Month: April 2025

Source: United States Department of Justice Criminal Division

DRI Relays Inc. (DRI), a subsidiary of TE Connectivity Corporation (TEC), has agreed to pay $15.7 million to resolve allegations that it violated the False Claims Act by supplying military parts that did not meet military specifications, the Justice Department announced today.

TEC acquired DRI in October 2020. DRI manufactures electrical relays and sockets for numerous military platforms and has manufacturing locations in Long Island, New York, and Bangalore, India. In January 2011, TEC disclosed to the Department of Defense that DRI had not conducted certain required tests on MIL-PRF-83536 relays and MIL-DTL-12883 sockets, and cooperated with the government’s investigation. The United States subsequently alleged that between 2015 and 2021, under various Department of Defense (DoD) contracts and subcontracts, DRI invoiced for military grade electrical relays and sockets when it knew those parts had not met the testing requirements to be deemed military grade.  

“It is essential to the safety and operational readiness of our military that contractors comply with applicable military specifications,” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. “We will continue to hold accountable those who knowingly supply equipment to the U.S. military that fails to meet their contract obligations.”

“Maintaining the integrity of the U.S. Department of Defense supply chain is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “The DoD expects its suppliers to adhere to contract specifications and perform required testing on products sold to the U.S. military. We are committed to working with our law enforcement partners to investigate allegations of contractors failing to meet testing protocols and disclose product deficiencies.”

“This settlement demonstrates the resolve of the Department of the Army Criminal Investigation Division (Army CID) and our law enforcement partners to ensure the integrity of the equipment and materiel procured or used by the United States Army,” said Special Agent in Charge Keith K. Kelly of the Department of the Army CID Fraud Field Office. “Failures to adhere to established standards when providing military parts can place our Soldiers at significant risk and adversely impact the Army’s warfighting capabilities.”

This matter was handled by Senior Trial Counsel Art J. Coulter of the Civil Division’s Commercial Litigation Branch, Fraud Section. DCIS, Army CID, and the Defense Contract Audit Agency assisted in this investigation.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Source: United States Department of Justice Criminal Division

Four real estate investors were sentenced in an extensive, multi-year conspiracy to fraudulently obtain multimillion-dollar loans on commercial and multifamily properties.

Aron Puretz, 53, of New Jersey, and his son, Chaim “Eli” Puretz, 29, of New Jersey, were sentenced to prison for conspiracy to commit wire fraud affecting a financial institution. Aron Puretz was sentenced to 60 months in prison and ordered to pay $22,235,457 in restitution, and Eli Puretz was sentenced to 24 months in prison and ordered to pay $20,315,457 in restitution.

Moshe “Mark” Silber, 34, of New York, and Fredrick Schulman, 72, of New York, were also sentenced to terms of imprisonment for their respective roles in a conspiracy to commit wire fraud affecting a financial institution. Silber was sentenced to 30 months in prison, and Schulman was sentenced to 12 months and a day in prison, to be followed by nine months of home confinement.  The restitution amounts for Silber and Schulman will be determined at a later hearing.

According to court documents, Aron and Eli Puretz were owners of a commercial property, Troy Technology Park, in Troy, Michigan. In September 2020, Aron and Eli Puretz purchased Troy Technology Park for approximately $42 million, before selling or flipping the property to a co-conspirator for approximately $70 million. Aron and Eli Puretz and their co-conspirators provided the lender with falsified documents that included the inflated purchase price. Based on the fraudulent documents, the lender funded a loan for $45 million. To conceal the fraudulent nature of the transaction, Aron and Eli Puretz and co-conspirators arranged for a short-term $30 million loan, which was used to make it appear that they had the funds needed to close on the sale. On Sept. 25, 2020, a title company based in Lakewood, New Jersey, performed two simultaneous closings, one for the true sales price and another for the fraudulent sales price presented to the lender. 

Separately, Silber and Schulman were managing members of Rhodium Capital Advisors, an entity that was involved in the acquisition and management of Williamsburg of Cincinnati, a large apartment complex in Cincinnati, Ohio. In March 2019, Williamsburg of Cincinnati was acquired for $70 million. However, Silber, Schulman, and other co-conspirators utilized a stolen identity to present a lender and Fannie Mae with a fraudulent purchase-and-sale contract for over $95 million and other fraudulent documents. On March 8, 2019, two closings were performed, one for the true $70 million sales price and another for the fraudulent over $95 million sales price presented to the lenders. Based on the co-conspirators’ false statements, the lender and Fannie Mae funded a loan in excess of $74 million for the purchase of Williamsburg of Cincinnati.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; Interim U.S. Attorney Alina Habba for the District of New Jersey; Inspector General Brian M. Tomney of the FHFA-OIG; Postal Inspector in Charge Eric Shen of the USPIS Criminal Investigations Group; and Acting Inspector General Stephen M. Begg of the HUD-OIG made the announcement.

Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Martha Nye for the District of New Jersey are prosecuting the case.

Source: United States Department of Justice Criminal Division

An Alaska man pleaded guilty in federal court yesterday to producing child sexual abuse material (CSAM).

According to court documents, William Steadman, 35, of Juneau, a registered sex offender, enticed a young boy to engage in sexually explicit conduct, which Steadman recorded and posted on the dark web. After the CSAM was posted, law enforcement began working to determine who had created and posted the images. Even though Steadman attempted to hide his identify from law enforcement by using the dark web, a cryptocurrency payment for additional CSAM and thorough analysis of online statements tied to his alias led to his identification and arrest. A search of Steadman’s residence led to the discovery of over 4,000 images and videos of CSAM on his devices.

Steadman pleaded guilty to one count of production of child pornography. He is scheduled to be sentenced on a later date and faces a mandatory minimum sentence of 25 years in prison and a maximum penalty of 50 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; U.S. Attorney Michael J. Heyman for the District of Alaska; Special Agent in Charge Glen Peterson of the U.S. Secret Service’s Seattle Field Office made the announcement.

The Secret Service’s Internet Crimes Against Children Task Force investigated the case.

Trial Attorney McKenzie Hightower of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Mac Caille Petursson for the District of Alaska are prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

Source: United States Department of Justice Criminal Division

WASHINGTON – Today, Attorney General Pamela Bondi released the following statement:

“Luigi Mangione’s murder of Brian Thompson — an innocent man and father of two young children — was a premeditated, cold-blooded assassination that shocked America. After careful consideration, I have directed federal prosecutors to seek the death penalty in this case as we carry out President Trump’s agenda to stop violent crime and Make America Safe Again.”

• As alleged, Luigi Mangione stalked and murdered UnitedHealthcare executive Brian Thompson on December 4^th, 2024.  The murder was an act of political violence.  Mangione’s actions involved substantial planning and premeditation and because the murder took place in public with bystanders nearby, may have posed grave risk of death to additional persons.   
• Following federal murder charges handed down on December 19^th, 2024, Attorney General Bondi has now directed Acting US Attorney Matthew Podolsky to seek the death penalty in this case.

This is in line with Attorney General Bondi’s Day One Memo as Attorney General entitled Reviving The Federal Death Penalty And Lifting The Moratorium On Federal Executions