Two Defendants Sentenced for Conspiring to Distribute Methamphetamine in Central Alabama Prison

Source: United States Department of Justice News

            Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that two defendants received prison sentences for conspiring to bring methamphetamine into an Alabama prison. On February 1, 2023, a judge sentenced Lamar Graves, Jr., 42, from Attala, Alabama, to 168 months in prison, followed by five years of supervised release. Previously, on January 27, 2023, Derrick Antwon Traylor, 44, a resident of Gadsden, Alabama, received a sentence of 262 months in prison, followed by five years of supervised release. Before their sentencing hearings, Graves and Traylor pleaded guilty to conspiracy to possess methamphetamine with the intent to distribute.

            According to court records, sometime prior to 2019, the Drug Enforcement Administration (DEA) and the Alabama Department of Corrections (ADOC) began to suspect that Graves, then an inmate at Staton Correctional Facility in Elmore, was involved in an effort to bring drugs into the facility. Further investigation revealed that Graves was using friends and family members, including Traylor, who were not incarcerated to assist him in smuggling drugs into the prison. Two other co-defendants have federal cases that are still pending.

            “The presence of drugs in a prison creates an immediate threat to the safety of prisoners and corrections officers alike,” stated United States Attorney Stewart. “Corrections officers have challenging jobs. Those challenges increase exponentially when inmates are using methamphetamine and other dangerous controlled substances. I am grateful for the work of the DEA and the Alabama Department of Corrections in identifying this drug trafficking organization and putting a stop to its activities.”

            “The presence of illegal drugs is a challenge faced by correctional systems across the country,” said Alabama Department of Corrections Commissioner John Hamm. “Criminals often go to significant lengths to bypass our security systems and seek to introduce drugs and other types of illegal contraband into our system. The ADOC is committed to enforcing our zero-tolerance policy on contraband and works very hard to eradicate it from our facilities, including referral for prosecution of those interdicted.”

            “The successful prosecution and sentencing of members of this drug trafficking organization should put on notice those who engage in this type of illegal activity,” stated DEA Assistant Special Agent in Charge Towanda Thorne-James. “DEA will continue to collaborate with our state and local counterparts to ensure that those who attempt to flood the prison system with illicit substances face federal charges and a lengthy prison sentence.”

            As noted, this case was investigated by the DEA and the Alabama Department of Corrections Law Enforcement Services Division. Assistant United States Attorney Mark E. Andreu is prosecuting the case.

Justice Department Secures Agreement with Alaska School District Concerning Discriminatory Seclusion and Restraint Practices

Source: United States Department of Justice News

The Justice Department announced today a settlement agreement with the Anchorage School District in Anchorage, Alaska, to address the discriminatory use of seclusion and restraint against students with disabilities. The settlement, which resolves the department’s investigation under Title II of the Americans with Disabilities Act (ADA), will protect students with disabilities by eliminating seclusion and prohibiting discriminatory restraints.

The department’s investigation concluded that the district repeatedly and inappropriately secluded and restrained students with disabilities in violation of Title II. Despite state law and the district’s own policy, and contrary to generally accepted practice, the district did not limit its use of restraint and seclusion to emergency situations. Rather, the district used restraint and seclusion to address noncompliant student behavior, resulting in students missing large amounts of instructional time. Additionally, some students subjected to seclusion engaged in self-harm and expressed suicidal ideation. 

“When schools use seclusion and improper restraints as the default method of managing the behavior of students with disabilities, they violate the promise of the Americans with Disabilities Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement will help safeguard the civil rights of students with disabilities and ensure that the district adheres to policies that are equity-focused, child-centered and trauma-informed. The Civil Rights Division will continue to vigorously investigate allegations of discrimination on the basis of disability in public schools and focus on the practice of seclusion. In districts across the country, we have seen seclusion used against students with disabilities as an improper crisis response and in ways that escalate student behavior and can lead to self-harm.” 

The district fully cooperated throughout the investigation, and before the investigation was completed began to re-evaluate its practices. Under the agreement, the district will, among other steps:

  • Eliminate the use of seclusion at all district schools before the beginning of the 2023-2024 school year;
  • Ensure students are only restrained when their behavior poses an imminent danger of serious physical harm to the student or another person, and properly document all restraints;
  • Provide students who are restrained or secluded with required interventions and supports to prevent future incidents requiring such an emergency response;
  • Create classroom management plans for specialized programs serving students with disabilities that will promote and reinforce positive behaviors and guide staff in employing appropriate de-escalation techniques, thereby discouraging the use of restraint;
  • Ensure parents/guardians are aware they can file a complaint with the district regarding the use of restraint and seclusion;
  • Deliver appropriate training to help schools implement the agreement;
  • Provide counseling and compensatory education to students who were repeatedly secluded; and
  • Appoint an administrator to monitor the district’s restraint practices (and seclusion until that practice is prohibited) to ensure compliance with this agreement and assist district staff in providing required interventions and supports.

Enforcement of Title II of the ADA is a priority of the Civil Rights Division. This agreement is the most recent in a series of division settlements to address and prevent unlawful seclusion and restraint of students with disabilities in public schools. On Dec. 20, 2022, for example, the division reached a settlement with the Okaloosa County School District in Florida to address the discriminatory use of seclusion and restraint against students with disabilities. The division reached similar agreements in September 2022 with the Cedar Rapids Community School District in Iowa, in December 2021 with the Frederick Public School District in Maryland and in December 2020 with the North Gibson School Corporation in Indiana. 

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the Educational Opportunities Section’s work is available at https://www.justice.gov/crt/educational-opportunities-section. To learn more about the section’s work under the ADA to combat improper seclusion in schools, visit this website: https://www.justice.gov/schoolseclusion.

Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.

Justice and Commerce Departments Announce Creation of Disruptive Technology Strike Force

Source: United States Department of Justice News

Today, the Department of Justice and the Department of Commerce are launching the Disruptive Technology Strike Force. Under the leadership of the Justice Department’s National Security Division and the Commerce Department’s Bureau of Industry and Security (BIS), the strike force will bring together experts throughout government – including the FBI, Homeland Security Investigations (HSI) and 14 U.S. Attorneys’ Offices in 12 metropolitan regions across the country – to target illicit actors, strengthen supply chains and protect critical technological assets from being acquired or used by nation-state adversaries.

“Today, autocrats seek tactical advantage through the acquisition, use, and abuse of America’s most innovative technology. They use it to enhance their military capabilities, support mass surveillance programs that enable human rights abuses and all together undermine our values,” said Deputy Attorney General Lisa O. Monaco. “Using real-time intelligence and 21st century data analytics, the Disruptive Technology Strike Force will bring together the Justice and Commerce Departments’ expertise to strike back against adversaries trying to siphon off our most advanced technology, and to attack tomorrow’s national security threats today.”

“The Department of Commerce’s Bureau of Industry and Security remains steadfast in our coordination with our federal partners at the Department of Justice and vigilant in our enforcement of our export controls,” said U.S. Deputy Secretary of Commerce Don Graves. “This interagency strike force will further strengthen this shared national security priority.”

The strike force will be co-led by Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and Assistant Secretary for Export Enforcement Matthew Axelrod of the Commerce Department’s Bureau of Industry and Security.

When acquired by nation-state adversaries such as the People’s Republic of China, Iran, Russia, and North Korea, advanced technologies can be used in new or novel ways to enhance their military capabilities or support mass surveillance programs that enable human rights abuses. End users of national security concern seek technologies, including those related to supercomputing and exascale computing, artificial intelligence, advanced manufacturing equipment and materials, quantum computing, and biosciences. Although they have important commercial uses, technologies in these fields can threaten U.S. national security when used by adversaries for disruptive purposes, such as improving calculations in weapons design and testing; improving the speed and accuracy of military or intelligence decision-making; and breaking or developing unbreakable encryption algorithms that protect sensitive communications and classified information.

“The Disruptive Technology Strike Force takes aim at those who imperil our national security and the rule of law by illegally transferring sensitive technologies to foreign adversaries,” said Assistant Attorney General Matthew G. Olsen. “We must remain vigilant in enforcing export control laws, which defend military readiness, preserve our technological superiority over our adversaries, and help to protect human rights and democratic values.” 

“Advances in technology have the potential to alter the world’s balance of power,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “This strike force is designed to protect U.S. national security by preventing those sensitive technologies from being used for malign purposes.”

The strike force’s work will focus on investigating and prosecuting criminal violations of export laws; enhancing administrative enforcement of U.S. export controls; fostering partnerships with the private sector; leveraging international partnerships to coordinate law enforcement actions and disruption strategies; utilizing advanced data analytics and all-source intelligence to develop and build investigations; conducting regular trainings for field offices; and strengthening connectivity between the strike force and the Intelligence Community.

In addition to the National Security Division and the Bureau of Industry and Security, this strike force will be comprised of officials from designated U.S. Attorneys’ Offices throughout the country, the FBI and the Department of Homeland Security’s Homeland Security Investigations (HSI).

“HSI remains committed to our interagency partners and will continue to work tirelessly on behalf of the American people to ensure sensitive technologies and proprietary information do not fall into the hands of our adversaries,” said Acting Executive Associate Director Steve Francis of Homeland Security Investigations.

The strike force will operate in 12 metropolitan regions across the United States, with oversight and support from the local U.S. Attorneys’ Offices in Atlanta, Boston, Chicago, Dallas, Houston, Los Angeles, Miami, New York City (Southern and Eastern Districts of New York), San Jose, California, Phoenix, Portland, Oregon, and the Washington, D.C. region (District of Columbia and the Eastern District of Virginia).

Former Beulah Bank President Sentenced to Two Counts of Bank Fraud

Source: United States Department of Justice News

BISMARCK – United States Attorney Mac Schneider announced that on February 15, 2023, U.S. District Court Judge Daniel M. Traynor sentenced Brady Daniel Torgerson, age 35, from Beulah, North Dakota, to serve 24 months in federal prison, three years of supervised release, and $200.00 special assessment. On November 4, 2022, law enforcement arrested Torgerson for these offenses and, on August 12, 2022, Torgerson pleaded guilty to two separate counts of bank fraud against financial institutions located in Beulah, North Dakota, namely, First Security Bank-West and the Union Bank.

Between 2019 and 2021, while employed at separate times as the President of First Security Bank-West and as a loan officer at the Union Bank, Torgerson conducted banking transactions, which caused harm to both these banks and the banks’ individual customers. Specifically, while employed at First Security Bank-West, Torgerson funded loans without obtaining: 1) necessary financial information; 2) security interest documents; or 3) promissory notes. Additionally, Torgerson engaged in deceptive banking transactions by entering false information into the bank’s computer system, increasing loans so that they exceeded the original loan amounts, and extending loan maturity dates to conceal his activities. Most notably, while employed at the Union Bank, Torgerson created fraudulent loan obligations in the amounts of $225,487.44 and
$225,487.45 in the names of three separate individuals who neither knew about the creation of these loans nor received the funds described in these obligations.

“Bank fraud is a serious crime that harms the honest financial institutions we have in North Dakota,” US Attorney Mac Schneider said. “This sentence is a credit to the skillful efforts of our career prosecutors and partners in law enforcement. It is also a reminder that there is a high price to pay for white-collar crime.”

“The Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG) continues to investigate allegations of fraud by bank executives and others in order to preserve the integrity of the banking system,” said Justin Bundy, Special Agent in Charge of the FDIC-OIG Kansas City Regional Office. “We are proud to have joined the United States Attorney’s Office for the District of North Dakota, as well as our law enforcement partners in conducting this investigation.”

“We are committed to investigating allegations of fraud committed against the Federal Home Loan Banks or their members, especially in cases where we find flagrant criminal conduct by officials at member banks,” said Catherine Huber, Special Agent in Charge of the Federal Housing Finance Agency-Office of Inspector General’s (FHFA-OIG) Central Region Office. “Thank you to the U.S. Attorney’s Office for the District of North Dakota and our federal partners for helping us bring swift justice in this case.”

Co-Defendants for this investigation received the following sentences:

• Brent D. Torgerson (61 years old from Beulah, ND) received a sentence of time served (1 day in custody), 1-year supervised release, $5,000 fine, and a ban from participating in banking on a charge of Misapplication of Bank Funds
• Kelly Huffman (34 years old, from Beulah, ND) received a sentence of time served (1 day in custody), 1-year supervised release, and a $5,000 fine on a charge of Misapplication of Bank Funds
• Tyler Steven Hofland (35 years old, Rapid City, SD) received a sentence of time served (1 day of processing), 1-year of supervised release, and $98,163.40 in restitution on a charge of Aiding and Abetting Bank Fraud

This case was investigated by the FDIC-OIG, the FHFA-OIG, and the Federal Reserve Board-Office of Inspector General and prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.

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Deputy Attorney General Lisa O. Monaco Delivers Remarks on Disruptive Technologies at Chatham House

Source: United States Department of Justice News

Remarks as Prepared for Delivery

Good afternoon. Thank you for that warm welcome.

It is great to share the stage with Paddy [McGuinness] and Sir Peter [Westmacott] – two great UK leaders in national security and foreign policy and who were great colleagues and partners to me when I served as President Obama’s Homeland Security and Counterterrorism Advisor.

In those days, our work and partnership focused on counterterrorism and confronting new challenges in cyberspace.

Those challenges, of course, are still very much present – but today, the U.S.-UK and our allies also stand together against new threats:

  • Against autocracies projecting power at home and abroad;
  • Against adversaries challenging norms – from launching spy balloons to unleashing the most significant invasion in Europe since the Second World War; and
  • Against rogue nation-states seeking to undermine democracy and the rule of law.

We see this aggression playing out not only on battlefields but in economic zones and information spaces – in cyberattacks, the vacuuming up of sensitive data and the exploitation of restricted technology.

We also see some countries threatening our national security through foreign investment designed to access sensitive data and key technologies.

Today, autocrats seek tactical advantage through the acquisition, use and abuse of disruptive technology: innovations fueling the next generation of military and national security capabilities.

They want to acquire technology by any means possible — not only to fuel surveillance and repression at home and abroad, but to gain strategic dominance.

The U.S., the UK and our allies confront these national security challenges daily. And in the United States, the Department of Justice is at the center of efforts – working with our allies – to combat these threats.

As the lead law enforcement and domestic counterintelligence agency in the United States, the Justice Department is uniquely positioned with our dual national security and law enforcement authorities and missions – to respond to this threat landscape. And that’s exactly what we’re doing.

Our prosecutors, agents, and analysts employ law enforcement tools – often in novel ways – to counter national security threats. And we use our intelligence tools to provide policymakers the vital information they need to shape how we respond.

We are disrupting cyberattacks, enforcing sweeping sanctions, analyzing foreign investments in U.S. businesses to detect and deter bad actors – all to protect American technology and know-how from being exploited by our adversaries.

First, when it comes to cyberspace, we see nation-states – often acting in concert with criminal groups in a new, blended, double threat – engaging in more sophisticated, brazen, and dangerous attacks.

They’re threatening core public institutions like hospitals and schools, and routinely probing our critical infrastructure for vulnerabilities.

They use cyber armies and proxies — hackers for hire and organized criminal networks — in ways that flout international norms and risk our collective security.

As we have done before against terrorism, we are working with allies and partners to combat cyber threats by innovating and using new tools to turn the tables on the hackers.

Last year, working with the UK in operation “Cyclops Blink,” we disrupted a global botnet controlled by the GRU, Russia’s military intelligence agency.

We disabled Russia’s control over those devices before they could be deployed in an attack – against Ukraine, against us, or our allies. Our work protected innocent victims in the United States, the UK, and around the world.

This leads me to the second threat: the weaponization of data. Personal data is the fuel for our adversaries’ surveillance and intelligence states.

Whether through traditional or corporate espionage, our adversaries are targeting troves of data.

As our Intelligence Community has noted, China leads the world in using surveillance and censorship to keep tabs on its populations, repress dissent, and counter perceived threats abroad.

And the Chinese government is not just hacking to gather our data. China’s doctrine of “civil-military fusion” means that any advance by a Chinese company with military application must be shared with the state. And its national security law requires any company doing business in China to make its data accessible to the government.

So if a company operating in China collects your data, it is a good bet that the Chinese government is accessing it.

The ability to weaponize data will only advance over time, as artificial intelligence and algorithms enable the use of large datasets in increasingly sophisticated ways. The data obtained today could be used in new and frightening ways tomorrow. 

This brings me to the third piece of the threat landscape: the national security threats posed by the use and abuse of disruptive technologies by autocratic governments.

No matter what means they employ – cyber theft, sanctions evasion or exploiting foreign investment – we must guard our technologies from adversaries who would use them against us.

The Department of Justice is using all its authorities to combat this threat – fighting cybercrime, combating sanctions evasion, and – most recently – updating our regulatory tools to ensure we protect against foreign investments that threaten our national security.

For decades, the United States has screened foreign investment in U.S. companies for potential national security risks.

Through the Committee on Foreign Investment in the U.S. — known by its acronym as CFIUS — the Justice Department helps prevent foreign threat actors from exploiting those investments to acquire U.S. assets and technology while supporting the benefits that flow from open investment.

But CFIUS began in an era of brick-and-mortar transactions. Today, the greatest risks come not from investment in our physical assets, but from transactions where datasets, software, and algorithms are the assets.

That’s why we’ve sharpened the focus of CFIUS on transactions that pose a threat to data security, cybersecurity and the resilience of critical supply chains.

The President also directed CFIUS to consider if foreign investments in a particular industry, made over time, threaten national security or our technological leadership.

But risks from foreign investment run in both directions: we must also pay attention to how our adversaries can use private investments in their companies to develop the most sensitive technologies, to fuel their drive for a military and national security edge.

So, we are exploring how to monitor the flow of private capital in critical sectors and ensure that our own “outbound investment” in dual-use technology doesn’t provide our adversaries with a national security advantage.

Close collaboration with the UK will be crucial to getting this right.

Beyond foreign investment screening, we are employing other tools to control exports of technology.

Last fall, the President signed the CHIPS Act to ensure U.S. leadership in global chip production. The Act invests in critical chip research and manufacturing and restricts transfers to adversary nations where those transfers pose a national security risk.

At the same time, our Commerce Department has imposed new export controls on advanced computing and semiconductor components – cracking down on the PRC’s ability to acquire certain high-end chips.

Justice Department prosecutors will be vigorously enforcing these rules.

That’s why, today, I am excited to announce the launch of a new initiative – the Disruptive Technology Strike Force.

A collaboration of U.S. law enforcement – led by the Justice and Commerce Departments – the Strike Force brings together our top experts to attack tomorrow’s national security threats today.

We will use intelligence and data analytics to target illicit actors, enhance public-private partnerships to harden supply chains, and identify early warning of threats to our critical assets, like semiconductors.

Our goal is simple but essential – to strike back against adversaries trying to siphon our best technology.

The Department of Justice is deploying all its tools to respond to nation-states who would exploit technology to undermine our alliances, our national security and the rule of law.

Our most critical tool in this effort is one we don’t share with our adversaries – it is the power of our partnerships, particularly the one we have shared with the UK for so very long.

Thank you for having me – I look forward to the discussion.