Justice Department Finds State of Oklahoma, Oklahoma City and Oklahoma City Police Department Discriminate Against People with Behavioral Health Disabilities

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it has reasonable cause to believe that the State of Oklahoma, Oklahoma City and Oklahoma City Police Department (OKCPD) discriminate against people with behavioral health disabilities. Specifically, the department finds that:

  • Oklahoma unnecessarily institutionalizes, or puts at serious risk of unnecessary institutionalization, adults with behavioral health disabilities in the Oklahoma County area, in violation of Title II of the Americans with Disabilities Act (ADA);
  • Oklahoma City and OKCPD engage in a pattern or practice of conduct that discriminates against people with behavioral health disabilities when providing emergency response services, in violation of Title II of the ADA and the pattern or practice provision of the Violent Crime Control and Law Enforcement Act of 1994.

“People with behavioral health disabilities in the Oklahoma County area are not receiving the support they need,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Instead of accessing treatment in the community, they are institutionalized repeatedly. Further, when they call 911 for a behavioral health emergency, they get a response by armed police, even when there is no public safety issue identified. As a result, urgent mental health needs often go unaddressed and crisis situations are needlessly escalated, sometimes leading to avoidable use of force. We recognize that the state and the city are taking preliminary steps to improve access for and treatment of people with behavioral health disabilities. The Justice Department is committed to working collaboratively with Oklahoma and Oklahoma City so that they implement the right services and supports their communities need and institute a lasting remedial plan.” 

The department’s investigation of the State of Oklahoma found that thousands of people with behavioral health disabilities are admitted to psychiatric hospitals in the Oklahoma County area each year, and many have long or repeated stays. Many also have long-term stays in nursing or residential care facilities. Most would prefer to live in their communities, surrounded by friends and family, and to have the freedom to make their own choices about their lives. These individuals could live successfully in their communities if they received critical community-based services that are proven to help people with behavioral health disabilities avoid unnecessary admissions or unnecessarily lengthy stays in segregated institutional settings. But Oklahoma does not provide sufficient services to prevent unnecessary institutionalization. As a result, many people with behavioral health disabilities never receive treatment until they are in crisis, when they instead end up needlessly hospitalized or in contact with law enforcement. For many in the Oklahoma County area, OKCPD is the law enforcement agency they encounter.

The investigation also concluded that when a person calls 911 seeking assistance with a behavioral health issue, the city sends police as the sole responders in most cases. In many cases these calls for assistance could be more effectively resolved by a response by behavioral health professionals who can provide appropriate treatment, but the city rarely involves such professionals. Instead, armed OKCPD officers respond to situations involving behavioral health needs, often failing to help, escalating crises or even unnecessarily using force.

During the department’s investigation, both the state and city initiated improvements to their systems. The state continued to expand its crisis system and released an updated Olmstead plan, and the city announced plans to develop and provide a behavioral health response to 911 calls, and began to make improvements within OKCPD that will help address these violations.

The department will be conducting outreach to members of the Oklahoma community for input on remedies to address the department’s findings. People may also submit recommendations by calling (888) 473-3460 or emailing MentalHealth.Oklahoma@usdoj.gov.

The department has opened 12 pattern and practice investigations into law enforcement agencies since 2021 pursuant to 34 U.S.C. 12601, and has been actively monitoring over a dozen agreements with law enforcement agencies that were secured prior to that period. Since 2021, the department has successfully concluded agreements and portions of consent decrees with the Yonkers, New York, Police Department; the Albuquerque, New Mexico, Police Department; the Suffolk County, New York, Police Department; the Portland, Oregon, Police Bureau; and the Seattle Police Department. The department has issued findings reports concerning several agencies including: Louisville, Kentucky, Metro Police Department; the Minneapolis Police Department; the Phoenix Police Department; the Lexington, Mississippi, Police Department; the Trenton, New Jersey, Police Department; the Memphis, Tennessee, Police Department; the Worcester, Massachusetts, Police Department; and the Mt. Vernon, New York, Police Department. Investigations are ongoing regarding the Louisiana State Police; the New York City Police Department’s Special Victims Division; and the Rankin County, Mississippi, Sheriff’s Department. The department also reached a court enforceable agreement with Louisville to resolve its findings.

Additional information about the Civil Rights Division is available at www.justice.gov/crt.

The Justice Department will hold a virtual community meeting on Jan. 7 at 6 p.m. CT. Members of the public are encouraged to attend to learn more about the findings. Please register to join the meeting at www.zoomgov.com/webinar/register/WN_lZgzBC4lRJiw7tk3pfEXrw#/registration.

Pennsylvania Man Who Traveled to Lebanon and Syria with Goal of Joining Hizballah Indicted on Terrorism Offense and for Lying to FBI

Source: United States Department of Justice Criminal Division

Jack Danaher Molloy, 24, a former resident of Pittsburgh, Pennsylvania, has been indicted by a grand jury on charges of attempting to support the foreign terrorist organization Hizballah and making false statements involving international terrorism to a department or agency of the United States.

Molloy was previously charged by criminal complaint with making false statements on Dec. 6, 2024, with much of the conduct underlying the charges in the indictment set forth in the complaint. Molloy was arrested in Chicago, Illinois, on Dec. 6, 2024, and transported by the U.S. Marshals Service to Pittsburgh on Dec. 30, 2024.

As alleged in the indictment and complaint, from in and around August 2024 through in and around December 2024, in Lebanon, Syria, the Western District of Pennsylvania, and elsewhere, Molloy attempted to provide material support and resources—namely, personnel (including himself) and services — to Hizballah, a foreign terrorist organization (FTO), knowing that the organization was a designated terrorist organization and that the organization had engaged in and was engaging in terrorist activity and terrorism. As outlined in the court documents, Hizballah, also commonly spelled Hezbollah, was formed in the wake of the 1982 Israeli invasion of Lebanon and has conducted numerous terrorist attacks against Israeli and Western targets, including against American military and diplomatic personnel.

As alleged, Molloy — a dual citizen of the United States and Ireland, who previously served on active-duty status in the U.S. Army — traveled to Lebanon in August 2024 and attempted to join Hizballah. While in Lebanon, Molloy was told by multiple individuals that the time was not right, and that he needed to take other steps before he could join the terrorist organization. Molloy then traveled from Lebanon to Syria in October 2024 in an effort to fight for Hizballah in Syria. After returning to the United States, Molloy resided in Upper St. Clair, where he continued his attempts to join Hizballah, including through communication with individuals online and in Lebanon. During his time in the United States and abroad, Molloy also allegedly expressed his hatred toward, and promoted violence against, Jewish people. Molloy’s alleged animus toward Jews was also evidenced by multiple images and videos on his electronic devices and the usernames he chose for his social media and email accounts, including the username “KIKEKILLER313” on the social media platform X. In one alleged WhatsApp exchange with a family member, Molloy agreed that his “master plan was to join Hezbollah and kill Jews.” And while he was residing in Upper St. Clair, Molloy also allegedly visited a website detailing the possible incarceration location of Robert Bowers, who carried out the Pittsburgh Tree of Life Synagogue shooting during which he murdered 11 Jewish worshippers.

The indictment further alleges that, upon arriving at the Pittsburgh International Airport on Oct. 20, 2024, Molloy lied to agents of the FBI when he told them (1) that he had no current or future plans to become involved with Hizballah, and (2) that he had no business in, nor was he meeting with anyone, in Syria. These statements and representations were false because Molloy knew at that time that (1) he did have current and future plans to become involved with Hizballah and (2) Molloy travelled to Syria in furtherance of his attempts to join Hizballah, and while in Syria, set up a meeting with an individual there.

If convicted, Molloy faces a maximum penalty of 20 years in prison for material support charge. For false statement charges, he faces a maximum penalty of eight years in prison, a $250,000 fine, or both. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Pittsburgh and Chicago Field Offices are investigating the case with substantial assistance from the U.S. Marshals Service.

Assistant U.S. Attorney Nicole Vasquez Schmitt of the Western District of Pennsylvania and Trial Attorney Andrew Briggs of the National Security Division’s Counterterrorism Section are prosecuting the case.

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

Do Kwon Extradited to the United States from Montenegro to Face Charges Relating to Fraud Resulting in $40B in Losses

Source: United States Department of Justice Criminal Division

Do Hyeong Kwon, 33, a citizen of the Republic of Korea, was extradited from Montenegro and appeared in court today in Manhattan to face federal fraud charges. A superseding indictment that was unsealed against Kwon alleged that the co-founder and former chief executive officer of Terraform Labs PTE Ltd. (Terraform) engaged in multiple schemes to deceive investors in order to fraudulently inflate the value of Terraform’s cryptocurrencies.

Kwon arrived in the United States on Dec. 31, 2024, and made his initial appearance before U.S. Magistrate Judge Robert W. Lehrburger for the Southern District of New York. Kwon’s case is assigned to U.S. District Court Judge John P. Cronan, and will appear before Judge Cronan for an initial conference on Jan. 8 at 10:30 a.m ET.

“Do Hyeong Kwon will now be held accountable in an American courtroom for, as alleged in court documents, his elaborate schemes involving Terraform’s cryptocurrencies, which resulted in over $40 billion in investor losses,” said Attorney General Merrick B. Garland. “We secured this extradition despite Kwon’s alleged attempt to cover his tracks by laundering proceeds of his schemes and trying to use a fraudulent passport to travel to a country that did not have an extradition treaty with the United States. This extradition from Montenegro is an example of the Justice Department’s international partnerships, which enable the pursuit of criminals wherever they attempt to hide.”

“A federal grand jury has indicted Do Kwon for misleading his investors in order to fraudulently inflate the value of Terraform’s cryptocurrencies, and laundering the proceeds of his crimes,” said Attorney for the United States Daniel M. Gitner for the Southern District of New York. “As we allege, this fraud and the crash of Terraform’s cryptocurrencies in May 2022 erased over $40 billion in investor assets, causing devastating losses to countless investors in the United States and around the world. Kwon will now face justice in a federal courtroom in Manhattan.”

“Do Kwon, co-founder and former CEO of Terraform, allegedly defrauded investors by falsely advertising the company’s blockchain products as decentralized, reliable, and effective, and by engaging in market manipulation, ultimately resulting in more than $40 billion in investor losses,” said Assistant Director in Charge James E. Dennehy of the FBI New York Field Office. “For at least four years, Kwon allegedly played puppet master to maintain this crafted illusion and ensnare investors. The FBI will tirelessly work to apprehend any individual who engages in fraudulent financial practices, even those who flee internationally to escape prosecution.”

As alleged in the superseding indictment, from at least in or about 2018, up to and including in or about 2022, Kwon orchestrated schemes to defraud purchasers of Terraform cryptocurrencies. Among other things, Kwon made false and misleading claims regarding the stability and efficacy of Terraform’s cryptocurrency stablecoin protocol, its use of blockchain technology, and its development of functioning and reliable financial technologies.

As Kwon knew, however, core Terraform products did not work as Kwon had claimed. Rather, Kwon manipulated Terraform products to create the illusion of a functioning, stable, and decentralized financial system. Kwon’s conduct inflated the value of Terraform’s cryptocurrencies, which Kwon and entities he controlled possessed in large amounts and sold to investors in exchange for billions of dollars’ worth of other assets.

Kwon’s misrepresentations included the following:

  • The Stablecoin Misrepresentations: Kwon made misrepresentations about the effectiveness of the system that lay at the heart of Terraform’s cryptocurrency empire, the “Terra Protocol,” which purportedly used a computer algorithm to maintain the value of Terraform’s so-called “stablecoin” pegged to the U.S. dollar, TerraUSD (UST), at a value of $1 for one UST. But as Kwon knew, after the Terra Protocol failed to cause the restoration of UST’s $1 peg in May 2021, Kwon reached an agreement with executives at a high-frequency trading firm (the Trading Firm) so that the Trading Firm would purchase large amounts of UST in order to artificially support UST’s $1 peg.
  • The LFG Misrepresentations: Kwon made misrepresentations about the governance of the Luna Foundation Guard Ltd. (LFG), which Kwon claimed was managed by an independent governing body and was tasked with deploying billions of dollars’ worth of financial reserves to defend UST’s peg. But as Kwon knew, he controlled both the LFG and Terraform. In addition, Kwon misappropriated hundreds of millions of dollars in assets from the LFG. Kwon and others acting at his direction sought to launder those misappropriated funds through transactions designed to conceal and disguise the nature, location, source, ownership, and control of the funds.
  • The Mirror Misrepresentations: Kwon made misrepresentations about the success and operation of an investing platform on Terraform’s blockchain (the Terra blockchain) called Mirror Protocol (Mirror), that purportedly allowed users to create, buy, and sell synthetic versions of stocks listed on U.S. securities exchanges. Kwon claimed that Mirror operated in a decentralized manner and that he and Terraform played no role in Mirror’s governance. But as Kwon knew, he and Terraform secretly maintained control over Mirror, and used automated trading bots to manipulate the prices of synthetic assets that Mirror issued. Kwon also caused Terraform to inflate key user metrics to deceive investors.
  • The Chai Misrepresentations: Kwon falsely claimed that the Terra blockchain was being used to process billions of dollars in financial transactions for the Korean payment-processing application Chai. In doing so, Kwon claimed that the Terra blockchain had “real world” applications or uses, as distinct from competing cryptocurrency platforms. But as Kwon knew, Chai processed transactions through traditional financial processing networks, not the Terra blockchain.
  • The Genesis Coin Misrepresentations: Kwon made misrepresentations about the use of a supply of one billion stablecoins programmed into the Terra blockchain at its creation (the Genesis Stablecoins), which were purportedly held in reserve for Terraform for certain specified uses. But Kwon used at least $145 million worth of Genesis Stablecoins, among other things, to fund fake Chai blockchain transactions and trading bots to manipulate the prices of synthetic assets that Mirror issued.

At its peak in the spring of 2022, the total apparent market value of all UST and another Terraform cryptocurrency, LUNA, exceeded $50 billion. Much of this growth followed Kwon’s misrepresentations about Terraform and its technology, including efforts in May 2021 by Kwon and his associates to secretly manipulate the market for UST. By May 2022, the UST market was approximately nine times larger in terms of market capitalization and more than eight times larger in terms of daily trading volume relative to May 2021. In May 2022, UST’s peg began to break down as it had a year prior. While Kwon was able to cover up the weaknesses of the Terra Protocol in May 2021, he was not able to do so in May 2022. As a result, the value of UST and LUNA crashed and investors suffered over $40 billion in losses. After the crash of UST and LUNA in May 2022, Kwon caused the distribution of a misleading “third party audit” report to cover up his crimes, and sought to launder the proceeds of his fraud through different blockchains, cryptocurrency exchanges, and a Swiss bank account.

On or about March 23, 2023, Kwon was arrested in Europe for trying to use a fraudulent passport to travel to a country that did not have an extradition treaty with the United States.

Kwon was previously charged in the Southern District of New York in an initial indictment on March 23, 2023.

Kwon is charged with two counts of commodities fraud, for which he faces a maximum penalty of 10 years in prison for each count; two counts of securities fraud, for which he faces a maximum penalty of 20 years in prison for each count; two counts of wire fraud, for which he faces a maximum penalty of 20 years in prison for each count; two counts of conspiracy to commit commodities fraud, securities fraud, and wire fraud, for which he faces a maximum penalty of five years in prison for each count; and one count of money laundering conspiracy, for which he faces a maximum penalty of 20 years in prison. If convicted of all charges, Kwon faces a maximum penalty of 130 years in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.

The FBI are investigating the case, with assistance from the Justice Department’s Office of International Affairs, Interpol, and the Ministry of Justice, Supreme State Prosecutor’s Office, Special State Prosecutor’s Office, and Police Directorate of Montenegro in the extradition of the defendant. The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission also assisted in the case.

Assistant U.S. Attorneys Jared Lenow, Kimberly Ravener, and Andrew Thomas for the Southern District of New York 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.

Attorney General Merrick B. Garland Statement on New Orleans Attack

Source: United States Department of Justice Criminal Division

The Justice Department issued the following statement from Attorney General Merrick B. Garland following the attack in New Orleans:

“The country woke up this morning to news of a terrible tragedy in New Orleans that killed at least 10 people and injured many more.

My heart is broken for those who began their year by learning people they love were killed in this horrific attack, and my prayers are with the dozens who were injured, including the New Orleans Police Department Officers who risked their lives to save others.

The FBI is investigating this matter as an act of terrorism. The FBI, the ATF, the Justice Department’s National Security Division, and the U.S. Attorney’s Office for the Eastern District of Louisiana will continue to work with our law enforcement partners and will deploy every available resource to conduct this investigation.”

Security News: Attorney General Merrick B. Garland Statement on New Orleans Attack

Source: United States Department of Justice 2

The Justice Department issued the following statement from Attorney General Merrick B. Garland following the attack in New Orleans:

“The country woke up this morning to news of a terrible tragedy in New Orleans that killed at least 10 people and injured many more.

My heart is broken for those who began their year by learning people they love were killed in this horrific attack, and my prayers are with the dozens who were injured, including the New Orleans Police Department Officers who risked their lives to save others.

The FBI is investigating this matter as an act of terrorism. The FBI, the ATF, the Justice Department’s National Security Division, and the U.S. Attorney’s Office for the Eastern District of Louisiana will continue to work with our law enforcement partners and will deploy every available resource to conduct this investigation.”