Source: United States Navy
Under Secretary of the Navy, the Honorable Erik Raven, and Vice Chief of Naval Operations Adm. Lisa Franchetti, visited Puget Sound Naval Shipyard & Intermediate Maintenance Facility March 29, 2023, to discuss implementation of the Shipyard Infrastructure Optimization Program and Naval Sustainment System – Shipyards, and to assess ongoing seismic upgrades to the shipyard’s dry docks.
Source: United States Department of Justice News
Damian Williams, the United States Attorney for the Southern District of New York, announced that AMIR BRUNO ELMAANI, a/k/a “Bruno Block,” the founder of the cryptocurrency “Oyster Pearl,” pled guilty yesterday to tax offenses. In connection with his guilty plea, ELMAANI admitted that he had secretly minted and sold for his own gain Pearl cryptocurrency tokens, which caused the price of Pearl tokens to plummet, and that he did not pay income tax on certain cryptocurrency profits. ELMAANI agreed that he caused a tax loss of over $5.5 million. ELMAANI pled guilty before United States District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: “Amir Elmaani violated the duty he owed to pay taxes on millions of dollars of cryptocurrency profits. As he admitted, he also violated the trust of investors in the cryptocurrency he founded. Our Office will continue to bring groundbreaking cases, like this one, to ensure participants in cryptocurrency markets play by the rules.”
Based on the allegations in the Indictment, in the Superseding Information to which ELMAANI pled guilty, the plea agreement, and other statements made and documents filed in court:
In September and October 2017, ELMAANI began promoting online a new cryptocurrency known as Pearl tokens. Using a variation of his online pseudonym “Bruno Block,” ELMAANI stated that he planned to develop an online data-storage platform, known as Oyster Protocol, which would allow users to purchase online data storage with Pearl tokens. Instead of using his real name, ELMAANI operated almost exclusively online under the pseudonym “Bruno Block.” ELMAANI concealed his true identity from his prospective employees and business associates and never met them in person.
In late October 2018, although the number of Pearl tokens was purportedly fixed, ELMAANI used his access to the blockchain technology used to create Pearl tokens to mint new tokens, which he took for his own personal use (the “Exit Scheme”). ELMAANI thereby increased the total volume of Pearl tokens. Shortly after creating the new tokens, ELMAANI converted the Pearl tokens he had obtained to other types of cryptocurrency on an online marketplace or exchange. As a result of ELMAANI’s conduct, trading in Pearl tokens halted on that exchange and the price of Pearl tokens held by investors dropped substantially. Pearl tokens were subsequently de-listed from the primary exchange where they were traded. Subsequent to the Exit Scheme, ELMAANI used his friends and family to receive cryptocurrency and to transfer funds to a bank account in his name.
While ELMAANI initially attempted to hide even “Bruno Block’s” involvement in the Exit Scheme, he later effectively admitted to the conduct online under his “Bruno Block” pseudonym. In a recorded call with the then-chief executive officer (“CEO”) of Oyster Protocol Inc., after the Exit Scheme, the CEO asked ELMAANI why he had to take the additional new Pearl tokens if he had already cashed out millions of dollars’ worth of Pearl tokens in the past. ELMAANI responded, in part, that “taxes are pretty nasty.” ELMAANI carried out the Exit Scheme only days before the exchange he had used to cash out his Pearl tokens was set to require “know your customer” personal identifying information from its users.
In connection with his plea, ELMAANI admitted in the plea agreement that:
In or about 2017, using the alias “Bruno Block,” I began an online project called the “Oyster Protocol.” In support of this project, an initial coin offering (“ICO”) was held in or about October 2017, in which a token named “Pearl” (“PRL”) was issued. I stated in public forums that after the ICO, the supply of PRL would not increase, and that the smart contract that created PRL would be “locked.” Contrary to these statements, on or about October 29, 2018, I used the smart contract to mint new PRL, without telling anyone, including others who worked on the Oyster Protocol project. I then sold these newly minted PRL on a digital trading platform. I was aware that the counterparties who were buying these newly minted PRL likely were not aware of my reopening of the smart contract, and did not know that I had just substantially increased the total supply of PRL. After Oyster management learned of my reopening of the smart contract and alerted the public, the price of PRL plummeted.
ELMAANI filed a false 2017 tax return stating that he had only approximately $15,000 of income from a “patent design” business, and he filed no return and reported no income to the Internal Revenue Service (“IRS”) in 2018. Nevertheless, ELMAANI spent, in 2018, over $10 million for the purchase of multiple yachts, $1.6 million at a carbon-fiber composite company, hundreds of thousands of dollars at a home improvement store, and over $700,000 for the purchase of two homes, one of which was titled in the name of a shell company and the other in the name of two of his associates. The tax loss to the United States from ELMAANI’s conduct was approximately $5,523,794.
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ELMAANI, 31, of Martinsburg, West Virginia, pled guilty to one count of subscribing to a false tax return for the year 2017, which carries a maximum sentence of three years in prison, and one count of failure to file a tax return for the year 2018, which carries a maximum sentence of one year in prison. ELMAANI also agreed to pay restitution in the amount of at least $5,523,794.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation and the IRS and also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Adam Hobson, and Drew Skinner are in charge of the prosecution.
Source: United States Department of Justice News
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned a 14-count superseding indictment charging three men and two women with trafficking cocaine in the District of Puerto Rico beginning in 2021. This is a joint investigation between the Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI) with collaboration from U.S. Customs and Border Protection Air and Marine Operations (CBP), the Drug Enforcement Administration (DEA), the United States Postal Inspection Service (USPIS), and the Puerto Rico Police Bureau (PRPB).
According to the charging document, the defendants conspired to import cocaine into the United States from the Dominican Republic from November 2021 through April 2023. The defendants and the counts in which they are charged are:
[1] Osvaldo Hernández-Camacho, a.k.a. “Shaq/Oso”: Counts 1 through 13
[2] Nelson Rivera-Suárez, a.k.a. “Papo”: Counts 1 through 9
[3] Edgardo Luis Matos-Santos, a.k.a. “Bebi”: Counts 1 through 12
[4] Xiomarie Marrero-Álvarez, a.k.a. “Xiomy”: Counts 1, 4, 7, 10, 13, 14
[5] Yahaira Santos-Castillo, a.k.a. “Yaja”: Counts 1, 4, 7, 10
The counts charged are:
Count One – Conspiracy to Import a Controlled Substance into the United States – not later than November 2021
Count Two – Importation of a Controlled Substance into the United States – October 15, 2022
Count Three – Importation of a Controlled Substance into the United States – November 17, 2022
Count Four – Conspiracy to Distribute and to Possess with Intent to Distribute a Controlled Substance – not later than November 2021
Count Five – Possession with Intent to Distribute a Controlled Substance – October 15, 2022
Count Six – Possession with Intent to Distribute a Controlled Substance – November 17, 2022
Count Seven – Conspiracy to Possess with Intent to Distribute a Controlled Substance on Board a Vessel of the United States – November 2021
Count Eight – Possession with Intent to Distribute a Controlled Substance on Board a Vessel of the United States – October 15, 2021
Count Nine – Possession with Intent to Distribute a Controlled Substance on Board a Vessel of the United States – November 17, 2022
Count Ten – Possession of Firearms in Furtherance of a Drug Trafficking Crime – November 2021
Count Eleven – Firearm Related Murder in Furtherance of a Drug Trafficking Crime – November 17, 2022
Count Twelve – Murder of a Federal Law Enforcement Officer in Furtherance of Drug Trafficking – November 17, 2022
Count Thirteen – Conspiracy to Commit Money Laundering – year 2022
Count Fourteen – Obstruction of Justice – November 17, 2022
The indictment includes controlled substances and money laundering forfeiture allegations regarding the following property:
The indictment also includes firearms forfeiture allegations regarding the following items:
The indictment alleges that the defendants made multiple trips between Puerto Rico and the Dominican Republic to transport narcotics. It also claims that on November 17, 2022, defendants Osvaldo Hernández-Camacho and Edgardo Luis Matos-Santos, aiding and abetting Joseamid Vázquez-Torres, a.k.a. “El Pana/El Capi/Jose”, not charged herein, did knowingly and intentionally kill, and counsel, command, induce and cause the intentional killing of Michel Maceda, a Federal Law Enforcement Officer engaged in the performance of his official duties.
“The conduct charged in this Superseding Indictment proves that firearms in the hands of drug traffickers pose a grave threat to our community and to our law enforcement partners,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “For that reason, the U.S. Attorney’s office remains committed to the investigation and prosecution of transnational drug traffickers. We will find them and bring them before the courts to face the consequences of their crimes.”
“One of the things we in the FBI take pride in is our expertise in investigating the big picture scheme. That is, doing the painstaking, technical, and often tedious work of playing the long game to understand criminal enterprises, and then taking them down. These arrests are the results of that process, and we are committed to continue to do this work, together with our partners, to bring all those responsible to justice,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “Drug trafficking is the root of many of the evils that plague our society and sometimes, even the men and women sworn to serve and protect the people, become the victims of the violence that stems from it. This makes our work more important and more urgent. This is why we can’t and won’t ever tire of bringing our best to these cases, no matter how long they take to complete.”
“The responsibility of our law enforcement officers is to safeguard our borders, they leave their homes daily to enforce the federal laws and protect the United States, unfortunately that is a dangerous job,” stated HSI Acting Special Agent in Charge Rebecca González-Ramos. “It is our duty to protect each other as Law Enforcement, any assaults or threats to the ones risking their lives to protect our borders is a direct attack to the United States and will not be tolerated.”
“I am proud of the work of CBP Air and Marine Operations Agents, along with our federal partners, for their relentless work to bring the defendants to justice,” stated Troy Miller, Acting Commissioner for U.S. Customs and Border Protection. “Marine Interdiction Agent Maceda’s sacrifice is a testament to CBP’s unwavering commitment to protecting our nation.”
“CBP Air and Marine Operations agents remain committed to interdict and deter transnational criminal organizations that continue to smuggle their contraband into our shores,” indicated Augusto Reyes, Director of Air and Marine Operations for Puerto Rico and the U.S. Virgin Islands.
If convicted, the defendants face a minimum sentence of 10 years in prison, and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant United States Attorney (AUSA) and Chief of the Transnational Organized Crime Section Max J. Pérez-Bouret; Deputy Chief of the Transnational Organized Crime Section, AUSA María L. Montañez-Concepción; and AUSA Ryan R. McCabe are in charge of the prosecution of the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Source: United States Navy
NAS PATUXENT RIVER, Md. – This Earth Day will be an extra-special one for Naval Air Station (NAS) Patuxent River. The Navy base’s Environment Division will be honored by St. Mary’s County with a Sustainability Award for a shoreline restoration project to stop soil erosion and rebuild natural habitat areas on the Patuxent River.
Source: United States Navy
Sea Dragon is a U.S.-led, multinational exercise designed to practice and discuss anti-submarine warfare tactics to operate together in response to traditional and non-traditional maritime security challenges in the Indo-Pacific region. In its fifth year, Sea Dragon 23 brought Maritime Patrol and Reconnaissance Aircraft (MPRA) communities together from the Royal Canadian Air Force (RCAF), Indian Navy (IN), Japan Maritime Self-Defense Force (JMSDF), Republic of Korea Navy (ROKN), and the United States Navy.
The two-week exercise, which began March 15, focused on advanced-level anti-submarine warfare (ASW) tactics training – as well as successful integration and participation with U.S. allies and partners in the Indo-Pacific region.
“Exercise Sea Dragon is a significant opportunity to work with and build upon our strong multi-national relationships while we share and hone complex warfighting skills,” Joint Region Marianas Commander Rear Adm. Benjamin Nicholson said. “We are facing major geopolitical shifts in this region, and maintaining interoperability between our forces is important now, more than ever, as our competitors continue to push the limits of the international norms and the rule of law we work to uphold. Training opportunities like these in the Marianas not only prepare us to defend together, but deter those who would challenge our charge to maintain a free and open Indo-Pacific.”
Commander, Task Force (CTF) 72 sent two P-8A Poseidon aircraft from Patrol Squadron (VP) 10 “Red Lancers” and VP-45 “Pelicans”. Upon exercise completion, squadrons completed 35 missions with approximately 170 flight hours logged between all participants.
JMSDF won this year’s Sea Dragon Championship Belt, highlighting high scores in simulated torpedo deployment speed and accuracy across four attacks on target. CTF-72 staff, along with U.S. Naval Undersea Warfare Center reps from Japan and Hawaii, conduct the grading to determine the winner. The IN, ROKN and VP-45 were awarded additional prizes for other notable ASW performances during the competition.
The primary objective of Sea Dragon 23 was high-competency demonstration and practice of advanced ASW integrated training alongside allied and partner nations committed to the team effort of maintaining security in the Indo-Pacific region.
“Sea Dragon is an invaluable exercise. It gives participating countries’ ASW teams a platform to showcase and improve the interoperability of their systems, to understand the ASW procedures, to streamline our processes, and to grow as a team,” said IN Lt. Cmdr. Ankita Shambhudas.
Aside from the U.S. P-8A Poseidon, allied and partner aircraft participating in this exercise were the RCAF CP-140 Aurora, JMSDF Kawasaki P-1, ROKN P-3 Orion, and IN P-8I Neptune.
“The Kawasaki P-1 aircraft is made in Japan and has excellent anti-submarine capability. To continue to provide quality security in the Indo-Pacific region, cooperating and training among other countries is essential,” said JMSDF Lt. Cmdr. Motoya Tomioka, assigned to JMSDF First Air Group.
During the exercise, aircrews also coordinated ASW evolutions against simulated and practice targets, demonstrating their ability to successfully attack an objective from the air.
The Red Lancers of VP-10, part of CTF-72, are stationed in Jacksonville, Florida, and are currently deployed to Kadena Air Base in Okinawa, Japan. The Pelicans of VP-45, part of CTF-72, are also stationed in Jacksonville, Florida, and are currently deployed to Misawa Air Base, Japan. Throughout the deployment, both squadrons have conducted maritime patrol and reconnaissance and theater outreach operations within the U.S. 7th Fleet area of operations.
U.S. 7th Fleet is the U.S. Navy’s largest forward-deployed numbered fleet, and routinely interacts and operates with allies and partners in preserving a free and open Indo-Pacific region.