Month: September 2024

Source: United States Department of Justice Criminal Division

Remarks as Prepared for Delivery

Thank you, Attorney General Garland, Deputy Attorney General Monaco, and Director Wray for your commitment to safeguarding our elections. With your leadership and support, the Criminal Division’s Public Integrity Section continues to spearhead the Election Threats Task Force.  There is no mission more critical to the Criminal Division than deterring, disrupting, and punishing criminal threats to our elections.   

Since we last met with department leadership in May, the Task Force has filed charges or secured convictions against defendants in Arizona, Colorado, Kentucky, and Michigan and opened new investigations across the country.

The Task Force is also preparing for election day. Our attorneys are meeting with election officials around the country and recently hosted a training for FBI and Justice Department personnel nationwide, to address threats of violence to the election community and other criminal threats to our elections.

And we are surging additional resources to these efforts. The Public Integrity Section added five attorneys to support its Election Crimes Branch, to ensure a rapid response to reports of election crimes. As we approach election day, we will ensure that the team has all the resources it needs to perform its essential work.

I could not be prouder of the Election Threats Task Force. As we move forward, I am confident that their dedicated efforts will continue to put us in the best position possible to support and protect the election community.

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it has opened an investigation into the conditions of two prison facilities operated by the California Department of Corrections and Rehabilitation (CDCR): Central California Women’s Facility in Chowchilla and the California Institution for Women in Chino.

Based on an extensive review of publicly available information and information gathered from stakeholders, the department has found significant justification to open this investigation. The investigation will evaluate whether CDCR protects people incarcerated at Central California Women’s Facility and the California Institution for Women from sexual abuse by correctional staff.

“No woman incarcerated in a jail or prison should be subjected to sexual abuse by prison staff who are constitutionally bound to protect them,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Every woman, including those in prison, retains basic civil and constitutional rights and should be treated with dignity and respect. California must ensure that the people it incarcerates are housed in conditions that protect them from sexual abuse. This investigation will determine whether California is meeting its constitutional obligations.”

“Concern about the physical safety of people inside California women’s prisons is not new,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Media coverage, state audits, advocates’ efforts and private litigation have sought to draw attention to an issue often unseen by many in the community. This investigation responds to those concerns and will aim to ensure that California is meeting its constitutional duty to incarcerated individuals.” 

“Sexual abuse and misconduct will not be tolerated in prisons,” U.S. Attorney Martin Estrada for the Central District of California said. “Together, with our colleagues in the Eastern District and the Civil Rights Division, my office will thoroughly investigate the conditions at Central California Women’s Facility and the California Institution for Women to determine whether California is meeting its constitutional obligations to incarcerated persons.”   

• Women have filed hundreds of private lawsuits in the past two years alleging officer sexual abuse of people incarcerated at the Central California Women’s Facility over the last decade, ranging from allegations of inappropriate groping during searches and genital rubbing to forcible rape.
• This week in state court, a trial is scheduled to begin involving allegations that a former correctional officer at the Central California Women’s Facility engaged in widespread sexual assaults. Of course, these are allegations and the state process will proceed. 
• A civil lawsuit was filed on behalf of 21 women incarcerated at the California Institution for Women and included allegations of forcible rape and penetration, groping, oral copulation, as well as threats of violence and punishment with abusive conduct ranging from 2014 to 2020.
• Correctional staff at both facilities reportedly sought sexual favors in return for contraband and privileges.
• The correctional officers named in these allegations range in rank and have included the very people responsible for handling complaints of sexual abuse made by women incarcerated at these facilities.
• In March, a working group established by the State and composed of advocacy groups and community-based organizations published a report to the California Legislature that identified longstanding cultural deficiencies in addressing staff sexual abuse, including an unsafe and inaccessible reporting process and the absence of staff accountability.

Justice Department officials have informed California state officials of the investigation. The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act. This statute gives the department the authority to investigate systemic violations of the rights of individuals in institutional settings, including prisons.  

The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorneys’ Offices for the Eastern and Central Districts of California. Individuals with relevant information are encouraged to contact the department via phone at 1-888-392-9490  or by email at Community.CAWomensPrisons@usdoj.gov.  

Additional information about the Civil Rights Division’s work regarding correctional facilities is available on its website at www.justice.gov/crt/rights-persons-confined-jails-and-prisons.

Source: United States Department of Justice Criminal Division

Note: View the indictment here. 

An indictment charging Russian nationals Kostiantyn Kalashnikov, 31, also known as Kostya, and Elena Afanasyeva, 27, also known as Lena, with conspiracy to violate the Foreign Agents Registration Act (FARA) and conspiracy to commit money laundering was unsealed today in the Southern District of New York. Kalashnikov and Afanasyeva are at large. 

“The Justice Department has charged two employees of RT, a Russian state-controlled media outlet, in a $10 million scheme to create and distribute content to U.S. audiences with hidden Russian government messaging,” said Attorney General Merrick B. Garland. “The Justice Department will not tolerate attempts by an authoritarian regime to exploit our country’s free exchange of ideas in order to covertly further its own propaganda efforts, and our investigation into this matter remains ongoing.”

“Our approach to combating foreign malign influence is actor-driven, exposing the hidden hand of adversaries pulling strings of influence from behind the curtain,” said Deputy Attorney General Lisa Monaco. “As alleged in today’s indictment, Russian state broadcaster RT and its employees, including the charged defendants, co-opted online commentators by funneling them nearly $10 million to pump pro-Russia propaganda and disinformation across social media to U.S. audiences. The Department will not tolerate foreign efforts to illegally manipulate American public opinion by sowing discord and division.”

“Covert attempts to sow division and trick Americans into unwittingly consuming foreign propaganda represents attacks on our democracy,” said FBI Director Christopher A. Wray. “Today’s actions show that as long as foreign adversaries like Russia keep engaging in hostile influence campaigns, they are going to keep running into the FBI. We will continue to do everything we can to expose the hidden hand of foreign adversaries like Russia and disrupt their efforts to meddle in our free and open society.”

“The Russian government has long sought to sow discord and chaos in the United States through propaganda and foreign malign influence campaigns,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “As alleged, the covert operations by RT employees exploited our free and open press and targeted millions of Americans as unwitting victims of Russia’s psychological warfare.”

“As alleged, the Russian state broadcaster RT orchestrated a massive scheme to influence the American public by secretly planting and financing a content creation company on U.S. soil,” said U.S. Attorney Damian Williams for the Southern District of New York. “The instruments of the scheme were RT employees Kostiantyn Kalashnikov and Elena Afanasyeva, who managed the operation from Moscow using fake personas and shell companies, and the victims of the scheme were the American people, who received Russian messaging without knowing it. As the charges unsealed today demonstrate, this Office will work with our law enforcement partners to unmask and hold accountable all those who conduct malign influence campaigns in the United States, no matter how hard they try to hide their tracks.”

According to the court documents, RT, formerly known as Russia Today, is a state-controlled media outlet funded and directed by the Government of Russia. Over at least the past year, RT and its employees, including Kalashnikov and Afanasyeva, deployed nearly $10 million to covertly finance and direct a Tennessee-based online content creation company (U.S. Company-1). In turn, U.S. Company-1 published English-language videos on multiple social media channels, including TikTok, Instagram, X, and YouTube. Since publicly launching in or about November 2023, U.S. Company-1 has posted nearly 2,000 videos that have garnered more than 16 million views on YouTube alone. Many of the videos posted by U.S. Company-1 contain commentary on events and issues in the U.S., such as immigration, inflation, and other topics related to domestic and foreign policy. While the views expressed in the videos are not uniform, most are directed to the publicly stated goals of the Government of Russia and RT — to amplify domestic divisions in the United States. 

In order to carry out RT’s secret influence campaign in the United States, Kalashnikov and Afanasyeva operated under covert identities at U.S. Company-1. Posing as an outside editor, Kalashnikov edited U.S. Company-1 content, monitored U.S. Company-1’s funding and hiring, and introduced Afanasyeva as a member of his purported editing team. Using the fake personas Helena Shudra and Victoria Pesti, Afanasyeva posted and directed the posting by U.S. Company-1 of hundreds of videos. Afanasyeva also collected information from and gave instructions to U.S. Company-1  staff. For example, after the March 22, 2024, terrorist attack on a music venue in Moscow, Afanasyeva asked one of U.S. Company-1’s founders to blame Ukraine and the United States for the attack, writing: “I think we can focus on the Ukraine/U.S. angle. . . . [T]he mainstream media spread fake news that ISIS claimed responsibility for the attack yet ISIS itself never made such statements. All terrorists are now detained while they were heading to the border with Ukraine which makes it even more suspicious why they would want to go to Ukraine to hide.” 

Between in or about October 2023 and in or about August 2024, RT sent wire transfers to U.S. Company-1 totaling approximately $9.7 million, which represented nearly 90% of U.S. Company-1’s bank deposits from all sources combined. The wires were sent from shell companies in Turkey, the United Arab Emirates, and Mauritius, and were often accompanied by wire notes ascribing the payments to the purchase of electronics. For example, the wire note for a $318,800 wire payment from a shell entity in Turkey to U.S. Company-1 on March 1, read: “BUYING GOODS-INV.013-IPHONE 15 PRO MAX 512GB.” 

U.S. Company-1 never disclosed to its viewers that it was funded and directed by RT. Nor did U.S. Company-1 or its two founders register with the Attorney General as an agent of a foreign principal.

Kalashnikov and Afanasyeva both of Russia, are charged with conspiracy to violate FARA, which carries a maximum sentence of five years in prison, and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case.

Assistant U.S. Attorneys Alexander Li and Juliana Murray for the Southern District of New York and Trial Attorney Brett Reynolds of the Justice Department’s National Security Division Counterintelligence and Export Control Section are prosecuting the case.

An indictment is merely an allegation. 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

The Justice Department and the Federal Trade Commission (FTC) announced today that Verkada Inc. (Verkada), a cloud-based security company headquartered in San Mateo, California, has agreed to a settlement requiring it to pay a $2.95 million civil penalty and implement extensive data security measures. This settlement resolves allegations that Verkada violated the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act and engaged in unfair and deceptive practices in violation of the Federal Trade Commission Act.

In a complaint filed in the U.S. District Court for the Northern District of California, the United States alleges that Verkada failed to implement reasonable security measures such as appropriate access management and data protection controls and adequate encryption of customer data. These failures allegedly exposed sensitive information — including security-camera footage of consumers visiting locations like hospitals and schools — to unauthorized access. The complaint additionally alleges that Verkada misrepresented the extent to which it used appropriate data security safeguards and complied with the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The complaint also alleges that Verkada sent numerous promotional emails that failed to clearly and conspicuously notify recipients of their opportunity to opt out of such messages and failed to include a valid physical postal address, and that Verkada did not honor requests to opt out from its promotional emails within ten business days of receiving those requests, all in violation of the CAN-SPAM Act.

To resolve the lawsuit, the parties agreed to a settlement reflected by the stipulated order issued today by the Court. The stipulated order requires Verkada to pay a $2.95 million civil penalty and to comply with the CAN-SPAM Act, including by honoring requests to opt out of its commercial emails. The stipulated order also prohibits Verkada from misrepresenting its data security practices and requires it to establish a comprehensive information security program and undergo regular third-party assessments of its data security practices.

“This settlement underscores the importance of robust data security measures, especially for companies that are themselves in the security industry. Failure to protect sensitive information puts consumers at risk,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the FTC to hold companies accountable for such violations.”

“When customers invite companies into private spaces to monitor consumers by using their security cameras and other products, they expect those companies to provide basic levels of security, which Verkada failed to do,” said Director Samuel Levin of the FTC’s Bureau of Consumer Protection. “Companies that fail to secure and protect consumer data can expect to be held responsible.”

Trial Attorneys Cameron A. Brown and Amanda K. Kelly, Senior Trial Attorney James T. Nelson and Assistant Director Zachary A. Dietert of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Vivian Wang for the Northern District of California are handling the case, in coordination with staff from the FTC’s Division of Privacy and Identity Protection.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.

Source: United States Department of Justice Criminal Division

Note: View the affidavit here. 

The Justice Department today announced the ongoing seizure of 32 internet domains used in Russian government-directed foreign malign influence campaigns colloquially referred to as “Doppelganger,” in violation of U.S. money laundering and criminal trademark laws. As alleged in an unsealed affidavit, the Russian companies Social Design Agency (SDA), Structura National Technology (Structura), and ANO Dialog, operating under the direction and control of the Russian Presidential Administration, and in particular First Deputy Chief of Staff of the Presidential Executive Office Sergei Vladilenovich Kiriyenko, used these domains, among others, to covertly spread Russian government propaganda with the aim of reducing international support for Ukraine, bolstering pro-Russian policies and interests, and influencing voters in U.S. and foreign elections, including the U.S. 2024 Presidential Election.  

In conjunction with the domain seizures, the U.S. Treasury Department announced the designation of 10 individuals and two entities as part of a coordinated response to Russia’s malign influence efforts targeting the 2024 U.S. presidential election. This announcement follows the designation of actors involved in Doppelganger announced by the Treasury Department in March.

“The Justice Department is seizing 32 internet domains that the Russian government and Russian government-sponsored actors have used to engage in a covert campaign to interfere in and influence the outcome of our country’s elections,” said Attorney General Merrick B. Garland. “As alleged in our court filings, President Vladimir Putin’s inner circle, including Sergei Kiriyenko, directed Russian public relations companies to promote disinformation and state-sponsored narratives as part of a campaign to influence the 2024 U.S. Presidential Election. An internal planning document created by the Kremlin states that a goal of the campaign is to secure Russia’s preferred outcome in the election. The sites we are seizing today were filled with Russian government propaganda that had been created by the Kremlin to reduce international support for Ukraine, bolster pro-Russian policies and interests, and influence voters in the United States and other countries. Our actions today make clear that the Justice Department will be aggressive in countering and disrupting attempts by the Russian government, or any other malign actor, to interfere in our elections and undermine our democracy.”

“The Department’s seizure of 32 internet domains secretly deployed to spread foreign malign influence demonstrates once again that Russia remains a predominant foreign threat to our elections,” said Deputy Attorney General Lisa Monaco. “At Putin’s direction, Russian companies SDA, Structura, and ANO Dialog used cybersquatting, fabricated influencers, and fake profiles to covertly promote AI-generated false narratives on social media. Those narratives targeted specific American demographics and regions in a calculated effort to subvert our election. Our republic depends on elections that are free from foreign interference, and we will not rest in our efforts to expose foreign malign influence operations and protect our democracy, without fear or favor.”

“Today’s announcement exposes the scope of the Russian government’s influence operations and their reliance on cutting-edge AI to sow disinformation,” said FBI Director Christopher Wray. “Companies operating at the direction of the Russian government created websites to trick Americans into unwittingly consuming Russian propaganda.  By seizing these websites, the FBI is making clear to the world what they are, Russian attempts to interfere in our elections and influence our society.  The FBI will continue to work with our partners to expose and shutdown these covert influence campaigns.”

“This seizure illustrates vividly what the U.S. government and private sector partners have warned for months: the Russian government and its proxies are aggressively accelerating the Kremlin’s covert efforts to seed false stories and amplify disinformation directed at the American public,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s announcement reveals Russia is willing to impersonate our free and open press in its egregious schemes. This is our third disruption of Russian foreign malign influence operations in two months, and the Justice Department remains relentless in protecting Americans from such unacceptable conduct. To Russia, and any other government seeking to stoke discord in our society: know that we will spare no effort and use every available tool to disrupt and expose this malign activity and defend our democratic institutions.”

“Protecting our democratic processes from foreign malign influence is paramount to ensure enduring public trust,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “As America’s adversaries continue to spew propaganda and disinformation towards the American electorate, we’ll use every tool at our disposal to expose and dismantle their insidious foreign influence campaigns.”

The propaganda did not identify, and in fact purposefully obfuscated, the Russian government or its agents as the source of the content. The perpetrators extensively utilized “cybersquatted” domains, a method of registering a domain intended to mimic another person or company’s website (e.g., registering washingtonpost.pm to mimic washingtonpost.com), to publish Russian government messaging falsely presented as content from legitimate news media organizations. In other instances, the perpetrators sought to create their own unique media brands to promote Doppelganger content (e.g., Recent Reliable News). Among the methods Doppelganger used to drive viewership to the cybersquatted and unique media domains was the deployment of “influencers” worldwide, paid social media advertisements (in some cases created using artificial intelligence tools), and the creation of social media profiles posing as U.S. (or other non-Russian) citizens to post comments on social media platforms with links to the cybersquatted domains, all of which attempted to trick viewers into believing they were being directed to a legitimate news media outlet’s website.

Overview

The affidavit describes the perpetrators’ own internal strategy meeting notes, project proposals, and other records obtained during the course of the investigation. Several notable propaganda project proposals directed against the United States included:

• Good Old USA Project: Attachments 8A, 8B
• The Guerilla Media Campaign: Attachments 9A, 9B
• U.S. Social Media Influencers Network Project: Attachments 10A, 10B

Doppelganger’s foreign malign influence efforts were not directed solely against audiences in the United States. Other targets of the perpetrators’ propaganda included Germany, Mexico, and Israel, among others. Doppelganger’s influence campaigns sought to influence the citizenry of those countries to support Russian government objectives, including by undermining the United States’ relationship with those countries.

Doppelganger’s use of the U.S.-based domain names at the direction and control of, and for the benefit of, sanctioned persons, including Sergei Vladilenovich Kiriyenko, SDA, and Structura, violates the International Emergency Economic Powers Act (IEEPA). As a result, the accompanying payments for Doppelganger’s online infrastructure violate federal money laundering laws. In addition, Doppelganger’s publication of content on cybersquatted domains with names and content that mimic legitimate media outlets violates federal criminal trademark laws because those domains feature trademarks registered on the Principal Register maintained by the U.S. Patent and Trademark Office.

The FBI Philadelphia Field Office is investigating the case.

The U.S. Attorney’s Office for the Eastern District of Pennsylvania, the National Security Division’s Counterintelligence and Export Control Section and National Security Cyber Section are prosecuting the case, with valuable assistance from the Criminal Division’s Computer Crime and Intellectual Property Section.