Source: United States Department of Justice 2

Unleashing American Energy was one of President Donald J. Trump’s first actions, and it includes infrastructure like pipelines and oil and gas export facilities. Recently, the Justice Department’s Environment and Natural Resources Division (ENRD) secured four wins in court that underpin the intentions of the president’s executive order.

The Dakota Access Pipeline crosses Lake Oahe in North Dakota. The U.S. Army Corps of Engineers is currently preparing a supplemental environmental impact statement which the District Court for the District of Columbia ordered for the pipeline’s easement. Last year, the Corps was sued again to shut down the pipeline while they work on that statement, but ENRD last month was granted its motion to dismiss that lawsuit.

In the Sixth Circuit Court of Appeals, a Tennessee pipeline company was essentially allowed to go ahead and build a pipeline to deliver natural gas to the Tennessee Valley Authority for a new gas power plant. The court denied a petition for review of the Corp’s permit to the company and upheld its reliance on Tennessee’s certification of the project under the Clean Water Act’s Section 401.

The Fifth Circuit Court of Appeals issued a published decision affirming the Corps decision to issue a permit for a proposed expansion of an oil-export facility in Texas. The court held that the Corps thoroughly analyzed the effects of issuing the permit and properly assessed the project’s scope.

The D.C. Circuit Court of Appeals denied plaintiffs’ petition for review of a Department of Energy (DOE) action to authorize exporting liquefied natural gas from a proposed terminal on the Kenai Peninsula in Alaska. The gas is to come from Alaska’s north slope and would be transported to the terminal via a proposed pipeline across the state. The Federal Energy Regulatory Commission had previously authorized where the project’s facilities would be, and DOE authorized and reaffirmed exporting the gas. This development will help unleash Alaska’s extraordinary resource potential, in keeping with the administration’s directive.

Source: United States Department of Justice Criminal Division

A former senior executive of a Michigan asphalt paving company was sentenced today to six months in prison and a $20,000 fine for his role in a conspiracy to rig bids for asphalt paving services contracts in Michigan.

Timothy Baugher, former president of Pontiac-based Asphalt Specialists LLC (ASI), pleaded guilty to conspiring with F. Allied Construction Company Inc. (Allied), and employees from those companies to rig bids in each other’s favor on Jan. 8. According to court documents, the co-conspirators coordinated each other’s bid prices so that the agreed-upon losing company would submit intentionally non-competitive bids. These bids gave customers the false impression of competition when, in fact, the co-conspirators already had decided among themselves who would win the contracts. Baugher participated in the conspiracy from July 2017 through May 2021.

Baugher’s former employer, ASI, and another former ASI executive also pleaded guilty for their participation in the conspiracy with Allied in January 2024. Allied and two of its executives previously pleaded guilty in August 2023 for their participation in the conspiracy. On Aug. 15, 2024, ASI was sentenced to pay a fine of $6,500,000.

“There is nothing impressive, just, or indeed lawful about rigging bids with your competitors to ‘win’ a contract,” said Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “As the court itself noted, white-collar criminals mistakenly expect better treatment than blue-collar criminals. The Antitrust Division and its law enforcement partners will enforce the law against all individuals who seek to cheat and deprive the public of the benefits of competition.”

Baugher is one of seven individuals that have been charged as part of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the asphalt paving services industry. Three companies also have been charged as part of the investigation, which, to date, has resulted in over $8.1 million in criminal fines.

The Antitrust Division’s Chicago Office is prosecuting the case, which was investigated with the assistance of the Offices of Inspectors General for the U.S. Department of Transportation and U.S. Postal Service.

Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

Source: United States Department of Justice Criminal Division

Yesterday, a district court judge convicted a Virginia man, who worked for the Department of Commerce, of possessing and receiving child sexual abuse material (CSAM).

According to court documents and evidence presented at trial, Rafferty Daniel Kelly, 40, of Alexandria, worked for the U.S. Patent and Trademark Office. In March 2022, a federal CSAM investigation involving an internet-based peer-to-peer file sharing service, a program used by the defendant to obtain CSAM, led federal agents to execute a search warrant at Kelly’s home, where they seized multiple devices. A review of those devices revealed that, over a period of at least two years, Kelly had downloaded and stored over 50,000 images of CSAM and child erotica, including images of infants and prepubescent children. Kelly also possessed a handbook on how to groom children.

At the end of the bench trial yesterday, the Honorable Michael S. Nachmanoff found Kelly guilty of one count of receipt of child pornography and one count of possession of child pornography. The defendant is scheduled to be sentenced on July 24 and faces a mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison. Judge Nachmanoff will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, United States Attorney Erik S. Siebert for the Eastern District of Virginia, and Special Agent in Charge Sean Ryan of the FBI Washington Field Office’s Criminal and Cyber Division made the announcement.

Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Vanessa Strobbe for the Eastern District of Virginia are prosecuting the case.

This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.