Month: June 2023

Source: United States Department of Justice News

A Florida resident and dual citizen of the United States and Turkey pleaded guilty yesterday in the District of New Jersey to running an extensive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment.

According to documents filed in this case and statements made in court, Onur Aksoy, 39, of Miami, ran at least 19 companies formed in New Jersey and Florida, as well as approximately 15 Amazon storefronts and at least 10 eBay storefronts (collectively, the “Pro Network Entities”), that imported from suppliers in China and Hong Kong tens of thousands of low-quality, modified computer networking devices with counterfeit Cisco labels, stickers, boxes, documentation, and packaging, all bearing counterfeit trademarks registered and owned by Cisco, that made the goods falsely appear to be new, genuine, and high-quality devices manufactured and authorized by Cisco. The devices had an estimated total retail value of hundreds of millions of dollars. Moreover, the Pro Network Entities generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.

The devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products – some of which had been sold or discarded – which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. The Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.

Fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.

Between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy often continued to order counterfeit Cisco products from the same supplier. 

Between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.

Aksoy pleaded guilty to (1) conspiring with others to traffic in counterfeit goods, to commit mail fraud, and to commit wire fraud and (2) mail fraud. He is scheduled to be sentenced on Nov. 6, and under the plea agreement that the court conditionally accepted yesterday pending sentencing, faces a sentence of four to six and a half years in prison. Also pursuant to the plea agreement, Aksoy must forfeit $15 million in illicit gains from his scheme and make full restitution to his victims. The court will determine the final sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Attorney for the United States Vikas Khanna for the District of New Jersey; Acting Special Agent in Charge Eddy Wang of the Homeland Security Investigations (HSI) Los Angeles Field Office; Special Agent in Charge Bryan Denny of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Floyd Martinez of the General Services Administration Office of Inspector General (GSA-OIG), Southeast and Caribbean Division; Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS), Economic Crimes Field Office; Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office; and Special Agent in Charge Ricky J. Patel of the HSI Newark Field Office made the announcement today. 

HSI, DCIS, GSA-OIG, NCIS, and CBP are investigating the case.

Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward for the District of New Jersey are prosecuting the case.

The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.

If you believe you are a victim of Aksoy or the Pro Network Entities, please visit www.justice.gov/largecases or www.justice.gov/usao-nj/united-states-v-onur-aksoy-pro-network for more information.

The Pro Network Entities include at least the following:

Pro Network Companies	Approximate Month and Year of Formation	State of Formation
Pro Network LLC	August 2013	New Jersey
Netech Solutions LLC	November 2016	Florida
Target Network Solutions LLC	January 2017	Florida
Easy Network LLC	April 2017	New Jersey
ACE NETUS LLC (aka Ace Network)	April 2017	New Jersey
My Network Dealer LLC	April 2017	New Jersey
1701 Doral LLC	May 2017	New Jersey
Maytech Trading LLC	August 2017	Florida
NFD Trading LLC	September 2017	Florida
Kenet Solutions LLC	September 2017	Florida
Team Tech Global LLC	January 2018	New Jersey
Tenek Trading LLC	January 2018	Florida
The Network Gears LLC	February 2018	Florida
All Networking Solutions LLC (aka All Network)	April 2018	Florida
San Network LLC	October 2018	Florida
Pro Network US Inc.	January 2019	Florida
Jms Tek LLC	August 2019	Florida
Renewed Equipment LLC	August 2021	Florida
Pro Ship US LLC	August 2021	Florida

Pro Network Amazon Storefronts	Approximate Date of Earliest Known Activity
Albus Trade Hub	January 2014
EasyNetworkUS	March 2014
Get Better Trade	July 2015
Mercadeal	February 2017
Netech Solutions	February 2018
Netkco LLC	September 2014
NFD Trading LLC	January 2018
Palm Network Solutions	June 2017
Renewed Equip	August 2017
Servtaur	August 2019
Smart Network	July 2017
SOS Tech Trade	August 2017
Target-Solutions	September 2020
TeamTech Global	March 2016
TradeOrigin US	August 2015

Pro Network eBay Storefronts	Approximate Date of Earliest Known Activity
connectwus	March 2014
futuretechneeds	July 2017
getbettertrade	July 2017
getontrade	April 2016
maytechtradingllc	October 2017
netechsolutions	April 2017
netkco	September 2014
nfdtrading	February 2018
smartnetworkusa	January 2014
tenektradingllc	May 2018

Source: United States Department of Justice News

Remarks as Delivered

Good morning. I am Kristen Clarke, the Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice. Today is a good day. I am here with U.S. Attorney Alamdar Hamdani for the Southern District of Texas, who you’ll hear from shortly as well.

We are here this morning to announce that the Justice Department has secured a settlement agreement in our environmental justice investigation involving the City of Houston. The City of Houston, as you have heard, has agreed to take a number of critical actions to address illegal dumping here in the city, an issue that has long plagued the predominately Black and Latino residents of Houston’s Trinity/Houston Gardens Super Neighborhood 48 and other similar communities in the city. The agreement memorializes the City of Houston’s – and Mayor Turner’s – efforts to ensure racially equitable responses to the environmental hazard and improve the quality of life of members of the Houston community.

Illegal dumping is a long-standing environmental justice issue, which, in many cities across the country, disproportionately burdens Black and Latino communities. Illegal dumping can contaminate surface water, groundwater and soil. It decreases property values and discourages economic development, often in communities that cannot afford to withstand these impacts. Illegal dumping contributes to increased flooding, when contaminated waste blocks the flow of water to appropriate outlets. And illegal dumping contributes to increases in rodents and mosquitoes, which can carry diseases.

Last summer, the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Texas launched an investigation into whether the City of Houston complied with the nondiscrimination requirements of Title VI of the Civil Rights Act of 1964, regarding the city’s response to illegal dumping. This investigation was in response to a complaint we received, which alleged that Houston engaged in racial discrimination in its response to illegal dumping in violation of Title VI of the Civil Rights Act. Over the course of our 10-month investigation, we conducted an extensive review of the City of Houston’s efforts to address illegal dumping. We heard from residents and other impacted stakeholders about the effects of illegal dumping, and the impact on their lives and communities. We also worked cooperatively with the City of Houston at every step of the way. The city provided documents and information and made relevant officials available for interviews.

In March, as you heard, the City of Houston announced the One Clean Houston initiative, a truly comprehensive plan to address pervasive illegal dumping and its negative impacts on the health, safety and quality of life of Houston residents. One Clean Houston focuses on rapid cleanup, better enforcement and prevention and education. It increases funding for heavy trash, dumping and litter abatement; establishes efforts to better facilitate reporting of illegal dumping, targeting major repeat offenders and improved access to neighborhood depositories. Many of the aspects of the One Clean Houston initiative are responsive to the government’s concerns that were set forth in the Title VI complaint that we received, and we heard from residents and others during the course of our investigation. No doubt, this initiative is an important step in addressing illegal dumping here in Houston.

Today’s agreement builds upon the One Clean Houston initiative. In addition, to confirming the city’s ongoing commitment to One Clean Houston, the agreement outlines a series of additional actions that the city will take to address illegal dumping. As set forth in the agreement, the city has agreed to additional community outreach and engagement with neighborhood groups, community leaders and other residents. The city has agreed to monitoring and to providing additional data and information about its efforts to address illegal dumping. The city has also committed to exploring whether additional actions can be taken against commercial sources of illegal dumping.

In crafting this agreement, we made sure to center the experiences of impacted people and communities. This agreement is also built on principles of racial justice and racial equity. And I fully expect this agreement will bring about lasting and enduring change and transformation for communities that for far too long have been beleaguered by illegal dumping. In a few minutes, U.S. Attorney Hamdani will provide more details on the settlement agreement.

This agreement marks the second time that the U.S. Justice Department has reached a settlement in an environmental justice investigation under our federal civil rights laws. Advancing environmental justice is a top priority for the U.S. Department of Justice. We know the dire consequences that environmental injustice had on communities of color across this country. It has impacted the health outcomes of people who have been forced to endure unsafe and unsanitary conditions. It can also lower property values and impact the quality of life for residents and communities. And it is directly contrary to the fundamental principles that all people are entitled to be treated with dignity and respect. Because of these harms, last year, the Justice Department announced a Comprehensive Environmental Justice Enforcement Strategy, where we vowed to use all of our enforcement tools and authorities to confront systemic barriers that deny Black and Brown communities access to clean air, clean water and equitable infrastructure. The agreement we are announcing today makes clear our commitment.

This agreement should also send a strong message to jurisdictions across the country regarding our commitment to promoting environmental justice. We will remain steadfast on these issues. And we will do this work in communities across the country: big or small, North or South, East or West, urban or rural. We will leave no community behind.

I want to acknowledge again the City of Houston, under the leadership of Mayor Turner. The City of Houston, through the initiation of its One Clean Houston initiative, has committed significant money, time and other resources towards addressing illegal dumping, especially in its most underserved communities. The comprehensive nature of the One Clean Houston program reflects the city’s thoughtfulness and intentionality regarding this environmental hazard. Importantly, the City of Houston and the Justice Department are committed to engaging with Houston residents in affected communities to explore and implement strategies to address illegal dumping. The Justice Department is also committed to working with the city to monitor the implementation of the program and this agreement to improve the health, welfare and safety of impacted communities.

In closing, I also want to acknowledge the people, the residents of the City of Houston, and especially those in Trinity/Houston Gardens Super Neighborhood 48, as well as those in Kashmere Gardens, Sunnyside, 3rd Ward, 5th Ward and so many others who reached out to us. You – you – provided the vital information about your day-to-day experiences and efforts in this area, and you remained patient yet vigilant while we carried out this investigation. You shared with us your love for your city, your hope in the city’s and federal government’s efforts to work collaboratively to address these issues and your ideas and strategies that were targeted to your individual communities. It is through your energy and efforts that we have reached this historic agreement today, and we appreciate all that you’ve contributed to this moment.

I’ll now turn the floor over to my colleague, United States Attorney Hamdani who will discuss the resolution agreement in further detail.

Source: United States Department of Justice News

A Virginia man was sentenced today to two years in prison for his role in a scheme to defraud Medicare of over $1 million in prescription drug benefits.

According to court documents, Ronald A. Beasley II, 33, of Portsmouth, was the pharmacist in charge at NH Pharma, a pharmacy located in Lake Mary, Florida. Through NH Pharma, Beasley and his co-conspirators billed Medicare for expensive compound drug creams that they never actually purchased or dispensed, instead providing Medicare patients an inexpensive compound drug cream that Medicare did not cover. In fact, NH Pharma did not buy enough of the expensive prescription drugs to fill all the prescriptions NH Pharma billed to Medicare. In total, Beasley and his co-conspirators received more than $1 million in fraudulent Medicare proceeds.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge David Walker of the FBI Tampa Field Office; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Miami Regional Office made the announcement.

The FBI and HHS-OIG investigated the case.

Trial Attorneys Reginald Cuyler Jr. and Darren C. Halverson of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Source: United States Department of Justice News

            WASHINGTON – The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against an agent from the Federal Bureau of Investigation who was involved in the fatal shooting, on December 7, 2022, of Troy N. Bullock.

            The U.S. Attorney’s Office and the Metropolitan Police Department (MPD) conducted a comprehensive review of the incident. This included a review of law enforcement and civilian eyewitness accounts, surveillance footage from inside of the Metro station, physical evidence, recorded cell phone footage, recorded radio communications, forensic reports, and the autopsy report.

            According to the evidence, on December 7, 2022, at approximately 6:11p.m., an FBI Special Agent was standing on the platform at the Metro Center station.  The agent, who was off duty at the time, observed Mr. Bullock attempting to initiate a physical confrontation with an individual who was also standing on the platform by challenging him to a fight.  To defuse the situation, the agent indicated to Mr. Bullock that he should leave the individual alone.  Mr. Bullock then became physically aggressive toward the agent by grabbing the agent and pushing him over a utility wall.  The wall is approximately three feet high.  The agent fell backward over the utility wall, and Mr. Bullock fell over the wall with him – a fall of over eight feet.  Below, Mr. Bullock resumed his attack on the agent, who sustained an injury in the fall, drew his service weapon, and shot Mr. Bullock.  Despite life-saving efforts, Mr. Bullock was pronounced dead at the scene.   

            After a careful, thorough, and independent review of the evidence, federal prosecutors have found insufficient evidence to prove beyond a reasonable doubt that the agent used excessive force under the circumstances.

Use-of-force investigations generally

            The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law.  To prove civil rights violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary.  Proving “willfulness” is a heavy burden.  Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids. 

            The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.