Month: September 2022

Source: United States Department of Justice News

A federal jury convicted three men for conspiring to participate in La Mara Salvatrucha, a transnational criminal enterprise, commonly known as MS-13, through a pattern of racketeering activity, including murder, extortion, drug trafficking, money laundering, and witness tampering.

According to court documents and evidence presented at trial, Luis Flores-Reyes, aka Maloso, aka Lobo, 41, of Arlington, Virginia; Jairo Jacome, aka Abuelo, 40, of Langley Park, Maryland; and Brayan Contreras-Avalos, aka Anonimo, aka Malia, aka Humilde, 27, of Langley Park, Maryland, ran a protection scheme with MS-13 in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.”

MS-13 is organized into a series of sub-units or “cliques” that operate in specific geographic locations. Jacome was the highest-ranking member in a local clique called Langley Park Salvatrucha, or LPS. Flores-Reyes and Contreras-Avalos were leaders within the powerful Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador.

“MS-13 terrorizes communities throughout the United States and abroad, using fear, violence, and intimidation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This conviction demonstrates the Department of Justice’s commitment to dismantling this violent criminal organization.”

Flores-Reyes, Jacome, and Contreras-Avalos also participated in at least six murders during the period of the conspiracy, mostly of victims who they believed to be gang rivals. In June 2016, members of MS-13, including Contreras-Avalos, stabbed to death two homeless individuals, who were believed to be members of the 18th Street gang, in Hyattsville, Maryland.

The gang also trafficked in illegal drugs, including marijuana, heroin, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.

“These defendants wreaked havoc within our communities through drug trafficking, extortion, fear, and murder – now they will be held accountable,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We will relentlessly prosecute those who terrorize our communities with intimidation and violence.”

In March 2017, a member of the Sailors Clique, who was hiding from law enforcement in the Lynchburg, Virginia-area, had a dispute with a local high school student over marijuana. In response, Flores-Reyes commanded a squad of MS-13 members drive to Lynchburg and murder the high school student. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, Flores-Reyes helped to hide and protect the killers from law enforcement.

Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. In December 2016, Jacome directed and participated in the murder of a 14-year-old member of MS-13 who was suspected of talking to the police. The boy’s remains were discovered 18 months later in the woods outside of Germantown, Maryland.

“Members of MS-13, including Flores-Reyes, Jacome, and Contreras-Avalos, sow fear and violence in local communities through murder, extortion, drug trafficking, and witness tampering,” said Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office. “Today’s convictions represent some of the finest work the FBI and its partners undertake to hold violent gang members to account for the irreparable harm they have inflicted on humanity. The investigation and its results should also serve as yet another reminder of the consequences to be faced by those who traffic in violence. We and our partners remain committed to working together to aggressively pursue and dismantle these criminal enterprises who continue to threaten the residents of our communities.”

“Today’s conviction highlights HSI’s commitment to protecting public security and the keeping our communities safe,” said Acting Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI). “We will continue working with our  local, state, and federal partners to disrupt and dismantle transnational criminal organizations such as MS-13.”

Flores-Reyes, Jacome, and Contreras-Avalos were each convicted of racketeering conspiracy. Flores-Reyes and Jacome were additionally convicted of murder in aid of racketeering and extortion conspiracy, and Flores-Reyes and Contreras-Avalos were convicted of conspiracy to distribute controlled substances. No sentencing date has been set. Flores-Reyes and Jacome face a mandatory penalty of life in prison. Contreras-Avalos faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Washington Field Office, HSI Baltimore, DEA New York Field Division, DEA Baltimore District Office, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, and Bedford County Sheriff’s Office investigated the case. The Nassau County District Attorney’s Office also provided valuable assistance.

Trial Attorney Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Timothy Hagan and Christopher Sarma for the District of Maryland are prosecuting the case.

Source: United States Department of Justice News

CHICAGO — A federal grand jury has indicted a man on carjacking and firearm charges for allegedly violently stealing a vehicle from a woman in Chicago earlier this year.

MONTE HANDLEY, 18, of Chicago, stole a Nissan Sentra on Jan. 17, 2022, according to an indictment returned in U.S. District Court in Chicago.  The carjacking allegedly occurred in the 5000 block of South Kolin Avenue in the Archer Heights neighborhood on Chicago’s Southwest Side.  In addition to the driver, another woman and a one-year-old child were passengers in the vehicle at the time of the alleged carjacking.

The indictment charges Handley with carjacking and using, carrying, and brandishing a firearm during a crime of violence.  The carjacking count is punishable by up to 15 years in federal prison.  The firearm count carries a minimum prison term of seven years and a maximum of life, which must be served consecutively to any sentence imposed for the alleged carjacking. 

Handley is currently in law enforcement custody.  Arraignment in federal court is set for Oct. 5, 2022, at 1:30 p.m. before U.S. Magistrate Judge Sunil R. Harjani.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department.  The Illinois State Police provided valuable assistance in the investigation.  The government is represented by Assistant U.S. Attorneys Emily Vermylen and Prashant Kolluri.

The public is reminded that an indictment is not evidence of guilt.  The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.

Source: United States Department of Justice News

Good morning, and thank you for that introduction, Jennifer. It’s an honor to be here in Houston at Jack Yates and to share this stage with so many dedicated public servants.

My name is Kenneth Polite and I am your Assistant Attorney General for the Justice Department’s Criminal Division. I have the honor of supervising over 1,400 public servants, tasked with working on wide range of criminal justice priorities. I can tell you that there is no greater obligation than to keep the American people safe.

Our gathering here this morning is our latest example of our commitment to fighting violent crime.

All of the public servants here – our U.S. Attorney, our District Attorney, our Police Chief, our Sheriff, our leaders of the local offices of the FBI and ATF – they are all in this community, each and every day, fighting to save lives on the streets of Houston.

I am honored to announce that the Criminal Division will be amplifying their work. In partnership with the U.S. Attorney’s Office for the Southern District of Texas and our law enforcement partners, the Criminal Division is standing up a targeted initiative to fight violent crime in Houston. Together, we will surge the tools and resources we use to investigate and prosecute violent crime nationally, including the use of RICO charges, and apply those tools to gangs who are terrorizing communities here in Houston.

This new initiative, will include prosecutors from the Criminal Division’s Organized Crime and Gang Section, our nation’s foremost experts in charging RICO prosecutions, alongside prosecutors from the U.S. Attorney’s Office for the Southern District of Texas, as well as dedicated investigative agents, analysts, and forensic experts from the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Houston Police Department, the Harris County Sherriff’s office, as well as many other federal, state and local law enforcement agencies.  

Together, we will employ a data-driven approach to identify and prosecute the “worst of the worst” gangs and gang members who are disproportionately responsible for violent crime in underserved communities in Houston.  

Everyone should feel safe in their homes and neighborhoods. Violent crime deprives communities of this fundamental security. Unfortunately, I know all too well that the constant drumbeat of violence keeps many from walking safely in their streets during the day or sleeping soundly in their beds at night.

This mission touches close to home for me. I come from a family of law enforcement officers, including my brother Damion who proudly serves on the Houston Police Department. And like many in this community, violent crime has taken family from me.

So preventing others from suffering that same loss to violent crime is what motivated me to serve the Department of Justice as a line prosecutor, as a U.S. Attorney, and now, as the Assistant Attorney General. We will never stop being vigilant in our pursuit of justice, particularly for victims of violent crime. 

But we cannot rely on prosecution or incarceration or enforcement alone to make our neighborhoods safer. Enforcement is a tool, and an important one, but it is not our only tool.

That is why this initiative will include efforts to invest not just in enforcement, but prevention, intervention, and reentry. We will do so in partnership with the department’s Office of Justice Programs.

In that regard, I am pleased to share that just this morning the Department of Justice announced $100 million in grants to help communities across the United States reduce gun crime and other serious violence. Included in that announcement is a $2 million award to Harris County, right here in Houston. I am proud to have Cornelia Sigworth here this morning who will provide more details on OJP’s work.

But be clear, we cannot achieve long-term success in any of these areas without the trust and assistance of the community we seek to serve and protect. We need members of the public to step forward and speak out against violence occurring in their communities.

And while enforcement may remove criminal actors from the community, it can only improve that community in the long-term where members of the community stand with us to invest in prevention, intervention, and reentry efforts that will break those cycles of violence.

We will work hard today, and every day, to build and strengthen those relationships of community trust. That’s why my team and I have been in the community, not just with our law enforcement partners, but meeting with faith leaders, community organizers, students, and educators from Jack Yates, and business owners in the Third Ward this afternoon.

Know that we will be part of this community going forward, far after any single prosecution ends. We are not above, below, our outside of this community. We are part of it. To all those assembled, to all those in this community, know that the Criminal Division stands ready to serve as your partner in this critical fight to combat and prevent violent crime.

I will now turn the podium over to U.S. Attorney Jennifer Lowery.

Source: United States Department of Justice News

A Colorado Springs man will make his initial appearance in federal court today on charges that he attempted to transmit classified National Defense Information (NDI) to a representative of a foreign government.

Jareh Sebastian Dalke, 30, was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer from June 6, 2022, to July 1, 2022. According to the affidavit in support of the criminal complaint, between August and September 2022, Dalke used an encrypted email account to transmit excerpts of three classified documents he had obtained during his employment to an individual Dalke believed to be working for a foreign government. In actuality, that person was an undercover FBI agent. Dalke subsequently arranged to transfer additional classified information in his possession to the undercover FBI agent at a location in Denver, Colorado. The FBI arrested Dalke on Sept. 28, after Dalke arrived at the specified location.

According to the affidavit in support of the criminal complaint, Dalke began communicating on or about July 29, 2022, via encrypted email with an individual he believed to be associated with a foreign government. Dalke told that individual that he had taken highly sensitive information relating to foreign targeting of U.S. systems and information on U.S. cyber operations, among other topics. Dalke represented to the undercover FBI agent that he was still employed by the U.S. government but said he was on a temporary assignment at a field location. Dalke requested compensation via a specific type of cryptocurrency in exchange for the information he possessed and stated that he was in financial need.

To prove he had access to sensitive information, Dalke transmitted excerpts of three classified documents to the undercover FBI agent. Each excerpt contained classification markings. One excerpt was classified at the Secret level, and two excerpts were classified at the Top Secret level. In return for this information, the FBI undercover agent provided the requested cryptocurrency to an address Dalke provided.

On or about Aug. 26, 2022, Dalke requested $85,000 in return for additional information in his possession. Dalke also told the FBI undercover agent that he would share additional information in the future, once he returned to the Washington, D.C., area. Although he was not employed by the NSA while communicating with the FBI, Dalke re-applied to the NSA in August 2022.

Dalke agreed to transmit additional information using a secure connection set up by the FBI at a public location in Denver. On Sept. 28, at that location, the FBI arrested Dalke based on a signed criminal complaint.

Dalke is charged by criminal complaint alleging three violations of the Espionage Act, which makes it a crime to transmit or attempt to transmit NDI to a representative of a foreign nation with intent or reason to believe that information could be used to the injury of the United States or to the advantage of a foreign nation. The Espionage Act carries a potential sentence of death or any term of years up to life.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Cole Finegan for the District of Colorado; Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division; Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office and Acting Special Agent in Charge Cheryl Mimura of the FBI Denver Field Office made the announcement.

Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler for the District of Colorado, and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting on behalf of the government. The case is being investigated by the FBI Denver Field Office and the FBI Washington Field Office.

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

Source: United States Department of Justice News

The Justice Department today announced it has secured an agreement to resolve allegations that Evolve Bank & Trust, which is headquartered in Memphis, engaged in lending discrimination on the basis of race, sex and national origin in the pricing of its residential mortgage loans from at least 2014 through 2019.

Evolve Bank maintains mortgage lending offices and provides mortgage lending services in 15 states throughout the country. Under the department’s settlement, which is subject to the approval of the District Court, Evolve Bank will establish a settlement fund of $1.3 million to compensate affected borrowers. Evolve Bank will also pay a $50,000 civil penalty.

“This settlement will provide deserved relief to thousands of borrowers who suffered discrimination due to Evolve Bank’s pricing policies,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This case marks the Justice Department’s latest step to protect Americans from illegal lending practices, and shows that we will hold lenders accountable for the effects of their discriminatory practices.”  

“This settlement provides some measure of justice to those wronged by Evolve Bank’s discriminatory acts,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “I also hope it sends a strong message to banks and other lenders that the Department of Justice won’t stand for unlawful barriers in residential mortgage lending.  It’s past time for these practices to stop.”

The department opened its investigation after the Board of Governors of the Federal Reserve System referred the matter.  Consistent with federal law, the Board has long referred matters involving potential fair lending violations to the Department of Justice. 

According to the complaint, the Justice Department alleges that Evolve Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, sex or national origin in their mortgage lending services. Specifically, the complaint alleges that, from at least 2014 through 2019, Evolve Bank’s loan pricing practices resulted in Black, Hispanic and female borrowers paying more in the “discretionary pricing” components of home loans than white or male borrowers for reasons unrelated to their creditworthiness. “Discretionary pricing” means the parts of a loan price that are left up to Evolve’s loan officers and managers, including fees, charges or rate discounts that don’t relate to the borrowers’ credit qualifications or loan characteristics.

Since being notified of the department’s investigation of this matter, Evolve has taken steps to revise its policies and practices that resulted in Black, Hispanic and female borrowers paying more for home loans than white or male borrowers. During the four-year term of the proposed consent order, Evolve will maintain policies that reduce loan officer discretion, employ a fair lending officer who will work in close consultation with the bank’s leadership and provide fair lending training to its personnel.

The department’s Civil Rights Division has long been engaged in work that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race, sex or national origin. In January 2021, President Biden reaffirmed the critical role of the federal government in addressing legacies of housing segregation and discrimination, declaring that it is the policy of this Administration to eliminate “racial bias and other forms of discrimination in all stages of home-buying and renting.”

The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at the Justice Department webpage. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, or submitting a report online.