Category: US Department of Justice

Source: United States Department of Justice Criminal Division

The Justice Department, FBI, U.S. Postal Inspection Service (USPIS), and other federal law enforcement agencies announced today the completion of a three-month campaign that disrupted networks used by foreign fraudsters to obtain fraud proceeds. Multiple law enforcement actions addressed conduct by individuals sometimes referred to as “money mules,” who have been providing critical services to fraudsters by receiving money from fraud victims and forwarding the fraud proceeds to the perpetrators (many of whom are based overseas). Some individuals knew they were facilitating fraud, while others first interacted with fraudsters as victims and may have been unaware that their activity furthered criminal activity.

Over approximately the last three months, law enforcement took over 4,000 actions against individuals responsible for facilitating a range of fraud schemes. These schemes included those that targeted consumers, such as lottery fraud and romance scams, as well as those that targeted businesses or pandemic funds.

The thousands of actions taken by law enforcement — which ranged from criminal prosecutions to civil actions, to warning letters — were designed to punish those who knowingly assisted fraudsters and to advise those who may have been unknowingly helping fraudsters that their conduct furthered crime. These actions are intended to deter overseas fraudsters from relying on U.S.-based individuals to facilitate schemes and thereby reduce the harm caused by foreign fraud operations.

This year’s effort marked the fifth U.S. law enforcement campaign disrupting these money transmitting networks. Since the first campaign, during which approximately 400 actions were taken by law enforcement, agencies have collectively taken over 12,000 actions. Investigations have shown that disrupting money transmitting networks has impeded fraudsters’ abilities to receive funds, thereby reducing fraud victimization. These campaigns are part of a global effort to tackle money transmitting networks linked to illegal activity.

“Law enforcement is committed to reducing fraud using every tool at our disposal. Our efforts to disrupt networks used to transfer fraud proceeds, to educate the public about elder fraud, and to prosecute those involved in these schemes have stymied fraudsters,” said Associate Attorney General Vanita Gupta. “This initiative demonstrates what can be achieved through focused efforts and vigorous enforcement.”

“The money mule campaign was an effort to educate the public, disrupt criminal enterprises, and provide feedback to financial institutions who go to great lengths to implement anti-money laundering programs,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI values the partnership of the Justice Department’s Consumer Protection Branch, USPIS, and other federal agencies who work together to disrupt criminal enterprises conducting fraud and money laundering schemes.”

“Anyone can be approached to be a money mule, but criminals often target students, those looking for work, and those on dating websites,” said USPIS Inspector in Charge Eric Shen of the Criminal Investigations Group. “When those individuals use the U.S. Mail to send or receive funds from fraudsters, postal inspectors are quick to step in and put a stop to money mule activities.”

This year’s effort was coordinated by the Justice Department’s Consumer Protection Branch, FBI and USPIS, which were joined by Homeland Security Investigations, the Department of Labor Office of Inspector General and the Small Business Administration Office of Inspector General. Participating agencies collectively served over 4,000 letters warning individuals that their activities are facilitating fraud. These letters outlined the potential consequences for continuing to transmit illegally acquired funds. Participating agencies also filed 12 civil or administrative actions. Additionally, more than 25 individuals were criminally charged for knowingly receiving and forwarding victim funds or otherwise laundering fraud proceeds.

• The U.S. Attorney’s Office for the District Massachusetts charged a defendant for using his accounting and “virtual CFO” business as a front to launder the proceeds of internet fraud schemes. As part of the alleged conspiracy, the defendant created dozens of shell companies and used those shell companies to open business bank accounts in Rhode Island and Massachusetts, through which the defendant laundered the criminal proceeds for his clients in exchange for fees. In total, since 2019, the defendant is alleged to have opened approximately 80 bank accounts (purportedly on behalf of 65 different companies), laundering approximately $35 million.

• The U.S. Attorney’s Office for the Western District of North Carolina charged an individual for facilitating an international, multimillion-dollar tech support fraud. The indictment alleged that the defendant agreed to obtain payment-processing services in his name to process victim payments and laundered the proceeds domestically and internationally to bank accounts located in India, receiving 3% of the revenue in return.

• The U.S. Attorneys’ Offices for the Central District of California and the District of Nebraska charged individuals who, despite warnings from law enforcement, continued facilitating fraud. In the Central District of California, an individual was charged for her role in receiving funds from fraud victims, including victims of business email compromises. According to the charges, the defendant opened 11 bank accounts at seven separate financial institutions in furtherance of the scheme. In the District of Nebraska, two individuals were charged for facilitating a lottery fraud scheme, including by receiving cashier’s checks in the mail.

As in past years, participating agencies are working to raise awareness about how fraudsters recruit and use individuals to assist their fraud operations. Federal agencies conducted outreach to the public and industry, and also expanded partnerships with local, state, and foreign law enforcement agencies. The Commodities Futures Trading Commission released a public awareness message about how fraudsters use and recruit people to facilitate romance fraud and “wrong number” text message scams, where fraudsters strike up conversations touting their wealth and success in trading crypto assets, over-the-counter foreign currency, or gold contracts to try and convince consumers to “invest” in crypto assets.

The agencies involved in this effort urge consumers to be on the lookout for signs someone is trying to recruit them to receive and transmit fraud proceeds. Do not agree to receive money or checks mailed to you or sent to your bank account for someone you have met over the phone or online. Do not open a bank or cryptocurrency account at someone else’s direction. Fraudsters will lie to persuade you to help them. They may falsely tell you that they are helping you get a lottery prize, initiate a purported romantic relationship and then tell you that they need money, or pretend to offer you a job, an opportunity to invest in a business venture, or the chance to help in a charitable effort.

For more information on this initiative, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.

Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).   

Information about the Justice Department’s COVID-19 Fraud Enforcement Task Force is available at www.justice.gov/coronavirus.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch.

A criminal 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 News

Remarks as Prepared for Delivery

Good afternoon. Thank you for that warm welcome. Wonderful to see this Great Hall so filled with supporters of INTERPOL.

Thank you, Skip, for that kind introduction and for your many years of public service.

I am honored to join you to celebrate the 100th anniversary of the founding of INTERPOL and 100 years of international law enforcement cooperation.

I am also honored to welcome Secretary General Jurgen Stock to the Department of Justice—and to thank him for his steadfast leadership of INTERPOL since 2014 and for his long and distinguished career of public service. 

Under his leadership, INTERPOL has made important advances in at least three respects:

First, in modernizing its technology and strengthening INTERPOL’s National Central Bureaus, to create a truly global network.

It is a network we rely upon every day to locate fugitives, and to seek their arrest overseas pursuant to INTERPOL red notices, so that they can be extradited to face justice here. 

Second, Jurgen has helped make INTERPOL a critical platform for multilateral coordination to fight terrorism and international and transnational crime. This ranges from creating a biometric database of foreign terrorist fighters to establishing networks for cooperation against environmental crime, human smuggling, narcotics trafficking, cybercrime, and other forms of organized crime.

And third, Jurgen has put in place safeguards—including the Notices and Diffusions Task Force—to ensure that INTERPOL notices are consistent with the INTERPOL Constitution and the Universal Declaration of Human Rights—and are not misused by repressive regimes.

Jurgen’s been busy.

Our National Central Bureau sees—every day—the importance of these advances made by the Secretary General.

I also want to pay tribute to the women and men at the National Central Bureau—and to its outstanding leader, Mike Hughes. They work around the clock keeping information essential to apprehending fugitives and protecting our citizens—flowing to and from INTERPOL.

I know that Deputy Secretary of Homeland Security John Tien, my friend—who is with us today, and who is our partner in staffing the National Central Bureau—joins me in recognizing the critical importance of this work.

We celebrating another anniversary this year—it is 20 years ago that we established the DOJ and DHS co-management of INTERPOL Washington. 

Thank you, John, and the Department of Homeland Security, for being here today and for your partnership.

INTERPOL started in 1923, at the second International Criminal Police Congress, in which the United States was of one of the 20 countries that participated.

The central concept behind INTERPOL was to establish the means for police in different countries to cooperate on solving crimes—particularly through identification techniques, centralized criminal records, and arrest and extradition procedures.

Today, INTERPOL is 195, soon to be 196, countries strong and those founding ideas have expanded into myriad avenues for law enforcement cooperation around the globe. 

In 1923, member countries communicated by mail, telegram, and telephone, just a little bit of an advance through carrier pigeon, but not much. Today, through a dedicated 24/7 web-based communications system, police agencies around the world can instantly connect with just the click of a mouse—exchanging millions of messages and insights annually. 

INTERPOL’s notices by U.S. and foreign authorities can often be the fastest and most effective method of seeking the location and arrest of criminals—indeed, in many instances, the existence of an INTERPOL red notice may be the precondition for an arrest to be made by another country for the purposes of extradition.

In its infancy, INTERPOL relied on paper and ink fingerprints to aid in the identification of criminals. Today, digital fingerprint systems, DNA profiles, and facial recognition images lead to thousands of identifications every year. 

Through the marriage of partnerships and technology, INTERPOL is making it harder for criminals and terrorists to travel with impunity.

INTERPOL is at the forefront of helping law enforcement worldwide respond to the most urgent public safety and national security challenges. From terrorism, cybercrime, drug cartels, human trafficking—INTERPOL is increasingly playing an important role in our global security. 

And as autocratic nations seek to project power both at home and abroad, I want to applaud INTERPOL’s decision to increase scrutiny of requests, including through the Notices and Diffusions Task Force, to ensure that INTERPOL isn’t misused in furtherance of transnational repression.

INTERPOL provides a vital link between police agencies all around the world. And that global cooperation is evident here today—with the presence of so many leaders from across law enforcement at every level.  

Across my career, from being an AUSA to advising the President on homeland security and counterterrorism, to my role now as Deputy Attorney General, I have seen the value—and frankly, the necessity—of law enforcement cooperation across borders.

And on so many occasions, INTERPOL has been that critical link. I am sure that every law enforcement leader here could share examples of INTERPOL playing a key part in their critical investigations.

INTERPOL’s system of notices, databases, and communications between its member countries works both quietly behind the scenes and actively in investigations to prevent crimes, disrupt criminal organizations, catch criminals, and protect the public.

Through INTERPOL Washington, the United States is benefitting from these resources and the international cooperation required in the 21st century challenges that we all have to protect the public.

Hundreds of millions of queries of INTERPOL data every year by U.S. authorities result in countless matches on fugitives, missing persons, and dangerous individuals every single day.

To take just one notable example—one that has particular resonance given that we have just observed police week and honored our fallen law enforcement heroes—on June 20, 2013, nearly 10 years ago, in Bogota, Colombia, drug traffickers murdered DEA Special Agent James “Terry” Watson.

INTERPOL Washington worked closely with agents and prosecutors to quickly draft and expedite the publication of seven Red Notices, each within hours or even within minutes of the issuance of arrest warrants for the defendants.

The Red Notices provided the Colombian National Police with authority they needed to provisionally arrest the subjects who were all eventually extradited to the United States and successfully prosecuted in the Eastern District of Virginia in 2014. 

Then Attorney General Eric Holder said at the time that the final convictions in this case represented an “important milestone in our effort to achieve justice for a fallen hero”—and he noted in particular that this result was made possible through “assistance from INTERPOL.”

What started as a simple idea to foster communication between police agencies has grown into a global crime fighting force that touches every aspect of our mission to keep people safe and to uphold the rule of law.

We face ever evolving threats—from countering nuclear smuggling to tracking down terrorists, from disrupting the latest cyber threat to rescuing children from sex traffickers, from dismantling violent drug cartels to fighting illegal arms trafficking.  

Over the last 100 years, INTERPOL has evolved to meet the threat, and in so doing, has made the world a safer place.

Congratulations to INTERPOL on celebrating 100 years.

Source: United States Department of Justice News

A Texas businessman pleaded guilty today to filing a false 2015 corporate tax return for his company.

According to court documents, Martin Skolnik owned and operated Houston-based Spartan Metals Inc. (Spartan), a company that bought and resold scrap metal, for more than 30 years. On several occasions between 2014 and 2017, Skolnik directed customers to wire payments to his personal bank account rather than to Spartan’s business bank account. Skolnik intentionally did not record these payments as income in Spartan’s QuickBooks records, which he then provided to his accountant, willfully causing the accountant to prepare false corporate tax returns. As a result, Spartan’s corporate tax returns underreported more than $2.3 million of gross income for tax years 2014 through 2017.

Skolnik is scheduled to be sentenced on Aug. 24 and faces a maximum penalty of three years in prison for filing a false tax return, as well as a period of supervised release and monetary penalties. A federal district court judge will determine the 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 Alamdar Hamdani for the Southern District of Texas made the announcement.

IRS-Criminal Investigation is investigating the case.

Senior Litigation Counsel Sean Beaty and Assistant U.S. Attorney Shirin Hakimzadeh for the Southern District of Texas are prosecuting the case.

Source: United States Department of Justice News

            WASHINGTON – Sheron Spann, 54, of Washington, D.C, pleaded guilty today in U.S. District Court to steering government contracts to companies under her control and the control of her spouse. The plea was entered before United States District Judge Royce C. Lamberth, who scheduled sentencing for September 21, 2023.   

            According to court documents, starting as early as 2011, Spann, a former employee, began to steer U.S. Office of Personnel Management information technology contracts to companies under control of Spann and her husband without disclosing the nature or extent of her relationship to the companies.  In sum, between 2011 and 2023, companies associated with Spann or her husband received over $10 million from the U.S. Office of Personnel Management.

            Spann pleaded guilty to one felony count of taking acts affecting a personal financial interest.  She faces up to five years in prison.

            This case is being investigated by the FBI’s Washington Field Office, and the Office of the Inspector General for the U.S. Office of Personnel Management.

            The case is being prosecuted by Assistant U.S. Attorney Elizabeth Aloi, with assistance from former Assistant U.S. Attorney Molly Gaston.

Source: United States Department of Justice News

Defendant Fought With Police

            WASHINGTON — A Texas man was sentenced today for assaulting law enforcement resulting in bodily injury related to the breach of the U.S. Capitol on Jan. 6. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.  

            Donald Hazard, 44, of Hurst, Texas, was sentenced to 57 months in prison for assaulting, resisting or impeding certain officers. Hazard pleaded guilty to the charge on February 16, 2023. In addition to the prison term, U.S. District Court Judge Randolph D. Moss ordered 36 months of supervised release and a restitution of $2,000.

            According to court documents, Hazard was the Sergeant-at-Arms of the Patriot Boys of North Texas, a self-described militia. In preparation for attending the rally in Washington, D.C. on January 6, 2021, Hazard gathered protective gear and other supplies including a military-style helmet, knuckle gloves, goggles, body armor, and pepper spray.

            On January 6, a newspaper photographer recorded Hazard marching in Washington D.C.  In that video, Hazard stated “Make sure you get my face and everything on your news channel. I want the enemy to know exactly who is coming after them.”

            On Jan. 6, by approximately 2:00 p.m., Hazard was positioned under scaffolding that had been erected over the stairs on the northwest side of the U.S. Capitol building. As Hazard and other rioters attempted to climb the steps, they encountered United States Capitol Police (“USCP”) officers. Officer T.S. engaged with Hazard in order to force Hazard back; Hazard grabbed Officer T.S. as Hazard fell and continued to fight with Officer T.S. has the two fell down the stairs. Officer T.S. hit his head and was knocked unconscious. He also sustained injuries to his head, foot, and arm, some of which required surgery.

            At another point on January 6, Hazard advanced towards a line of police officers on the west side of the Capitol with a cannister of pepper spray in hand. At approximately 2:56 p.m., Hazard entered the Capitol building via the Parliamentarian door and remained inside for approximately five minutes. Hazard also posted selfie-style videos, inside and outside of the Capitol building, in which he made statements such as “We’re here at the nation’s capitol and we’re storming it. We’re taking the Capitol. . . This is America baby.”

            Hazard was arrested on December 13, 2021.

            This case was prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Northern District of Texas.

            The case was investigated by the Fort Worth Resident Agency of the FBI’s Dallas Field Office, along with the FBI’s Washington Field Office, which identified Hazard as #267 in its seeking information photos. Valuable assistance was provided by, the Texas Department of Public Safety, the Hurst, Texas, Police Department, the Metropolitan Police Department, and the U.S. Capitol Police.

            In the 28 months since Jan. 6, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.