Category: MIL-OSI

Source: United States Department of Justice Criminal Division

V.Ships Norway A.S. (V.SHIPS) pleaded guilty today to violating the Act to Prevent Pollution from Ships and was sentenced to pay a $2 million fine. V.Ships admitted that oily bilge water and oily waste was discharged from the Motor Tanker Swift Winchester (M/T Swift Winchester) and the discharges were omitted from the Oil Record Book.  

“Dumping oil-contaminated waste into the waters around our ports and coasts violates the law and poses an unnecessary health and environmental hazard,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “The crew took pains to hide their illegal activity by knowingly keeping inaccurate records. We will not turn a blind eye to this kind of irresponsible and fraudulent activity.”

“The Gulf of America and the Texas ports are amazing places with great natural beauty. They are also vital to our economy,” said Acting U.S. Attorney Jay R. Combs for the Eastern District of Texas. “When a foreign ship operated by a foreign company discharges polluting wastes, it threatens waters that are vital to the United States and the state of Texas. We will hold those responsible for polluting the Gulf of America accountable.”

“The criminal prosecution of this case underlines our commitment to enforcing the Act to Prevent Pollution from Ships” said Acting U.S. Attorney Ellison C. Travis for the Middle District of Louisiana. “The illegal discharge of bilge water and oily waste from vessels poses a significant threat to our waters and marine life and by holding those accountable who violate these standards, we send a clear message that we will not tolerate actions that endanger our environment. We remain dedicated to ensuring that the maritime industry operates responsibly and in compliance with environmental laws.”

“Coast Guard Marine Inspectors, Pollution Responders and Investigating Officers undergo rigorous and specialized training to detect and gather evidence of environmental crimes. This expertise alongside our federal partnerships was crucial to the successful prosecution of this violation,” said Capt. Jennifer Andrew, the Commanding Officer of Marine Safety Unit Port Arthur. “The Coast Guard maintains one of the world’s most comprehensive and thorough vessel inspection programs, and we will continue to leverage this robust capability to ensure strict compliance with domestic and international maritime laws.”

Between February 2022 and August 2022, a hose was connected between the incinerator waste oil tank and the sewage holding tank on the M/T Swift Winchester. This allowed oily waste to transfer into the sewage holding tank and then to be discharged directly into the sea, bypassing required pollution prevention equipment. A low-ranking engine crewmember reported this to a Superintendent at V.Ships. The Superintendent investigated the matter and discovered what appeared to be oil in the sewage tank. V.Ships dismissed the Chief Engineer.  In August 2022, the new Chief Engineer ordered the engine crew to clean the Oil Water Separator (OWS) filter. The engine crew took the filter onto the deck and hosed it down with a degreaser and the oily waste washed directly overboard through a scupper.

Coast Guard members from U.S. Coast Guard Marine Safety Unit Port Arthur conducted an examination, during which an engine room crewmember disclosed the discharges and provided photographic and video evidence documenting the illegal discharges. The M/T Swift Winchester entered Baton Rouge, Louisiana, on Aug. 25, 2022, and Port Arthur, Texas, on Sept. 7, 2022, with a knowingly falsified Oil Record Book.

U.S. Coast Guard Marine Safety Unit Port Arthur and the U.S. Coast Guard Investigative Service investigated the case.

Senior Trial Attorney Kenneth E. Nelson and Trial Attorney Lauren Steele of ENRD’s Environmental Crimes Section, Assistant U.S. Attorney Joseph Batte for the Eastern District of Texas, and Assistant U.S. Attorney Edward Warner for the Middle District of Louisiana prosecuted the case.

Source: United States Department of Justice Criminal Division

A federal grand jury in the Northern District of California returned an indictment charging a Hawaii man with wire fraud, securities fraud, and obstruction in connection with a scheme to defraud investors of $170 million as the CEO and Founder of the social media company Get Together, a privately held social media startup known as “IRL”.

According to court documents, Abraham Shafi, 38, of Pepeekeo, Hawaii, allegedly committed fraud in connection with Get Together’s 2021 “Series C” funding round, which raised $170 million at a valuation of over $1 billion. In seeking investment, Shafi told potential investors that IRL was spending only $50,000 a month in paid advertising and that user signups “were not incentivized or paid.” However, Shafi had spent millions of dollars on paid advertising in the form of incentive advertising, a form of advertising in which users are provided a reward in a third-party app if they download IRL. In the lead up to Series C, Shafi asked his vendor for a “big burst” of ads for “a few days” to drive more installs of the IRL app. During the Series C process, investors specifically asked about paid advertising, and Shafi falsely responded that “[u]nlike other apps that spend aggressively to acquire new users, we spend very little.” Shafi concealed IRL’s spending on incentive ads by having them invoiced to a third-party firm, ensuring that the nature and amount of the expense did not appear on IRL’s ledger.

Shafi continued to conceal the amount that IRL was spending in incentive ads after the Series C closed, instructing an IRL employee to create false invoices that listed the ad spending as being related to infrastructure, or “infra costs,” and falsely telling his investors that the money spent on incentive ads had instead been used for other forms of advertising. When the SEC opened an investigation into IRL, Shafi restored his cell phone to a previously saved backup, resulting in the deletion of records, and instructed other IRL employees to lie about his involvement in the scheme.

Shafi is charged with wire fraud, securities fraud, and obstruction. If convicted, he faces a maximum penalty of 20 years in prison on each count. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; U.S. Attorney Craig H. Missakian for the Northern District of California; and FBI Special Agent in Charge Sanjay Virmani of the FBI San Francisco Field Office made the announcement.

The FBI is investigating the case.

Acting Assistant Chief Attorney Laura Connelly of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Sailaja Paidipaty and Evan Mateer for the Northern District of California are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

A federal grand jury in the Eastern District of Michigan returned a ten-count indictment against two defendants for their alleged roles in a forced labor and money laundering conspiracy that victimized individuals in Michigan, Florida, Texas, and Missouri.

The two defendants, David Taylor, 53, and Michelle Brannon, 56, were arrested today in North Carolina and Florida in a nationwide takedown of their forced labor organization.

“Combating human trafficking is a top priority for the Department of Justice,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We are committed to relentlessly pursuing and ending this scourge and obtaining justice for the victims.”

“We will use every lawful tool against human traffickers and seek justice for their victims,” said U.S. Attorney Jerome F. Gorgon Jr. for the Eastern District of Michigan. “A case like this is only possible through a concerted effort with our federal partners across the country and the non-governmental agencies who provide victim support. We thank them all.”

“The indictment of David Taylor and Michelle Brannon demonstrates the FBI’s steadfast efforts to protect the American people from human exploitation and financial crimes, including forced labor and money laundering,” said Acting Special Agent in Charge Reuben Coleman of the FBI Detroit Field Office. “The alleged actions are deeply troubling. I want to thank the members of the FBI Detroit Field Office, with strong support from our federal and agency partners in the FBI Tampa Field Office, FBI Jacksonville Field Office, FBI St. Louis Field Office, FBI Charlotte Field Office, FBI Houston Field Office, and the Detroit IRS-CI Field Office, in addition to several local, county and state law enforcement partners, for their role in executing this multi-state operation. The FBI in Michigan will continue to investigate those who violate federal law and remain focused on ensuring the protection and safety of our nation.”

“Money laundering is tax evasion in progress, and in this case, the proceeds funded an alleged human trafficking ring and supported a luxury lifestyle under the guise of a religious ministry,” said Special Agent in Charge Karen Wingerd of IRS Criminal Investigation, Detroit Field Office. “IRS-CI stands committed to fighting human trafficking and labor exploitation, and pursuing those who hide their profits gained from the extreme victimization of the vulnerable.”

The indictment alleges that Taylor and Brannon are the leaders of Kingdom of God Global Church (KOGGC), formerly Joshua Media Ministries International (JMMI). Taylor refers to himself as “Apostle” and to Brannon as his Executive Director. Their organization ran a call center that solicited donations for KOGGC/JMMI every day. Taylor established his first call center in Taylor, Michigan, and then operated call centers in other locations in the United States including in Florida, Texas, and Missouri.

Taylor and Brannon, according to the indictment, compelled their victims to work at their call centers and to work for Taylor as his “armor bearers.” Armor bearers were Taylors’s personal servants who fulfilled Taylor’s demands around the clock. Taylor and Brannon controlled every aspect of the daily living of their victims. Victims slept in the call center facility or in a “ministry” house, and Taylor and Brannon did not permit them to leave without permission. Taylor demanded that his Armor Bearers transport women from ministry houses, airports, and other locations to Taylor’s location and ensured the women transported to Taylor took Plan B emergency contraceptives.

In addition, according to the indictment, Taylor and Brannon required victims to work in the call centers long hours without pay or perform other services for Taylor. Taylor set unobtainable daily, weekly, monthly, and yearly monetary donation goals for victims working in the call centers and required victims to follow the orders he created without question. If victims disobeyed an order or failed to reach his monetary goals, Taylor and Brannon punished the victims with public humiliation, additional work, food and shelter restrictions, psychological abuse, forced repentance, sleep deprivation, physical assaults, and threats of divine judgment in the form of sickness, accidents, and eternal damnation.

KOGGC/JMMI received millions of dollars in donations each year through its call centers. Taylor and Brannon used much of the money to purchase luxury properties, luxury vehicles, and sporting equipment such as a boat, jet skis, and ATVs. In total, Taylor received approximately $50 million in donations since 2014.

Defendant David Taylor will appear on the indictment today in Durham, North Carolina. Defendant Michelle Brannon will appear today on the indictment in Tampa, Florida.

Upon conviction, the alleged crimes carry the following penalties:

Conspiracy to Commit Forced Labor: up to 20 years’ imprisonment and a fine up to $250,000.

Forced Labor: up to 20 years’ imprisonment and a fine up to $250,000.

Conspiracy to Commit Money Laundering: up to 20 years’ imprisonment and a fine up to $500,000 or twice the value of the properties involved in the money laundering transactions.

This case was investigated by the FBI and IRS-CI. It will be prosecuted by Assistant U.S. Attorney Sarah Resnick Cohen for the Eastern District of Michigan and Trial Attorney Christina Randall-James of the Civil Rights Division’s Human Trafficking Prosecution Unit.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll free at 1-888-373-7888, which operates 24 hours a day, 7 days a week.  Further information is available at www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

The Justice Department’s Civil Rights Division has opened an investigation into the California Environmental Protection Agency (CAL EPA), including the California Air Resources Board (CARB), to determine whether it may be engaged in employment practices that discriminate based on race, sex, color, and national origin.

In publicly available guidance documents, CAL EPA highlights “hiring, promotion and retention practices and policies” that indicate it may be using protected characteristics to “advance racial equity.” Further, CARB, a division of CAL EPA, appears to use these policies to engage in discriminatory employment practices in its “Racial Equity Framework,” which aims to advance race-based decision-making within the agency.

The Civil Rights Division’s Employment Litigation Section is investigating whether the California Environmental Protection Agency is engaged in a pattern or practice of discrimination based on race, sex, and other protected characteristics, in violation of Title VII of the Civil Rights Act of 1964, as amended.

“Race-based employment practices and policies in America’s local and state agencies violate equal treatment under the law,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Agencies that unlawfully use protected characteristics as a factor in employment and hiring risk serious legal consequences.”

You can read the notice letter here.

Source: United States Department of Justice Criminal Division

A federal jury in Puerto Rico yesterday convicted a fifth individual for conspiracy to launder funds in connection with multiple wide-ranging wire, mail, and access device fraud schemes.

Oluwasegun Baiyewu was convicted of a money laundering conspiracy following a 22-day trial in San Juan. According to court documents and evidence presented at trial, Oluwaseun Adelekan 40, and Temitope Omotayo, 40, both of Staten Island, New York; Ifeoluwa Dudubo, 37, of Austin, Texas; and Temitope Suleiman, 37, and Oluwasegun Baiyewu, 37, of Richmond, Texas, conspired to launder funds from different international organized fraud schemes, including romance, pandemic relief unemployment insurance fraud, and business email compromise scams. These fraud schemes disproportionately impacted elderly or otherwise vulnerable Americans.

“The Department of Justice will continue to identify and prosecute the fraudsters who design complex fraud schemes and the launderers that receive victim proceeds and make sure the crimes are profitable,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This conviction is a message to the transnational organized crime groups and their accomplices who take advantage of our open financial system: you cannot victimize Americans with impunity.”

“The defendant participated in a money laundering scheme turning illicit gains into a facade of legitimacy, especially those involving seniors or other vulnerable people, and businesses in Puerto Rico and the United States,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “The United States Attorney’s Office and our law enforcement partners commitment to investigate criminals who steal money sends a clear message: justice will prevail, and those who exploit others for personal gain will be held accountable. We thank all our partners who assisted in this prosecution.”

“The FBI is committed to taking down the key service providers that support cyber scammers and transnational organized crime,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “This conviction is a reminder of the durable impact we are having in targeting the entire cybercriminal ecosystem, which is made possible by working in tandem with partners who have unique authorities and capabilities.”

“The criminals involved in this scheme thought there was safety in numbers, but the U.S. Postal Inspection Service doesn’t stop until everyone involved in schemes that target older Americans is brought to justice,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service Boston Division. “The defendants lined their pockets by defrauding vulnerable members of our society through various schemes designed to entice their victims to give up their hard-earned cash. This conviction is proof that anyone involved with transnational crimes will be tracked down, exposed, and made to face the consequences.”

A superseding indictment against the five defendants alleged that in 2020 and 2021, the defendants worked together to profit from efforts to “clean” money from scams involving victims, many of whom were older adults, in California, Illinois, Washington, and Nevada, and business email compromise schemes affecting victim companies in Puerto Rico and Missouri. After receiving the proceeds, according to the indictment, the defendants or their co-conspirators conducted hundreds of transactions with the funds to, among other things, purchase used cars that were shipped overseas to Nigeria.

The defendants will be sentenced before the Honorable Raúl M. Arias-Marxuach for the District of Puerto Rico.

The U.S. Postal Inspection Service, U.S. Department of Labor Office of Inspector General, and FBI San Juan Cyber Task Force are investigating this case, with assistance from the National Unemployment Insurance Fraud Task Force supporting the COVID-19 Fraud Enforcement Strike Force teams.

Trial Attorneys Emily C. Powers and Richard S. Greene IV of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Linet Olinghouse for the District of Puerto Rico are prosecuting the case.

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 can be filed with the FTC at www.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.