Category: US Department of Justice

Source: United States Department of Justice

A citizen of Belarus and lawful permanent resident of the United States has been indicted for allegedly smuggling goods from the United States into Russia without a license.

Kirill Gordei, 34, of Hallandale, Florida, was indicted on one count of conspiracy to commit offenses against the United States; one count of smuggling goods from the United States; and one count of export of a spectrometer, which is a commerce control item. Gordei was arrested on June 30 in Florida and made an initial appearance in the Southern District of Florida today. He will appear in federal court in Boston at a later date.

“As alleged, Gordei defrauded U.S. government export regulators and smuggled advanced scientific technology to Russian customers, placing personal profit over national security,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will use every available tool to disrupt illicit supply chains used to illegally funnel sophisticated technologies to Russia and other hostile powers.”

“Freight forwarders play an outsized role in the export of items overseas and, accordingly, are expected to help uphold the law rather than subvert it,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod. “Here, Kirill Gordei — the president of a freight forwarding company — is alleged to have willfully evaded restrictions designed to degrade the Russian war machine by obfuscating the value and ultimate destination of a mass spectrometer.”

“By allegedly smuggling sensitive technology to Russia, Mr. Gordei undermined the critical framework established to protect national security,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This case highlights the importance of enforcing export controls, especially regarding sensitive items on the Controlled Commerce List, which include technologies vital to scientific and industrial advancement. Our office will prosecute those who attempt to circumvent U.S. laws for personal or commercial gain, particularly when such actions have potential implications for global security.”

According to court documents, Gordei is the President of Apelsin Logistics (Apelsin), a freight forwarding company, located in Hallandale Beach, Florida. Apelsin also has an address in Russia and two websites, both of which are registered and hosted in Russia.

According to the indictment, on or about Aug. 11, 2023, Gordei allegedly falsely claimed that he was shipping an Orbitrap Exploris GC 240 Mass Spectrometer – an item that delivers high data quality and versatility to accelerate scientific discovery for academic and industry research and government and omics laboratories – to Uzbekistan when it was, in fact, destined for Russia.

Since Russia’s invasion of Ukraine on Feb. 24, 2022, a series of stringent export controls were implemented that restrict Russia’s access to the technologies and other items that it needs to sustain its attack on Ukraine. As of April 8, 2022, license requirements for exports, reexports and transfers to or within Russia were expanded to cover the most sensitive items subject to controls on a Controlled Commerce List. The spectrometer, valued at over $600,000, was on the Controlled Commerce List and required a license from the Bureau of Industry and Security (BIS) to export to Russia.

If convicted, Gordei faces a maximum penalty of five years in prison for the conspiracy charge; up to 20 years in prison, five years of supervised release and a $250,000 fine for the unlawful exports charge; and up to 10 years in prison, three years of supervised release and a $250,000 fine for smuggling goods from the United States. A U.S. district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Commerce Department’s BIS is investigating the case. U.S. Customs and Border Protection, the U.S. Marshals Service and Transportation Security Administration provided valuable assistance.

Assistant U.S. Attorney Laura J. Kaplan for the District of Massachusetts is prosecuting the case with assistance from Trial Attorney Christopher Magnani of the National Security Division’s Counterintelligence and Export Control Section.

This action was coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General of the National Security Division and Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. government to enhance the criminal and administrative enforcement of export control laws.

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

Source: United States Department of Justice

A Rhode Island woman was arraigned today following indictment on June 17, by a federal grand jury on charges of mail fraud and conspiracy for operating a direct-mail sweepstakes scheme that defrauded seniors and other vulnerable individuals across the country out of more than $10 million dollars.

According to court documents, Megan E. Shine, 47, of Warwick, utilized the U.S. Mail to engage in a predatory mail fraud scheme that duped the elderly and other vulnerable individuals into sending payments, usually between $20 and $30 dollars, using mailings that falsely led recipients to believe they were entitled to cash prizes or other valuable items or benefits. Many victims reported being contacted multiple times and sending multiple payments. The scheme was allegedly perpetrated through businesses Shine created and operated in Rhode Island, including Lucky Dog LLC, doing business as Premium Ops & Incentives, and Destiny Merchandise LLC, doing business as Independent Catalog Services.

“Mass mail fraud schemes defraud elderly and vulnerable consumers out of millions of dollars every year,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department’s Consumer Protection Branch and its law enforcement partners are committed to vigorously pursuing all individuals who prey on vulnerable and elderly victims through these types of fraudulent schemes.”

“Preying on the hopes of elderly and vulnerable victims for profit, and using fraudulent mailings to persuade them to part with their hard-earned money takes a terrible toll- financially and mentally,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Working with our partners at the Department’s Consumer Protection Branch, the Postal Inspection Service and federal, state and local law enforcement, we are determined to ensure that those who seek to profit from fraud are held accountable.”

According to the indictment, Shine mailed deceptive solicitations that led recipients to believe they had been individually pre-selected or verified and entitled to claim a large amount of money in a lottery or entitled to receive a valuable item. In the mailings (often personalized with the name of the recipient to bolster their apparent authenticity), recipients were instructed to send money, frequently by a deadline, to a post office box in Providence for the “processing” or “handling” of their purported winnings. The mailings were printed on official-looking or certificate paper, frequently carried what appeared to be the seals of governments or government agencies, and frequently contained other language and details designed to make them appear official or legitimate, including bar codes, document control numbers, printing that appears to be rubber stamped, such as the phrase “authorized document,” highlighted text, bank-check style typeface and formatting, as well as identification and other codes. In reality, all of the mailings were identical (apart from the name and address of the recipient).

The solicitations contained text and graphics that created a false overall impression that the recipients were already winners of substantial awards, often totaling millions of dollars. In reality, recipients had not won a prize. Instead, according to the indictment, Shine sent victims a booklet containing publicly available sweepstakes rules or a small and inexpensive piece of jewelry.

Shine is charged with four counts of mail fraud and one count of conspiracy. If convicted, Shine faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The United States Postal Inspection Service is investigating the case.

Trial Attorneys Charles Dunn, Ann Entwistle and Colin Trundle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Denise M. Barton and Peter I. Roklan for the District of Rhode Island are prosecuting the case.

If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

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

Source: United States Department of Justice Criminal Division

The Justice Department announced today a settlement agreement to resolve the department’s investigation into race and disability discrimination in Wichita Public Schools, Kansas’ largest school district. Under the settlement, the district will revise practices to prevent discrimination in discipline and referrals of students to law enforcement, end the use of seclusion, reform its restraint practices and improve services to students with disabilities in certain schools and classrooms. 

The department’s investigation revealed, among other things, that the district’s Black students were disciplined more frequently and more severely than white students who engaged in similar conduct and had similar backgrounds and disciplinary histories. This pattern was most evident when it came to subjective offenses such as insubordination, and was especially stark when it came to discipline of Black girls, whose behavior was repeatedly characterized using stereotypical terms like “attitude” or “drama.” In addition, the investigation concluded that the district inappropriately and repeatedly secluded and restrained students with disabilities and relegated those with the greatest behavioral needs to inferior facilities with inadequate services and support.

“Black students inside our nation’s public schools should not have to face discipline or a referral to law enforcement because of their race. And students with disabilities should not have to experience the trauma of seclusion or improper restraint,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Schools in our communities should not be a place of fear or mistrust. This agreement upholds our core principles of ending the school to prison pipeline and protecting our most vulnerable students against all forms of discrimination and segregation.”

The school district fully cooperated with the investigation, which was conducted under Titles IV and VI of the Civil Rights Act of 1964, Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act. The department’s review uncovered discriminatory treatment of Black students in the administration of discipline at multiple schools, with Black girls facing especially high levels of exclusion for perceived insubordination and for dress code violations at certain middle schools. The department’s investigation also found evidence of racial discrimination in referrals to law enforcement and a pattern of security officers responding to routine discipline matters and escalating those incidents, resulting in the unnecessary referral of Black students to law enforcement for routine or minor misbehavior. 

In addition, the department’s investigation concluded that the district inappropriately and repeatedly secluded and restrained students with disabilities, including for punitive reasons or in response to noncompliance with school rules and staff directives. During the period covered by the investigation, students with disabilities received more than 98% of the district’s roughly 3,000 restraints and seclusions. At least 44 students experienced 20 or more restraints and seclusions during the period covered by the investigation and one student was restrained or secluded at least 144 times, including 99 seclusions lasting over 15 hours in total. In the district’s schools and classrooms for students with disabilities — where the vast majority of seclusions and restraints occurred — the district either lacked student behavior interventions or failed to implement them and ensure their effectiveness. When the department visited the district’s special schools for students with behavioral disabilities, it found inferior facilities devoid of furniture, educational equipment and the kinds of decor commonly found in schools, and staff who could not meet the needs of students.

Under the agreement, the district will, among other steps:

• Develop a district-wide code of conduct, standardize dress code policies and create a behavior intervention protocol to ensure the nondiscriminatory administration of discipline and prohibit unnecessary exclusion of students from the school environment;
• Create a system of district-level monitoring of schools’ administration of discipline to ensure nondiscrimination;
• Ensure that school security and law enforcement only become involved in student misbehavior in appropriate circumstances and thereby avoid criminalizing routine school discipline matters;
• Eliminate the use of seclusion;
• Restrain students only when their behavior poses an imminent danger of serious physical harm to the student or another person, properly document all restraints and provide students who are restrained or secluded with required interventions;
• Ensure that only professionals with the requisite expertise and training run and staff specialized schools for students with disabilities;
• Provide counseling and compensatory education to students who have been repeatedly secluded; and
• Create an office to monitor the district’s restraint practices (and seclusion until it is eliminated) to ensure compliance with the agreement and assist district staff in providing required interventions and supports.

Today is the 60th anniversary of the Civil Rights Act of 1964. Enforcement of Titles IV and VI of the Civil Rights Act to protect students from race discrimination in school is a priority of the Civil Rights Division. In addition, this agreement is the most recent in a series of settlements under Title II of the ADA to address and prevent unlawful seclusion and restraint of students with disabilities in public schools. To learn more about the section’s work under the ADA to combat improper seclusion in schools, visit www.justice.gov/schoolseclusion.

Additional information about the Civil Rights Division is available at www.justice.gov/crt, and additional information about the Civil Rights Division’s Educational Opportunities Section’s work is available at www.justice.gov/crt/educational-opportunities-section.

Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.

View the cover letter sent to Wichita Public Schools in English here.

View the cover letter sent to Wichita Public Schools in Spanish here.

View the summary of the settlement agreement in English here.

View the summary of the settlement agreement in Spanish here.

Source: United States Department of Justice Criminal Division

The Justice Department issued the following statement today from Attorney General Merrick B. Garland on the 60th anniversary of the Civil Rights Act of 1964:

“The Civil Rights Act of 1964, signed into law 60 years ago today, gave the Justice Department some of its most important tools to protect Americans from discrimination, including at school, in the workplace, in voting, and in places of public accommodation.

Today, we remember the generations of Americans who risked their lives – and the many who sacrificed their lives – in the struggle to claim the rights guaranteed to Black Americans, and to all Americans, under the Constitution.

We recognize the continued dedication of our partners in the civil rights community who are the inheritors of that legacy.

And we honor the public servants across the Justice Department who have worked to fulfill the promise of the Civil Rights Act over the past six decades and continue to do so today.

Before signing the Civil Rights Act of 1964 into law 60 years ago, President Lyndon Baines Johnson addressed the American people, saying, ‘the Civil Rights Act is a challenge to all of us to work in our communities and our States, in our homes and in our hearts, to eliminate the last vestiges of injustice in our beloved country.’

Today, as we mark the 60th anniversary of the Civil Rights Act, the Justice Department renews our commitment to meeting that challenge.”

Source: United States Department of Justice Criminal Division

A California woman pleaded guilty today to devising a multi-year scheme to defraud the U.S. government by submitting fake invoices for supplies that were never purchased and converting the stolen funds for her personal use.

According to court documents, Zelene Charles, 42, of Monterey, a then-civilian employee of the Department of Defense, at the Defense Language Institute in Monterey, California, perpetrated a scheme to defraud the U.S. government by creating fake purchase requests and invoices for government purchases from both fictitious and legitimate business entities. The items listed in these invoices were never actually purchased or received by the government. Between December 2016 and April 2020, Charles placed approximately 185 fraudulent charges, causing a total loss to the government of $624,250. To conceal that she was the recipient of the stolen funds, Charles frequently renamed the business names associated with intermediary accounts and, in total, used at least 78 different account names.

Charles pleaded guilty to wire fraud and theft of government money and property. She faces a maximum penalty of 20 years in prison for the wire fraud charge and 10 years in prison for the theft charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Charles also agreed to pay $624,500 in restitution and forfeit numerous stolen government computers and tablets as part of her plea.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Ismail J. Ramsey for the Northern District of California; Special Agent in Charge Bryan Denny of the Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Keith K. Kelly of the Department of the Army Criminal Investigation Division’s (Army-CID) Fraud Field Office; Special Agent in Charge Shawn Dionida of the Department of Agriculture Office of Inspector General (USDA-OIG) Western Region; and Special Agent in Charge Terry Pfeifer of the General Services Administration Office of Inspector General (GSA-OIG) Western Division made the announcement.

The DCIS Western Field Office, Army-CID Fraud Field Office, USDA-OIG Western Region, and GSA-OIG Western Division are investigating the case.

Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Anne C. Hsieh for the Northern District of California are prosecuting the case.