Category: US Department of Justice

Source: United States Department of Justice Criminal Division

On July 2, a federal court enjoined a Louisiana company from manufacturing and distributing adulterated food products in violation of the Federal Food, Drug and Cosmetic Act (FDCA).

In a civil complaint filed on June 10, the United States alleged that Freshy Foods, LLC, Team Fresh & Go, LLC and its owners, Floyd D. James and Ida M. James, violated the FDCA at their food processing facility in Elmwood, Louisiana by manufacturing and distributing adulterated food products. The defendants manufactured and distributed ready-to-eat food products, including sandwiches and fruit cups. The complaint alleged that environmental tests in 2023 detected Listeria monocytogenes (L. mono), the pathogen that can cause listeriosis, in the defendants’ facility. The complaint also alleged that a 2023 U.S. Food and Drug Administration (FDA) inspection identified insanitary conditions at the facility. According to the complaint, the defendants voluntarily withdrew their registration to process FDA-regulated food in August 2023.

“Food manufacturers must ensure the safety of their food products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department works closely with the FDA to pursue appropriate legal actions against food manufacturers who fail to adhere to laws designed to protect public health.”

“The FDA will continue to stress that it’s the responsibility of food manufacturers to ensure they are producing food under safe and sanitary conditions,” said Deputy Commissioner Jim Jones for Human Foods at the FDA. “When a company consistently fails to demonstrate that they are capable of upholding their legal responsibilities, the FDA will seek to hold them accountable.”

The defendants filed an answer denying the government’s allegations, but also agreed to settle the suit by entering into a consent decree. The order entered by the court permanently enjoins the defendants from violating the FDCA. The consent decree also requires, subject to limited exceptions, that the defendants notify FDA and comply with specific remedial measures prior to resuming the manufacture of any FDA-regulated food products.

Trial Attorneys Colin W. Trundle and Kathryn A. Schmidt of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Sandra Lee Sears for the Eastern District of Louisiana handled the case, with assistance from Assistant Chief Counsel Sarah Rosenberg of FDA’s Office of the Chief Counsel.

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.

The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.

Source: United States Department of Justice Criminal Division

An Indiana man was sentenced today to 14 months in prison for sending a communication that included death threats to an election worker in Michigan shortly after the November 2020 election. 

“The Justice Department has no tolerance for violent threats against election workers, officials, and volunteers, and as this case demonstrates, we will aggressively investigate and prosecute such threats to the fullest extent of the law,” said Attorney General Merrick B. Garland. “We will continue to defend the right to vote and to defend the safety of the public servants who make voting possible.”

“The defendant repeatedly threatened the life of a Michigan election worker because she publicly defended the integrity of the 2020 election that she helped administer,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Our democracy depends on the willingness of election workers to do their jobs without having to live in fear. Today’s sentence should serve as yet another reminder that the Justice Department will not hesitate to prosecute those who threaten violence to influence how our public servants administer elections.”

According to court documents, on or about Nov. 10, 2020, Andrew Nickels, 38, of Carmel, called the clerk of a local municipality and left a voicemail threatening to kill the local official. As part of the message, Nickels said, in part, “We’re watching your…mouth talk about how you think that there’s no irregularities … [Y]ou frauded out America of a real election.” Nickels then told the clerk that “you’re gonna pay for it,” and described how “ten million plus patriots will surround you when you least expect it.” He continued, in relevant part: “[W]e’ll [expletive] kill you…[Y]ou will [expletive] pay for your [expletive] lying ass remarks … We will [expletive] take you out. [Expletive] your family, [expletive] your life, and you deserve a [expletive] throat to the knife … Watch your [expletive] back … watch your [expletive] back.”

“Threats such as the ones that Nickels made undermine our democracy by making elections workers fearful for their lives and for the safety of their families—just for doing their jobs,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “This sentence should send a clear message that those who seeks to jeopardize the fair and free administration of our elections with threats of violence will be vigorously prosecuted and held accountable.”

“The FBI and its partners will not tolerate threats against our election workers,” said Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch. “Today’s sentencing shows our commitment to ensuring that public servants can do their jobs without fear of retribution.”

Nickels pleaded guilty on Feb. 27 to one count of making a threatening interstate communication.

The FBI Detroit Field Office investigated the case.

Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Frances Lee Carlson for the Eastern District of Michigan prosecuted the case.

This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers—whether elected, appointed, or volunteer—are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. The task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.

The task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

Source: United States Department of Justice Criminal Division

Note: View the plea agreement for Nikolay Goltsev here and plea agreement for Salimdzhon Nasriddinov here.

Nikolay Goltsev, 38, of Montreal, and Salimdzhon Nasriddinov, 53, of Brooklyn, New York, pleaded guilty today to conspiracy to commit export control violations for their roles in a global procurement scheme on behalf of sanctioned Russian companies, including Russian military companies. Some of the electronic components shipped by the defendants were later found in seized Russian weapons platforms and signals intelligence equipment in Ukraine.

“The defendants shipped millions of dollars of U.S. electronics critical to the missiles and drones Russia uses to attack Ukraine, and they now face U.S. prison time for their scheme,” said Deputy Attorney General Lisa Monaco. “As Russia continues to wage its unjust war of aggression against Ukraine, the Department remains committed to holding accountable those who fuel Putin’s war machine.”

“The defendants shipped millions of dollars’ worth of electronic components to Russia, including the exact type of parts found in Russian weapons and drones used to attack Ukraine,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We know the devastation and destruction that these weapons cause and the Justice Department is committed to holding accountable those who violate U.S. laws to supply the Russian war machine.”

“Eliminating illegal global procurement networks that prop up the Russian war machine requires a full-court press,” said Assistant Secretary of Commerce Matthew S. Axelrod for Export Enforcement. “That’s why we and our law enforcement partners are working nonstop to ensure that those operating such networks like Nasriddinov and Goltsev face American justice.”

“The defendants flouted U.S. law to help Russia in its war against Ukraine, but they were stopped in their tracks and swiftly brought to justice,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s guilty pleas reflect that that this Office will take on and successfully neutralize the complicated procurement networks that are making it possible for Russia to continue its unprovoked war against Ukraine.”

“The defendants in this case engaged in an illegal scheme to funnel electronic components to Russia to use in its unjust invasion of Ukraine,” said Executive Assistant Director Robert Wells of the FBI’s National Security Branch. “They tried to disguise their activities using front companies but were ultimately discovered and brought to justice. The FBI will continue working with our partners to investigate and hold accountable those who violate sanctions in support of adversarial nations.”

“With today’s guilty pleas, all three defendants have acknowledged their involvement in their scheme to provide more than $7 million worth of material support to the Kremlin in its inhumane attacks on Ukraine,” said Special Agent in Charge Ivan J. Arvelo of Homeland Security Investigations (HSI) New York. “Nikolay Goltsev, Salimdzhon Nasriddinov, and their co-conspirator coordinated the deployment of over 300 shipments of restricted electronics that were ultimately used on the Russian battlefield. HSI New York remains committed to utilizing its unique authorities to relentlessly pursue individuals who seek to exploit U.S. export control laws for financial gain. I am proud to stand alongside the Justice Department, FBI, and Department of Commerce in confronting these issues directly.”

According to court documents, Goltsev and Nasriddinov used two Brooklyn companies, SH Brothers Inc. and SN Electronics Inc., to unlawfully source, purchase, and ship millions of dollars in dual-use electronics from U.S. manufacturers to sanctioned end users in Russia. Some of the electronic components and integrated circuits shipped by the defendants through SH Brothers have been found in seized Russian weapons platforms and signals intelligence equipment in Ukraine, including the Torn-MDM radio reconnaissance complex, the RB-301B “Borisoglebsk-2” electronic warfare complex, the Izdeliye 305E light multi-purpose guided missile, the Vitebsk L370 airborne counter missile system, Ka-52 helicopters, Orlan-10 unmanned aerial vehicles (UAVs) and T-72B3 battle tanks. Some of these components were critical to Russia’s precision-guided weapons systems being used against Ukraine. During the period charged in the indictment, SH Brothers made hundreds of shipments valued at over $7 million to Russia.

To carry out their criminal scheme, Nasriddinov and Goltsev purchased the electronic components from U.S. manufacturers and distributors under the auspices of SH Brothers and SN Electronics and arranged for the items to be shipped from those manufacturers and distributors to various locations in Brooklyn. Nasriddinov and Goltsev then unlawfully shipped the items to a variety of intermediary front companies located in other countries, including Turkey, Hong Kong, India, China, and the United Arab Emirates, where they were rerouted to Russia.

The defendants were aware of the potential military applications of the electronics that they exported to Russia. For example, in a message exchange on or about and between Nov. 8, 2022, and Nov. 15, 2022, Goltsev commented how shipping to Russia had become “dangerous” and discussed a shipment of electronic components that had been detained by U.S. officials at John F. Kennedy International Airport in Queens, New York. Nasriddinov responded that “Ukrainians alleged that they’re being bombed from parts from there [the U.S. manufacturer], maybe that’s why they started investigating everything?” Goltsev responded that “we need to figure out why they keep holding the package . . . I don’t really understand how they figured [it] out.” In a subsequent message, Goltsev commented that, “in the future we will need to load from several companies, not to attract attention . . . for now large packages will be dangerous until we understand what they figured out . . . we will need to think of diversifying the load . . . so that not everything is not moving from the same deck.”

In a Feb. 23, 2023, message, Nasriddinov wrote to Goltsev, “Happy Defender of the Fatherland,” referring the holiday in Russia and parts of the former Soviet Union celebrating those who served in the armed forces. Goltsev responded, “happy holiday to you too my friend, we are defending it in the way that we can [smile emoji].”

The scheme involved millions of dollars and proved to be lucrative for the defendants. For example, in a Sept. 15, 2022, text message from Nasriddinov to Goltsev, Nasriddinov boasted, “SH [Brothers] is one of the best companies in the world, it’s time to move forward onto the stock exchange and stock market, capital should be in the billions, we are working.” Goltsev responded, “pushing components to those who need it I can do, everything else you will have to teach me [three smile emojis].”

The government seized $20,000 in cash from the New York hotel room in which Goltsev was arrested. In total, the government has seized approximately $1.68 million dollars in connection with this export scheme.

Goltsev and Nasriddinov are scheduled to be sentenced on Dec. 10 and Dec. 11, respectively. They each face 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.

Co-defendant Kristina Puzyreva pleaded guilty in February to conspiracy to launder the proceeds of the export scheme. She is awaiting sentencing.

The FBI, HSI and Department of Commerce, Export Enforcement are investigating the case, with assistance from the U.S. Customs and Border Protection and Justice Department’s Office of International Affairs.

Trial Attorney Christopher M. Cook of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Artie McConnell, Ellen H. Sise, and Laura Mantell for the Eastern District of New York are prosecuting the case.

Today’s actions were coordinated through the Justice and Commerce Departments’ Disruptive Technology Strike Force and the Justice Department’s Task Force KleptoCapture. The Disruptive Technology Strike Force is 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. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine

Source: United States Department of Justice Criminal Division

Richard Zagger, of Blue Point, New York, pleaded guilty today to a charge of conspiracy and three charges of obstruction. A sentencing hearing is scheduled for Oct. 16.

The four-count indictment alleges that Zagger was a supervisor for Northridge Construction Corporation, located in East Patchogue, Long Island, New York. On Dec. 8, 2018, Zagger was overseeing employees of Northridge Construction Corporation who were constructing a metal shed on the Northridge property. During the construction, one of the employees fell from the improperly secured shed roof and died.

The Occupational Safety and Health Administration (OSHA) investigated the employee’s death and violations of worker safety standards. Among other worker safety standards, OSHA regulations require maintaining the stability of a metal structure at all times during construction. The indictment charges that during the investigation, Zagger made false statements and conspired with others to make false statements to obstruct the federal agency’s inquiry. 

The maximum penalty for the conspiracy count and each obstruction count is five years in prison and a $250,000 fine, or twice the economic gain to the defendant or loss suffered by the victim because of the crime.

Also, in regards to the same fatal incident, Northridge previously pleaded guilty to violating a worker safety standard causing the death of one of its employees and to making two false statements that obstructed OSHA’s investigation. The corporation is scheduled to be sentenced on Aug. 6.

Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division made the announcement.

The Department of Labor’s Office of the Inspector General investigated the case.

Senior Trial Attorneys Daniel Dooher and Richard J. Powers and Trial Attorney Rachel Roberts of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.

Source: United States Department of Justice Criminal Division

Saleem Hakim was sentenced today to four years in prison following his conviction in January on charges of tax evasion and failing to file tax returns.

According to court documents and evidence introduced at trial, during at least the years 2009 through 2013, Hakim was in the business of brokering the sale of precious metals to clients. Hakim earned more than $2.8 million in commissions for converting cash to precious metals for his clients during those years which enabled him to fund a lavish lifestyle that included purchases of high-end watches, jewelry, designer accessories and furs. Despite earning substantial income during 2009 through 2013, he did not file income tax returns for those years. Hakim last filed an income tax return for tax year 1999.

The evidence introduced at trial additionally showed that, from 2020 through 2022, Hakim and his wife worked for businesses in Atlanta that were engaged in the purchase and sale of jewelry and luxury handbags. The Hakims earned a combined income of more than $260,000 for those years but did not file returns. The evidence also established that Hakim attempted to conceal his and his wife’s income from the IRS by diverting their income into a trust that he established after being initially charged with tax crimes for the years 2011 through 2013.

Hakim attempted to obstruct the investigation into his tax misconduct for 2020 through 2022. After a witness received a grand jury subpoena for records relating to income that the witness paid to Hakim and his wife, Hakim drafted a letter for the witness falsely stating that the witness did not have any business records in his possession relating to the Hakims and asked the witness to send the letter. The witness sent the letter to federal prosecutors and IRS agents.

In addition to his prison sentence, U.S. District Judge Michael L. Brown for the Northern District of Georgia ordered Hakim to serve three years of supervised release and pay $1,219,225.73 in restitution to the IRS, and $4,490.52 in prosecution costs.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Melissa S. Siskind and Colleen McCarthy of the Justice Department’s Tax Division prosecuted the case.

Acting Deputy Assistant Attorney General Goldberg thanked the U.S. Attorney’s Office for the Northern District of Georgia for the substantial assistance they provided in the investigation and prosecution of this matter. Acting Deputy Assistant Attorney General Goldberg also thanked Trial Attorney Christina Grimes and former Trial Attorneys Jeffrey Bender and Kathryn Carpenter of the Tax Division who previously worked on this matter.