Six People Indicted for Conspiracy to Commit Sex Trafficking in Massachusetts

Source: United States Department of Justice Criminal Division

An indictment was unsealed last week in Boston charging Christy Parker, 26; Alexander Smalls, 25; Cory Primo, 42; Avvani Jeffers, 22; Tre’sean Reid, 21; and Tyreik Reid, 20, with conspiracy to commit sex trafficking and other sex trafficking charges.

According to the indictment, between January and August 2023, Parker, Smalls, Tre’sean Reid and Tyreik Reid used force, threats of force, fraud and coercion to compel an adult woman to engage in commercial sex. The indictment further alleges that, between July and August 2023, Parker, Smalls, Primo and Jeffers used force, threats of force, fraud and coercion to compel a minor to engage in commercial sex. The indictment further alleges that, in August 2023, Parker, Primo and Jeffers knowingly recruited, enticed, harbored, transported, provided, obtained and maintained another minor for commercial sex. Finally, the indictment alleges that all defendants conspired to commit sex trafficking between January and August 2023.

Jeffers was arrested on June 27 and made an initial appearance later that day. Jeffers is currently detained pending a detention hearing on July 8. Parker and Primo will appear in U.S. District Court in Boston on July 8. Smalls is awaiting trial in South Carolina and will be arraigned in Boston at a later date. Tyreik Reid will appear in US District Court in South Carolina for a detention hearing on July 10. Tre’sean Reid is currently a fugitive.

If convicted of sex trafficking by force, fraud or coercion, the defendants each face a mandatory minimum of 15 years in prison and a maximum penalty of life in prison. If convicted of sex trafficking of a minor, the defendants face a mandatory minimum of 10 years in prison and a maximum penalty of life in prison. If convicted of conspiracy to commit sex trafficking, the defendants face a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts and Special Agent in Charge Michael J. Krol of the Homeland Security Investigations (HSI) New England Field Office made the announcement.

The Somerset Police Department and HSI New England Field Office are investigating the case.

Assistant U.S. Attorney Elizabeth Riley-Cunniffe for the District of Massachusetts and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.

HSI asks anyone with information about the defendants to contact the HSI New England Field Office at (617) 565-7400. If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1 (888) 373-7888.

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

Defense News: Secretary of the Navy Carlos Del Toro’s Statement on the Upcoming Departure of the Under Secretary of the Navy Erik Raven

Source: United States Navy

“Erik Raven has been a true leader in executing the Department of the Navy’s top priorities. He has demonstrated unfailing commitment to protecting our Nation, strengthening our Navy and Marine Corps Team, and building enduring warfighting advantages. His expertise ensured our naval forces are equipped with the capabilities to deter and, if necessary, prevail decisively in time of war, while also ensuring the welfare of our service members, civilians, and their families.

For the past two years his steadfast leadership has been a driving force for actions that will have long-lasting, positive impacts, not just for the United States but also for our Allies and partners.  His efforts contributed significantly to the AUKUS trilateral security partnership, the largest-ever investment in shipbuilding, improving Guam’s infrastructure to support defense in the INDOPACOM region, as well as improving the Department of Navy’s business operations, optimizing information management and cyber operations while improving efficiency.

We have benefited from Erik’s wise counsel and loyal service to the Department and to our Nation. Our national security, Navy, and Marine Corps are stronger because of his service. We wish him the best in his future endeavors.”

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Former Defense Contractor and His Wife Indicted for Evading U.S. Taxes on Profits from Selling Jet Fuel to U.S. Military

Source: United States Department of Justice Criminal Division

An indictment was unsealed today charging Douglas Edelman, a former defense contractor, and Delphine Le Dain, his wife, with a decades-long scheme to defraud the United States and evade taxes on more than $350 million in income Edelman made as a defense contractor during the United States’ post-9/11 military efforts in Afghanistan and the Middle East. Edelman was arrested on July 3 in Spain based on the U.S. criminal charges. The United States will seek Edelman’s extradition to stand trial in the United States.

According to the indictment, between 2003 and 2020, Edelman allegedly was the 50% owner of Mina Corp. and Red Star Enterprises (Mina/Red Star), a defense contracting business that received more than $7 billion from contracts with the Department of Defense to provide jet fuel to U.S. troops in Afghanistan and the Middle East. Working with Le Dain and several other co-conspirators, Edelman allegedly engaged in a lengthy scheme to hide his profits from Mina/Red Star, including by concealing his income in undisclosed foreign bank accounts, creating false documents and making false statements that Le Dain — who, as a French citizen residing abroad, did not have U.S. tax obligations — founded and owned Mina/Red Star. Le Dain allegedly signed some of the false documents, including those that purported to “gift” Edelman money for certain personal expenses.   

The indictment further alleges that to carry out his scheme, Edelman conveyed this false story of Le Dain’s ownership to arms of the U.S. government, including to a Subcommittee of the House of Representatives during a 2010 Congressional investigation, to the Department of Defense during contract negotiations, to the Internal Revenue Service in a 2015 application to the Offshore Voluntary Disclosure Program, and to the Justice Department in a 2018 presentation. 

Until approximately 2015, Edelman allegedly did not file any U.S. individual tax returns and did not pay any tax on the tens of millions of dollars he was allegedly making each year from Mina/Red Star. In 2015, Edelman allegedly filed false returns for tax years 2007 to 2014, claiming that his business interests, income, and assets belonged to Le Dain. From 2015 to 2020, Edelman allegedly filed false tax returns reporting that his only income was as a consultant, and that he had no interests in any foreign businesses. 

The indictment further alleges that Edelman directed his profits from Mina/Red Star into banks known at the time to shield account holder identities from U.S. authorities, in countries such as Switzerland, the Bahamas, Singapore and United Arab Emirates. He allegedly held the accounts in the name of non-U.S. entities created in countries such as Panama, Belize and the British Virgin Islands. Edelman allegedly always controlled the money in these accounts and used it to fund his other business ventures around the world, including a business selling internet services to U.S. troops and contractors at Kandahar Air Base in Afghanistan, a Mexican fuel infrastructure project and a music television franchise in Eastern Europe. Edelman allegedly also used the money to buy a ski chalet in Austria, a house in Spain, a townhouse in London and multiple yachts — all of which were purchased in the name of nominees.

Edelman and Le Dain are charged with conspiring to defraud the United States and 15 counts of tax evasion. Edelman is also charged with two counts of making false statements to the United States, and 12 counts of willfully violating his foreign bank account reporting obligations, as part of a pattern of unlawful activity.

If convicted, Edelman and Le Dain face up to five years in prison for the conspiracy count, as well as up to five years in prison for each tax evasion count. Edelman also faces up to five years in prison for each false statement count and ten years in prison for each count of willfully violating foreign bank account reporting while engaged in a pattern of unlawful activity involving more than $100,000 per year. They each face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.

IRS Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case, with assistance from His Majesty’s Revenue & Customs of the United Kingdom. Assistance was also provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, United Kingdom and United States. Assistance with the arrest was provided by the U.S. Drug Enforcement Agency and Guardia Civil of Spain.

Senior Litigation Counsel Nanette Davis, Assistant Chief Sarah Ranney and Trial Attorney Ezra Spiro of the Tax Division and Assistant U.S. Attorney Joshua Gold for the District of Columbia 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.

Sweepstakes Operators Plead Guilty to Bank Secrecy Act Violations

Source: United States Department of Justice Criminal Division

Two Missouri men pleaded guilty yesterday to conspiring with bankers to willfully fail to implement appropriate anti-money laundering (AML) controls at a Missouri bank, as required by the Bank Secrecy Act (BSA).

Kevin Brandes, 60, and William Graham, 56, both residents of Kansas City, Missouri, owned and operated multiple sweepstakes businesses and held accounts for those businesses at the Missouri bank. According to court documents, from 2013 to 2019, Brandes and Graham abetted bank officials in failing to implement key components of the bank’s AML program. 

Under the BSA and its implementing regulations, the bank was required to file currency transaction reports (CTR) with the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) for any transaction in currency of more than $10,000. In 2017, at the request of bank officials, Brandes and Graham signed FinCEN CTR Exemption Review Forms that classified their companies as “direct mail advertising” businesses. After receiving the signed exemption forms, the bank failed to file CTRs with FinCEN on transactions involving Brandes’ and Graham’s businesses. Additionally, Brandes’ and Graham’s companies were deemed “high risk” and subject to heightened monitoring under the bank’s policies and procedures. Brandes and Graham understood that by signing the CTR exemption forms the bank would apply less scrutiny to their companies’ transactions.  

Additionally, on or about Oct. 11, 2016, at the direction of two bank officials, Brandes and Graham had an outside attorney sign a legal opinion letter, then sent it to the bank, knowing that it contained false information. Specifically, the letter indicated that one of Brandes’ companies “in over 3 years has not received negative or unwanted legal action by way of regulatory bodies or private suits.” Brandes and Graham knew at the time, however, that this information was false because a state regulatory agency had filed a legal action against the company in question. Brandes and Graham both believed this letter would help the bank circumvent its requirements under the BSA.

Brandes and Graham each pleaded guilty to one count of conspiracy to cause the willful failure to implement and maintain an appropriate anti-money laundering program. Brandes and Graham will be sentenced at a later date and face maximum penalties of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Special Agent in Charge Justin R. Bundy of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Kansas City Region, Special Agent in Charge Thomas F. Murdock of the IRS Criminal Investigation (IRS-CI) St. Louis Field Office, and Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division made the announcement.

FDIC-OIG, IRS-CI, and the FBI are investigating the case.

Trial Attorneys Chad M. Davis and Christopher Ting of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Patrick D. Daly and Matthew N. Sparks for the Western District of Missouri are prosecuting the case.

MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

Defense News: CNO Delivers the Intrepid Salute to Freedom Gala Keynote Address

Source: United States Navy

Good evening, everyone! Distinguished guests, and to all of my Navy, Marine Corps, and Coast Guard teammates here, although I think I also need to recognize our Army, Coast Guard, Navy, Marine Corps teammates – maybe even Space Force and Air Force from the Color Guard. So, thank you very much Color Guard.

It really is a pleasure to be here with all of you tonight to celebrate New York’s Fleet Week, to celebrate our Sailors, Marines, and Coast Guardsmen, all of our Joint Force teammates here tonight, and celebrate the Navy’s long and proud relationship with the City of New York – one of the most important and historic cities in our great Nation.

Before I begin my remarks, I’d really like to take a moment to recognize Medal of Honor Recipient Jack Jacobs who I just had the privilege to meet for his “gallantry in action at the risk of his life above and beyond the call of duty” while serving in Vietnam in 1968. Thank you, Jack for all you have done.

I would also like to thank the Intrepid Museum Board of Trustees for preserving our Naval heritage by maintaining this historic ship as a living memorial to the tens of thousands of Sailors and Marines who served our Nation onboard. I’d also like to thank the incredible staff of this museum for telling our Navy story through the lens of this incredible warship that earned the name, as you already heard tonight, of “the Fighting I” – that survived five kamikaze attacks, an aerial torpedo, and served in multiple wars: World War II, the Vietnam War, and the Cold War.

Like the crew of the Intrepid who worked tirelessly to ensure the integrity of this ship, each of you on this team, have worked hard to tell the millions of American people that visit the “Fighting I” each year the story of her crew’s service with honor, courage, and commitment. For that, I am very grateful.  And I’d like everyone to join me in a round of applause to the team that does this every single day – that’s Al and the Representatives of the Intrepid Former Crewmembers Association, and for Mel and the USS Intrepid Board of Trustees, and again, to all the staff – thank you.

Ladies and Gentlemen, I am truly honored to be here, and I am very humbled to receive the Intrepid Freedom Award this evening. Forty-two years ago, as a freshman at Northwestern University, I signed up for the NROTC program with the allure of free textbooks, 100 dollars a month, and the chance to win a scholarship. At the time, I planned to serve my minimum four-year commitment, get out and then follow my dream, which was to be a journalist reporting all around the world, but especially in the Middle East. But as you can see my life took me on a slightly different path.  

And today I’m really honored to serve as the 33rd Chief of Naval Operations, leading an amazing team of over six-hundred thousand active and reserve Sailors and Navy Civilians. And I’m honored to receive an award that trailblazers before me, like Madeline Albright and Margaret Thatcher, have also received. But like them, I owe this award and really my every success, to the great Sailors I’ve had the opportunity to serve with over these many years.  

So, tonight I want to talk a little bit about those Sailors and the role they play in underwriting this city’s and our Nation’s security and prosperity. I could think of no better occasion to do that than tonight, during fleet week, and in this venue, and in this city.

So, you all know that New York City has a long history as a Navy town, even before the beginnings of our great Nation. In 1524, Portuguese explorer Giovanni Verrazano sailed westward in search of the new world. Following his first sighting of land off the coast of Carolina he sailed north and would eventually encounter a very large opening that he believed to be a lake but was in fact a river – the Hudson River.

Little did he know that the narrows he sailed past would end up bearing his name and be the sea-based-way to the world’s largest and most important port in the 20th Century. In the days of sail and steam, and up through the 1960s, ships coming into New York Harbor from the Narrows would steer north up to the mouth of the East River to the piers of Brooklyn and to the piers of the East and West sides of Manhattan, one of which we are moored to now.

And for those of you that don’t know, the Brooklyn Bridge – the world’s first steel-wire suspension bridge – was built not for looks, although beautiful she is, but to connect these Brooklyn piers with these Manhattan piers, for ease of trade and ease of movement. While I could go on about the commercial importance of New York’s harbors, let me instead talk about this city’s contributions to our Navy.

Not too far from here, the New York Navy Yard, or Brooklyn Navy Yard, as you New Yorkers called it, operated for 165 years, building 160 ships that included the Civil War era ironclad USS Monitor and the historic World War II battleships USS Arizona and USS Missouri.

During World War II the Brooklyn Navy Yard would be used as the staging point for people and equipment for the Allied war effort in Europe, earning the nickname the “Can-Do-Shipyard” for repairing 5,000 American and Allied battle-damaged warships.

Even after the war, this shipyard would become New York’s largest single industrial employer, employing 70,000 people at its peak until its closing in 1966.

And while this city’s commercial importance would wane, the city was born again as the global financial capital of the world and the heart of our Nation’s economy, but still reliant on the sea, albeit in a different way. And although bulk carriers are no longer transiting this city’s harbors, they’ve been replaced by billions of international communications and trillions of dollars in financial transactions that stem from this city and transit the vast expanse of our oceans each day, not on the surface, but below it though undersea cables.

This global network of undersea cables provides the high-bandwidth connections needed for a wide range of activities that are vital for our modern society. And like the rest of our Nation, this city must have the uninterrupted flow of these communications and financial transactions for our stability and economic prosperity.

Ladies and gentlemen, it’s your Navy-Marine Corps team ensures the safety and security of this city’s financial system and all of its services. It also ensures that the goods that flow to our other ports like Newark, Baltimore, and Los Angeles get there safely, so they can reach this city’s stores and provide us the goods we need.

It’s clear, the United States is and always has been a maritime nation. Our security and prosperity rely on access to the sea. Your United States Navy preserves this access, which not only provides 90 percent of global trade, but generates 5.4 trillion dollars in annual commerce and supports 31 million American jobs. This has been your Navy-Marine Corp team’s mission since our Nation’s creation, and it continues to be so, even as our Nation finds itself at an inflection point in history – competing with the People’s Republic of China, Russia, Iran, North Korea, and Violent Extremist Organizations all of which have the potential to negatively impact our Nation’s security.

There’s not a day that goes by that doesn’t show the great work of our Navy on the world stage. Our Nation is a beacon of hope and democracy all around the world and our Navy shines that light brightly. From the Western Pacific to the Eastern Mediterranean and from the Red Sea to the Artic, our Sailors are operating forward to preserve the peace, respond in crisis, and are standing ready to win decisively in war, if called to do so.

A few weeks ago, I visited Sailors onboard the ship that Mel just talked about, the USS Carney, and I got to welcome her crew home from their historic deployment to the Middle East. In their seven months at sea, the Carney destroyed Houthi-launched weapons, including land attack cruise missiles, anti-ship ballistic missiles, and unmanned systems under the banner of the US-led Operation Prosperity Guardian, a defensive coalition of more than 20 nations that is upholding the rules-based international order and providing maritime security in the Red Sea and the Gulf of Aden.

They also launched two defensive strikes against Houthi targets in Yemen degrading and diminishing Houthi capability to continue these attacks. They also rendered assistance to a merchant ship, the Swan Atlantic, that was struck by one of those Houthi missiles. And then, when they were sort of on their way home from the Eastern Mediterranean, they intercepted Iranian drones and Iranian-launched medium-range ballistic missile that were launched towards Israel – demonstrating our long-standing security cooperation relationship not only with Israel, but with other Allies and partners across the region.

And this is pretty amazing, in total, they conducted 51 engagements, saved countless lives, ensured the free flow of commerce, and stood up for that rules-based international order and the values that we hold dear. And that’s just one ship in one area of the world.

With an average of 110 ships and 70,000 Sailors and Marines deployed at sea on any given day the Navy-Marine Corps team is delivering power for peace, deterring potential adversaries, and again standing ready to fight and win our Nation’s wars. No other Navy in the world operates at this scale, no other Navy in the world could build, train, deploy, and sustain such a lethal, globally deployed, combat-credible force at the scale, tempo, and pace that we do.

Ladies and gentlemen, just as the “Fighting I” serves to tell the Navy story, I ask that you too go out and share the stories of the USS Intrepid, the USS Carney, the Brooklyn Shipyard, and perhaps even, the USS Bataan that’s right across the pier from us, in your own spheres of influence.

Help me tell the American people about the value proposition of your Navy, about all we do and how your Navy plays an outsized role in ensuring America’s economic prosperity and our Nation’s security. Help me connect the people to our maritime heritage, so we can honor, recognize, and celebrate those generations of Sailors, Marines, and Coast Guardsmen who have gone before us, onboard this ship, and others like her. And finally, help me inspire our next generation of Sailors, Marines, and Coast Guardsmen to pursue a career in our Nation’s Sea services – either in uniform, or as a civilian, or as a shipbuilder, or in research, or in policy. 

So, I really thank you for all the support that you provide to our Sea Services every single day. It really makes a difference. Thank you for this award and the opportunity to recognize our Sailors, and for my opportunity to be here with you tonight. I hope you all enjoy Fleet Week and the chance to meet our amazing Sailors, Marines, and Coast Guardsmen. Thank you very much, and I hope you have a good night.