Month: August 2024

Source: United States Department of Justice Criminal Division

Remarks as Prepared for Delivery

Thank you, Alex, for that generous introduction. And for your leadership.

Earlier today, Department of the Interior Secretary Haaland and I visited the headquarters of the Unit in the Interior Department’s Bureau of Indian Affairs that is dedicated to combating the crisis of Missing or Murdered Indigenous Persons. We were briefed by experts from the Unit and prosecutors from this office who work every day to make Indian Country safer. And we all underscored our commitment to ending these tragedies and helping Tribal communities heal.

Then we met with Tribal Leaders from the Eight Northern Pueblos of New Mexico to learn about what each Tribe is experiencing in its community. Since 2021, the Justice Department has provided $12.9 million to support a number of Tribal justice initiatives across the Northern Pueblos. We are committed to working with our partners to ensure that all members of Tribal communities feel safe.

Now, I am grateful to be able to meet with the federal, state, local, and Tribal law enforcement partners gathered around this table.

This group of leaders represent the law enforcement officers across the state who make daily sacrifices to protect the people of New Mexico. This also represents the collaborative approach that is at the heart of the Justice Department’s strategy to combat violent crime.

When I became Attorney General three and a half years ago, I knew that the most powerful tool we would have to address violent crime would be our partnerships. That was my experience as a line attorney prosecuting violent crime and narcotics trafficking in the early 1990s, and as a Justice Department official organizing and supervising those efforts later in the 1990s.

So, we built an anti-violent crime strategy rooted in strengthening our collaboration across federal law enforcement; with state, local, and Tribal law enforcement; with partner agencies like Albuquerque Community Safety; and with the communities we all serve.

And we fortified those partnerships by bringing to bear the latest technologies for identifying and prosecuting the criminals who represent the greatest danger to our communities.

Now we have seen results. According to the Albuquerque Police Department, there was about a 19% decrease in homicides and a 41% decrease in robberies in 2023 compared to 2022.

This is consistent with what we have seen nationally, where last year, we saw one of the lowest violent crime rates in 50 years nationwide. That included the largest drop in homicides in 50 years.

But we know that progress in Albuquerque and many communities is still uneven. And of course, there is no acceptable level of violent crime.

The Justice Department is working here in New Mexico and across the country to arrest violent felons, disrupt violent drug trafficking, and prosecute the individuals responsible for the greatest violence.

Last month — working with the Albuquerque Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and FBI — this U.S. Attorney’s Office successfully prosecuted a felon who unlawfully possessed a firearm and shot a woman in the back of the head at a Walmart. She survived, but she required emergency surgery and extensive rehabilitation. Thanks to the work of this office and its partners, the defendant was sentenced to 15 years in federal prison.

Also last month, this office secured a six-year sentence for a man who illegally possessed firearms and used them to threaten his wife.

The defendant in that case was under a court protection order that prohibited him from harassing, stalking, or threatening his wife. Despite that, he went to the family residence, stockpiled an arsenal of weapons, and held his wife in the garage against her will. Their son overheard and called 911. And after hours of negotiations, law enforcement arrested the defendant.

The man’s conduct violated a federal statute that prohibits firearm possession by those who, like the defendant, are under court protection orders that prohibit them from harassing or threatening intimate partners. That is the same statute the Department successfully defended before the Supreme Court just a few months ago.

This case underscores why that statute is so important to the Department’s work to combat domestic violence in New Mexico and across the country.

We will continue to combat violent crime and firearms offenses that endanger our communities.

Now, at the same time, we are working relentlessly to get fentanyl — which is the deadliest drug threat this country has ever faced — out of our communities.

Last year, this U.S. Attorney’s Office participated in a joint enforcement operation in Carlsbad that resulted in eight drug trafficking indictments. In April, three of those defendants pled guilty for their roles in the conspiracies to distribute significant volumes of fentanyl, methamphetamine, and cocaine.

That same month — working with the Bureau of Indian Affairs, Homeland Security Investigations, Immigrations and Customs Enforcement, and New Mexico State Police — this office secured a 14-year sentence for a man who was caught with more than 19 pounds of fentanyl in his hotel room.

And back in March, the office secured a guilty plea from a man who intended to distribute more than 32,000 fentanyl pills and 1.7 kilograms of methamphetamine. Investigators found that he had used a social media platform to advertise and sell his drugs.

There are too many families in New Mexico and across the country who have suffered, whose lives have been shattered by fentanyl poisoning. That is why we will never give up on fighting this terrible epidemic.

The examples I have shared with you are just a snapshot of the work this office does every day 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 the work of the U.S. Attorney and of all the men and women of this office in the District of New Mexico. And I am equally proud of the partnerships they have nurtured with the federal, state, and local law enforcement agencies represented in this room. These people work every single day to keep the communities in New Mexico safe.

And with that, we will begin our discussion.

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it has secured an agreement with the North Carolina Department of Adult Correction (NCDAC) expanding opportunities for group religious practice throughout the state prison system and allowing access to kosher-for-Passover meals and Seders. The agreement resolves the Justice Department’s investigation of NCDAC pursuant to the Religious Land Use and Institutionalized Persons Act (RLUIPA).  

“The Constitution and federal law guarantee all Americans the freedom to practice their religion, including people who are incarcerated in jails and prisons,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement will protect the religious practices of incarcerated people across North Carolina by allowing members of minority faiths to gather, worship and study. Whether at home with their families, in houses of worship, or behind bars, every person should be able to celebrate religious holidays and gather with their communities of faith.”

“Federal law guarantees all Americans the right to freely exercise their religion, and institutionalized persons have the right to practice their faith and worship together,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “We are committed to protecting this fundamental right and are grateful to the North Carolina Department of Adult Correction for its willingness to work with us and revise its policies to protect the religious rights of individuals in its custody.”

“The settlement agreement reaffirms that all individuals in custody retain the right to practice their religion fully and openly during their incarceration,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “It is our duty to ensure that incarcerated persons are afforded the same religious rights, freedoms and protections as any other citizen. My office is committed to enforcing these rights and ensuring that they are upheld within all correctional facilities in North Carolina.”

“Our Constitution protects the religious liberty of all people to exercise their faith,” said U.S. Attorney Michael Easley for the Eastern District of North Carolina. “In America, that means even those who are incarcerated can continue to worship and pray. NCDAC’s new policies ensure that believers can maintain their faith and religious practices, even after they enter the jailhouse door.”

Under the agreement, NCDAC has adopted a policy that reduces the minimum number of people for group worship to two and no longer requires the presence of a faith helper for religious gathering. Under the prior policy, NCDAC had minimum participant and faith helper requirements for congregate religious practices by “minority faith groups” that often prevented these groups from gathering for worship, celebration and study. Minority faith groups were defined as non-Christian faiths, including adherents of Islam or Judaism.

In addition, when the department began the investigation, NCDAC did not provide certified kosher-for-Passover food to incarcerated people who wished to observe the Passover holiday. The agreement requires that NCDAC provide certified kosher-for-Passover meals every year for the eight days of Passover. In addition, NCDAC will provide the opportunity for people who observe Passover to participate in two Seder ritual observances, which will include a Seder plate of ceremonial foods. 

For additional information about the Civil Rights Division and the Special Litigation Section please visit www.justice.gov/crt/special-litigation-section. The Justice Department issued a report on the 20th Anniversary of RLUIPA in 2020 and a statement and on the Institutionalized Persons Provisions of RLUIPA in 2017. Those interested in finding out more about RLUIPA can visit www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act-0.

Source: United States Department of Justice Criminal Division

Bulgarian national Milan Dimitrov, 50, made his initial appearance in a federal court in San Antonio today after being extradited from Greece.

According to court documents, Milan Dimitrov allegedly conspired with Ilias Sabirov, 52, of Russia, and Dimitar Dimitrov, 74, of Bulgaria, to violate the International Emergency Economic Powers Act (IEEPA) and the Export Control Reform Act (ECRA) in a scheme to procure sensitive radiation-hardened integrated circuits from the United States and illegally export those components to Russia through Bulgaria without the required licenses from the U.S. government.

The indictment alleges that between at least May 2014 and May 2018 the defendants used the Bulgarian company Multi Technology Integration Group EEOD (MTIG) to receive export-controlled items from the United States and transship them to Russia without the required licenses.

According to the indictment, Sabirov is the head of two Russian companies — Cosmos Complect and OOO Sovtest Comp. — and controls MTIG. Both Dimitar and Milan Dimitrov worked for Sabirov at Cosmos Complect and MTIG.

As alleged, in 2014, the defendants met with the supplier of the radiation-hardened circuits in Austin, Texas, and were informed that radiation-hardened circuits could not be shipped to Russia because of U.S. trade restrictions. Sabirov then established MTIG in Bulgaria to purchase the controlled electronic circuits, which did not require a license for export to Bulgaria. The radiation-hardened properties of these circuits made them resistant to damage or malfunction in the harsh outer-space environment. The circuits were controlled for export to Russia for these very reasons. The parts were shipped to Bulgaria in 2015, and MTIG soon thereafter transshipped them to Sabirov’s companies in Russia. OOO Sovtest Comp. transferred over $1 million to MTIG for the parts.

In the same timeframe, MTIG — at Sabirov’s direction — ordered over $1.7 million in other electronic components produced by another U.S.-based electronics manufacturer. MTIG bought these parts to fulfill part of its contract with OOO Sovtest Comp. Again, the parts were shipped from the United States to Bulgaria, where they were merely repackaged and then shipped to Russia.

In late 2018, a Department of Commerce Export Control Officer interviewed Milan Dimitrov during a visit to MTIG to determine whether the radiation-hardened components were still in MTIG’s possession in Bulgaria. Milan Dimitrov, among other things, falsely denied sending the components to Russia.

Milan Dimitrov is charged with two counts of IEEPA violations, one count of money laundering, and one count of making false statements to the Department of Commerce in violation of ECRA. Each count in the indictment carries up to 20 years in federal prison.

Sabirov and Dimitar Dimitrov currently remain at large. The two were charged in the same indictment in December 2020 with two counts of IEEPA violations and one count of money laundering.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The Commerce Department’s Office of Export Enforcement and the FBI are investigating the case with assistance from Defense Criminal Investigative Service (DCIS).

Assistant U.S. Attorneys Michael C. Galdo and G. Karthik Srinivasan are prosecuting the case along with Trial Attorney Christine Bonomo of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs provided valuable assistance.

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

Source: United States Department of Justice Criminal Division

WASHINGTON – A Belarussian and Ukrainian dual-national charged in both the District of New Jersey and Eastern District of Virginia with leading international computer hacking and wire fraud schemes made his initial appearance in Newark, New Jersey, today after being extradited from Poland.

As alleged in court documents unsealed today, Maksim Silnikau, also known as Maksym Silnikov, 38, led two multiyear cybercrime schemes. At different points, Silnikau has been associated with the online monikers “J.P. Morgan,” “xxx,” and “lansky,” among others.

In the District of New Jersey, Silnikau, along with alleged co-conspirators Volodymyr Kadariya, a Belarussian and Ukrainian national, 38, and Andrei Tarasov, a Russian national, 33, are charged with cybercrime offenses associated with a scheme to transmit the Angler Exploit Kit, other malware, and online scams to the computers of millions of unsuspecting victim internet users through online advertisements — so-called “malvertising” — and other means from October 2013 through March 2022. In the Eastern District of Virginia, Silnikau is charged for his role as the creator and administrator of the Ransom Cartel ransomware strain and associated ransomware operations beginning in May 2021.

“Today, the Justice Department takes another step forward in disrupting ransomware actors and malicious cybercriminals who prey on victims in the U.S. and around the world,” said Deputy Attorney General Lisa Monaco. “As alleged, for over a decade, the defendant used a host of online disguises and a network of fraudulent ad campaigns to spread ransomware and scam U.S. businesses and consumers. Now, thanks to the hard work of federal agents and prosecutors, along with Polish law enforcement colleagues, Maksim Silnikau must answer these grave charges in an American courtroom.” 

“Silnikau and his co-conspirators allegedly used malware and various online scams to target millions of unsuspecting internet users in the United States and around the world,” said FBI Deputy Director Paul Abbate. “They hid behind online aliases and engaged in complex, far-reaching cyber fraud schemes to compromise victim devices and steal sensitive personal information. The FBI will continue to work with partners to aggressively impose costs on cybercriminals and hold them accountable for their actions.”

“As alleged in the indictment, Silnikau and his co-conspirators distributed online advertisements to millions of internet users for the purpose of delivering malicious content,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “These ads appeared legitimate but were actually designed to deliver malware that would compromise users’ devices or to deliver ‘scareware’ designed to trick users into providing their sensitive personal information. Silnikau’s arrest and extradition demonstrate that, working with its domestic and international partners, the Criminal Division is committed to bringing cybercriminals who target U.S. victims to justice, no matter where they are located.”

“These conspirators are alleged to have operated a multiyear scheme to distribute malware onto the computers of millions of unsuspecting internet users around the globe,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “To carry out the scheme, they used malicious advertising, or ‘malvertising’, to trick victims into clicking on legitimate-seeming internet ads. Instead, the victims would be redirected to malicious internet sites that delivered malware to their devices, giving the conspirators access to the victims’ personal information. The conspirators then sold that access and information to other cybercriminals on the dark net. Throughout the scheme, the conspirators attempted to hide their identities from law enforcement, including by using fraudulent aliases and online personas.”

“This case reemphasizes the importance of both cybersecurity and our crucial law enforcement partnerships worldwide,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Online threats emerge within the digital ecosystem among those who exploit the very tools that help us connect and collaborate. In turn, we must maximize our investigative collaborations globally to address those threats. This investigation demonstrates the positive results of leveraging international partnerships to combat international crimes.”

“This arrest underscores a long-term investigation by the U.S. Secret Service, in coordination with foreign, domestic and private partners, of cybercrime organizations that allegedly distributed the notorious Angler Exploit Kit, conducted malvertising, and operated the Ransom Cartel ransomware organization,” said Assistant Director of Investigations Brian Lambert of the U.S. Secret Service. “Cybercriminals should know that even if they attempt to hide their criminal conduct behind the anonymity of the internet that eventually, through the dedication of international law enforcement professionals, they will be apprehended and held accountable for their actions.”

“The FBI will continue to work alongside our partners both overseas and in the states to identify and dismantle cyber threats, and to pursue those criminals who attempt to target and defraud victims in the United States,” said Special Agent in Charge Stephen Cyrus of the FBI Kansas City Field Office.

District of New Jersey Indictment

According to the indictment unsealed in the District of New Jersey, from October 2013 through March 2022, Silnikau, Kadariya, Tarasov, and others in Ukraine and elsewhere used malvertising and other means to deliver malware, scareware, and online scams to millions of unsuspecting Internet users in the United States and elsewhere. The malvertising campaigns were designed to appear legitimate, but often redirected victim Internet users who viewed or accessed the advertisements to malicious sites and servers that sought to defraud the users or delivered malware to the users’ devices. The conspirators’ scheme caused unsuspecting Internet users to be forcibly redirected to malicious content on millions of occasions, and defrauded and attempted to defraud various U.S.-based companies involved in the sale and distribution of legitimate online advertisements.

One strain of malware that Silnikau and others allegedly took a leading role in disseminating was the Angler Exploit Kit, which targeted web-based vulnerabilities in Internet browsers and associated plug-ins. At times during the scheme, the Angler Exploit Kit was a leading vehicle through which cybercriminals delivered malware onto compromised electronic devices. The conspirators also allegedly enabled the delivery of “scareware” ads that displayed false messages claiming to have identified a virus or other issue with a victim Internet user’s device. The messages then attempted to deceive the victim into buying or downloading dangerous software, providing remote access to the device, or disclosing personal identifying or financial information.

For years, the conspirators tricked advertising companies into delivering their malvertising campaigns by using dozens of online personas and fictitious entities to pose as legitimate advertising companies. They also developed and used sophisticated technologies and computer code to refine their malvertisements, malware, and computer infrastructure so as to conceal the malicious nature of their advertising.  

As alleged, Silnikau, Kadariya, Tarasov, and conspirators used multiple strategies to profit from their widespread hacking and wire fraud scheme, including by using accounts on predominantly Russian cybercrime forums to sell to cybercriminals access to the compromised devices of victim Internet users (so-called “loads” or “bots”), as well as information stolen from victims and recorded in “logs,” such as banking information and login credentials, to enable further efforts to defraud the victim Internet users or deliver additional malware to their devices.

Eastern District of Virginia Indictment

According to the indictment unsealed in the Eastern District of Virginia, Silnikau was the creator and administrator of the Ransom Cartel ransomware strain, created in 2021. Silnikau allegedly had been a member of Russian-speaking cybercrime forums since at least 2005 and was a member of the notorious cybercrime website Direct Connection from 2011 to 2016, when the site was shuttered after the arrest of its administrator.

Beginning in May 2021, Silnikau allegedly developed a ransomware operation and began recruiting participants from cybercrime forums. On various occasions, Silnikau allegedly distributed information and tools to Ransom Cartel participants, including information about compromised computers, such as stolen credentials, and tools such as those designed to encrypt or “lock” compromised computers. Silnikau also allegedly established and maintained a hidden website where he and his co-conspirators could monitor and control ransomware attacks; communicate with each other; communicate with victims, including sending and negotiating payment demands; and manage distribution of funds between co-conspirators.

On Nov. 16, 2021, Silnikau allegedly executed a ransomware attack on a company based in New York, and on March 5, 2022, Ransom Cartel ransomware was deployed against a company based in California. The hackers removed confidential data without authorization and demanded a monetary payment to refrain from releasing the victim’s data.

In the District of New Jersey, Silnikau, Kadariya, and Tarasov are charged with conspiracy to commit wire fraud, conspiracy to commit computer fraud, and two counts of substantive wire fraud. If convicted, Silnikau, Kadariya, and Tarasov face maximum penalties of 27 years in prison for wire fraud conspiracy, 10 years in prison for computer fraud conspiracy, counts, and 20 years in prison on each wire fraud count.

In the Eastern District of Virginia, Silnikau is charged with conspiracy to commit computer fraud and abuse, conspiracy to commit wire fraud, conspiracy to commit access device fraud, and two counts each of wire fraud and aggravated identity theft. He faces a mandatory minimum of two years in prison and a maximum penalty of 20 years in prison.

The U.S. Secret Service and FBI Kansas City Field Office are investigating the case in the District of New Jersey, and the U.S. Secret Service is investigating the case in the Eastern District of Virginia. The Department also appreciates the extensive cooperation and coordination by the United Kingdom’s National Crime Agency and Crown Prosecution Service over the course of several years, as well as significant support provided by the Security Service of Ukraine Cyber Department and Prosecutor General’s Office; Guardia Civil of Spain, Spanish Ministry of Justice, and the Public Prosecutor’s Office at the Audiencia Nacional; Policia Judiciaria of Portugal; Germany—Bundeskriminalamt (BKA) and Landeskriminalamt (LKA) Berlin; and Polish authorities, in particular assistance provided by Poland’s Central Cybercrime Bureau, Border Guard, Ministry of Justice, and National Prosecutors Office.

Senior Counsel Aarash A. Haghighat, Cyber Operations International Liaison Louisa K. Becker, and Trial Attorney Christen Gallagher of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Samantha Fasanello, Chief of the Narcotics/OCDETF Unit, for the District of New Jersey are prosecuting Silnikau and his co-defendants in the District of New Jersey. Assistant U.S. Attorneys Andrew M. Trombly, Chief of the General Crimes Unit, for New Jersey, and Christopher Oakley for the District of Kansas also provided substantial assistance to the New Jersey case. Assistant U.S. Attorneys Jonathan Keim and Zoe Bedell are prosecuting the case in the Eastern District of Virginia.

The Justice Department’s Office of International Affairs also provided substantial assistance in the extradition of Silnikau and collection of evidence.

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

View the District of New Jersey indictment here.

View the Eastern District of Virginia indictment here.

Source: United States Department of Justice 2

Bulgarian national Milan Dimitrov, 50, made his initial appearance in a federal court in San Antonio today after being extradited from Greece.

According to court documents, Milan Dimitrov allegedly conspired with Ilias Sabirov, 52, of Russia, and Dimitar Dimitrov, 74, of Bulgaria, to violate the International Emergency Economic Powers Act (IEEPA) and the Export Control Reform Act (ECRA) in a scheme to procure sensitive radiation-hardened integrated circuits from the United States and illegally export those components to Russia through Bulgaria without the required licenses from the U.S. government.

The indictment alleges that between at least May 2014 and May 2018 the defendants used the Bulgarian company Multi Technology Integration Group EEOD (MTIG) to receive export-controlled items from the United States and transship them to Russia without the required licenses.

According to the indictment, Sabirov is the head of two Russian companies — Cosmos Complect and OOO Sovtest Comp. — and controls MTIG. Both Dimitar and Milan Dimitrov worked for Sabirov at Cosmos Complect and MTIG.

As alleged, in 2014, the defendants met with the supplier of the radiation-hardened circuits in Austin, Texas, and were informed that radiation-hardened circuits could not be shipped to Russia because of U.S. trade restrictions. Sabirov then established MTIG in Bulgaria to purchase the controlled electronic circuits, which did not require a license for export to Bulgaria. The radiation-hardened properties of these circuits made them resistant to damage or malfunction in the harsh outer-space environment. The circuits were controlled for export to Russia for these very reasons. The parts were shipped to Bulgaria in 2015, and MTIG soon thereafter transshipped them to Sabirov’s companies in Russia. OOO Sovtest Comp. transferred over $1 million to MTIG for the parts.

In the same timeframe, MTIG — at Sabirov’s direction — ordered over $1.7 million in other electronic components produced by another U.S.-based electronics manufacturer. MTIG bought these parts to fulfill part of its contract with OOO Sovtest Comp. Again, the parts were shipped from the United States to Bulgaria, where they were merely repackaged and then shipped to Russia.

In late 2018, a Department of Commerce Export Control Officer interviewed Milan Dimitrov during a visit to MTIG to determine whether the radiation-hardened components were still in MTIG’s possession in Bulgaria. Milan Dimitrov, among other things, falsely denied sending the components to Russia.

Milan Dimitrov is charged with two counts of IEEPA violations, one count of money laundering, and one count of making false statements to the Department of Commerce in violation of ECRA. Each count in the indictment carries up to 20 years in federal prison.

Sabirov and Dimitar Dimitrov currently remain at large. The two were charged in the same indictment in December 2020 with two counts of IEEPA violations and one count of money laundering.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

The Commerce Department’s Office of Export Enforcement and the FBI are investigating the case with assistance from Defense Criminal Investigative Service (DCIS).

Assistant U.S. Attorneys Michael C. Galdo and G. Karthik Srinivasan are prosecuting the case along with Trial Attorney Christine Bonomo of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs provided valuable assistance.

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