MAN SENTENCED FOR ROLE IN ID THEFT AND TAX FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, January 15, 2016

District of Columbia Man Sentenced to 18 Months in Prison for Role in Massive Identity Theft and Tax Fraud Scheme

Worked With Others to Obtain More Than $315,000 in Fraudulent Refunds

A resident of the District of Columbia was sentenced today to 18 months in prison for his involvement in a far-reaching stolen identity refund fraud scheme in which he worked with others to obtain over $315,000 in income tax refunds through the filing of fraudulent federal income tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Special Agent in Charge Thomas Jankowski of the Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service, Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.

Ezekiel Raspberry, 39, is among approximately 16 participants in this scheme who have pleaded guilty to charges in the U.S. District Court for the District of Columbia.  According to court documents, the overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million.  Raspberry pleaded guilty on Nov. 10, 2015, to conspiracy to defraud the United States with respect to claims.  Following his prison term, Raspberry will be placed on three years of supervised release. During that time, he must perform 100 hours of community service.  In addition, U.S. District Judge Ellen S. Huvelle of the District of Columbia ordered Raspberry to pay $315,076 in restitution to the IRS.      

According to the government’s evidence, Raspberry participated in a massive and sophisticated stolen identity refund fraud scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance.  The refunds were sought for tax years 2005 through 2012, often in the names of people, whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners.  In other cases, the refunds were sent to people who were willing participants in the scheme.  The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.

According to documents filed with the court, from September 2008 through November 2010, Raspberry and others conspired to defraud the IRS of approximately $315,076 through the filing of 145 fraudulent federal income tax returns.  Raspberry received refund checks from a co-conspirator and deposited them into his bank account.  He would then withdraw the funds and provide them to the co-conspirator, keeping a portion of the proceeds for himself.

The refund checks were generated by filing false federal income tax returns that included Schedules C or C-EZ that falsely claimed that each “taxpayer” operated a business, such as “barber” or “childcare,” as a sole proprietorship.  The returns falsely stated that the “taxpayer” had gross receipts and two or more dependent children, when, in fact, the “taxpayer” was either a victim of identity theft, was misled into providing his or her identifying information, or was a willing participant in the scheme.  The businesses listed on the Schedules C and C-EZ were entirely fictitious.

In a related case this week, Rashida King, 41, of Savannah, Georgia, pleaded guilty on Jan. 14 to conspiracy to defraud the United States with respect to claims.  According to court documents, King deposited at least 33 fraudulently obtained U.S. Treasury checks into her back account.  A sentencing date has not yet been set.

In announcing the sentence, Acting Assistant Attorney General Ciraolo, U.S. Attorney Phillips, Special Agent in Charge Jankowski, Inspector in Charge Kelokates and Assistant Inspector General Phillips commended those who investigated the case.  They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialists Donna Galindo and Julie Dailey.  Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.

"WHITES ONLY" PRISON GANG MEMBER SENTENCED FOR ROLE RELATED TO REMOVAL OF GANG TATTOO

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, January 15, 2016

Universal Aryan Brotherhood Associate Sentenced for Violence Committed in Aid of Racketeering

An associate of the Universal Aryan Brotherhood (UAB) prison gang was sentenced to 57 months in prison today in federal court for violence committed in aid of racketeering, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.

Robert Allen Paul Bryan, 41, of Tulsa, Oklahoma, pleaded guilty on June 4, 2015, before U.S. District Judge Claire V. Eagan of the Northern District of Oklahoma.

In connection with his guilty plea, Bryan acknowledged his association with the UAB, a violent, “whites only” prison-based gang with members and associates operating inside and outside of state prisons throughout Oklahoma.  Bryan admitted that in May 2013, he and other UAB members, operating on orders from the UAB’s governing body, restrained a former UAB member while other gang members used a heated knife to burn off the victim’s UAB neck tattoo.

The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Tulsa Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Internal Revenue Service-Criminal Investigations Division; the FBI; the Tulsa County Sheriff’s Office and the Oklahoma Department of Corrections investigated the case.  Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Allen Litchfield and Jan Reincke of the Northern District of Oklahoma are prosecuting the case.

DEFENDANT IN CONSPIRACY TO KILL U.S. MILITARY MEMBERS, PLEADS GUILTY

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, January 19, 2016

Yemeni National Pleads Guilty to Conspiring to Kill U.S. Soldiers in Afghanistan

Defendant Received Military-Type Training from al-Qaeda and then Went to Afghanistan with the Taliban to Fight against U.S. Forces

Ali Alvi al-Hamidi, 31, a Yemeni national, pleaded guilty today to conspiring to murder U.S. nationals abroad, conspiring to provide material support to al-Qaeda and receiving military-type training from al-Qaeda.  The guilty plea took place before U.S. District Judge Nicholas G. Garaufis of the Eastern District of New York.  At sentencing, al-Hamidi faces a maximum of life imprisonment.

The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York and Assistant

Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office.

“Ali Alvi al-Hamidi went to the FATA to join al-Qaeda, received training from the terrorist organization, and later fought alongside the Taliban against coalition forces in Afghanistan,” said Assistant Attorney General Carlin.  “With this plea, he will be held accountable for his terrorist activity, including conspiring to kill members of our military.  The highest priority of the National Security Division is countering terrorist threats, and we will continue to use all tools available to bring justice to those who seek to harm American servicemen and women who bravely risk their lives in defense of our nation.”

“Today’s significant guilty plea demonstrates this office’s unwavering commitment to bring to justice those who fight against U.S. forces or assist al-Qaeda and others in their efforts to kill Americans at home or abroad,” said U.S. Attorney Capers.

“As we witnessed today, those who support designated foreign terrorist organizations like al Qaeda and seek to harm people will be held fully accountable under the law,” said Assistant Director in Charge Abbate.  “On a daily basis, the FBI and its partners face the challenge of an ever evolving threat environment.  Through our partnerships, both international and domestic, the FBI continues to track down those who aid and abet terrorist groups and ensure that they are brought to justice.”

In early 2008, al-Hamidi traveled to the Federally Administered Tribal Areas (FATA) of Pakistan to join al-Qaeda.  Once there, he received training from al-Qaeda in the use of weapons, explosives and detonators.  During late spring and summer of 2008, al-Hamidi moved on to Afghanistan with Taliban forces for the purpose of fighting members of the U.S. military and coalition forces stationed there.

The defendant also aided Bryant Neal Vinas, a U.S. citizen, in joining al-Qaeda.  Vinas traveled to Pakistan from Long Island, New York, hoping to join al-Qaeda and fight U.S. military forces in Afghanistan.  After participating in al-Qaeda’s military training program, Vinas and senior al-Qaeda external operations leadership devised a plan to conduct an attack on the Long Island Railroad in New York.  Vinas was arrested in 2008 before he could carry out this attack, and pleaded guilty in 2009 to conspiracy to murder U.S. nationals, providing material support to a foreign terrorist organization and receiving military-type training from a foreign terrorist organization.  Vinas is currently incarcerated pending sentence.

Assistant Attorney General Carlin joined U.S. Attorney Capers in extending his grateful appreciation to the FBI’s Washington Field Office.  The case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Michael P. Canty and Douglas M. Pravda of the Eastern District of New York, with assistance provided by Trial Attorney Josh Parecki of the National Security Division’s Counterterrorism Section.

BIODIESEL FUEL FRAUDSTER SENTENCED TO 20 YEARS IN PRISON

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, January 8, 2016

New Jersey Man Sentenced in Indiana to 20 Years for Biodiesel Fraud Scheme

Joseph Furando, 50, of Montvale, New Jersey, was sentenced yesterday in Indianapolis, Indiana, to 20 years in prison, three years of supervised release and to pay more than $56 million in restitution for his role in an elaborate scheme to defraud biodiesel buyers and United States taxpayers by fraudulently selling biodiesel incentives, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Josh J. Minkler for the Southern District of Indiana.

“Programs like the Renewable Fuel Standard and the Blender’s Tax Credit open the path toward energy independence and curbing the impact of climate change,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “When people approach these programs with bad faith and seek to exploit them, these purposes are blocked, American businesses are hurt and the treasury of the United States is depleted.  This significant prison sentence sends the right message that such fraud will not be tolerated.”

“Joseph Furando used fraud to spin biodiesel programs into a million-dollar home, high-end cars, expensive jewelry and watches and any other luxury that pleased him,” said U.S. Attorney Minkler.  “He did so through threats, bullying, and intimidation.  With the court’s sentence, all of that unraveled. The agencies and prosecutors who unraveled his schemes have shown how foolish it is to try to prey on these programs.”

“Fraud in the renewable fuels program compromises our ability to fight climate change and reduce dependence on foreign oil,” said Assistant Administrator Cynthia Giles for Enforcement and Compliance Assurance at EPA.  “Yesterday’s sentencing puts a check on illegal behavior and sends a clear message that EPA and its partners will prosecute serious offenders.  We are committed to upholding program integrity and protecting responsible companies that play by the rules.”

“We are proud to work with our federal partners to identify and investigate groups that manipulate and utilize federal government programs to line their pockets by fraud,” said Special Agent in Charge W. Jay Abbott of the Indianapolis Office of the FBI.  “In doing so, they deceive their customers, their shareholders and the American public.  The FBI will continue the fight against this dishonest and fraudulent behavior which harms the American people and the American economy.”

“Federal government tax credits and incentives are put in place to assist the American people,” said Acting Special Agent in Charge David Talcott of the IRS-Criminal Investigation.  “The harm is felt by all American taxpayers and our economy when individuals manipulate and take advantage of federal programs.  Mr. Furando perpetrated this egregious fraud for his own personal gain.  IRS-Criminal Investigation will continue to protect American taxpayers and our economy by vigorously pursuing individuals who prey upon the integrity of our great country.”

During yesterday’s sentencing hearing, Judge Sarah Evans Barker ordered Furando to pay more than $56 million in restitution, jointly and severally with other defendants.  That amount reflects the losses Furando and his co-conspirators imposed on fraud victims and United States taxpayers.

Under the terms of a plea agreement, Furando is obligated to forfeit the fruits of his crime, which include a Ferrari, other cars, a million-dollar home, artwork, a piano and two biodiesel powered motorcycles.

Furando’s scheme may be summarized as follows: From 2007 through 2012, Indiana-based E‑biofuels owned a biodiesel manufacturing plant in Middletown, Indiana.  Biodiesel is a fuel that can be used in diesel engines and that is made from renewable resources, including soybean oil and waste grease from restaurants.  Under the Energy Independence and Security Act, properly manufactured biodiesel was eligible for a dollar per gallon tax credit as well as another valuable credit, called a Renewable Identification Number (RIN) that petroleum refiners and importers could use to demonstrate compliance with federal renewable fuel obligations.  These incentives can be claimed once and only once for any given volume of biodiesel.

Furando admitted that sometime in late 2009, he and his companies, New Jersey-based defendants Caravan Trading Company and CIMA Green, began supplying E‑biofuels with biodiesel that was actually made by other companies and had already been used to claim tax credits and RINs.  Because these incentives had already been claimed, Furando could purchase the biodiesel at much lower prices, sometimes for more than two dollars per gallon less than biodiesel that was still eligible for the credits.  The conspiracy functioned as follows: Furando supplied the product to E‑biofuels and his co-conspirators would claim that E-biofuels made the fuel and then they would illegally re-certify the fuel and sell it at the much higher market price for incentivized biodiesel, known as B100 with RINs.  Within the circle of those he trusted, Furando referred to this fraud scheme as “Alchemy.”

Furando, his New Jersey-based companies and his Indiana-based co-defendants realized huge per gallon profits through this scheme, sometimes in excess of $15,000 per truckload.  Furando realized his profits through the prices he charged E‑biofuels.  Over the course of approximately two years, the defendants fraudulently sold more than 35 million gallons of fuel for a total cost of over $145.5 million.  The defendants realized more than $55 million in gross profits, at the expense of their customers and U.S. taxpayers.

In separate hearings yesterday, three corporations at the heart of the scheme were also sentenced for their joint liability in the scheme. Furando’s companies, CIMA Green LLC, and Caravan Trading LLC, were both sentenced to pay $56 million in restitution and million dollar fines. The companies, which are largely defunct, must serve two years’ probation to ensure that what assets remain are properly directed toward victims.  Toward that end, the court imposed, but suspended, the fines.  The third company, E‑biofuels LLC, operated by Furando’s co-defendants Craig Ducey, Chad Ducey and Chris Ducey, was also sentenced to pay the $56 million in restitution.  E-biofuels is in bankruptcy and its few remaining assets are being distributed to creditors and victims through the bankruptcy process.

The case is being prosecuted by Senior Litigation Counsel Steven D. DeBrota of the U.S. Attorney’s Office, Assistant Chief Thomas T. Ballantine of the Environmental Crimes Section in the Department of Justice’s Environment and Natural Resources Division and Jake Schmidt, a Special Assistant U.S. Attorney of the U.S. Attorney’s Office and Senior Attorney for the Securities and Exchange Commission.

The collaborative investigation that brought this case to fruition is the result of work by EPA’s Criminal Investigation Division, IRS-Criminal Investigation, the FBI and the Securities and Exchange Commission, with assistance during the investigation by the U.S. Secret Service and the U.S. Department of Agriculture’s Office of Inspector General-Investigations.

All of the other defendants in this case have pled guilty and are awaiting sentencing.  Another co-conspirator, Brian Carmichael, was charged in a separate case.  Carmichael cooperated with the government before the criminal cases were filed.  In December 2015, he received a sentence of five years of imprisonment.

MAN PLEADS GUILTY TO UNAUTHORIZED ACCESS TO HOUSTON ASTROS COMPUTERS

FROM:  U.S. JUSTICE DEPARTMENT

Friday, January 8, 2016

Former St. Louis Cardinals Official Pleads Guilty to Houston Astros Computer Intrusions

The former director of Baseball Development for the St. Louis Cardinals made an initial appearance in Houston federal court today on charges of accessing the Houston Astros’ computers without authorization, announced U.S. Attorney Kenneth Magidson of the Southern District of Texas and Special Agent in Charge Perrye K. Turner of the FBI Houston Division.  Later this afternoon, the former Cardinals official then entered a guilty plea to all counts as charged.

Christopher Correa, 35, of St. Louis, was charged in a criminal information with five counts of unauthorized access of a protected computer.  No other personnel associated with the Cardinals organization have been charged.

“We have secured an appropriate conviction in this case as a result of a very detailed, thorough and complete investigation,” said U.S. Attorney Magidson.  “Unauthorized computer intrusion is not to be taken lightly.  Whether it’s preserving the sanctity of America’s pastime or protecting trade secrets, those that unlawfully gain proprietary information by accessing computers without authorization must be held accountable for their illegal actions.”

From 2009 to July 2015, Correa was employed by the St. Louis Cardinals and became the director of Baseball Development in 2013.  In this role, he provided analytical support to all areas of the Cardinals’ baseball operations.  Correa is no longer employed by the Cardinals organization.

The Astros and the Cardinals, like many teams, measured and analyzed in-game activities to look for advantages that may not have been apparent to their competitors.  To assist their efforts, the Astros operated a private online database called Ground Control to house a wide variety of confidential data, including scouting reports, statistics and contract information.  The Astros also provided e-mail accounts to their employees.  Ground Control and Astros e‑mails could be accessed online via password-protected accounts.

As part of his plea agreement, Correa admitted that from March 2013 through at least March 2014, he illicitly accessed the Ground Control and/or e-mail accounts of others in order to gain access to Astros proprietary information.

“The theft of intellectual property by computer intrusion is a serious federal crime,” said Special Agent in Charge Turner.  “The Houston Cyber Task Force stands ready to identify, pursue and defeat cyber criminals who gain unauthorized access to proprietary data.  In each and every case, we will seek to hold those accountable to the fullest extent of the law.”

In one instance, Correa was able to obtain an Astros employee’s password because that employee has previously been employed by the Cardinals.  When he left the Cardinals organization, the employee had to turn over his Cardinals-owned laptop to Correa along with the laptop’s password.  Having that information, Correa was able to access the now-Astros employee’s Ground Control and e-mail accounts using a variation of the password he used while with the Cardinals.

The plea agreement details a selection of instances in which Correa unlawfully accessed the Astros’ computers.  For example, during 2013, he was able to access scout rankings of every player eligible for the draft.  He also viewed, among other things, an Astros weekly digest page which described the performance and injuries of prospects who the Astros were considering, and a regional scout’s estimates of prospects’ peak rise and the bonus he proposed be offered.  He also viewed the team’s scouting crosscheck page, which listed prospects who were seen by higher level scouts.  During the June 2013 amateur draft, Correa intruded into that account again and viewed information on players who had not yet been drafted as well as several players drafted by the Astros and other teams.

Correa later intruded into that account during the July 31, 2013, trade deadline and viewed notes of the Astros’ trade discussions with other teams.

Another set of intrusions occurred in March 2014.  The Astros reacted by implementing security precautions to include the actual Ground Control website address (URL) and required all users to change their passwords to more complex passwords.  The team also reset all Ground Control passwords to a more complex default password and quickly e‑mailed the new default password and the new URL to all Ground Control users.

Shortly thereafter, Correa illegally accessed the aforementioned person’s e‑mail account and found the e‑mails that contained Ground Control’s new URL and the newly-reset password for all users.  A few minutes later, Correa used this information to access another person’s Ground Control account without authorization.  There, he viewed a total of 118 webpages including lists ranking the players whom Astros scouts desired in the upcoming draft, summaries of scouting evaluations and summaries of college players identified by the Astros’ analytics department as top performers.

On two more occasions, he again illicitly accessed that account and viewed confidential information, such as projects the analytics department was researching, notes of the Astros’ trade discussions with other Major League Baseball teams and reports of players in the Astros’ system and their development.

The parties agreed that Correa masked his identity, his location and the type of device that he used, and that the total intended loss for all of the intrusions is approximately $1.7 million.

Each conviction of unauthorized access of a protected computer carries a maximum possible sentence of five years in federal prison and a possible $250,000 fine.

The charges and conviction are the result of an investigation conducted by the FBI.  Assistant U.S. Attorney Michael Chu of the Southern District of Texas is prosecuting the case.

BUSINESSMAN RECEIVES PRISON SENTENCE FOR TAX FRAUD

FROM:  U.S. JUSTICE DEPARTMENT

Thursday, January 7, 2016

Hawaii Businessman Sentenced to 46 Months in Prison for Tax Fraud

Diverted More than $2 Million from Company to Fund Lavish Lifestyle

A Honolulu County businessman was sentenced to prison yesterday for corruptly endeavoring to obstruct the Internal Revenue Service (IRS) and filing false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii.

Albert S.N. Hee, 61, of Kailua, Hawaii, was sentenced by Senior U.S. District Judge Susan Oki Mollway of the District of Hawaii to serve 46 months in prison, to be followed by one year of supervised release.  Hee was also ordered to pay a fine of $10,000 and  restitution to the IRS in the amount of $431,793.  In July following an 11-day jury trial, Hee was convicted of one count of corruptly endeavoring to obstruct the IRS and six counts of filing false individual income tax returns for the years 2007 to 2012.

According to court documents and the evidence introduced at trial, Hee owned Waimana Enterprises Inc., a telecommunications holding company based in Honolulu.  Between 2002 and 2012, Hee caused Waimana to pay more than $2 million of his personal expenses.  Hee then falsely characterized these personal expenditures as business expenses on Waimana’s corporate income tax returns.  Hee also filed false individual income tax returns for 2002 to 2012 on which he failed to report the expenditures as income.  Hee’s lavish spending included more than $90,000 for personal massages, which he deducted on the corporate tax returns as “consulting fees,” full-time salaries and benefits for his wife and children even though they performed little to no work for the company and more than $736,900 in college tuition, housing and other expenses for his children.

In 2008, Hee purchased a $1.3 million home in Santa Clara, California, with corporate money and told his accountants that the property would be used by Waimana employees.  Instead, from 2008 through 2012, Hee’s children lived in the home during and after they attended college in Santa Clara.  At trial, Hee’s children testified that they indeed lived at the home and did not pay any rent to Waimana for their use of the property.  Hee’s children also testified that the house was within walking and skateboarding distance of the college campus and that they rented out other rooms in the house to their college friends and collected rent from their roommates, which they kept rather than remit to Waimana.

Waimana financed Hee’s and his family’s trips to Disney World, Tahiti, France and Switzerland.  Hee also used company funds to pay for a $17,000, five-day family vacation at the Mauna Lani resort on the Big Island of Hawaii, which Hee falsely characterized as a “stockholder’s meeting” even though he was the only shareholder of the company at that time.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Nakakuni commended the special agents of IRS-Criminal Investigation, who investigated the case, Assistant U.S. Attorney Larry Tong and Trial Attorney Quinn P. Harrington of the Tax Division, who prosecuted the case.

OPERATION KINGDOM CONQUEROR NETS 21 CONVICTIONS FOR CRIMES RELATED TO CHILD PORNOGRAPHY

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, January 7, 2016

International Operation Concludes in Montana; Convicts 21 Defendants of Child Pornography-Related Crimes

An international operation that led to the conviction of 21 defendants for child pornography-related crimes concluded today in the District of Montana.  These defendants were involved in the sexual exploitation of children via two international online bulletin boards where members advertised, distributed, viewed and received images depicting child sexual exploitation.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Michael W. Cotter of the District of Montana, Special Agent in Charge Eric Barnhart of the FBI’s Salt Lake City Division, Special Agent in Charge David A. Thompson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Denver Field Office and Division Administrator Bryan Lockerby of the Montana Division of Criminal Investigation made the announcement.

Operation Kingdom Conqueror began in 2011 when FBI agents and officers from the Internet Crimes Against Children Task Force (ICACTF) received a tip that ultimately led to the discovery of Kingdom of Future Dreams (KOFD), an online bulletin board operated by Paul Wencewicz, 49, of Polson, Montana, that members used to advertise and trade sexually explicit images of young girls.  Between November 2009 and March 2012, Wencewicz and other members of the bulletin board sexually exploited hundreds of girls, both domestically and internationally, by trading images and videos of them.

The KOFD bulletin board was housed on a server in the Isle of Jersey.  Through cooperation with local police and British authorities, the United States obtained the boards’ data, allowing U.S. federal agents to identify 13 defendants in the United States in addition to Wencewicz and conduct searches in New Jersey, Maryland, Missouri, Indiana, Virginia, Washington, Massachusetts, Kentucky, Arizona, Texas and California.  This investigation revealed that eight of the 14 KOFD defendants were also members of a second child exploitation bulletin board called the Dark Moon, which involved a highly complex encryption scheme.  After gaining access to the board in April 2013, agents identified additional members.

Today, the final defendant, Shawnston Beaudoin, 31, of Kennesaw, Georgia, was sentenced to 210 months in prison and lifetime supervised release.  Beaudoin pleaded guilty to conspiracy to advertise child pornography on Sept. 30, 2015.  In connection with his plea, Beaudoin admitted that he became an active member of Dark Moon in October 2012 and remained an advanced member of the board until April 2013.  During that time, he posted hyperlinks and preview images of child exploitation to the advanced member section of the board.  Beaudoin also requested child pornography from other members and responded to and commented on other members’ postings.  Chief U.S. District Court Judge Dana Christensen of the District of Montana presided over the sentencing.

“The predators on these illicit websites glorified the sexual assault of little girls and encouraged each other to share images of this terrible abuse,” said Assistant Attorney General Caldwell.  “For the victim children, this trauma lasts the rest of their lives.  Thanks to the great partnership among federal, state and local law enforcement, these criminals will be punished for their vile crimes and prevented from harming other children.”

“This collaboration of federal and state law enforcement agencies demonstrates the power of the ICACTF and the concerted strength we can bring to bear against these types of child predators when we combine forces,” said U.S. Attorney Cotter.  “These operations succeeded in bringing to justice a group of dangerous and sadistic individuals, some of whom had committed prior sex offenses against children.  As a result of the operations, one threat against Montana’s children—and children everywhere—has been dismantled.  We will continue this successful collaboration and our efforts to protect our children and our communities into the future.”

The FBI, ICE-HSI, the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the Montana Department of Criminal Investigations, the Helena, Montana, Police Department and Montana ICACTF investigated the case.  CEOS Trial Attorney Maureen C. Cain and Assistant U.S. Attorney Cyndee L. Peterson of the District of Montana prosecuted the case.  The Criminal Division’s Office of International Affairs also provided assistance.

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.

MS-13 GANG MEMBER PLEADS GUILTY TO CONSPIRACY INVOLVING MURDER OF GANG MEMBERS AND WITNESSES

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, January 6, 2016

MS-13 Member Admits Plan to Kill Rival Gang Members and Witnesses

A Plainfield, New Jersey, man pleaded guilty today to one count of conspiring to engage in a racketeering enterprise known as La Mara Salvatrucha, or MS-13.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Paul J. Fishman of the District of New Jersey and Acting Special Agent in Charge Richard M. Frankel of the FBI’s Newark, New Jersey, Division made the announcement.

Julio Adalberto Orellana-Carranza, aka Player, 27, pleaded guilty before U.S. District Judge Stanley R. Chesler of the District of New Jersey, who scheduled sentencing for May 4, 2016.  Orellana-Carranza remains detained pending sentencing.

According to court documents, MS-13 is a national and international gang with branches or “cliques” operating throughout the United States, including in Plainfield.  In connection with his plea, Orellana-Carranza admitted that he was a member of the Plainfield Locos Salvatrucha (PLS) Clique of MS-13 for a period of time continuing through at least August 2011.  Orellana-Carranza admitted that in June 2011, he and other members of the PLS clique plotted to kill rival gang members in Plainfield.  Orellana-Carranza also admitted that after local authorities arrested him for that plot, he and other jailed MS-13 members hatched a plan to intimidate and/or kill individuals they believed were cooperating with law enforcement in the prosecution of MS-13 members.                

Eleven other members and associates of the PLS Clique are scheduled for trial in front of Judge Chesler on Feb. 9, 2016.  The charges include several counts of murder, conspiracy to commit murder, robbery, extortion, witness retaliation and sexual assault.

Co-defendant Jose Romero-Aguirre, aka Conejo, pleaded guilty on Dec. 2, 2015.

FBI’s Newark Division, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations’s Newark Field Office, ICE-Enforcement and Removal Operations, the Plainfield Police Department and the Union County, New Jersey, Prosecutor’s Office investigated the case.  Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys James Donnelly and Jamari Buxton of the District of New Jersey are prosecuting this case.

U.S. CITIZEN PLEADS GUILTY TO USE WMD AGAINST U.S. BASE IN AFGHANISTAN

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, January 6, 2016

American Citizen Charged with Conspiring to Murder U.S. Nationals and Conspiring to Use a Weapon of Mass Destruction in Attack Against U.S. Military Base in Afghanistan

Defendant Allegedly Responsible for a Vehicle-Borne Improvised Explosive Device Attack against U.S. Military Base in Afghanistan in January 2009

A superseding indictment was obtained today in federal court in the Eastern District of New York, adding charges against Muhanad Mahmoud Al Farekh, 30, an American citizen, for conspiracy to murder U.S. nationals, use of explosives, conspiracy to use a weapon of mass destruction and conspiracy to bomb a government facility.  These new charges arise out of Farekh’s participation in an attack on a U.S. military base in Afghanistan in January 2009.  As set forth in the superseding indictment and in other publicly available information, Farekh assisted in the preparation of a vehicle-borne improvised explosive device (VBIED) for use in the attack.  On or about Jan. 19, 2009, two co-conspirators drove vehicles to the U.S. military base in Afghanistan.  The first co-conspirator detonated the VBIED in his vehicle during the attack on the military base.  The second co-conspirator drove a truck containing a second VBIED to the military base, but did not detonate that device.  Farekh’s fingerprints were subsequently recovered from packing tape on the VBIED that did not detonate.

The superseding indictment also charges that, between December 2006 and September 2009, Farekh provided, attempted to provide and conspired to provide material support to al-Qaeda.  The superseding indictment includes the charges from the original indictment, unsealed on May 28, 2015, that Farekh provided, attempted to provide and conspired to provide material support to terrorists.  The defendant is scheduled to be arraigned on the new charges on Jan. 7, 2016, at 12 p.m. EST at the U.S. District Court for the Eastern District of New York, before U.S. District Judge Brian M. Cogan of the Eastern District of New York.

The superseding indictment was announced today by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD).

“Muhanad Mahmoud Al Farekh is charged with conspiring to kill Americans overseas for his role in a VBIED attack on a U.S. military installation in Afghanistan,” said Assistant Attorney General Carlin.  “Counterterrorism is the highest priority of the National Security Division, and we will continue to use all tools available to bring to justice those who seek to harm American servicemen and women who bravely risk their lives in defense of our nation.”

“Farekh, a citizen of the United States, allegedly turned his back on our country and tried to kill U.S. soldiers in the course of executing their sworn duty to keep us safe,” said U.S. Attorney Capers.  “Today’s charges demonstrate that the patriotism and service of the members of our armed forces will never be forgotten and that we will make every effort to prosecute those who would harm our country and our armed forces to the full extent of the law.”

“This indictment demonstrates justice has no bounds and the United States government will seek to investigate and prosecute crimes against Americans, no matter where they take place,” said Assistant Director in Charge Rodriguez.  “The FBI stands alongside our military and law enforcement partners to hold criminals accountable for their actions.  Special thanks to the FBI agents and NYPD detectives on our JTTF, who have conducted a thorough global investigation.”

“This superseding indictment demonstrates the NYPD and FBI's commitment to arrest those who commit acts of terror--from Arthur Avenue to Afghanistan,” said Commissioner Bratton.  “This thwarted plot is strikingly familiar ‎to the attack that killed Detective Lemm last week in Afghanistan. We will continue working on every corner of the globe to arrest and charge those who attack our men and women in uniform.”

As alleged in other publicly-filed documents, in approximately 2007, Farekh and two co-conspirators departed Canada for Pakistan with the intention of fighting against American forces.  They did not inform their families of their plan before departing, but called a friend in Canada upon arrival to let him know that he should not expect to hear from them again because they intended to become martyrs.  One of Farekh’s co-conspirators – Ferid Imam – subsequently provided weapons and other military-type training at an al-Qaeda training camp in Pakistan in approximately September 2008, according to public testimony in previous EDNY criminal trials.  Among Imam’s trainees were three individuals – Najibullah Zazi, Zarein Ahmedzay and Adis Medunjanin – who intended to return to the United States to conduct a suicide attack on the New York City subway system.  Zazi and Ahmedzay pleaded guilty pursuant to cooperation agreements and have yet to be sentenced; Medunjanin was convicted after trial and sentenced to life in prison.  Ferid Imam has also been indicted for his role in the plot.

If convicted, the defendant faces a mandatory minimum sentence of seven years in prison and a maximum sentence of life imprisonment.  Any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.

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

Assistant Attorney General Carlin joined U.S. Attorney Capers in extending his grateful appreciation to the FBI’s Joint Terrorism Task Force.  The case is being prosecuted by Assistant U.S. Attorneys Zainab Ahmad, Richard M. Tucker and Douglas M. Pravda of the Eastern District of New York, with assistance provided by Trial Attorney Kiersten Korczynski of the National Security Division’s Counterterrorism Section.

FORMER U.S. OFFICIAL PLEADS GUILTY RELATED TO BRIBERY IN IRAQ

FROM:  U.S. JUSTICE DEPARTMENT 

Friday, January 8, 2016

Former Contracting Official Sentenced to 30 Months for Bribery in Relation to U.S. Government Contracts in Iraq

A former U.S. Department of Defense contracting official was sentenced today to 30 months in prison for his role in a bribery scheme involving U.S. government contracts in Iraq.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (CID) Major Procurement Fraud Unit, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Special Agent in Charge Darrell Gilliard of the Naval Criminal Investigative Service (NCIS) Washington, D.C., Field Office and the Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.

James Edward Addas, 55, of Stafford, Virginia, previously pleaded guilty to charges of bribery and tax evasion.  Senior U.S. District Judge Claude M. Hilton of the Eastern District of Virginia handed down Addas’ sentence today.    

According to admissions made in the plea agreement, in August 2004, Addas was a contracting official at the Iraq/Afghanistan Joint Contracting Command in the U.S. Embassy in Baghdad when the owner and CEO of a contracting company based in Jordan offered to pay him a total of $1 million in return for assistance in obtaining U.S. government contracts for major electrical construction projects and related services in Iraq.  The contractor made an initial cash payment of $50,000 in a paper sack, which was handed to Addas inside the “Green Zone” of the U.S. Embassy compound.  With Addas’ assistance, the contractor’s companies subsequently received at least 15 contracts, with a total value of more than $28 million awarded to the companies.  In addition to the initial payment, the contractor later sent funds to Addas via wire transfers that totaled more than $455,000 and paid for other items valued at more than $70,000.  Addas did not declare any of this income on his filed federal tax returns.  

Special Agents of CID, DCIS, NCIS, SIGAR and the Internal Revenue Service investigated the case.  Trial Attorney Wade Weems of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Uzo Asonye of the Eastern District of Virginia prosecuted the case.  

OWNER OF MEDICAL CLINICS RECEIVES 78 MONTH PRISON TERM FOR MEDICARE FRAUD

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, January 4, 2016

Owner of Three Los Angeles Clinics Sentenced to 78 Months in Prison for Medicare Fraud

The former owner and operator of three medical clinics located in Los Angeles was sentenced today to 78 months in prison for his role in a scheme that submitted more than $4.5 million in fraudulent claims to Medicare.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Division and Special Agent in Charge Chris Schrank of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Los Angeles Region made the announcement.

Hovik Simitian, 48, of Los Angeles, pleaded guilty to one count of conspiracy to commit health care fraud on Aug. 18, 2015, and was sentenced today by U.S. District Court Judge Beverly Reid O’Connell of the Central District of California, who also ordered Simitian to pay $1,668,559 in restitution to Medicare.

Simitian owned and operated Columbia Medical Group Inc., Life Care Medical Clinic and Safe Health Medical Clinic, three medical clinics in Los Angeles.  In connection with his guilty plea, Simitian admitted that from approximately February 2010 through June 2014, he and his co-conspirators paid illegal cash kickbacks to patient recruiters who brought Medicare beneficiaries to the clinics.  Simitian also admitted that he and his co-conspirators then billed Medicare for lab tests and other services that were not medically necessary or were not actually provided to the Medicare beneficiaries, which they supported with false documentation they created.  Simitian admitted that he submitted a total of $4,526,791 in false and fraudulent claims to Medicare and Medicare paid $1,668,559 on those claims.

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Central District of California.  Trial Attorneys Blanca Quintero and Alexander F. Porter of the Criminal Division’s Fraud Section are prosecuting the case.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

TWO PLEAD GUILTY TO RIGGING BIDS AT PUBLIC HOME FORECLOSURES IN GEORGIA

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, January 4, 2016

Two Georgia Real Estate Investors Plead Guilty to Rigging Bids at Public Home Foreclosure Auctions

The 11th and 12th Defendants Charged in Ongoing Investigation

Two Georgia real estate investors pleaded guilty today for their roles in bid-rigging and mail fraud conspiracies at public real estate foreclosure auctions in Georgia.  Paul Chen and Ira Eisenberg each admitted that they agreed not to bid against others at certain public real estate foreclosure auctions and that they conspired to defraud mortgage holders and homeowners using the mail system.

“These individuals unlawfully rigged home foreclosure auctions, and then used payoffs and private side auctions to divide among themselves money that should have gone to mortgage holders and homeowners,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division.  “Together with our FBI colleagues, the division will bring to justice unscrupulous investors who scheme to rob unsuspecting mortgage holders and homeowners.”

“Incidents of bid rigging at public real estate auctions continue to be an issue in Georgia and elsewhere in the United States, and the FBI would like to remind the public that such matters are violations of federal law,” said Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office.  “The FBI will continue to work with the U.S. Department of Justice’s Antitrust Division in identifying, investigating and prosecuting those individuals engaged in such activities.”

Chen admitted to participating in the conspiracy in Fulton County, Georgia, from as early as February 2009 until at least March 2010, and Eisenberg admitted to participating from as early as August 2009 until at least February 2011.  Additionally, Chen admitted to participating in the DeKalb County, Georgia, conspiracy from as early as November 2009 until at least September 2011.  According to documents filed with the court, the purpose of the conspiracies was to suppress and restrain competition and divert money to the conspirators that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties and, in some cases, the defaulting homeowner.

These charges have been filed as a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division, and the U.S. Attorney’s Office of the Northern District of Georgia, in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.

WOMAN PLEADS GUILTY IN SEX TRAFFICKING CASE INVOLVING MINOR

FROM:  U.S. JUSTICE DEPARTMENT

Tuesday, January 5, 2016

Louisiana Woman Pleads Guilty to Conspiring to Commit Sex Trafficking of a Minor

A Louisiana woman pleaded guilty today to conspiring to commit sex trafficking of a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana and Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Division.

Kellie M. Dominique, 37, of Baton Rouge, Louisiana, pleaded guilty before U.S. District Judge Shelly D. Dick of the Middle District of Louisiana.  The sentencing hearing will be set at a later date.

In connection with her plea, Dominique admitted that from June 2013 until September 2013, she conspired with others to promote the prostitution of a minor female out of Dominique’s home and other venues.  Dominique also admitted that under her direction, the minor female posted on Backpage.com classified advertisements for commercial sex acts in Louisiana and elsewhere.  Dominique further admitted that she introduced the minor female to illegal drugs and used such drugs with the minor female.  Dominique also admitted that she made false statements to government officials and corruptly influenced potential witnesses.  

The U.S. Attorney’s Office of the Middle District of Louisiana, the FBI’s New Orleans Division – Baton Rouge Resident Agency – Child Exploitation Task Force, the Louisiana Attorney General’s Office and the East Baton Rouge Sheriff’s Office are investigating the case with assistance from the Baton Rouge Police Department – Narcotics, the U.S. Marshals Fugitive Task Force and other law enforcement agencies.  Trial Attorney Reginald E. Jones of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jamie A. Flowers Jr. of the Middle District of Louisiana are prosecuting 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.

AUTO COMPANIES FACE ALLEGATIONS THAT THEY VIOLATED THE CLEAN AIR ACT

FROM:  U.S. JUSTICE DEPARTMENT 

Monday, January 4, 2016

United States Files Complaint Against Volkswagen, Audi and Porsche for Alleged Clean Air Act Violations

The Department of Justice, on behalf of the Environmental Protection Agency (EPA), today filed a civil complaint in federal court in Detroit, Michigan, against Volkswagen AG, Audi AG, Volkswagen Group of America Inc., Volkswagen Group of America Chattanooga Operations LLC, Porsche AG and Porsche Cars North America Inc. (collectively referred to as Volkswagen).  The complaint alleges that nearly 600,000 diesel engine vehicles had illegal defeat devices installed that impair their emission control systems and cause emissions to exceed EPA’s standards, resulting in harmful air pollution.  The complaint further alleges that Volkswagen violated the Clean Air Act by selling, introducing into commerce, or importing into the United States motor vehicles that are designed differently from what Volkswagen had stated in applications for certification to EPA and the California Air Resources Board (CARB).

“Car manufacturers that fail to properly certify their cars and that defeat emission control systems breach the public trust, endanger public health and disadvantage competitors,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “The United States will pursue all appropriate remedies against Volkswagen to redress the violations of our nation’s clean air laws alleged in the complaint.”

“With today’s filing, we take an important step to protect public health by seeking to hold Volkswagen accountable for any unlawful air pollution, setting us on a path to resolution,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance.  “So far, recall discussions with the company have not produced an acceptable way forward.  These discussions will continue in parallel with the federal court action.”

“Today’s complaint is the first stage in bringing Volkswagen to justice for failing to disclose the defeat device while seeking certification for its diesel vehicles from EPA’s Office of Transportation and Air Quality in Ann Arbor, Michigan,” said U.S. Attorney Barbara L. McQuade for the Eastern District of Michigan.  “The alleged misrepresentations allowed almost 600,000 diesel engines to emit excessive air pollution across the country, harming our health and cheating consumers.”

Consistent with EPA’s Notices of Violation, issued on Sept. 18, 2015, for 2.0 liter engines and Nov. 2, 2015 for certain 3.0 liter engines, the complaint alleges that the defeat devices cause emissions to exceed EPA’s standards during normal driving conditions.  The Clean Air Act requires vehicle manufacturers to certify to EPA that their products will meet applicable federal emission standards to control air pollution.  Motor vehicles equipped with illegal defeat devices cannot be certified.

The complaint alleges that Volkswagen equipped certain 2.0 liter vehicles with software that detects when the car is being tested for compliance with EPA emissions standards and turns on full emissions controls only during that testing process.  During normal driving situations the effectiveness of the emissions control devices is greatly reduced.  This results in cars that meet emissions standards in the laboratory and at the test site, but during normal on-road driving emit oxides of nitrogen (NOx) at levels up to 40 times the EPA compliance level.  In total, the complaint covers approximately 499,000 2.0 liter diesel vehicles sold in the United States since the 2009 model year.

The complaint further alleges that Volkswagen also equipped certain 3.0 liter vehicles with software that senses when the vehicle is undergoing federal emissions testing.  When the vehicle senses the test procedure, it operates in a “temperature conditioning” mode and meets emissions standards.  At all other times, including during normal vehicle operation, the vehicles operate in a “normal mode” that permits NOx emissions of up to nine times the federal standard.  In total, the complaint covers approximately 85,000 3.0 liter diesel vehicles sold in the United States since the 2009 model year.

NOx pollution contributes to harmful ground-level ozone and fine particulate matter.  These pollutants are linked with asthma and other serious respiratory illnesses.  Exposure to ozone and particulate matter is also associated with premature death due to respiratory-related or cardiovascular-related effects.  Children, the elderly and people with pre-existing respiratory disease are particularly at risk of health effects from exposure to these pollutants.  Recent studies indicate that the direct health effects of NOx are worse than previously understood, including respiratory problems, damage to lung tissue and premature death.

Today’s filing of a civil complaint under Sections 204 and 205 of the Clean Air Act seeks injunctive relief and the assessment of civil penalties.  A civil complaint does not preclude the government from seeking other legal remedies.  The United States will seek to transfer its case and fully participate in the pretrial proceedings now initiated in the related multi-district litigation in the Northern District of California.  The United States’ investigation is ongoing, in close coordination with CARB.  EPA and CARB have been in active discussion with Volkswagen about potential remedies and recalls to address the noncompliance, and those discussions are ongoing.

Affected 2.0 liter diesel models and model years include:

Jetta (2009-2015)
Jetta Sportwagen (2009-2014)
Beetle (2013-2015)
Beetle Convertible (2013-2015)
Audi A3 (2010-2015)
Golf (2010-2015)
Golf Sportwagen (2015)
Passat (2012-2015)
Affected 3.0 liter diesel models and model years include:

Volkswagen Touareg (2009-2016)
Porsche Cayenne (2013-2016)
Audi A6 Quattro (2014-2016)
Audi A7 Quattro (2014-2016)
Audi A8 (2014 – 2016)
Audi A8L (2014-2016)
Audi Q5 (2014-2016)
Audi Q7 (2009-2015)

MAN CHARGED AFTER ALLEGEDLY TRYING TO HELP ISIL

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, December 31, 2015

Rochester Man Charged with Attempting to Provide Material Support to ISIL

Emanuel L. Lutchman, 25, was arrested and charged by criminal complaint with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.  The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.

The announcement was made by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney William J. Hochul Jr. of the Western District of New York and Special Agent in Charge Adam S. Cohen of the Federal Investigation Bureau’s (FBI) Buffalo Division.

“According to the complaint, as part of Emanuel Lutchman’s attempt to provide material support to ISIL, he planned to kill innocent civilians on New Year’s Eve in the name of the terrorist organization.” said Assistant Attorney General Carlin.  “Thankfully, law enforcement was able to intervene and thwart Lutchman's deadly plans.”

“This New Year’s Eve prosecution underscores the threat of ISIL even in upstate New York but demonstrates our determination to immediately stop any who would cause harm in its name,” said U.S. Attorney Hochul.  “What began as an ISIL directive to harm the community ended with the arrest of this defendant and a message for any other individuals considering similar behavior - you will be caught, you will be prosecuted, and you will be punished.  While law enforcement is well equipped for such investigations, the public is reminded to remain vigilant and report any suspicious activity.  I assure members of the public that the excellent work of our law enforcement partners with the cooperation of the public is the best way to ensure the safety of our community.”

“The FBI thwarted Emanuel Lutchman’s intent to kill civilians on New Year's Eve,” said Special Agent in Charge Cohen.  “The FBI remains concerned about people overseas who use the Internet to inspire people in the United States to commit acts of violence where they live.”

According to court records, the defendant, claiming to receive direction from an overseas ISIL member, planned to commit an armed attack against civilians at a restaurant/bar located in the Rochester, New York, area today, New Year’s Eve on behalf of ISIL and in furtherance of his plan to join ISIL overseas.  

The defendant made an initial appearance this morning before U.S. Magistrate Judge Marian W. Payson of the U.S. Western District of New York.

The case is being investigated by the FBI’s Rochester Joint Terrorism Task Force (JTTF).  The case is being prosecuted by Assistant U.S. Attorney Brett A. Harvey with the assistance of Trial Attorney Lawrence Schneider of the National Security Division’s Counterterrorism Section.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.