Month: March 2023

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Justice Department Announces Charges and Sentence in Connection with Iranian Procurement Network’s Attempts to Acquire Sophisticated Military Technology

Source: United States Department of Justice News

A federal court in the District of Columbia unsealed two indictments yesterday charging multiple defendants with violations of the Arms Export Control Act (AECA) and the International Emergency Economic Powers Act (IEEPA) for their roles in separate schemes to procure and export U.S. technology to Iran between 2005 and 2013. In connection with this announcement, the Department of Treasury’s Office of Foreign Assets Control designated three of the defendants and four entities for their involvement in the procurement of equipment that supports Iran’s ballistic missile and unmanned aerial vehicle (UAV) and weapons programs.

United States v. Paidar, et al.

According to the indictment, between 2012 and 2013, defendants Amanallah Paidar, of Iran, and Murat Bükey, of Turkey, conspired to procure and export U.S. technology for Iran through their companies Farazan Industrial Engineering, in Iran, and Ozon Spor Ve Hobbi Ürünleri, in Turkey. Specifically, Paidar and Bükey exported from the United States and transshipped through Turkey a device that can test the efficacy and power of fuel cells and attempted to obtain a bio-detection system that has application in weapons of mass destruction (WMD) research and use.

Bükey, who was extradited to the United States from Spain in July 2022, pleaded guilty to conspiring to violate the AECA and IEEPA in December 2022. He was sentenced on March 20 in the U.S. District Court for the District of Columbia to 28 months in prison, with credit for time served. He will be removed from the United States after completing his sentence. Paidar is a fugitive and remains at large.

United States v. Mahmoudi, et al.

According to the indictment, between 2005 and 2009, defendants Agshar Mahmoudi, of Iran; Bahram Mahmoudi Mahmoud Alilou, of Iran; and Shahin Golshani, of the United Arab Emirates (UAE); conspired to obtain U.S. technology, including a high-speed camera that has known nuclear and ballistic missile testing applications, a nose landing gear assembly for an F-5 fighter jet, and a meteorological sensor system, through their companies Aran Modern Devices Kish Company, in Iran; and Modern Technologies, in the UAE. The defendants are fugitives and remain at large.

“The defendants’ efforts to unlawfully export advanced U.S. technology that could benefit the Iranian regime’s military and weapons of mass destruction research pose a threat to all Americans,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will steadfastly pursue and bring to justice anyone who violates U.S. export laws and harm our nation’s security.”

“With the help of our U.S. agency and international partners, the FBI thwarted an attempt to export advanced, American controlled, technological systems and goods,” said Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division. “The FBI will not stand idly while hostile countries attempt to evade our laws and circumvent U.S. sanctions and we will work tirelessly to stop such activity. This sentencing further illustrates our willingness to reach beyond our borders, to protect American interests, and bring all offenders to justice.” 

“These defendants sought to obtain valuable U.S.-origin goods that could assist Iran’s military and WMD aspirations, and in some instances, they were successful,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “The U.S. Attorney’s Office for the District of Columbia and our federal law enforcement partners will zealously pursue those who break these laws and harm our national security interests, regardless of where in the world they operate.”

“The sentencing of Murat Bukey and the charging of four others with conspiring to illegally export technologies and goods to Iran demonstrates our determination to hold those who attempt to circumvent U.S. export laws and sanctions accountable,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Export controls exist to protect the security of the United States and its people, and we will aggressively investigate those who threaten our national security by violating these laws. We are grateful to our international partners for their assistance in dismantling this scheme and bringing the defendant to justice.”

The FBI, Homeland Security Investigations, and the Commerce Department’s Bureau of Industry, Office of Export Enforcement are investigating these cases.

Assistant U.S. Attorney Tejpal S. Chawla for the District of Columbia and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section are prosecuting these cases, with support from Paralegal Specialist Michael Watts and Mariela Andrade. The Justice Department’s Office of International Affairs provided substantial assistance in securing Bükey’s arrest and extradition.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Justice Department Settles Lawsuit Against Neurosurgeon and his Fiancée Alleging Receipt of Illegal Kickbacks

Source: United States Department of Justice News

Dr. Sonjay Fonn and Ms. Deborah Seeger of Cape Girardeau, Missouri, and their professional companies, Midwest Neurosurgeons, LLC and DS Medical, LLC, have agreed to pay $825,000 to resolve a lawsuit alleging that they violated the False Claims Act by soliciting and receiving kickbacks from spinal implant companies.

The Justice Department’s lawsuit alleged that Dr. Fonn, Ms. Seeger, Midwest Neurosurgeons, and DS Medical solicited and received remuneration from spinal implant companies in return for arranging for the use of those companies’ products in Dr. Fonn’s surgeries, in violation of the Anti-Kickback Statute. The Anti‑Kickback Statute prohibits soliciting or receiving anything of value in return for the referral of items or services covered by federal health care programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives.

“The Anti-Kickback Statute plays a critical role in ensuring the integrity of medical care provided to federal health care program beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Treatment decisions should be determined by beneficiaries’ medical needs, not by kickbacks provided to their surgeon.”

“This case took nearly a decade of hard work by my office, the whistleblowers, the Departments of Justice and Health and Human Services, the FBI and the Missouri Attorney General’s Office,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “The U.S. Attorney’s Office will always vigorously pursue anyone who fraudulently obtains taxpayer money and defrauds Medicare and Medicaid.”

“Medical providers who accept kickbacks put personal financial gain before the needs of their patients. This behavior can harm patients and undermines the integrity of federal health care programs,” said acting Special Agent in Charge Linda Hanley of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our federal and state partners to protect our programs from fraud and ensure that patient needs drive provider decisions.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Paul Cairns, Dr. Terry Cleaver, Dr. Kyle Colle, Dr. Scott Gibbs, Dr. Paul Tolentino, Dr. Kevin Vaught, and Daniel Henson. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The share to be paid to the private parties has not yet been determined in this matter.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Eastern District of Missouri, with assistance from the FBI, the HHS-OIG, and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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 Fraud Section Attorneys Diana Cieslak, David Finkelstein, and James Nealon, and Assistant U.S. Attorney Joshua Jones for the Eastern District of Missouri.

The case is captioned United States ex rel. Cairns, et al. v. DS Medical, LLC, et al., 1:12-cv-0004-LPR (E.D. Mo.).

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

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Three Individuals Sentenced in Darknet Narcotics Trafficking Conspiracy Involving Distribution of Pills Pressed with Fentanyl

Source: United States Department of Justice News

            WASHINGTON – The last of three defendants was sentenced Friday in the U.S. District Court for the District of Columbia for illegal sales of opioids on various Darknet markets.  The Honorable John D. Bates sentenced Alex Ogando to 12 years.  Olatunji Dawodu and Luis Spencer were previously sentenced to 12 years and 12 ½ years, respectively.  All three defendants were convicted of conspiracy to distribute 400 grams or more of a mixture and substance containing fentanyl. 

            The Darknet operations pumped kilograms of fentanyl pills into communities across the nation over the course of four years, using Darknet markets including AlphaBay, Dream, Wall Street, and Empire to reach a broad customer base.  The defendants also used encrypted messaging services to communicate with and sell pills directly to customers.  In exchange for cryptocurrency, the defendants sold fentanyl pills that were shipped via the U.S. Postal Service to buyers in the District of Columbia and all 50 states.  The conspiracies relied on sophisticated technology to distribute and profit from a staggering quantity of pills pressed with fentanyl.

            The case was prosecuted by former Assistant U.S. Attorney Laura Crane and Assistant U.S. Attorney Connor Mullin.  The investigation was conducted by the FBI’s Hi-Tech Opioid Task Force, which is composed of FBI agents, analysts, and task force partners, including special agents and officers of the Food and Drug Administration’s Office of Criminal Investigations, DEA, U.S. Postal Inspection Service, and detectives from local assisting police agencies. Additional assistance was provided by the United States Attorney’s Offices for the District of Rhode Island and the Southern District of Florida, the FBI’s Miami and Boston Field Offices, and the IRS-CI Cyber Crimes Unit.

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District Man Sentenced to Six Year Prison Term For Stabbing Man Outside of Union Station

Source: United States Department of Justice News

            WASHINGTON – Julius Yancey, 37, of Washington, D.C., was sentenced today to 72 months in prison for a violent assault, in June of 2022, outside of Union Station. The sentence was announced by United States Attorney Matthew M. Graves and Chief Robert J. Contee, III, of the Metropolitan Police Department.

            According to the government’s evidence, on June 30, 2022, at approximately 2:20pm, Yancey approached the victim outside of Union Station, at 2 Massachusetts Avenue NW, Washington DC. The victim was sitting down and looking at his phone when Yancey stabbed him three times with a knife – once in the arm, and twice in the chest – for no reason and without provocation. The victim escaped and ran into Union Station looking for police officers to help him. The defendant followed the victim into Union Station while still holding the knife and stalked after him down two hallways. After about a minute, the defendant was stopped by police officers and the victim collapsed on the floor. The defendant dropped the knife when confronted with police and taken into custody. The victim received emergency medical care by officers at the scene, including an officer putting a tourniquet on his arm to stop the bleeding from the open wound located there. The victim was then transported to the hospital, where a doctor had to stitch up his wounds. At the time of this incident, the defendant was on release in a pending matter for simple assault, attempted threats, and attempted possession of a prohibited weapon in 2021 CMD 006032. The defendant has subsequently been convicted after a bench trial of these offenses, and Yancey was sentenced to 180 days straight time for each conviction, to run concurrently.

            In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the cases at the U.S. Attorney’s Office, including Paralegal Specialists Tamaya Reid and Kalisha Johnson-Clark, and Assistant U.S. Attorneys Lauren “Luca” Winer, Emily Kubo, and Richard Carlton who investigated the matter.

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Defense News: FRCE Engineer Recognized as Technology Leader at Black Engineer of Year Awards

Source: United States Navy

Clemmons earned the distinction for the ATI’s work with more than 50 advanced technology projects that aim to capitalize on strategic investments at FRCE and small business research efforts within the Navy, educational outreach programs, and his own mentorship of junior engineers. As the team lead for Advanced Technology and Innovation (ATI) Team at Fleet Readiness Center East (FRCE), Jamaine Clemmons works to implement emerging technologies in support of naval sustainment operations. Since taking the reins of the group, he and the team have taken on more than 50 advanced technology projects that aim to capitalize on strategic investments at FRCE and small business research efforts within the Navy.

This work – along with ATI Team’s educational outreach and his mentorship of junior engineers – earned Clemmons recognition as a Modern Day Technology Leader during the 2023 Black Engineer of the Year Awards (BEYA) STEM Conference, held in February in National Harbor, Maryland. The annual conference showcased career opportunities in science, technology, engineering and math for more than 10,000 students, government and military organizations, and private industry participants.

“Jamaine has distinguished himself as a leader in providing vision and guidance to the development and implementation of new technologies within the naval sustainment community,” said FRCE Executive Director Mark Meno. “His team’s efforts have had significant impacts to flightline readiness across the Naval Aviation Enterprise, and the projects they are spearheading will help modernize and improve operations.”

Clemmons said he was humbled by the recognition, which he considers a testament to the hard work and success of the ATI Team as a whole, rather than to himself as an individual.

“Our team is really good at what they do,” he explained. “They’re always looking to lean forward, because a lot of what we do, we’re doing for the first time. Technology isn’t for the faint of heart, and it isn’t for everybody; it takes a unique skill set and very dedicated people, and this award is just as much, if not more, about them then about me.

“Our goal is to make a difference, whether that’s from a forward-deployed standpoint or technologies that we look to adopt locally to improve the way we do business,” Clemmons continued. “All of that rolls into our main goal of supporting the warfighter, and this recognition is a good indication that we’re doing that well.”  

The team is currently working with two projects Clemmons believes can make a significant impact within the naval sustainment community: digital tracking technology, and advanced polymer and metallic additive manufacturing, commonly known as 3D printing.

The digital tracking initiative uses passive and active radio frequency identification technology to locate items within a facility. The team hosted a successful demonstration of the technology in May, and continues to work toward implementation. While keeping tabs on parts and tools might seem like a routine task, it stands to have a meaningful effect on operations.

“It isn’t a new technological concept overall, but it’s something the FRCs have sought for over a decade and, with continuous technology advancements, it stands to improve how we do business,” Clemmons said. “The intriguing part will be having the ability to use this technology to aggregate data at a macro level and make informed decisions that drive necessary change down to the micro level, and vice versa.”

Additive manufacturing with advanced polymers and metallic materials also stands to have a substantial effect on sustainment operations.

“This is a focus area we’re leaning into and looking to be at the forefront of, in terms of new machines, materials and application spaces. In the recent past, we’ve used additive manufacturing to quickly create prototypes, but we’re at the point now where we’re implementing it for usable end items,” Clemmons explained. “Once we establish metallic capability, we’ll be able to do a similar thing but with stronger material properties that will allow us to use those items from a structural perspective. The end goal is to be able to create usable parts, once they are qualified and certified, for things that are hard to get out of the supply system right now.”

These two programs are high-visibility examples, but the team also focuses on initiatives that make a difference in the day-to-day efforts of the artisans, Sailors and Marines who maintain the fleet. Moving any of these advanced technologies from concept to implementation requires creating a vision for the project and then sticking to it, Clemmons said.

“The team and I establish that vision for each effort: this is our North Star, these are our goals, these are the things we’re tracking toward,” he explained. “And sometimes we’ve got to come back to that vision to remind us why we’re doing this in the first place.”

Clemmons also helps individuals set goals in his work as a mentor. Named the FRCE Mentor of the Year in 2019, his experience with mentorship has aided his progression in both personal and professional capacities, he said.

“Mentorship is one of the core building blocks for success in any career,” Clemmons said. “You need somebody in your corner who’s not just going to tell you what you want to hear, but is going to tell you the truth because they truly care about you. Those are the values I look for in mentorship, and look to provide to my mentees. You need that support not just within your career, but in life, because it’s tough out here in the world.”

Clemmons lost his father when he was just 12 years old, and the mentors who stepped in to support him at that time made a huge difference in his world.

“At that age, I was at a fork in the road where I could have gone in a very bad direction really quickly,” he explained. “But I had family and a church family who really stepped up during that time and got me out of that dark space. At my worst, I had a mother, a pastor, uncles … people who stepped in and said they understood that I was hurting, but we needed to get me back on track. And honestly, I just wanted to make my father proud. That desire is what drove me, and to this day still drives me.”

Another defining moment came when, while Clemmons was working as a production engineer at FRCE, his senior mentor asked him to consider where he wanted to position himself as he grew in his career – or, simply put, what he wanted to be when he grew up.

“When I first got to FRC East, did I think that within 13 years I would be in this position? I did not,” Clemmons said. “But when I considered the future, the answer to my mentor was simple: I wanted to be someone who was able to make a difference. I wanted to take ownership of something and have pride in the work I do. And I feel like today I’m checking all of those boxes, which is a good place to be. I would never have thought that, 13 years into my career, I’d be getting one of these Black Engineer of the Year awards. It wasn’t on the list of things to do. But it came because of the hard work and the support system I had in place, from a young age to now. Mentorship is key.”

Clemmons said representation of diverse backgrounds and perspectives is also important to ensure success within the next generation of innovative leaders who will shape the future of naval aviation. Honors like the BEYA awards can serve as an example of success to young learners who are interested in STEM careers but might not often see engineers who look or think like they do.

“There is power in visualization and being able to see that you can break down walls and barriers, you can get there from here, and there is a pathway for doing that,” he said. “It’s good for kids to be able to see individuals who look like them succeeding in STEM career fields, and to see that individuals who are from a marginalized or minority group are able to step into these careers and be successful. When you’re recognized for an award like this, your contributions can influence somebody who may feel like they can’t make it, to make a difference as well.

“We’re at a place where we’re influencing the next generation of engineers, scientists and innovators who will be able to do the things we can’t do today, as technology changes and they take it to the next level,” Clemmons continued. “It’s important for these young people to understand that they’re good at what they’re good at, regardless of their background or nationality. With strong work ethic, hard work and dedication, you can be the best at whatever you do. You can make those things happen.”

Being named a Modern Day Technology Leader has given Clemmons reason to think about what he wants to achieve next in his own career, as well.

“I’m going to look back on this moment and tell both of my boys about this phase in my career,” he said. “Regardless of what happens next, this is one of those milestones – but it also shows me there’s so much more I can do. The work’s not done, so the challenge now is how do I do more? How do I do it better? How do I improve upon this?

“Now I look at what my next goals are, how we leverage these new technologies to get the organization there. As long as we stick to that core mission, everything else will take care of itself,” Clemmons added. “That’s what I tell my mentees: Find something you like to do, find something you’re good at and be darned good at it, and everything else will take care of itself.”

FRCE is North Carolina’s largest maintenance, repair, overhaul and technical services provider, with more than 4,000 civilian, military and contract workers. Its annual revenue exceeds $1 billion. The depot provides service to the fleet while functioning as an integral part of the greater U.S. Navy; Naval Air Systems Command; and Commander, Fleet Readiness Centers.