Security News: Frame and Receiver Rule Goes into Effect

Source: United States Department of Justice News

New Rule Modernizes Firearm Definitions and Addresses ‘Ghost Gun’ Proliferation

Today, the Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) “Frame or Receiver” Final Rule goes into effect. The new rule modernizes the definition of a firearm and makes clear that parts kits that are readily convertible to functional weapons, or functional “frames” or “receivers” of weapons, are subject to the same regulations as traditional firearms. This rule will help curb the proliferation of “ghost guns,” which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace and easy to acquire by criminals.

“Last year, the Justice Department committed to modernizing our regulations to address the proliferation of ‘ghost guns’ that law enforcement officers across the country have increasingly recovered from crime scenes,” said Attorney General Merrick B. Garland. “These guns have often been sold as build-your-own kits that contain all or almost all of the parts needed to quickly build an unmarked gun. And anyone could sell or buy these guns without a background check.

“That changes today. This rule will make it harder for criminals and other prohibited persons to obtain untraceable guns. It will help to ensure that law enforcement officers can retrieve the information they need to solve crimes. And it will help reduce the number of untraceable firearms flooding our communities. I am grateful to the professionals across the Department who worked tirelessly to get this important rule finalized and implemented, and who did so in a way that respects the rights of law-abiding Americans.

“The Justice Department will continue to do everything within its power to protect our communities from violent crime and put an end to the plague of gun violence.”

The rule, which was posted in the Federal Register in April, will address the proliferation of these un-serialized firearms in several ways. These include:

  1. To help keep guns from being sold to convicted felons and other prohibited purchasers, the rule makes clear that retailers must run background checks before selling kits that contain the parts necessary for someone to readily make a gun.
  2. To help law enforcement trace guns used in a crime, the rule modernizes the definition of frame or receiver, clarifying which part of a weapon must be marked with a serial number – including in easy-to-build firearm kits.
  3. To help reduce the number of unmarked and hard-to-trace “ghost guns,” the rule establishes requirements for federally licensed firearms dealers and gunsmiths to have a serial number added to 3D printed guns or other un-serialized firearms they take into inventory.
  4. To better support tracing efforts, the rule requires federal firearms licensees, including gun retailers, to retain records for the length of time they are licensed, thereby expanding records retention beyond the prior requirement of 20 years. Over the past decade, ATF has been unable to trace thousands of firearms – many reportedly used in homicides or other violent crimes – because the records had already been destroyed. These records will continue to belong to, and be maintained by, federal firearms licensees while they are in business.

The proliferation of privately made firearms (PMFs), also known as “ghost guns”, are a growing problem for law enforcement efforts to reduce violent crime. Recent federal prosecutions by the Chicago Firearms Trafficking Strike Force show the impact:

  • An Orland Hills, Ill., man was charged with illegally selling 36 firearms, including “ghost guns” and machine guns, in the Chicago area. Many of the transactions occurred in a car wash in a Chicago suburb.
  • Two Indianapolis men were charged with federal firearm violations for allegedly trafficking 10 guns, including four semiautomatic rifles and two “ghost guns,” from Indianapolis to Chicago.
  • A Chicago resident was charged with trafficking more than a dozen guns, including a “ghost gun” and a machine gun, in Chicago.
  • Five men were indicted for allegedly trafficking guns from St. Louis to Chicago.

As the final rule explains, from January 2016 to December 2021, ATF received approximately 45,240 reports of suspected PMFs recovered by law enforcement, including in 692 homicide or attempted homicide investigations.

In April 2021the Attorney General announced that the ATF would be issuing a proposed rule within 30 days to address the proliferation of unmarked firearms increasingly being used in crimes. On May 7, 2021, the Department of Justice issued a notice of proposed rulemaking, and during the 90-day open comment period, the ATF received more than 290,000 comments, the highest number of comments submitted to a proposed rule in the Justice Department’s history.

The final rule, as submitted to the Federal Register, can be viewed here: https://www.atf.gov/rules-and-regulations/definition-frame-or-receiver.

Security News: Former Investment Bank Employee Arrested for Cyberstalking

Source: United States Department of Justice News

NEWARK, N.J. – A former investment bank employee was arrested today in Hudson County, New Jersey, for cyberstalking former bank colleagues, U.S. Attorney Philip R. Sellinger announced.

Gawargyous, aka “George,” Shind, 31, of Jersey City, New Jersey is charged by complaint with cyberstalking. Shind is scheduled to appear by videoconference today before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court.

According to documents filed in this case and statements made in court:

From April 2020 to November 2021, Shind engaged in a pattern of harassment directed towards at least four female victims by employing means of electronic communications, including text messages and computing services platforms, to threaten grievous bodily injury and death. Shind began a campaign of cyberstalking multiple victims after his termination from a bank where he and the victims were employed. Shind sent messages stating his intention to kill the victims and their families and referred to himself as a “predator.”  

The charge of cyberstalking is punishable by five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. 

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Barry O’Connell of the General Crimes Unit in Newark.

The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Security News: Pound, Va. Man Convicted as Part of Massive Scheme to Steal Pandemic Unemployment Benefits

Source: United States Department of Justice News

ABINGDON, Va. – A federal jury convicted a Pound, Virginia man on August 11, 2022 for conspiring to steal pandemic unemployment benefits as part of a larger scheme involving at least 37 other co-conspirators.

Danny L. Mullins Jr., 50, was convicted following a two-day jury trial of conspiracy to defraud the United States, fraud in connection with federal emergency benefits, conspiracy to commit mail fraud, mail fraud, and aggravated identity theft.

According to court documents and evidence presented at trial, Mullins received more than $18,000 in fraudulent benefits by conspiring with others, including his sister, Veronica Mullins, and conspiracy leaders Danielle Chytka, Greg Tackett, and Jeffrey Tackett, to input his personally identifiable information to the Virginia Employment Commission in order to receive pandemic unemployment benefits to which he was not entitled. 

In all, the conspiracy involved submitting fraudulent claims for approximately 37 individuals, including multiple inmates incarcerated in southwest Virginia regional jails, all of whom were not eligible to receive pandemic unemployment benefits, and causing at least $499,000 in false claims to be paid. 

Mullins will be sentenced on November 7, 2022 and faces a maximum penalty of 30 years in prison and a fine of up to $1,000,000.

United States Attorney Christopher R. Kavanaugh of the Western District of Virginia, Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor – Office of Inspector General, and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service- Criminal Investigation, Washington, D.C. Field Office made the announcement.

The Department of Labor – Office of the Inspector General, the Internal Revenue Service – Criminal Investigation – Washington, D.C. Field Office, the Norton Police Department investigated the case. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant United States Attorneys Daniel J. Murphy and Lena Busscher prosecuted the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Security News: Hartford Men Indicted for June Credit Union Robbery

Source: United States Department of Justice News

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief Jason Thody today announced that ZAIQWAN FOTHERGILL, 20, and HAKEEM ROBINSON, 27, both of Hartford, have been charged with robbing a Hartford credit union in June.

An indictment, which was returned by a grand jury in Hartford on August 4, alleges that, on June 29, 2022, Fothergill and Robinson used a firearm to commit a robbery of the Cencap Federal Credit Union located at 2775 Main Street in Hartford.

The two-count indictment charges Fothergill and Robinson with armed bank robbery, an offense that carries a maximum term of imprisonment of 25 years, and with using, carrying and brandishing a firearm in furtherance of a crime of violence, an offense that carries a mandatory consecutive term of imprisonment of at least seven years.

Hartford Police officers arrested Fothergill and Robinson in Keney Park in Hartford shortly after the robbery.  They have been detained since their arrests.

Robinson appeared yesterday before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and entered a plea of not guilty.  Fothergill’s arraignment is scheduled for September 6.

U.S. Attorney Avery stressed that an indictment is not evidence of guilt.  Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the Federal Bureau of Investigation’s Connecticut Violent Crime Task Force and the Hartford Police Department.  This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.

Security News: Company Operating Aluminum Processing Facility in the Dalles Charged with Clean Air Act Violations

Source: United States Department of Justice News

PORTLAND, Ore.—An Illinois-based company that operates an aluminum processing facility in The Dalles, Oregon has been charged with violating the Clean Air Act by negligently releasing a hazardous air pollutant from its facility, endangering employees and nearby community members.

Hydro Extrusion USA (Hydro), a limited liability corporation based in Rosemont, Illinois, has been charged by criminal information with negligent endangerment under the Clean Air Act.

“Enforcing emissions standards for hazardous air pollutants is critical to protecting the air we breathe and ensuring companies play by the rules,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office. “We will vigorously prosecute any company that risks the health and safety of its workers or our communities.”

“Our nation’s environmental laws are designed to protect our communities from hazardous pollutants,” said Special Agent in Charge Scot Adair of the Environmental Protection Agency’s (EPA) criminal investigation program in Oregon. “The criminal charge filed in this case demonstrates that companies that negligently violate those laws will be held responsible for their crimes.”

According to court documents, Hydro operates a secondary aluminum processing facility in The Dalles where it melts aluminum scrap in induction furnaces to produce reusable aluminum billets. While operating, air emissions from the company’s furnaces were open to the interior of the building and did not pass through any pollution control devices before reaching employees or being vented to ambient air.

Under the Clean Air Act, secondary aluminum production facilities are only permitted to use “clean charge,” aluminum scrap free of paints, coatings or lubricants. Despite this requirement, from July 2018 through June 2019, Hydro acquired and melted scrap aluminum coated in a mineral-oil based mixture that, when combusted, produced hazardous smoke. During this time, Hydro employees noticed excessive smoke in the facility. Despite being notified by inspectors from EPA and the Oregon Department of Environmental Quality (Oregon DEQ), Hydro continued melting the unclean charge.

Hydro has fully cooperated with the government’s investigation of this matter and agreed to plead guilty.

This case was investigated by the EPA Criminal Investigation Division (EPA-CID) with assistance from Oregon DEQ. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.

A criminal information is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.