Category: US Department of Justice

Source: United States Department of Justice Criminal Division

The United States and Canada have a longstanding and enduring security, law enforcement, and intelligence partnership that is centered on protecting public safety, consistent with rights protected by law. Yesterday, to advance our shared goals, U.S. Attorney General Merrick B. Garland and U.S. Secretary of Homeland Security Alejandro N. Mayorkas hosted Canada’s Minister of Justice and Attorney General, Arif Virani, and Canada’s Minister of Public Safety, Dominic LeBlanc, in Washington, D.C., for the U.S.-Canada Cross Border Crime Forum (CBCF). This meeting is the third CBCF since it was reestablished by President Biden’s and Prime Minister Trudeau’s 2021 “Roadmap for a Renewed U.S.-Canada Partnership.”

Building on the success of previous CBCF meetings, including the “Statement of Partnership to Prevent, Investigate, Prosecute, and Disrupt Cross-Border Crime,” which was signed at last year’s meeting, the four U.S. and Canadian officials (“the Ministers”) discussed ways to enhance collaboration in the following areas:

Foreign Interference/National Security

The Ministers acknowledged the threat from hostile foreign actors, including in the context of electoral interference. Malign actors may seek to influence outcomes and undermine public confidence in elections in many ways. They may deploy efforts to subvert democratic processes, such as engaging in cyber-attacks and other interference activities against election campaigns and election infrastructure to disrupt election processes. They may seek to influence elections, including by covertly exploiting and fueling divisions within society; and this, in turn, may also help fuel coercive activity and harassment, and threats of violence toward voters, candidates, and election personnel. Both the United States and Canada agreed that fair and secure elections are cornerstones of democracy and emphasized the need to work together to combat any threats that seek to undermine it.

Malign foreign actors also have demonstrated an intent and willingness to use insiders, computer intrusion, or other means to steal trade secrets and sensitive technologies. This global problem requires a global response, and the United States and Canada will continue to investigate and, where appropriate, prosecute espionage that threatens our economies and export control violations. In this vein, the Ministers agreed on the need to preserve the cross-border flow of data between allies and partners that is critical to our economic well-being, while maintaining the security of sensitive personal data.

The Ministers similarly reaffirmed their united front in protecting our democracies and the democratic process. A key tool in combating the threat of transnational repression, as well as malign foreign influence and interference generally, is transparency through foreign agent registries; the United States discussed the use of its Foreign Agents Registration Act and related statutes, while Canada highlighted its newly passed legislation in this area, Bill C-70, “An Act respecting countering foreign interference,” which will establish a Foreign Influence Transparency Registry and update criminal law tools to better safeguard democracy. These efforts, along with investigations and prosecutions of transnational repression-related cases, will further enhance the ability of the United States and Canada to protect those living within our borders.

Law Enforcement Cooperation and Information Sharing

The United States and Canada continue to combat the devastation caused by fentanyl and synthetic opioids by working together at disrupting the illicit supply chain, to include production and distribution and the importation of illicit precursor chemicals from China and elsewhere. Similarly, the violence wrought by firearms smuggled across the U.S.-Canada border requires continued efforts to target those responsible, including shippers and receivers, by seizing illicit firearms and tracing their origins.

Key in all these counter opioid and firearm efforts is enhanced information sharing between U.S. and Canadian law enforcement agencies, which has already led to successful operations. The Ministers applauded the advances in cooperation between U.S. and Canadian law enforcement since the last CBCF and underscored the need to build on and further operationalize prior Memoranda of Understanding (MOUs). The Ministers reaffirmed their commitment to provide clear policy direction and training to ensure that institutional policies and practices maximize information sharing within the context of each other’s laws and regulations, and in accordance with recent MOUs. They plan to continue to work together to improve the operationalization and systemization of intelligence and law enforcement sharing at the border, with the goals of supporting interdictions and investigations, countering transnational organized crime, continuing to build the global coalition against synthetic drug threats, and disrupting the synthetic opioid and firearm supply chains.

In the context of enhancing information sharing, the Ministers also discussed the challenges associated with cross-border human smuggling that is occurring in both directions, and challenges in related investigations. Accordingly, the Ministers called on their officials to continue strengthening ways to gather and share information for the detection and investigation of organized crime groups and networks that target vulnerable people and engage in human smuggling. They also tasked officials to review information sharing case studies of border incidents and identify opportunities to further improve intelligence sharing, detection, and interdiction, in order to disrupt cross-border smuggling and investigate and hold accountable those involved.

With respect to law enforcement cooperation and information sharing at the border, the Ministers also considered their respective country’s approach to providing advance notification of sex offender travel, which remains a key tool in making informed admission decisions. Both countries will seek to maximize the sharing of sex offender travel notifications, in the interest of ensuring public safety.

Online Crime and Hate Crimes

The Ministers began their discussion of online crime by acknowledging the need to maintain tightly controlled lawful access to communications content that is vital to the investigation and prosecution of serious crimes, including terrorism and online child sexual exploitation and abuse. 

The Ministers then turned to collective efforts to address the increasing prevalence of online child sexual abuse material (CSAM). The Ministers noted the increase in both countries of artificial intelligence (AI)-generated CSAM and the need for international engagement to combat this threat, to include law enforcement, non-governmental organizations, the technology industry, and others.

With respect to AI more generally, the Ministers acknowledged the benefits and risks posed by AI technology. Moreover, the Ministers recognized that AI crosses over multiple government equities, including criminal law, civil rights, and antitrust law, and recommended that this continue to be a focus of study by the CBCF.

The need for strategic and coordinated engagement between and among international partners was also discussed in the context of elder fraud and romance scams. The Ministers discussed avenues available to collectively identify and disrupt such schemes to prevent further victimization.

The United States and Canada also acknowledged the ways in which hate crimes erode communities. The Ministers noted with concern the increased number of attacks motivated by anti-Semitism, Islamophobia, and other forms of bias on both sides of the border and pledged to work together to address this issue.

The Ministers also welcomed the outcomes of the strengthened collaboration between their respective Access to Justice Offices over the past year, including on strategies to overcome systemic inequality and discrimination, as part of efforts to increase access to – and strengthen confidence in – the justice system. 

Conclusion

The Ministers plan to continue their close contact on all these critical issues, both in the context of the CBCF, and in other bilateral exchanges. They reiterated the strength, success, and depth of the security and law enforcement relationships along the U.S.-Canada border and the need to remain aligned.

Contacts

Jean-Sébastien Comeau

Deputy Director of Communications

Office of the Honourable Dominic LeBlanc

Minister of Public Safety, Democratic Institutions and Intergovernmental Affairs

343-574-8116

Jean-Sebastien.Comeau@iga-aig.gc.ca

Media Relations

Public Safety Canada

613-991-0657

media@ps-sp.gc.ca

Chantalle Aubertin

Deputy Director, Communications

Office of the Minister of Justice and Attorney General of Canada

613-992-6568

Chantalle.Aubertin@justice.gc.ca

Media Relations

Department of Justice Canada

613-957-4207

media@justice.gc.ca

Nicole Navas Oxman

Senior Communications Advisor for International Law Enforcement/Spokesperson

U.S. Department of Justice

202-305-5625

Nicole.Navas@usdoj.gov

U.S. Department of Homeland Security

Office of Public Affairs

mediainquiry@hq.dhs.gov

Source: United States Department of Justice Criminal Division

A jury convicted Gregory and David Melton yesterday in the U.S. District Court in Savannah, Georgia, for their role in a conspiracy to fix prices, rig bids and allocate markets for sales of ready-mix concrete in Georgia and South Carolina. The conspiracy, which began as early as 2010 and continued until about July 2016, involved coordinating price-increase letters to customers, allocating specific jobs in the coastal Georgia area and submitting bids to customers at collusive and noncompetitive prices.

Including yesterday’s verdicts, this investigation resulted in five criminal convictions and one deferred prosecution agreement. Defendants James Pedrick, Timothy Strickland and Strickland’s company, Evans LLC, previously pleaded guilty as a part of the same conspiracy. Pedrick’s former employer, Argos USA LLC, previously entered into a deferred prosecution agreement with the Antitrust Division, admitted to its participation in the conspiracy and agreed to pay a $20 million criminal penalty.

“Concrete is essential to our nation’s infrastructure,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s guilty verdicts reflect the Antitrust Division’s commitment to holding individuals accountable for cheating American consumers out of the opportunity to purchase necessary building materials free of corruption and collusion. The division and its law enforcement partners will continue to prioritize their work prosecuting individuals responsible for this illegal and unethical conduct.”

“Customers expect to receive fair value for construction materials – not to enrich unscrupulous vendors who collude to unfairly increase their profits,” said U.S. Attorney Jill E. Steinberg for the Southern District of Georgia. “This verdict makes it clear that our office and law enforcement partners will hold accountable those who violate the law to pad their bottom line.”

“Bid rigging and fraud schemes are serious criminal actions that adversely impact the competitive contracting marketplace,” said Special Agent in Charge Joseph Harris of the Department of Transportation Office of Inspector General (DOT OIG), Southern Region. “Today’s conviction should serve to deter individuals and companies from engaging in deceptive practices that violate federal regulations and the public’s trust.”

“The Justice Department’s Antitrust Division, along with our other federal law enforcement partners, secured a victory with today’s guilty verdict in our fight against bid-rigging and collusion,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS) Office of Inspector General (OIG). “The USPS OIG will vigorously investigate those who would engage in harmful anticompetitive practices, and we continue to ask for the public’s assistance in identifying and reporting those engaged in this type of activity.”

Violating the Sherman Act, which is a federal criminal antitrust statute, is a felony. The maximum penalty for individuals convicted of violating the Sherman Act is 10 years in prison and a $1 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Washington Field Office, DOT OIG and USPS OIG investigated the case.

Attorneys Patrick S. Brown and Julia M. Maloney of the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorney E. Greg Gilluly Jr. for the Southern District of Georgia prosecuted the case, with valuable assistance from Assistant Chief Megan Lewis and Trial Attorney Daniel A. Loveland of the Antitrust Division.

In November 2019, the Justice Department created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force.

Source: United States Department of Justice Criminal Division

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division traveled to The Hague, Netherlands, this week to address the Counterterrorism Law Enforcement Forum (CTLEF) and to convene a high-level meeting with European partners on stopping the illicit flow of sensitive technology to foreign adversaries.

The CTLEF was held on June 10-11 at the European Union Agency for Law Enforcement Cooperation (Europol). Assistant Attorney General Olsen delivered opening remarks, along with U.S. Deputy Coordinator for Counterterrorism Ian Moss. In his remarks, Assistant Attorney General Olsen discussed the Justice Department’s ongoing efforts to combat heightened threats from domestic violent extremists in the United States, including those engaged in racially or ethnically motivated violent extremism (REMVE) and individuals who cite the ongoing conflict in the Middle East as inspiration in targeting Jewish and Muslim Americans. He also highlighted the importance of international law enforcement cooperation to confront transnational connections among REMVE actors who spread violent ideologies across borders, including through social media and online gaming platforms.

On June 12, Assistant Attorney General Olsen cohosted a meeting at the European Union Agency for Criminal Justice Cooperation (Eurojust) aimed at enhancing transatlantic cooperation in the fight to keep sensitive western technology out of the hands of Russia and other foreign state adversaries. In addition to the Assistant Attorney General, keynote remarks were delivered by Ukrainian Prosecutor General Andriy Kostin, European Commissioner Didier Reynders (by video), and Eurojust President Ladislav Hamran. Representatives from more than 30 countries as well as several EU institutions participated in the meeting.

In his remarks, Assistant Attorney General Olsen described the threats posed by adversaries seeking sophisticated American technologies like semiconductors, quantum, hypersonics and artificial intelligence. Adversary regimes can exploit these tools to increase their military capabilities, engage in mass surveillance, and commit human rights abuses. He highlighted the success of the Department’s Disruptive Technology Strike Force – an interagency enforcement effort co-led with the Commerce Department to prevent critical technological assets from being unlawfully acquired and used by foreign adversaries. Citing recent criminal prosecutions, Assistant Attorney General Olsen emphasized the concrete impacts of criminal enforcement of U.S. sanctions and export control laws and the force-multiplier effect of international partners’ complementary efforts to deny malign actors these technologies.

“The countries represented here have a shared commitment to the common goal of combating the national security threat posed by the misuse of critical technology,” said Assistant Attorney General Olsen. “International partnerships are critical to our work. Our adversaries’ efforts to obtain sensitive technology reach across the globe, and it demands an international response.” 

Valuable insights were also shared by senior officials from the European Commission, Eurojust, Europol, the Ukrainian Prosecutor General’s Office, Belgium, the Netherlands, and the United Kingdom.

Source: United States Department of Justice Criminal Division

Butler, Pennsylvania, based Armstrong Group has agreed to pay $6.5 million to resolve allegations that it violated the False Claims Act by knowingly violating the Federal Communications Commission’s (FCC) rules governing the agency’s High-Cost Program and submitting improper costs in order to inflate the subsidies it received from the federal Universal Service Fund (USF).

The FCC established the USF to help ensure that all people in the United States have access to rapid, efficient, nationwide communications service with adequate facilities at reasonable charges. The High-Cost Program is one of four programs that comprise the USF and aims to ensure that consumers in rural, insular, and high-cost areas have access to modern communications networks capable of providing reasonably comparable voice and broadband service, both fixed and mobile, at rates that are reasonably comparable to those in urban areas. In pursuit of that goal, the High-Cost Program provides federal funds to qualified eligible telecommunications carriers, including incumbent local exchange carriers (ILECs), that receive subsidies to expand connectivity infrastructure within the United States.

The United States alleged that, between 2008 and 2023, five ILECs owned by Armstrong Group (Armstrong Telephone Company – Maryland, Armstrong Telephone Company – New York, Armstrong Telephone Company – Northern Division, Armstrong Telephone Company – Pennsylvania, and Armstrong Telephone Company – West Virginia) failed to comply with FCC regulations that governed what costs they were allowed to report for purposes of claiming subsidy payments from the government, and as a result these companies received greater subsidy payments than those to which they were entitled.

“Telecommunications providers that seek to participate in important FCC programs like the High-Cost Program must comply with applicable rules, including those governing how they report the costs used to calculate their subsidies,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to protect the integrity of the FCC’s operations and services.”

“When providers like the Armstrong Group fail to follow federal law and FCC regulations, they jeopardize not only critical government programs but also consumers’ ability to access a modern lifeline — rapid, reliable, and efficient telecommunications services,” said U.S.  Attorney Eric G. Olshan for the Western District of Pennsylvania. “Today’s settlement demonstrates our office’s dedication to ensuring the business community plays fairly, particularly with respect to public funds, and further assures our rural neighbors throughout the district that we will work vigorously to protect their access to essential services that many people take for granted.”

“In the digital age, it is critical for everyone, everywhere to have access to reliable, high-speed broadband, including in rural and underserved areas. That is why we are laser-focused on pursuing waste, fraud, and abuse in these critical programs and ensuring that available funds flow to companies that play by the rules,” said General Counsel Michele Ellison for the FCC. “I applaud the continuing collaboration among the Office of General Counsel, the Office of the Inspector General, and the U.S. Department of Justice toward this important objective.”

“Carriers receiving support from the USF or any FCC benefit program must understand that actions undermining the claims process will not be tolerated and will be investigated vigorously,” said Inspector General Fara Damelin of the FCC. “The FCC Office of Inspector General will continue to work with our law enforcement partners and the FCC to ensure the integrity of the FCC’s programs. I would like to thank the Department of Justice and the United States Attorney’s Office for the Western District of Pennsylvania for their unrelenting dedication to this case.”

Contemporaneous with the civil settlement, Armstrong Group has entered into a robust corporate compliance agreement with the FCC, requiring Armstrong to adopt concrete changes in the company’s internal controls and implement comprehensive oversight and monitoring mechanisms.

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by James Ranko, Armstrong Group’s former Controller. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any subsequent recovery. The qui tam case is captioned U.S. ex rel. Ranko v. Armstrong Group of Companies, et. al., Case No. 17-1052 (W.D. Pa.). The whistleblower will receive $1,267,500 as his share of the recovery.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Western District of Pennsylvania and the FCC’s Office of Inspector General, with assistance from the FCC’s Office of General Counsel.

Senior Trial Counsel Benjamin C. Wei and Assistant U.S. Attorney Paul E. Skirtich for the Western District of Pennsylvania handled the matter. Investigative Attorneys Elliot Lowenstein and Peter Feinberg of the FCC Office of Inspector General provided investigation support.

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

Source: United States Department of Justice Criminal Division

A federal jury convicted a U.S. Navy Reserve commander today on multiple criminal charges related to a years-long bribery scheme involving Special Immigrant Visas (SIVs) for Afghan nationals.

According to court documents and evidence presented at trial, Jeromy Pittmann, 53, of Pensacola, Florida, received bribe money from Afghan nationals in exchange for drafting, submitting, and falsely verifying false letters of recommendation for citizens of Afghanistan who applied for SIVs with the U.S. Department of State. Each year, the State Department offers limited SIVs to enter the United States for Afghan nationals employed as translators for U.S. military personnel. In connection with this program, Pittmann signed over 20 false letters in which he represented, among other things, that he personally knew and had supervised the Afghan national visa applicants while they worked as translators in support of the U.S. military and NATO; that the applicants’ lives were in jeopardy because the Taliban considered them to be traitors; and that, based on his personal knowledge of the applicants, he believed they did not pose any threat to the national security of the United States. In reality, Pittmann did not know the applicants and had no basis for recommending them for SIVs. In exchange, Pittmann received several thousands of dollars in bribes. To avoid detection, Pittmann received the bribe money through an intermediary and created false invoices purporting to show that Pittmann was receiving the money for legitimate work unrelated to his military service.

The jury convicted Pittmann of conspiracy to commit bribery and false writing, bribery, false writing, and conspiracy to commit concealment money laundering. He is scheduled to be sentenced on Oct. 21 and faces a maximum penalty of 45 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; Inspector General Robert P. Storch of the Department of Defense; Inspector General John F. Sopko of the Special Inspector General for Afghanistan Reconstruction (SIGAR); and Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service’s (NCIS) Economic Crimes Field Office made the announcement.

SIGAR, NCIS, and the Defense Criminal Investigative Service investigated the case.

Trial Attorneys Matt Kahn and Theodore M. Kneller of the Criminal Division’s Fraud Section are prosecuting the case.