Month: August 2024

Source: United States Department of Justice Criminal Division

Remarks as Delivered

Thanks Josh. Thanks for the very overly generous introduction. I appreciate it.

I am very glad to be back in Idaho. I am particularly glad to be here with the Solicitor General of the United States, Idaho’s own, Elizabeth Prelogar. I have known Elizabeth for a very long time, since I was a judge and she was my law clerk. I’m very fortunate in that respect, and now the United States is very fortunate to have her representing the American people in the Supreme Court analyzing the most difficult issues before the country. She is one of the most exceptional legal minds in this country, and I think all of us should be grateful to have her representing us.

In just a few minutes, I’m going to have a chance to talk to the law enforcement partners gathered around this table. This group represents the law enforcement agencies whose members, every single day, risk their lives to protect the people of this state. And equally important, they represent the collaborative partnership that is at the heart of the Justice Department’s own strategy for dealing with violent crime.

When I became Attorney General three and a half years ago, I knew that the most powerful tool we would have in fighting violent crime all across the country was our partnerships with state, local, and federal law enforcement agencies. That was my experience when I was a young prosecutor in the early 1990s fighting violent crime and drug trafficking. That was my experience later in the 90s when I was a supervisor and manager strategizing about the best methods and fighting violent crime across the country during a particularly difficult period with respect to violent crime in the 1990s.

So, when I came in, we built an anti-violent crime strategy based on collaboration, strengthening collaboration between all the federal law enforcement agencies and our relationships with the state and local law enforcement agencies.

And then we fortified those partnerships by bringing to bear the new technological tools that allow us to identify and focus on those actors most responsible for committing violent crimes and taking them off of our streets.

We are now beginning to see some of the results. According to a recent report released by the Idaho State Police, murders in this state declined by 15% in 2023 compared to 2022.

And that is consistent with what we have seen nationally, where last year we saw one of the lowest violent crime rates in 50 years and the largest decline in homicides in 50 years.

But I know that progress is not even, and in many communities, it’s still not been reached. And in any event, there is no acceptable level of violent crime.

The Justice Department is working in Idaho and across the country to arrest violent felons, to seize and trace guns used in violent crime, to disrupt violent drug trafficking, and to prosecute the individuals and the gangs most responsible for the highest degree of violence.

That includes confronting the fentanyl epidemic. In my view, it’s the deadliest threat from a drug that we have ever faced in this country.

In July, this U.S. Attorney’s Office secured a 10-year sentence for the fifth defendant involved in a drug trafficking conspiracy to distribute over 7,000 fentanyl pills in the Magic Valley.

In June, this office secured a 7-year sentence for a defendant who sold lethal fentanyl pills to his coworker. The victim ingested the drugs and died as a result.

And earlier this spring, this office — together with the FBI, the Idaho State Police, and other partners — investigated and successfully prosecuted two traffickers responsible for distributing methamphetamine and fentanyl in East Idaho.

The U.S. Attorney’s Office also participates in the Justice Department’s Project Safe Neighborhoods program, which brings together all levels of law enforcement to reduce violent crime and gun violence.

Earlier this Spring, as part of that program, this office secured an 87-month sentence for a convicted domestic abuser who unlawfully possessed five firearms, including an untraceable ghost gun.

In a separate case — conducted in partnership with the ATF, the U.S. Postal Service, and Postal Inspection Service, and the Twin Falls Police Department — this office secured a 7-year sentence against a man who unlawfully trafficked in firearms.

Among the weapons seized was a loaded Glock pistol installed with an illegal machine gun conversion device, which we call a Glock switch. A Glock pistol with a switch is capable of firing more than 1,000 rounds per minute, making it highly lethal not only to civilian victims but to law enforcement.

And earlier this year, this office worked with the Justice Department’s National Security Division, the FBI, and a number of local law enforcement agencies to arrest a man on charges of providing material support to the terrorist organization ISIS.

The individual is alleged to have sworn an oath of loyalty … to ISIS and planned to wage a heinous attack in its name on churches in Coeur d’Alene.

Thanks to the collective work of law enforcement, that attack was thwarted. And this office will see to it that that defendant is held accountable.

These examples are just a snapshot of the work that this office is doing every single day on behalf of the people of Idaho to fulfill the Justice Department’s mission to keep our communities safe, to protect civil rights, and to uphold the rule of law.

I am very proud of U.S. Attorney Hurwit and of all the men and women of the U.S. Attorney’s Office for the District of Idaho.

And I am equally proud of the partnerships that they have nurtured with the law enforcement agencies represented around this table, who work every single day to keep the people of Idaho safe.

With that, we will begin our meeting.

Source: United States Department of Justice Criminal Division

Korbein Schultz, a U.S. Army soldier and intelligence analyst, pleaded guilty today to all charges against him in the indictment returned by a federal grand jury in March 2024 charging him with conspiracy to obtain and disclose national defense information, exporting technical data related to defense articles without a license, conspiracy to export defense articles without a license, and bribery of a public official.  

“The defendant abused his access to restricted government systems to sell sensitive military information to a person he knew to be a foreign national,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “By conspiring to transmit national defense information to a person living outside the United States, this defendant callously put our national security at risk to cash in on the trust our military placed in him. Today’s guilty plea is a stark reminder that those who would betray their sworn oath for personal gain will be identified and brought to justice.”  

“This defendant sold national defense information to a foreign actor and conspired to corrupt other members of our military,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “In doing so, he violated his training and his oath as a member of the armed services and he compromised our national security. Today’s guilty plea to all of the charges in the indictment ensures that he will be held fully accountable for his crimes.” 

“The defendant has admitted guilt in a case that should send a strong message to any U.S. service members thinking about betraying their country,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “The U.S. is governed by the rule of law and when persons placed in a position of trust violate that trust, the FBI and our partners will hold them accountable.  Governments like China are aggressively targeting our military personnel and national security information and we will do everything in our power to ensure that information is safeguarded from hostile foreign governments.” 

“This Soldier swore an oath to faithfully discharge his duties, to include protecting national defense information. Not only did he fail in his sworn duty, but he placed personal gain above his duty to our country and disclosed information that could give advantage to a foreign nation, putting his fellow Soldiers in jeopardy,” said Brigadier General Rhett R. Cox, Commanding General of the Army Counterintelligence Command. “Army Counterintelligence Command, with our partners at the FBI, Department of Justice, and the greater intelligence community will ruthlessly pursue those who commit acts such as these. Let this case serve as a warning: if any member of the Army, past or present, is asked for classified or sensitive information, they should report it to the appropriate authorities within 24 hours or be held fully accountable for their inaction.”

According to charging and plea documents, Schultz – an enlisted intelligence analyst in the U.S. Army who held a Top Secret/Sensitive Compartmented Information (TS/SCI) security clearance – conspired with an individual who lived in Hong Kong and whom Schultz suspected of being associated with the Chinese Government (Conspirator A) to collect national defense information, including classified information and export-controlled technical data related to U.S. military weapons systems, and to transmit that information to Conspirator A in exchange for money. Schultz entered into this conspiracy even though, as part of his official duties in the Army, he was required (1) to protect national defense information, classified information, and controlled unclassified information (CUI); (2) to train other members of his unit on the proper handling, storage and dissemination of classified information and information marked CUI; and (3) to report suspicious incidents, including attempts by anyone without authorization to receive classified or sensitive information about U.S. military operations, organizations, equipment, or personnel.

During the conspiracy, Conspirator A told Schultz the specific information that Conspirator A wanted Schultz to gather and send to him, including sensitive information related to missile defense and mobile artillery systems. Before he was arrested, Schultz sent Conspirator A dozens of sensitive and restricted (but unclassified) U.S. military documents regarding a variety of U.S. military weapons systems and U.S. military tactics and strategy, including documents containing export-controlled technical data. Among the items that Schultz collected and transmitted to Conspirator A were: (1) a document discussing the lessons learned by the U.S. Army from the Ukraine/Russia war that it would apply in a defense of Taiwan; (2) an operations order outlining the deployment of  the defendant’s unit to Eastern Europe in support of NATO operations; (3) an Air Force Tactics, Techniques and Procedures (AFTTP) document relating to the HH-60 helicopter, which included a banner warning that the document contained technical data subject to export controls; (4) an AFTTP manual relating to the F-22A fighter aircraft, which included a banner warning that the document contained technical data subject to export controls; (5) an AFTTP manual relating to the operation of Intercontinental Ballistic Missile systems, which included a banner warning that the document contained technical data subject to export controls; (6) a publication related to the U-2 reconnaissance aircraft; (7) a document describing modifications of the B-52 aircraft; (8) documents describing tactics to counter unmanned aircraft systems and the use of unmanned aircraft systems in large-scale combat operations; (9) documents relating to Chinese military tactics, the Chinese military’s preparedness, and the People’s Liberation Army Rocket Force; (10) documents relating to rocket, missile, and artillery weapons systems, including the High Mobility Artillery Rocket System and the Terminal High Altitude Area Defense missile defense system; (11) documents relating to military exercises and U.S. military forces in the Republic of Korea and the Philippines; and (12) a document relating to U.S. military satellites. In exchange for all of this information, Schultz was paid approximately $42,000 by Conspirator A.

A sentencing hearing is scheduled for Jan. 23, 2025. Schultz faces a maximum penalty of 10 years in prison for conspiracy to obtain and transmit national defense information; 20 years in prison for exporting technical data related to defense articles to the People’s Republic of China without a license; 20 years in prison for conspiracy to violate the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR); and 15 years in prison for bribery of a public official. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI and U.S. Army Counterintelligence Command are investigating the case.

Assistant U.S. Attorney Josh Kurtzman for the Middle District of Tennessee and Trial Attorneys Adam Barry and Christopher Cook of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

Source: United States Department of Justice Criminal Division

A Florida man pleaded guilty today to evading nearly $2.4 million in taxes on income he earned from his business. 

According to court documents and statements made in court, Roger Whitman, 76, manufactured and sold medical equipment. Between 2002 and 2018, Whitman generated millions of dollars in gross receipts from the sale of such equipment.  

Whitman has not filed an individual income tax return or made any tax payments since 2000. In 2012, the IRS assessed nearly $800,0000 in taxes against Whitman for tax years 2002 through 2009. In response, to conceal his income and assets, Whitman formed a trust with his girlfriend serving as the trustee. Whitman caused his girlfriend to open two bank accounts in the trust’s name, over which Whitman’s girlfriend had sole signatory authority. Thereafter, Whitman directed his income from the business into the trust’s bank accounts and used the funds from these accounts to pay personal expenses. In approximately July 2019, to further thwart IRS collection efforts, Whitman formed a new entity to operate his business.

Through his actions, Whitman caused a tax loss to the IRS of more than $2.4 million.

Whitman is scheduled to be sentenced on Nov. 13. He faces a maximum penalty of five years in prison, as well as supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Melissa Siskind and Andres Chinchilla of the Tax Division are prosecuting the case, with assistance and support from the U.S. Attorney’s Office for the Middle District of Florida.

Source: United States Department of Justice Criminal Division

The Justice Department’s U.S. Trustee Program (USTP) recently obtained a judgment of nearly $105,000 and a permanent injunction against bankruptcy petition preparers whose unfair and deceptive conduct caused a consumer to lose his home of over 20 years to foreclosure.

On July 2, the Bankruptcy Court for the Southern District of Texas entered a stipulated judgment against CA Enterprises, doing business as Premier Services and Premier Legal Services, and the company’s chief executive, Jescar Denno. Under the stipulated judgment, Premier and Denno paid the debtor almost $95,000 – including $84,032 in actual damages, $6,800 in statutory damages and $3,400 in returned fees – and paid the U.S. Trustee statutory fines of $10,500. Premier and Denno also consented to a permanent injunction in the district prohibiting them from, among other things, acting as bankruptcy petition preparers, soliciting and advertising bankruptcy assistance and providing legal advice.

The debtor paid $3,400 for assistance with a loan modification to save his home from foreclosure. After preparing a skeletal chapter 13 petition for the debtor to file, Premier and Denno provided no meaningful services to the debtor. The bankruptcy case was dismissed with a bar against refiling without court permission, and the debtor lost his home – along with substantial equity – in a foreclosure sale.

“This case is an example of the devastation that dishonest bankruptcy petition preparers can wreak on the lives of consumers afraid of losing their homes to foreclosure,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “The debtor can’t get his home back, but the stipulated judgment is a significant step toward making him whole again.”

The USTP’s San Antonio office filed a complaint alleging multiple violations of the Bankruptcy Code. Premier and Denno initially denied liability, but after discovery conducted by the San Antonio office, they agreed to the entry of a stipulated judgment on all 11 counts alleged in the complaint. Premier has also been barred from providing bankruptcy petition preparer services in at least three other jurisdictions: the District of Kansas, Eastern District of Pennsylvania and District of Maryland. (The USTP issued a press release about the Maryland matter in April 2024.)

The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.