Category: MIL-OSI

Source: United States Department of Justice Criminal Division

ABINGDON, Va. – Three individuals from West Virginia, who allegedly conspired with numerous others to possess with the intent to distribute and distribute large quantities of methamphetamine in the Western District of Virginia, were arrested last week on federal drug charges.

Terry Headen, Charles “Chuck” Williams, and Taylor Headen, all of Welch, West Virginia, were arrested last week on a criminal complaint.

Six of their coconspirators were arrested earlier this year: Stephen Stewart, of Appalachia, Virginia; Eric Mullins, of Appalachia, Virginia; Gerald McCoy, of Coeburn, Virginia; Danny Dearry, of Coeburn, Virginia; Lisa Poole, of Big Stone Gap, Virginia; and Jonathan Lake, of Artemus, Kentucky.  

Mullins, McCoy, Poole, and Lake have all pleaded guilty to conspiring to possess with the intent to distribute and distribute 500 grams or more of methamphetamine.  Mullins further pleaded guilty to conspiracy to possess with the intent to distribute fentanyl, as well as an additional methamphetamine charge.  In July, a federal grand jury in this district indicted Stewart on twelve counts involving methamphetamine, fentanyl, and firearms, related to this conspiracy.

According to court documents, Stewart, Mullins, McCoy, Poole, Lake, Dearry, and others traveled—or caused others to travel—from the Western District of Virginia to West Virginia to obtain pounds of methamphetamine, supplied by Terry Headen, Chuck Williams, and Taylor Headen, for redistribution in the Western District of Virginia. At times, fentanyl was also supplied for distribution.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, Wise County Sheriff’s Office, the Southwest Virginia Drug Task Force, and the West Virginia Southern Regional Drug and Violent Crimes Task Force are investigating the case.

Assistant U.S. Attorneys Carrie Macon and Corey Hall are prosecuting the case.

An indictment and criminal complaint are merely an accusation. The defendants who have not pleaded guilty are presumed innocent until proven guilty.

Source: United States Department of Justice Criminal Division

The Justice Department’s U.S. Trustee Program (USTP) recently obtained a judgment against a nationwide consumer bankruptcy law firm imposing more than $392,000 in penalties and a three-year suspension based on the firm’s false and misleading disclosures in more than 200 bankruptcy cases.

On Sept. 17, the U.S. Bankruptcy Court for the Eastern District of Michigan entered summary judgment against Recovery Law Group APC (RLG). The court found that RLG intentionally violated provisions of the Bankruptcy Code and Bankruptcy Rules governing disclosure of attorney compensation and the practices of debt relief agencies. The court credited the USTP’s evidence of 220 cases filed in the district since 2020 in which RLG was responsible for untrue or misleading disclosures about its involvement or its fee-sharing arrangements with the attorneys it contracted with to represent its debtor clients.

Based on the fees RLG collected for 217 of those cases, the court imposed a civil penalty of $392,471. Additionally, the court suspended RLG from soliciting or filing bankruptcy cases in the Eastern District of Michigan for three years.

“Transparency and robust disclosure are essential in bankruptcy,” said Acting Director Ramona D. Elliott of the Executive Office for U.S. Trustees. “Professionals threaten the integrity of the system when they are opaque about their payment arrangements, misrepresent their services, and fail to help their vulnerable clients.”

The USTP’s enforcement action stemmed from a case involving a senior couple who contacted RLG seeking help with responding to collection efforts on a judgment against them. After the couple paid a fee of $1,835 to retain RLG, the firm assigned one of its Michigan-based attorneys, Sheena Majors, to file a chapter 7 bankruptcy petition for the couple. The mandatory form for disclosure of compensation and fee-sharing arrangements did not mention RLG, among other mistakes and misrepresentations. 

Because of a litany of failures by RLG and Majors, the couple eventually lost their home and a substantial share of their home equity. RLG’s involvement came to light only when it was revealed by the couple during a hearing — which Majors failed to attend — in an unsuccessful effort to save the home. The couple and the chapter 7 trustee administering their bankruptcy case have a pending lawsuit against RLG, Majors, and two related defendants. The court has already found the defendants liable for malpractice, with damages still to be determined.

The USTP also prevailed in a separate enforcement action against RLG earlier this year. In April, the Bankruptcy Court for the Eastern District of Virginia entered an order holding RLG and one of its affiliated attorneys, Thomas Watson, in contempt for providing deficient legal services and violating court orders. The court required the firm to pay $48,000 in sanctions and refund four chapter 7 debtors’ fees; suspended RLG from practicing in that district for two years; and disbarred Watson from practicing in the district.

The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public. The USTP consists of 21 regions with 88 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.

Source: United States Department of Justice Criminal Division

KANSAS CITY, Mo. – A Kansas City, Mo., woman was sentenced in federal court today for her leadership role in two cases that resulted in more than $500,000 in fraudulent Paycheck Protection Program (PPP) loans being issued under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and more than $3,000,000 in stolen Treasury checks.

Briauna Adams, 29, was sentenced by U.S. District Judge Greg Kays to 11 years imprisonment based upon her guilty pleas to wire fraud, money laundering, and theft of government funds relating to a counterfeit check scheme and stolen United States Treasury checks.  The defendant also pleaded guilty to conspiracy to commit wire fraud, aggravated identity theft, and money laundering relating to a scheme to fraudulently obtain Paycheck Protection Plan (PPP) loans, guaranteed by the SBA under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

According to court documents, Adams rented a townhome in Raymore, Mo., using the name and personal identification information of another person. On July 27, 2024, Adams opened an individual investment account from the Raymore residence.  On Aug. 15, 2024, Adams deposited a Treasury check worth $1,445,443.69 in her name to the investment account. Fraud investigators with the investment account company determined the $1,445,443.69 Treasury check was fraudulent and reversed the deposit before suffering a financial loss.

On Nov. 14, 2024, a search warrant was executed on Adam’s rental townhome in Raymore.  Approximately 253 stolen Treasury checks were found in the residence.  The total value of the checks was approximately $700,000.

Finally, Adams conspired with others to prepare and file fraudulent PPP loan applications on their behalf.  Adams filed false PPP loan applications for numerous persons resulting in a loss of approximately $540,302, which she was ordered to pay back in a restitution judgment.

This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation and the Kansas City, Missouri, Police Department.

Source: United States Department of Justice Criminal Division

LOS ANGELES – In the first affirmative lawsuit in support of gun owners, the Justice Department today filed a lawsuit against the Los Angeles County Sheriff’s Department (LASD) alleging a pattern and practice of infringing the Second Amendment rights of law-abiding citizens seeking concealed carry weapons (CCW) permits.

The Justice Department’s Civil Rights Division on March 27, 2025, initiated the first-of-its-kind Second Amendment investigation because of numerous complaints of unreasonable delays in CCW permitting decisions by LASD. After analysis of data and documents spanning more than 8,000 CCW permits, the Division today filed suit seeking relief on behalf of law-abiding applicants.

“Citizens living in high-crime areas cannot afford to wait to protect themselves with firearms while Los Angeles County dithers,” said Acting United States Attorney Bill Essayli. “The right to bear arms is among the founding principles of our nation. It can and must be upheld.”

“The Second Amendment is not a second-class right,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This lawsuit seeks to stop Los Angeles County’s egregious pattern and practice of delaying law-abiding citizens from exercising their right to bear arms.”

Shortly after Assistant Attorney Harmeet K. Dhillon was sworn in to lead the Civil Rights Division, numerous complaints received by the Division revealed inexplicable delays well beyond California statutory requirements and in violation of the U.S. Supreme Court’s interpretation of the Second Amendment rights of law-abiding citizens.

Almost two months after receiving notice of the Division’s investigation, LASD provided data and documents that revealed only two approvals from more than 8,000 applications, and that LASD set out interviews to approve licenses as far as two years after receiving the completed application. The lawsuit was filed in United States District Court for the Central District of California.

This investigation was conducted by attorneys at the Civil Rights Division and Assistant U.S. Attorneys within the Central District of California’s U.S. Attorney Office.

If you or someone you know has applied for a concealed carry permit in Los Angeles or any jurisdiction within the United States and have not received a reply or decision within four months after applying, please email Community.2ndAmendmentCA@usdoj.gov. The mailbox is actively monitored by attorneys assigned to protect the Second Amendment rights of law-abiding citizens.

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it filed a lawsuit against Eddie Joe Hankins and the Housing Authority of the City of Bloomfield, Missouri, for sexually harassing a female housing applicant in violation of the Fair Housing Act. Hankins was the executive director of the Missouri Housing Authority from 2019 through 2022.

“There is no place in America for public officials who abuse their trust to coerce sexual acts from the people they are duty-bound to help, be it in public housing or other areas. We will hold them accountable,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division.

The lawsuit, filed today in the U.S. District Court for the Eastern District of Missouri, alleges that in 2021, a woman living with her three children applied for public housing. After her application was denied, the complaint alleges that she went to meet with Executive Director Hankins, who made unwanted sexual advances toward her. The suit also alleges that Hankins made sexual comments about the applicant’s appearance, conditioned housing for her family upon submission to his conduct, and that he refused to assist her with obtaining housing once she resisted his sexual advances. The lawsuit also alleges that the Housing Authority is vicariously liable for Hankins’ unlawful conduct.

The applicant filed a complaint against the Housing Authority and Hankins with the U.S. Department of Housing and Urban Development (HUD). After an investigation, HUD determined that the Housing Authority and Hankins discriminated against the applicant in violation of the Fair Housing Act and issued a charge of discrimination. After the applicant chose to have the matter decided in federal court, HUD referred the matter to the Department of Justice.

The lawsuit seeks monetary damages to compensate the applicant harmed by the alleged harassment and a court order barring future discrimination.

If you are a victim of sexual harassment by another landlord or property manager or have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743 or submit a report online. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. This settlement is part of the Justice Department’s Sexual Harassment in Housing Initiative. The initiative, which the Department launched in October 2017, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 50 lawsuits alleging sexual harassment in housing and recovered nearly $16.2 million for victims of such harassment.

Source: United States Department of Justice Criminal Division

PITTSBURGH, Pa. – A former resident of Sharon, Pennsylvania, was sentenced to 140 months in federal prison for fentanyl and cocaine trafficking within 1,000 feet of an elementary school and next-door to a day care center, Acting United States Attorney Troy Rivetti announced today.

United States District Judge Robert J. Colville imposed the sentence on Larry Marrow, 37, also ordering Marrow to serve six years of supervised release following his prison term.

According to information presented to the Court, Marrow engaged in fentanyl and cocaine trafficking for several months in 2023, close to an elementary school and next-door to a day care center in Sharon. Marrow had four separate drug trafficking convictions and four separate gun convictions that occurred in Pennsylvania, Michigan, and Ohio prior to the instant drug trafficking crime.

Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.

Acting United States Attorney Rivetti commended the Mercer County Drug Task Force, Federal Bureau of Investigation, and Pennsylvania Office of Attorney General for the investigation leading to the successful prosecution of Marrow.

Source: United States Department of Justice Criminal Division

ANCHORAGE, Alaska – A Chinese national illegally residing in the U.S. was charged by criminal complaint yesterday with participating in an international drug trafficking conspiracy that used a virtual mailbox service (VMS), including one in Wasilla, Alaska, to traffic large quantities of methamphetamine from Mexico into the U.S. and then to other countries, specifically New Zealand.

According to court documents, Zukai He, 42, entered the U.S. illegally in 2017 and was subject to an order of removal from September 2024. Court documents further allege that, while illegally living in the U.S., Zukai He allegedly stole personally identifiable information from a California resident to open an account at the Wasilla VMS. In January 2024, law enforcement officials obtained two parcels sent to the fraudulent VMS account that were ultimately destined for New Zealand and obtained federal search warrants to search the packages. Law enforcement officials found close to three kilograms of methamphetamine in the parcels. One parcel had drugs concealed inside a heat transfer stamping machine and the other had drugs concealed inside a 3D printer.

In May 2024, law enforcement officials further learned that U.S. Customs and Border Patrol (CBP) seized four parcels mailed from post offices in Phoenix, Arizona, that were destined for New Zealand. Each parcel contained over one kilogram of methamphetamine. Law enforcement officials identified a fifth similar parcel mailed from Arizona destined for New Zealand. CBP intercepted the parcel and discovered over one kilogram of methamphetamine.

Law enforcement officials identified Zukai He as the individual allegedly mailing the parcels containing drugs. In total, law enforcement seized over 10 kilograms of methamphetamine that Zukai He allegedly tried to traffic through the mail.

On Sept. 8, 2025, law enforcement officials executed a federal search warrant on Zukai He’s residence in California. Federal authorities arrested Zukai He and seized 14 cell phones, two laptops, 25 point-of-sale systems, over six kilograms of a substance consistent with methamphetamine, over $13,000 in cash and various financial documents. The financial documents included information for nine suspected shell or front businesses registered in California, Colorado, Maryland and New York. The businesses were in either Zukai He’s name or under names of victims whose identities were allegedly stolen.

Zukai He is charged with one count of conspiracy to distribute and possess with intent to distribute methamphetamine. Zukai He is in federal custody and will make his initial court appearance on a later date before a U.S. Magistrate Judge of the U.S. District Court for the District of Alaska. If convicted, he faces up to 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Michael J. Heyman of the District of Alaska, Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service Seattle Division Office and Special Agent in Charge David Reames of the Drug Enforcement Administration (DEA) Seattle Field Division made the announcement.

The U.S. Postal Inspection Service Anchorage Domicile and the DEA Seattle Field Division and Anchorage District Office are investigating the case with assistance from the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).

Assistant U.S. Attorneys Stephan Collins and Alana Weber are prosecuting the case.

This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime and drug trafficking. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Source: United States Department of Justice Criminal Division

Today, a federal jury in Memphis convicted Mervin Anderson, 40, of Memphis, Tennessee, of one count of possession of contraband in prison, including two homemade knives, or shanks. 

According to court documents and evidence presented at trial, Anderson was observed on video surveillance inside of the Detention Center in possession of two sharpened, handmade metal knives, commonly referred to as “shanks.” The defendant confronted another inmate while swinging the shanks at him. A corrections officer immediately responded to the cell block area and found the defendant still in possession of the shanks. When the shanks were taken from the defendant, he exclaimed, “God is on my side, I was about to kill that boy.”

The defendant faces a maximum penalty of five years in prison. Sentencing will be set at a later date.

The defendant is currently awaiting trial in a pending case where he is charged with conspiracy to distribute fentanyl. The pending case is currently set for trial on Nov. 3, 2025.

Acting Assistant Attorney General Matthew Galeotti of the Justice Department’s Criminal Division and U.S. Attorney Joseph C. Murphy for the Western District of Tennessee made the announcement.

The U.S. Marshals Service and the Shelby County Division of Corrections are investigating the case.

Trial Attorneys Amanda J. Kotula and Cesar Rivera-Giraud of the Criminal Division’s Violent Crime and Racketeering Section are prosecuting the case.

This case is part of the Criminal Division’s Violent Crime Initiative in Memphis conducted in partnership with the U.S. Attorney’s Office in the Western District of Tennessee and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and their associates in Memphis.

Source: United States Department of Justice Criminal Division

MIAMI – A Peruvian national was sentenced yesterday to 80 months in prison and ordered to pay more than $3,000,000 in restitution for his participation in transnational fraud schemes that victimized vulnerable consumers in the U.S.

According to court documents, David Cornejo Fernandez, 36, of Lima, Peru, facilitated fraudulent schemes that stole millions of dollars from thousands of Spanish-speaking victims across the U.S. Cornejo provided Internet-based telephone lines, caller-ID spoofing services, and recording capabilities to a network of fraudulent call centers in Peru. Relying on Cornejo’s services, those call centers defrauded and extorted thousands of Spanish-speaking victims by falsely threatening them with court proceedings, fines, and other consequences if they did not pay for English-language products. Cornejo was extradited from Peru in November 2024 to face charges related to the scheme and pleaded guilty to conspiracy to commit mail and wire fraud in July.   

In pleading guilty, Cornejo admitted that he provided fraudulent call centers in Peru with the technology to impersonate federal agents, police officers, attorneys, court personnel, and other government officials to extort payments from victims. Cornejo provided telephone lines to his call center co-conspirators, which they used to place unsolicited, fraudulent and extortionate telephone calls to vulnerable U.S. victims. Cornejo also provided caller-ID spoofing software that allowed his co-conspirators to convincingly impersonate government officials and threaten victims with severe legal and financial consequences if they did not pay. Cornejo placed pre-recorded messages on his co-conspirators’ telephone lines that fraudulently convinced victims they had reached actual U.S. courts, police departments, and federal agencies. When victims reported that specific telephone numbers were fraudulent, Cornejo provided new telephone lines and numbers to his co-conspirators so they could continue the fraudulent scheme.

Cornejo and his co-conspirators ultimately caused more than $3 million in losses to more than 8,800 victims across the U.S.

With today’s sentencing in the U.S. District Court for the Southern District of Florida, 13 defendants have now been convicted and sentenced in connection with transnational fraud schemes that defrauded and threatened Spanish-speaking U.S. consumers, claiming they would suffer legal consequences if they did not pay for English-language learning products they never requested. Collectively, these defendants were responsible for defrauding more than 30,000 U.S. consumers.

The 13 defendants include eight Peruvian call center owner-operators; four distribution center owner-operators who processed payments and distributed products in the U.S.; and now Cornejo, who facilitated the fraud schemes from Peru. Cornejo and many of these defendants shared strategies on how to impersonate the U.S. government and defraud Spanish-speaking residents of the U.S.

Cornejo is the ninth defendant to be extradited from Peru and sentenced in federal court for fraud related to Peruvian call centers involved in English language learning scams. In 2021 and 2022, U.S. District Judge Robert N. Scola Jr., sentenced Henrry Milla, Carlos Espinoza, Jerson Renteria, Fernan Huerta, Omar Cuzcano, Evelyng Milla, and Josmell Espinoza to sentences ranging from 88 months to 110 months in prison. In 2024, U.S. District Judge Kathleen M. Williams sentenced Jose Alejandro Zuñiga Cano to 98 months in prison.

USPIS and the Justice Department’s Consumer Protection Branch investigated the case.

Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Carolyn Rice of the Consumer Protection Branch are prosecuting the case and Assistant U.S. Attorney Annika Miranda for the Southern District of Florida is handling asset forfeiture. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the State Department’s Diplomatic Security Service, the U.S. Marshals Service, the Peruvian National Prosecutor General’s Office, and the Peruvian National Police provided critical assistance.

The Justice Department continues to investigate and bring charges in other similar matters involving threats against Spanish-speaking residents of the U.S.

If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

Additional information about the Consumer Protection Branch and its fraud enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20055.

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Source: United States Department of Justice Criminal Division

Georgia Tech Research Corporation (GTRC) has agreed to pay the United States $875,000 to resolve allegations that it violated the False Claims Act and federal common law by failing to meet cybersecurity requirements in connection with certain Air Force and Defense Advanced Research Projects Agency (DARPA) contracts. GTRC contracts with government agencies, including the U.S. Department of Defense (DoD), for research performed at its affiliate, the Georgia Institute of Technology (Georgia Tech).

“When contractors fail to follow the required cybersecurity standards in their DoD contracts, they leave sensitive government information vulnerable to malicious actors and cyber threats,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Together with DoD and other agency partners, the Department of Justice will continue to pursue and litigate violations of cybersecurity requirements to hold contractors accountable when they violate their cybersecurity commitments.”   

“Defense contractors’ adherence to their cybersecurity obligations is essential to safeguarding sensitive government information from malicious actors,” said U.S. Attorney Theodore S. Hertzberg for the Northern District of Georgia. “Contractors who fail to implement required cybersecurity controls, provide false information to the government, and otherwise fail to fulfill their cybersecurity obligations will be held accountable.”’

“Failure to follow required cybersecurity requirements puts all of us at risk,” said Stacy Bostjanick, Chief Defense Industrial Base Cybersecurity, Deputy Chief Information Officer for Cybersecurity, Office of the Chief Information Officer. “Those who knowingly provide deficient cybersecurity products or services, misrepresent their cybersecurity practices or protocols, or violate obligations to monitor and report cybersecurity incidents and breaches must be held accountable. Enforcement efforts like this should serve as a reminder to industry to prioritize DoD cybersecurity compliance.”

“Deficiencies in cybersecurity controls pose a significant threat to our national security and jeopardize sensitive DoD programs that put our servicemembers at risk,” said Special Agent in Charge Jason Sargenski of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “As force multipliers, we place a substantial amount of trust in our contractors, and those who ignore the rules will be held accountable.”

“AFOSI is committed to pursuing allegations related to the security of our information systems and neutralizing threats malicious actors pose when contractors fail to meet their contractual obligations,” said Special Agent in Charge Derrell Freeman of Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 5.   

The settlement resolves a lawsuit against GTRC and Georgia Tech where the United States alleged that until December 2021, those entities failed to install, update or run anti-virus or anti-malware tools on desktops, laptops, servers and networks at Georgia Tech’s Astrolavos Lab while the lab conducted sensitive cyber-defense research for DoD. The United States also alleged that until at least February 2020, there was no system security plan in place for the Astrolavos Lab to set out the cybersecurity controls that GTRC’s contracts required.

Finally, the United States alleged that in December 2020 GTRC and Georgia Tech submitted a false summary level cybersecurity assessment score to DoD which supposedly applied campus-wide. That summary level score of 98 was allegedly false because (1) there was no campus-wide IT system at Georgia Tech and (2) the score was premised on a “fictitious” or “virtual” environment and did not apply to any actual covered contracting system at Georgia Tech that would process, store or transmit covered defense information. The United States alleged the submission of a cybersecurity assessment score was a condition of contract award for GTRC’s DoD contracts. The obligation to implement security controls specified in National Institute of Standards and Technology Special Publication 800-171 (NIST SP 800-171) to protect certain DoD information has applied to DoD contracts, subcontracts, and similar contractual instruments since 2017 and will continue under the Cybersecurity Maturity Model Certification (CMMC) program that DoD recently finalized. The CMMC program further bolsters the assessment requirements applicable to DoD contractors and subcontractors. 

The settlement announced today stems from a complaint filed by Christopher Craig and Kyle Koza, former members of Georgia Tech’s Cybersecurity Team, under the qui tam or whistleblower provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the government and to share in any recovery. The Act also permits the Government to intervene and take over the lawsuit, as it did in this case as to certain allegations. The United States intervened in the qui tam suit and filed its complaint in August 2024. The settlement in this case provides for Craig and Koza to receive $201,250 as their share of the recovery.

The investigation, litigation, and resolution in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Northern District of Georgia, DCIS, AFOSI, the Air Force Materiel Command Law Office Procurement Fraud Division, and DARPA. The matter was handled by Trial Attorney Joanna Persio of the Fraud Section and Assistant U.S. Attorneys Melanie D. Hendry and Adam D. Nugent for the Northern District of Georgia.

The lawsuit is captioned United States ex rel. Craig v. Georgia Tech Research Corporation et al., No. 1:22-cv-02698 (N.D. Ga.).

The claims resolved by the settlement are allegations only, and there has been no determination of liability.