Page 7144 – Shore News Network

Former Federal Official Sentenced To Prison For Contract Bribery Conspiracy And Tax Fraud

by DOJ Press April 11, 2022

By DOJ Press

LAS VEGAS – A former official with the U.S. Bureau of Reclamation (USBR) was sentenced today to two years and six months in prison for his role in a bribery scheme involving a federal contract and committing $1.5 million in tax fraud.

Frederick J. Leavitt, 50, of Henderson, Nev., pleaded guilty in October 2019 to one count of conspiracy to commit honest services fraud and one count of conspiracy to defraud the United States. In addition to imprisonment, U.S. District Judge Andrew P. Gordon ordered Leavitt to pay restitution in the amount of $704,002.

According to court documents, Leavitt had been employed by the USBR as Director of the Financial Management Office for the Lower Colorado Region, which includes the Hoover Dam. From about February 2015 through about February 2016, Leavitt and co-conspirator Dustin M. Lewis — a certified public accountant employed by L.L. Bradford & Company, an accounting firm in Las Vegas — devised and executed a scheme to defraud the United States. Leavitt had been assigned to a selection committee that awarded government contracts to perform auditing services for USBR programs. As part of the honest services fraud conspiracy, Lewis paid more than $150,000 in bribes to Leavitt, which they agreed to conceal. In exchange, Leavitt steered an audit contract to L.L. Bradford.

In a separate tax fraud conspiracy, Leavitt and Lewis worked together to file fraudulent tax forms for tax year 2013, on behalf of six business entities that claimed over $11,000,000 collectively in false business deductions. As a result, they caused a tax loss to the IRS in excess of $1.5 million.

Co-conspirator Lewis pleaded guilty in January 2020. He is scheduled to be sentenced on August 18, 2022.

Acting U.S. Attorney Christopher Chiou for the District of Nevada and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

This case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation, and the Office of Inspector General for the Department of Interior. Assistant U.S. Attorney Steven Myhre and Tax Division Trial Attorney Patrick Burns are prosecuting the case.

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April 11, 2022 0 comments

Japan’s wholesale inflation stays near record on Ukraine war, weak yen

by Reuters April 11, 2022

By Reuters

By Leika Kihara

TOKYO -Japan’s wholesale inflation remained near record-high levels in March as the Ukraine crisis and a weak yen pushed up fuel and raw material costs, data showed on Tuesday, adding strains to the resource-poor economy heavily reliant on imports.

While rising wholesale prices will help accelerate consumer inflation toward the central bank’s elusive 2% target, it could hurt an economy still reeling from the coronavirus pandemic, analysts say.

The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 9.5% in March from a year earlier, data showed.

That followed a revised 9.7% spike in February, which was the fastest pace on record, and exceeded a median market forecast for a 9.3% gain. The March index, at 112.0, was the highest level since December 1982, the Bank of Japan (BOJ) said.

“With raw material costs rising so much, companies won’t be able to make money unless they raise prices. The days of discount war are over,” said Takeshi Minami, chief economist at Norinchukin Research Institute.

“Core consumer inflation may accelerate to around 2.5% later this year and stay above 2% for longer than initially expected, weighing on consumption and the economy,” he said.

The yen-based import price index jumped 33.4% in March from a year earlier, the data showed, a sign the yen’s recent declines are inflating the cost of imports for Japanese firms.

Japanese companies have been slow in passing on rising costs to households as soft wage growth weighed on consumption, keeping consumer inflation well below the BOJ’s 2% target.

But analysts expect core consumer inflation to accelerate around 2% from April due to surging fuel costs and the dissipating effect of past cellphone fee cuts.

The rising inflationary pressure heightens the chance the BOJ will revise up its inflation forecast at its next quarterly review due April 28, analysts say. The bank’s current forecast is for core consumer inflation to hit 1.1% in the year that began in April.

(Reporting by Leika Kihara; Editing by Sam Holmes)

April 11, 2022 0 comments

BoK to pause in April but rates to go up every quarter – Reuters poll

by Reuters April 11, 2022

By Reuters

By Shaloo Shrivastava

BENGALURU – The Bank of Korea is likely to stand pat at its meeting this week as its committee awaits the appointment of a new governor, but it will embrace a steeper rate hike path ahead to tame more than decade-high inflation, a Reuters poll showed.

While the U.S. Federal Reserve has now begun a tightening cycle and the European Central Bank is not expected to raise rates until later this year, South Korea’s central bank has been quick to address high inflation and ballooning household debt.

The BoK has raised its base rate by 75 basis points since August, taking it to 1.25%, making it the first major Asian central bank to normalize policy from pandemic-induced lows.

Russia’s invasion of Ukraine has exacerbated inflationary pressures. March inflation showed prices rose 4.1% from a year earlier, staying above the BoK’s target of 2% for the 12th straight month and increasing the chances of another rate hike.

But the latest survey of 29 economists, taken April 4-11, suggested the BoK will hold its policy rate at 1.25% on April 14 on growth concerns and its own lack of a governor.

“Above all, the meeting is set to take place without a governor, as the parliamentary hearing for nominee Chang-Yong Rhee is to be held on April 19,” said Oh Suktae, an economist at Societe Generale.

“But concerns on growth have also increased due to the war in Ukraine, the Fed’s hawkish stance, and the ongoing Omicron wave. A significant slowdown in household debt growth may also result in a wait-and-see stance.”

South Korea’s central bank senior deputy governor Lee Seung-heon said last week the April policy review meeting will be tricky, citing the twin challenges of dealing with higher inflationary risks and downward pressure on growth.

Yet almost 38%, or 11 of 29 economists, expected a 25 basis point hike at the upcoming meeting.

“Despite increasing growth uncertainties, we think the economic risks from rising inflation and financial imbalances will sway the BOK to continue with its rate hike cycle,” said Lloyd Chan, senior economist at Oxford Economics, who expects a hike.

The poll medians also showed the BoK following a steeper rate hiking path to control unruly inflation. Interest rates are now expected at 2.0% by year-end, a level which a February poll only forecast them to reach by the end of 2023.

Inflation forecasts were significantly upgraded in the current poll to 3.8%, 3.5% and 2.9% for the second, third and fourth quarters of the year, from 2.5%, 2.1% and 1.5% estimated in a January survey.

Inflation was predicted to average 3.3% and 2.0% for 2022 and 2023, a sharp rise from 2.0% and 1.6% in the last poll.

“Inflation is likely to stay elevated at least in the near term, after the rally in global energy prices,” noted Sanjay Mathur, chief economist, Southeast Asia & India at ANZ.

“While producers have started to pass through the higher costs of inputs to consumers, the still large gap between PPI and CPI point to persistent price pressures in the pipeline.”

The South Korean economy was forecast to expand 2.8% in 2022, down from 2.9% estimated in the January poll. However, the growth forecast for next year increased to 2.6% from 2.5%.

(Reporting by Shaloo Shrivastava; Polling by Devayani Sathyan and Arsh Mogre; Editing by Hugh Lawson)

April 11, 2022 0 comments

Some banks stop credit for oil imports by Rosneft-owned India refiner Nayara -sources

by Reuters April 11, 2022

By Reuters

By Nidhi Verma, Nupur Anand and Chris Thomas

NEW DELHI/MUMBAI/BANGALORE -India’s HDFC Bank and some foreign banks have stopped offering trade credit for oil imports to Nayara Energy, a Russian-backed refiner, and some suppliers are seeking payment upfront to avoid potential problems resulting from western sanctions against Moscow, four banking and industry sources said.

Nayara has not been sanctioned as part of the international response to Russia’s invasion of Ukraine, but Russian energy giant Rosneft, which owns 49% of the Indian refiner, has been.

To avoid the need for credit to fund overseas trade, the Mumbai-headquartered company is selling more of its refined fuels in India, two of the sources said.

All of the sources declined to be named because they are not authorised to speak to the media.

Nayara did not respond to a request for comment. Rosneft did not immediately respond to a request for comment.

Nayara imports crude oil worth about $1 billion every month on average for its 400,000 barrels per day Vadinar refinery in India’s Gujarat state, the two sources told Reuters.

India’s HDFC Bank and international banks such as Citibank, JP Morgan, Deutsche Bank and Japan’s Mitsubishi UFJ Financial Group have stopped opening and confirming Letters of Credit (LCs), which are a standard form of payment guarantee in the oil trade, for Nayara, four sources said.

Citigroup, JP Morgan, Deutsche Bank and Mitsubishi UFJ declined to comment on Monday, while HDFC did not respond to requests for comment.

Kesani Enterprises Co Ltd, a consortium led by Trafigura Group and Russia’s UCP Investment Group, is the other major stakeholder in Nayara, also with a 49.13% stake.

Kesani has pledged all of its shares in Nayara to Russian bank VTB, from which it took a loan to fund its acquisition of the Indian refiner in 2017, a fundraising document Nayara issued in August last year showed.

VTB has also been sanctioned.

The two sources said Nayara has this month boosted local sales of its refined fuels, taking a hit on its revenue as pump prices in India are below overseas rates.

Previously Nayara had raised its fuel exports to earn more from robust overseas margins. State-refiners that dominate Indian fuel retailing have not yet passed on the spike in oil prices to customers to help the government tackle inflation.

Nayara has to keep its fuel sale price close to the state-refiners’ rates just to be able to sell its products in local markets, the sources added.

Russia’s invasion of Ukraine, which Moscow describes as a “special operation”, has prompted financial sanctions from the United States, Europe and Britain.

While New Delhi has called for an immediate ceasefire in Ukraine, it has refused to explicitly condemn Moscow’s actions. India has also abstained from voting on multiple United Nations resolutions on the invasion.

“Since these LCs are routed via overseas banks in the countries that have placed the sanction, we don’t want to take the chance of spoiling our working relationships, so in some cases we end up taking a more cautious approach,” an executive director at an Indian state-owned bank said.

This source said his bank has stopped issuing LCs for transactions that have links to Russia.

India’s CARE Ratings has already placed the long-term ratings of Nayara on ‘credit watch with negative implications’ due to sanctions against Moscow.

“One may make an exception for state-run companies where there is complete government backing, but in the case of private companies it is not worth taking the risk,” a senior executive at another private lender said.

(Reporting by Nidhi Verma; Editing by Alexander Smith)

April 11, 2022 0 comments

Australia business conditions surge in March, inflation runs hot

by Reuters April 11, 2022

By Reuters

By Wayne Cole

SYDNEY – A measure of Australian business conditions picked up sharply in March as firms saw strong sales and labour conditions, while surging costs pushed retail prices higher in a worrying sign for inflation.

Tuesday’s survey from National Australia Bank (NAB) showed its index of business conditions doubled to +18 in March, while confidence added 3 points to +16.

The upbeat result will likely be welcomed by Prime Minister Scott Morrison, who is in the middle of a tough election campaign.

The survey’s measure of sales jumped 13 points to +24, while profitability rose 8 points to +13. The employment index added 4 points to +12, suggesting the jobless rate will soon drop under 4% for the first time since the early 1970s.

“The improvement was largely driven by the retail sector, which saw conditions rise 23 points, as well as recreation & personal services and finance, business & property,” said NAB chief economist Alan Oster.

“Confidence jumped in the transport, construction, and recreation & personal services sectors.”

Measures of forward orders and business investment also picked up, suggesting the recovery would continue.

Inflation remained a headache with purchase costs and labour costs rising at the fastest pace in the history of the survey, which in turn pushed up retail prices.

“The continued escalation in price growth over recent months suggests a strong Q1 CPI reading is likely when released later in the month,” said Oster.

Analysts have been warning the March quarter consumer price index would likely surprise on the high side and put pressure on the Reserve Bank of Australia (RBA) to start raising interest rates as early as June.

A separate survey of consumers from ANZ out Tuesday showed its sentiment index picked up 1.3% last week as petrol prices cooled just a little, though it remains below average.

Inflation expectations stayed high at 5.8%, reflecting cost of living pressures from petrol, food and housing.

All that price froth has yet to deter shoppers with CBA’s measure of household spending intentions jumping 9.2% in March to a record high, led by travel, transport and retail.

The strength in spending, combined with a 13-year low for unemployment, suggests the economy overall put in a solid performance in the first quarter.

(Reporting by Wayne Cole; Editing by Shri Navaratnam)

April 11, 2022 0 comments

Funds sell oil as economic weakness trumps sanctions: Kemp

by Reuters April 11, 2022

By Reuters

By John Kemp

LONDON -Portfolio investors sold petroleum last week as a slowing economy in China and Europe and a massive release of strategic stocks by the United States outweighed concerns about the disruption of exports from Russia.

Hedge funds and other money managers sold the equivalent of 11 million barrels in the six most important petroleum-related futures and options contracts in the week to April 5.

Funds have been sellers in four of the last five weeks reducing their overall net long position by the equivalent of 188 million barrels since the start of March, according to exchange and regulatory records.

The most recent week saw light sales of Brent (-4 million barrels), NYMEX and ICE WTI (-3 million), U.S. gasoline (-2 million) and European gas oil (-4 million) with small buying in U.S. diesel (+1 million).

Bullish long positions were reduced by 8 million barrels while the number of bearish short positions was increased by 4 million barrels (https://tmsnrt.rs/3xjwVae).

Fund managers have maintained an overall bullish bias, with long positions outnumbering shorts by a ratio of 4.64:1, in the 59th percentile for all weeks since the start of 2013.

But positioning overall has become more cautious with a combined net long position of 542 million barrels (36th percentile) down from 761 million (80th percentile) in mid-January.

The total number of option futures positions held by hedge funds and other traders has fallen for seven consecutive weeks by a total of 1,142 million barrels (18%).

Increased uncertainty, heightened volatility and sharply raised margin requirements have made it much more expensive and risky to hold existing positions or initiate new ones.

On the supply side, the risk of a disruption to Russian crude and products exports has been offset for now by the promise of a massive release of 240 million barrels from strategic stocks held by the United States and its allies.

On the demand side, there are increasing downside risks from the worsening coronavirus outbreak in Shanghai and other parts of China and evidence of a business cycle slowdown in North America and Europe.

As a result, the hedge fund community has become mildly bearish about the outlook for crude while there is still slightly more bullishness about middle distillates such as diesel, jet fuel and European gas oil.

Even in middle distillates, funds have been sellers in eight of the last nine weeks, reducing their net position by a total of 72 million barrels (50%).

For most money managers, the projected petroleum production-consumption balance has become less tight as the economy struggles, while shortages of diesel and jet fuel are expected to hold crack spreads a little firmer.

Related columns:

– Hedge funds struggle with triple uncertainties on oil (Reuters, April 4)

– White House uses oil reserve to place a giant spread trade (Reuters, April 1)

– China’s cooling economy takes some heat out of commodity prices (Reuters, March 31)

– Hedge fund oil positions caught between risks from sanctions and recession (Reuters, March 29)

John Kemp is a Reuters market analyst. The views expressed are his own

(Editing by David Evans)

April 11, 2022 0 comments

Elon Musk drops Twitter board seat in new U-turn

by Reuters April 11, 2022

By Reuters

By Abinaya V and Nivedita Balu

(Reuters) -Tesla Inc Chief Executive Elon Musk disclosed on Monday he had abandoned a plan to join Twitter Inc’s board just as his tenure was about to start, the latest move by the world’s richest man that defied corporate America’s norms.

Musk revealed last week he had accepted a board seat at Twitter, contradicting a regulatory filing he had published a day earlier in which he described himself as a passive investor.

Sources told Reuters at the time that Musk asked Twitter for a board seat weeks before the social media company agreed to the arrangement.

Musk and Twitter did not disclose the reason for the u-turn. Musk said in a regulatory filing on Monday he could now increase his 9.1% stake in Twitter or push the company to pursue transactions, even though he has no such plans at this time.

There was no sign that Twitter was worried that a hostile bid from Musk was imminent. In announcing the development, Twitter disclosed no shareholder rights plan, known as a “poison pill,” that would force dilution if Musk tried to raise his stake above a certain threshold.

However, Twitter Chief Executive Parag Agrawal warned Twitter employees in a tweet on Sunday of “distractions ahead,” a possible reference to Musk’s criticism of the company through tweets. He added that he believed Musk’s withdrawal was “for the best.”

A Twitter spokesperson did not respond to a request for comment.

Twitter shares were up 2.6% at $47.48 in afternoon trading in New York on Monday. They are up more than 20% since Musk disclosed his stake in Twitter on April 4. Wall Street analysts say Musk’s involvement attracted legions of retail investors to the stock.

Securities experts have pointed out that by delaying and mischaracterizing the disclosure of his stake in Twitter, Musk bought the shares more cheaply, saving himself $143 million by one estimate. It is unclear whether this would be a consideration for Musk, whose net worth is pegged by Forbes at $274 billion.

Musk could not be reached for comment.

Musk deleted on Monday many of the tweets he posted over the weekend about the social media platform. It was not clear what prompted the move. The tweets ranged from a call to remove advertising on Twitter to dropping the letter “w” in the social media company’s name.

Jacob Frenkel, a former enforcement attorney at the U.S. Securities and Exchange Commission (SEC), said Musk’s reversal was unconventional but did not appear to violate any rules.

“Merely being extended an offer to join the offer to board, contemplating doing so and deciding not to is not a violation of securities laws,” said Frenkel.

A spokesperson for the SEC declined to comment.

Other experts pointed out that Musk’s public criticism of Twitter would have been difficult to reconcile with his fiduciary duties as a board director.

“Once on the board, most people, including activist shareholders, traditionally don’t talk publicly,” said Gregory Taxin, managing director of activist investor advisory firm Spotlight Advisors.

‘FUNDING SECURED’

It is not the first time that Musk performed a high-profile U-turn. In 2018, he tweeted that there was “funding secured” for a $72-billion deal to take Tesla private, but did not move ahead with an offer.

He and Tesla each paid $20 million civil fines, and Musk stepped down as Tesla’s chairman to resolve SEC claims that Musk defrauded investors. Musk has since challenged an agreement he entered into with the SEC for some of his tweets to be vetted by a lawyer.

Securities experts have also questioned Musk’s compliance with his arrangement with the SEC. In early November, Musk posted on Twitter that he would offload 10% of his Tesla stake if users approved. A majority did, and the poll sent Tesla shares into a slump. Musk has since sold $16.4 billion of Tesla stock.

News of Musk taking a board seat last week had some Twitter employees panicking over the future of the social media company’s ability to moderate content, company sources told Reuters.

Charles Elson, founding director at the Weinberg Center for Corporate Governance, said Tesla, an electric car marker, and SpaceX, a space rocket developer, were already keeping Musk very busy, and he would have had little time to contribute to Twitter meaningfully as a board director.

“The shareholders of Tesla should be quite concerned about his involvement here because it simply takes time and energy away from his primary venture,” Elson said.

A Tesla spokesperson did not respond to a request for comment.

(Reporting by Abinaya Vijayaraghavan, Nivedita Balu and Juby Babu in BengaluruAdditional reporting by Chris Prentice in Washington, D.C, Svea Herbst-Bayliss in Boston and Hyunjoo Jin in San FranciscoEditing by Greg Roumeliotis and Nick Zieminski)

April 11, 2022 0 comments

Ukraine says tens of thousands killed in Mariupol, accuses Russia of abuses

by Reuters April 11, 2022

By Reuters

By Pavel Polityuk

KYIV – Ukraine on Monday said tens of thousands of people have likely been killed in Russia’s assault on the southeastern city of Mariupol while the country’s rights ombudswoman accused Russian forces in the region of torture and executions.

Reuters has confirmed widespread destruction in Mariupol but could not verify the alleged crimes or the estimate of those killed in the strategic city, which lies between Russian-annexed Crimea and eastern areas of Ukraine held by Russian-backed separatists.

“Mariupol has been destroyed, there are tens of thousands of dead, but even despite this, the Russians are not stopping their offensive,” President Volodymyr Zelenskiy said in a video address to South Korean lawmakers without providing more details.

If confirmed, it would be by far the largest number of dead so far reported in one place in Ukraine, where cities, towns and villages have come under relentless bombardment and bodies, including civilians, have been seen in the streets.

The head of the Russia-backed self-proclaimed Donetsk People’s Republic, Denis Pushilin, told Russia’s RIA news agency on Monday that more than 5,000 people may have been killed in Mariupol. He said Ukrainian forces were responsible.

The numbers of people leaving the city had fallen because Russian forces had slowed pre-departure checks, Petro Andryushchenko, an aide to the mayor of Mariupol, said on Monday on the Telegram messaging service.

Around 10,000 people were awaiting screening by Russian forces, he said. Russia does not allow military personnel to leave with civilian evacuees. There was no immediate comment from Moscow, which has previously blamed Ukraine for blocking evacuations.

Citing figures from Mariupol’s city administration, Ukraine’s human rights ombudswoman Lyudmyla Denisova said 33,000 residents of Mariupol had been deported to Russia or territories held by Russian-backed separatists in eastern Ukraine. Russia said on Sunday it had “evacuated” 723,000 people from Ukraine since the start of what it called its “special operation.” Moscow denies attacking civilians.

“Witnesses report that Russian national guard troops and ‘Kadyrovite’ (Chechen) units are making illegal arrests, torturing detainees and executing them for any pro-Ukrainian stance,” in Mariupol, Denisova said in a post on Telegram.

The Russian government did not immediately respond to a request for comment on the torture allegations.

Ukrainian Interior Ministry Adviser Anton Geraschenko said in a televised interview on Monday that Ukrainian “deportees” were kept in guarded sanatoria and holiday camps.

“These people are not allowed to move around freely, or to have free access to communication platforms in order to contact their relatives in Ukraine,” he said, without citing direct evidence.

Ukraine’s Deputy Prime Minister Iryna Vereshchuk told Reuters that the number of checkpoints along the Russian-controlled corridor between Mariupol to the Ukrainian city of Zaporizhzhia had grown from three to 15.

Mariupol was among nine humanitarian corridors agreed with Russia on Monday to evacuate people from besieged eastern regions, but its corridor was for private cars only, Vereshchuk said on Telegram.

It was not possible to agree the provision of buses, she said.

Ukraine says Russian forces are massing for a new offensive on eastern areas, including Mariupol, where people have been without water, food and energy supplies for weeks.

(Additional reporting by Max Hunder and Elizabeth Piper; writing by Conor Humphries; editing by Philippa Fletcher, William Maclean and Grant McCool)

April 11, 2022 0 comments

Chevron, union meet as California refinery strike enters third week -official

by Reuters April 11, 2022

By Reuters

By Erwin Seba

HOUSTON – Chevron Corp and the United Steelworkers union (USW) met on Monday to seek an end to a three-week-old strike by 500 workers at the company’s Richmond, California, refinery, a union official said.

B.K. White, first vice president of USW Local 12-5, said the union had received a proposal from the company and was preparing a reply.

Chevron spokesperson Tyler Kruzich did not reply to a request for comment.

Monday’s meeting is the first face-to-face discussion between the two sides in two weeks.

Chevron has continued operating the 245,271-barrel-per-day (bpd) with managers and supervisors but has begun advertising for temporary replacement workers in ads placed online.

The ads list pay of $70 an hour for the temporary replacement workers who will be hired for up to five months, according to the advertisements.

“Our personnel working onsite are being compensated appropriately for their time and expertise,” Kruzich said prior to the meeting between the two sides.

The national average pay for a union refinery worker after four years is about $45 an hour, the USW has said.

“They are throwing money at the scabs trying to break our union,” White said.

Retirees, former employees and recent graduate of process operations programs are among those usually recruited to be temporary replacement workers.

The strike began after the Local 12-5 twice rejected contract offers from Chevron.

(Reporting by Erwin Seba; Editing by Sandra Maler)

April 11, 2022 0 comments

Biden cracks down on ‘ghost guns’ with new rule to tackle gun violence

by Reuters April 11, 2022

By Reuters

By Steve Holland and Nandita Bose

WASHINGTON -President Joe Biden unveiled a new rule to rein in so-called ghost guns and ban the manufacturing of the untraceable firearms on Monday as the administration faces growing pressure to crack down on gun deaths and violent crime in the United States.

Ghost guns are privately made firearms that are not marked with a serial number and are difficult for law enforcement to trace when used to commit a crime.

The Department of Justice’s final rule has been making its way through the federal regulation process for nearly a year and is likely to draw opposition and litigation from gun advocates in the coming weeks.

“These guns are weapons of choice for many criminals,” Biden said during an event in the White House Rose Garden. “We’re going to do everything we can to deprive them of that choice.”

The rule would make it illegal for businesses to manufacture such kits without a serial number and for a licensed gun dealer to sell them without a background check, Biden said.

The rule is part of a series of measures announced by Biden and the Justice Department in April last year to tackle growing gun violence in the United States and curb mass shootings.

In 2021, there were about 20,000 suspected ghost guns reported to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) as having been recovered by law enforcement in criminal investigations – a tenfold increase from 2016, according to statistics shared by the White House.

The Justice Department rule bans unserialized “buy build shoot” kits that individuals can buy online or at a store without a background check and can readily assemble into a working firearm in as little as 30 minutes with equipment they have at home. It also turns some ghost guns already in circulation into serialized firearms.

Gun deaths increased in 2021 over 2020, according to the nonprofit Gun Violence Archive.

In 2021 there were 20,726 gun deaths in the United States, not counting suicides by gun, the group reported. This included 693 mass shootings, defined by four or more people being shot, and claimed 702 lives and injured more than 2,800 people, the group reported.

Biden also nominated Steve Dettelbach, a former U.S. attorney from Ohio, to run ATF.

(Reporting by Steve Holland and Nandita Bose; Additional reporting by Rich McKay and Jeff Mason; Editing by Stephen Coates and Sandra Maler)

April 11, 2022 0 comments

Anger mounts along Texas-Mexico border over long delays to commercial crossings

by Reuters April 11, 2022

By Reuters

By Lizbeth Diaz and Jose Luis Gonzalez

CIUDAD JUAREZ, Mexico – Mexican truck drivers blockaded two busy bridges at the border with United States on Monday amid rising tensions on both sides over an order by Texas Governor Greg Abbott that has slowed commercial crossings between Mexico and Texas.

“We’re desperate because we have to wait up to 15 hours to cross into the United States,” said truck driver Pedro Gonzalez as he and others protested at the Zaragoza bridge connecting Ciudad Juarez to El Paso.

Abbott ordered the state’s Department of Public Safety (DPS) last week to conduct “enhanced safety inspections” of vehicles as they cross from Mexico into Texas in order to uncover smuggling of people and contraband.

The inspections were part of a broader effort to deter illegal immigration, Abbott said.

However the order has infuriated industry groups and threatened to alienate even some of Abbott’s allies.

“We are supporters of Governor Abbott, but unfortunately we weren’t taken into consideration,” said Ernesto Gaytan, chairman of Texas Trucking Association, who said he’d been fielding calls from frustrated drivers since the order took effect.

Gaytan said migrants rarely tried to cross the border illegally via commercial trucks at legal ports of entry.

“Slowing down trade isn’t the solution.”

A Texas DPS spokesperson said that since Abbott’s order was issued, the agency had inspected nearly 2,400 commercial vehicles and taken 552 vehicles out of service for “serious safety violations” such as defective brakes, tires and lighting.

The spokesperson declined to say whether the effort had uncovered any smuggling attempts.

A second bridge, connecting the Mexican city of Reynosa to Pharr, Texas, was also blockaded by truck drivers.

Dante Galeazzi, president of the Texas International Produce Association, said the delays at the Pharr bridge alone had, since Friday, prevented an estimated $30 million of fresh produce from reaching the U.S. side.

“There are very likely to be store shelves devoid of fresh produce items this Easter holiday weekend,” he said, warning that prices would rise for consumers if the delays continued.

(Reporting by Jose Luis Gonzalez in Ciudad Juarez and Lizbeth Diaz in Mexico City, additional reporting by Ted Hesson in Washington D.C. and Laura Gottesdiener in Monterrey; Editing by Sam Holmes)

April 11, 2022 0 comments

Pennsylvania Man Sentenced to 32 Years for Kidnapping and Sexual Assault

by DOJ Press April 11, 2022

By DOJ Press

ASHLAND, Ky. — A Parkersburg, Penn., man, Nathan Thomas Welch, 53, was sentenced on Monday, to 384 months in federal prison, by U.S. District Judge David Bunning, after previously being convicted of kidnapping and sexual assault.

According to testimony at his trial, on July 10, 2020 (and the early hours of July 11, 2020), Welch and Charles Glorioso, 53, of Portsmouth, Ohio, kidnapped a woman at knifepoint. The victim was driving the two men, in her vehicle, from Portsmouth, into Greenup County, Kentucky. There, the victim testified, both men physically and sexually assaulted her, until she was allowed to leave, when she traveled back across the river on foot. The incident was reported to police and she was transported to the hospital, for treatment of multiple injuries sustained during the assault. Later, where the assault took place in Greenup County, officers located the victim’s abandoned vehicle, her belt, shoe, and sandal, as well as the knife used during the kidnapping, all in or near the vehicle.

Welch was convicted by a federal jury in December 2021. Glorioso was convicted by a federal jury, in March 2022, and is scheduled to be sentenced in June 2022.

Under federal law, Welch must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigation (FBI), Louisville Field Office; Col. Phillip Burnett, Jr., Commissioner of the Kentucky State Police; and Chief Debby Brewer, Portsmouth Police Department, jointly announced the sentence.

The investigation was conducted by FBI, KSP, the Portsmouth Police Department, and the Ohio Bureau of Investigation. The United States was represented in the case by Assistant U.S. Attorney Francisco Villalobos.

– END –

April 11, 2022 0 comments

Long Haul Truck Driver Sentenced for Transporting Children to Engage in Sexual Activity

by DOJ Press April 11, 2022

By DOJ Press

EL PASO – Today an El Paso man was sentenced to life in prison for sexual exploitation of a minor.

According to court documents, Travis Wayne Vavra, 60, was a long-haul truck driver who advertised free amusement park passes and cross-country trips for boys to explore the United States. As a result of the advertisement, Vavra transported a minor in his tractor trailer from the El Paso, Texas area to different states, including New Mexico, Missouri, Arizona, California, Wisconsin, Illinois, Nebraska, Maryland, Oklahoma, and Louisiana from May 2015 to June 2019. Vavra sexually assaulted the minor during these cross-country trips that began when the victim was nine years old. Vavra had also previously molested two other victims. On the date of his arrest, Vavra posted another flyer for parents and boys advertising these free cross-country trips. Vavra was found to be in possession of child sexual abuse material on his phone at the time of his arrest.

On June 29, 2021, a federal jury found Vavra guilty of one count of transportation of minors with intent to engage in criminal sexual activity and one count of possession of a visual depiction involving the sexual exploitation of a minor. Vavra has remained in federal custody since his arrest on December 6, 2019.

“Our office is committed to vigorously prosecuting cases against individuals who prey upon the most vulnerable among us – children,” said U.S. Attorney Ashley C. Hoff. “We, along with our law enforcement partners, strive to protect our communities from these sexual predators and bring justice to victims of these heinous crimes so that they can begin the healing process.”

“From suspicious flyers posted in store windows to reports of sexual abuse, the investigation involving Vavra showed how concerned citizens came together to stop a predator from destroying the innocence of additional young boys and assist in providing closure to the victims of his previous sexual assaults,” said Jeffrey R. Downey, FBI El Paso Special Agent in Charge. “We cannot protect our community alone. The FBI is thankful to those citizens who came forward to voice their suspicions. The FBI along with our partners assigned to the El Paso Crimes Against Children and Human Trafficking task force remain committed to the most vulnerable members of El Paso, the children.”

The FBI investigated the case.

Assistant U.S. Attorneys Sarah Valenzuela and Richard Watts prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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 www.justice.gov/psc.

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April 11, 2022 0 comments

Folsom Man Pleads Guilty to Scheme Involving the Sale of Stolen MacBooks

by DOJ Press April 11, 2022

By DOJ Press

SACRAMENTO, Calif. — Philip James, 35, of Folsom, pleaded guilty today to transporting stolen property interstate, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from October 2015 through June 2020, James purchased almost 1,000 stolen Apple MacBooks from multiple individuals, including Cory Beck, Eric Castaneda, and Jonas Jarut. After purchasing the MacBooks, James generally resold and shipped them from Folsom to buyers located outside California.

Beck worked in the information technology department at an electric vehicle and clean energy company based in Palo Alto, “Company 1.” Beginning in October 2015, Beck stole new MacBooks from Company 1 and sold them to James. In total, James purchased at least 100 MacBooks that Beck stole from Company 1.

Eric Castaneda’s sister, Patricia Castaneda, worked in the School of Humanities and Sciences at a private university in Stanford, California, “University 1.” Beginning in February 2016, Patricia Castaneda stole new MacBooks from University 1 and gave them to Eric Castaneda to sell to James. In total, James purchased from Eric Castaneda at least 800 MacBooks that Patricia Castaneda stole from University 1.

Jarut worked as a database administrator in the Graduate School of Education at a public university in Berkeley, “University 2.” Beginning in March 2019, Jarut stole new MacBooks from University 2 and sold them to James. In total, James purchased at least 90 MacBooks Jarut stole from University 2.

As part of his plea agreement, James agreed to pay restitution as follows: $2,283,155 to University 1; $256,485 to Company 1; and $209,057 to University 2.

This case is a product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.

Chief U.S. District Judge Kimberly J. Mueller is scheduled to sentence James on July 25, 2022. Jarut faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

In separate cases, Eric Castaneda, Patricia Castaneda, Beck, and Jarut pleaded guilty for their roles in the scheme.

April 11, 2022 0 comments

DOJ and Skagit County health clinic resolve False Claims Act investigation over the use of imported birth control medications

by DOJ Press April 11, 2022

By DOJ Press

Seattle – The U.S. Department of Justice today reached a settlement with Skagit Family Health Clinic of Mount Vernon, Washington, over the importation of birth control medications that were unlawfully imported from a foreign source and not approved by the Food and Drug Administration (FDA). Under the terms of the settlement, the clinic will pay a total of $120,000 to the state and federal governments for false claims the clinic filed with state or federal medical programs.

“FDA approval is a critical way for government medical programs to ensure patients get appropriate medicines and devices,” said U.S. Attorney Nick Brown. “We don’t have evidence that any patients were harmed from these unapproved medications, but government programs cannot pay for clients to take such a risk.”

The prelitigation settlement, claims the clinic imported and billed for the medications between 2015 and 2020. The clinic submitted claims for the birth control medications to the Washington State Medicaid Program. Of the $120,000 settlement paid by the clinic, nearly $72,000 will go to Washington State, while just over $48,000 will to the federal government for its share of the medical costs.

DOJ settled the matter on behalf of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), the Washington State Attorney General’s Office and the Washington State Health Care Authority.

April 11, 2022 0 comments

Butte woman admits stealing more than $600,000 from victim under her guardianship

by DOJ Press April 11, 2022

By DOJ Press

MISSOULA — A Butte woman accused of embezzling more than $600,000 from a woman who was under her guardianship and using the money to buy a house on Canyon Ferry, a vehicle and other items admitted to fraud charges today, U.S. Attorney Leif M. Johnson said.

Debra Gean Roeber, 66, pleaded guilty to wire fraud and to money laundering as charged in an information during an initial appearance hearing. Roeber faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud count.

U.S. Magistrate Judge Kathleen L. DeSoto presided. A sentencing date was set for Aug. 10 before U.S. District Judge Dana L. Christensen. The court will determine a sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Roeber was released pending further proceedings.

The government alleged in court documents that Roeber was a guardian and had power of attorney for the victim, identified as Jane Doe, who was unable to care for herself or her financial needs without assistance because she was blind. Roeber served as a fiduciary for Jane Doe. From about January 2017 until June 2020, Roeber allegedly embezzled approximately $681,549 from Jane Doe. Bank records showed that Roeber used Jane Doe’s money to purchase a home and shop on Canyon Ferry, construction costs, vehicles, furniture and a pontoon boat, none of which was authorized. When interviewed by agents, Roeber admitted she took advantage of Jane Doe “a lot,” including lying to the victim about her finances, and that she stole from Jane Doe. Jane Doe is now deceased.

Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case, which was investigated by the FBI and IRS Criminal Investigation.

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April 11, 2022 0 comments

San Antonio Man Convicted of Firearm Violations

by DOJ Press April 11, 2022

By DOJ Press

SAN ANTONIO – Today U.S. District Court Judge Fred Biery found Chance Anthony Uptmore, 25, of San Antonio, guilty of one count of being an unlawful user of a controlled substance in possession of a firearm in violation of Title 18, United States Code, Section 922(g)(3).

According to court documents and evidence presented at trial, on January 18, 2021, law enforcement officers executed a search warrant at Uptmore’s residence for his involvement in the January 6th Capitol Riots in Washington D.C. During a search of the Defendant’s residence, he was found to be in possession of a loaded Taurus .38 Special Revolver along with more than 13 pounds in gross weight of marijuana; approximately 1.8 pounds in gross weight of Tetrahydrocannabinol (THC) edible products; approximately 1.2 pounds in gross weight of THC waxes, dabs and oils; and approximately one-third of a pound in gross weight of Psilocin mushrooms.

According to testimony from law enforcement officers at trial along with Uptmore’s own video recorded statements, Uptmore described himself as a “weedaholic” who smoked marijuana, by his own estimation, multiple times per day. Uptmore admitted to officers that at the time of his arrest in January 2021, there had not “been a day where [Uptmore] had not gotten high all day in at least six months, maybe even a year.” At the conclusion of trial, the Court concluded that Uptmore was both an unlawful user of and addicted to controlled substances at the time he possessed the loaded revolver.

Uptmore is scheduled for sentencing on July 26, 2022 and faces up to 10 years in prison.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Acting Special Agent in Charge Jason Hudson made the announcement.

The FBI’s San Antonio Joint Terrorist Task Force (JTTF) is investigating the case, with the assistance of U.S. Immigration and Customs Enforcement – Enforcement and Removal Operations (ICE-ERO) and San Antonio Police Department.

Assistant U.S. Attorneys Matthew W. Kinskey and Mark T. Roomberg are prosecuting the case.

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April 11, 2022 0 comments

Great Falls meth trafficker sentenced to 54 months in prison

by DOJ Press April 11, 2022

By DOJ Press

GREAT FALLS – A Great Falls woman who admitted to working with others to bring approximately seven pounds of methamphetamine from Las Vegas, Nevada, back to Montana for distribution was sentenced today to 54 months in prison, to be followed by four years of supervised release, said U.S. Attorney Leif M. Johnson said.

Ashley Nicole Rico, 34, pleaded guilty in October 2021 to conspiracy to distribute methamphetamine.

Chief U.S. District Judge Brian M. Morris presided.

The government alleged in court documents that Rico pooled money with co-defendants and traveled with them to Las Vegas, Nevada, to buy meth. Rico waited while co-defendants went to the source and purchased the meth and then traveled back to Montana with them. Law enforcement intervened before Rico received her portion of the meth. Law enforcement seized approximately seven pounds of meth. Officers ultimately stopped a vehicle being driven by co-defendant Lillian Lapier and found about 3.6 pounds of meth in the trunk. Law enforcement also executed a search warrant on the Helena residence of co-defendant, Rhonda Lapier, and located three, one-pound bags of meth and $6,132 in a bedroom. Officers stopped another suspect vehicle, driven by Rico, who was arrested on a state warrant. Rico admitted to distributing meth in Great Falls and that she and others had traveled to Las Vegas, picked up meth there and had contributed $1,000 to the deal. Seven pounds of meth is the equivalent of approximately 25,368 doses.

Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the Russell Country Drug Task Force, the Missouri River Drug Task Force, FBI, Great Falls Police Department, Cascade County Sheriff’s Office and Lewis & Clark County Sheriff’s Office.

This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.

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April 11, 2022 0 comments

Khan lawmakers quit en masse as Pakistan parliament elects Sharif PM

by Reuters April 11, 2022

By Reuters

By Asif Shahzad and Gibran Naiyyar Peshimam

ISLAMABAD -More than 100 lawmakers loyal to Pakistan’s ousted prime minister Imran Khan resigned on Monday, creating a headache for the new, Western-friendly incumbent Shehbaz Sharif as he tries to drag his country out of political and economic crisis.

Parliament’s election of Sharif, 70, as prime minister on Monday followed a week-long constitutional crisis that reached a climax on Sunday when Khan, 69, lost a no-confidence vote in parliament.

His departure from power sparked street protests and a mass resignation of MPs from Khan’s Pakistan Tehreek-e-Insaf party in protest at the impending change of government.

If the resignations are accepted by the speaker, Pakistan faces a prospect of more than 100 by-elections within two months, a major distraction for Sharif and his coalition partners and a potential platform for Khan to mobilise his support.

That in turn could ensure the nuclear-armed nation of 220 million people remains prone to political and economic turbulence.

Sharif has a reputation domestically as an effective administrator more than as a politician. He is the younger brother of three-time prime minister Nawaz Sharif. [L2N2W70HM]

Analysts say Shehbaz, unlike Nawaz, enjoys amicable relations with Pakistan’s military, which traditionally controls foreign and defence policy.

After Monday’s vote, Sharif vowed to tackle an economic malaise that has seen the rupee hit an all-time low and the central bank implement the biggest hike in interest rates in decades last week.

“If we have to save the sinking boat, what we all need is hard work, and unity, unity and unity,” he told parliament.

“We are beginning a new era of development today.”

He took the oath of office at Pakistan’s presidential residence late on Monday at a ceremony packed with lawmakers and leaders from the combined opposition.

RESET TIES

The younger Sharif emerged as the leader of a united opposition to topple Khan, a former cricket star who has claimed that the United States was behind his downfall, an assertion that Washington denies.

Sharif said in an interview last week good relations with the United States were critical for Pakistan for better or for worse, in stark contrast to Khan’s prickly ties to Washington.

In his maiden speech, he also spoke of improving relations with neighbours India and China.

“We want good relations with India but a durable peace can’t be possible without Kashmir’s solution,” he said, referring to the contested Himalayan territory the countries have fought several wars over.

He said his government will speed up construction of the $60 billion China-Pakistan Economic Corridor (CPEC) – a part of Beijing’s Belt and Road Initiative.

MILITARY FALLOUT

No elected prime minister has completed a full term in Pakistan since it won independence from colonial power Great Britain in 1947, though Khan is the first to be removed by a no-confidence vote.

The military has ruled the country for almost half its nearly 75-year history. It viewed Khan and his conservative agenda favourably when he won election in 2018.

That support waned after a falling-out over the appointment of a military intelligence chief and economic troubles.

Khan remained defiant following his defeat in parliament.

Thousands of his supporters in several cities held protests against his ousting that went on until Monday’s early hours.

Nawaz Sharif was barred by the Supreme Court in 2017 from holding public office and subsequently went abroad for medical treatment after serving just a few months of a 10-year jail sentence for corruption charges.

“There can’t be any bigger insult to this country,” Khan, ousted in the early hours of Sunday, told reporters on Monday on the prospect of Shehbaz Sharif being elected.

(Reporting by Asif Shahzad, Syed Raza Hassan and Gibran Naiyyar Peshimam in Islamabad; Additional reporting by Jibran Ahmad in Peshawar and Gul Yousafzai in Quetta; Writing by Alasdair Pal; Editing by Simon Cameron-Moore, William Maclean and Howard Goller)

April 11, 2022 0 comments