Security News: Two Financial Asset Managers Charged in Alleged $1.2 Billion Venezuelan Money Laundering Scheme

Source: United States Department of Justice News

Two financial asset managers have been charged with money laundering as part of a $1.2 billion international scheme to launder funds corruptly obtained from Venezuela’s state-owned and state-controlled energy company, Petróleos de Venezuela S.A. (PDVSA).

According to the indictment returned today in the Southern District of Florida, Ralph Steinmann, 48, of Switzerland, and Luis Fernando Vuteff, 51, of Argentina, are each charged with one count of conspiracy to commit money laundering.

The court documents, which include a criminal complaint charging Steinmann and Vuteff on June 12, allege that beginning in or around December 2014 and continuing until at least August 2018, Steinmann and Vuteff conspired with others to launder the proceeds of an illegal bribery scheme using the U.S. financial system as well as various bank accounts located abroad. The conspirators laundered the illicit proceeds in connection with a corrupt foreign currency exchange scheme involving bribery of Venezuelan officials. 

Steinmann, Vuteff, and others allegedly discussed and agreed to create the sophisticated financial mechanisms and relationships required to launder more than $200 million related to the scheme as well as open accounts for or on behalf of at least two Venezuelan public officials to receive their bribe payments related to the scheme.

If convicted, the defendants face up to 20 years in prison for conspiracy to commit money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Vuteff has been arrested and is pending extradition from Switzerland. Steinmann remains at large.

Assistant Attorney General Kenneth A. Polite, Jr., of the Justice Department’s Criminal Division, U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami office made the announcement.

HSI Miami is investigating the case. This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force’s Operation Money Flight, a partnership between and among federal, state, and local law enforcement agencies.

Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kurt K. Lunkenheimer for the Southern District of Florida are prosecuting the case. 

The Justice Department’s Office of International Affairs and Swiss law enforcement authorities are providing substantial assistance in this matter.

The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

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

Defense News: SECNAV Delivers Remarks at the Joint Women’s Leadership Symposium

Source: United States Navy

Thank you Admiral Chatfield! I appreciate your continued leadership and what an honor it was to join you at the Naval War College commencement last month.

I was particularly proud to see so many women among the graduating class, for these are the leaders who will chart the future of our Navy, our Nation and our world. 

Chaplain Malana, thank you and your entire team at the Navy’s Office of Women’s Policy, for all you do for our entire Department.

I also thank the Sea Services Leadership Association for co-hosting today’s event, and for inviting me to speak at a gathering that could not be more relevant or timely. 

Just one look at both the number and quality of leaders we have in this audience serves as yet another testament to the undeniable and growing impact women are making in the sea services.

Most of all, I want to thank all of the great Sailors and Marines here today.

Each of you is part of the remarkable chain of women to don the cloth of our nation.

Next month, our Country will observe Women’s Equality Day, marking the anniversary of the passage of the 19th amendment. 

But we also remember that women were serving in uniform long before the right to vote was achieved – from the shipboard nurses of the Civil War, to the first female Marines in World War I.

We have come a long way in the century that followed, growing stronger every time the opportunity to serve was expanded.

So it is right to honor and learn from the past, but we must also stay committed to keep this momentum going.

Each of you is part of that greater march towards progress and you play a critical role in furthering the three enduring priorities of the Department of the Navy strategy to:

First, maintain and strengthen our maritime dominance so that we can deter potential adversaries, and fight and win decisively.

Second, empower our Sailors and Marines by fostering a culture of warfighting excellence, founded on strong leadership, dignity, and respect.

And third, enhance our strategic partnerships, across the Joint Force, industry, academia, and nations around the globe.

Right here in this room, the conversations you have and connections you make with each other are advancing those three priorities.

In commands across the fleet and on the front lines of our force, women are strengthening our maritime dominance through the Navy’s Navigation Plan and the Marine Corps Force Design 2030.

And I say this not just as your Secretary but as someone who has served with and worn the uniform alongside some extraordinary women in uniform.

As commanding officer, I was privileged to bring USS BULKELEY to life with some exceptional female shipmates as part of our commissioning crew, including now-CAPT Andrea Slough – XO of USS MAKIN ISLAND, who back then was my FCO who fired our first missile from the BULKELEY.

And now, women are commanding warships, strike groups and numbered fleets across the fleet, and I am proud that we have been joined by VADM Lisa Franchetti who has excelled in all three positions.

Meanwhile, women in the Marine Corps are leading amphibious and aviation units, bringing to life the Commandant’s vision of Force Design 2030.

And I’d be remiss if I did not recognize that one of our sister sea services also made history when Admiral Linda Fagan assumed duties as Commandant of the Coast Guard this June. 

You and your shipmates – men and women – provide the security and peace that millions of American families count on as they gather this summer.

And as you move up through the ranks and help mentor and build the next generation of Navy and Marine Corps leaders, you are ensuring the security of many more seasons to come.

Betty and I appreciate the sacrifices you make for our Nation.

As your Secretary of the Navy, I am committed to do everything I can to ensure that every Sailor and Marine is provided the environment and support for to thrive in his or her profession.

Because I believe, more strongly than ever, that joining and staying in the Navy and Marine Corps is a great choice for any young person in this country.

And I believe that the choice to remain in service offers even greater opportunities as you move up the ranks and take on greater levels of responsibility.

But I also realize that this choice to stay in service is a deeply personal one, and that it is incumbent upon our department to ensure that you know you and your service are valued. 

Quite simply, we could not do what we do in the Navy and Marine Corps without the grit, determination and adaptability of our female teammates. 

So I feel a strong personal responsibility to ensure that our Department is responsive to your ideas, your concerns, and your career needs.

I know that deployments and PCS moves can add to the already demanding burden of service.

I know that for dual service and single parent families those burdens can be especially acute.

And a life of service presents many challenges to single service members as well.

That’s why we are investing in the My Navy HR program and the Marine Corps Talent Management initiative, to help you navigate and build your career.

We are investing in mentoring programs to improve leader development, engagement and advocacy across the Department.

We are working hard to improve quality of life issues like housing, childcare, uniforms and grooming.

We are investing in training and education, so you can build your career while serving.

These opportunities range from vocational training and certifications, to college credits and advanced degrees, at little to no cost to you while you earn full pay and benefits. 

In May, I spoke at the United States Naval Academy graduation ceremony where over 300 women took the oath and commissioned as Ensigns and 2nd Lts.

They followed in the footsteps of the trailblazing women of the class of 1980, who trained me as Firsties when I entered the academy. 

My staff and my family would both tell you that my training continues!

I want to ensure that all who take that sacred oath today have the opportunity to keep learning and excelling throughout their careers, with the finest education opportunities we can provide.

For our Navy and Marine Corps, education is not just about attracting and retaining quality applicants. 

It is about creating a force of strategic thinkers and emotionally-intelligent leaders, capable of winning in combat, and fostering work environments rooted in collaboration, integrity, and respect.

Respect is at the core of our mission.

It is the heart of leadership.

And it is the firm expectation of all who serve.

As I have emphasized whenever I speak with Sailors or Marines, we all share a responsibility for building a culture of warfighting excellence, founded on leadership, dignity, and respect.

As part of that mission, we must all speak up, speak out, and take action to eliminate sexual assault and sexual harassment.

Disrespectful remarks, jokes, and actions contribute to an environment that increases the risk of assault, weakens our force, and puts our Nation at risk.

While I am deeply proud of the sea services, our work here is not done.

For we still occasionally have a culture where it’s possible for a talented aviator to be assigned a degrading call sign when they are in a ready room.

It is up to us to call out and correct these incidents when they occur. I can promise you that if and when I find out about any such incidents – immediate action is taken.

Over time, things like that risk us losing skilled and experienced leaders and denying the American people years of expertise and service.

It must be clear, at every level of command, that failure to take action in the face of destructive behaviors betrays our oath, betrays our fellow warriors, and betrays our country.

And it must be clear, throughout our fleet and force, that all who serve must have an equal opportunity to succeed and advance and feel valued.

General Berger, Admiral Gilday and I are determined to build a leadership cadre that truly represents our nation.

Our office of Diversity, Equity and Inclusion has developed an “underrepresentation framework” to ensure we examine barriers to employment and advancement.

I ask for your committed involvement in this effort as well. Reach back, and help us build that next generation of women in leadership.

To meet the demands of our complex security environment, we must recruit, educate, retain, mentor, and promote the best of all of America.

I know that building a culture of warfighting excellence starts right here. So let me be clear.

I want to retain your service.

I want you to thrive in service.

And I want you to lead our services into the future.

More than ever, we depend on patriotic and highly skilled women like you for the power and reach of our integrated Naval Force.

Take advantage of this opportunity to learn from each other today, and actively build on the connections and networks you are creating today.

Maintain those lines of communication as you return to the fleet and the force.

Communication is at the heart of my third strategic goal, which is enhancing our partnerships.

Think about the message it sends to our Allies and Partners that the largest warship in the current RIMPAC exercise, USS ABRAHAM LINCOLN, is commanded by a woman.

Consider what it means to the business community to see female veterans assume high ranking positions within our industrial partners.

Think about what it meant to our country to see so many women in our medical professions partnering with communities through the COVID-19 pandemic.

And imagine the impact it has on a kid who visits USS CONSTITUTION, to see our Nation’s flagship under a female Commanding Officer, Billie Farrell, the first in its long history.

Every first is a great achievement. But every first is also a poignant reminder of the many dreams deferred in our long Navy and Marine Corps history.

I want to get to the place where those firsts are commonplace.

We are not there yet. But you are leading us there, through the honor, courage, and commitment you bring to your service.

Let me know where I can clear the lanes for you. Where we fall short, let me know how we can improve.

In the end, all leadership comes down to trust. You trust your commanders and civilian leadership to put you in the best position to succeed.

And I trust that you put our naval force and our Nation first and make us better every day.

Thank you for the leadership, hard work and service you’ve demonstrated throughout your careers.

And thank you for your continued service today.

I am proud to serve at your side. Thank you.

Defense News: Navy Updates Sexual Assault Rules – What You Should Know

Source: United States Navy

The Navy released updates to the service’s Sexual Assault Prevention and Response policy and adult sexual assault investigation procedures in NAVADMIN 151/22 on July 12.

The update expands the ability of victims to file restricted sexual assault reports and updates procedures for expedited transfers for Sailors filing unrestricted reports.  

Effective immediately, sexual assault victims retain the right to file restricted reports even if they’ve already disclosed the assault to their commander or personnel in their chain of command.

The restricted report option is only available if the victim has not reported the assault to law enforcement, including military criminal investigative organizations (MCIO) such as the Naval Criminal Investigative Service.

The option is also not available to those who have elected to make an unrestricted report and have signed a DD Form 2910 in the presence of a Sexual Assault Response Coordinator (SARC) or SAPR Victim Advocate (VA) for the same incident.

Even with this change, commanders must still immediately report sex-related offenses within their chain of command to their requisite MCIO responsible for investigating such incidents. This includes notifying MCIOs of sexual assaults regardless of whether they occurred in their chain of command.

Also, this change doesn’t eliminate the requirement for military law involvement and criminal investigative organizations to investigate all reports and allegations of adult sexual assault. However, victims retain the right to not participate in the investigation.

Commands must explain these reporting requirements to each victim and ensure they understand these duties don’t impact their ability to file restricted or unrestricted reports.

The NAVADMIN also updated procedures for Sailors who file unrestricted sexual assault reports and request an expedited transfer. The new rules now give that member’s commander five days to review, approve or disapprove these requests, up from the previously required three days.

Complete details and contact points are available in the NAVADMIN.

For more news from the Chief of Naval Personnel, follow us on Facebook at https://www.facebook.com/mynavyhr, Twitter at https://twitter.com/mynavyhr, or visit https://www.navy.mil/cnp.

Security News: Folk Nation Leader Charged in Connection with March 22, 2022 Shooting

Source: United States Department of Justice News

An indictment was unsealed today in United States District Court for the Eastern District of New York charging Kwyme Waddell with being a felon in possession of ammunition.  As alleged in court filings, the charge is related to a shooting Waddell committed in Brooklyn on March 22, 2022 in which the defendant shot into a crowd of people on the block of East 21st Street between Ditmas Avenue and Dorchester Road shortly after 9:30 p.m. 

The defendant is one of the top leaders of the No Love City (NLC) subset of the Folk Nation Gangster Disciples, a violent street gang operating primarily in the area of Newkirk Avenue and Flatbush Avenue in Brooklyn.    

Waddell was arrested this morning in Brooklyn and is scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn.    

Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD) announced the charge and arrest.

“As alleged, the defendant brazenly fired eleven shots into a crowd of people.  Thankfully no one was harmed,” stated United States Attorney Breon Peace.  “This Office will continue to work tirelessly with all of our law enforcement partners to prosecute those who engage in gun violence, eliminate gangs from our streets and cut off the flow of guns that allow them to victimize our communities.” 

Mr. Peace expressed his appreciation to the FBI/NYPD Metro Safe Streets Task Force, the NYPD’s Gun Violence Suppression Division, and the Kings County District Attorney’s Office for their outstanding work and assistance in this investigation and prosecution.

“Today’s indictment is another step forward in our ongoing work to rid New York City of violent gangs, illegal guns, and the havoc they cause in our community,” said NYPD Commissioner Sewell. “Our focus remains on the people we serve, and we must ensure real consequences for anyone who puts New Yorkers at risk. To that end, I want to thank the U.S. Attorney’s Office for the Eastern District of New York, the King’s County District Attorney’s Office, the FBI’s New York Field Office, and all the investigators for their work on this case and for their steadfast commitment to public safety.”

As alleged in the indictment and other court filings, the charge relates to a shooting committed in Brooklyn on March 22, 2022 in which the defendant shot into a crowd of people on the block of East 21st Street between Ditmas Avenue and Dorchester Road shortly after 9:30 p.m.  As captured on surveillance video, Waddell drove to the location, fired at least eleven rounds at a crowd of people standing at the corner of Dorchester Road and East 21st Street, an area known as territory of NLC’s gang rivals.  Immediately following the shooting, Waddell bragged about the shooting to friends while pantomiming a gun with his hands, as captured on additional surveillance footage.      

The indictment is part of a coordinated effort to dismantle the Brooklyn sets of Folk Nation Gangster Disciples and their leadership by federal and state authorities, including the United States Attorney’s Office for the Eastern District of New York, the Kings County District Attorney’s Office, the Joint FBI-NYPD Safe Streets Task Force, and the NYPD’s Gun Violence Suppression Division.  As part of the federal-state initiative, the United States Attorney’s Office for the Eastern District of New York and the Kings County District Attorney’s Office have brought numerous prosecutions against members and associates of Folk Nation Gangster Disciples, including 11 members and associates of the Folk Nation Gangster Disciples charged with multiple shootings and related firearms offenses in Brooklyn.

The charge in the indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.

This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Sophia M. Suarez, Dana Rehnquist and Jonathan Siegel are in charge of the prosecution.

The Defendant:

KWYME WADDELL
Age:  30
Brooklyn, New York

E.D.N.Y. Docket No. 22-CR-305 (ENV)

Security News: Former South Florida Resident Convicted of Smuggling Illegal Refrigerant from China to U.S.

Source: United States Department of Justice News

Miami, Florida – Yesterday, 69-year-old Jorge Murrillo pled guilty in federal district court in Miami to conspiring to violate the Clean Air Act (CAA) by importing over 300,000 kilograms of illegal hydrochlorofluorocarbon-22 (HCFC-22), worth over $1.5 million, into the United States from China.  HCFC-22 is a widely used refrigerant for residential heat pump and air-conditioning systems.

The CAA regulates air pollutants, including ozone depleting substances such as HCFC-22.  The CAA and its implementing regulations established a schedule to phase out the production and importation of ozone depleting substances, with a complete ban starting in 2030.  To meet its obligations under an international treaty to reduce its consumption of ozone depleting substances, the United States issued baseline consumption allowances for the production and importation of HCFC-22 to individuals and companies.  To legally import HCFC-22, one must hold an unexpended consumption allowance.

According to court records and a Factual Statement filed in Court, Murrillo smuggled large quantities of HCFC-22 into the United States to sell on the black market.  Murrillo and his co-defendant would negotiate with a Chinese manufacturer for the purchase of large quantities of HCFC-22 and then import them into South Florida ports.  At no point did Murrillo or his companies or associates hold unexpended consumption allowances that would have allowed the legal importation of HCFC-22.  Between June and August 2007, Murrillo conspired to, and otherwise smuggled, approximately 309,536 kilograms of HCFC with a market value of $1,525,670, into the U.S. Murrillo resided outside the United States from the time of his indictment in 2012 until his arrest in Miami in May 2022. 

Murrillo’s co-defendant, Norberto Guada, was previously convicted, in 2012, of illegally importing HCFC-22, and served a federal prison sentence.

Senior U.S. District Judge Donald L. Graham has set Murrillo’s sentencing hearing for September 20, at 11:00 a.m., in federal district in Miami.  Murrillo faces up to five years in prison. 

Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, Charles Carfagno, Special Agent in Charge, U.S. Environmental Protection Agency (EPA), Criminal Investigation Division, Southeast Area Branch and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, announced the conviction.   

EPA, Criminal Investigation Division and HSI Miami investigated the case. Customs and Border Protection assisted.  Special Assistant U.S. Attorney Jodi A. Mazer and Assistant U.S. Attorney Thomas Watts-FitzGerald are prosecuting it.  

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 12-cr-20514.

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