Konoshchenok who is suspected to be an FSB officer would ship or physically smuggle U.S.-origin items from Estonia to Russia, including dual-use electronics, military-grade tactical ammunition and other export-controlled items. Last week, the U.S. government attributed a series of destructive data exfiltration attacks against Albanian government networks to Iran. With todays guilty plea, Modile is revealed as a prolific fraudster and money launderer who has left a trail of fake documents, plundered bank accounts, and financial victims from Brooklyn A three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Mohammad Ibrahim Bazzi, a Lebanese and Belgian citizen, and Talal Chahine As alleged, Carlos Watson is a con man whose business strategy was based on outright deceit and fraud he ran Ozy as a criminal organization rather than as a Eastern District of New York
1836 and Illinois law, copyright infringement, and patent infringement. Assistant U.S. 4 min read. A federal district court judge will determine any sentence after considering the U.S. Even so, "some of their malicious cyber activity can be partially attributable to several" gangs associated with Iran's government. James Corsiglias practice focuses on litigation, particularly securities fraud and other criminal and corporate investigations. Hytera offered these Motorola engineers higher salaries and benefits than they were receiving from Motorola. The Serniya networks clients included State Corporation Rostec, the state-owned defense conglomerate; State Atomic Energy Corporation Rosatom (Rosatom); the Ministry of Defense; the Foreign Intelligence Service (SVR); and various components of the FSB, including the Department of Military Counterintelligence and the Directorate for Scientific and Technological Intelligence, commonly known as Directorate T.. No. A third case filed in New Jersey charges four Chinese nationals, including three government intelligence officers, with conspiracy after they allegedly tried to recruit people to provide information and assistance to the Chinese government over the course of at least 10 years, including university professors and former government officials. NASHVILLE - A lengthy investigation by federal and local law enforcement has resulted in the indictment of 22 individuals for illegally distributing substantial amounts of controlled substances in and around the areas of Maury County and Lewis County, Tennessee. In May 2021, Peizer allegedly entered into his first 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating and that the customer had expressed serious reservations about continuing its contract with Ontrak. An indictment was unsealed this morning in federal court in Brooklyn charging OZY Media Inc. (Ozy), a media and entertainment company headquartered in Mountain View, California, and its founder and Chief Executive Officer, Carlos Watson, with conspiracy to commit securities fraud and conspiracy to commit wire fraud in connection with a scheme to defraud Ozy's investors and lenders by making . Giovanni P. Preziosos practice focuses on securities and corporate law matters. Assistant United States Attorney Artie McConnell and Craig Heeren are in charge of the prosecution, along with Trial Attorney Scott A. Claffee of the National Security Divisions Counterintelligence and Export Control Section, with assistance from Litigation Analyst Ben Richmond. Stunning New Intel! Justice Is Coming! Sunil Gadhias practice focuses on English and international disputes, investigatory and enforcement work. The industries that these illegal transfers could support quantum computing, hypersonic weapons pose great danger in the hands of our adversaries. Our office will not rest in its vigorous pursuit of those who unlawfully procure U.S. technology to be used in furtherance of Russias brutal, continued attacks on democracy., From the outset of the Task Force, robust enforcement of U.S. export controls and restrictions on the transfer of sensitive technology has been a key strategic priority, said Task Force KleptoCapture Director Andrew C. Adams. If convicted of bank fraud or bank fraud conspiracy, the defendants face a maximum of 30 years in prison. Bryan Kohberger, seen during a court hearing in January, has been arrested for the murders of four University of Idaho students in November 2022. An official website of the United States government. The Justice Department has unsealed two indictments related to Russia sanctions. Rule 10b5-1 trading plans can offer an executive a defense to insider trading charges. [3] Indictment, U.S. v. Huawei Technologies Co., Ltd., et al., Cr. As alleged, the defendants were affiliated with Serniya Engineering and Sertal LLC, Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russias military industrial complex and research and development sector. An official website of the United States government. Alexey Brayman, a lawful permanent resident of the United States residing in New Hampshire, and Vadim Yermolenko, a U.S. citizen residing in New Jersey, were also arrested and charged as part of scheme. His lawyers surprisingly wrote a rather condescending letter to DOJ in May 2022, effectively arguing that even if there were still classified records at Mar-a-Lago the FBI lacked the authority. On Aug. 19, 2021, just six days after Peizer adopted his August 10b5-1 plan, Ontrak announced that the customer had terminated its contract and Ontraks stock price declined by more than 44%. The company also allegedly misrepresented information to its financial partners, and sought to obstruct the DOJs investigation into Huawei by transporting witnesses back to China and allegedly destroying evidence. Essential Cookies are always on; to accept Analytics Cookies, click "I agree to all cookies. The indictment alleges that Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Secure .gov websites use HTTPS The scheme relied in part upon BitLocker, a popular cybersecurity encryption product from Microsoft which is used by thousands of clients worldwide. Elizabeth Vicens practice focuses on a broad spectrum of securities enforcement, investigations and compliance, as well as securities litigation, with a concentration in complex, cross-border issues. Merrimack, New Hampshire, VADIM YERMOLENKO [1] Indictment, U.S. v. Hytera Communications Corp., Ltd., et al., 20 CR 688 (N.D. Ill), available at https://www.justice.gov/opa/press-release/file/1469761/download. AGE: 48 As alleged, the defendant violated U.S. law by procuring, smuggling, and repairing counterintelligence operation devices for the benefit of Russias secret police and the North Korean government, stated United States A three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Mohammad Ibrahim Bazzi, a Lebanese and Belgian citizen, and Talal Chahine Kashani defied export restrictions and sanctions against Iran, a country that sponsors international terrorism, stated United States Attorney Peace. Lev L. Dassins practice focuses on complex commercial litigation, white-collar criminal defense, regulatory enforcement matters and internal investigations. As part of its due diligence process, the financial institution asked Watson and Rao to arrange a meeting with someone from a well-known online video service that Watson and his co-conspirators claimed had paid Ozy nearly $6 million in licensing revenue for The Carlos Watson Show. This was another misrepresentation Ozy was never paid by this online video service for Ozy content. The DOJ charged Guochun He and Zheng Wang with attempting to obstruct a criminal prosecution into an unnamed global telecommunications companywhich multiple outlets have identified as Huaweiand He with additional money laundering charges after he allegedly paid $61,000 in Bitcoin to a U.S. government employee. Konoshchenok, a suspected officer with Russias Federal Security Service (FSB), was arrested in Estonia on December 6, 2022 and will undergo extradition proceedings to the United States. She explained, this . Federal Grand Jury A Indictments Announced- June 2022 United States Attorney Clint Johnson today announced the results of the June 2022 Federal Grand Jury A. Todays indictment demonstrates the reach of those controls and the United States commitment to choking off access to military grade equipment by the Russian regime. February 4, 2021. Two of the defendants charged in the Operation Fox Hunt case have been arrested, while the others remain at large, including He and Wang. An indictment is unsealed when made public, typically when a suspect is arrested Sealing indictments is a routine legal. Jonathan S. Kolodners practice focuses on white-collar criminal enforcement and regulatory matters as well as complex commercial litigation. Brandon Bell/Getty Images. Those cases alleged misappropriation of trade secrets under the federal Defend Trade Secrets Act, 18 U.S.C. U.S. Attorney's Office, Eastern District of New York, The Defendants Conspired to Obtain Military-Grade and Dual-Use Technologies from U.S. Companies for Russias Defense Sector, Five Russian Nationals, Including Suspected FSB Officer, and Two U.S. Nationals Charged with Helping the Russian Military and Intelligence Agencies Evade Sanctions, Russian National Charged with Supplying U.S. Technology to the Russian and North Korean Governments, Sanctions Evasion and Money Laundering Charges Unsealed Against Specially Designated Global Terrorist Mohammad Bazzi and Talal Chahine, U.S. Citizen Sentenced to 30 Months in Prison for Conspiring to Provide Electronic Equipment and Technology to the Government of Iran, Five Russian Nationals, Including Suspected FSB Officer, and Two U.S. Nationals Charged With Helping The Russian Military and Intelligence Agencies Evade Sanctions. Victor L. Hous practice focuses on litigation, including government enforcement work, white-collar criminal defense, securities litigation, corporate governance, and general commercial litigation. The Justice Department will continue to vigorously enforce our economic sanctions and export controls against those who enable the Russian government to continue its unjust war in Ukraine. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment. The big picture: The new indictments and cybersecurity advisory is a part of the Biden administrations continuing efforts to crack down on both Iranian cybercriminal and nation-state hacking groups. The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. Konoshchenok discussed fabricating business records with Livshits to conceal the ammunition shipments, on one occasion describing them as auto parts. Incident to Konoshchenoks arrest, Estonian authorities searched a warehouse used by Konoshchenok and recovered approximately 375 pounds worth of ammunition. Following Russias invasion of Ukraine in February 2022, the U.S. Department of the Treasurys Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, Yevgeniy Grinin and several companies used in the scheme, as well as multiple individuals affiliated with the network, including defendant Yevgeniy Grinin, calling them instrumental to the Russian Federations war machine., As alleged in the indictment, Sertal was licensed to conduct highly sensitive and classified procurement activities by Russias Federal Security Service (FSB), Russias principal security agency and the main successor agency to the Soviet Unions KGB. An indictment was unsealed today charging Terren S. Peizer, the CEO and Chairman of the Board of Directors of Ontrak Inc., a publicly traded health care company, for allegedly engaging in an insider trading scheme in which he fraudulently used Rule 10b5-1 trading plans to trade Ontrak stock. In addition to the indictments, the three men were sanctioned by the Treasury Department, and the State Department offered rewards of up to $10 million for information on their whereabouts. The Justice Department announced charges Monday against 13 people allegedly involved in attempts by the Chinese government to influence U.S. operations, including two Chinese nationals who were. Mr. He has been involved in a number of cross-border transactions and proceedings in Brazil and the rest of Latin America, as well as Europe. . Case 9:22-mj-08332-BER Document 18 Entered on FLSD Docket 08/11/2022 Page 4 of 5 1246, as it involves a law enforcement action taken at the property of the 45th President of the United States. . Russia has shown it will use any means necessary to skirt our laws, including illegally procuring sensitive electronic components, for the purpose of bolstering its intelligence services and military wartime capabilities. A locked padlock We will continue the steady pace of seizures, indictments and arrests, while the Kremlin shopping for spare parts in North Korea.. Announced by the Attorney General on March 2 and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Departments tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression. Seven people, including two New York residents, have been indicted in connection with an alleged plot by the Chinese regime to coerce a dissident in the . If convicted, Watson faces a mandatory minimum sentence of two years imprisonment and a maximum sentence of 37 years imprisonment. ", The IRGC is an elite branch of the Iranian military that oversees Iran's international cyber warfare and espionage operations. Main Office
He and Wang face possible prison sentences of up to 40 and 20 years, respectively, if found guilty. If convicted, the defendants face a maximum of 30 years imprisonment. Donald Trump will be indicted by a federal grand jury. They did not succeed, Attorney General Merrick Garland said Monday. Following Russias invasion of Ukraine in February 2022, the U.S. Department of the Treasurys Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, and several companies used in the scheme, as well as multiple individuals affiliated with the network, including defendant Yevgeniy Grinin, calling them instrumental to the Russian Federations war machine., As alleged, the defendants perpetrated a sophisticated procurement network that illegally obtained sensitive U.S. technology to facilitate the Russian war machine, said U.S. Attorney Breon Peace for the Eastern District of New York. Todays indictment demonstrates the reach of those controls and the United States commitment to choking off access to military grade equipment by the Russian regime. . sanctioned the Iranian Ministry of Intelligence. Instead, the indictment alleges the actors were demanding to be paid themselves," the official said. Justice Department accuses China of spying on, intimidating dissidents living in U.S. The indictment reflects a continuing pattern of the United States Government aggressively pursuing trade secrets cases under the Espionage Act against Chinese companies. Several hours after the Justice Department unsealed the indictments, the Treasury Department announced new sanctions against 10 Iranian nationals and two Iranian tech companies. If convicted, he faces a maximum penalty of 25 years in prison on the securities fraud scheme charge and 20 years in prison on each of the insider trading charges. AGE: 41 Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including in the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true identity(s) of Russian end users of U.S.-origin equipment. Joon H. Kims practice focuses on white-collar criminal defense, internal corporate investigations, regulatory enforcement, and crisis management, as well as complex commercial litigation and arbitration. Todays actions represent outstanding collaborative work by FBI New York and our partners who have relentlessly disrupted these illicit activities, a mission that has become increasingly more critical following Russia's invasion of Ukraine, and sends a strong message to those who jeopardize the national security of the United States, stated FBI Special Agent-in-Charge Driscoll. Age: 52 Share sensitive information only on official, secure websites. Rahul Mukhis practice focuses on criminal, securities, and other enforcement and regulatory matters as well as on complex commercial litigation. Between approximately 2018 and 2021, Watson and his co-conspirators, including Rao and Han, orchestrated a scheme to defraud investors in and lenders to Ozy of tens of millions of dollars through fraudulent misrepresentations and omissions about key aspects of Ozys business, including Ozys financial results, debts, and audience size. The three men are affiliated with Iran's elite Islamic Revolutionary Guard Corps. Posted: Feb 28, 2023 / 04:42 PM EST. A lock ( Livshits also interfaced directly with U.S. companies often using the alias David Wetzky and made materially false statements about how the items would be used and the ultimate end user. FBI Director Christopher Wray, speaks to reporters at the Department of Justice in Washington on October 23. Elizabeth Vicens practice focuses on a broad spectrum of securities enforcement, investigations and compliance, as well as securities litigation, with a concentration in complex, cross-border. As alleged in the indictment, Ippolitov received requests from Russian end users and relayed them to Grinin and Skvortsova, who were both employees of Sertal. Ahmadi, Aghda and Ravari were among those sanctioned, and the two tech sanctioned companies are where the defendants work. David E. Brodskys practice focuses on securities enforcement, white-collar criminal defense and internal investigations. Sam Bankman-Fried was hit with new criminal charges on Thursday, in an expanded indictment accusing the founder of the now-bankrupt FTX cryptocurrency exchange of conspiring to make more than 300 . [3] In November 2018, the DOJ unsealed an indictment against Taiwan-based United Microelectronics Corporation, Inc., (UMC) and Fujian Jinhua Integrated Circuit Co., Ltd. (Fujian Jinhua), a state-owned enterprise of the Peoples Republic of China. Obama, Biden, Hillary, Brennan & Schiff Next! The U.S. government then announced further charges against Huawei in February 2020, accusing the company of conspiracy to steal trade secrets and alleging Huawei and its subsidiaries have stolen intellectual property from U.S. technology companies in order to bolster their own business. Fax Line: 718-254-7508. The indictment charged Vladimir Voronchenko, a Russian who is a permanent U.S. Fall trial planned for man charged with killing mom at sea By LISA RATHKE February 7, 2023 In addition to Treasury and Justice, the State Department also took action against the three alleged cybercriminals, announcing rewards of up to $10 million for information about any of them. Have a question about Government Services? No. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1. Brooklyn NY 11201, Telephone: 718-254-7000
When members of the financial institution later spoke with Watson, he falsely claimed that Rao had acted alone and as a result of a mental breakdown. The governments case is being handled by the Offices Business and Securities Fraud Section. The FBI and our partners in law enforcement will hold any individual willing to defraud investors and financial institutions accountable in the criminal justice system, stated Assistant Director-in-Charge Driscoll. [1] Updated: Feb 28, 2023 / 03:42 PM EST. We continue to protect military and dual-use technologies from adversaries seeking to undermine the United States or bring harm to our allies. The three men allegedly defrauded a township in New Jersey, a county in Wyoming,a regional electric power company in Mississippi and another in Indiana, a public housing authority in Washington state and a statewide bar association in an unnamed state. The indictment represents the first time that the Department of Justice has brought criminal insider trading charges based exclusively onan executives use of10b5-1 trading plans. I have finally seen enough. Investment fraud undermines confidence in our nations markets and investors and makes it harder for honest businesses to compete. ) or https:// means youve safely connected to the .gov website. Our Office will not rest in its vigorous pursuit of persons who unlawfully procure U.S. technology to be used in furtherance of Russias brutal war on democracy., Today the Department of Justice proves once again that we will relentlessly pursue those who support the Russian war machine by evading sanctions and export controls, stated Deputy Attorney General Monaco. 18-457 (E.D.N.Y. Secure .gov websites use HTTPS However, the defense is unavailable if the executive is in possession of material, nonpublic information at the time he or she enters into the 10b5-1 trading plan. Attorney General Merrick Garland said the United States would stand "shoulder to shoulder" with Ukraine. The indictment also alleges that a Hytera employee testified in the civil case that an individual defendant was fired in the fall of 2018 for refusing to cooperate with Hyteras internal investigation, when in fact [they] worked for Hytera from no later than December 2018, throughout the trial of the Civil Case, to at least June 22, 2020.. A .gov website belongs to an official government organization in the United States. On or about February 2, 2021, Rao had a call with employees of the financial institution during which he impersonated a media executive from the online video service using a voice alteration application that he downloaded onto his cellular telephone to mask his voice during the call. Publicly filed court documents, including a 16-count indictment unsealed today in Brooklyn, charge five Russian nationals including a suspected Federal Security Service (FSB) officer and two U.S. nationals with conspiracy and other charges related to a global procurement and money laundering scheme on behalf of the Russian government in which the defendants allegedly conspired to obtain military-grade and dual-use technologies from U.S. companies for Russias defense sector, and to smuggle sniper rifle ammunition, in violation of new U.S. sanctions imposed earlier this year. The combined grand juries returned 32 unsealed and four . He also fabricated shipping documents and invoices and repackaged and reshipped items to intermediate destinations around the world before eventually arriving in Russia. Secure .gov websites use HTTPS The individuals face four charges, including conspiracy to commit fraud and related activity in connection with computers and intentional damage to a protected computer. The Grand Jury further charges: From at least in or about 2019, up to and including in or about November 2022, in the Southern District of New York, and elsewhere, SAMUEL BANKMAN-FRIED, a/k/a "SBF . New Durham Indictments! Driving the news: The defendants are accused of "exploiting known or publicly disclosed vulnerabilities in commonly used network devices and software programs to get access to victims' computer networks," per a senior DOJ official. Nastco. (718) 254-6323. As this case shows, we have embraced the use of data to proactively identify and investigate fraud as we continue to ensure that ordinary investors are on an equal playing field with corporate insiders.. U.S. Attorney's Office, Eastern District of New York, Watson and Ozy Senior Executives Allegedly Defrauded Investors of Tens of Millions of Dollars Through Fraudulent Misrepresentations and Impersonated Media Company Executives During Negotiations, Ozy Media and Its Founder Carlos Watson Indicted in a Years-Long Multi-Million Dollar Fraud Scheme, Nigerian National Pleads Guilty to Multi-Million Dollar Fraud Schemes and Money Laundering, Sanctions Evasion and Money Laundering Charges Unsealed Against Specially Designated Global Terrorist Mohammad Bazzi and Talal Chahine, Ozy Media and Its Founder Carlos Watson Indicted In a Years Long Multi Million Dollar Fraud Scheme. 08/12/2022 04:15 PM EDT. Matthew C. Solomon has significant experience in complex and high-stakes civil and criminal matters, having served for 15 years with the U.S. Department of Justice. Brooklyn NY 11201, Telephone: 718-254-7000
Upper Saddle River, New Jersey, John Marzulli It also provides an interesting case study in the interplay between civil litigation that parallels a criminal investigation. Got a confidential news tip? A .gov website belongs to an official government organization in the United States. A three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Mohammad Ibrahim Bazzi, a Lebanese and Belgian citizen, and Talal Chahine, a Lebanese citizen, with conspiracy to conduct and cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist, attempt to conduct and cause United . With three of the defendants now in custody, we have disrupted the procurement network allegedly used by the defendants and Russian intelligence services to smuggle sniper rifle ammunition and sensitive electronic components into Russia. The Department of Justice unsealed indictments against three North Korean hackers accused of stealing more than one billion in cryptocurrency, but that's just the tip of the iceberg. Two Arrested and 13 Charged in Three Separate Cases for Alleged Participation in Malign Schemes in the United States on Behalf of the Government of the Peoples Republic of China (Department of Justice), Chinas Huawei Charged With Racketeering, Stealing Trade Secrets (Wall Street Journal), Canada Will Release Huawei Executive In Deal With U.S. (Forbes), Operation Fox Hunt: How China Exports Repression Using a Network of Spies Hidden in Plain Sight (ProPublica), Justice Department accuses China of spying on, intimidating dissidents living in U.S. (Reuters), This is a BETA experience. I am grateful for the tireless efforts of the Departments Task Force KleptoCapture, the National Security Division, the Office of International Affairs, the U.S. Attorneys Office for the Eastern District of New York, and the FBI on this case., Today the Department of Justice proves once again that we will relentlessly pursue those who support the Russian war machine by evading sanctions and export controls, said Deputy Attorney General Lisa O. Monaco. It's little secret that corporations targeted by ransomware attacks often choose to pay the ransom to the attackers instead of alerting law enforcement out of fear that news of the attack will spook investors and customers. The Department of Justice building on Aug. 18. Former SEC Chair Jay Clayton weighs in on Sam Bankman-Fried's arrest, charges A federal indictment was unsealed Tuesday alleging widespread fraud by FTX co-founder Sam Bankman-Fried, a day. Grinin and Skvortsova secured funding and shipping routes for the transactions, and tasked Livshits with procuring the items from U.S. companies. Why it matters: U.S. indictments of international cybercriminals send a clear message that law enforcement knows who is a part of a flourishing overseas hacking groups and make it difficult for defendants to leave their home countries without risking arrest. We want to hear from you. Matthew C. Solomon has significant experience in complex and high-stakes civil and criminal matters, having served for 15 years with the U.S. Department of Justice and the U.S. Securities and Exchange Commissionincluding most recently as the SECs Chief Litigation Counsel. Konoshchenok discussed fabricating business records with Livshits to conceal the ammunition shipments, on one occasion describing them as auto parts. Incident to Konoshchenoks arrest, Estonian authorities searched a warehouse held in the name of Konoshchenoks son and recovered approximately 375 pounds worth of ammunition. Mountain View, California, John Marzulli Grinin, Ippolitov, Livshits and Skvortsova are further charged with conspiracy to violate the International Emergency Economic Powers Act (IEEPA); wire fraud; and money laundering. Brayman will be arraigned in New Hampshire and Yermolenko will be arraigned in the Eastern District of New York. The records listing evidence were made public on Tuesday after police arrested Bryan Kohberger at his parents' home in December. Federal Grand Jury A Indictments Announced- September 2022 United States Attorney Clint Johnson today announced the results of the September 2022 Federal Grand Jury A. Washington The Justice Department on Monday unsealed charges in three separate cases accusing more than a dozen defendants, most of them Chinese officials, of participating in schemes to . I am grateful for the tireless efforts of the Departments Task Force KleptoCapture, the National Security Division, the Office of International Affairs, the U.S. Attorneys Office for the Eastern District of New York, and the FBI on this case., As alleged, the defendants perpetrated a sophisticated procurement network that illegally obtained sensitive U.S. technology to facilitate the Russian war machine, stated United States Attorney Peace.