Month: November 2022

Source: United States Department of Justice News

East St. Louis, Ill. – A former resident of Edwardsville, Illinois, pled guilty on Friday, October 
28, 2022, to making a series of false statements during his 2018 bankruptcy case in the U.S. 
Bankruptcy Court for the Southern District of Illinois.
According to court documents, Kevin Kahrig, 49, a former building contractor in the area, concealed 
assets from his creditors by transferring those assets to his girlfriend-turned-spouse, Catharine 
Kahrig, prior to filing bankruptcy.  As part of his plea, Kahrig admitted that he transferred 
$277,850 in cash and checks to Catharine Kahrig in 2016, then closed all his bank accounts the next 
year.  Kahrig hid those cash transfers and many of the closed accounts in his later filings with 
the bankruptcy court.  Next, Kahrig took his name off a lakefront home he co- owned with Catharine 
Kahrig and hid this transfer from the bankruptcy court.  Kahrig also sold his boat before 
bankruptcy.  He gave the $395,000 he got from the boat to Catharine.  Although Kahrig did disclose 
the sale of this boat to the bankruptcy court, he lied about the amount he received from the sale 
and did not disclose that he had provided those funds to Catharine.  All told, Kahrig concealed 
hundreds of thousands of dollars in assets from his creditors.

“Individuals who hide assets and make false statement on bankruptcy pleadings not only defraud 
their creditors, but they use the federal courts as a part of their fraud,” said United States 
Attorney Rachelle Aud Crowe.  “That is an intolerable abuse of the bankruptcy system which demands 
transparency and forthrightness by those seeking to have their debts discharged or restructured. 
Those who engage in such behavior will be held accountable by this office.”

“Kevin Kahrig chose lies and deception at every step to conceal assets and escape financial 
obligations” said FBI Springfield Field Office Special Agent in Charge David Nanz.  “The FBI takes 
our responsibility to pursue allegations of bankruptcy fraud very seriously and will always work to 
hold accountable those who try to bypass the system”.

“Concealing assets in a bankruptcy proceeding is a crime that threatens the integrity of the
bankruptcy process and public confidence in that process,” stated Nancy J. Gargula, United States Trustee for Indiana and Central and Southern Illinois (Region 10). “We are grateful to all of our 
law enforcement partners in this case and, in particular, to United States Attorney Rachelle Aud 
Crowe for her commitment to pursuing those who lie about assets in bankruptcy.”

Kahrig’s offense carries a maximum sentence of five years imprisonment and a fine of up to
$250,000. Kahrig’s sentencing is set for February 2, 2023, at 10:00am.

The investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, 
in collaboration with the Southern District of Illinois Bankruptcy Fraud Working Group coordinated 
by the U.S. Trustee for Region 10, after referral by the U.S. Trustee.  The
U.S. Trustee Program is the component of the Justice Department that protects the integrity of the 
bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. 
Region 10 is headquartered in Indianapolis, with additional offices in Peoria, Illinois, and South 
Bend, Indiana.
The case is being prosecuted by Assistant United States Attorney Peter T. Reed.

Source: United States Department of Justice News

St. Croix, USVI – U.S. Attorney Delia L. Smith announced that Ionian Management Inc. (IONIAN M), a New York-based company that commercially manages three vessels, including the M/T Ocean Princess, was sentenced yesterday in the District of the Virgin Islands before U.S. District Court Judge Wilma A. Lewis in St. Croix, after pleading guilty to a violation of the Act to Prevent Pollution from Ships. IONIAN M was sentenced to pay a fine of $250,000 and placed on probation for one year.

While vessels are operating within the U.S. Caribbean Emissions Control Area (ECA), they must not use fuel that exceeds 0.10% sulfur by weight to help protect air quality. Between Jan. 3, 2017, and July 10, 2018, the M/T Ocean Princess entered and operated within the ECA using fuel that contained excessive sulfur on twenty-six separate occasions. The fuel was petroleum cargo that had been transferred to the fuel tanks as authorized by IONIAN M. Once authorized, the crew of the M/T Ocean Princess transferred the higher sulfur fuel from the cargo tanks into the bunker tanks and use it to fuel the vessel, even though it exceeded the 0.10% sulfur by weight maximum.

U.S. Coast Guard inspectors boarded the M/T Ocean Princess on July 10, 2018, to conduct an inspection. During the inspection, the U.S. Coast Guard discovered the vessel’s use of fuel with an excessive sulfur content.

“The sentence imposed on this commercial vessel manager for intentionally violating environmental laws designed to protect the air quality of the United States sends a strong message that the United States will not tolerate such violations and will hold violators accountable,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.    

“The pristine beauty of our Virgin Island waters is one of our most precious resources, essential to our tourism and our fragile marine ecosystem,” said First Assistant U.S. Attorney John Kuhn for the District of the Virgin Islands. “Today’s sentencing of Ionian Management Inc. for its role in causing high sulfur fuel to be burned within the Caribbean Emissions Control Area, and here in the waters near St. Croix, sends a strong message to commercial managers of ships that such conduct will not be tolerated. To protect the territory of the Virgin Islands, we will continue to pursue criminal enforcement of environmental laws.”

“Ocean going vessels emit hazardous air pollutants or air toxics that are associated with adverse health effects impacting populations living near ports and coastlines,” said Special Agent in Charge Tyler Amon of EPA’s Criminal Enforcement Program in the Virgin Islands. “EPA, along with its law enforcement partners are committed to ensuring the shipping industry continues to comply with laws designed to protect air quality.”

“The results announced today send a strong message to anyone who seeks to take shortcuts and intentionally pollute our environment, and I couldn’t be prouder of the Coast Guard’s Resident Inspection Office in St. Croix and Sector San Juan marine inspectors who first identified the issue, as well as our Coast Guard Investigative Service agents who worked closely with the Environmental Protection Agency in San Juan to investigate this case,” said Rear Admiral Peter Brown, Commander of the Coast Guard, Seventh District. “We will continue to work with our Department of Justice and environmental protection partners to hold accountable any who put profit above the protection of our waters, beaches and the air above them for future generations.”

The M/T Ocean Princess was owned by Lily Shipping Ltd. and operated by Ionian Shipping and Trading, both Greece-domiciled companies. These two companies previously pleaded guilty to felony violations related to the use of non-compliant fuel and falsification of records and were sentenced to pay a combined criminal fine of $3,000,000, serve a three-year period of probation, and implement an Environmental Compliance Plan. The sentencing of Ionian M is the final chapter in this multi-year investigation and prosecution of the companies and individuals involved in the use of non-compliant, high-sulfur fuel in the operation and management of the M/T Ocean Princess.

The Coast Guard Investigative Service and the Environmental Protection Agency-Criminal Investigation Division conducted the investigation. Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resource Division, Environmental Crimes Section, and Former Assistant U.S. Attorney Kim Chisholm and Assistant U.S. Attorney Daniel H. Huston for the District of the Virgin Islands prosecuted the case.

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Source: United States Department of Justice News

United States Attorneys Damian Williams and Breon Peace announced today that Assistant United States Attorneys (AUSAs) will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.  AUSA David J. Kennedy has been appointed to serve as the District Election Officer (DEO) for the Southern District of New York, and AUSA Erik Paulsen has been appointed to serve as the DEO for the Eastern District of New York. In their capacity as DEOs, these AUSAs are responsible for overseeing the Districts’ handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

United States Attorney Williams said: “Free and fair elections are principal to democracy, and every vote counts. It is the solemn privilege of this Office to work together with our law enforcement partners to ensure that New Yorkers are able to exercise their inherent right to select their representatives unencumbered by unlawful intimidation or interference.  We encourage anyone who finds their civic voting protections subject to hindrance to please contact the numbers below.”

United States Attorney Peace said: “The right of all citizens in the district to cast their votes and have their votes counted fairly and without interference, discrimination or threat of violence, is a cornerstone of our democracy and this Office will vigorously defend that right with the full force of federal law.”

The Department of Justice plays an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

United States Attorneys Williams and Peace stated that: “The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs will be on duty in this District while the polls are open.”

In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 8, 2022, and to ensure that such complaints are directed to the appropriate authorities, the United States Attorneys said that their Offices will be available to receive complaints at the following numbers through Tuesday, November 8, 2022:

(646) 369-4739                       (for Manhattan, Bronx, Dutchess, Orange, Putnam, Rockland, Sullivan, and                                                          Westchester counties) and

(718) 254-7000                       (for Brooklyn, Queens, Staten Island, Nassau, and Suffolk counties)

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at (212) 384-1000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

The United States Attorneys also noted that the following additional telephone numbers are available on Election Day for citizens to call for routine inquiries, such as where to vote or how late the polls are open, or to register complaints that may concern violations of New York State election laws:

IN NEW YORK CITY

City Board of Elections

Main Office                           (866) 868-3692

                                                 TTY #: 212-487-5496

IN COUNTIES OUTSIDE NEW YORK CITY

County Boards of Elections

Dutchess                                       (845) 486-2473

Nassau                                          (516) 571-8683

Orange                                          (845) 360-6500

Orange (Spanish language)      (855) 331-2444

Putnam                                         (845) 808-1300

Rockland                                      (845) 638-5172

Suffolk                                          (631) 852-4500

Sullivan                                        (845) 807-0400

Westchester                                 (914) 995-5700

Source: United States Department of Justice News

INDIANAPOLIS – Bradley Cagle, 27, of Indianapolis, was sentenced to five years in federal prison after pleading guilty to possession with intent to distribute a mixture or substance containing a detectable amount of fentanyl and carrying a firearm during and in relation to a drug trafficking offense.

According to court documents, on October 27, 2020, Cagle was driving a car in Indianapolis, when the Indianapolis Metropolitan Police Department (IMPD) initiated a traffic stop. Officers located a loaded 9mm semiautomatic handgun on Cagle’s person. Officers also located a baggie containing 7.33 grams of fentanyl in Cagle’s pocket. Two other baggies containing a total of around 22 grams of fentanyl were found in Cagle’s car. According to the Drug Enforcement Administration, as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.

On that same day, law enforcement officers executed a search warrant at Cagle’s home in Indianapolis, and found a baggie containing 22.8 grams of fentanyl, an AK47-style rifle, two handguns, and ammunition.

Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office made the announcement.

DEA and the IMPD investigated the case. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Cagle be supervised by the U.S. Probation Office for three years following his release from federal prison.

U.S. Attorney Myers thanked Assistant U.S. Attorneys Patrick G. Gibson and Barry A. Glickman who are prosecuting the case.

Source: United States Department of Justice News

TALLAHASSEE, FLORIDA – Jason R. Coody, United States Attorney for the Northern District of Florida announced today that Assistant United States Attorney (AUSA) Andrew J. Grogan will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.  AUSA Grogan has been appointed to serve as the District Election Officer (DEO) for the Northern District of Florida, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” stated U.S. Attorney Coody. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

To respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Grogan will be on duty in this District while the polls are open. He can be reached by the public at 850-216-3838. In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (904) 248-7000.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html