Defense News: NPS’ Warfare Innovation Continuum Drives Students’ Concept Generation

Source: United States Navy

Leveraging classroom work in wargaming, modeling, simulation and red teaming, each WIC cycle supports the advancement of naval concepts, the assessment of new technologies, and the development of new tactics, all while enhancing NPS students’ educational experiences and sharpening their combat skills.

This year’s WIC campaign of analysis, entitled “Integrated Naval Campaigning,” was a resounding success, according to retired U.S. Navy Capt. Jeff Kline, NWSI WIC Director and Operations Research Professor of Practice at NPS.

“At the CNO’s Futures Wargame, I briefed the Chief of Naval Operations and other Navy leadership on an alternative force design specifically for sea control that was based on our campaign of analysis during the WIC,” Kline said. “The alternative fleet took ideas from the workshops we held, from our joint campaign analysis class and from a wargame we just completed, all of which dealt with integrated naval campaigning. The CNO’s staff is now looking at an alternative force design to their program forces. I don’t think you can get a better mark of success than that.”

He added, “As an educator, however, I would say our real product here is at least 200 student officers who now think differently about how they would fight with the fleet and how they build the fleet. The WIC’s real success is that we integrate it with NPS’ educational mission.”

The Navy’s Warfare Development Division (OPNAV N72), which is responsible for the development of Navy strategy and concepts that are aligned with emerging security trends, higher-level guidance, and the tenets of the Navy’s national security role, originally requested NWSI explore the topic of integrated naval campaigning.

From the amphibious operations of World War II to the counter-piracy operations of today, integrated naval campaigning – a series of linked tactical operations in, and from, the maritime domain conducted by joint, inter-organizational and allied forces – has played a critical role in achieving the nation’s strategic and operational objectives.

The dawn of the robotics age of warfare, however, has brought new challenges and opportunities for new concepts across all warfighting domains.

For the Fiscal Year (FY) 2024 WIC, NWSI specifically set out to answer the design challenge: “How might the confluence of new technologies provide opportunities for new operational concepts in executing integrated naval campaigning across the full spectrum of conflict?”

Three courses were conducted over the FY 2023 Summer Quarter to initially define the problem set, each addressing a unique aspect of the theme: Joint Campaign Analysis, Information Warfare Systems Engineering and Networked Autonomous and Unmanned Systems.

These inputs provided critical information for the kickoff of the FY 2024 WIC, the 14th annual WIC Workshop, held Sept. 18-21, 2023. This intense concept generation workshop employed Warfighter Centered Design methods to explore the art of the possible of integrated naval campaigning along eight lines of effort: 21st Century Amphibious Operations, Maritime Gray Zone Operations, Coalition Operations, Undersea Operations, Contested Logistics, Future Vertical Take-Off and Landing Operations, Advanced Mining Operations and Long-Range Fires.

Each of these topics was taken up by a team of NPS students and early career professionals from across the fleet, Navy laboratories, industry and academia in the context of a notional future conflict scenario.

“We generate a future fictional scenario every year to tether our work to the workshop and WIC throughout the year,” said Lyla Englehorn, NWSI warfighting concepts lead. “This larger worldwide scenario provides our students and research faculty the relevance of what they’re trying to do, whether it’s viscous fluid in a robotics arm or conceiving a new strategy for Southeast Asia.”

The ideas and concepts the teams developed were then vetted by government, military, industry and academic leaders, as summarized in NWSI’s Final Report on the 2023 WIC Workshop.

“With over 100 individuals attending from warfare labs, industry, warfare development centers, fleet staffs, the Pentagon, and our own faculty and students, we obtained a diverse set of technical, engineering, and operational talent to generate concepts for employing emerging and existing technologies in operational environments,” Kline said. “The workshop then serves as the cornerstone of events that occur across the NPS campus throughout the remainder of the year.”

Working together with NPS’ Office of Research and Innovation (OR&I) under the operating concept of the Naval Innovation Center, NWSI leverages the workshop to cultivate a vibrant innovation ecosystem at NPS.

In addition to follow-on wargaming and joint analysis courses which dealt with specific questions associated with integrated naval campaigning, the concepts generated in the workshop informed research through the Naval Innovation Exchange (NIX), a networked organization under OR&I that coordinates teams of faculty, students and partners working in research “sprints.” Associated technologies were also experimented with at the quarterly Joint Interagency Field Experimentation (JIFX) events.

“We then have larger research projects that in some way inform the larger topic of integrated naval campaigning,” Kline noted, including 2024 Total Ship Systems Engineering Design, various CRUSER innovation and research projects, Force Design for Sea Control Fleet Campaign of Analysis, NPS research and innovation groups, as well as individual theses.

Kline added that the concepts and follow-on work are also carried beyond NPS, including across the fleet, OPNAV sections, the Marine Corps Warfighting Lab (MCWL) and Naval Surface Warfare Centers (NSWC).

“The central theme here is that we’re thought leaders; we lead the thought processes,” Kline said. “We provide the initial seeds and concepts in order to inform these organizations’ official concept developments and campaigns of learning for those developments.”

The WIC’s primary importance is that it empowers NPS students and early career engineers at the warfighting labs to realize that their bottom-up driven ideas are valid and potentially as impactful or influential as those being directed top-down, according to retired Marine Corps Col. Randy Pugh, NPS Vice Provost for Warfare Studies and director of NWSI.

Being able to enter a creative space and think unconstrained about the subject at hand not only generates new ideas, but also creates a culture of constant intellectual curiosity and allows people to think about things critically and propose new ways of doing things.

“As the Marines like to say, “Good ideas know no rank,” he said. “The WIC both directly contributes to the problem set and changes the culture so that we’re not just trying to predict the future and ‘skating to where the puck is going to be,’ but we’re also creating leaders that are adaptive and who, when faced with something they hadn’t predicted or expected, can quickly say, ‘Hey, let’s get together and talk about this: where are we, where do we want to be, and what are some of the things we might try in order to do that?’”

“Even if there was no direct result of WIC – some new capability, concept or policy – the ultimate product is the people that participated in it,” Pugh added.

For the Systems Engineering Analysis (SEA) 33 capstone team, that product was 22 members from multiple NPS degree programs, as well as students from the National University of Singapore’s Temasek Defence Systems Institute (TDSI). Members included officers from the U.S. Navy, U.S. Army, Brazilian Air Force, Taiwanese Navy, Israeli Defense Force, and Singapore Army, as well as U.S. and Singapore Navy civilians.

The team, tasked by the Warfare Integration Directorate for the Office of the Chief Naval Operations (OPNAV N9I) with exploring the Advanced Mining Operations line of effort, was led by Navy Cmdr. Erik Kowalski, a career pilot of the MH-53E “Sea Dragon,” the Navy’s dedicated Airborne Mine Countermeasures (AMCM) platform.

“We started out looking at next-generation, innovative concepts in mining to help feed some of our ideas of potential directions to go,” Kowalski said. “For the first (Fall) quarter, we focused on framing the problem, understanding how best to approach it, coming up with some basic concepts of operations to downselect from, and then we built an initial functional architecture that we thought we’d need.”

The team refined these at the WIC Workshop into several formal concepts, which evolved into the design and analysis of self-mobile mines.

The incorporation of self-mobility into sea mines can potentially provide numerous benefits over traditional, static mines that could not only improve lethality and counter-mobility effects, but could also aid in mine delivery, minefield flexibility, tactical employment and minelayer safety.

“Traditional mines normally sit on the sea floor and don’t move, so if an enemy comes in and clears a path, that path is clear until you reseed it or something else happens,” Kowalski explained. “The idea behind mobile mines is that the minefield is smart enough that once the minesweepers have come in and cleared that path, the other mines that are in the minefield can then move in that path and essentially keep reseeding it themselves.”

Over the Winter Quarter, the team focused on the physical architecture of self-mobile mines and developing concepts of operations of scenarios that they could test against in simulations. Finally, in the Spring Quarter, they concentrated on the modeling, simulation and data analysis using the Navy’s Modeling and Simulation Toolbox (MAST) software. They also performed a cost-benefit analysis and feasibility study for the design.

The team presented their final brief and report to OPNAV N9I in early June, where it will specifically inform them in their work on advanced mining and offensive mining capabilities.

The primary take-away, Kowalski said, is that with current technologies, the design is entirely feasible.

“We could build self-mobile mines right now,” he said. “Not only would you get the advantages from them being able to move and close gaps based on the patterns of life of the enemy, but also the mobility itself would give us a lot of delivery options that traditional mines don’t necessarily provide.”

“If mines could navigate themselves, really you just have to be able to get the mines in the water close enough and they can do all the hard work to get into the field and position themselves,” he added.

The 21st Century Amphibious Operations line of effort was conducted to support the Marine Corps’ foundational concept development set forth in its Force Design modernization effort.

The team, led by Pugh, consisted of four NPS students, two NPS faculty, and eight guests from warfare centers, MCWL, a systems command and industry.

Meeting up at the WIC Workshop, they were presented with the hypothesis that “in 2040-45, amphibious forces will support maritime campaigning by controlling key maritime terrain.”

“We set out to generate an understanding of the challenges and ideas about how we might close the gap between the current state and the desired future state, given disruptive emerging technologies, future missions and future adversaries,” Pugh said.

The development of adversaries’ long-range intelligence, surveillance and reconnaissance (ISR) capabilities and long-range precision weapons systems, for example, call into question the very survivability of current means of conducting amphibious operations.

“In a nutshell, how are we going to get Marines from ship to shore? How are we ensuring the survivability of the Navy-Marine Corps team holistically, whether that is at sea or after we get the Marines to shore?” said Marine Corps Capt. Karl Flynn, an infantry officer and recent graduate from NPS in computer science.

Flynn and two fellow Marines – Capt. Harrison Rashley, also an infantry officer and computer science student, and Maj. Steven Anderson, a reconnaissance officer and space systems operations student – brought a wealth of recent operational experience to the table at the WIC Workshop.

“We all have fairly significant experience in the Pacific and understand the greater sense of urgency and have a bigger respect for the holistic problem because we’ve lived it, especially deploying on a (Marine Expeditionary Unit) with the Chinese following you in and out of port,” Rashley said.

“Being involved with the Workshop to help inform future amphibious concepts was good because we were able to bring our current experience and think about the things that we want to have in the future, and then also be challenged by people that are in industry and the architectural engineers to tell us whether or not this is actually possible,” he continued.

Over the course of the workshop, the team generated two innovative concepts to support future amphibious operations: a Highly Distributable Rapid Assault (HiDRA) family of ship-to-shore connectors supporting transport and landing force defense, and a network of autonomous surface, subsurface and aerial vehicles (UxVs).

“Our idea for HiDRA was basically to take all the supplies that we needed for conducting amphibious operations and, instead of putting them all in a big gray-hull amphibious ship, putting them all in small transports that are either hard to detect or really, really fast and then infiltrating the supplies with unmanned underwater vehicles that move to whatever landing site we’ve selected and loiter on the bottom waiting for the landing force,” explained Flynn.

Wing-in-ground effect craft, capable of a speed of a couple of hundred knots, would then proceed to the objective to deliver the landing force, which could immediately move out without having to wait for follow-on supplies.

Separately, the UxV network would assist the Marines in getting to shore and engaging the enemy.

“We were thinking of an architecture that supports getting amphibious ships to a point where they can safely drop things off,” Rashley said. “Essentially, you’d have a sensing force and a shooting force arrayed in time and space that allows your decision-makers to make a decision based on the enemy’s location and actions.”

“The network would be connected by different nodes that would allow us to maintain constant communication,” he continued. “The end state would be that the full formation is more survivable, and we can get it to where we need it to be.”

Since September, research has been led by members of MCWL and Naval Surface Warfare Center Carderock, which continues to refine concepts that support 21st Century Amphibious Operations.

NPS students conducted a follow-on wargame to provide insights about the potential relationships between stand-in and amphibious forces. The primary lesson learned from that event was that there does not appear to be a “one size fits all” command and control (C2) template for stand-in forces operating with distinctly amphibious forces. The wargame deepened MCWL’s understanding of how certain C2 relationships are more suitable in given situations.

In addition to conducting service-level amphibious operations, MCWL continued to broaden stakeholder engagement briefs and held a tabletop exercise at the Marine Corps Combat Development Command with liaison officers from the United Kingdom, France, Germany, Netherlands, Spain, Italy, Israel, Japan, the Republic of Korea, Singapore, Australia and Canada.

MCWL also hosted a wargame in early March to explore further components of 21st Century Amphibious Operations. The team is using the results of the wargame to create a foundational model that they can use to assess trade-offs of different ship capabilities and their impact on operational effectiveness in potential excursions.

Some proposed details to the concept’s requirements were discussed during the WIC Workshop, according to Matt Van Echo, senior military operations analyst at the Future Concepts and Operational Planning section of MCWL.

“For MCWL Concepts, the WIC Workshop served as a venue to socialize ideas and receive broadly informed feedback,” he said. “In the lifecycle of a concept, this portion of the process is called ‘development’ and involves curating a body of information that validates or invalidates the hypothesis of the concept.”

“The learning generated by the WIC Workshop showed us some opportunities to pursue new ways of approaching amphibious operations with a system of emerging technology like unmanned systems,” Van Echo added.

Building on these results, the 2024 WIC Workshop, scheduled for Sept. 23-26, will focus on challenges to “Non-Permissive Global Sea Control” and related issues essential to the Navy’s wartime mission where control of operational maritime environments is necessary to meet integrated naval and joint campaign objectives.

The year-long theme was requested by OPNAV N72 and will strive to answer the design challenge: “How might emerging technologies, existing capabilities, and new operational force employment create opportunities to enhance the Navy’s ability to deter adversaries, or ensure use of the maritime domain in non-permissive environments?”

The 2024 WIC will cultivate fresh ideas and concepts from multidisciplinary teams from across academia, industry, and the military, both U.S. and international. Ten potential lines of effort have already been identified, including Maritime Domain Awareness (MDA) for Sea Control, Logistics to and in the Weapons Engagement Zone (WEZ), Expeditionary Advanced Base Operations (EABO) for Sea Control, Counter Sea Denial, and Command and Control (C2) for Decision Advantage.

This year’s theme is particularly significant, noted Cmdr. Chris O’Connor, NPS Logistics Chair and NWSI Futures Group coordinator.

“It will inform ongoing fleet design efforts for the U.S. Navy in this era of Great Power competition and rapid technological change,” he said.

Tennessee Man and Company Plead Guilty to Violating The Clean Water Act

Source: United States Department of Justice Criminal Division

On Aug. 20, Christopher Domermuth, 49, and Domermuth Environmental Services LLC (DES), based in Knoxville, Tennessee, both pleaded guilty today to violating the Clean Water Act by knowingly discharging pollutants into a navigable waterway without a permit. Sentencing has been set for Dec. 12 in the U.S. District Court for the Eastern District of Tennessee at Knoxville.

Domermuth faces a maximum penalty of three years in prison, followed by a term of supervised release of up to one year. The parties have recommended to the Court that DES pay a $50,000 fine and be placed on probation for three years.

According to court documents, Domermuth operated DES, which was engaged in the business of processing petroleum-contaminated soil and water in Knoxville. On July 26, 2018, DES workers rolled over a previously exhumed underground storage tank, which spilled a mixture of petroleum and water onto a concrete pad at the facility. DES employees and Domermuth threw absorbent pads into the spilled mixture and then used a portable pump to pump the petroleum-contaminated mixture over a retaining wall at DES. The oily mixture flowed over a neighboring property and into a culvert leading to the Holston River.

“Domermuth Environmental Services and Christopher Domermuth were supposed to be cleaning up contaminated water and soil to protect the environment, but instead caused the discharge of pollutants. These felony guilty pleas demonstrate our commitment to enforcing the Clean Water Act,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.

“Our office is committed to protecting our natural resources in East Tennessee,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “I applaud the collaborative efforts of the federal and state law enforcement agencies that brought these violators to justice.”

The U.S. Environmental Protection Agency Criminal Investigation Division, EPA Office of Inspector General (OIG), Tennessee Valley Authority-OIG, FBI and Tennessee Department of Environment and Conservation investigated the case.

Senior Trial Attorney Matthew T. Morris of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Jeremy S. Dykes for the Eastern District of Tennessee are prosecuting the case.

Clean Harbors Inc. Agrees to Clean Up Devil’s Swamp Lake Superfund Site Near Baton Rouge, Louisiana

Source: United States Department of Justice Criminal Division

Clean Harbors Inc. and two of its subsidiaries, Clean Harbors Baton Rouge LLC and Baton Rouge Disposal LLC, have reached an over $5 million agreement with the Justice Department and Environmental Protection Agency (EPA) to clean up decades-old contamination at the Devil’s Swamp Lake Superfund Site just north of Baton Rouge, Louisiana. 

A complaint filed today along with a proposed consent decree seeks an order requiring the Clean Harbors companies to perform a cleanup of pollution at Devil’s Swamp Lake, pursuant to the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), also known as Superfund. The cleanup is estimated to cost over $3 million. Additionally, the consent decree requires reimbursement of over $2 million in costs incurred by the United States in responding to the contamination at Devil’s Swamp Lake. The companies will also pay the United States for all costs it spends in the future for that purpose.

“The Devil’s Swamp Lake Superfund Site is located in an area that is unfortunately already overburdened by a variety of environmental problems,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This settlement will protect the public from the dangerous chemicals that have been contaminating Devil’s Swamp Lake for decades and bring the community one step closer to reclaiming this and other important natural resources.”

“The people of Louisiana deserve safe, clean natural resources,” said U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana. “This proposed consent decree will ensure that the Devil’s Swamp Lake Superfund Site is appropriately remediated and that the American taxpayers are reimbursed for costs incurred in responding to contamination at that site. I appreciate the hard work of our partners at EPA and at the Justice Department’s Environment and Natural Resources Division toward achieving this settlement.”

“The East Baton Rouge community expects and deserves the full protection of EPA’s cleanup laws and standards. This settlement is a huge step in resolving a decades-long issue for families that experience a higher burden of environmental problems than other areas of the parish,” said Regional Administrator Dr. Earthea Nance of EPA Region 6. “Holding companies accountable and financially responsible for the harms they commit is one of our strongest tools for getting overburdened communities the relief they deserve. I would like to thank our federal partners for their support in ensuring the site is cleaned up and given back to the communities.”

Devil’s Swamp Lake is contaminated with polychlorinated biphenyls (PCBs), which are extremely harmful chemicals that build up in the environment over time and have been linked to cancer. Due in part to the levels of PCBs, Louisiana state agencies have repeatedly issued advisories warning the public not to swim in or eat fish caught in Devil’s Swamp Lake.

The Devil’s Swamp Lake Superfund Site is located in East Baton Rouge Parish, an area with a population that disproportionately suffers from pollution in the water and the air. Ensuring cleanup of hazardous waste at sites such as Devil’s Swamp Lake is an important aspect of a broader fight to achieve environmental justice.

The Environment and Natural Resources Division’s Environmental Enforcement Section is handling the case, in conjunction with EPA.

The complaint and the proposed consent decree were filed with the U.S. District Court for Middle District of Louisiana. The settlement is subject to a public comment period and final court approval. The consent decree is available for viewing on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.

Former Energy Trader for Vitol Inc. Pleads Guilty to International Bribery Scheme

Source: United States Department of Justice Criminal Division

A former energy trader pleaded guilty yesterday for his role in a scheme to bribe Mexican government officials to secure contracts for his then-employer, Vitol Inc. (Vitol), the U.S. affiliate of the largest independent energy trading firm in the world.

According to court documents, Javier Aguilar, 50, of Houston, and his co-conspirators paid approximately $600,000 in bribes to two senior officials at PEMEX Procurement International, Inc. (PPI), a wholly owned affiliate of the Mexican state-owned oil company, Petróleos Mexicanos (PEMEX), in exchange for assistance in winning business for Vitol. 

“Javier Aguilar has now admitted that he bribed foreign officials to win business when he worked as an oil and gas trader at Vitol Inc., using shell companies, fake contracts, sham invoices, and alias email accounts,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Aguilar’s guilty plea yesterday follows his conviction at trial on related charges earlier this year. His illegal conduct netted Vitol hundreds of millions of dollars in contracts, and now he will pay the price.”

“With yesterday’s guilty plea, the defendant admits his role in the widespread corruption of the international commodities market and to casting aside laws and rules that apply to all to unfairly line the pockets of the few,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The actions of the defendant and his co-conspirators, and of those who act similarly, destroy people’s faith in their governments, disadvantage those who play by the rules, undermine confidence in American businesses worldwide, and will not be tolerated by this Office or our law enforcement partners.”

“The Southern District of Texas is ground zero in the fight against foreign bribery and corruption in Latin America,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “My office’s prosecutors — experts on the Foreign Corrupt Practices Act — will continue to bring to justice those who damage the integrity of Texas’s vital energy sector with illegal advantages fueled by greed. This guilty plea begins the process of repairing the damage caused by Aguilar as well as putting on notice those who might seek to emulate him and his cohorts.”

“The Foreign Corrupt Practices Act has been the law of the land, and enforceable worldwide, for decades. Yet unscrupulous businessmen still try to bribe their way to profit,” said Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office. “My message to them is that the charges and penalties you will face are not worth the gain. I want to commend the Criminal Division’s Fraud Section, Money Laundering and Asset Recovery Section, and Office of International Affairs; the U.S. Attorney’s Office for the Eastern District of New York; and the U.S. Attorney’s Office for the Southern District of Texas for their diligence pursuing this case, but especially the agents and analysts who leave no stone unturned in pursuit of FCPA violators.”

Between 2017 and 2020, Aguilar, who was a trader in Vitol’s Houston office, and his co-conspirators paid approximately $600,000 in bribes to two senior officials at PPI to obtain numerous contracts for Vitol to supply hundreds of millions of dollars of ethane to PEMEX. To conceal the scheme, Aguilar and his co-conspirators used a series of fake contracts, sham invoices and shell entities incorporated in Curaçao and Mexico. The defendant and his co-conspirators also used alias email accounts to communicate about the scheme and code words, including “shoes,” “medicine,” “invitations,” and “coffee,” to describe the bribes.

Aguilar pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and to a violation of the Travel Act. The FCPA conspiracy charge, which was brought by a grand jury in the Southern District of Texas, related to conduct that was initially charged in the Eastern District of New York. As part of his guilty plea, Aguilar consented to transfer the Texas case to New York, to consolidate the cases, and to forfeit $7,129,938. The plea follows Aguilar’s related conviction at trial in February 2024 for conspiracy to violate the FCPA, violating the FCPA, and conspiracy to commit money laundering in connection with schemes to bribe Ecuadorian and Mexican officials. He faces a maximum sentence of 20 years’ imprisonment on the money laundering offense and five years’ imprisonment on each of the other offenses. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

In December 2020, Vitol admitted to bribing officials in Ecuador, Mexico, and Brazil in violation of the anti-bribery provisions of the FCPA. Vitol entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York. As a part of the resolution, Vitol agreed to pay a combined $135 million in penalties as part of a coordinated resolution with the Department of Justice, the Commodity Futures Trading Commission, and authorities in Brazil.

Seven of the defendant’s co-conspirators have pleaded guilty for their role in the scheme and are awaiting sentencing. These individuals have agreed to forfeit more than $63 million in connection with this and related schemes.

FBI Miami’s International Corruption Squad investigated the case.

Trial Attorney Clayton P. Solomon and Assistant Chiefs Derek J. Ettinger and Jonathan P. Robell of the Criminal Division’s Fraud Section, Trial Attorney D. Hunter Smith and Deputy Chief Adam J. Schwartz of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorneys Jonathan P. Lax, Matthew R. Galeotti, and Nick M. Axelrod for the Eastern District of New York, and Assistant U.S. Attorney Sherin Daniel and Deputy Chief Suzanne Elmilady for the Southern District of Texas are prosecuting the case. The MLARS Special Financial Investigations Unit and Justice Department’s Office of International Affairs also provided substantial assistance.

The Criminal Division’s 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.

The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in MLARS, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov or https://tips.fbi.gov/.

United States Files Suit Against the Georgia Institute of Technology and Georgia Tech Research Corporation Alleging Cybersecurity Violations

Source: United States Department of Justice Criminal Division

The United States joined a whistleblower suit and filed a complaint-in-intervention against the Georgia Institute of Technology (Georgia Tech) and Georgia Tech Research Corp. (GTRC) asserting claims that those defendants knowingly failed to meet cybersecurity requirements in connection with the Department of Defense (DoD) contracts. GTRC is an affiliate of Georgia Tech that contracts with government agencies for work to be performed at Georgia Tech. The whistleblower suit was initiated by current and former members of Georgia Tech’s Cybersecurity team.

“Government contractors that fail to fully implement required cybersecurity controls jeopardize the confidentiality of sensitive government information,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department’s Civil Cyber-Fraud Initiative was designed to identify such contractors and to hold them accountable.”

Specifically, the lawsuit alleges that until at least February 2020, the Astrolavos Lab at Georgia Tech failed to develop and implement a system security plan, which is required by DoD cybersecurity regulations, that set out the cybersecurity controls that Georgia Tech was required to put in place in the lab. Even when the Astrolavos Lab finally implemented a system security plan in February 2020, the lawsuit alleges that Georgia Tech failed to properly scope that plan to include all covered laptops, desktops, and servers.

Additionally, the lawsuit alleges until December 2021, the Astrolavos lab failed to install, update or run anti-virus or anti-malware tools on desktops, laptops, servers and networks at the lab. Instead, Georgia Tech approved the lab’s refusal to install antivirus software — in violation of both federal cybersecurity requirements and Georgia Tech’s own policies — to satisfy the demands of the professor who headed the lab.

The lawsuit further alleges that in December 2020 Georgia Tech and GTRC submitted a false cybersecurity assessment score to DoD for the Georgia Tech campus. DoD requires contractors to submit summary level scores reflecting the status of their compliance with applicable cybersecurity requirements on covered contracting systems that are used to store or access covered defense information. The submission of this score was a “condition of contract award” for Georgia Tech’s DoD contracts. The lawsuit alleges that the summary level score of 98 for the Georgia Tech campus that Georgia Tech and GTRC reported to DoD in December 2020 was false because (1) Georgia Tech did not actually have a campus-wide IT system and (2) the score was for a “fictitious” or “virtual” environment and did not apply to any covered contracting system at Georgia Tech that could or would ever process, store or transmit covered defense information.

“Cybersecurity compliance by government contractors is critical in safeguarding U.S. information and systems against threats posed by malicious actors,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “For this reason, we expect contractors to abide by cybersecurity requirements in their contracts and grants, regardless of the size or type of the organization or the number of contracts involved. Our office will hold accountable those contractors who ignore cybersecurity rules.”

“Deficiencies in cybersecurity controls pose a significant threat not only to our national security, but also to the safety of the men and women of our armed services who risk their lives daily,” said Special Agent in Charge Darrin K. Jones of the DoD’s Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “As force multipliers, we place a substantial amount of trust in our contractors and expect them to meet the strict standards our service members deserve.”

The whistleblower lawsuit was filed by Christopher Craig and Kyle Koza, who were previously senior members of Georgia Tech’s cybersecurity compliance team, under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and to receive a share of any recovery. The act permits the United States to intervene and take over responsibility for litigating these cases, as it has done here. A defendant who violates the act is subject to liability for three times the government’s losses, plus applicable penalties.   

On Oct. 6, 2021, Deputy Attorney General Lisa Monaco announced the department’s Civil Cyber-Fraud Initiative to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.

Senior Trial Counsel Jake M. Shields of the Justice Department’s Civil Division and Assistant U.S. Attorneys Adam D. Nugent and Melanie D. Hendry for the Northern District of Georgia are handling the matter.

The case is captioned United States ex rel. Craig v. Georgia Tech Research Corp, et al., No. 1:22-cv-02698 (N.D. Ga.). Investigative support is being provided by the DoD Office of Inspector General, Defense Criminal Investigative Service, Air Force Office of Special Investigations and Air Force Material Command.

The claims alleged by the United States are allegations only. There has been no determination of liability.