Month: July 2024

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Justice Department to Recover Nearly $85M in Additional Funds Linked to 1MDB Scheme

Source: United States Department of Justice Criminal Division

The Justice Department has reached an agreement with “Jasmine” Loo Ai Swan (Loo), the former general counsel of 1Malaysia Development Berhad (1MDB), Malaysia’s sovereign investment development fund, to recover artwork by Pablo Picasso and a financial account in Switzerland traced to funds allegedly embezzled from 1MDB. Additionally, the Justice Department has obtained forfeiture orders on other assets allegedly purchased with 1MDB funds by Low Taek Jho, also known as Jho Low (Low), including diamond jewelry and artwork by Vincent Van Gogh, Claude Monet, Pablo Picasso, Jean-Michel Basquiat, and Diane Arbus. 

The department previously brought numerous civil forfeiture cases against assets that it alleges were acquired by Low and his co-conspirators using funds allegedly embezzled from 1MDB. According to the civil forfeiture complaints, from 2009 through 2015, more than $4.5 billion in funds belonging to 1MDB were allegedly misappropriated by high-level officials of 1MDB and their associates, including Low and Loo, through a criminal conspiracy involving international money laundering and bribery. 1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment. Its funds were intended to be used to improve the well-being of the Malaysian people.

The agreement with Loo resolves the civil forfeiture action against the Picasso artwork and financial account in Switzerland under her control, which are collectively valued at approximately $1.8 million. The agreement with Loo announced today does not release any criminal claims against her. 

The forfeiture of the other artwork and jewelry allegedly purchased by Low, which is based on a recent settlement agreement entered into in connection with the real estate and artwork forfeitures in two other cases, resolves three additional civil forfeiture cases filed in the U.S. District Court for the Central District of California.  The collective value of these assets, together with the Loo assets, is estimated to be nearly $85 million.   

Prior to this settlement, in total, the United States has returned or assisted in the return to Malaysia of over $1.4 billion in assets associated with the international money laundering, embezzlement, and bribery scheme.  

Low separately faces criminal charges in the Eastern District of New York for allegedly conspiring to launder billions of dollars embezzled from 1MDB and for conspiring to violate the Foreign Corrupt Practices Act by allegedly paying bribes to various Malaysian and Emirati officials, and in the District of Columbia for allegedly conspiring to make and conceal foreign and conduit campaign contributions during the United States presidential election in 2012. The agreement with Loo announced today does not release any entity or individual from filed or potential criminal charges.

The FBI’s International Corruption Squads in New York City and Los Angeles and IRS Criminal Investigation Los Angeles Field Office are investigating the case.  

Trial Attorneys Barbara Levy, Sean Fern, Jonathan Baum, and Joshua Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney Jonathan Galatzan for the Central District of California are prosecuting the case, with significant assistance from the Justice Department’s Office of International Affairs and MLARS’ Program Management Staff.

The Justice Department also appreciates the significant assistance provided over the course of this investigation and in particular related to the recovery of these assets by the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police, the Malaysian Anti-Corruption Commission, the Attorney-General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Department, the Office of the Attorney General and the Federal Office of Justice of Switzerland, and the Attorney General’s Chambers of the Territory of the British Virgin Islands.

The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in MLARS, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov or https://tips.fbi.gov/.

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Leaders of Justice Department, Federal Trade Commission, European Commission and U.K. Competition and Markets Authority Issue Joint Statement on AI Competition

Source: United States Department of Justice Criminal Division

Today, Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, Chair Lina M. Khan of the Federal Trade Commission, Executive Vice President Margrethe Vestager of the European Commission and Chief Executive Sarah Cardell of the U.K. Competition and Markets Authority issued a joint statement on competition in generative AI foundation models and AI products.

Through this joint statement, the four antitrust enforcers pledged to use their available powers to promote effective competition in AI to ensure the public reaps the full benefits of these technologies. The statement is available at www.justice.gov/atr/media/1361306/dl?inline.

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Defense News: USS Blue Ridge and Commander, 7th Fleet depart Malaysia

Source: United States Navy

During the visit, Vice Adm. Fred Kacher, commander, U.S. Seventh Fleet, met with Malaysia Deputy Chief of Navy Vice Adm. Dato’ Zulhelmyu, Malaysia Maritime Enforcement Agency Director General Vice Adm. Datuk Saiful, and other key leaders.

“Thank you to the people of Port Klang and Kuala Lumpur for their warm welcome of our Blue Ridge and Seventh Fleet teams,” said Vice Adm. Kacher. “Malaysia is a key partner for us in the region, and this port visit provides us an important opportunity to meet with our Royal Malaysian Navy counterparts, engage with the community, and enjoy the local sights and culture.”   

While in port, crew members returned the hospitality of their Malaysian hosts by volunteering in a community relations (COMREL) events organized by Blue Ridge’s Command Religious Group, demonstrating and reinforcing the U.S. commitment to their Malaysian counterparts beyond maritime matters.

Service members prepared, packed, and delivered meals to refugees and other underserved members of the community at the Assembly Soup Kitchen, an all-volunteer organization dedicated to providing hot and nutritious meals to those in need, predominately in the Klang Valley.

“It’s rewarding to take part in helping those in need,” said Yeoman 2nd Class Amanda Martin, assigned to Commander, U.S. 7th Fleet. “Food is a vital resource that everyone needs, so it’s something truly special when you can ensure someone gets fed.”

Another way some Sailors were able to connect with the local community was through sports. The Sailors participated against local teams in soccer and volleyball.

“Even though we didn’t speak the same language, we still laughed and had fun together,” said Retail Specialist 2nd Class Isaiah Taitt, assigned to Blue Ridge. “Through sports, you’re able to quickly build bonds that transcend culture, language, ethnicity and background.

Capt. Nicholas DeLeo, Blue Ridge’s commanding officer, spoke with local media and community leaders on strengthening the cooperation and deepening the friendship between the two countries.

The crew also indulged in well-deserved rest and recuperation through events organized by the ship’s Morale, Welfare and Recreation (MWR) department, including tours of Klang Town, Kuala Lumpur and surrounding attractions. Service members decompressed while immersing themselves in the rich Malaysian culture, contributing to the ship’s overall mission readiness.

Port visit events like MWR tours, COMRELS, joint exercises and collaborative efforts not only heighten morale, but also play a critical role in enhancing people-to-people relationships and showcase our partners’ mutual commitment to maritime freedom and regional security.

As the 7th Fleet flagship, USS Blue Ridge is the oldest operational ship in the Navy and routinely operates with allies and partners in preserving a free and open Indo-Pacific region.

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Two Dominican Nationals Extradited in Connection with Grandparent Scam

Source: United States Department of Justice Criminal Division

Two residents of Santiago de los Caballeros, Dominican Republic, were extradited to the United States last week and made their initial appearance in Newark federal court yesterday on charges relating to their participation in a sprawling “grandparent scam” that defrauded elderly Americans out of millions of dollars.

Rafael Ambiorix Rodriguez Guzman, also known as Max Morgan, 59, and Felix Samuel Reynoso Ventura, also known as Fili and Filly The Kid, 37, are among 11 Dominican Nationals charged in a 19-count indictment filed in the U.S. District Court for the District of New Jersey that was unsealed on April 29. Following their initial appearance yesterday, the court ordered both men detained pending trial.

According to the indictment, Rodriguez Guzman, Reynoso Ventura and their co-conspirators engaged in a long-running “grandparent” or “family in need of bail” scam against hundreds of seniors across the United States, including in New Jersey, New York, Pennsylvania and Massachusetts. Both Rodriguez Guzman and Reynoso Ventura are alleged to have worked in the call centers in the Dominican Republic from which the scam operated, where they phoned elderly Americans and sought to steal their money.

As detailed in court filings, members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident and needed help.

Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers” — including Rodriguez Guzman and Reynoso Ventura — allegedly impersonated defense attorneys, police officers or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones. The cash was typically retrieved by couriers sent to the victims’ homes or mailed by victims at the direction of the closers.

Rodriguez Guzman and Reynoso Ventura each face multiple charges, including mail and wire fraud conspiracy, wire fraud, mail fraud and conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each count, a maximum fine of $250,000 for each count of the mail and wire fraud charges and a maximum fine of $500,000 for money laundering conspiracy.

“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue criminals who defraud victims through so-called ‘grandparent scams,’” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable Americans from abroad.  We thank the government of the Dominican Republic for extraditing these defendants to the United States to face charges.”

“As alleged, these two defendants played a role in a scheme that relied on the love and devotion of elderly victims in order to cheat them out of millions of dollars,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “In this ‘grandparents’ scam,’ some of the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. Conspirators like Rodriguez Guzman and Reynoso Ventura allegedly impersonated a variety of people – police officers, lawyers and others – to convince the victims to pay up, which the panic-stricken grandparents often did. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.”

“These defendants and their co-conspirators are accused of heartlessly robbing countless elderly victims of their precious time and often their life savings – all from more than 1,500 miles away, said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “Rafael Ambiorix Rodriguez Guzman and Felix Samuel Reynoso Ventura were among the 16 individuals charged in this appalling scheme, which spanned at least four U.S. states and allegedly threatened hundreds of innocent Americans’ livelihoods. The merciless greed of perpetrators is boundless, but is no match for HSI New York’s El Dorado Task Force, its Cyber Intrusion Group and the greater law enforcement community. I am proud to stand alongside our global partners in our relentless commitment to the safety and overall wellbeing of the vulnerable public.”

“The grandparent scam is a cruel fraud scheme that deliberately preys on elderly and vulnerable persons within society. Perpetrators, often cowardly operating off-shore, cause extreme emotional and financial harm to the innocent people they target in commission of this crime,” said Acting Special Agent in Charge Bradley Parker of the Social Security Administration Office of the Inspector General (SSA-OIG) Boston New York Field Division. “SSA OIG proudly joined HSI, the FBI, the Justice Department and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries and we appreciate the diligence of the U.S. Marshals Service in facilitating the extradition of these defendants from the Dominican Republic to New Jersey to hold them accountable for their actions.”

“We are now one step closer to holding accountable the alleged fraudsters who financially exploited hundreds of elderly Americans,” said Commissioner Edward A. Caban of the New York City Police Department (NYPD). “This should serve as a reminder to other criminals about the extensive reach of New York law enforcement and our unwavering commitment to delivering justice to all victims. I applaud our NYPD investigators and all of our federal partners for their dedication to this important case.”

HSI, SSA-OIG, NYPD and the FBI are investigating the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from the Dominican Republic of the defendants with assistance from the United States Marshals Service. Justice Department officials also recognized the critical cooperation of the Dominican government in effecting the extradition of Rodriguez Guzman and Reynoso Ventura pursuant to the treaty between the two countries.

Trial Attorneys Jason Feldman, Joshua Ferrentino and Emily Powers of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Carolyn Silane for the District of Jersey are prosecuting the case.

If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

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

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Defense News: U.S. Coast Guard, Peruvian, Mexican Partners Collaborate on First Urban Search and Rescue Operations in Exercise RIMPAC 2024

Source: United States Navy

Hurricanes, typhoons, flooding and tsunamis can inundate coastal communities and trap residents in their buildings, often driving them into their attics or roof spaces to escape rising waters. Members from the U.S. Coast Guard Pacific Strike Team, the Peruvian Naval Infantry and the Mexican Navy collaborated for three days of combined training, simulated search and rescue coordination and survivor extraction and triage as part of the humanitarian assistance and disaster response component of RIMPAC.

The exercises paired teams from the three countries in a range of disaster scenarios. The Mexican and Peruvian teams brought expertise at rescuing survivors from damaged structures, while the U.S. team contributed tactics for water-based rescues and the detection and identification of hazardous materials.

“Natural disasters present serious rescue challenges in urban areas, so we were all grateful for the chance to share our experiences and tactics that have saved hundreds of lives during recent storms and flooding events around the United States,” said Chief Warrant Officer Ian Thompson, the Urban Search and Rescue coordinator for the USCG Pacific Strike Team. “All three teams leave this collaboration with a greater capability to collaborate and to save lives after disasters in our home countries and abroad.”

The teams drove inflatable boats into a simulated flooded community and practiced cutting through a roof. In a separate exercise area on Marine Corps Base Hawaii, they practiced vertical extraction, or moving injured medical patients up and out of buildings using vertical rescue systems with tripods, ropes and pulleys and entering confined spaces with atmospheric contamination to rescue victims.

Additionally, the USCG utilized the Federal Emergency Management Agency’s Geographic Information Systems “SARCOP.” This smartphone app connects rescue coordinators and search teams via a common operating picture. By the end of the exercise, the three countries could coordinate via SARCOP, which will streamline coordination during future responses.

“Participating in these exercises has been invaluable for our teams,” said Lt. j.g. Gonzalo Hernandez of the Peruvian Naval Infantry. “We have not only improved our technical skills but also strengthened our ability to work alongside our international partners. The use of the SARCOP app has significantly enhanced our coordination capabilities, which will enhance our collective response to natural disasters.”

“Working with the U.S. Coast Guard and Peruvian Navy is really good for us, we can learn a lot of their techniques and share how we work in Mexico,” said Seaman Lizeth Magaña, Mexican Navy USAR team member. “We are so grateful for this partnership opportunity in RIMPAC.”

The Novato, Calif.-based U.S. Coast Guard Pacific Strike Team provides an expert deployable force for search and rescue operations, pollution and hazardous material spills, and recovering from weapons of mass destruction.

Historically, the Strike Team has conducted search and rescue missions following major disasters such as Hurricane Harvey, Katrina, and most recently Hurricane Ian. The Coast Guard has enhanced its disaster response capabilities in the past decade by incorporating flood response abilities into Catastrophic Incident Search and Rescue. This modernization effort involved strategically placing Mobile Response Kits across the US and formalizing training programs for all CISAR teams. This training is jointly led by the USCG and US-based USAR teams.

“We are honored to have participated in such a comprehensive exercise,” said Hernandez. “The shared experiences and knowledge gained here are invaluable, and we look forward to applying these lessons to improve our disaster response capabilities.”

To support people affected by different natural or man-made disasters, the principal mission of the Mexican Navy USAR Team is to carry out operations of search, location, access and stabilization of rescued people. They also perform body recovery.

Twenty-nine nations, 40 surface ships, three submarines, 14 national land forces, more than 150 aircraft and 25,000 personnel are participating in RIMPAC in and around the Hawaiian Islands, June 27 to Aug. 1. The world’s largest international maritime exercise, RIMPAC provides a unique training opportunity while fostering and sustaining cooperative relationships among participants critical to ensuring the safety of sea lanes and security on the world’s oceans. RIMPAC 2024 is the 29th exercise in the series that began in 1971.