filings, the defendants jointly operated a roofing business and agreed to not deposit all payments for completed jobs into their business bank account,and they further agreed to not report all of their business’s earnings to the accountant who prepared their business and personal tax returns. These actions caused the defendants and their business to pay fewer federal taxes in 2015, 2016, and 2017 than they actually owed by virtue of their business’s actual earnings revenue. In total, as a result of their conspiracy, they underpaid $321,192 in federal taxes.

Each defendant faces a maximum penalty of up to five years in prison and a fine of up to $250,000, or both.

The defendants are scheduled to be sentenced by Chief United States District Judge Pamela Pepper on separate dates in September and October of 2022.

This matter was investigated by the Internal Revenue Service Criminal Investigations Division, and has been assigned to Assistant United States Attorney Stephen A. Ingraham for prosecution.

# # #

For Additional Information Contact:

Public Information Officer [email protected]

414-297-1700

June 3, 2022 0 comments

Financial News

Analysts raise Argentina 2022 inflation forecast to 72.6% – central bank

by Reuters June 3, 2022

By: Reuters

BUENOS AIRES – Analysts consulted by Argentina’s central bank raised their inflation estimate for the South American country for 2022 to 72.6%, 7.5 percentage points above the previous month’s forecast, according to a monthly survey published Friday.

Meanwhile, inflation for the month of May was expected to have been at 5.2%, according to the central bank’s monthly Market Expectations Survey (REM).

The poll surveyed 41 analysts over several days.

The economists consulted also slightly cut their economic growth projection for Argentina in 2022 to 3.3%, a contraction of 0.2 percentage points.

Latin America’s third largest economy has been suffering from extreme inflation for years, and has been aggravated by the effects of Russia’s invasion of Ukraine.

Argentina has just begun to emerge from a long recession.

The economists surveyed also expect the average nominal exchange rate in Argentina to hit 157.97 pesos per dollar in December.

(Reporting by Maximilian Heath; Writing by Kylie Madry; Editing by David Gregorio)

June 3, 2022 0 comments

Financial News

Exclusive – Tesla’s Musk feels ‘super bad’ about economy, needs to cut 10% of salaried staff

by Reuters June 3, 2022

By: Reuters

By Hyunjoo Jin

SAN FRANCISCO – Tesla CEO Elon Musk has a “super bad feeling” about the economy and needs to cut about 10% of salaried staff at the electric carmaker, he said in emails seen by Reuters.

A message sent to executives on Thursday laid out his concerns and told them to “pause all hiring worldwide.” The dire outlook came two days after the billionaire told staff to return to the workplace or leave and adds to a growing chorus of warnings from business leaders about the risks of recession.

Tesla shares fell 9% in U.S. trade on Friday after the Reuters report. The tech-heavy Nasdaq was down about 2%.

In another email to employees on Friday, Musk said Tesla will be reducing salaried headcount by 10%, as it has become “overstaffed in many areas.” But “hourly headcount will increase,” he said.

“Note, this does not apply to anyone actually building cars, battery packs or installing solar,” Musk wrote in the email seen by Reuters.

Almost 100,000 people were employed at Tesla and its subsidiaries at the end of 2021, its annual SEC filing showed. It did not break down numbers of salaried and hourly workers.

Graphic: GRAPHIC-Tesla’s expanding payroll, https://fingfx.thomsonreuters.com/gfx/mkt/znpneogxzvl/Pasted%20image%201654272779488.png

The Texas-based company was not immediately available for comment.

Musk has warned in recent weeks about the risks of recession, but his email ordering a hiring freeze and staff cuts was the most direct and high-profile message of its kind from the head of an automaker, with others describing sky high demand.

“Elon Musk has a uniquely informed insight into the global economy. We believe that a message from him would carry high credibility,” Adam Jonas, an analyst Morgan Stanley, said in a report.

SHANGHAI LOCKDOWN

So far, demand for Tesla cars and other electric vehicles (EV) has remained strong and many traditional indicators of a downturn – including increasing dealer inventories and incentives in the United States – have not materialized.

But Tesla has struggled to restart production at its Shanghai factory after COVID-19 lockdowns forced costly outages.

“It is always better to introduce austerity measures in good times than in bad times. I see the statements as a forewarning and a precautionary measure,” said Hanover-based NordLB analyst Frank Schwope.

Musk’s gloomy outlook echoes recent comments from executives including JPMorgan Chase & Co CEO Jamie Dimon and Goldman Sachs President John Waldron.

A “hurricane is right out there down the road coming our way,” Dimon said this week.

Inflation in the United States is hovering at 40-year highs and has caused a jump in the cost of living for Americans, while the Federal Reserve faces the difficult task of dampening demand enough to curb inflation while not causing a recession.

It was also not immediately clear what implication, if any, Musk’s view would have for his $44 billion bid for Twitter. U.S. antitrust regulators cleared the way for the deal on Friday, sending Twitter shares up 2%.

Several analysts have cut price targets for Tesla recently, forecasting lost output at its Shanghai plant, a hub supplying EVs to China and for export.

China accounted for just over a third of Tesla’s global deliveries in 2021, according to company disclosures and data released on sales there. On Thursday, Daiwa Capital Markets estimated Tesla had about 32,000 orders awaiting delivery in China, compared to 600,000 vehicles for BYD, its larger EV rival in that market.

Graphic: GRAPHIC-Tesla’s sales , https://graphics.reuters.com/AUTOS-TESLA/movanzdrwpa/chart.png

‘PAUSE ALL HIRING’

Before Musk’s warning, Tesla had about 5,000 job postings on LinkedIn from sales in Tokyo and engineers at its new Berlin gigafactory to deep learning scientists in Palo Alto. It had scheduled an online hiring event for Shanghai on June 9 on its WeChat channel.

Musk’s demand that staff return to the office has already faced pushback in Germany. And his plan to cut jobs would face resistance in the Netherlands, where Tesla has its European headquarters, a union leader said.

“You can’t just fire Dutch workers,” said FNV union spokesperson Hans Walthie, adding Tesla would have to negotiate with a labor union on terms for any departures.

In a Tuesday email, Musk had said Tesla employees were required to be in the office for a minimum of 40 hours per week, closing the door on any remote work. “If you don’t show up, we will assume you have resigned,” he said.

Jason Stomel, founder of tech talent agency Cadre, said that the return-to-office memo could be a way to get people to leave.

“(Musk) knows there’s a percentage of workers who are just not going to come back,” which he said would be cheaper for Tesla because no severance would be needed.

Musk has referred to the risk of a recession repeatedly in recent comments.

Remotely addressing a conference in mid-May in Miami Beach, he said: “I think we are probably in a recession and that recession will get worse.”

Graphic: GRAPHIC-Tesla’s global employment, https://graphics.reuters.com/TESLA-JOB/zjpqkggxxpx/chart.png

(Reporting by Hyunjoo Jin; Additional reporting by John O’Donnel, Ju-min Park, Zoey Zhang, Toby Sterling and Sarah Morland and Nivedita Balu; editing by John Stonestreet, Mark Potter, Nick Zieminski and Lisa Shumaker)

June 3, 2022 0 comments

Top Headlines US and World News

Texas school shooting victims take action against gunmaker

by Reuters June 3, 2022

By: Reuters

By Tom Hals

(Reuters) -The father of a 10-year-old girl slain in the Uvalde, Texas, school shooting and a school employee have taken initial steps that could lead to lawsuits against Daniel Defense, the maker of the semiautomatic rifle used in last week’s massacre that killed 21 people.

Lawyers for Alfred Garza, father of Robb Elementary School student Amerie Jo Garza, requested in a letter on Friday that Daniel Defense provide information about its marketing to teens and children.

“We ask you to begin providing information to us now, rather than force Mr. Garza to file a lawsuit to obtain it,” said the letter.

No lawsuits have yet been announced against Daniel Defense stemming from the shooting.

Daniel Defense of Black Creek, Georgia did not immediately respond to a request for comment.

The 18-year-old Uvalde gunman, Salvador Ramos, stormed the school on May 24 and killed 19 students and two teachers before he was killed by law enforcement, according to authorities.

He legally purchased his first gun on his 18th birthday on May 17.

Josh Koskoff, Garza’s attorney, led the case over the Sandy Hook Elementary School shooting in Newtown, Connecticut in 2012, which led to a $73 million settlement by gunmaker Remington in February. It marked the first significant settlement over a mass shooting against a gunmaker, which are protected by a federal law from lawsuits.

“Sandy Hook in Connecticut is not binding on the Texas court but that doesn’t mean it lacks persuasive power,” said Koskoff.

Koskoff told Reuters he was applying what he learned from the Sandy Hook case to his current investigation, focusing on marketing to children and teens and product placements in first-person shooter video games.

“The shooter, essentially the day he turned 18, he knew exactly what weapons he was getting,” said Koskoff.

In a separate legal action, school employee Emilia Marin filed papers in Texas state court seeking an order to depose Daniel Defense and force the company to turn over documents, also related to its marketing. Marin is listed as a speech pathologist clerk on the school’s website.

Marin’s filing late on Thursday is a petition that allows a party to begin investigating potential claims.

Gun manufacturers are generally shielded from lawsuits over criminal use of their firearms by a federal law called the Protection of Lawful Commerce in Arms Act, or PLCAA.

However, the Connecticut Supreme Court in 2019 ruled that gun company Remington Arms could be sued by families of Sandy Hook victims under a PLCAA exception because the gunmaker Remington allegedly violated state marketing laws.

(Reporting by Tom Hals in Wilmington, Delaware; Editing by Will Dunham and Noeleen Walder)

June 3, 2022 0 comments

Top Headlines US and World News

Ohio lawmakers advance trans sports ban with genital check

by Reuters June 3, 2022

By: Reuters

(Reuters) – Ohio’s House of Representatives passed a bill that would ban transgender girls from school sports and require verification from a doctor if a student’s sex is called into question.

The provision was a last-minute addition to an unrelated bill that passed in a marathon session late on Wednesday, the first day of Pride month. The bill next goes to a vote in the state Senate when it reconvenes in several months after a recess.

The Ohio House’s Republican majority took a similar step last year but that effort ultimately failed.

More than half a dozen states have passed or enacted similar provisions this year alone.

Unlike most of the others, the Ohio measure would require students whose sex is “disputed” to provide a physician’s statement verifying “internal and external reproductive anatomy” and other criteria.

Ohio schools that violate the proposed rules could face lawsuits.

These provisions target “a handful of Ohio students and their families who simply want to play sports like everyone else,” LGBTQ rights group Equality Ohio said in a statement.

The Ohio High School Association (OSHAA) has had a transgender policy in place for 10 years during which there have been “fewer than 20 transgender girls approved to play high school girls sports,” according Equality Ohio and OSHAA.

Conservative Republican proponents of such legislation argue it is necessary to give girls a level playing field in sports.

Democrats and other opponents say the laws are harmful, unnecessary and unjustly target an already marginalized, vulnerable group.

(Reporting by Maria Caspani, Editing by Donna Bryson and Cynthia Osterman)

June 3, 2022 0 comments

Financial News

Goodwin hires two private equity partners in DC, California

by Reuters June 3, 2022

By: Reuters

By Chinekwu Osakwe

(Reuters) – Goodwin Procter said Friday that it has hired two private equity partners for its Washington, D.C., and Santa Monica, California, offices.

Andrew Kimball joined the firm in the nation’s capital from Kirkland & Ellis. Andrew Cheng, who spent more than 18 years at Gibson Dunn & Crutcher, has joined in Southern California.

Cheng represents corporate borrowers, private equity sponsors and lenders for acquisition financings, royalty financings and special-situation financings, the firm said.

Kimball’s practice focuses on structuring and negotiating acquisitions and divestitures, minority investments, leveraged buyouts and financial restructurings, it said.

Kimball said a number of his private equity clients are focused on health tech and healthcare-adjacent industries. He said the firm’s technology and life sciences capabilities will help serve his clients’ long-term goals.

Boston-founded Goodwin, an 1,800-lawyer firm, expanded its private equity practice in April when it opened an 11-attorney office in Munich.

Representatives at Gibson Dunn and Kirkland & Ellis did not immediately respond to requests for comment Friday on their lawyers’ departures.

Goodwin courts European private equity work with new Munich office https://www.reuters.com/legal/legalindustry/goodwin-courts-european-private-equity-work-with-new-munich-office-2022-04-13

June 3, 2022 0 comments

Top Headlines US and World News

Families and survivors of recent U.S. mass shootings to testify before Congress

by Reuters June 3, 2022

By: Reuters

WASHINGTON -Relatives of victims killed in recent mass shootings in New York state and Texas as well as a fourth grader who survived last week’s attack will speak before two congressional panels next week as U.S. lawmakers weigh new measures to curb gun violence.

The mother of one of the 10 people killed at a supermarket in Buffalo, New York, will join the parents of one of the 19 children gunned down at a Uvalde, Texas, elementary school at the House of Representatives Oversight and Reform Committee’s hearing on June 8, the panel said on Friday. Miah Cerrillo, a fourth-grader at the school, will also appear.

Former Buffalo Fire Commissioner Garnell Whitfield, whose mother Ruth was killed in the Tops Friendly Markets attack, will also testify June 7 before a Senate Judiciary Committee hearing on domestic terrorism, that panel said in a separate statement.

The hearings come after the United States, which has a higher rate of gun deaths than any other wealthy nation, has seen a spate of horrific mass killings in recent weeks, including the largest mass school shooting in nearly 10 years.

Two teachers were also killed on May 24 at Robb Elementary School in Uvalde by an 18-year-old gunman who was fatally shot by law enforcement officers. Two weeks earlier, 10 Black people were killed in Buffalo by an 18-year-old avowed white supremacist who was subsequently arrested.

More shootings have occurred since then, including at a medical building at a Tulsa, Oklahoma, hospital and at an Iowa church this week.

Democratic President Joe Biden, in a prime-time televised address to the nation on Thursday, called for sweeping gun reforms and urged Congress to act.

Asked on Friday if he would visit Capitol Hill to press lawmakers, he told reporters that his staff was briefing him on their ongoing talks with members willing to discuss the issue, adding: “I’ll do what I can to try to see if we have some real progress.”

Next week, the Democratic-controlled House is expected to vote on a bill approved this week by the House Judiciary Committee that would raise the minimum age for purchasing semi-automatic weapons to 21 from 18. No Republicans on the panel voted for the measure, which would also outlaw high-capacity ammunition magazines for civilian use and crack down on gun trafficking and so-called straw weapons purchases.

Any legislation that passes the House would also have to pass the Senate, where it faces an uphill climb getting the required minimum 60 votes — at least 10 Republicans would have to join the 48 Democrats and two independents who narrowly control the upper chamber. Polls show most Americans support stronger gun laws.

(Reporting by Susan Heavey and Richard Cowan; additional reporting by Andrea Shalal and Jeff Mason; Editing by Katharine Jackson and Jonathan Oatis)

June 3, 2022 0 comments

Department of Justice Press Releases

District of Columbia Man Pleads Guilty to Felony Charge for Actions During Jan. 6 Capitol Breach

by DOJ Press June 3, 2022

By: DOJ Press

WASHINGTON – A District of Columbia man pleaded guilty today to a felony charge for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

Joshua Pruitt, 40, formerly of Washington, D.C., pleaded guilty in the District of Columbia to a charge of obstruction of an official proceeding. According to court documents, on Jan. 6, 2021, Pruitt attended a rally and met with members of the Proud Boys, a group that describes itself as a “pro-Western fraternal organization for men who refuse to apologize for creating the modern world; aka Western Chauvinists.” At approximately 12:30 p.m., he began marching from the area of the rally to the Capitol. At about 2:10 p.m., he was illegally on the restricted grounds of the Northwest Lawn. He was wearing a tactical glove with knuckle pads. He saw rioters push through a line of law enforcement officers and advance up the stairs to the Upper West Terrace. Pruitt followed them, using a piece of fencing as a makeshift ladder to climb on onto the stairs.

Pruitt advanced up the stairs and toward the Capitol building. He leapt over a railing before entering the Capitol through the Senate Wing Door at approximately 2:14 p.m. He threw a wooden sign, and he was one of the first rioters to enter the Crypt. After rioters breached the police line in the Crypt, Pruitt moved toward the Capitol Visitor’s Center. There, he picked up a chair and tossed it. He then continued in the direction of the Senate subway. Meanwhile, Senate Minority Leader Charles Schumer and his security detail – who had evacuated from the Senate Chamber — walked up a ramp toward the elevators in the northern part of the Visitor’s Center. A member of the security detail saw Pruitt approaching. As a result, Senator Schumer and his security detail reversed course, running away from the elevator and back down the ramp.

Pruitt climbed out a window to leave the building at approximately 2:52 p.m. He was arrested the night of Jan. 6 for violating a curfew in place in Washington, and federal charges were filed against him the next day.

He is to be sentenced on Aug. 26, 2022. He faces a statutory maximum of 20 years in prison and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section.

The case was investigated by the FBI’s Washington Field Office. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

In the 16 months since Jan. 6, 2021, more than 800 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 250 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

June 3, 2022 0 comments

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