Former Comptroller General of Ecuador Sentenced in International Bribery and Money Laundering Scheme

Source: United States Department of Justice Criminal Division

The former comptroller general of Ecuador was sentenced today to 10 years in prison for his role in a multimillion-dollar international bribery and money laundering scheme in which he received over $10 million in bribes and laundered those bribes payments in South Florida.

According to court documents and evidence presented at trial, between 2010 to 2015, Carlos Ramon Polit Faggioni, 73, solicited and received over $10 million in bribe payments from Odebrecht S.A., the Brazil-based construction conglomerate. Polit, in his position as Comptroller General of Ecuador, was responsible for protecting public funds against fraud and rooting out corruption. Instead, Polit took bribes from Odebrecht in exchange for removing fines and not imposing fines on Odebrecht’s projects in Ecuador. Additionally, in or around 2015, Polit received a bribe from an Ecuadorian businessman in exchange for assisting the businessman with obtaining certain contracts with the state-owned insurance company of Ecuador. From in or around 2010 and continuing until at least 2017, at the direction of Polit, another member of the conspiracy caused proceeds of Polit’s bribery scheme to “disappear” by using Florida companies registered in the names of friends and associates, often without the associates’ knowledge. The conspirators also used funds from Polit’s bribery scheme to purchase and renovate real estate in Florida.

On April 23, Polit was convicted at trial of one count of conspiracy to commit money laundering, three counts of concealment money laundering, and two counts of engaging in transactions in criminally derived property. In addition to the term of imprisonment, Polit was also ordered to serve three years of supervised release and forfeit $16.5 million.

Odebrecht S.A. pleaded guilty in December 2016 to conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) in connection with a broader scheme to pay nearly $800 million in bribes to public officials in 12 countries, including Ecuador.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Markenzy Lapointe for the Southern District of Florida; and Special Agent in Charge Anthony Salisbury of the Homeland Security Investigations (HSI) Miami Field Office made the announcement.

The HSI Miami Field Office investigated this case. The FBI International Corruption Squad investigated the Odebrecht case and provided substantial assistance in this case.

The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department also thanks the assistance with the investigation of law enforcement authorities in Ecuador, Brazil, Panama, and Curacao.  

Trial Attorney Jil Simon and Assistant Chief Alexander Kramer of the Criminal Division’s Fraud Section and Senior Litigation Counsel Michael N. Berger for the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Sandra Demirci for the Southern District of Florida is handling asset forfeiture.

The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

Florida Tax Return Preparer Agrees to Permanent Injunction and to Pay $85,000 in Ill-Gotten Gains

Source: United States Department of Justice Criminal Division

The U.S. District Court for the Southern District of Florida issued a permanent injunction yesterday against West Palm Beach, Florida, tax return preparer Gregory Salgado, both individually and doing business as GMJ Real Investments Inc. and doing business as Cuba Salgado Tax & Real Estate.

The injunction bars Salgado from preparing tax returns, working for or having any ownership stake in any tax preparation business, assisting others prepare tax returns or set up business as a preparer and transferring or assigning customer lists to any other person or entity. The court also ordered Salgado to pay $85,000 in ill-gotten gains he received from his return preparation business. Salgado agreed to both the injunction and the order to pay $85,000.

The complaint alleged that Salgado pleaded guilty in 2012 to filing a false personal return and filing a false return for another taxpayer, and the IRS subsequently assessed more than $500,000 in civil penalties against him for willfully underreporting tax on returns he prepared for customers. According to the complaint, neither Salgado’s conviction, 33-month incarceration nor civil penalties altered his behavior. After his release from prison in August 2015, Salgado continued to prepare thousands returns for customers that either reduced their tax liability or inflated their refund claims. He did this largely by falsifying or overstating itemized deductions, fabricating or overstating business income and expenses and falsifying filing statuses and dependents.

As a result of the court’s order, Salgado must send notice of the injunction to each person for whom he or his business prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2019, to the present. Additionally, the court ordered Salgado post a copy of the injunction at all locations where he conducts business and on his business’s website.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Readout of Justice Department’s “Walk the Redline” Event to Commemorate the Third Anniversary of the Combating Redlining Initiative

Source: United States Department of Justice Criminal Division

To commemorate the third anniversary of the Justice Department’s Combating Redlining Initiative, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Matthew M. Graves for the District of Columbia conducted a walking tour yesterday along Washington D.C.’s historic U Street Corridor.

This year also marks the Justice Department’s 30th anniversary of redlining enforcement efforts. In 1994, the department filed its first redlining case against Chevy Chase Federal Savings Bank in Washington, D.C. Walking the historic U Street Corridor highlights the roots of the department’s fair lending enforcement efforts and continued commitment to fight for equal opportunity for all people and communities impacted by redlining. 

Assistant Attorney General Clarke and U.S. Attorney Graves met with three of the longest enduring Black-owned businesses in Washington D.C. — Industrial Bank, Lee’s Flower and Card Shop and Ben’s Chili Bowl — to discuss how access to credit and financial services impacted the neighborhood. Leaders reflected on the local Black community’s rich history of entrepreneurship and contributions to the local economy despite historical redlining.

Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. Starting in 2025, lenders will also be required to collect and report on the racial demographics of small business loans provided by financial institutions.

“These three legacy D.C. establishments underscore how access to credit and loan services can be transformative in providing access to economic opportunity and generational wealth for Black communities,” said Assistant Attorney General Clarke. “Our Combating Redlining Initiative is holding financial institutions accountable for unlawful redlining practices and has resulted in historic relief to close the widening wealth gap between communities of color and others. As we expand our efforts, we look forward to reviewing future data on business loans to ensure that banks are engaged in fair lending to small businesses.”

“Industrial Bank’s relationship with Lee’s Flower and Card Shop and Ben’s Chili Bowl shows how businesses can thrive when banks provide access to lending,” said U.S. Attorney Graves. “The U.S. Attorney’s Office for the District of Columbia, along with our partners at the Civil Rights Division, are committed to holding accountable those banks that are not providing equal access to lending.”  

In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative as the most aggressive and coordinated effort to fight discriminatory lending against communities of color. The Initiative brings a comprehensive approach by working with U.S. Attorneys’ Offices, State Attorneys General and financial regulatory agencies nationwide to address redlining. 

Since 2021, the department has reached major milestones since its launch, including:

  • Securing 13 settlements totaling $137 million in relief for communities of color across the country in California, Delaware, Florida, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, Texas and Tennessee.
  • Securing a historic amount of relief that includes $121 million in subsidies for home loans and is expected to generate over $1 billion in investment in affected communities in places such as Houston; Memphis, Tennessee; Newark, New Jersey; Los Angeles; and Charlotte, North Carolina.

Information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/crt/fair-lending-program. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online. Information about the U.S. Attorney’s Office’s civil rights enforcement may be found at www.justice.gov/usao-dc/affirmative-civil-rights-and-environmental-justice.

Beginning in 2025, consistent with section 1071 of the Dodd-Frank Act, lenders will be required to collect and report certain demographic data for small business loan applications. Information about the Consumer Financial Protection Bureau’s small business lending rulemaking may be found at Small business lending rulemaking | Consumer Financial Protection Bureau (consumerfinance.gov).

Assistant Attorney General Clarke and U.S. Attorney Graves meet with management at Industrial Bank.
Assistant Attorney General Clarke and U.S. Attorney Graves are shown a mural by the owners of Lee’s Flower and Card Shop.
Assistant Attorney General Clarke and U.S. Attorney Graves tour Ben’s Chili Bowl.

Defense News: CNO Remarks at FY25 CPO Pinning Ceremony

Source: United States Navy

Good afternoon, everyone! It’s a great Navy Day. 

Acting Secretary Mancinelli, flags, general officers, senior enlisted leader distinguished guests, active and reserve Sailors, our civilian teammates, and most importantly the family and friends of our Navy chief selects, and our Navy chief selects. It is truly an honor to be with you here today at the Navy Memorial. I can think of no better place to have this event than right here. And I know you wish you were outside, so imagine you’re outside right now sitting at the home of the world’s largest granite sea. It’s the home of the stories of our Sailors. It’s the home of the National Chiefs Mess.  

Let me start by saying thank you very much to the Navy Band and Ceremonial Guard for adding so much to our celebration. And let’s give them a round of applause so they can hear it. And thank you to all of our Sailors, Civilians, and joint teammates here today. Thank you for answering our Nation’s call to service and for being part of the world’s preeminent fighting force. 

I’d also like to extend my thanks to all of the families, the friends, and the mentors both who are here today – those who are watching virtually – and those you represent for your own service and for your sacrifice. We can not do what we do every day without you. It’s really because of your love, your support, and your encouragement that we can be here to welcome America’s newest Navy chiefs into America’s Warfighting Navy.  

Thank you for having such an outsized impact on the lives of your Sailors.  How about a round of applause for all of our families and support networks out in the crowd today!

Well, today really is a great Navy day! And in a few moments we will bear witness to a time-honored tradition one that is steeped in over 130 years of naval history as our selectees pin on their anchors, don their covers and begin their journey as deckplate leaders: Navy chiefs. 

This afternoon’s ceremony – the Pinning of our chief petty officers signifies a critical milestone in the lives of these Sailors – one that represents years of hard work, dedication, and perseverance and one that only a handful in our Navy will ever achieve. It is truly a day they will remember for the rest of their lives. 

The responsibilities and expectations of a Navy chief are unlike that of any other leader in our armed forces. They emulate our Navy’s core values of honor, courage and commitment. They’re caretakers of Navy history and tradition and they’re leaders of character, culture, and competency molded by their years of experience out in the Fleet. 

As our Navy’s senior enlisted leaders, chiefs are charged with the great responsibility of training, mentoring, and developing our future Warfighters. And while teaching a young seaman may be different from mentoring an ensign or advising a captain, or even an admiral, the expectation remains the same: chiefs must be able to do it all.

And let me tell you that there is no greater impact on a Sailor than the mentorship and guidance provided by their chief. To this day, I still think about my first chiefs: Chief Jones, Chief Satriano and Chief Salvatore. 

Chief Jones was my very first chief at my very first command: Navy Reserve Readiness Command Region 13. Chief Jones ensured Ensign Franchetti got off on the right foot. 

Chief Satriano and Chief Salvatore were my chiefs on my first ship. I was brand new to the Fleet and was just assigned my very first division of 70 Sailors – a journalism major responsible for engineers. It was overwhelming at first, but my chiefs took me under their wing and they taught me everything I needed to know: 

They taught me that the worst day at sea is still better than any day ashore. 

They taught me that the crusted leathery coating on the inside of a chief’s mug added flavor. 

They taught me that a chief sees everything, but admires nothing.

And they taught me that the leadership skills I’d learn out on the deckplates was far better than any of the leadership books in my stateroom. 

Thirtynine years later, the best lessons on leadership have come from my chiefs:

They taught me that every Sailor has value and can achieve exceptional performance if given the tools and the time to succeed. 

They reinforced the importance of listening to and getting to know our Sailors and taking a personal interest in their lives and what they had to say. And  they taught me the value of teamwork, especially in the face of adversity and that there is nothing we can’t do if we work together with a common vision, where everyone understands the importance of their role and how they can connect their dot to the mission.

My chiefs invested in me  and I strive every day to be the leader that they wanted me to be. Their mentorship – and the mentorship from all the senior enlisted leaders I’ve served with along the way help me become the officer and leader I am today. And I know I would not be standing here as the 33rd CNO without my chiefs and the broader chiefs mess that I’ve had the pleasure to serve with these last 39 years. 

So as I start to wrap up, I’d be remiss if I didn’t take the opportunity to pass on to you our Navy’s newest chiefs a few of my own thoughts on leadership and what I consider most important about being a “leader of consequence” in this decisive decade.

Over the past 39 years, I’ve distilled my thoughts into six key principles, and their principles which guide me and keep me focused on what matters most.

The first principle: integrity matters. It is the foundation of trust both up and down our chain of command so we can build connectedness and cohesion within our teams. chiefs must be authentic and their actions must be consistent with the team’s values and priorities. 

Navy chiefs take full responsibility for their actions and stand up for what is right. Their character must be beyond reproach.  

The second principle: people matter. We can have great technology, great platforms, and the best equipment in the world- and we do – but without our amazing people to operate it, we can’t go anywhere or do anything. Sailors need to know their purpose, they need to know their value, and they need to know and understand how to do their job.  

Navy chiefs help our Sailors connect their dot to our mission. 

The third principle: warfighting excellence matters. This is where we make our money in the Navy, and I want to be clear: we are not just Sailors, we are all warfighters, and we must view everything we do through a warfighting lens. Chiefs must be the master of their rating and remain sharp on their procedures and their tactics. Only then can they train and develop our future warfighters. 

Navy Chiefs are mission focused and accountable for outcomes. They give their Sailors the tools, the time, and the training necessary to ensure that we are ready to deter any potential adversary and that we are ready to fight and win decisively in war, if called to do so.

The fourth principle, as I  mentioned earlier, teamwork matters. The whole is truly greater than the sum of the parts and together, we have the power to unleash the full potential of our Sailors and our teams.

Navy chiefs foster environments which promote the transparency, empowerment, and inclusion that enable our teams to succeed despite many challenges. 

The fifth principle: safety matters. What we do in the Navy every day is dangerous. Whether you are out to sea or stationed ashore, accidents happen and the enemy always gets a vote. As leaders, we always need to be on the lookout no matter how routine or repetitive something may seem. 

Navy chiefs make safety a part of their everyday lives and they are always “antennas up” ready to break the error chain.  

And finally the sixth principle: attitude makes a difference. approaching each day with a winning mindset. “Stuff” happens to everyone, on deployment, at work, at home – no one can avoid it. And when “stuff” does happen, It’s how you react that matters , and your sailors will be paying attention to how you react. 

Navy chiefs embrace everything they do with positivity and a winning mindset, their authenticity will set the tone. 

So before we jump into the pinning ceremony, and I know that you’re all eager to get up here and put those anchors on, let me just leave you with one final thought.

When you leave today, nobody will know how long you’ve been a chief. They will just see that you are the chief. So when you get back to your places of work and back to your commands, embrace the weight of the anchors you have on your collars. Lean into the responsibility that you’ve been entrusted with and be the Chief!

Thank you for your service and for your continued dedication to our Nation, and thank you to your families for their support, service, and sacrifice. Every single one of you makes a difference every day, and you play a critical role in America’s Warfighting Navy.

I could not be more proud to serve alongside you, and I can’t wait to see what this group of Navy chiefs – our newest group of deckplate leaders – will do. 

Congratulations and BRAVO ZULU Navy Chiefs!

Defense News: Navy & Marine Corps Exceeded FY24 Recruiting Goals

Source: United States Navy

Secretary of the Navy Carlos Del Toro visited Millington, Tennessee, today to meet with Navy Recruiting Command leadership, recruiters, and support personnel. During the visit, he expressed his gratitude for their hard work and dedication.

“I know you work incredibly hard as recruiters, and this can be an exhausting set of orders, but that is why we only select the best Sailors for recruiting duty,” said Secretary Del Toro. “You truly make a difference in assuring the future of our Navy. The Sailors you recruited this year will form the backbone of our Fleet for several decades.”

For FY24, the Navy not only met its contracting goals without lowering targeted objectives, it also exceeded retention goals. Once again, this fiscal year the Marine Corps exceeded its recruitment goals for both officers and enlisted.

While the Navy achieved its FY2024 recruiting goals, some recruits are slated to attend boot camp in FY2025, which is when the schoolhouse can accommodate them.

The Navy’s recruiting success is attributed to several factors including data-driven decision-making, enhanced focus on annual goals, reduced timeframe for processing medical waivers, removing red tape, and expanding opportunities.

Over the past year, the Navy identified and closed gaps in the recruiting process. For example, the CNO established a culture of “Every Sailor a Recruiter” and advanced our recruiting enterprise by appointing a senior, two-star admiral to lead our recruiting stations and centers. Furthermore, recruiter goals were adjusted from monthly to annual to promote steady-state performance.

The Navy also stood up a Recruiting Operations Center to monitor recruiting efforts in real time, increase production and remove variance among 26 Talent Acquisition Groups. The new center streamlined processes to expedite newly contracted recruits to boot camp.

The Navy increased the number of specialties that new Sailors are eligible for, including the new robotics rating, and implemented the Future Sailor Prep Course to provide more opportunities for aspiring Sailors.

“The Navy is focused on thoughtfully increasing recruiting numbers while maintaining historically high retention rates,” said Secretary Del Toro. “We are doing this by improving the efficiency of our recruiting enterprise and expanding the pool of applicants who can join our team.”

The Navy’s recruiting success in FY2024 is a testament to the dedication of its recruiters and the appeal of service in the Navy. The Navy offers a wide range of opportunities for young men and women to serve their country, gain valuable skills, and build a rewarding career.

The U.S. Navy is the largest, most capable, and most technologically advanced naval force in the world. The Navy’s mission is to maintain, train, and equip combat-ready naval forces capable of winning wars, deterring aggression, and maintaining freedom of the seas.