Month: March 2023

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Security News: Justice Department’s Ongoing Section 8 Enforcement Prevents More Potentially Illegal Interlocking Directorates

Source: United States Department of Justice 2

The Justice Department announced today that five more directors resigned from four corporate boards and one company declined to exercise board appointment rights in response to the Antitrust Division’s enforcement efforts around Section 8 of the Clayton Act (Section 8). Section 8, which Congress made a per se violation of the antitrust laws, prohibits directors and officers from serving simultaneously on the boards of competitors, subject to limited exceptions. Today’s announcement brings the number of interlocks unwound or prevented as a result of the division’s recent efforts to at least thirteen directors from ten boards.

“Enforcement of Section 8 will continue to be a focus for the division just as Congress intended,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We will continue to enforce the antitrust laws when necessary to address illegal board interlocks.”

The following companies and directors unwound interlocks or declined to appoint board members, without admitting liability:

  • Qualys, Inc., SumoLogic, Inc., and F5, Inc. – Qualys, SumoLogic, and F5 are providers of cloud security assessments, audit and compliance services, and firewall and monitoring products and services. One director served simultaneously on the boards of all three companies. After the division expressed concerns about the alleged interlock, the director recently resigned from Qualys’s board and declined to stand for reelection to F5’s board.
  • N-able, Inc., Dynatrace, Inc., and SolarWinds Corp. – N-able, Dynatrace, and SolarWinds are software companies. Representatives of the investment firm Thoma Bravo sat on all three companies’ boards. As the department previously announced in October 2022, three Thoma Bravo representatives resigned from the SolarWinds’s board in response to the division’s concerns about the alleged interlock between Dynatrace and SolarWinds. Shortly thereafter, in November 2022, two separate Thoma Bravo designees resigned from the N-able board.
  • Brookfield Asset Management Inc. and American Equity Investment Life Holding Company (AEL) – AEL and a Brookfield Asset Management subsidiary’s wholly-owned company American National are both insurance companies. Brookfield and/or its subsidiary appointed the officers or directors on the American National board. Additionally, the Brookfield subsidiary has the contractual right to appoint a director to the AEL board, and in December 2022, the Brookfield subsidiary announced that it would exercise that right. After the division raised concerns regarding the potential interlock, the Brookfield subsidiary announced it had changed course and it was withdrawing its proposed nomination to the AEL board.
  • Sun Country Airlines Holdings, Inc. and Atlas Air Worldwide Holdings, Inc. – Sun Country and Atlas Air both provide crew, maintenance, and insurance for domestic air freight routes. In August 2022, an investment group led by Apollo Global Management, Inc. proposed acquiring all of Atlas Air’s outstanding shares. At the time, two Apollo-affiliated individuals sat on the Sun Country board of directors. After the division raised concerns regarding a potential interlock arising from Apollo’s proposed acquisition of Atlas Air, the two Apollo-affiliated directors resigned from the Sun Country board.

Anyone with information about potential interlocking directorates or any other potential violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or antitrust.complaints@usdoj.gov.

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Defense News: ‘It Was a Man’s World:’ Retired Sailor, Civil Servant Reflects on Navy Success

Source: United States Navy

Darla Sutton, Corporate Operations Department operations manager for Naval Surface Warfare Center (NSWC) Corona Division, has spent the last seven years as a Navy civilian. Having also retired from the Navy following 22 years of active service, she is no stranger to working in a diverse environment and never doubted her ability to keep up with the males in her field.

“Historically, when I enlisted in the Navy in the 90s, it was a man’s world,” Sutton said. “You could either pull your weight and succeed, or fail. I chose to succeed.”

Originally from Diamond Bar, California, Sutton was inspired to enlist by other family members who were part of the military, especially her older brother, who was in the Air Force at the time.

“I was eager to start my career, and with a natural love for the water and desire to help people, the Navy was a perfect fit,” she said.

She spent her early years in the Navy dedicating her time and effort to being the best Sailor and crewmember she could be. Her perseverance paid off when she became a chief petty officer in 2004, after being the only female chief select in her group of 20 selectees.

Retired Master Chief Cryptologic Technician (Communications) Nancy Hobart, one of Sutton’s supervisors at the time and an informal mentor, commanded a level of respect through her actions and work ethic that made her an easy role model that she and others could aspire to emulate.

“During my initiation in Italy, I met her and could see the level of respect the entire mess just naturally showed her,” she said. “She walked with such confidence and demanded excellence. She never stepped down and would go toe-to-toe with her male counterparts if needed on any issue. From then on, I wanted to match her level of integrity, fearlessness and professionalism.”

And she did, taking the coined phrase “Ask the chief” to heart.

“People knew they could ask me anything, because even if I didn’t know the answer, I would guide them to someone who did,” she said. “Doing this helped me strengthen relationships with people who were once strangers.”

Sutton used these connections and skills to her advantage in the field. Over the years, she has continued to make her family proud with her notable achievements, adding to the list of successful women in her family.

With work being Sutton’s primary focus, she paced herself with her academics. In 2016, the same year she retired from the Navy, Sutton earned a bachelor’s degree in intelligence operations. She then began working for NSWC Corona’s human resources division, where she handled high-level tasks to ensure the training and development needs of the workforce were met.

She noted her mother enjoyed reflecting on how times have changed, because she and her two sisters-in-law were all the breadwinners in their family, and it was a true turnaround seeing them be so successful in their careers and educations without depending on their husbands.

Sutton earned a master’s degree in leadership and management in 2021. Given her experience, she said she recognizes the strides women have made in a male-dominated field.

“There have been a lot of changes since I retired from the Navy,” she said. “Women are in the ranks, but it’s still the military, and it’s hard for many to not associate the military with masculinity.”

Even so, Sutton made it clear that being a woman in any industry can present challenges, but should not be the single factor defining their level of success. In her experience, she said the Navy has been one of the few places that focuses on work ethic over gender.

“I was surprised seeing my daughter still having to deal with the struggles of gender equality,” she said. “I lived in a world where my gender had no limitations. I never felt like I was being treated unfairly, because if I was a certain rank, I got paid the same as everyone else at that rank, regardless of gender.”

One of Sutton’s beliefs is that emphasizing the accomplishments of women – who at one point in the not-so-distant past could not even purchase a house on their own – is a great way to inspire others to excel in their professions.

“I know that in our department, highlighting people shows their career growth,” she said. “Women’s History Month allows us to reflect on women’s accomplishments throughout history and see how women today are forging a greater path into the future.”

Sutton was awarded a Meritorious Civilian Service Medal for helping to lead the command’s COVID-19 action team that implemented first-ever pandemic protocols but said the award itself is not what gives her a sense of accomplishment on the job.

“I’m grateful when people articulate their appreciation, but making a positive impact on the lives of others is really what drives me,” she said. “Sometimes, as I walk down the hall, co-workers thank me for helping them through a difficult time. That inspires me to accomplish more.”

Sutton’s main focuses are improving communications and providing clarity on operations to her peers. She is passionate about helping people achieve their goals and focuses on bettering herself in order to pave the way for newcomers.

“I’m a firm believer that if you stay in your position for too long, it inhibits others from moving forward in your place,” she said. “My advice is to embrace change and always work to find a resolution, not an excuse.”

Sutton credits her proudest moments in her career on becoming a chief and mentor that other chiefs could depend on. Hearing about lessons and time she shared with them that later impacted their careers, she said, left her speechless.

Now, as a civilian, her proudest accomplishments out of uniform are still centered on leaving a mark on the lives of others.

“My kids are all proud of me,” she said. “And I have two daughters who think I am capable of doing anything. I suppose that means I’ve done my job and impacted the next generation.”

NSWC Corona Division has provided analysis and assessment for the Navy since 1964. With experience in gauging the Navy’s warfighting capability, NSWC Corona is a leader in NAVSEA data analytics. Corona utilizes networked data environments, data and visualization, and measurement technology to bridge the Navy’s data silos, enabling informed decision-making for the warfighter. Anchor to the Inland Empire Tech Bridge, NSWC Corona is located in Norco, California, with detachments in Fallbrook and Seal Beach and personnel in 14 additional locations.

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Philadelphia Woman Sentenced to 100 Months in Prison for Operating Fraudulent Debt Relief Scheme

Source: United States Department of Justice News

A Philadelphia woman was sentenced today to 100 months in prison for conspiring to defraud the IRS and assisting others in filing false income tax returns.

On July 16, 2021, Yolonda Thompson, also known as Qhama Al, and a co-conspirator, Albert Upshur, also known as Kelinde Jaha, were found guilty at a bench trial of conspiring to defraud the IRS and assisting in the preparation of false tax returns. According to court documents and evidence presented at trial, between 2009 and 2015, Thompson and Upshur attempted to obtain millions of dollars for themselves and other participants in a fraudulent debt relief scheme they referred to as the Debt Payoff Process. As part of the scheme, Thompson and Upshur formed the Yolonda Denise Thompson Living Trust (the “Thompson Trust”). Participants in the Debt Payoff Process were told that if they paid money to Upshur and filed tax returns and other documents Thompson prepared for them, they could access funds from the Thompson Trust to pay off their mortgages and other debts. The tax returns that Thompson prepared, and participants filed with the IRS, claimed refunds to which they were not entitled. In total, the scheme sought more than $325 million in fraudulent refunds, of which the IRS paid out $1,511,236.

The evidence at trial also established that after the IRS began to investigate the Debt Payoff Process, Thompson and Upshur attempted to obtain money from the IRS by other fraudulent means, including using checks drawn on closed bank accounts and trying to use financial instruments such as fictitious bonds. The defendants also continued to file false tax returns for themselves and others after the IRS assessed civil penalties against them and notified them that they were under criminal investigation.

In addition to the term of imprisonment, U.S. District Judge Wendy Beetlestone ordered Thompson to serve three years of supervised release. Upshur was previously sentenced to seven years in prison for his role in the scheme.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. He thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania, which provided support in the investigation and prosecution of this case. 

IRS-Criminal Investigation investigated the case.

Trial Attorney Melissa S. Siskind, who serves as National Director of the Tax Division’s Tax Defier Initiative, prosecuted the case.

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United States Obtains Warrant for Seizure of Airplane Owned by Russian Oil Company Valued at More Than $25 Million

Source: United States Department of Justice News

The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. The U.S. District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.

According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. In this case, these sanctions bar a plane that was built or manufactured in the United States from entering Russia without a valid license. 

Specifically, since February 2022, when the export controls that bar the United States-built plane’s re-entry to Russia went into effect, the plane has left and reentered Russia at least seven times, in violation of federal law. The Boeing jet, which was manufactured in the United States, was last in the United States in March 2014, and is currently believed to be in, or traveling to or from, Russia.  

Rosneft – which is headed by Igor Ivanovich Sechin – owns the Boeing aircraft. The Boeing was flown from a foreign country to Russia in violation of the ECRA and regulations issued thereunder, including the Russia sanctions. The Boeing (pictured below) is believed to be worth approximately $25 million.

The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. The U.S. District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.

According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals.

Specifically, since February 2022, when the export controls that bar the United States-built plane’s re-entry to Russia went into effect, the plane has left and reentered Russia at least seven times, in violation of federal law. The Boeing jet, which was manufactured in the United States, was last in the United States in March 2014, and is currently believed to be in, or traveling to or from, Russia.  

Rosneft – which is headed by Igor Ivanovich Sechin – owns the Boeing aircraft. The Boeing was flown from a foreign country to Russia in violation of the ECRA and regulations issued thereunder, including the Russia sanctions. The Boeing (pictured below) is believed to be worth approximately $25 million.

The FBI and Department of Commerce are investigating the seizure matter. The Justice Department’s Office of International Affairs provided valuable assistance.

The government’s case is being investigated by the Eastern District of New York’s International Narcotics and Money Laundering Section and the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant U.S. Attorney Francisco J. Navarro, Tara B. McGrath and Madeline M. O’Connor, and Trial Attorney Barbara Levy are leading the seizure matter.

The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

The burden to prove forfeitability in a forfeiture proceeding is upon the government.

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Kansas Man Sentenced on Felony Charge For Actions During Jan. 6 Capitol Breach

Source: United States Department of Justice News

Defendant Joined in Pushing Against Officers In Confrontations Inside Capitol Building

            WASHINGTON – A Kansas man was sentenced today on a felony charge for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

            Michael Eckerman, 38, of Wichita, was sentenced to 20 months in prison for assaulting, resisting, or impeding law enforcement officers. Eckerman pleaded guilty in the District of Columbia in November 2022. In addition to the prison term, U.S. District Court Judge Christopher R. Cooper ordered 24 months of supervised release and $2,000 in restitution.

            According to court documents, on Jan. 6, 2021, Eckerman illegally entered the Capitol grounds. At approximately 2 p.m., Eckerman observed rioters fighting with police officers outside the Capitol and encouraged them by yelling at the officers that they were “traitors to the country.” He and others then walked through scaffolding and up a set of steps leading to the Upper West Terrace. He entered the Capitol through the Senate Wing Doors at approximately 2:24 p.m.

            While inside the building, Eckerman participated in three separate breaches of police lines. First, he joined a crowd in pushing their collective bodies forward to breach a police line in the Crypt. Eckerman and others then surged forward and funneled toward the east side of the Capitol. Second, near the Memorial Doors, he and others in the mob encountered another small group of officers who were trying to block access to nearby stairs leading to Statuary Hall and the area near the Speaker’s Lobby. Eckerman pushed his way to the front of the stand-off and once again used his body as part of a collective surge to get past the small line of law enforcement officers. At this moment, he was face to face with an officer with the U.S. Capitol Police, who put his hand on Eckerman’s shoulder. Eckerman pushed the officer—forcibly resisting, impeding, and interfering with the officer—which, along with the actions of others in the mob, caused the officer to stumble down some steps, leaving the officer vulnerable. While that officer was on the ground, another rioter sprayed him with a fire extinguisher.  Eckerman participated in a third physical breach of a police line just outside the House chamber, at a time Congresspeople and staff members were still sheltering in place inside.

            After that third breach, Eckerman continued moving through the building, and at one point entered the Rayburn Conference Room, where he posed for photographs. He finally exited the Capitol at approximately 2:44 p.m.

            Eckerman was arrested on Sept. 20, 2021.

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Offices for the District of Kansas and the Middle District of Florida.

            The case is being investigated by the FBI’s Kansas City Field Office, and its Wichita Resident Agency, the FBI’s Washington Field Office, and the FBI’s Boston Field Office and its Lowell, Massachusetts and Bedford, New Hampshire Resident Agencies. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

            In the 26 months since Jan. 6, 2021, more than 999 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.