Security News: Full Restitution Payment Obtained from Three Former Portland-Area Strip Club Operators Convicted of Fraud

Source: United States Department of Justice News

PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that full restitution of over $600,000 was obtained from the former operators of two Portland-area strip clubs who were convicted at trial in 2016 for conspiring to defraud the IRS and Oregon Department of Revenue out of hundreds of thousands of dollars in business taxes owed.

On Sept. 23, 2022, the Clerk of the Court for the District of Oregon received a payment of $608,217, which was full payment of the outstanding restitution balance of David, George, and Daniel Kiraz. The Kirazes previously had paid less than ten percent of their original $657,243 restitution order.

 “I am proud of our Financial Litigation Program for their hard work in securing this full restitution payment, and for their commitment to helping crime victims by diligently investigating these cases,” said Natalie Wight, U.S. Attorney for the District of Oregon.

“Today’s restitution payment is the culmination of many years of dogged effort made by our agency and by our partners at the U.S. Attorney’s Office. This is a success we can all share in, as the funds secured today will be used for the benefit of our communities,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office.

According to court documents, David Kiraz, 40, of Happy Valley, Oregon, along with his father and brother—George Kiraz, 62, and Daniel Kiraz, 37, both of Portland—operated two Portland-area strip clubs, the Cabaret Lounge on West Burnside Street in Portland and Cabaret Lounge II on Southeast Stark Street in Gresham, Oregon. From 2007 through 2010, these clubs collected more than $1.5 million in cash for cover charges and dancer stage fees.

To conceal their total business income from the IRS, the Kirazes maintained a set of books at their clubs that did not include their cash payments, while maintaining a second set of books at David Kiraz’s home that tracked their actual receipts in full. The Kirazes reported their business activity on David Kiraz’s personal income tax return and provided their tax return preparers with only a two-page business financial summary compiled from their manipulated records. Together, these actions resulted in David Kiraz intentionally underreporting more than $1.5 million in taxable income and causing a combined state and federal tax loss of more than $649,000.

On April 8, 2015, a federal grand jury in Portland returned a seven-count indictment charging the Kirazes with conspiring with one another to defraud the United States, filing false income tax returns, and aiding and assisting in the preparation of false income tax returns. On May 26, 2016, after a six-day trial, they were found guilty

On Tuesday, October 25, 2016, David and George Kiraz were sentenced to three years in federal prison and three years of supervised release. Daniel Kiraz was sentenced to one year and one day in federal prison.

This case was originally investigated by IRS:CI. It was prosecuted by Quinn Harrington and Seth Uram, Assistant U.S. Attorneys for the District of Oregon, and Leslie Goemaat, Trial Attorney for the Justice Department’s Tax Division. 

Enforcement of the Kirazes’ restitution order was handled by Assistant U.S. Attorney Jessie D. Young and the staff and investigators of the U.S. Attorney’s Office’s Financial Litigation Program.

The District of Oregon’s Financial Litigation Program (FLP) is part of the U.S. Attorney’s Office’s Asset Recovery and Money Laundering Division. The mission and goal of FLP is to fairly achieve the maximum recovery of civil and criminal debts consistent with applicable laws, regulations, and Justice Department policies. FLP attorneys and support staff work with individuals subject to restitution orders to bring closure for crime victims and recoup losses incurred by United States taxpayers.

Defense News: See Yourself in Cyber: Navy Observes Cybersecurity Awareness Month

Source: United States Navy

Since 2004, the President of the United States and Congress have declared October Cybersecurity Awareness Month, helping individuals protect themselves online as threats to technology and confidential data become more common. Celebrating its nineteenth year, the campaign has grown globally since its inception, reaching consumers, small and medium-sized businesses, corporations, and families in over 75 countries and territories.

The Navy is adopting the National Cybersecurity Alliance’s Cybersecurity Awareness Month theme of “See Yourself in Cyber,” demonstrating that while cybersecurity may seem like a complex subject, ultimately, it’s really all about people. Information and resources will be provided to help educate partners and the public, ensuring all individuals and organizations make smart decisions whether on the job, at home or at school – now and in the future.

“Any individual logging on to a Navy information system immediately becomes a cyber warrior,” said Rear Adm. Tracy Hines, Director of the Navy’s Enterprise Networks and Cybersecurity Division. “A single user can impact our global force, and vigilance by everyone will make the difference between continued mission success or the failure to meet the tasking of our nation.”

Every day across the Department of Defense information network there are 48 million e-mails processed, 174.8 billion cybersecurity events, 420 million marketing and phishing attacks, and 1.5 billion malicious cyber attacks blocked.

The Navy is increasingly reliant on technology and cyberspace to conduct its missions and protect the United States. Unlike traditional combat, a cyber attack has the ability to reach multiple areas of destruction in very little time due to the nature of communications systems. A successful cyber intrusion of the Navy’s network can jeopardize systems and data that affect nearly every aspect of the Navy’s mission.

A larger cyber footprint, coupled with technological advances among adversaries, has increased the Navy’s risk for potential cyber intrusions. All those who access Navy information systems need to understand that their decisions in the digital environment are either an asset or a threat to protecting the Navy’s networks, and also a threat to them and their families outside the work environment.

“In the spirit of the Chief of Naval Operations’ Get Real Get Better campaign, it’s important to acknowledge what our cybersecurity weaknesses are so we can improve,” said Rear Adm. Hines. “Throughout this month we will be sharing cybersecurity best practices, and I invite you to challenge yourself, your colleagues, and your command to take a collective responsibility in protecting the Navy’s cyber infrastructure.”

For more information on the Navy’s Cybersecurity Awareness Campaign, visit doncio.navy.mil and search “Cybersecurity Awareness Month.”

Defense News: Navy Recruiting Command Announces Mission Results for Fiscal Year 2022 and Goals for 2023

Source: United States Navy

150304-N-VN372-003 HOUSTON, Texas — (March 4, 2015) Approximately 100 future Sailors from across Navy Recruiting District (NRD) Houston took the Oath of Enlistment Wednesday, March 4, during a joint swear in ceremony at the Houston Rodeo. The Navy’s goal is to hire the best men and women to accomplish today’s missions and meet tomorrow’s challenges. Navy Recruiting District Houston seeks out quality candidates throughout the surrounding areas, helping the Navy meet their hiring goals while also conducting volunteer activities designed to help give back the city of Houston and the surrounding communities they serve. (U.S. Navy photo by Mass Communication Specialist 1st Class Chris Fahey/RELEASED)

The Navy finished FY22 with the following numbers:
FY22 Goal Actual
Enlisted (Active) 33,400 33,442
Officer (Active) 2,507 2,298*
Enlisted (Reserve) 7,400 5,442*
Officer (Reserve) 1,360 982*
*Preliminary numbers, which may change slightly based on Sept. 30 activity.

“We’ve completed a very challenging year, and I am very proud of the tremendous efforts our Recruiters gave to bring in the nation’s top talent and build the future of the fleet,” Rear Adm. Alexis “Lex” Walker, Commander, Navy Recruiting Command said. “The coming year promises to be even more challenging, as we are not starting the year in as strong a position as FY22. In order to achieve our mission goals this year, we will need an all-hands-on-deck effort, not only from our recruiters, but from throughout the active and reserve fleet, our retired Navy veterans, and our community leaders around the country who are centers of influence in the lives of the young people we are trying to recruit. We are going to do everything within our power to ensure that our recruiters are empowered and have the assets they need in order to accomplish the mission.”

BALTIMORE (Sept. 8, 2022) Rear Adm. Nancy Lacore, Commandant, Naval District Washington, celebrates with future Sailors from the Baltimore area after administering the oath of enlistment aboard the historic ship USS Constellation during Maryland Fleet Week and Flyover Baltimore. Maryland Fleet Week and Flyover is Baltimore’s celebration of the sea services and provides an opportunity for the citizens of Maryland and the city of Baltimore to meet Sailors, Marines, and Coast Guardsmen, as well as see firsthand the latest capabilities of today’s maritime services. (U.S. Navy photo by Mass Communication Specialist 3rd Class Maurice Brown)

While the enlisted active accessions reached their mission goal, this came at a heavy price. The Navy entered FY22 with a relatively healthy Delayed Entry Program (DEP) pool and finished the year with the lowest DEP pool in 40 years. DEP allows future Sailors to be contracted to join but remain on hold before shipping off to Recruit Training Command (boot camp). The goal of the program is to acclimate future service members to the military environment, military rank structure, history, customs and courtesies and to improve their physical fitness prior to shipping out. It also allows the military flexibility in when they ship future service members to regulate the flow of future Sailors to boot camp and follow on training schools.

Draining the DEP pool to critically low levels brings many new challenges for the upcoming year. Around a third of those remaining in DEP are future Sailors who are seniors in high school, who cannot ship until after graduation in May/June 2023. So the Navy is expected to be in a contract-and-ship posture, where future Sailors are shipped to boot camp within weeks or even days of contracting to serve. This posture is expected to persist through FY23.

The goals for FY23 are below:
FY23 Goal
Enlisted (Active) 37,700
Officer (Active) TBD*
Enlisted (Reserve) 8,100
Officer (Reserve) 1,732
*Active Officer goals are usually released during the first quarter of the FY

In an effort to bring more future Sailors into the DEP pool, the Navy has been offering multiple incentives to generate a greater interest in naval service among qualifying applicants. In August, Navy Recruiting Command (NRC) announced enlistment bonuses up to $50,000 and student loan repayment up to $65,000. This offers the opportunity for future Sailors to earn a substantial sum as they begin their careers. The loan repayment program remains in place for FY23, and the bonus structure for the start of FY23 is posted at this link, with a maximum bonus remaining $50,000:
https://www.cnrc.navy.mil/Portals/87/Documents/Bonus%20Loans/FY22/CNRC_EB_LRP%20GENADMIN_SEPTEMBER2022_effective17SEP.pdf?ver=CiJD5usN-CcYkKX__9wvuw%3d%3d×tamp=1663602235466

“The maximum current enlistment bonus is $50,000, and the maximum loan repayment is $65,000,” said Walker. “They are not mutually exclusive, so if a future Sailor maximizes both, that adds up to a life-altering $115,000, and the opportunity to serve in the world’s finest Navy.”

In addition to bonuses and loan repayment, leadership throughout the Navy is engaged in helping to improve Navy recruiting numbers. Secretary of the Navy Carlos Del Toro has begun sending letters to high school principals to promote military service and to foster school access for recruiters. These initial letters will be followed up with a letter from Commander, Navy Recruiting Command (CNRC) to further foster a relationship with these centers of influence.

190519-N-RR095-131 INDIANAPOLIS (May 19, 2019) Future Sailors from Navy Recruiting District (NRD) Michigan take the Oath of Enlistment during a joint service enlistment ceremony on Armed Forces Day at Indianapolis Motor Speedway. The ceremony is held annually to recognize all future service members. NRD Michigan is committed to recruiting the best and brightest to join America’s Navy. (U.S. Navy photo by Mass Communication Specialist 1st Class Stephen D. Doyle II/Released)

CNRC also began the “Every Sailor is a Recruiter” (ESAR) program in July. The goal of the program is for U.S. Navy Sailors all over the world to share their positive experiences of naval service with qualifying applicants and provide referrals based upon these interactions.

“Every Sailor has a voice, and it’s not just up to recruiters to represent the Navy back at home, but it is their duty to share their experiences and inspire people to serve their country,” Master Chief Navy Counselor Gerald Allchin, NRC National Chief Recruiter said. “Growing up in Cleveland, Ohio, I know first-hand how rare it can be in non-fleet concentration areas to hear anything about the Navy. So, I tell my shipmates to share your stories!”

This program will be a force multiplier and will make the Navy more competitive in today’s challenging labor market. Navy leadership is currently determining the best way to recognize and award Sailors that provide referrals who ultimately join.

To address Reserve recruiting shortfalls, the Navy altered its recruiting command structure this summer, standing up Navy Recruiting Reserve Command (NRRC) to specifically tackle these challenges. Part of this restructure’s focus is on Canvasser Recruiter (CANREC) professionals. They make up 65% of NRRC and carry a critical portion of the NRRC enlisted goal and 100% of the officer mission goal.

“Our success depends upon CANREC professionals, and I am continually amazed at their commitment,” said CAPT Karen Muntean, Commander of NRRC. “These individuals are Selected Reservists (SELRES) and civilian professionals who have committed themselves to joining our challenging recruiting charge. Their role is to recruit for the reserve mission, educate active duty, civilians and veterans on the benefits of serving in the Navy Reserve, and partner with military and industry organizations.”

CNRC consists of a command headquarters, two Navy Recruiting Regions, NRRC, and 26 NTAGs that serve more than 1,000 recruiting stations around the world. Their mission is to attract the highest quality candidates to assure the ongoing success of America’s Navy.

For more news from Commander, Navy Recruiting Command, go to http://www.cnrc.navy.mil. Follow Navy Recruiting on Facebook (www.facebook.com/MyNAVYHR), Twitter (@USNRecruiter) and Instagram (@USNRecruiter).

Defense News: Naval Safety Command Presents the 2022 Fall and Winter Safety Presentation

Source: United States Navy

As we transition from the summer to the fall and winter seasons, the Naval Safety Command (NAVSAFECOM) continues to promote a safety-first mindset, with the release of its annual 2022 Fall and Winter Safety presentation Oct. 1.

As the Navy and Marine Corps team continues to meet our operational commitments, we want to ensure our Sailors and Marines are safe and making informed decisions while enjoying the cooler weather,” said NAVSAFECOM Command Master Chief, CMDCM(SW/AW/IW) Jimmy Hailey. “Each of us is responsible for making smart decisions both on and off duty. We need to get better at thinking about risk in everything we do so we can protect ourselves and each other.”

From Oct. 1 through March 1, over fiscal years (FY) 18-22, 139 Sailors and Marines were killed in off-duty incidents. Of these, 61 were due to automobile crashes, 47 from motorcycle crashes, nine were pedestrian-related and another 22 were killed during off-duty, recreational activities.

The Fall and Winter Safety presentation provides critical information and tips to raise awareness and assist Sailors and Marines in mitigating risks associated with the off-duty activities commonly associated with the fall and winter months, including seasonal driving safety; home fire prevention; avoiding slips, trips and falls, seasonal decorating safety; and cold weather tips. 

“Our goal is to ensure every Sailor, Marine, civilian employee and their families are aware of the risks associated with fall and winter activities so they can take appropriate precautions to minimize those risks both on and off duty,” Hailey said. “If a fellow Sailor or Marine, or a friend, is about to do something unsafe or risky, speak up. Supervisors, reach out to your subordinates, and talk with them about their activities and what they can do to minimize risk. We can’t afford to lose a single Sailor or Marine to another mishap that was 100% preventable.”

NAVSAFECOM will also be producing a variety of Fall and Winter Safety media products over the fall and winter seasons, which will be available on the NAVSAFECOM website and via social media. Download the presentation on the NAVSAFECOM website, at 
https://navalsafetycommand.navy.mil/Stand-Down/Safety-Stand-Down/

Security News: Justice Department, U.S. Fish and Wildlife Service, and State of Ohio Reach Natural Resource Damages Settlement with Dover Chemical Corporation

Source: United States Department of Justice

Dover Chemical Corporation has agreed to implement and fund natural resource restoration and protection projects to resolve alleged state and federal natural resource damages (NRD) associated with the Dover Chemical Corporation Superfund Site and the surrounding NRD assessment area in Dover, Ohio. The proposed consent decree, lodged today by the Justice Department on behalf of the Department of Interior’s U.S. Fish and Wildlife Service, together with the Ohio Attorney General’s Office, the state of Ohio and the Ohio Environmental Protection Agency (Ohio EPA), is related to a 2017 complaint. That action resulted in a 2018 decree that implemented the final Superfund remedial work at the Site and expressly reserved the right of Ohio and the United States to pursue compensation for natural resource damages. 

The proposed decree addresses natural resource damages, with Dover Chemical Corporation agreeing to implement projects that will restore and protect 28.5 acres of wetlands in Stark County and protect 195 acres of riparian habitat in Tuscarawas, Jefferson, Columbiana, and/or Belmont counties. Dover Chemical Corporation will also pay $880,000 to the State of Ohio to fund projects near the Site to protect, restore, or enhance state ground water resources. Finally, Dover Chemical Corporation will pay for costs incurred by Ohio and the United States to assess injuries to natural resources associated with the Site, including approximately $648,000 for state assessment costs and $745,000 for federal assessment costs.

“Today’s consent decree is a milestone in our efforts to protect and restore our valuable natural resources in Dover, Ohio, and the surrounding area,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division.  “The Department of Justice will continue to vigorously pursue natural resource damage claims in cooperation with our state partners.”

“Ohio takes threats to our environment and natural resources seriously,” said Ohio Attorney General Dave Yost. “This consent decree is good for the environment and good for the people of Tuscarawas County.”

“We at the U.S. Fish and Wildlife Service worked in coordination with the State of Ohio to reach this settlement that will help restore fish and wildlife resources affected by release of contaminants,” said Service Deputy Midwest Regional Director Charles Traxler. “We are pleased to be part of the effort to restore a part of Ohio’s natural heritage.”

“This consent decree is a positive step forward and the projects that Dover Chemical has committed to under the decree will result in improvements to stream habitats and waterways in the area,” said Ohio EPA Director Laurie A. Stevenson. 

Dover Chemical Corporation has operated a chemical plant in Dover, Ohio, from 1951 to the present, producing chemicals that include alkyl phenols, chlorinated paraffin, and organophosphites. The United States’ 2017 complaint in this matter alleged that operations at the plant have resulted in decades of releases of hazardous substances to the Site. Ohio EPA and the Fish and Wildlife Service are joint trustees for the biological and surface water resources impacted by contamination at the site, while Ohio EPA is the trustee for the ground water resource.

The trustees began an NRD assessment in 2009 that evaluated natural resource injuries to land surrounding the Dover Chemical Corporation plant and ground water impacted by an underground plume of contamination that extends to the south of the plant. The assessment identified injury to the surface water (including sediments), biological resources (including supporting habitats), and ground water resources in the assessment area caused by hazardous substances.

The proposed decree, lodged in the U.S. District Court for the Northern District of Ohio, resolves the United States’ and Ohio’s NRD allegations under Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act.  The settlement is subject to a 30-day public comment period and final court approval.  It will be available for viewing at www.justice.gov/enrd/consent-decrees.

The Fish and Wildlife Service and the Ohio EPA are seeking concurrent public comment on the Draft Restoration Plan/Environmental Assessment (Draft RP/EA). The Draft RP/EA informs the public about the proposed NRD restoration and protection projects included in the negotiated settlement. The trustees invite the public to view and comment on the Draft RP/EA from Oct. 3, 2022 to Nov. 2, 2022 at https://fws.gov/project/dover-chemical-corp-nrdar-sugar-creek-ohio.