Category: US Department of Justice

Source: United States Department of Justice Criminal Division

Racially or ethnically motivated violent extremism (REMVE) is a serious global threat. REMVE attacks and transnational linkages are increasing, and new threats are emerging posed by technological changes and Russia-linked actors developing and spreading false narratives on REMVE in Ukraine. The international community has developed strong coordination and cooperation over the last 20 years to counter terrorist groups and networks, such as al-Qa’ida and ISIS. There is not yet the same type of routine information sharing for REMVE threats.

To address this gap in international cooperation, the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) and U.S. Department of State’s Bureau of Counterterrorism (State CT) co-hosted the third annual meeting of the Counterterrorism Law Enforcement Forum (CTLEF) in The Hague on July 10 and 11. The CTLEF gathered law enforcement, prosecutors, and other criminal justice practitioners from around the world to discuss how to effectively address and counter REMVE threats. The CTLEF increased the participants’ shared understanding of REMVE global activity, including the overlap between anti-government and conspiracy theorist movements. This meeting, which builds on the conversations that participants had in the first two forums in Berlin and Oslo in 2022 and 2023, respectively, reflects the type of cooperation that will be needed in the coming years as REMVE threats continue to build their transnational ties. The CTLEF continues to serve as a locale to begin building lines of communication between like-minded law enforcement and other partners and practitioners around the world who are working on combating REMVE.

Assistant Attorney General (AAG) Matthew G. Olsen of the Justice Department’s National Security Division delivered opening remarks, along with U.S. Deputy Coordinator for Counterterrorism Ian Moss. AAG Olsen discussed the Justice Department’s efforts to combat heightened threats from domestic violent extremists, including those who cite the ongoing conflict in the Middle East as inspiration in targeting Jewish and Muslim Americans. AAG Olsen also highlighted the importance of international law enforcement cooperation to confront the increased transnational connections among REMVE actors, many of whom spread their violent ideologies across borders, including through their use of social media and online gaming platforms.

OPDAT Director Faye Ehrenstamm, along with Deputy Director for Counterterrorism Jill Rose, delivered closing remarks after both days of the CTLEF. Director Ehrenstamm noted the importance of international cooperation to combat the REMVE threat, especially considering new threats from rapid technological changes and Russia-linked false REMVE narratives in Ukraine.

Participants came from numerous like-minded countries in Europe, North and South America, the Pacific Rim (Australia and New Zealand), and South Africa, as well as specialists from Europol, INTERPOL, the European Union, Global Counterterrorism Forum, Organization for Security and Cooperation in Europe, United Nations Office on Drugs and Crime, International Institute for Justice and the Rule of Law, and other multilateral organizations.

For more information about OPDAT’s capacity building efforts around the world, visit www.justice.gov/criminal-opdat.

Source: United States Department of Justice Criminal Division

A Long Island, New York, fisherman was sentenced yesterday to 30 months in prison and two years of supervised release for his role in a fisheries fraud conspiracy associated with his captainship of the trawler New Age from 2014 to 2017.

In October 2023, a jury convicted Christopher Winkler, of Montauk of one count of federal criminal conspiracy, two counts of mail fraud and two counts of obstruction of justice.

On at least 200 fishing trips, Winkler targeted summer flounder (fluke) and black sea bass, and harvested those fish in excess of quotas and state trip limits. He also falsified Fishing Vessel Trip Reports for those trips.

In a related case, Bryan and Asa Gosman and the company they partially own — Bob Gossman Co. Inc. — previously pleaded guilty for their role in the fishing fraud conspiracy. In total, approximately 200,000 pounds of fluke and black sea bass were overharvested, with a conservative wholesale valuation of $750,000.

Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and Assistant Director Michael Henry of National Oceanic and Atmospheric Administration’s (NOAA) Office of Law Enforcement, Northeast Division made the announcement.

NOAA’s Office of Law Enforcement investigated the case as part of Operation One-Way Chandelier.

Christopher L. Hale and Kenneth Nelson of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case, with logistical support from the U.S. Attorney’s Office for the Eastern District of New York.

Source: United States Department of Justice Criminal Division

Note: View the criminal complaint here.

Andrew Takhistov, 18, of East Brunswick, New Jersey, was arrested yesterday and made his initial appearance in court today for allegedly soliciting another individual to destroy energy facilities.

“Andrew Takhistov was allegedly on his way to Ukraine to join the Russian Volunteer Corps when we arrested him on charges of recruiting an individual to destroy an electrical substation here in the United States in order to advance his white supremacist ideology,” said Attorney General Merrick B. Garland. “I am grateful to the FBI and the Joint Terrorism Task Force for their exceptional work disrupting this dangerous plot.”

“This complaint alleges that the defendant’s posts referenced Adolf Hitler, encouraged violence against Black and Jewish communities, praised mass shooters, and discussed causing death and destruction on a large scale,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “The defendant was allegedly enroute to join the Russian Volunteer Corps, which he described as specializing in assassinations, attacks on power grids, and other infrastructure sabotage, so that he could act on his violent plans. We will not tolerate these kinds of alleged terroristic threats, and working with our partners, we will always be ready to root out and bring to justice anyone who attempts to carry out these acts.”

According to court documents, in January, Takhistov began communicating on a social messaging platform with an individual who, unbeknownst to Takhistov, was an undercover law enforcement employee. Takhistov had previously posted on the messaging platform (often posting in racially/ethnically motivated extremist [RMVE]-aligned channels), requesting advice about weapons, disseminating manuals on how to construct homemade weapons, and expressing interest in traveling overseas to engage in paramilitary-style training. Throughout these posts, Takhistov referenced Adolf Hitler, encouraged violence against various ethnic and religious communities (including Black and Jewish individuals), and praised mass shooters. 

Throughout Takhistov’s communications with the undercover employee, Takhistov repeatedly referred to his RMVE ideology and his desire to advance that ideology through violent means. In May, Takhistov informed the undercover employee that he was planning to travel to Ukraine in July to join the Russian Volunteer Corps, explaining that he chose this organization because it was openly National Socialist and, more importantly, specialized in assassinations, attacks on power grids and other infrastructure sabotage.

Takhistov discussed infrastructure sabotage, specifically how to damage an electrical substation using Mylar balloons or Molotov cocktails, which Takhistov explained how to make. Takhistov told the undercover employee that, while Takhistov was in the Ukraine, the undercover employee needed to carry out at least one event of serious activism.

On two occasions in June and July, at Takhistov’s direction, Takhistov and the undercover employee drove to two different electrical substations in North Brunswick and New Brunswick, New Jersey. During these visits, Takhistov instructed the undercover employee on numerous aspects of how to conduct an attack on an electrical substation.

On July 5, during one of these meetings, Takhistov directed the undercover employee to take several photographs of the electrical substations so that Takhistov could send them to his Russian friend for additional advice on how to best sabotage the stations.

Takhistov was arrested Wednesday afternoon at Newark Liberty International Airport where he was planning to travel to Paris on his way to Ukraine.

Takhistov is charged with one count of soliciting another individual to engage in criminal conduct that involved destroying a public service enterprise group circuit breaker and substation. If convicted, he faces a maximum penalty of 10 years in prison and a $125,000 fine.

The FBI is investigating the case.

Assistant U.S. Attorney Vera Varshavsky for the District of New Jersey and Trial Attorney James Donnelly of the National Security Division’s Counterterrorism Section are prosecuting the case.

A criminal complaint 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

An Indiana CPA pleaded guilty yesterday to assisting in the preparation of false tax returns on behalf of clients who participated in an illegal tax shelter. 

According to court documents and statements made in court, between 2013 and 2022, Jason L. Crace prepared income tax returns for clients that claimed millions of dollars in false deductions for so-called “royalty payments.” However, as Crace knew, these “royalty payments” were merely circular flows of money designed to give the appearance of genuine business expenses. In reality, tax shelter participants sent their money to bank accounts controlled by scheme promoters, who then sent the money right back to different bank accounts that the participants controlled. In this way, tax shelter participants retained control of the money they transferred, while falsely deducting the transfers as business expenses on their tax returns. Participants’ decision regarding how much (and even whether) to pay “royalties” was driven purely by the amount of income they wanted to shelter from the IRS on their tax returns.

In total, Crace’s preparation of false tax returns claiming fraudulent “royalty” deductions caused a loss to the IRS of at least $2,532,936.

Crace is scheduled to be sentence on Jan. 14, 2025. He faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Todd W. Gee for the Southern District of Mississippi made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Richard J. Hagerman, William M. Montague and Matthew C. Hicks of the Justice Department’s Tax Division and Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi are prosecuting the case.

Source: United States Department of Justice Criminal Division

The Justice Department and Environmental Protection Agency (EPA) today announced a settlement with Marathon Oil Company resolving Clean Air Act violations at the company’s oil and gas production operations on the Fort Berthold Indian Reservation in North Dakota. The settlement requires that Marathon pay a civil penalty of $64.5 million, the largest ever for violations of the Clean Air Act at stationary sources, which include facilities such as oil and gas tank systems. Under the settlement agreement, Marathon will implement extensive compliance measures to achieve major reductions in harmful emissions from over 200 facilities across the state.

“This historic settlement — the largest ever civil penalty for violations of the Clean Air Act at stationary sources — will ensure cleaner air for the Fort Berthold Indian Reservation and other communities in North Dakota, while holding Marathon accountable for its illegal pollution,” said Attorney General Merrick B. Garland. “The complaint alleges that Clean Air Act violations at nearly 90 Marathon facilities resulted in thousands of tons of illegal emissions.  The work that Marathon will do under this agreement will result in the equivalent of over 2.25 million tons of reduced carbon-dioxide emissions over the next five years and also eliminate nearly 110,000 tons of VOC emissions. The Justice Department will continue to vigorously enforce our environmental laws to protect the health of the American people.”

The case is the first of its kind against an oil and gas producer for violations of major source emissions permitting requirements under the Clean Air Act’s Prevention of Significant Deterioration (PSD) program. The complaint alleges that these and other Clean Air Act violations at nearly 90 Marathon facilities resulted in thousands of tons of illegal pollution, including volatile organic compounds (VOCs) and carbon monoxide, which contribute to asthma and increase susceptibility to respiratory illnesses. Additionally, greenhouse gases, including methane, were released in large quantities, contributing to climate change.

While Marathon is the nation’s 22nd largest producer of oil based on 2022 data, it is the 7th largest emitter of greenhouse gas emissions in the oil and gas industry. A large portion of these emissions come from flaring, an industry practice that combusts but also releases methane, a climate super-pollutant. The work that Marathon will do under this agreement will result in the equivalent of over 2.25 million tons of reduced carbon-dioxide emissions over the next five years, similar to the amount of reductions achieved by taking 487,000 cars off the road for one year. The settlement will also eliminate nearly 110,000 tons of VOC emissions.

“The record civil penalty and extensive compliance measures, including an innovative cap on VOC emissions, set a benchmark for the Department’s enforcement efforts at oil and gas production facilities,” said Acting Associate Attorney General Benjamin C. Mizer. “Those who are historically overburdened by pollution are the most at risk of being harmed by these emissions. The Justice Department is committed to enforcing laws such as the Clean Air Act to protect the health of everyone in the United States, including Tribal Nations and their members.”

“This landmark settlement will ensure cleaner air throughout the State of North Dakota and substantially reduce pollutants that contribute to global warming,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to taking strong action to ensure that oil and gas production operations across the nation comply with environmental laws designed to protect human health and the environment.”

“Today’s historic settlement is the most significant to date under EPA’s climate enforcement initiative as well as part of a larger effort to hold oil and gas companies accountable for widespread violations at oil and gas facilities throughout the country,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “As a result of today’s settlement, Marathon will dramatically cut its emissions, including the release of methane, a climate super-pollutant that is 25 times more potent in the near term than carbon dioxide. EPA is committed to doing everything possible to limit climate change and ensure a sustainable future.”

“This settlement is a major win for the health and future of our Tribal communities, including people and families who are often overburdened by pollution,” said KC Becker, EPA Region 8 Administrator. “As a result of the agreement, Marathon has and will continue to take comprehensive measures to come into compliance and reduce harmful emissions across hundreds of production sources. These investments will improve air quality and reduce respiratory illnesses across the Fort Berthold Indian Reservation and western North Dakota.”

The agreement requires Marathon to invest in extensive compliance measures estimated to cost $177 million, much of which will be expended by the end of 2024. The settlement requires Marathon to obtain permits with federally enforceable emissions limits at production facilities on the Fort Berthold Indian Reservation and future operations in the state of North Dakota. Compliance measures also include flare monitoring, periodic infrared camera inspections and implementation of storage tank design requirements.

These actions will significantly reduce harmful health-related emissions from 169 existing facilities on state land and on the Fort Berthold Indian Reservation, as well as at new facilities built in North Dakota. Therefore, the United States will secure pollution limits on twice the number of facilities where it investigated and alleged violations.

The complaint alleges that Marathon failed to obtain required preconstruction permits under the PSD program and operating permits under the Title V program.

The settlement is part of EPA’s National Enforcement and Compliance Initiative, Mitigating Climate Change. This initiative focuses, in part, on reducing methane emissions from oil and gas and landfill sources. Like all of EPA’s national enforcement initiatives, this initiative prioritizes communities already overburdened by pollution and other potential environmental justice concerns.

The complaint and the proposed consent decree were filed by the Justice Department’s Environmental Enforcement Section. The proposed consent decree is subject to a 30-day public comment period. It can be viewed on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.

Background

The complaint also alleges failure to comply with storage tank design, operation and maintenance requirements at 66 facilities on the Fort Berthold Indian Reservation. The settlement requires Marathon to obtain permits for its existing facilities on the Reservation and for new facilities it builds in North Dakota. These actions will cap VOC emissions at under 100 tons per year.

The settlement further requires auditor checks on Marathon’s permit applications and ongoing audits of emissions from its facilities. Marathon must temporarily stop production if facility-wide emissions limits are exceeded or if flares are not operating properly.

In addition to three other projects to reduce emissions, Marathon will purchase two infrared cameras for use by the Mandan, Hidatsa and Arikara (MHA) Nation during oil and natural gas production facility inspections.

A major part of this case is the reduction of flaring at the facility. Flaring burns harmful natural gas components such as VOCs and methane, but the process is not 100% efficient meaning that in addition to water and carbon dioxide, some methane is still released to the atmosphere. These inefficiencies, exacerbated by improper flare operation or unlit flares, result in excess emissions being released to the atmosphere and can have health impacts on the surrounding communities.