Month: May 2022

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Security News: TWO WAYNE COUNTY EMPLOYEES ARRESTED AND CHARGED WITH EMBEZZLING OVER $1.7 MILLION IN COUNTY FUNDS

Source: United States Department of Justice News

DETROIT – Two Wayne County Roads Division employees were charged with embezzling over $1.7 million in county funds in a federal criminal complaint, which was unsealed today, Wayne County Prosecutor Kym Worthy and United States Attorney Dawn N. Ison announced.  

Worthy and Ison were joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Wayne County Sheriff Raphael Washington, and Warren C. Evans, Wayne County Executive. Wayne County Executive Warren C. Evans and his administration have been assisting and cooperating with the ongoing investigation since they first learned of fraudulent activity within their organization.

Named in the criminal complaint were Kevin Gunn, 64, of West Bloomfield, and John L. Gibson, 54, of Detroit. Gunn manages the Bridge Unit of the Wayne County Roads Division and has been employed by Wayne County for 34 years. Gibson is a foreman within the Bridge Unit.  Gibson has been employed by Wayne County for 20 years.

Gunn and Gibson are charged in the complaint with conspiring to commit and committing federal program theft, wire fraud, and money laundering. Wayne County receives over $20 million in federal funds each year to pay for road repair, construction, maintenance. Gibson and Gunn were arrested today by FBI agents, Wayne County Prosecutor’s Office Investigators, and Wayne County Sheriff’s Deputies.    

According to the complaint, the Wayne County Sheriff’s Department began the investigation, and then solicited the assistance of the FBI to investigate the criminal actions of Gunn, Gibson, other employees of the Wayne County Roads Division, and vendors to Wayne County. At the beginning of the investigation, the Wayne County Prosecutor’s Office secured a search warrant which broke open the case and led to the uncovering of the embezzlement scheme. Investigators with the Wayne County Prosecutor’s Office have played an ongoing and important role in the investigation. 

Gunn, Gibson, and others were engaged in a scheme to defraud Wayne County by using taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in Southeast Michigan which they sold for personal profit. 

As part of the scheme to defraud, between January 2019, and August 2021, Gunn solicited approved Wayne County vendors to purchase generators and other power equipment from local retailers on behalf of Wayne County. The vendors would then submit invoices for these items to Wayne County. In order to conceal the scheme to defraud, Gunn instructed the vendors to falsify the invoices they submitted to the Roads Division, and list items the vendors were authorized to sell to the county under their contracts, rather than the generators and power equipment they were unlawfully acquiring at Gunn’s request. Roads Division employees would then approve and pay each vendor’s invoice with taxpayer funds. After these fraudulent purchases were verified and approved by Roads Division employees, Gibson, and Gunn took possession of the equipment which was resold over the internet and social media for personal profit.

A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors purchased 596 generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County. The total value of equipment purchased as part of the scheme was approximately $1.7 million in taxpayer funds. 

Federal program theft carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.  Wire fraud carries a maximum sentence of up to 20 years’ imprisonment and a fine of up to $250,000. Money laundering carries a sentence of up to 20 years’ imprisonment and a fine of up to $500,000.

“The Wayne County Prosecutor’s Office has never and will never shy away from prosecuting corruption in any form, said Prosecutor Worthy. I am proud of the focus and dedication of all of the investigators, who have worked together with our Wayne County Prosecutor’s Detectives to expose the alleged theft and fraudulent conduct against the citizens of Wayne County. The support of U.S. Attorney Dawn N. Ison, CEO Evans,  the Wayne County Sheriff’s Office, and the FBI resulted in the federal complaint against Gibson and Gunn.”

United States Attorney Dawn Ison said, “Today’s arrests reinforce our dedication to prosecuting corrupt public officials who elevate their own greed over the best interests of the public who rely on the safe administration and maintenance of public infrastructures like roads. We thank Wayne County Prosecutor Kym Worthy, and Wayne County Executive Warren C. Evans who have been instrumental in starting and moving this investigation forward.”      

Wayne County Executive Warren Evans said: “I take public corruption very seriously which is why when we first learned of the fraudulent activities, my office immediately offered to cooperate and provide any needed assistance to the Wayne County Sheriff’s Office, Wayne County Prosecutor’s Office, Federal Bureau of Investigation (FBI), and the U.S. Attorney’s  Office. It is unfortunate that a few individuals put their personal gain ahead of the work the county has done over the last 7 years to stabilize our fiscal outlook, continue improvements to our infrastructure and provide services to our residents throughout a global pandemic. These individuals have undoubtedly put a stain on the fabric of our system; however, they do not represent the hundreds of hardworking and dedicated Wayne County Employees who come to work every day to serve our residents with respect and integrity. I will continue to pursue every avenue to fully prosecute these employees and vendors.”

“The alleged actions of these individuals are nothing short of disgraceful,” said Sheriff Raphael Washington. “To brazenly steal from hardworking taxpayers and fraudulently line their own pockets while holding positions of public trust make these crimes all the more deplorable. Today’s charges are another example of our strong commitment to working together.”

“Today’s charges are an example of how government and law enforcement agencies work together to ensure public officials are using taxpayer money for its intended purpose — in this case the repair and maintenance of roads and bridges — and not for their personal benefit,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “I commend the Wayne County Prosecutor, Wayne County Executive, and the Wayne County Sheriff’s Office for their early work on this investigation and their continued cooperation.”

The investigation of this case was  conducted by the Wayne County Prosecutor’s Office, the Wayne County Sheriff’s Department, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.

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Security News: Orangeburg Man Indicted on Federal Gun Charges Detained After Contested Bond Hearing

Source: United States Department of Justice News

Columbia, South Carolina —  Marcus Duran Singleton, 38, of Orangeburg, was indicted for being a felon in possession of a firearm and ammunition and has been detained following a contested bond hearing in federal court in Columbia.

A federal Grand Jury in Columbia indicted Singleton following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Orangeburg Department of Public Safety (ODPS), the Norway Police Department (NPD), and the South Carolina Law Enforcement Division (SLED).  Singleton was charged with being a felon in possession of a firearm and ammunition.  ATF, with the assistance of NPD and SLED, arrested Singleton, and he appeared in Court upon his request for a bond. After a contested hearing, United States Magistrate Judge Paige J. Gossett ordered Singleton detained without bond pending resolution of the federal charge against him.

During the hearing, an ATF special agent testified that Singleton was allegedly involved in unlawfully pointing and presenting of a firearm at the employees of the fast-food establishment, Cook-Out, located in Orangeburg, on September 4, 2021.  As a result of the federal charge, Singleton faces a maximum term of imprisonment of 10 years, a fine of $250,000, and court-ordered supervision to follow any term of imprisonment. 

The offense listed in the indictment is merely an allegation, and Singleton is presumed innocent unless and until proven guilty.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) initiative, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. 

Assistant United States Attorneys Elle E. Klein and Elliott B. Daniels of the Columbia office are prosecuting the case.

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Security News: Mexican National Sentenced to More Than 15 Years in Prison for Role in Drug Trafficking Organization that Manufactured and Attempted to Distribute 63 Kilos of Meth in Northern Ohio

Source: United States Department of Justice News

Acting U.S. Attorney Michelle M. Baeppler announced that Aquileo Perez-Pineda, 52, a Mexican national previously residing in Georgia, was sentenced on Friday, April 29, 2022, by U.S. District Judge Sara Lioi to 188 months or more than 15 years in prison after Perez-Pineda pleaded guilty to his role in a conspiracy to manufacture, possess and distribute large quantities of methamphetamine in Northern Ohio.

According to court documents, from January 2018 through March 2018,  Perez-Pineda was part of a drug trafficking organization that conspired to manufacture, possess and distribute approximately 63 kilograms – more than 138 pounds – of methamphetamine in the Northern District of Ohio.

During this time, law enforcement officials had begun an investigation into a drug trafficking organization that established a system to transport liquid methamphetamine from Mexico to the Northern District of Ohio to be manufactured and cooked into crystal methamphetamine and  distributed, with the cash proceeds to be sent back to Mexico.  Court documents show that co-conspirators hid the liquid methamphetamine in the gas tanks of tractor-trailers.  

According to court records, Perez-Pineda, a trusted methamphetamine cook for the Mexican traffickers, came to Ohio from Georgia to coordinate the manufacturing of crystal methamphetamine, converting the liquid methamphetamine to crystal methamphetamine.   The manufacturing took place at warehouses in Aurora and Hudson, Ohio, where he was assisted by Hector Manuel Ramos-Nevarez and Gilbert Treviso-Garcia, two other Mexican nationals who had previously come to Ohio.

In the early morning hours of March 24, 2018, law enforcement officials with the DEA executed a search warrant at the warehouse in Hudson as part of their investigation into the drug trafficking organization, seizing a large quantity of crystal methamphetamine. 

Immediately after the search, the co-conspirators, unaware that law enforcement had taken the drugs, came to suspect Shauheen Sohrabi of stealing the drugs. 

Co-conspirators Deon Johnson and Tyrone Rogers discussed with suppliers in Mexico what to do about the theft, including possible retribution on Sohrabi.  Johnson had coordinated the connection between suppliers in Mexico and co-conspirators in Northeast Ohio, all while serving a sentence for a prior crime in state prison.

After the Mexican suppliers told Johnson that they could be killed in Mexico for losing such a large quantity of drugs, Johnson told Rogers, “The call is made; he’s through,” referring to Sohrabi.  Rogers then told another individual, “it’s over for” Sohrabi, explaining that “they already put the green light on him, it’s a wrap.  I can’t save him now.” 

Investigators then intervened, arresting members of the drug trafficking organization who were searching for Sohrabi.  Authorities then searched the Hudson warehouse, where they seized additional methamphetamine in its liquid form.

During the two searches, officials seized approximately 63 kilograms of methamphetamine. 

At the time investigators intervened in March 2018, Perez-Pineda had not been identified and had left the area.  However, less than two months later, according to public reports, Perez-Pineda was arrested in the middle of another large-scale methamphetamine-manufacturing process in Harnett County, North Carolina.  In that incident, Harnett County investigators seized 120 gallons of liquid methamphetamine, or more than 450 kilograms, reported to have a street value of approximately $90 million. 

Perez-Pineda is also serving a separate 70-month sentence as a result of that incident. Perez-Pineda’s 188-month sentence has been ordered to run consecutive to that sentence.

Additionally charged in this matter as co-conspirators are Johnson, Rogers, Sohrabi, Ramos-Nevarez, Treviso-Garcia, Michelle Dailey, and Joseph Terlizzi, who have all pled guilty and been sentenced for their roles in the drug trafficking organization.  Johnson was sentenced to 170 months in prison in March of this year.

Mexico-based supplier Jesus Cota-Medina has also been charged, and his matter remains pending.  Cota-Medina is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case was investigated by the DEA.  This case was prosecuted by Assistant U.S. Attorneys Elliot D. Morrison and Kevin P. Pierce.

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Defense News: NAVSUP supports USS Arlington’s Iceland port visit with husbanding services contract

Source: United States Navy

Naval Supply Systems Command Fleet Logistics Center Sigonella’s (NAVSUP FLCSI’s) Global Multiple Award Husbanding Contract (GMAC) enables the command’s contracting specialists to partner with European husbanding service providers (HSPs) to support requirements for U.S. maritime forces participating in various bilateral and joint exercises across Africa and Europe, including the High North.

As the U.S. Sixth Fleet-led exercise Northern Viking 22 (VK22) drew to an end in mid-April, NAVSUP FLCSI’s contracting team leveraged the GMAC to procure husbanding services for one of the exercise participants, USS Arlington (LPD 24), during a scheduled port visit April 14, 2022 in Reykjavik, Iceland.

Some of the husbanding goods and services procured for the port visit included pilot and tug services, mobile crane and manlift services, mobile crane equipment, potable water, ship brow, x-ray scanner with trained operators, cell phones and transportation vehicles.

“The GMAC proved to be the ideal contracting vehicle for the port visit as it allowed for a number of administrative efficiencies resulting in minimizing the risks of increased costs and poor service,” said Robert DeAngelis, NAVSUP FLCSI contract specialist.

As part of his role, DeAngelis was boots-on-the ground in Reykjavik during the port visit.

“I met with local port authorities to inquire on the services and local support, assessed the competency and perceived effectiveness of port security,” said DeAngelis. “Furthermore, I was able to dynamically authorize needed service changes, with the U.S. Sixth Fleet contracting officer’s representative, the ship’s supply officer and HSP vendor. This fluid support allowed us to take advantage of cost saving initiatives and expand support for the ship in real time.”

Besides contracting support, one of FLCSI’s logistics support officers hand-delivered critical parts to the ARG’s embarked 22nd Marine Expeditionary Unit (MEU).

“Our ability to support port visits at strategically significant High North locations, such as Reykjavik, is a concrete example of NAVSUP’s expanding capabilities delivering operational readiness to the Fleet where and when our Warfighters need it,” said Capt. Douglas S. MacKenzie, NAVSUP FLCSI commanding officer. “This successful port visit also demonstrates how our logisticians and contracting professionals make a crucial contribution to enhancing logistics interoperability and engagement with our Allies in the region. In this case, the Icelandic Coast Guard and the Icelandic commercial husbanding service provider industry.”

Assigned to the USS Kearsarge (LHD 3) Amphibious Ready Group (ARG), Arlington joined six NATO Allied Nations during VK22 to strengthen interoperability and force readiness, enabling multi-domain command and control of joint and coalition forces in the defense of Iceland and Sea Lines of Communication in the Greenland, Iceland, United Kingdom (GIUK) gap.

After the port visit, the 22nd MEU participated in a bilateral training event with the Kingdom of Norway’s Armed Forces to strengthen U.S. and Norway interoperability ensuring collective capabilities and steadfast partnerships among NATO allies and partners.

The Kearsarge ARG and embarked the 22nd MEU are under the command and control of Task Force 61/2. Arlington’s presence in the High North is a demonstration of the U.S. Navy’s continued commitment to collective defense of the European region and reinforces the strong bond between the U.S. and Iceland.

NAVSUP serves as the Department of the Navy’s lead for all husbanding services contracts. FLCSI is one of NAVSUP’s eight globally-positioned commands that provides for the full range of solutions for logistics, business and support services to the U.S. Naval, Joint, NATO and Allied Forces across 14 enduring and forward operating sites; forward contingency and cooperative security locations in 13 countries in Europe and Africa.

U.S. Naval Forces Europe, headquartered in Naples, Italy, conducts the full spectrum of joint and naval operations, often in concert with allied and interagency partners, in order to advance U.S. national interests and security and stability in Europe and Africa.

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Defense News: ENC Tech Bridge Industry Day focuses on problem solving

Source: United States Navy

Held at the Havelock Tourist and Event Center, the event focused on problem-solving, networking and STEM pipeline development. The Industry Day/Technology Scan marked the first working event held by the ENC Tech Bridge, which was launched Jan. 27.

As part of an Office of Naval Agility (NavalX) network, 17 Tech Bridges aim to bridge the gap between the Navy and emerging entities like startups, small businesses, academia, nonprofits and private capital that aren’t traditionally part of the Navy’s development and acquisition process. The ENC Tech Bridge operates in conjunction with a partnership between Fleet Readiness Center East (FRCE) and Craven County.

FRCE Commanding Officer Capt. James M. Belmont said he was excited to see participants from a wide variety of backgrounds taking part in the event, and was hopeful the ENC Tech Bridge would continue to build on the energy it has generated since the organization’s launch three months ago.

“The ENC Tech Bridge is still young, but we are enthusiastic about the opportunities it brings,” Belmont said. “It serves as a conduit that allows for us to share ideas, identify possible solutions and deliver capabilities to the warfighters, ideally faster than we could through traditional methods, and allows us to enlist these nontraditional partners in solving some of the Navy and Marine Corps’ most pressing issues. We are excited and committed to this initiative.”

In the Technology Scan aspect of the event, three companies presented briefings or demonstrations of technologies they offer that could help solve issues facing naval aviation and military maintenance, repair and overhaul operations: digital inventory tracking of small tools, and the on-aircraft measurement of a bearing liner’s remaining thickness. In order to participate, the companies first submitted white papers regarding their technologies. FRCE technical experts reviewed submitted white papers, assessed the technologies’ potential usefulness in a military depot or fleet environment, and issued invitations based on those criteria.

One participant, Anurag Kulshrestha, said he was excited about the opportunity to demonstrate his company’s tracking technology during the Technology Scan. The president and chief executive officer of Anantics said the company has done similar work for other American and international clients, and has been searching for an opportunity to do the same with the U.S. federal government. Kulshrestha said he saw the call for submissions on SAM.gov, the federal government’s website for contracting and award management initiatives, and recognized an opportunity to provide a live demonstration of the technology as a sort of proof of concept.

“I’m happy to be here and, hopefully, we have the technology solution the Navy needs,” he said.

In addition to the Technology Scan, the day’s events also featured a brief introduction to the Tech Bridge Program, an overview of the FRCE Advanced Technology and Innovation Team, an explanation of the Department of Defense’s Small Business Innovation Research and Small Business Technology Transfer programs, and a discussion about expanding outreach and awareness for STEM programs to build a sustainable STEM education and training pipeline for the production efforts of the U.S. Navy and beyond.

With such a wide range of topics covered, the event offered something for everyone who attended, said ENC Tech Bridge Director Jeff Nelson. All participants benefitted from at least one of the in-depth briefings that opened the event, and the expo provided an excellent opportunity for networking.

“I saw a lot of the attendees having very in-depth conversations with the exhibitors and with each other during the expo, and I believe that speaks to the success of today’s event,” Nelson said. “We’ve been able to strike a chord with information that was pertinent to our participants, and also facilitated them making connections with the ENC Tech Bridge, with FRCE and with each other, and that’s an important part of what we’re trying to accomplish here.”

The ENC Tech Bridge works to build an ecosystem of innovation to support the Navy and Marine Corps with a focus on several areas of consideration, including manufacturing and repair technologies; advanced manufacturing; big data, data analytics and visualization; technical insertion; augmented and mixed reality; automation and robotics; and soft and wicked problem solving.

FRCE is North Carolina’s largest maintenance, repair, overhaul and technical services provider, with more than 4,000 civilian, military and contract workers. Its annual revenue exceeds $1 billion. The depot provides service to the fleet while functioning as an integral part of the greater U.S. Navy; Naval Air Systems Command; and Commander, Fleet Readiness Centers.