Couple Sentenced For Conspiracy, Wire Fraud, And Major Fraud Against The United States

Source: United States Department of Justice News

CHATTANOOGA, Tenn. – Today, Ricky and Katrina Lanier, 55 and 49, both of LaGrange, N.C., were sentenced by the Honorable Travis McDonough, Chief United States District Court Judge for the Eastern District of Tennessee at Chattanooga, to serve federal prison terms of 48 months and 24 months, respectively, for conspiracy to commit wire fraud, wire fraud, and major fraud against the United States.  Following their incarceration, the Laniers will each be on supervised release for a period of one year.  Chief Judge McDonough ordered forfeiture of the couple’s bank accounts and deferred a ruling on a money judgement until a later date.

The couple were found guilty of these offenses, in violation of 18 U.S.C. §§ 1349, 1343, and 1031 on July 29, 2022, following a two-week jury trial in U.S. District Court.  According to evidence presented at trial, the Laniers conspired from 2005 to 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Department of Veterans Affairs’ (VA) Service-Disabled Veteran-Owned Small Business (SDVOSB) program and the Small Business Administration’s (SBA) 8(a) Business Development program.  They falsely represented that JMR Investments and Kylee Construction were eligible for these programs.  Their actions also deprived legitimate service-disabled veteran and minority-owned businesses from obtaining government contracts on which they were eligible to bid.

Ricky Lanier, who had previously owned and operated an 8(a) business receiving government contracts, became ineligible to participate in the 8(a) program after that business graduated from that program in 2008.  Lanier used a long-time friend and service-disabled veteran as the purported owner of Kylee Construction, falsely representing that the friend was involved in the daily management of the business, even while the friend was working for a government contractor in Afghanistan.  The Laniers used a minority-owned business run by Ricky Lanier’s college roommate, JMR Investments, as a front to obtain construction contracts from the National Park Service and other federal agencies under the 8(a) program, misrepresenting the friend’s involvement in the management and operation of the business.  The scheme also involved sub-contracting most of the work on the contracts in violation of program requirements.  As part of the scheme, the Laniers opened and controlled bank accounts into which government money was deposited, and they used those accounts to pay for extravagant vacations; monthly payments on a personal private airplane; a Mercedes Benz; mortgage payments for their personal residence; purchases of additional real estate; and purchases of personal property such as shoes, clothing, food, and souvenirs while on vacation.

The Laniers also defrauded the National Park Service in connection with a contract to replace a wastewater treatment facility at the Tremont Institute in the Great Smoky Mountains National Park, falsely representing subcontractor costs by over $400,000, resulting in the award of a $1.1 million contract for work on the project that was actually performed by a subcontractor for only $550,000.  The Laniers further fraudulently obtained a $1.3 million construction contract at the James H. Quillen VA Medical Center, which had been set aside for service-disabled veteran owned businesses.       
As a result of the false representations, Kylee Construction was awarded over $5 million in government contracts and JMR Investments was awarded over $9 million in government contracts.  The Laniers received almost $3 million in financial benefit from the scheme.

“The defendants’ conduct was especially egregious,” said United States Attorney Francis M. Hamilton III.  “Of course, the dollar value of the government contracts was quite high, and the defendants obtained enormous personal gains to maintain a lavish lifestyle.  More importantly, not only did the defendants steal from the United States, they stole opportunities from scores of honest deserving entities such as legitimate service-disabled veteran-owned businesses who are trying to making a living in the civilian sector after having served the nation honorably.”

“Conspiring to fraudulently obtain millions of dollars in government contracts from programs designed to benefit service-disabled veteran business owners steals opportunities from the deserving and lines the pockets of the greedy.  The VA OIG remains committed to diligently pursuing these cases in an effort to maintain the integrity of VA programs,” said Special Agent in Charge Kim R. Lampkins of the VA Office of Inspector General’s Mid-Atlantic Field Office. “The VA OIG thanks the US Attorney’s Office and our law enforcement partners for their joint efforts to achieve justice in this case.” 

“Illegally obtaining federal contracts steals taxpayer dollars and opportunities from the nation’s small business community,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite.  “OIG is committed to rooting out bad actors and protecting the integrity of SBA programs.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

Special Agent in Charge Katherine Balestra, U.S. Department of Interior OIG, recognized the efforts of the investigative team in protecting the Service-Disabled Veteran Owned Small Business program. “These investigations are so important to ensure that these federal contracts go to the individuals for whom they are intended,” Balestra said.

Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Ricky and Katrina Lanier included the Veterans Administration Office of Inspector General (VA OIG), Department of the Interior Office of Inspector General (DOI OIG), and Small Business Administration’s Office of Inspector General (SBA OIG), with assistance from the U.S. Secret Service.

Assistant U.S. Attorneys Steven S. Neff, Perry H. Piper, and Anne-Marie Svolto represented the United States.

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Attorney General Merrick B. Garland Delivers Remarks in Lviv, Ukraine

Source: United States Department of Justice News

Remarks as Prepared for Delivery

Attorney General Merrick B. Garland Delivers Remarks at the United for Justice Conference

President Zelenskyy, Prosecutor General Kostin, and esteemed colleagues: it is an honor to be here with you on behalf of the United States Department of Justice.

Just over twelve months ago, invading Russian forces began committing atrocities at the largest scale in any armed conflict since the second World War.

We are here today in Ukraine to speak clearly, and with one voice: the perpetrators of those crimes will not get away with them.  

Thirty years ago, at the dedication of the United States Holocaust Memorial Museum, the late Nobel Peace Prize winner and Holocaust survivor Elie Wiesel issued a charge: 

“For the dead and the living,” he said, “we must bear witness.”

For the past year, our colleagues in the Ukrainian Prosecutor General’s Office have risked their lives to bear witness. 

Ukrainian prosecutors and investigators have worked tirelessly to uncover the truth of what is happening here in Ukraine, and to preserve and record it for future generations. 

They have meticulously collected and catalogued evidence from the rubble of blast sites – including hospitals, apartment buildings, and schools.

They have worked urgently to seek justice on behalf of the thousands of Ukrainian men, women, and children who have been killed. 

They have exhumed mass graves and carefully studied the bodies of victims – in order to tell the stories of those who no longer can. 

They have documented the Russian regime’s forced deportation of Ukrainian children and its use of sexual violence as a weapon of war.

They have worked relentlessly to pursue accountability for these crimes and make clear the costs of perpetrating them. 

They have opened investigations, identified and tracked down suspects, and initiated prosecutions. 

And they are only just getting started. 

In bearing witness, Ukrainian prosecutors, like the Ukrainian people, have stood courageously in defense of democracy and in defense of the rule of law. 

The United States Department of Justice is honored to stand beside you. 

And we are honored to stand beside our international partners here today. 

The courage of the Ukrainian people has inspired us all. 

And it has galvanized cooperation in the international community to hold the Russian regime accountable for its crimes. 

Just now, the United States signed an historic agreement with Ukraine, Lithuania, Poland, Estonia, Latvia, Slovakia, and Romania that will strengthen our efforts to hold Russian war criminals accountable. 

This agreement will expand information sharing between our countries that will help us not only to identify and prosecute Russian war criminals, but to build winning cases against them.

In addition to strengthening our international partnerships, the United States is working more closely than ever with our Ukrainian partners in our investigations of Russian war crimes. 

Together, American and Ukrainian prosecutors have zeroed in on specific crimes committed by Russian forces, including attacks on civilian targets. 

We are working to identify not only the individuals who carried out these attacks, but those who ordered them. 

As part of this effort, the Department’s human rights prosecutors are providing advice and assistance to the Prosecutor General’s office on specific cases. 

Our environmental crimes prosecutors are training their Ukrainian counterparts on the investigation and prosecution of potential environmental war crimes. 

And we are partnering together to apply the lessons the Justice Department has learned from its own complex criminal investigations to assist the Prosecutor General’s Office in developing a secure electronic case management and analysis system.

This is not the first time the Justice Department has worked with the Ukrainian Prosecutor General’s Office to hold accountable those who committed atrocities in Ukraine. 

Thirty years ago, the U.S. Justice Department and the Ukrainian Prosecutor General’s Office signed an agreement similar to the one that Prosecutor General Kostin and I signed in Washington last fall. 

In 1993, the goal of that agreement was to deepen our countries’ cooperation on cases involving Nazi war crimes.

As a result, the Justice Department and the Prosecutor General’s Office successfully worked together to prove atrocity crimes in Nazi-occupied Ukraine.

This was integral to the Justice Department’s own decades-long efforts to identify, denaturalize, and deport Nazi war criminals in the United States. 

All told, the Department’s Office of Special Investigations brought more than 130 cases against perpetrators of Nazi crimes.  

The Justice Department – and the American people – have a long memory.

I am proud that I successfully persuaded the same prosecutor who led the Justice Department’s work to investigate Nazi atrocity crimes to lead the Department’s current efforts to investigate atrocity crimes in Ukraine.  

I announced that effort – the War Crimes Accountability Team – when I visited Ukraine last June.

The U.S. Justice Department is also deploying our resources to hold accountable those whose criminal acts enable Russia’s continued brutality.

In March of last year, I announced the launch of the Justice Department’s Task Force KleptoCapture. That team of prosecutors, agents, analysts, translators, professional staff, and law enforcement partners has been busy seizing assets, executing arrests, and bringing prosecutions against sanctioned enablers of the Kremlin and Russian military.

Last month, I authorized the United States’ first-ever transfer of seized assets to the U.S. State Department to support the rebuilding of Ukraine. There will be more to come.

In addition to our work in partnership with Ukraine and the international community, the United States has also opened criminal investigations into war crimes in Ukraine that may violate U.S. law.

Although we are still building our cases, interviewing witnesses, and collecting evidence, we have already identified specific suspects.

Our prosecutors are working day and night to bring them to justice as quickly as possible.

What is happening here in Ukraine has significantly re-shaped the way the United States approaches war crimes accountability. 

Until recently, our jurisdiction over war crimes was limited to cases in which a U.S. national was a victim or perpetrator. 

But earlier this year – in the wake of Russia’s campaign of brutality – Congress enacted a change in the law that will allow the U.S. Justice Department to prosecute alleged war criminals from anywhere in the world who are found in the United States. 

And we intend to do so. 

This means that in the years – and decades – ahead, Russian war criminals who set foot in our country should expect to find themselves in U.S. courts of law. War criminals will find no refuge in America. 

In courageously defending itself against an authoritarian regime, Ukraine has demonstrated the stakes that we all have in the success of democracy and the Rule of Law.

The United States recognizes that what happens here in Ukraine will have a direct impact on the strength of our own democracy. 

That is why, in addition to ensuring accountability for individual war crimes, the United States also supports efforts by the international community to ensure that individuals responsible for crimes of aggression are held accountable.

In doing so we can, and we should, look to the model established by the International Military Tribunal at Nuremberg nearly eight decades ago. 

In that effort, the United States and its allies demonstrated their faith in the Rule of Law to hold accountable those who perpetrated some of the worst crimes in history. That effort was led by one of my most illustrious predecessors as Attorney General – Robert Jackson.  

Our presence here today is proof that our faith in the Rule of Law has not wavered.

My grandmother was one of five children born not far from here, in what is now Belarus. 

Three, including my grandmother, made it to the United States long before the Nazis invaded. Two did not make it. Those two were killed in the Holocaust. 

​My family does not know exactly when, or exactly where, they were killed. We do not know if anyone involved in their deaths was ever held accountable.

​The families and descendants of the victims of the current atrocities in Ukraine deserve to know what happened to their loved ones. They deserve justice.

Today, members of the international community have joined together here in Ukraine to bear witness to the atrocities being committed by Russian forces.

We have come here to remember and reaffirm the humanity of the individuals who have been victimized by Russia’s brutal crimes. 

And we have come here to seek justice and accountability under the law for all those who bear responsibility for those crimes.  

Fulfilling those tasks will demand an enormous amount of work – not only from the Ukrainian people and their leaders, but also from the international community. 

It will require painstaking attention to the details of individual crimes, sifting through enormous amounts of rapidly mounting evidence, and a relentless commitment to justice. 

​And it will require us to continue to adhere to, and put our trust in, the Rule of Law. 

The United States Department of Justice will do that work for as long as it takes.

Thank you.

Attorney General Merrick B. Garland Delivers Remarks at the JIT MOU Signing Ceremony 

Prosecutor General Kostin – Andriy – thank you for hosting the United for Justice Conference here in Lviv. It is good to see you again, and good to be back in Ukraine at this critical time.

Fellow prosecutors, thank you for making this historic moment possible.

A little over one year ago, the world watched in horror as Russia began its full-scale, unprovoked and unjustified invasion of Ukraine.

In the following twelve months, we have witnessed shocking attacks on innocent civilians, the destruction of civilian infrastructure, the forced deportation of Ukrainian children, and other blatant violations of international law. Even the city in which we gather today has been the site of deadly Russian attacks.

But the world has also watched with awe as the men and women of Ukraine have stoodtheir ground to protect their country. And we have watched with awe as brave Ukrainian investigators have rushed to process war crime scenes in the midst of ongoing conflict.

The Ukrainian people have shown the world what true courage looks like. 

As Prosecutor General Kostin says – the tools of justice must be as strong as the tools of war.  

That is why we are here. Those Russian officials and members of Russia’s armed forces who are responsible for the atrocities we have seen in Ukraine must be held to account.

Colleagues, you have been on the frontlines of that righteous task. You have been processing large amounts of evidence, including witness and victim testimonies from Ukrainian refugees. And you have been pursuing investigations within your respective jurisdictions.  

To ensure that every possible measure was being taken to coordinate that gathering of war crimes evidence, Lithuania, Poland, and Ukraine established a Joint Investigative Team – a JIT – on March 25, 2022.  

Just a month later, and for the first time in its history, the International Criminal Court signed an agreement to participate in the JIT. Not long after, Estonia, Latvia, and Slovakia became members. And later that year, Romania joined – forming the JIT as we know today.

Your collective action to ensure rapid and real-time law enforcement coordination and cooperation was far more than a practical, logistical step. It was a signal to the world that the perpetrators of this invasion would not undermine our shared commitment to free and democratic societies.

And it is one more reason – in the face of so much darkness – to be hopeful for the future of Ukraine and our ability as an international community to react quickly and decisively to unprovoked Russian aggression.

It is our honor to stand with you today.

Like you, the United States has been pursuing every avenue available to achieve justice for victims of atrocities in Ukraine.

In June of last year, I announced the launch of a War Crimes Accountability Team, to centralize and strengthen the Justice Department’s accountability efforts in the wake of Russia’s aggression. The Team has played an integral role in the Department’s ongoing investigation of potential war crimes over which the U.S. has jurisdiction.

In addition to pursuing our own domestic cases, we have engaged with our allies and partners on a bilateral and multilateral basis.

In September of last year, the Justice Department entered into a Memorandum of Understanding with the Ukrainian Prosecutor General’s Office. That MOU has already paid dividends as we work closely together.

But we recognize that investigating and prosecuting crimes of this magnitude poses a monumental challenge that can only be overcome with strong, multinational cooperation and coordination.

We are grateful for the JIT’s pursuit of justice for victims in the face of Russia’s continued aggression. We recognize the European Union’s invaluable support for the JIT, and in particular the important work done by Eurojust to ensure that the JIT has the resources it needs to succeed.

And today, we are pleased to be the first country to sign a Memorandum of Understanding (MOU) with all seven JIT national members.

The MOU will formalize and facilitate coordination between the United States and JIT member countries on our respective investigations and prosecutions.

We will back our contribution with the full force and weight of the United States government. You have our commitment that we will do everything in our power to achieve the accountability necessary for true justice.

Our mission is clear. Our resolve will not weaken. And our determination to see justice done will not waver.   

Thank you.  

Readout of Attorney General Merrick B. Garland’s Trip to Ukraine

Source: United States Department of Justice News

On Friday, March 3, the Attorney General made an unannounced trip to Lviv, Ukraine, at the invitation of Ukrainian Prosecutor General to join international partners at the “United for Justice Conference.” The Attorney General reaffirmed our determination to hold Russia accountable for crimes committed in its unjust and unprovoked invasion of Ukraine. The conference provided a forum to discuss specific initiatives and measures that the international community, alongside Ukraine, is taking to comprehensively seek justice and accountability for all those responsible for war crimes and atrocities in Ukraine.

At the Opening Session of the conference, the Attorney General provided remarks in which he discussed, among other things, the Justice Department’s role in collaborating with the Ukrainian Prosecutor General and the moral and personal responsibility he feels in pursuing accountability.

“Just over twelve months ago, invading Russian forces began committing atrocities at the largest scale in any armed conflict since the Second World War. We are here today in Ukraine to speak clearly, and with one voice: the perpetrators of those crimes will not get away with them,” said Attorney General Garland. “In addition to our work in partnership with Ukraine and the international community, the United States has also opened criminal investigations into war crimes in Ukraine that may violate U.S. law. Although we are still building our cases, interviewing witnesses, and collecting evidence, we have already identified specific suspects. Our prosecutors are working day and night to bring them to justice as quickly as possible.”

This trip is an important part of the Department of Justice’s unwavering commitment to the freedom of Ukraine.

That commitment takes two forms:

  • A determination to hold Russia accountable for war crimes committed in its unjust invasion, through the investigations and other work of the Department of Justice’s War Crimes Accountability Team; and
  • Our ongoing work to seize illicit Russian assets for the benefit of the people of Ukraine, and to prosecute those who facilitate the evasion of sanctions imposed on Russia, through Task Force KleptoCapture.

The Attorney General’s presence in Ukraine is thus not only symbolic, but strategic as well — since it serves the purpose of driving forward the operational work of the War Crimes Accountability Team and Task Force KleptoCapture.

In addition, the United States became the first country to sign a memorandum of understanding (MOU) with the seven-member Joint Investigative Team (JIT) that is investigating Russian atrocities in Ukraine. The MOU, signed by the Attorney General, will facilitate the United States’ cooperation and coordination with the JIT members as we collect evidence and investigate Russia’s atrocity crimes. It also signals our resolve that Russia’s invasion will not undermine our collective commitment to uphold human rights and preserve a free and democratic society. 

At the conference, the Attorney General also met with Ukrainian President Zelenskyy, U.S. Ambassador to Ukraine Brink, Ukrainian Prosecutor General Kostin, EU Commissioner Reynders, Polish Minister of Justice General Ziobro, and Polish National Public Prosecutor Barski, regarding operational cooperation on Russian war crimes and illicit finance and to further discussions about how the U.S. can partner internationally on these issues.

In sum, this conference both signals our joint resolve that Russia’s invasion will not undermine our collective commitment to preserving a free and democratic world and charts the way forward for our practical work to achieve that goal.

Readout of Assistant Attorney General Kristen Clarke’s Trip to Selma, Alabama

Source: United States Department of Justice News

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Selma, Alabama, over the weekend to commemorate the 58th anniversary of Bloody Sunday and meet with local organizations about the Justice Department’s commitment to civil rights and racial justice.

This morning, Assistant Attorney General Clarke spoke at the Martin and Coretta King Unity Breakfast at Wallace Community College in Selma, Alabama, reflecting on the painful history of Bloody Sunday and enumerating the Justice Department’s recent enforcement work to defend the civil rights of all people.

She said, “To quote Dr. King: ‘Selma, Alabama, became a shining moment in the conscience of man. If the worst in American life lurked in its dark streets, the best of American instincts arose passionately from across the nation to overcome it.’ The Civil Rights Division at the Justice Department is driven by that same belief. We are committed to defending the civil rights of all people in our country.” Read her full remarks here.

Later that morning, she spoke at a worship service hosted by the historic Brown Chapel African Methodist Episcopal Church. She said, “John Lewis may not be with us today, but … we all know that he fought the good fight. Today, our charge – indeed our sacred mission – is to pick up the baton that he has handed us and continue the fight for justice. The commemoration of Bloody Sunday is a moment to redouble our efforts to ensure that every American has voice in our democracy…” Read her full remarks here.

In the afternoon, Assistant Attorney General Clarke crossed the Edmund Pettus Bridge with a delegation of U.S Attorneys and hundreds of people, including civil rights leaders, distinguished clergy, elected officials and residents of Alabama.

On Monday, Assistant Attorney General Clarke will travel to Montgomery, Alabama, to meet with the U.S. Attorneys of the Attorney General’s Advisory Committee Civil Rights Subcommittee, the Equal Justice Initiative, and other civil rights stakeholders. 

Defense News: FRCSE innovates to support concurrent work on F-5N Tiger II

Source: United States Navy

The F-5s were initially purchased in the 1970s by the Air Force and then sold through foreign military sales to Switzerland. In 2002, the Department of Defense decided to repatriate many of these aircraft back to the Navy. The F-5 is a twin-engine tactical fighter aircraft that provides air-to-air combat training for Navy and Marine Corps pilots. Its reliability and low operating costs result in savings to the Navy each year in maintenance and unnecessary wear on current strike fighter aircraft like the F/A-18 Super Hornet and F-35 Lightning II without sacrificing essential pilot training in a formidable aircraft.

In 2019, the depot-level maintenance and repair of the F-5 airframe transitioned from the original equipment manufacturer to organic support, and FRCSE was designated as the U.S. Navy depot source of repair. Currently, FRCSE performs Phased Depot Maintenance (PDM). This process includes replacing certain high time structural and system components and thoroughly inspecting the aircraft in known corrosion and metal fatigue areas. Artisans use various means, including non-destructive inspection (NDI) methods to look for corrosion and/or cracks caused by wear and stress fatigue.

“The maintenance we conduct at the depot extends the service life of the aircraft, as each phase of the PDM addresses time-limited component inspections and replacements at certain flight hours,” said Cris Baldwin, FRCSE’s F-5 Production Line Director.

Planned structural component replacements include the upper cockpit longeron (UCL) and the vertical stabilizer (V-stab). The UCLs, approximately six-foot beams that run down either side of the cockpit, are the main structural components of the airframe and provide fundamental rigidity to the aircraft around the cockpit. The V-stab, another critical component, is the static part of the vertical tail that stabilizes and balances the aircraft in yaw. These load-bearing sections of the aircraft are replaced at regular intervals, but before recent process innovations, the work was not able to be done concurrently.

“One of the innovative time reduction efforts was the idea to perform the UCL and V stab work concurrently,” said Lt. Cmdr. Ryan McNulty, FRCSE’s F-5 Production Line Military Director. “Originally, these were done separately because each is a critical structural element. With one or the other removed, there is a risk that the airframe could be permanently damaged due to twisting. Fortunately, we have an in-house engineering support team and a dynamic manufacturing division that provided sound, innovative thinking in an effort to conduct these efforts concurrently.”

Concurrent work would significantly reduce the time needed to return the aircraft back to adversary operations, but the team faced risks associated with the stability of the aircraft. To conduct the UCL and V stab repairs simultaneously, the airframe had to be adequately supported.  FRCSE’s engineering and manufacturing teams designed robust shoring to sit beneath the aircraft and prevent twisting, which illustrates the level of ongoing innovation at the depot.

“The F-5 engineering team devised and performed a test to determine if and how much the airframe would flex when the UCL and V stab work was performed at the same time,” McNulty said. “The results proved that by using the shoring, the two repairs could be performed together.”

While the concurrent work for UCLs and V stabs are the most beneficial of the F-5 production line efforts to reduce the time the aircraft is at the depot, they are far from the only ones. There have been more than 45 innovative solutions proposed to help turn aircraft around faster. More than half of those solutions came from artisans on the production floor, and include V stab work stands, flight control rigging tool test kits, and a mobile, hand-held, E-drill® system to remove hard metal fasteners more than 20 times faster than twist drills. These technological advancements should provide increased productivity as the team continues to get more adept.

“The F-5 team is an amazing group of professionals with many challenges to overcome to meet the Fleet’s demand,” said Baldwin. “Over the last year, I have seen incredible improvements, and I know this line will soon become the best-performing product line at FRCSE. I’m proud of their performance and continued dedication to the warfighter.”