Month: May 2022

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Security News: Carmel, Indiana Man Sentenced to 84 Months in Prison

Source: United States Department of Justice News

After being convicted at trial of Wire Fraud and Conspiracy to Commit Securities Fraud

HAMMOND- George McKown, age 71, of Carmel, Indiana was sentenced before United States District Court Judge Philip P. Simon on his conviction for Wire Fraud and Conspiracy to Commit Securities Fraud, announced United States Attorney Clifford D. Johnson.

McKown was sentenced to 84 months in prison and ordered to pay over $5,212,159.45 dollars in restitution to the victims of his securities fraud and wire fraud schemes.

According to documents filed in this case, between 2008 and 2013, McKown partnered with Richard Gearhart to operate Asset Preservation Specialists (APS) a company they claimed would make profitable market investments for its clients.  McKown and Gearhart recruited over 40 individuals to invest their savings, pensions, death benefits, and IRAs with APS, ultimately collecting millions of dollars.  McKown, representing himself as the President of APS, promised his investors there was no risk to their initial deposit, they would receive a return of 6% to 8% on their investments and, upon request, their initial investment would be returned within thirty days.

After receiving the investors’ money, McKown and Gearhart abandoned the plan to invest money in the market and began using their clients’ investments to fund their own personal business projects and projects of their associates.  By 2013, McKown and Gearhart had squandered over $5,000,000 of their investors’ money. 

The individuals, through APS, kept its investors in the dark about the losses by sending fraudulent financial statements and 1099s to investors which falsely showed they were making a consistent profit on their investments. Through APS, the pair further continued to recruit new investors to hide the losses and keep the scheme afloat.   Many of the victims first learned that APS had lost their savings when Gearhart filed for bankruptcy in 2013.

Co-defendant, Richard Gearhart pled guilty to conspiracy to commit securities fraud in December of 2019.  He was sentenced to five years imprisonment and ordered to pay over $5 million in restitution in July of 2021. McKown was convicted of his fraud offenses following a jury trial in October 2021. 

The case was investigated by the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Indiana Secretary of State Securities Division. This case was prosecuted by Assistant United States Attorney Thomas McGrath and former Assistant United States Attorney Toi Denise Houston.

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Security News: Justice Department and EPA Reach Agreement with Potentially Responsible Parties to Clean Up the Tremont City Barrel Fill Superfund Site in German Township, Ohio

Source: United States Department of Justice

The Department of Justice and the Environmental Protection Agency (EPA) announced a proposed consent decree that requires seven potentially responsible parties (PRPs) to clean up contamination at the Tremont City Barrel Fill Superfund site in German Township, Ohio, at an estimated cost of $27.7 million.

The complaint was filed simultaneously with the proposed consent decree in the District Court for the Southern District of Ohio. The complaint alleges that the PRPs, Chemical Waste Management Inc., Franklin International Inc., International Paper Co., The Procter & Gamble Co., PPG Industries Inc., Strebor Inc. and Worthington Cylinder Corp. are liable for the cleanup because they are either former owners and operators of the barrel fill or sent wastes to the site for disposal. 

“Today’s settlement requires those responsible for the contamination to clean up the Tremont Barrel Fill site,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The cleanup provided by this agreement will benefit the public health and surrounding community.”

“Today’s agreement is a huge win for the community and sets the stage for this important cleanup to finally begin,” said EPA Region 5 Administrator Debra Shore. “This is a critical step toward the remediation of the site and will minimize risks to the community and the environment.”

The Tremont City Barrel Fill site is a closed industrial waste landfill that covers 8.5 acres. From 1976 until 1979, when operations ceased, about 51,500 drums and 300,000 gallons of industrial liquid waste were disposed in waste cells at the site.

The proposed consent decree requires the PRPs to excavate and characterize drums and uncontained waste in the barrel fill. All liquid waste and nearly 1,000 drums containing hazardous substances, known as still-bottom waste, will be disposed off-site. The remaining hazardous and non-hazardous solid waste will be disposed on-site in a newly constructed hazardous waste landfill.

The consent decree is subject to a 30-day public comment period and final court approval and will be available for public review on the DOJ website.

More information about the site is available on the Tremont City Barrel Fill website.

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Security News: Hillsborough County Man Sentenced To 17 Years In Federal Prison For Distributing And Possessing Child Sexual Abuse Materials And Ordered To Pay Victims Over $100,000 In Restitution

Source: United States Department of Justice News

Tampa, Florida – U.S. District Judge William Jung has sentenced Andres Ivan Leyva Sabina (51, Tampa) to 17 years in federal prison for distributing and possessing images and videos depicting children being sexually abused. The court also ordered Sabina to pay more than $100,000 in restitution to child victims, serve a 10-year term of supervised release, and register as a sex offender.  Sabina had pleaded guilty on January 12, 2022.

According to court documents, on several occasions in September 2018, Sabina used a social media application and the internet to distribute images depicting children being forced to engage in sexually explicit conduct. In July 2019, law enforcement officers executed a search warrant at Sabina’s residence. Several electronic devices used by Sabina were seized and officers discovered more than 4,000 images and videos depicting children being sexually abused contained in these devices.

“This predator possessed thousands of depictions of child pornography involving more than 150 victims that he collected and distributed on the dark web,” said HSI Tampa acting Assistant Special Agent in Charge Jennifer Silliman. “HSI special agents and Florida Department of Law Enforcement officers worked jointly to shut down this monstrous creature from leaving more child victims in his wake.”

This case was investigated by Homeland Security Investigations and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Candace Garcia Rich.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Criminal Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

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Security News: Pittsburgh Man Pleads Guilty in Drug and Money Laundering Conspiracy

Source: United States Department of Justice News

PITTSBURGH – A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and money laundering laws, United States Attorney Cindy K. Chung announced today.

Tracey Phillips, 36, formerly of the City’s Marshall-Shadeland neighborhood, pleaded guilty to two counts before United States District Judge Cathy Bissoon.

In connection with the guilty plea, the court was advised that from in and around June 2013, and continuing thereafter to on or about March 19, 2014, Phillips conspired with others to distribute and possess with intent to distribute at least five but less than 15 kilograms of cocaine and at least three but less than 10 kilograms or more of heroin. Additionally, from in and around June 2013, and continuing thereafter to on or about March 19, 2014, Phillips conspired with others to knowingly conduct and attempt to conduct financial transactions involving property representing the proceeds of illegal drug trafficking.

Judge Bissoon scheduled sentencing for October 4, 2022, at 1:45 pm The law provides for a total sentence of not less than 10 years to a maximum of life in prison, a fine of not more than $10,500,000 or twice the value of the property involved in the transaction, whichever is greater, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.

The Drug Enforcement Administration, Homeland Security Investigations, and the Internal Revenue Service – Criminal Investigation led the investigation that led to the prosecution of Tracey Phillips.

This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

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Defense News: Navy to Commission Future Littoral Combat Ship Minneapolis-Saint Paul

Source: United States Navy

USS Minneapolis-Saint Paul is the second naval ship to honor Minnesota’s Twin Cities, although each city has been honored twice before.

The principal speaker is U.S. Rep. Betty McCollum of Minnesota’s 4th District. Additional speakers include Governor Tim Walz of Minnesota; U.S. Sen. Amy Klobuchar of Minnesota; U.S. Rep. Pete Stauber of Minnesota’s 8th District; Under Secretary of the Navy Erik Raven; Vice Adm. Scott Conn, deputy chief of naval operations for warfighting requirements and capabilities; and Mr. Jon Rambeau, vice president and general manager, Lockheed Martin Integrated Warfare Systems and Sensors. The ship’s sponsor is Ms. Jodi Greene, principle at the Mabus Group and former deputy under secretary of the Navy for policy. She will give the first order to “man our ship and bring her to life.”

“It is fitting that a littoral combat ship is named for Minneapolis-Saint Paul, honoring the rich history, hard work, and contributions of the people there,” said Secretary of the Navy Carlos Del Toro. “I am certain the crew who will man this ship will carry on the legacy of the ‘Twin Cities’ and will play an important role in the defense of our nation and maritime freedom.”

The first U.S. Navy warship named Minneapolis-Saint Paul was a Los Angeles-class submarine launched in 1983 that participated in Operation Desert Shield/Desert Storm. USS Minneapolis-Saint Paul (SSN 708) was the first submarine to carry Tomahawk missiles specifically designed for use in strikes against Iraq during the Gulf War. Having served for over two decades with distinction, the Navy decommissioned the submarine in 2007.

Littoral Combat Ships are a fast, agile, mission-focused platform designed to operate in near-shore environments, winning against 21st-century coastal threats. The LCS is capable of supporting forward presence, maritime security, sea control, and deterrence.

USS Minneapolis-Saint Paul will homeport at Naval Station Mayport, Florida.

The ceremony will be live-streamed at USS Minneapolis-Saint Paul Commissioning. The link becomes active approximately ten minutes before the event (9:50 a.m. CST).

Media may direct queries to the Navy Office of Information at (703) 697-5342. More information on the Littoral Combat Ship Program can be found at: https://www.navy.mil/Resources/Fact-Files/Display-FactFiles/Article/2169871/destroyers-ddg-51/.