Month: January 2023

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Security News: North Korean National Sentenced for Money Laundering Offenses

Source: United States Department of Justice 2

North Korean Businessman Accessed the U.S. Financial System and Deceived U.S. Banks to Circumvent Sanctions Against North Korea

Mun Chol Myong (Mun), 55, a national of the Democratic People’s Republic of Korea (DPRK), was sentenced today in the U.S. District Court for the District of Columbia to time served of 45 months’ imprisonment for multiple money laundering offenses. Mun laundered funds through the U.S. financial system as part of a scheme to raise capital and acquire goods for North Korea in violation of U.S. sanctions. Mun is the first ever North Korean national to be extradited to the United States and is subject to deportation following the successful completion of his sentence.

The indictment alleged that between April 2013 and November 2018, Mun and others conspired to transmit funds through the United States for the purpose of promoting bank fraud. Specifically, the indictment alleges that Mun and his co-conspirators used a network of front companies and falsified transaction records to conceal that the payments benefitted sanctioned North Korean entities and thereby deceived U.S. correspondent banks into executing correspondent banking transactions that they would otherwise have rejected. The indictment identifies more than $1.2 million in illicit transactions.

The indictment further alleged that Mun was affiliated with the DPRK’s primary intelligence organization, the Reconnaissance General Bureau, which is the subject of U.S. and U.N. sanctions. Mun pleaded guilty to all counts of the indictment, including one count of money laundering conspiracy, and four counts of money laundering, pursuant to an “Alford” plea, over the objection of the United States. Under the Alford plea, Mun pleaded guilty and avoided a trial but did not admit to the facts and conduct alleged in the indictment. 

This investigation was conducted by the FBI’s Minneapolis Field Office and coordinated by the FBI’s Counterintelligence Division. The Department of Justice would also like to thank the U.S. Indo-Pacific Command and the U.S. Marshals Service Investigative Operations Division for providing analytical support during the investigation.

Assistant U.S. Attorney Tejpal S. Chawla and Special Assistant U.S. Attorney Michael P. Grady for the District of Columbia, and Trial Attorney David C. Recker of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case, with support from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick. The Justice Department’s Office of International Affairs provided substantial assistance in securing Mun’s arrest and extradition. The FBI’s Washington Field Office also provided substantial support during the extradition and investigation. 

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Security News: DePuy Synthes, Inc. Agrees to Pay $9.75 Million to Settle Allegations Concerning Kickbacks Paid to Massachusetts Orthopedic Surgeon

Source: United States Department of Justice 2

Medical device manufacturer DePuy Synthes, Inc. (DePuy), a subsidiary of Johnson & Johnson, has agreed to pay $9.75 million to resolve allegations it violated the False Claims Act by paying kickbacks to an orthopedic surgeon based in Massachusetts to induce his use of DePuy products.

The settlement announced today resolves allegations that DePuy violated the Anti-Kickback Statute (AKS) and caused the submission of false or fraudulent claims to Medicare by paying the orthopedic surgeon kickbacks in the form of free spinal implants and tools for use in surgeries that the surgeon performed overseas to induce that surgeon to use DePuy products in surgeries performed in the United States. As part of the settlement, DePuy has admitted that from at least July 2013 through February 2018, DePuy, acting through certain former sales representatives, gave the Massachusetts surgeon thousands of dollars’ worth of free DePuy implants and instruments, including cages, rods, screws, plates, and surgical instrumentation, that the surgeon used to perform surgeries overseas for patients who were not federal health care beneficiaries. Of the $9.75 million to be paid by DePuy, approximately $7.23 million will be returned to the federal government, and approximately $2.52 million will be returned to Massachusetts, which jointly funded claims for surgeries involving DePuy devices that were submitted to the Massachusetts Medicaid program.

The AKS prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

“Medical device manufacturers are prohibited from providing free items to induce a physician to use their devices,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When medical devices are used in surgical procedures, patients deserve to know that their device was chosen based on quality of care considerations and not on improper inducements from manufacturers.”

“Today the United States resolves allegations that DePuy provided over $100,000 worth of free product to a surgeon in order to secure and reward that physician’s continued business,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “Unlawful kickbacks can severely distort medical judgment as well as the market for medical devices. The millions of patients that depend on our health care system deserve untainted medical decisions. This settlement reflects our commitment to stamping out illegal kickbacks.”

“The American people, as both taxpayers and consumers, expect medical device manufacturers like DePuy to abide by relevant laws and regulations. When such health care companies provide illegal kickbacks in order to boost profits, their actions erode public confidence in the health care system, can compromise the patient-physician relationship, and waste government health program funding,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “In close cooperation with our law enforcement partners, we will continue to thoroughly investigate allegations of fraud to protect both federal health care programs and those served by them.”

“Today’s settlement makes it crystal clear that it is illegal for medical device companies to provide physicians with free medical products to win business and boost their bottom line through illegal kickback schemes,” said Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Division. “Every year, health care fraud costs taxpayers billions of dollars. It is not a victimless crime and this unscrupulous scheme orchestrated by DePuy is just one example of how the FBI and our partners are working hard every day to protect both patients and taxpayers.”

The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Aleksej Gusakovs, who is a former sales representative for DePuy. Under those provisions, private parties, known as relators, can file an action on behalf of the United States and receive a portion of the recovery. The qui tam case is captioned United States et al. ex rel. John Doe v. Johnson & Johnson, et al., No. 17-cv-11502 (D. Mass.). As part of today’s resolution, Gusakovs will receive approximately $1.37 million.

The settlement was a result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the District of Massachusetts. The HHS-OIG provided investigative support.

The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).

The matter was handled by Senior Trial Counsel Benjamin C. Wei of the Civil Division and Assistant U.S. Attorneys Jessica Weber and Andrew Caffrey for the District of Massachusetts.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

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Defense News: Navy to Christen USNS Earl Warren

Source: United States Navy

The Honorable Carlos Del Toro, Secretary of the Navy, will deliver the ceremonial principal address. Remarks will also be provided by Vice Adm. Darse E. “Del” Crandall, Jr., Judge Advocate General of the Navy; Rear Adm. Michael Wettlaufer, commander, Military Sealift Command; Earl Warren, MD, grandson of Chief Justice Earl Warren; and Mr. David Carver, president of General Dynamics National Steel and Shipbuilding Company (NASSCO). In a time-honored Navy tradition, the ship’s sponsor, U.S. Supreme Court Justice Elena Kagan, will christen the ship by breaking a bottle of sparkling wine across the bow.

The future USNS Earl Warren is the third ship in its class and will be operated by the Navy’s Military Sealift Command. The ship is named in honor of the late politician and civil rights leader who served as the 14th Chief Justice of the United States from 1953 to 1969. 

“Supreme Court Chief Justice Warren’s legacy continues to live on in civil rights, freedom and democracy,” said Secretary of the Navy Carlos Del Toro. “His contributions to equality have greatly strengthened our nation. There is no doubt that the future civilian mariner crew aboard this ship will embody Warren’s legacy.” 

The John Lewis-class ships are based on commercial design standards and will recapitalize the current T-AO 187-class fleet replenishment oilers to provide underway replenishment of fuel to U.S. Navy ships at sea. These ships are part of the Navy’s Combat Logistics Force.

In June 2016, the Navy awarded a $3.2 billion contract to General Dynamics NASSCO in San Diego for the design and construction of the first six ships of the Future Fleet Replenishment Ship, the John Lewis-class. The first of class, USNS John Lewis (T-AO 205), delivered in July 2022 and is currently undergoing post-delivery test and trials and operational testing. T-AO 206-209 are under construction at General Dynamics NASSCO in San Diego and T-AO 210-212 are under contract. The Navy plans to procure 20 ships of the John Lewis class.

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Defense News: Camp Lemonnier Navy Exchange Presented 2021 Bingham Award

Source: United States Navy

An award presentation ceremony took place at the CLDJ NEX, Jan. 11, to recognize the tremendous achievement on the part of all the NEX associates and managers as well as the base community; this is the highest achievement a store can receive as the best in class. There were a total of nine sales category award winners announced throughout the Navy Exchange Command (NEXCOM) enterprise. Eight other NEX stores worldwide won in the remaining sales categories, and nine runner-ups were also recognized.

NEX Director and Chief Executive Officer, Defense Commissary Agency, retired Rear Adm. Robert Bianchi, presented the award to Capt. Brian Iber, commanding officer of Camp Lemonnier, and Yvonne Parker, CLDJ NEX branch exchange manager, with the 2021 Bingham Award during the ceremony.

The award recognizes outstanding performance in operations, excellence in customer service and community support. Established in 1979, the Bingham Award is named after the late Capt. W.H. Bingham, who was a U.S. Navy Reserve Supply Corps officer and chief executive officer of the R.H. Macy’s company. He was appointed by the Secretary of the Navy in 1946 to lead an advisory board for establishment of what is now the NEXCOM. “Each year, we recognize our ‘best of the best’ NEX locations with the Bingham Award,” said Bianchi.

During the ceremony plaques are presented to both, the NEX and the local Navy command to recognize their partnership and dedication in supporting the quality of life of our military members. “The Navy Exchange does great work world-wide, but specifically here in Djibouti,” said Iber. “The Bingham Award was created to recognize excellence in customer service, operations, and management, and it is no surprise that our team here on Camp Lemonnier has won this award.”

Camp Lemonnier has a long-standing commitment to engaging Djibouti in commerce. The U.S. Government, through the Embassy and CLDJ, is the second largest employer of Djiboutian nationals in Djibouti. Over 1,300 Djiboutian employees work at CLDJ.

Camp Lemonnier is a forward operating site supporting joint operations managed by the U.S. Navy and is the only enduring U.S. military base on the African continent. Djibouti has been a partner of the U.S. military since 2002 when the installation on the south side of the Djibouti-Ambouli International Airport was formally stood up as the headquarters for Combined Joint Task Force, Horn of Africa (CJTF-HOA). Camp Lemonnier is now operated by Commander, Navy Region Europe, Africa, Central (EURAFCENT). Contracts awarded to improve Camp Lemonnier provide for enduring, yet modern facilities to support improved quality of life, mission readiness, and safety of daily operations.

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Defense News: Our Yard History: Unsung Heroes of Public Works Maintenance

Source: United States Navy

 Imagine having to take your horse and cart or perhaps an early Model T work truck on a detour to find another way around such a road closure repair that is featured in these images from November 1914 – about 108 years ago.

Facility work is somewhat like an unbroken circle of repair, upgrade and continued modernization in order to support this shipyard. When digging it is always important to attempt to combine all known repair work elements to get the job accomplished once and that is apparent within this series of images.

These various images show McKeever Avenue, the major north-south passage looking to the north with portions of Buildings 33, 32, 60, 65, 17, 16, 15, 14 and Quarters A in the views. I always say that “historic photos are a window upon our past.” When you compare the historic Gosport District of the 19th Century to the 21st Century of today, well not much has changed with our building layout. These 1840s to 1900 structures were built to last and stand as a testament to prior Public Works craftsmen’s resilient construction techniques.

Building 60 was our original power plant and provided heat to the nearby buildings in the northern end of the shipyard. Heating was conveyed not with steam at that time but by hot water circulating pipes that eventually supplied individual radiators within various work spaces that then drained the cold-water condensate back to the power plant so the process could continue. Well, pipes by their very nature need maintenance and true to form most times these pipes are found underneath something else, in this case railroad tracks.

Railroad tracks and their ability to convey materials was and still is an essential element of support for this shipyard. Railroad repair work has always been labor intensive yet it must be done right and precise. With many miles of rail upon this shipyard it is truly a never-ending source of work and detours.

The men’s names that preformed the pipe and rail work shown in these images are lost to time now but they were members of our local families several generations prior. They came to work in service to our navy yard in order to serve their country. They were not afraid of hard work because that in itself is honorable and the wage they received in turn supported their families.

These men of Public Works contributed their service by lending the strength of their hands and their backs while preforming extreme physical labor so that the industrial machine of this shipyard could continue to serve the waterfront support mission without fail.