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Category: Security Intelligence

  • MIL-OSI Security: Deputy Assistant Attorney General Roger Alford Delivers Remarks at the College of Europe’s Global Competition Law Centre

    Source: United States Attorneys General 13

    Designing a System to Secure the Fair Administration of Competition Laws

    I am delighted to be with you today to discuss how competition authorities can promote fundamental due process in competition investigation and enforcement.  Ten years ago this topic would not have been high on the agenda for competition enforcers.  Today, in a globalized economy with over 130 competition enforcers, almost everyone agrees that convergence on due process is an important aspect of competition enforcement.  So the question is not whether we should promote due process, but how best to do so.  While guidelines, recommendations, and best practices are useful and important, the international competition community is ready to do more.  We should actively promote effective compliance to fundamental due process through a multilateral framework on procedures through which parties commit to basic fundamental norms, and that framework should be open for signature by all competition authorities.

    To ensure due process for all, it is essential to have a system in place to promote compliance.  Former Irish Foreign Minister Seán MacBride, a Nobel Peace Prize Laureate and a founder of the European Convention on Human Rights, noted that guarantees such as the “right to the fair administration of justice” will “never be adequately or efficiently protected without a system of machinery to enforce their application, a system of implementation for the rights declared.”  Today, I would like to discuss recent international efforts to design a system to secure the administration of competition laws according to due process principles.      

    For years, many jurisdictions, including the United States, have promoted due process in competition investigations and enforcement at home and abroad.  Former Assistant Attorney General Bill Baer emphasized that “in a global economy, competition and consumers are best served where corporations and individuals have confidence that they will be treated fairly wherever they do business.”  Adherence to due process principles helps agencies reach the right decision and improves the quality of antitrust enforcement overall.  Due process also enhances the reputation of competition authorities. 

    Many competition authorities around the world have joined in this effort to promote due process, including initiatives to promote due process at the ICN and OECD, leading to the current proposal, the Multilateral Framework on Procedures.

    As many of you know, in early June 2018, Assistant Attorney General Makan Delrahim discussed publicly our months-long cooperation with leading antitrust agencies on an initiative to craft the Multilateral Framework on Procedures in Competition Law Investigation and Enforcement (“MFP”).  The MFP’s goal is to promote global due process in antitrust enforcement and thereby further improve cooperation among antitrust agencies around the world.  The United States and our partners around the world agree that basic minimal due process protections are of fundamental importance in antitrust enforcement.

    The goal of the MFP is to establish minimal procedural norms that are truly universal.  The MFP is animated by fundamental norms, which are accepted widely across the globe and that most competition agencies already recognize.  The MFP will combine this set of universal procedural norms with an adherence and review mechanism, under which the participants commit to these norms and agree to cooperate with each other regarding their compliance.

    The fundamental principles set forth in the MFP were derived from the texts of competition chapters in several existing bilateral and regional agreements, as well as from the work related to due process conducted by international organizations such as the OECD and the ICN, in conjunction with an examination of procedures and practices of competition authorities around the world.

    The draft text captures universal principles, using language that is versatile enough to cover both common as well as civil law jurisdictions, administrative as well as prosecutorial systems, and older as well as younger competition agencies.

    The core principles identified in the MFP include basic commitments regarding non-discrimination, transparency, meaningful engagement, timely resolution, confidentiality protections, avoidance of conflicts of interest, proper notice, opportunity to defend, access to counsel, and independent judicial review of enforcement decisions.

    The adherence and review mechanism under the MFP includes bilateral discussions and consultations between participating agencies, reporting by participants on the working of the MFP principles, as well as a proposed mechanism to review periodically any changes as may be needed.  The adherence and review mechanisms under the MFP are an important step forward towards a mutual commitment amongst agency partners.  The MFP also represents a substantial positive effort towards global respect for competition enforcement and the overall culture of competition we collectively have sought to promote. 

    The MFP is not a binding agreement in the international sense, but adhering to the framework is important, because breaches of a promise can have reputational consequences.  As Assistant Attorney General Makan Delrahim said in June, “The rich network of relationships ensures that reputation matters, and that the promise to abide by an obligation becomes a potent means of enhancing compliance.”

    Dozens of competition agencies from around the world have been spending countless hours and many months working on the MFP.  The initial discussions culminated in the “Paris Draft” of the MFP, a remarkable document that reflects the current practices of many leading competition authorities around the world.

    Over the summer, further discussions ensued among all interested antitrust agencies worldwide, including discussions with agencies on the sidelines of the Fordham Conference in New York in early September.  A revised draft of the MFP was circulated recently, reflecting suggestions made at New York and since.  We look forward to meeting with those interested in joining the MFP on the margins of the OECD in late November.

    There has been widespread support for the MFP from numerous agencies around the world.  We are delighted that so many countries are committed to the MFP and recognize its value, and will continue efforts to further improve it and move toward its enactment.

    To date, the vast majority of agencies have expressed strong support for the MFP.  A few agencies, however, have expressed some concerns with respect to the MFP structure and review mechanism.  Let me address the more salient concerns. 

    First, a few agencies had raised questions about the need for mandatory review mechanisms.  In general, a review mechanism is a key component of any agreement such as the MFP.  The goal of the MFP is to strike a constructive path, promoting incremental progress through an acceptable implementation mechanism.

    In light of these concerns, the review mechanisms in the MFP have been calibrated so that they are meaningful, but not burdensome.  For example, unlike certain treaties, there are no mechanisms for binding dispute settlement, third-party mediation, independent expert reports, or private complaint procedures.  Instead, there are modest proposals that include mechanisms for dialogue, agency self-reporting on adherence, and periodic assessments of the functioning of the framework, only as needed.  This will allow for advancing the shared goals towards due process norms.

    It is important to note that although meaningful review mechanisms of agreements relating to due process may appear novel in the antitrust context, they are routine in other contexts.  For example, meaningful review of a country’s compliance with fundamental due process norms is common in the context of investment protections, human rights, anti-corruption, trade, tax, and development assistance.  

    In fact, even in the antitrust context, review mechanisms are not new.  For example, in free trade agreements there are consultation provisions in various competition chapters.  Likewise, in 2006 the European Competition Network (ECN) adopted the ECN Model Leniency Programme to “harmonise the key elements of leniency policies within the ECN.”  In 2009, the ECN published an assessment report to “provide an overview of the status of convergence of the applicable provisions contained in the ECN leniency programmes.”  If a network of regional competition authorities can agree to periodically assess the state of procedural convergence of their leniency programs, it seems only reasonable to have competition authorities periodically assess the state of procedural convergence on fundamental due process.     

    A second issue presented related to the possibility that the MFP can be confused to create a new international organization.  The language has been modified to make it clear that the MFP does not create a new international organization.  Instead, the MFP is a new multilateral arrangement for adherence to fundamental due process norms by the signatory agencies.

    A third issue was whether certain competition agencies have the capacity to sign at the agency level.  This was a fair concern, and we are pleased to have revised the draft to make clear that agencies can either sign or join the MFP by sending a letter through ICN providing notice of adherence.  This is a common practice that has been employed previously in many contexts, including in the antitrust context.  This change should allow any competition agency interested in joining the MFP to do so.

    I should also note that although all of the interested agencies working on the MFP hope that every agency adheres to these principles, that the MFP is voluntary.  Only agencies that want to join will be subject to the norms.  Also, the MFP allows an agency to take a reservation if their law allows them to comply with almost everything but prevents compliance with a specific provision. 

    The international community can and should seek to promote convergence on core principles, while respecting diversity on the margins.  That is what the MFP does.

    Finally, let me address the issue that Commissioner Margrethe Vestager raised in her remarks at the Georgetown University conference regarding the relationship between the MFP and international organizations such as OECD and ICN.  The Antitrust Division fully supports initiatives by OECD, ICN and other international organizations to promote due process.  Indeed, the substantive principles set forth in the MFP are fully in line with – and, in fact, complement – these initiatives. 

    The ICN already recognizes regional competition networks like the ECN, bilateral and trilateral dialogues like those held by the North American partners last week in Mexico, competition chapters in free trade agreements such as KORUS and USMCA, and hundreds of cooperation agreements between competition authorities.  Despite these developments, the ICN is as strong as ever, and the MFP will further complement its success.  Indeed, the ICN expressly anticipates initiatives such as the MFP. The ICN Framework provides that “where the ICN reaches consensus on recommendations … it is left to its members to decide whether and how to implement the recommendations, for example, through unilateral, bilateral or multilateral arrangements.” 

    From the start, the MFP has been designed to go beyond mere guidance on procedural fairness.  The MFP will reflect the commitment of its participants to uphold fundamental due process norms.

    There are various other reasons why we believe the MFP is needed and does not duplicate the OECD or ICN.  For example, the OECD has only 36 members, and its recommendations apply to countries rather than to competition agencies, where we would like to focus our efforts.  And while around 140 agencies are members of the ICN, not all agencies are ICN members, though we encourage all to join.

    Further, as currently structured the ICN is not set up for accountability and review of its recommendations.  It has never had that role and it could dramatically change the culture of the ICN if it were to take on such a role, although at a later time the ICN may choose to change its culture.  That time is not now, however, as we don’t want to risk the consensus-based good work the ICN does.

    Let me close with an historical analogy.  In 1948, the Universal Declaration of Human Rights was adopted, which included the fundamental due process commitment that “everyone is entitled in full equality to a fair and public hearing by an independent and impartial tribunal, in the determination of his rights and obligations….”  Yet at the very moment the U.S. delegate Eleanor Roosevelt was celebrating that victory, she said she still was not satisfied.  Why?  Because the declaration had no means for implementation.  She said that while the adoption of this declaration was a monumental achievement, we should “now move on with new courage and inspiration to the completion” of a multilateral agreement with “measures for … implementation.”  We all recognize that the time is ripe for us to join in moving forward with inspiration to implementation of a multilateral framework on fundamental due process. 

    We look forward to further discussions on the MFP in Paris in a few weeks.  A significant number of competition authorities have recognized the benefits of the MFP and we look forward to being a partner in working together to bring it to fruition. 

    Thank you.

    MIL Security OSI –

  • MIL-OSI Security: Acting Attorney General Matthew Whitaker Delivers Remarks to the Department of Justice Rural and Tribal Elder Justice Summit

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Thank you, Marc for that kind introduction and thank you for your leadership as United States Attorney for the Southern District of Iowa.  I think you’ll agree with me that it’s one of the best jobs in the world.

    This is a distinguished crowd.  Thank you to:

    • Iowa Attorney General Tom Miller
    • Six U.S. Attorneys: Bryan Schroder, Trent Shores, Ron Parsons, Andrew Murray, Pete Deegan, and Marc Krickbaum
    • the head of our Office of Justice Programs and former U.S. Attorney for Northern Iowa, Matt Dummermuth,
    • Katie Sullivan, the head of our Office on Violence Against Women,
    • Darlene Hutchinson, the Director of our Office for Victims of Crime,
    • Assistant Agriculture Secretary Anne Hazlett,
    • Assistant Secretary Lance Robertson of HHS,
    • SEC Regional Director Joel Levin,
    • Postal Inspector Guy Cottrell,
    • Acting Commissioner of the Social Security Administration Nancy Berryhill,
    • Director Deborah Cox Roush of Senior Corps, and
    • A special thanks to all those who made this event possible, especially Toni Bacon, Andy Mao, Kate Peterson, and their teams at the Elder Justice Initiative and the Office for Victims of Crime.

    Thank you all for being here for this summit.  I think this turnout shows how important these issues are to the Department of Justice and to the Trump administration.

    It’s good to be home.  Des Moines is my home.  This is where I played football, where I practiced law, where I prosecuted criminals as a United States Attorney, and it’s where I’m raising my family.

    Iowa shaped my values.

    One of those Iowa values is that we respect our elders.  We recognize the debt that we owe to our parents and grandparents.

    Many seniors in Iowa and across America spent their whole lives working, saving, and sacrificing so that they could enjoy a secure and peaceful retirement.  And under President Trump their 401(k)s are looking good.

    But criminals can try to take it all away with one phone call, one letter, or even one email.

    Each year, an estimated $3 billion are stolen or defrauded from millions of American seniors.  Through so-called grandparent scams, fake prizes or even outright extortion, criminals target our seniors to rob them of their hard-earned savings and their peace of mind.

    And it appears as though this threat is only growing.  The Senate Aging Committee’s Fraud Hotline received twice as many reports in 2016 as it received in 2015.

    These fraud schemes can happen to anyone. And so I hope that no one will feel ashamed to come forward and report if they’ve been a victim.  Some of my family members here in Iowa have received these phone calls.  Some of you have, too.

    At the Department of Justice, we acknowledge that rural areas are especially vulnerable to these crimes.

    In tightly knit communities like the one I grew up in, people are generous and they develop a sense of trust with one another.

    Criminals look at that and they see dollar signs.

    Oftentimes local law enforcement in rural communities have to cover large areas of land with only a small number of officers.  They don’t have the time or the resources to investigate fraud schemes that are often national or even international in scope.

    Fortunately, the Department of Justice has their backs.  As President Donald Trump has said, this administration supports state and local law enforcement 100 percent.

    In this administration, we are well aware that 85 percent of law enforcement officers in this country serve at the state and local levels.  We know that we can’t achieve our goals without them.

    Over the past year we have taken historic new action to support our state and local partners and to keep our seniors safe.

    This year our U.S. Attorneys’ offices have each designated an elder justice coordinator to help prevent crime by educating seniors about scams and other threats.  Over just nine months, our elder justice coordinators participated in nearly 200 training, outreach, and coordination meetings attended by approximately 7,000 people.

    Our elder justice coordinators are also customizing our strategy to protect seniors in their district and coordinating our prosecutions with state and local partners.  That will help us complete more cases and secure more convictions.

    In February, the Department conducted the largest elder fraud enforcement action in American history.  We charged more than 200 defendants with fraud against elderly Americans and we brought civil actions against dozens more. The defendants in these cases allegedly stole from more than one million American seniors of more than half a billion dollars.

    Just a few weeks ago, the Department extended a deferred prosecution agreement with a financial services company in Dallas.  This company allegedly knew about criminals using their services for money laundering, but didn’t do anything about it.  Some of their employees even took part in the schemes—including grandparent scams and fake prize scams targeting the elderly.  In exchange for avoiding prosecution, the company is forfeiting $125 million which the Department will provide to the victims.  The company has also agreed to implement anti-money laundering protections to prevent these crimes from ever happening again.

    There are a lot of other cases that we could talk about—but I’ll just mention two right here in Iowa.

    This year, a total of 33 defendants in Dubuque—11 at the federal level and 22 at the local level—have been convicted for a grandparent scam against a total of 285 American seniors.  The defendants defrauding more than $750,000 and then wiring it to their co-conspirators in the Dominican Republic.  Now they’ve been held accountable.

    At the federal level, these cases were prosecuted by AUSA Tony Morfitt of our Elder Justice Task Force—Tony, great job.

    In August, a jury convicted a man from outside of Des Moines for convincing elderly Iowans to sell off their investments and buy insurance from him.  Instead of buying the insurance as promised, the defendant used most of the funds for personal expenses like remodeling his house and buying two new Harley Davidsons.  I’m pleased to report that that house and those motorcycles have now been forfeited. 

    This case was investigated by the FBI and prosecuted by Adam Kerndt and Mikaela Shotwell.  Great work.

    These are important accomplishments.  We have increased the resources dedicated to these cases and we have increased our effectiveness in prosecuting them.

    But there is more to do.  And so today I am announcing our next steps.

    First of all, we are improving training for our U.S. Attorneys’ offices. 

    Earlier this year the Department’s Elder Justice Initiative published its Elder Abuse Guide for Law Enforcement or EAGLE.  EAGLE contains helpful information for prosecutors, including overviews of state and local law as well as best practices for evidence collection, interviewing older adults, and for documenting elder abuse.  EAGLE is free and available right now to every law enforcement officer in the country.

    Today I am announcing that the next edition of our Journal of Justice Policy and the Law—formerly known as the USA Bulletin—will focus on Elder Justice.  It will also be the longest bulletin we’ve ever published since we started it back in 1953.  These bulletins are public, and so they can be used by state and local prosecutors as well as our U.S. Attorneys’ offices.  That will provide the knowledge and insights of some of the top experts on elder justice to the prosecutors who are on the front lines.

    Second, we are investing in services for seniors who have been victimized by criminals.

    I am announcing today that over the next 11 months, our Office for Victims of Crime will provide nearly $18 million to help seniors who are victims of crime.  These funds can be used for priorities like legal services, telephone hotlines, and housing for seniors who have lost their homes—which is something that happens all too often.  We are using these OVC funds for a wider variety of services for seniors than ever before.

    And finally, we are continuing to enforce the law aggressively and forcefully.

    On October 1st, the Department began our Money Mule Initiative, which is a coordinated effort against the transnational criminal organizations who are defrauding our seniors.

    We are hitting the fraudsters where it hurts—in the wallet.

    Our prosecutors have found that fraudsters avoid using banks to launder the money they take from their victims. Instead, they launder it through so-called money mules—Americans who collect the money and then send it overseas.

    Oftentimes these are co-conspirators—as in the Dubuque case that I mentioned a moment ago.  But sometimes they are simply good people who have been tricked into thinking that they are doing charity work or working for a legitimate business. 

    Working with our Postal Inspectors, FBI agents, and other law enforcement partners, we have identified a number of these money mules across America.  We have even been able to determine which ones have been tricked into this work and which ones are knowing and willful conspirators.

    In the first case, we knock on their door and we explain to them what’s really going on.  We ask them to sign a letter acknowledging that it’s wrong and promising to stop.  That in itself is shutting off large quantities of money for the fraudsters.

    And in the second case—when we determine that they are part of a conspiracy—we are filing civil actions and taking them to court.

    Since October 1, we’ve taken action to stop 400 money mules across 65 districts.  These involve everything from grandparent scams to romance scams, fake lotteries, IRS imposters, and fake tech support schemes.

    The FBI and our Postal Inspectors have interviewed 300 money mules and sent 300 warning letters.  We’ve charged 10 defendants and filed 25 civil actions.  We’ve executed search warrants across America, including here in the Southern District of Iowa.

    These are impressive numbers. 

    Our goal is to reduce crime and protect America’s seniors.  And we have good reasons to believe that our work with our law enforcement partners is reducing crime and having a real impact on the seniors of this country.

    The Postal Inspection Service has estimated that payments by mass mail fraud victims to foreign post office boxes has dropped by 94 percent since 2016—from 150,000 per month to approximately 10,000 per month now.

    There are many causes for that, but that is a remarkable achievement—and I want to thank everyone who has played a role in our efforts.

    We are going to keep up this pace. 

    We are going to continue to provide our prosecutors and our state and local partners with the resources that they need.  And we’re going to keep putting fraudsters in jail.

    I want to thank each of you again for your contribution to this effort.  Each of us has a role to play—and certainly not just those of us in government.  All of us can be on the lookout for fraud schemes and report suspected criminal activity.

    If we do that—and if we remain vigilant—then we can ensure that every senior has the safety and peace of mind that they deserve.

    MIL Security OSI –

  • MIL-OSI Security: Acting Attorney General Matthew Whitaker Delivers Remarks to State and Local Law Enforcement on Efforts to Combat Violent Crime and the Opioid Crisis

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Thank you, Marc for that kind introduction and thank you for your leadership as United States Attorney.  You are carrying the torch on a lot of the work that we did back when I was U.S. Attorney for this district.

    Thank you also to:

    • Commissioner Roxann Ryan and Director of Investigative Operations Kevin Winker of the Iowa Department of Public Safety,
    • Acting Director Joyce Flinn of the Iowa Department of Homeland Security and Emergency Management,
    • Marshall County Sheriff Steve Hoffman,
    • Marion County Sheriff Jason Sandholdt,
    • Chief Dana Wingert and Major Stephen Waymire of the Des Moines Police Department,
    • Chief Chad McCluskey of Windsor Heights,
    • Chief Al Pizzano of Pleasant Hill,
    • Chief John Quinn of Waukee,
    • Chief Greg Stallman of Altoona,
    • Chief Michael Tupper of Marshalltown,
    • Polk County Attorney John Sarcone,
    • David Lorenzen, Motor Vehicle Enforcement Chief with the Iowa Department of Transportation, and
    • Polk County Chief Medical Examiner Dr. Gregory Schmunk.

    Thank you all for being here.

    It is good to be back. 

    This is the office where I served for nearly five and a half years.  It was the honor of a lifetime, and it was an experience that only deepened my appreciation for law enforcement.

    I worked every day with officers from the federal, state, and local levels—including people in this room—to find evidence of crime and to keep the people of Iowa safe.

    I am proud of what we accomplished together.

    I am especially proud because I have seen the results firsthand.  This is the community where I grew up, where I played football, where I went to law school and business school, where I ran a small business, and where I’m still raising my family.  I know that Iowans are safer because of what we achieved.

    Some of you may have heard that there have been some changes at the Department in recent weeks.  One thing that hasn’t changed is our unwavering support for state and local law enforcement.

    The Trump administration will always be a law-and-order administration.  We recognize that public safety is government’s first and most important task—and we honor the role that law enforcement officers play in protecting our society.

    Our federal officers are known all over the world for their professionalism and their competence.

    But we are well aware that about 85 percent of the law enforcement officers in this country serve at the state and local levels.  It is simple arithmetic that we cannot succeed without you.

    That is why this Department of Justice under President Donald Trump has given you more resources and more tools to help you succeed.

    One of President Trump’s very first Executive Orders to Attorney General Sessions was to “back the blue” and enhance the safety of law enforcement officers in this country.

    We have embraced that goal and we’ve been faithful to it every day.

    Over these last two years we have helped hire hundreds of police officers across America, including 10 here in Iowa.

    We have reinvigorated the Project Safe Neighborhoods program, which directs our U.S. Attorneys to work with you to develop a customized crime reduction plan—and to target the most violent criminals in the most violent areas.

    I ran this program as United States Attorney and I know that it works.  We are more successful at the federal level when we listen to our partners at the state and local levels.

    Our strong law enforcement partnerships are paying off.

    In fiscal year 2017, the Department of Justice prosecuted more violent criminals than in any year on record to that point.

    And then, in fiscal year 2018—we broke that record by a margin of 15 percent.

    In fiscal year 2018, we charged the highest number of federal firearm defendants in Department history.  We broke that record by a margin of 17 percent.  We charged nearly 20 percent more firearm defendants than we did in 2017 and 30 percent more than we charged in 2016.

    Over the past fiscal year we also broke records for fentanyl prosecutions and for illegal entry by illegal aliens.

    At the same time, we increased the number of white collar defendants and the number of drug defendants overall.  And we increased the number of deported illegal aliens prosecuted for re-entering our country by 38 percent.

    These are remarkable achievements.  There can be no doubt that they have had an impact on this nation.  And we’ve achieved them together with you, our partners.

    The evidence is already coming in that we’ve reduced violent crime and drug overdose deaths.

    The FBI’s violent crime numbers for 2017 show that violent crime and murder both went down in 2017 after increasing for two years in a row.  And for 2018, one estimate projects that the murder rate in our 29 biggest cities will decline by 7.6 percent.

    The DEA’s National Prescription Audit shows that in the first eight months of 2018, opioid prescriptions went down by nearly 12 percent—and last year they went down by seven percent.

    While 2017 saw more overdose deaths than 2016, overdose deaths declined by two percent from September 2017 to March 2018, the most recent month for which we have data.

    This is what we can achieve when we work together.

    Our work is not finished.  We are going to continue to support our state and local partners—and I believe that our partnerships are going to continue to deliver results.

    I want to conclude with something a mentor of mine used to say every time he spoke to law enforcement, and I believe it too: we have your back, and you have our thanks.

    MIL Security OSI –

  • MIL-OSI Security: Principal Deputy Associate Attorney General Jesse Panuccio Delivers Remarks to the American Bar Association Section of Antitrust Law Fall Forum

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Good morning.  Thank you, Jim, for that kind introduction, and special thanks to you and your co-chair of this Fall Forum, Debbie Feinstein, for inviting me.  It is an honor to join the distinguished attorneys in attendance here.

    As you just heard, the Office of the Associate Attorney General works closely with the Antitrust Division, and I’d like to begin by saying just a few words about the men and women who work there.  The Division is led by a superlative team.  Assistant Attorney General Makan Delrahim is an expert in the field and a tireless advocate for the American consumer.  Andrew Finch, his principal deputy, draws on his broad private-sector antitrust experience to supervise all aspects of the Division’s civil and criminal matters.  Barry Nigro, another deputy, is a walking encyclopedia of merger law and practice.  And the many other front office appointees bring to the Division an incredible breadth and depth of knowledge and determination.  Behind them, of course, stand the career lawyers, economists, and staff of the Antitrust Division who, as many of you know firsthand, are smart, resourceful, and tenacious in upholding the law and protecting competition for the benefit of the American economy.  We appreciate their public service and hard work, and we are so fortunate that they have chosen to lend their expertise and talent to our shared mission at the Department of Justice.

    Speaking of which, it is worth reciting the DOJ mission statement for those of you who have never heard it.  It reads as follows: “To enforce the law and defend the interests of the United States according to the law; to ensure public safety against threats foreign and domestic; to provide federal leadership in preventing and controlling crime; to seek just punishment for those guilty of unlawful behavior; and to ensure fair and impartial administration of justice for all Americans.”  Much of this mission statement is outward facing—we are the cops and we go after the robbers.  But the first and last clauses of the mission statement require something more: we must “enforce the law” and “ensure fair and impartial administration of justice.”  And if we are truly to “enforce the law” and fairly administer justice, we cannot be focused solely on how legal commands apply to those outside the Department.  We must also focus on how the law constrains and cabins the Department—and the federal government as a whole.

    This is a theme, and a tension, as old as our government itself.  James Madison, famously lamenting in Federalist 51 that men are not angels and thus need a government, explained: “In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself.”  Our government is adept at creating rules to control the governed, but it sometimes fails to control itself.  Over the last two years, some of our priorities at the Department have been aimed at this latter virtue—at controlling ourselves.

    I would like to discuss one of those priorities today—namely, regulatory reform, which is an imperative need for an administrative state that has grown mightily over the last seventy-five years and in ways that Madison and his compatriots could have never imagined when they created the checks and balances they thought would oblige the government to control itself.

    Early in 2017, the President issued several executive orders on regulatory reform.  For example, Executive Order 13771 directs agencies to eliminate two regulations for each new one and to impose zero net regulatory costs.  Executive Order 13777 directs agency heads to appoint Regulatory Reform Officers and Task Forces to implement regulatory reform initiatives and identify burdensome regulations for repeal, replacement, or modification.  These are important measures.  As Neomi Rao, Administrator of the Office of Information and Regulatory Affairs (OIRA), recently explained in a Washington Post editorial, lifting unduly burdensome regulations promotes economic growth and “the spirit of liberty that animates our productive and innovative society.”

    Accordingly, at the Department of Justice, we take this regulatory reform mandate very seriously.  While the Department does not generate the same volume of regulations as, say, the Environmental Protection Agency, we do have components that issue regulations, such as the Drug Enforcement Agency, which regulates doctors, pharmacies, and hospitals under the Controlled Substances Act; the Bureau of Alcohol, Tobacco, and Firearms, which regulates the firearms and explosives industries; and the Civil Rights Division, which regulates state and local governments, public accommodations, and commercial facilities under the Americans with Disabilities Act.  Each of these components is working to ensure that their regulatory agendas comply with the executive orders. 

    But, in my view, the Department’s most critical contribution to regulatory reform has not come by way of any particular substantive regulatory change, but rather through our focus on improving the regulatory process by promoting transparency, accountability, and public participation.  Such procedural reforms can often outlive more newsworthy substantive changes to individual rules, and they can lead to better and less burdensome substantive decisionmaking.

    One of the first areas of procedural reform we focused upon is reigning in the use of guidance documents.  To understand why this is so important, let me first set the stage by returning to Federalist 51.  There, Madison wrote that “[i]n republican government, the legislative authority necessarily predominates.”  Accordingly, as Madison explained in Federalist 48, “it is against the enterprising ambition of this department that the people ought to indulge all their jealousy and exhaust all their precautions.”  Acting on this belief, the Founders wrote a Constitution in which the first article (establishing Congress) is much more finely wrought than, and is more than double the length of, the second article (establishing the executive).  The Founders viewed the legislative branch—with the power to make policy and thus restrict liberty—as the foremost danger among equals, and thus much more carefully cabined that branch through structural protections (or “precautions” as Madison called them in both Federalist 48 and 51).

    But we twenty-first century Americans, for better or worse, live in the age of the administrative state, where most substantive rules that are binding on the People are created by Executive Branch agencies exercising rulemaking powers delegated by Congress.  That means that the threat from the “enterprising ambition” that Madison feared now comes more often from the administrators than from the legislators.  Accordingly, we also need procedural protections—“precautions,” as Madison called them—to cabin those ambitions. 

    We have some such protections in the form of the Administrative Procedure Act.  When Congress delegates to an executive agency the authority to regulate—that is, to create binding rights and obligations for the public—the APA normally requires that such authority be exercised through notice-and-comment rulemaking.  These rulemaking processes require a lot of input and serious deliberation; there are many steps, and they sometimes proceed slowly or not at all.  They are designed this way, just like the Constitution is designed to require many steps for the enactment of statutes.  Process protects liberty. 

    But regulators like to regulate, and everyone likes a shortcut.  So it has come to pass that, with increasing frequency, administrative agencies, including the Department of Justice, issue so-called guidance documents that effectively bind the public.  The guidance documents do not go through the notice-and-comment process required by the APA; indeed, they do not go through any transparent or regularized process at all.  They just spring forth fully formed, and the public is expected to comply.  Some commentators have begun to call such guidance, perhaps fairly, “regulatory dark matter.”  The threat such a regime poses to our constitutional structure, and the liberty it protects, is manifest.

    Accordingly, with this in mind, in November 2017, Attorney General Sessions signed a memorandum prohibiting the Department of Justice from issuing guidance documents that “impose new requirements on entities outside the Executive Branch.”  The memorandum lays out five principles that must govern any future guidance, including that the document should disclaim any force or effect of law and “should not be used for the purpose of coercing persons or entities” to take or refrain from taking any actions beyond what is already required under the law.

    A few months later, in January 2018, we took the next step to reign in inappropriate use of subregulatory guidance.  The Associate Attorney General issued a new policy that prohibits the use of agency guidance documents in affirmative civil litigation in a manner that would convert such guidance into binding rules of conduct.  This ensures that DOJ will not do with another agency’s guidance what it cannot do with its own under the Sessions Memo.  As the memorandum explains: “That a party fails to comply with agency guidance expanding upon statutory or regulatory requirements does not mean that the party violated those underlying legal requirements; agency guidance documents cannot create any additional legal obligations.”

    Now, I realize that I am at an antitrust, and not an administrative law, conference.  So what does all of this mean for the Antitrust Division?  Well, the Division, often in conjunction with the Federal Trade Commission, has issued numerous guidance documents, including, for example, intellectual property guidelines and, of course, the horizontal merger guidelines.  Under our view, none of these guidelines create binding rights or rules that have the force of law.  The guidelines can be useful in ensuring transparency by explaining how the Antitrust Division uses its prosecutorial discretion.  But the Antitrust Division will not treat a violation of the guidelines as presumptively or conclusively establishing a violation of the underlying legal requirements.  The Division must bring cases in court if it seeks to assert that a violation of the law has occurred, and it must prove such a violation by reference to statutory law and judicial precedent.

    With that, let me turn from the dark matter of guidance documents to another particle in the regulatory cosmos, but one that is even less visible: the consent decree.

    A consent decree is a binding court judgment, and it can serve an important function in a range of cases and enforcement areas.  But some consent decree are voluminous in their requirements and have virtually perpetual life.  They are, in effect, a set of regulations for a single party, overseen by the Department of Justice, a federal judge, and, quite often, a private-party monitor appointed by the court.  In practice, consent decrees can result in one or all of these entities directing the day-to-day operations of a business or local government agency for years on end.  As should be obvious from the description, such a regime can be as intrusive as—if not more intrusive than—a regulation.

    Thirty years ago, Assistant Attorney General Rick Rule, whom many of you know, gave a speech about telecommunications policy to the Brookings Institution.  He noted that the Reagan Administration’s best known accomplishment in antitrust law was the breakup of AT&T.   The ongoing monitoring required under the AT&T consent decree, however, created, in his words, a “mixed legacy” because of the institutional harms flowing from requiring the Antitrust Division and a federal court to be, in effect, telecommunications regulators.  Federal courts and the Antitrust Division, Rule said, “inherently lack many of the resources crucial to successful regulation.”  He explained that effective regulation requires technical expertise, regulatory experience, and administrative processes that federal courts and federal prosecutors simply lack.

    That is one problem, but it is not the only problem.  Some consent decrees stray not only beyond the practical resources and expertise of the enforcers, but also beyond the legal authority of what the government could do by other means.  Imposing conditions that could not be obtained through litigation to judgment is similar to creating regulations beyond the bounds of law.  And just because a court imposes such a decree does not make it appropriate or wise.  Courts, like executive branch agencies, can exceed their powers and distort constitutional norms.  As with our commitment to abstaining from regulation through guidance, the Department of Justice must take care to avoid going beyond our lawful authority through the entry of consent decrees.

    Accordingly, while consent decrees can be necessary and appropriate in certain circumstances, we are requiring Department litigators in all components to proceed with due caution and care before entering into new cosent decrees.  Effective consent decree management is a key part of our regulatory reform and good government efforts. 

    And, as with our other efforts, the Antitrust Division has been doing its part.  For example, last year, at this every forum, Assistant Attorney General Delrahim gave a speech on antitrust and deregulation.  He made the case that a behavioral consent decree substitutes regulation for competition.  He also announced that the Antitrust Division would disfavor behavioral consent decrees, calling them “the wolf of regulation dressed in . . . sheep’s clothing.”   Indeed.  The notion that the Department of Justice can fine-tune the operations of large businesses, for years on end, to prevent competitive harm is simply untenable from a first principles standpoint and unwarranted from a pro-competitive and pro-liberty standpoint. 

    Avoiding behavioral consent decrees is not the only step that the Antitrust Division is taking in this area.  Earlier this year, the Division launched its Judgment Termination Initiative, through which the Division is identifying and terminating legacy consent decrees that no longer protect competition.  To understand why this is important, it is helpful to turn again to something Administrator Rao explained earlier this year.  She described the problem of “cumulative regulations.”   When the government is always adding regulations but never repealing old ones, regulatory accretion occurs—the regulatory text expands and expands, with some regulations serving no purpose and others affirmatively harming economic growth and American competitiveness.

    Consent decrees can suffer from the same infirmity.  Indeed, from the first cases brought under the Sherman Act until 1979, antitrust consent decrees were perpetual.  In that year, the Division changed its policy such that future settlements would have “sunset” provisions that would automatically terminate a decree on a date certain, usually after ten years.  But while the Division recognized forty years ago that perpetual decrees were not in the public interest, there has been no effort to address the perpetual decrees that were entered prior to that date. 

    Until now.  Assistant Attorney General Delrahim and his team deserve great credit for tackling this issue.  And there is a lot of work to do.  There are nearly 1,300 legacy judgments still on the books, including some decrees that are more than one hundred years old.  There is, for example, a decree from 1914 concerning rubber hoof pads for horseshoes.  Another one from 1921 relates to music rolls for player pianos.  And yet another, my personal favorite, controls the market for horse-buggy whips.  This state of affairs, my friends, is not good government.  This is not prudent and careful regulatory action.  This is ancient, cosmic junk unnecessarily floating around the regulatory atmosphere.

    These outdated decrees pose a particular problem given the common-law nature of the antitrust laws, the construction of which evolve through judicial decisionmaking closely informed by economic analysis.  Under the Sherman Act, only unreasonable—which is to say anticompetitive—restraints of trade are condemned.  Courts look to economic analysis to understand what is unreasonable.  And as economic analysis has matured and been refined over decades, courts have recognized that certain practices, once condemned, are not only not harmful to competition, but can even be procompetitive.

    The Supreme Court’s 2007 decision in the Leegin case provides one example of such a change.   In that case, the Court overturned a nearly century-old per se prohibition on resale price maintenance.   It recognized that resale price maintenance can help stimulate interbrand competition.  The antitrust laws are designed to protect just such competition because it is output enhancing.  By contrast, intrabrand competition, such as when independent retailers engage in a price war to undersell a product from the same manufacturer, is not output enhancing.

    Yet a perpetual consent decree related to resale price maintenance entered any year between 1911 and 1979 would have frozen the old prohibition in place.  Such an ongoing, indefinite prohibition against lawful behavior does not serve to protect competition or to advance the rule of law.  Indeed, it affirmatively undermines both.

    Perpetual consent decrees rarely continue to protect competition, and those that are more than ten years old should be terminated absent compelling circumstances.  To expedite the termination of outdated consent decrees, the Antitrust Division has engaged in a comprehensive effort to review all of its legacy judgments.  Each judgment was assigned to a Division attorney, who examined court papers, internal case files, and publicly available information to determine whether the judgment continued to serve competition.  Judgments for which termination is recommended are then posted, by judicial district, to the Division’s website for a thirty-day public comment period.

    The judgments in sixty of seventy-nine judicial districts have been posted to the Division’s website for public comment.  Once the thirty-day public comment period closes for a particular judicial district, the Division will review any comments received and, if appropriate, prepare a motion to terminate the judgments.

    Already, in July, the Division moved to terminate nineteen legacy judgments in the District Court here in the District of Columbia.  And the court granted that motion on August 15.  The Division is actively working to prepare other motions in other districts.

    The Division will move to terminate such decrees where the essential terms of the judgment have been satisfied, where most defendants no longer exist, where the judgment largely prohibits that which the antitrust laws already prohibit, or where market conditions likely have changed.  Of course, as with the Leegin example, the Division will also seek to terminate decrees for which the relevant antitrust jurisprudence has changed and the conduct prohibited might actually be procompetitive.

    I know that the Judgment Termination Initiative is a top priority for AAG Delrahim and the Division.  I applaud the hard work that has gone into this effort already and the commitment of the Division to see it through.

    With that, let me close by saying thank you, again, for the opportunity to be here.  We are hard at work at the Department of Justice, including at the Antitrust Division, in our efforts to enforce the law and fairly administer justice.  As I have stated, that includes applying the limits of the law to ourselves, or, as Madison put it, to controlling ourselves.  We will continue to advance this cause, and we hope it makes a difference in helping the American people and economy flourish.  Thank you very much.

    MIL Security OSI –

  • MIL-OSI Security: Acting Attorney General Matthew Whitaker Delivers Remarks at the Department of Justice’s Veterans Appreciation Day Ceremony

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Thank you, Lee for that kind introduction and thank you for your 36 years of service to the Department of Justice and your 12 years of stewardship of the Department’s finances.

    I also want to thank the Joint Armed Forces Color Guard for the Presentation of the Colors and Girale Wilson-Takahashi from our COPS office for that beautiful rendition of the National Anthem.

    Thank you all for being here for the Department’s eighth Veterans’ Appreciation Day.

    Above all, thank you to the 150 veterans who have joined us today.

    Thank you for your service in our Armed Forces—and thank you for your service in this Department.

    At this Department of Justice, we recognize that public safety is government’s first and most important priority.

    The men and women of our Armed Forces—Army, Navy, Marines, Air Force, Coast Guard—risk their lives for that mission every day, and each of us owes them a debt of gratitude.

    This Department also works for public safety by enforcing our laws—but we know that our work depends upon the bravery and sacrifice of our troops.

    We are proud of each one of the 27,000 veterans who serve in this Department.

    Your skills, your patriotism, and above all your selfless character make you the kind of employees that any employer would want.  But you’ve chosen to continue to serve your country—you’ve chosen to work in the Department of Justice.  I commend you for that.

    We are well aware that heroes walk these hallways.

    Outside of my office is a memorial with the names of colleagues who during World War II made the ultimate sacrifice in the defense of our grateful country.

    I also know firsthand of the heroes we have in department, because I am now literally surrounded by them each and every day.  Most of the FBI agents in my security detail are veterans.

    That includes Special Agent Damon Flores, who is a former Navy rescue swimmer in the Mediterranean and in the Persian Gulf.  After his service in the Navy, he went to college on the GI Bill and got an accounting and finance degree.  He quickly realized that accounting was not as exciting as being a rescue swimmer.  He wanted a little more adventure, and so he signed up with the FBI.  He marked his 14th anniversary with the Bureau just yesterday.  Damon, congratulations.

    We’re also proud to be the home of Maura Quinn of DEA.

    Maura graduated from the Naval Academy, and then in flight school she chose to fly helicopters so she could pilot a combat aircraft.  After graduation she deployed twice—first with a carrier battle group to the Indian Ocean and then in support of Operation Desert Shield. 

    She served as an instructor pilot for two years and went to law school at night.  As if she weren’t busy enough, she gave birth to two children before graduation.

    After law school, she joined the United States Attorney’s Office in the Southern District of California and then the FBI’s Office of General Counsel.  She then served for eight years in the Chief Counsel’s office at DEA.  Over that time she became an expert in technology law—and today she serves as DEA’s Deputy Assistant Administrator for Information Systems.  Maura, thank you for your service.

    I could go on and on.  There are roughly 26,998 more examples that I could talk about.

    But this is the caliber of people that we are so grateful to have in this Department.

    Through our Veterans Employment Office in the Justice Management Division, we have made hiring veterans a priority and helped them make the transition into careers with the Department.

    We want more exemplary employees like Damon Flores and Maura Quinn.

    We will continue to invest in our heroes—because you’re a good investment.  You are, in the words of General John Kelly, “the very best this country produces.”

    Now I have the honor of introducing someone who knows that as well as anyone.

    Our keynote speaker is the Director of Military Force Management Policy for the Air Force, Major General Robert LaBrutta.  You might think of him as the Air Force’s head of human resources.

    Major General LaBrutta has served in the Air Force for the last 37 years.

    Today he is responsible for setting force management policy that affects more than half a million Air Force personnel—issues like assignments, evaluation, readiness, and transitioning back to civilian life.

    Before this assignment he served as Commander of the Second Air Force at Keesler Air Force Base in Biloxi, Mississippi.

    He has earned a number of distinguished awards including the Defense Superior Service Medal, the Legion of Merit, the Meritorious Service Medal, the Air Force Commendation Medal, the Air Force Achievement Medal, and many others.

    Please join me in welcoming Major General Robert LaBrutta.

    MIL Security OSI –

  • MIL-OSI Security: Assistant Attorney General Makan Delrahim Remarks at the American Bar Association Antitrust Section Fall Forum

    Source: United States Attorneys General 13

    “November Rain”: Antitrust Enforcement on Behalf of American Consumers and Taxpayers

    Good morning, and thank you for the kind introduction.  I’d like to thank the American Bar Association for your invitation to this year’s Fall Forum and Deb Garza for her leadership of the Section this year. 

    I find it hard to believe it’s been only a little more than a year since I was confirmed as AAG and spoke at last year’s Fall Forum.  Over the past year, the Antitrust Division has been hard at work on behalf of American consumers. We made a number of significant enforcement actions this week, but before I turn to those, I’d like to update you on a few recent changes in the Front Office. 

    First, Michael Murray recently joined us from the Deputy Attorney General’s office, where he served as Associate Deputy Attorney General.  Mike now will be a Deputy Assistant Attorney General in the Front Office, where he will be overseeing our Appellate Section and our 4A damage actions on behalf of the American taxpayer.  Mike has significant appellate experience, including as a law clerk for Justice Anthony Kennedy. 

    In addition, our new acting Deputy Assistant Attorney General for Economics is Jeff Wilder.  Jeff received his Ph.D. from MIT and has distinguished himself as an outstanding economist serving as one of the leaders in the Division’s Economic Analysis Group, and we’re happy to have him join us in the Front Office.

    Some of you may remember that at last year’s Fall Forum, I spoke about antitrust and deregulation.  In those remarks, I focused on remedies, including our preference for structural remedies and our emphasis on making consent decrees more enforceable.  I also discussed our commitment to the view that antitrust enforcement is law enforcement, not industrial regulation, and that the Antitrust Division should strive to accomplish its law enforcement mission in the most efficient and effective way possible.  The Division has stood by those principles. 

    More recently, in a speech at Georgetown, I announced several improvements to the merger review process.  We are making good on those changes as well.  Today, we posted a model timing agreement and a model voluntary request letter on our website.  Those documents increase transparency and predictability and will help merging businesses and their counsel know what to expect as part of the merger review process.  We’ve also begun tracking the duration of merger reviews more carefully, so that we can monitor our performance and factors affecting it.  You will recall our goal is to resolve investigations within six months of filing, provided that the parties cooperate and comply with our document and data requests during the entire process.

    I would like to focus the remainder of my remarks today on four important settlements in the last week that reflect the Antitrust Division’s commitment to vigilant and effective antitrust enforcement. 

    As some of you may have seen, the Division announced just yesterday a set of global settlements with three South Korean companies.  Those unprecedented settlements resolve criminal charges and civil claims arising from a bid-rigging conspiracy that targeted fuel supply contracts to U.S. military bases in South Korea.  They are the result of tremendous hard work in parallel criminal and civil investigations by the Antitrust Division’s Washington Criminal I Section, the Transportation, Energy, and Agriculture Section, and the Fraud Section of the Civil Division.  We were assisted ably by our partners at the FBI and the Defense Criminal Investigative Service.

    The United States currently maintains numerous military bases in South Korea, housing American soldiers, marines, airmen, and sailors in the region.  These military bases need fuel for various purposes, and two Department of Defense agencies, the Defense Logistics Agency (DLA) and Army and Air Force Exchange Service (AAFES), contract with South Korean companies to supply fuel to the numerous U.S. military bases throughout South Korea. 

    Our investigation, which is ongoing, revealed that SK Energy, GS Caltex, Hanjin Transportation, along with other co-conspirators, rigged bids and fixed prices for fuel supply contracts issued by the U.S. military in South Korea for over a decade.  They cheated the Military and American taxpayers out of precious limited resources.  As a result of the conspiracy, the Department of Defense paid substantially more for fuel supply services.  Although the immediate victim here was the U.S. military, the American taxpayer, you and me, ultimately footed the bill. 

    The three companies agreed yesterday to plead guilty to criminal charges under Section 1 of the Sherman Act, and they will pay at least $82 million in criminal fines for their involvement in the conspiracy.  Importantly, the three defendants have also agreed to cooperate with the ongoing criminal investigation of the conduct. 

    Robert Jackson, who is one of my legal heroes, recognized that bid rigging is particularly harmful to government purchasers.  When he served as Assistant Attorney General in charge of the Antitrust Division, Jackson broadly denounced arrangements that “compel purchasers to pay a price based on calculation, not competition,” and specifically emphasized that “[w]hatever the effect of this on private buyers, it completely destroys the mechanism set up by federal, state, and municipal governments to keep favoritism and corruption out of public buying.”

    The harm Jackson recognized still exists today, and these settlements serve as an important reminder that the Justice Department and its law enforcement partners will investigate aggressively and prosecute without hesitation companies who cheat the United States government and the American taxpayer. 

    We did not stop there.  We are committed to using all authorities Congress has granted to us to remedy antitrust injuries to the American taxpayer.  Those tools include the authority conferred in Section 4A of the Clayton Act.  Section 4A is an important but underused enforcement tool that allows the government to recover treble damages for antitrust violations when the government itself is the victim. 

    To that end, the Division established a parallel civil enforcement team, led by Kathy O’Neill and a group of capable litigators from the Transportation, Energy, and Agriculture Section to pursue parallel civil actions for damages.  We negotiated separate civil resolutions with each of the three defendants on behalf of American taxpayers.  We also worked alongside our partners in the Civil Division’s Fraud Section, who pursued charges against the defendants under the False Claims Act for making false statements to the government in connection with their conspiracy. 

    To resolve both the civil antitrust and the False Claims Act violations, these three defendants have agreed to pay an additional $154 million in total.  They also have agreed to cooperate fully with the Division’s ongoing civil investigation and to implement effective antitrust compliance programs.

    These historic cases mark the first significant settlements under Section 4A in many years.  In fact, as far as we can tell based on our records, they are the largest settlements the government has ever recovered since the enactment of Section 4A.    

    Let me take a step back to review the history of Section 4A. 

    When Congress enacted the Sherman Act in 1890 and the Clayton Act in 1914, neither statute contained a provision specifically allowing the government to recover damages it suffered as a result of an antitrust violation.  In 1939, the United States, led by Assistant Attorney General Thurman Arnold, brought its first-ever antitrust suit for damages on its own behalf.   The government claimed authority to do so under Section 7 of the Sherman Act, which was the predecessor of Section 4 of the Clayton Act.  As most of you know, Section 4 permits “any person” injured by an antitrust violation to recover the damages they suffered. 

    In that pioneering case, United States v. Cooper, the government alleged that eighteen defendants had “collusively fixed” bids that were “identical to the penny on eighty-two different sizes of tires” sold to the United States.  The defendants successfully moved to dismiss the action on the question of whether the government is a “person” entitled to bring an action for damages under the statute.  The Second Circuit affirmed, and the Supreme Court ultimately held that the United States is not a “person” entitled to sue. 

    In 1955, Congress amended the Clayton Act in response to the Court’s ruling in Cooper by adding Section 4A.  As originally enacted, Section 4A allowed the government to recover only single damages, so that the government could recover damages where it was the victim of an antitrust violation. 

    At first, the Division used Section 4A aggressively, filing numerous cases for damages throughout the 1960s and 1970s.  In the 1980s, however, the government brought only four cases under Section 4A—a remarkable decline from the prior two decades.  Some attributed this drop, in part, to the Supreme Court’s Illinois Brick decision in 1978, because many of the cases brought in the ‘60s and ‘70s involved claims by the United States as an indirect purchaser.  The government, however, increasingly purchases goods and services directly.

    The next milestone came in 1990, when Congress amended the Clayton Act again to allow the government to seek treble damages in Section 4A cases. 

    Since 1990, a span of nearly thirty years, only three Section 4A cases have been filed.  In 1991, the Division recovered $250,000 from two companies for rigging bids to purchase surplus gunpowder.  In 1994, the Division filed suit against two defense contractors for entering into a “teaming” arrangement that eliminated competition in supplying the Department of Defense with cluster bombs.  In that case, the Division recovered $4 million on behalf of American taxpayers and obtained an $8 million discount on the bid price.  In 2012, the Division challenged collusion between two companies bidding on four natural gas leases at auctions run by the Bureau of Land Management.  The Division recovered $275,000 from each company. 

    The American Taxpayer deserves to see a revitalization of the government’s Section 4A authority.  This week’s settlements are only the first in that direction.  Going forward, the Division will exercise 4A authority to seek compensation for taxpayers when the government has been the victim of an antitrust violation.  We hope that these efforts will also deter future violations. 

    In light of our policy of seeking damages under Section 4A where available, I would like to address how parallel criminal and civil enforcement will proceed going forward. 

    First, the Division’s new focus on Section 4A enforcement will not require any changes to the Division’s leniency policy.  The Division offers strong incentives to come forward to report criminal antitrust violations in exchange for leniency, and those incentives do not change when the government is harmed by the violation. 

    The Antitrust Criminal Penalty Enhancement and Reform Act of 2004, better known as ACPERA, created another valuable incentive for leniency applications.  Under ACPERA’s detrebling provision, those who successfully qualify for leniency will be subject only to single damages in follow-on civil suits, rather than treble damages.  In addition, those who successfully qualify for leniency are not subject to joint and several liability.

    This detrebling incentive will apply to any Section 4A claims brought by the government.  We will also follow the underlying requirements for ACPERA in Section 4A cases: companies will need to cooperate with the civil team, as they would with any private plaintiff, in order to reap the detrebling benefits.

    The bottom line is that the Division’s enforcement of Section 4A will increase the incentive for co-conspirators in cartel cases to come forward. 

    Separately, I should note that global resolutions like the ones announced yesterday should serve the interests of the parties as well.  Cooperating companies subject to penalties under multiple statutes can gain certainty and finality.  Employees, customers, and investors can resolve the problem and move on. This is consistent with the Department’s broader policies on coordination of corporate penalties.

    Next, as we pursue Section 4A damages going forward, global resolutions of criminal and civil antitrust liability will help maintain a consistent policy on how to calculate civil damages.  Yesterday’s settlements underscore this point.  They provide that SK Energy, GS Caltex, and Hanjin each will pay an amount calculated to exceed the overcharge paid by the government.  At the same time, the amount reflects both the value of the cooperation commitments each defendant made as a condition of settlement and the cost savings the Division realized by avoiding extended litigation.  

    As a general matter, if the government is required to litigate claims it brings under Section 4A, the government will seek treble damages.  In addition, we anticipate that earlier cooperators will benefit by paying a lower multiple of damages, because the value of their cooperation is higher earlier in our investigation. 

    I will turn now to another significant settlement the Division filed this week, one which resolves a complaint against six broadcast television companies alleging that they engaged in widespread, unlawful sharing of non-public, competitively sensitive information.  Along with the complaint, the Division filed proposed final judgments requiring the companies to cease such conduct and to undergo rigorous compliance and reporting measures for the next seven years.

    We uncovered this conduct during our investigation into Sinclair Broadcasting Group’s proposed acquisition of Tribune Media Company, which has since been abandoned. 

    As we allege in the complaint, the defendants agreed in local broadcasting markets throughout the United States to exchange revenue pacing information and other competitively sensitive information.  “Pacing” compares a broadcast station’s revenues booked for a certain time period to the revenues booked in the same point in the previous year.  Pacing indicates how each station is performing versus the rest of the market and provides insight into each station’s remaining spot advertising for the period. 

    We discovered that the defendants had been exchanging pacing information either directly between stations or corporate headquarters, or indirectly through national representatives that help local stations sell advertisements to national advertisers.  By exchanging this information, the broadcasters were better able to anticipate whether their competitors were likely to raise, maintain, or lower spot advertising prices, which in turn helped inform the stations’ own pricing strategies and negotiations with advertisers.  As a result, the information exchanges harmed the competitive price-setting process.

    We have not heard any legitimate pro-competitive justification for this conduct.  We are therefore pleased that these companies recognized that a protracted investigation and litigation would serve no purpose, and we welcome their cooperation as our investigation continues.  We also want to remind businesses, as well as the antitrust practitioners that advise them, that agreements between competitors to exchange competitively sensitive information can violate the antitrust laws and lead to a civil enforcement action even if the conduct does not amount to the type of hard core cartel conduct that the Antitrust Division prosecutes criminally.

    Finally, this morning we announced the third significant enforcement resolution this week—a settlement with Atrium Health, formerly known as Carolinas Healthcare System.  We were joined in the settlement by the North Carolina Attorney General’s Office, and we thank them for their partnership in this action.  The settlement resolves over two years of civil antitrust litigation challenging the hospital system’s use of anticompetitive steering restrictions in its contracts with major health insurers.  These steering restrictions prevented health insurers from promoting innovative health plans and more cost-effective healthcare providers.  

    Atrium is the dominant hospital system in the Charlotte, North Carolina metropolitan area.  It used its market power to limit major health insurers’ ability to introduce plans designed to encourage consumers to choose cost-effective healthcare providers.  Specifically, Atrium would agree to participate in a broad network plan only if the insurer would commit not to introduce other plans that would steer patients away from Atrium.  The steering restrictions also deliberately constrained insurers from providing consumers with transparency into the comparative cost and quality of their healthcare alternatives.

    Because the steering restrictions were in place, insurers could not introduce more innovative health insurance plans that create financial incentives for patients to use lower-cost healthcare services.  Needless to say, competition for patients encourages healthcare providers to reduce costs, lower prices, and increase quality.  These steering restrictions inhibited competition among healthcare providers to provide higher quality, lower-cost services.  

    The resolution prevents Atrium from enforcing the steering restrictions in its contracts with major health insurers.  If approved by the Court, it will restore competition between healthcare providers in Charlotte, North Carolina.

    I would like to make a broader point about the Division’s settlements this week.  The consent decrees in all three cases, like all other decrees the Division has entered into the past 13 months, include specific new provisions designed to improve their enforceability. 

    These provisions (i) address the burden of proof in a civil contempt action by providing that the preponderance standard will apply; (ii) make defendants responsible for reimbursing the government for all costs it incurs in connection with enforcing the decree; (iii) allow the United States to seek a one-time extension of the term of the decree in the event of a violation, or to terminate the decree early if continuation is no longer necessary or in the public interest.  Another provision addresses interpretation of the decree by stating that courts can enforce any provisions that are stated specifically and in reasonable detail, whether or not they are clear and unambiguous on their face.

    The Division serves as a guardian of American consumers, and we act in the public’s trust.  When the Division enters into a consent decree to resolve charges of anticompetitive conduct, we will hold parties’ feet to the fire and enforce the decrees. 

    Finally, last Friday, three defendants pled guilty to conspiring to rig bids and allocate the market in auctions of foreclosed properties in Palm Beach County, Florida.  This case is unlike the Division’s prior foreclosure auction prosecutions because the auction occurred online rather than in-person, and the collusion occurred primarily by text message rather than in-person.  It is a good illustration of the fact that while defendants may use new platforms and technologies to commit antitrust crimes, the Division too is evolving and stands ready to prosecute these crimes in the digital age.

    The conspiracy took place in the aftermath of the financial crisis, which affected the housing market nationwide and the Florida real estate market in particular.  Defendants and their affiliated business entities were the largest buyers of foreclosed properties in Palm Beach County.  Together, the commerce affected by the defendants’ collusion was $25 million. 

    The Division began an investigation into possible collusion in online foreclosure auctions in Palm Beach County, Florida after receiving an anonymous citizen complaint that included a link to a YouTube video detailing the collusion. 

    Co-conspirators texted each other to coordinate their bidding and facilitate the conspiracy to obtain foreclosed homes at suppressed prices.  Most commonly, bidders would agree to stop bidding or to refrain from bidding at their co-conspirators’ request.  In some instances, they lowered bids for each other’s benefit. 

    After learning of the investigation, one of the defendants used and encouraged other co-conspirators to use a text messaging application to continue colluding.  He believed that law enforcement would be unable to read or trace any messages sent through the application.

    The three defendants were indicted by a grand jury in November 2017.  Since then, all three have pleaded guilty.

    I will conclude by taking this opportunity to highlight the outstanding attorneys and economists at the Antitrust Division.  They are the core of executing the Division’s mission and work tirelessly in their commitment to protect competition and consumers.    

    It has been a busy year at the Antitrust Division.  We have been working hard on behalf of America’s consumers and taxpayers, and look forward to continuing our efforts on their behalf in the year to come. 

    Thank you.

    MIL Security OSI –

  • MIL-OSI Security: Deputy Attorney General Rod Rosenstein Delivers Remarks at the Interpol 87th General Assembly

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    It is a privilege to join you at this 87th INTERPOL General Assembly.  I am grateful to the United Arab Emirates for hosting our conference. Thank you President Kim Jong Yang for your exceptional leadership and for providing stability to INTERPOL.  

    Our theme this year is innovation.  Many digital innovations affect law enforcement, from the rise of cybercrime, to the increasing importance of electronic evidence, to encryption and the dark net. 

    In addressing these innovations, we must respect the primary value that is constant in our work: the rule of law.  Law provides the framework for civilized people to conduct their lives.  At its best, law reflects moral choices; principled decisions that promote the best interests of society, and protect the fundamental rights of citizens. 

     The term “rule of law” describes the government’s obligation to follow neutral principles and fair processes. The ideal dates at least to the time of Greek philosopher Aristotle, who wrote, “It is more proper that law should govern than any one of the citizens: upon the same principle, if it is advantageous to place the supreme power in some particular persons, they should be appointed to be only guardians, and the servants of the law.”

    The rule of law is indispensable to a thriving and vibrant society.  It shields citizens from government overreach.  It allows businesses to invest with confidence.  It gives innovators protection for their discoveries.  It keeps people safe from dangerous criminals.  And it allows us to resolve differences peacefully through reason and logic.

    When we follow the rule of law, it does not always yield the outcome that we prefer. In fact, one indicator that we are following the law is when we respect a result although we do not agree with it. We respect it because it is required by an objective analysis of the facts and a rational application of the rules.

    The rule of law is not simply about words written on paper.  The culture of a society and the character of the people who enforce the law determine whether the rule of law endures.

    Since we met last year in Beijing, the news media has reported several prominent challenges to the rule of law, including the lawless attacks on Sergei and Yulia Skripal and Jamal Khashoggi.  Last month, international attention focused on INTERPOL, as a result of the disappearance of President Meng Hongwei.  Such events give rise to questions about whether our member countries abide by shared principles.  In evaluating our actions at this General Assembly, observers may ask whether our votes reflect the values that we profess. We must stand for the rule of law.  

    INTERPOL exists to promote international police coordination and discourage departures from the law. We represent diverse forms of government. But if we serve with integrity, each of us functions as a trustee for our fellow citizens.

    When our successors look back on how we dealt with the issues of our era, they will ask whether we honored our fiduciary duties.

    First, did we develop the knowledge to understand our challenges?

    Second, did we inculcate the wisdom to solve them?

    Third, did we demonstrate the courage to defend our principles?

    Fourth, did we maintain the resolve to achieve our goals?

    I traveled here to speak about INTERPOL’s role in responding to the major innovation of our lives: the rise of a cyber-connected world. 

    The Internet holds immeasurable promise as a repository of ideas, and as a forum for speech and commerce.  It connects citizens across cultures and countries.  It is accessible to the rich and the poor, the powerful and the powerless.  It creates efficiencies and innovations that immensely improve our lives.

    But like every innovation that offers opportunities for good, the Internet also can be exploited by wrongdoers. Today, there is a growing divergence between the Internet as it is, and the Internet as it could be.

    Malicious actors use the Internet for evil ends.  Cyber criminals employ modern technologies to damage information systems, steal data, commit fraud, violate privacy, attack critical infrastructure, and sexually exploit children. They also launch misleading schemes to influence people’s opinions, seeking to foment division and disrupt democratic processes.

    The Internet enables attacks on businesses, government agencies, and individual citizens that cause damage costing billions of dollars.  And new technologies allow criminals to conceal themselves, which frustrates law enforcement’s efforts to keep honest citizens safe. 

    We must acknowledge the divergence between the Internet in theory and the Internet in practice. Closing that gap will ensure the viability of an open Internet governed by the rule of law.

    Enforcing the law on the Internet requires rapid and accurate detection of criminal activity; cooperation among law enforcers from different nations; prosecution of accused criminals in judicial systems that provide due process of law; and just punishment of guilty offenders.  It means not tolerating virtual online locations where crime is unchallenged.  It means not condoning physical safe havens for cyber criminals.

    Detecting, disrupting, deterring, and prosecuting malicious cyber activity are among our highest law enforcement priorities in the United States.  The cyber threats we face are varied and evolving, and our resolve to keep our people safe must extend to every corner of the Internet.

    My office recently issued a comprehensive report about our work to combat cybercrime.  It describes the global challenges posed by cyber-enabled crime.  It explains how hostile cyber actors damage computer systems, steal data, engage in cyber fraud, violate personal privacy, infiltrate critical infrastructure, and pursue malign foreign influence operations.  The report also details our efforts to detect and disrupt those threats, and our commitment to inform citizens about the dangers.

    The perceived anonymity of the Internet attracts many criminals, including terrorists and those trafficking in child pornography, illicit weapons, illegal and deadly drugs, murder-for-hire, malware, and stolen identities.  The barriers to entry are low.  Criminal opportunities are on offer for anyone with an Internet browser and an inclination to break the law.  

    Yet our police agencies repeatedly demonstrate that with the support of international partners, we can find and dismantle malign internet operations.  We identify anonymous users who commit illegal activity, seize their infrastructure and proceeds, and pursue criminal charges against them.  Criminals operating on the dark web should be on notice that our investigative tools allow us to expose them.

    We must not allow cybercriminals to hide behind cryptocurrencies.  Virtual currencies have some legitimate uses.  But bad actors are using them to fund crimes and to hide illicit proceeds.  For example, Bitcoin was the exclusive method of payment for the WannaCry ransomware attack that spread around the globe, causing billions of dollars in losses. 

    In addition, fraudsters use the lure of coin offerings and the promise of new currencies to bilk unsuspecting investors, promote scams, and engage in market manipulation.  The challenges of regulating, seizing, and tracing virtual currencies demand a multinational response.  We must work together to make clear that the rule of law can reach the entire blockchain.

    To that end, last year, prosecutors in the United States announced the indictment of Alexander Vinnick and the virtual currency exchange he allegedly operated. That exchange received more than $4 billion of virtual currency. It was designed without any means to control money laundering, so predictably it served as a hub for international criminals seeking to hide and launder ill-gotten gains. 

    We filed criminal charges and assessed a $110 million civil penalty against the exchange for willfully violating our anti-money laundering laws, as well as a $12 million penalty against Vinnick.

    To prevent virtual currency from being abused by criminals, terrorist financiers, or sanctions evaders, all of us must implement policies that mitigate the risks posed by the new technology.  My country includes virtual currencies in our anti-money laundering regulations.  And the Financial Action Task Force urges all nations to make clear that global anti-money laundering standards apply to virtual currency products and service providers. We must guard against abuses of digital currency.

    We also need to protect against abuses of encrypted communications.  Encryption can be useful in the fight against cybercrime.  Encrypting data makes it more safe and secure.  But the proliferation of warrant-proof encryption also poses a challenge to effective law enforcement. 

    Encryption technologies designed to be impervious to legal process impede our ability to access investigative data.  In September, the chief law enforcement officials of the United States, the United Kingdom, Canada, Australia, and New Zealand joined together to issue a “Statement of Principles on Access to Evidence and Encryption.”

    While acknowledging the benefits of encryption, they called for urgent, sustained attention and informed discussion about the increasing difficulty law enforcement agencies face in accessing evidence of criminal conduct.

    We will continue to work closely with technology companies to establish responsible practices that consider both privacy concerns and public safety imperatives.

    On the Internet, data is decentralized, information flows across continents, and online activities are dispersed across global networks. Cybercrime knows no borders.  As a result, international cooperation is indispensable.  INTERPOL is central to that cooperation.

    We must ensure that appropriate criminal laws are enforced.  Each of us must do our part to bring malicious actors to justice.  We rely on international partners to locate, arrest, and extradite cybercriminals so that they may be held accountable.  Cybercriminals should find no safe haven, either on the dark web or within national borders.

    In the United States, we continue to faithfully discharge our responsibility to extradite fugitives. In the last five years, we extradited 95 Americans, honoring inquiries whenever the requesting state presents sufficient evidence of criminality.

    For example, last year the United States sent Shawn Gregory Towner to Ireland.  Towner was arrested in Ireland in 2006 after authorities found him watching images of child sexual abuse on his laptop in Dublin, but he fled to the United States after being released on bail.  My country located Towner and sent him to Ireland to stand trial. 

    We process extraditions without regard to the nationality of the offender. 

    But that cooperation must be reciprocated.

    International cooperation was essential to our successful dismantlement of the Kelihos botnet, a global network of tens of thousands of infected computers.  Criminals used the network to harvest login credentials, distribute hundreds of millions of spam e-mails, and install ransomware and other malicious software. 

    In 2017, prosecutors obtained judicial orders authorizing law enforcement to neutralize the botnet by seizing control of malicious domains and redirecting traffic to servers we controlled. 

    Disabling the botnet was only part of the equation. The criminals responsible for creating and administering the botnet also should be held accountable. American prosecutors charged Peter Levashov of St. Petersburg, Russia for multiple offenses stemming from his control and operation of the Kelihos botnet.  Levashov is a cybercriminal who operated multiple botnets with impunity for nearly two decades. 

    Spanish authorities arrested Levashov and extradited him to the United States. In September, Levashov was found guilty in a fair and public judicial proceeding.

    Levashov’s extradition represented effective coordination with our foreign partners.  Unfortunately, not every case is a success story.  In some instances, nations shield their citizens from the rule of law with schemes that waste resources, cause needless delay, thwart investigative efforts, and undermine justice. 

    Consider the prosecution of accused hacker Aleksey Belan.  Belan is a Russian national who was indicted in the United States for massive computer breaches on American companies.  After the United States issued an arrest warrant, Belan was reportedly arrested in 2013.  But he was permitted to return to Russia. 

    A second indictment alleges that in 2014, after Belan returned to Russia, Russian intelligence agents recruited him to carry out one of the largest data breaches in history, stealing information from more than 500 million individual email accounts of people around the world. 

    The rule of law suffers when cybercriminals are given safe havens.  The United States will continue to promote the rule of law by identifying, exposing, and seeking to extradite perpetrators who harm innocent people.  And we will continue to support legitimate investigations and prosecutions conducted by our INTERPOL partners. 

    At the same time, we will expose schemes to manipulate the extradition process.  We will identify nations that routinely block the fair administration of justice and fail to act in good faith, with a sincere commitment to holding criminals accountable.

    As cyber threats grow in scale and sophistication, we increasingly need to search throughout the world for evidence, witnesses, and defendants.  Our responses must be as innovative as the criminal activity. We depend on expeditious international cooperation and coordination in dismantling malicious criminal operations. 

    Child exploitation cases provide a useful model for international coordination.  INTERPOL’s International Child Sexual Exploitation image and video database uses image and video comparison software to identify and locate child sexual exploitation victims and their abusers.  The database has led to the arrest of nearly 6,300 offenders. Recently, it helped authorities rescue five victims in Spain.  That is a superb example of innovative law enforcement.

    In my country, we play a leading role by identifying cases in which child exploitation materials are generated from or hosted in other countries.  Then we disseminate the information to the appropriate INTERPOL member countries. Our partners often request follow-up information to assist in their own investigations. Last year, almost nine million investigative leads were distributed through this program, resulting in many arrests and prosecutions. 

    Children around the world are safer when our law enforcement agencies work together – quickly, and with methods like those pioneered by INTERPOL.

    Finally, I am proud that the United States takes seriously our responsibility to help secure evidence that our international partners need for their investigations.  We receive thousands of requests for mutual legal assistance each year, and we do all that we can to comply.  We employ expert attorneys and staff dedicated to assisting with foreign requests for electronic evidence.  We devote additional resources when necessary to meet your needs.

    We call upon each of you to do the same.  By devoting appropriate resources to international cooperation efforts, we can properly address the increasing threat of cybercrime.

    My country recently enacted a new law to remove legal impediments to compliance with foreign court orders in cases that involve serious crimes.  The legislation demonstrates our commitment to the vision of the Budapest Convention on Cybercrime, the primary treaty for harmonizing national interests and enhancing international cooperation against cybercrime.  Sixty-one nations have fully ratified the treaty, agreeing that national laws should include authority to compel providers to disclose data they control, even when it is held elsewhere. 

    New cyber conventions are sometimes proposed that would limit the free flow of information between nations. But that would dangerously impede efforts to investigate cybercrime. It would protect criminals and allow cyber threats to proliferate and grow in scale and sophistication.  That is untenable in a world in which criminals using computers shielded by layers of anonymity can harm innocent victims in any one of our nations, anywhere in the world. Such limitations would be a step backward, not an innovative law enforcement approach.

    No nation should exempt itself from just and reasonable law enforcement cooperation. No nation will be more prosperous, more secure, or more respected because it supports cybercriminals. 

    My fellow delegates, there is a parable about three stonecutters asked to describe what they are doing.  They answer in varying ways. The first stonecutter focuses on how the job benefits him. He says, “I am earning a living.” The second man narrowly describes his personal task: “I am cutting stone.” The third man has a very different perspective. Instead of focusing solely on his work, he explains what it means to others: “I am helping these stonecutters build a shrine.”

    Similarly, each of us helps to construct a legacy. INTERPOL delegates should always support leaders and policies that promote international police coordination and preserve the rule of law – in practice, and not just in theory. We must uphold the rule of law, so it will be there for us when we need it.

    When our successors speak of our time here, give them reason to say that we understood the challenges; we found the solutions; we defended our principles, and we stayed the course to support liberty and justice for all. 

    I am honored to work with you in advancing the INTERPOL mission and making the world safer and more prosperous for all law-abiding citizens. Shukran.  Thank you very much.

    MIL Security OSI –

  • MIL-OSI Security: Acting Attorney General Matthew Whitaker Delivers Remarks to the Joint Terrorism Task Force

    Source: United States Attorneys General 13

    NOTE: The remarks originally included a case that was scheduled to be sentenced but was continued, and so that case was removed from the speech. However, a reference to the case was inadvertently left in. As such, there is no extradition relating to the Chelsea bomber case.

    Remarks as prepared for delivery

    Thank you, Geoff (Berman), for that kind introduction, and thank you for your leadership as United States Attorney for the Southern District of New York. And thank you also to United States Attorney Richard Donoghue from the Eastern District of New York.

    It is wonderful to be in New York during the holiday season.  I’m told that this is the best time of year to visit—but I must say I am looking forward to Thanksgiving in Des Moines.

    But before I say anything else, I want to take a moment to acknowledge that the law enforcement community is in mourning today.

    Chicago police officer Samuel Jimenez was shot and killed during Monday’s shooting at Mercy hospital. Officer Jimenez had just joined the force in 2017 and he was only 28 years old.  He leaves behind a wife—his high school sweetheart—and three young children.

    Officer Jimenez was on his way to respond to a different call when he heard of shots fired at the hospital.  Then he did what police officers do every day in America: he went toward the danger, so that the rest of us could run away from it.  He and his fellow officers saved a lot of lives that day.

    This tragedy is another reminder of both the danger and the nobility of police work.  Today, as we prepare for Thanksgiving Day, we should all be especially grateful for our police officers.

    It is an honor to be here in the J.O.C., where so many consequential law enforcement decisions have been made—so many decisions that have saved American lives.

    This is where a number of terrorism investigations have begun—and it’s where security is monitored for events like the Thanksgiving Day parade or New Year’s Eve.

    And it is an even greater honor to be with some of the most respected law enforcement leaders in the world.  Thank you to:

    • Commissioner O’Neill,
    • FBI Assistant Director in Charge, William Sweeney,
    • Deputy Commissioner Miller,
    • NYPD Chief Paul Ciorra,
    • Chief Owen Monaghan,
    • Ashan Benedict of ATF,
    • Michael Greco with the Marshals Service,
    • Troy Miller with CBP,
    • Director Frank Russo,
    • Phil Bartlett and our Postal Inspectors, and
    • Scott Sarafian with Secret Service.

    It is an honor to be with all of you.

    NYPD in particular has earned a reputation as perhaps the greatest police department on Earth.

    There are more NYPD officers than there are members of the military in entire nations, like Belgium or Ireland.

    But even more impressive than the quantity of your officers is the quality of your officers.

    You are known all over the country for your Compstat program, which enables you to monitor crime rates in real time and to quickly reallocate officers when crime begins to rise.

    And over the past three decades, your achievements have been staggering.  In 1990, there were 2,245 murders in New York City.  Last year there were 292.  Since 2000, burglaries are down by nearly two-thirds and robberies have been cut in half.  One weekend in October there were zero murders or shootings in New York City for the first time in 25 years.

    These results are a testament to the effectiveness of NYPD, and of many people in this room.  You’ve been able to start a virtuous cycle of safety, prosperity—and more safety.  That is what we want to achieve all across America.

    President Donald Trump is a lifelong New Yorker.  He invested in this city when its future was in doubt.  He bet on this city—and that proved to be a smart bet. 

    The President witnessed New York’s transformation firsthand. I think that made his support for law enforcement even stronger.

    One of his very first Executive Orders was to tell the Department of Justice to improve the safety of state and local law enforcement officers.  And over these past two years, we have followed that order.

    Today I am announcing our next step to carry out that order.  Today I am announcing that the Department of Justice is providing $56 million in grant funding to support law enforcement all across America.

    That includes $29 million for bulletproof vests, $12.2 million for body-worn cameras, and $2 million in health and safety research.

    This is just a small way of saying thank you to the officers who take care of us every day.  We understand the sacrifices that you make—and so we want you to have the right equipment and the right training.

    If anybody out there doesn’t appreciate the role of law enforcement officers in our society, then I would tell them to come to New York.

    Earlier today I visited the 9/11 Memorial.  It was an extremely moving experience.

    We all remember where we were when we heard the news.  I know I do.

    Some of you were here.  Some of you were at Ground Zero.

    It was the worst terrorist attack in American history and the most shocking attack on our soil since Pearl Harbor.  It led to the largest investigation in FBI history.

    None of us have ever been the same.  Speaking for myself, 9/11 strengthened my appreciation for our servicemembers and our first responders and law enforcement officers.

    More than 70 police officers were killed in New York City that day.  Dozens more died of illnesses related to their service at Ground Zero.  Some of you knew them.

    The Department of Justice honors their memory and law enforcement holds them up as examples of our highest ideals.  They died in a rescue mission that saved thousands of lives.

    We are indescribably proud of our federal officers.  But we recognize that the vast majority of the officers in American law enforcement is at the state and local levels.  We cannot succeed without you.

    We’re at our best when we work together—and that’s what the JTTF is all about.

    This is the oldest JTTF in America.  Today there are more than 100 JTTFs nationwide, including at least one in each of our FBI field offices.  The vast majority of these were created in response to 9/11.

    This JTTF set the model for the rest to follow.  You bring together 500 employees from 50 different partner agencies.

    And you’ve achieved so much for this city and for this country.

    You investigated the 2007 JFK bomb plot, the 2009 Subway bomb plot, and the 2010 attempted bombing of Times Square.

    And I am well aware that, under this administration, you’ve continued to have success in investigating terrorism.

    Three times a week, I receive a threat briefing where the FBI and the National Security Division tell me about the national security investigations that we are working on in our United States Attorneys’ offices.  We’ve talked about the work done here.

    People in this room have achieved successes that have made this country safer.

    This February, prosecutors in Geoff’s office secured a life sentence for the Chelsea bomber, Ahmad Rahimi. He planted nine improvised explosive devices in New Jersey and New York, including two not far from here in Chelsea.  He detonated one of them and injured more than 30 people.  The bomb was so powerful that it launched a 100-pound dumpster more than 120 feet.  It shattered windows 400 feet away and three stories above ground level.

    Another bomb here in Chelsea was rendered safe by law enforcement before it was detonated.

    That investigation started right here in this room.

    And so to all of the agents, officers, and the AUSAs who worked on this case—Emil Bove, Andrew DeFilippis, and Shawn Crowley—thank you for this outstanding work.

    People in this room also worked to convict the Bangladeshi national who detonated a bomb near the Port Authority bus terminal last December. The explosion was caught on surveillance video and the defendant was found lying on the ground with parts of a pipe bomb on and around his body.  After he was arrested, he admitted that he detonated the bomb to express his support for ISIS.  He attempted to make the bomb as dangerous as he could and to target a public place during rush hour.

    Just two weeks ago, thanks to the hard work of Geoff’s Assistant U.S. Attorneys Shawn Crowley, Rebekah Donaleski, and George Turner, he was convicted on six counts.  Now he is facing a potential life sentence.

    These are terrific accomplishments.  The dangerous terrorists in these cases can’t hurt anyone now—and that’s because of your hard work.

    But these cases are also a reminder that the terrorist threat is not going away on its own.  Sadly, our work is not finished.

    Terrorists are going to continue to target us.  So we’ve got to keep targeting them—during this holiday season and all year round.

    And so I want to assure all of you that this work remains the top priority of the Department of Justice.  We will not let up.

    We will continue to support you with resources—like the grant funding that I mentioned—with personnel, and with intelligence.

    I want to conclude with something a mentor of mine used to say every time he spoke to law enforcement, and I believe it too: we have your back, and you have our thanks.

    MIL Security OSI –

  • MIL-OSI Security: Acting Attorney General Matthew Whitaker Delivers Remarks at John F. Kennedy International Airport’s International Mail Distribution Center

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Thank you, Director Russo, for that kind introduction.  I especially want to thank you and your brother for following in your Dad’s footsteps and going into law enforcement.  Thank you for 23 years of service.

    I also want to thank:

    • Rich Donoghue, our U.S. Attorney for the Eastern District of New York,
    • Phil Bartlett and our postal inspectors,
    • Keith Kruskall and Michael Abraham with DEA,
    • Port Director Frank Russo,
    • Director of Operations Troy Miller, and
    • Assistant Special Agent in Charge Christopher Lau.

    Thank you all for the tour and for the briefing. 

    But most of all, thank you to our CBP, DEA, Postal Inspection Service Agents who are here for the interdiction work you do every day.

    Your work is more important than ever—because today we are facing the deadliest drug crisis in American history.  Last year 72,000 Americans lost their lives to drug overdoses.  That’s the highest drug death toll in American history.  More Americans died of drug overdoses last year than from car crashes or from AIDS at the height of the AIDS epidemic.

    Despite rising prosperity and better technology, life expectancy in the United States actually declined over the last two years in a row.  The last time that happened was 55 years ago.

    Millions of people are living with the painful consequences of a family member’s addiction or an addiction of their own.  I personally know people whose families have been torn apart by drug addiction.  These days, it is likely that most of you do, too.  We all do.

    New York has not been immune to this problem.  No one has. 

    Drug overdose deaths in New York City have gone up by 81 percent in just the last three years.

    The situation is daunting.  But law enforcement has a unique opportunity to reverse these trends.

    President Trump has a comprehensive plan to end this crisis.  The three parts of the plan are prevention, treatment, and enforcement.

    The President has improved our prevention efforts by launching a national awareness campaign about the dangers of opioid abuse—a campaign I strongly support.  In the long run, getting more and more people to reject drug abuse in the first place will stop addiction from spreading.

    The drugs on the street today are as potent and as dangerous as they have ever been.  That is because of synthetic opioids—drugs like fentanyl and carfentanil. 

    These drugs killed 20,000 Americans last year—more than any other kind of drug.  Three milligrams of fentanyl can be fatal.  That’s equivalent to a pinch of salt.

    And you don’t have to go to a street corner to buy these drugs.  With a few clicks of a button you can go online and have them shipped from overseas right to your door.  The odds are good that those packages come through this room.

    I’m told that you process more than 800,000 pieces of mail every day just at this airport, including a majority of international mail entering the United States.  I’m also told that you intercepted dozens of packages of fentanyl just in this last fiscal year.  That is incredible work and I have no doubt that it has saved lives.

    Just last month, the President signed into law major legislation that I believe will make you more effective.  Under the new law, the Postal Service must share electronic information with CBP about packages coming into the United States.  That information includes where it’s from, where it’s going, and what’s in it.  That will help law enforcement track suspicious packages, find criminals, and it will help us prove our case at trial.

    And that is critical.  You are our strong first line of defense against these drugs.  But you need a strong offense, too. 

    And that’s where we come in.

    We don’t just want to stop packages once they get here—we want to prevent them from being sent in the first place.

    By prosecuting traffickers and breaking up the supply chain, our work ultimately will make your work safer and easier.

    One of President Trump’s first Executive Orders was to the Department of Justice, telling us to dismantle the networks of transnational organized crime.  We have been faithful to that order.

    In fact, the Trump administration is the first administration to prosecute Chinese fentanyl traffickers.  We know that China is responsible for the vast majority of fentanyl in this country.

    Last October, we announced the first two indictments against Chinese nationals for trafficking synthetic drugs in the United States.  Over the summer we announced our third case—a 43-count indictment against a drug trafficking organization based in Shanghai.

    This summer I went to China and I spoke with Chinese officials about this exact problem.  I made it clear to them that we need better information from them on packages coming to this country.  Just like we want to improve our law enforcement cooperation with them, we need their cooperation on this issue, as well.  This administration is paying very close attention to this problem.

    Nevertheless, with your help, the United States is interdicting drugs coming into this country at record levels.

    In just the first three months of 2018, the DEA seized a total of more than 200 pounds of suspected fentanyl in cases from Detroit to New York to Boston.  Depending on its purity, that can be enough to kill tens of millions of people.

    In fiscal year 2017, we broke the record for fentanyl prosecutions at the federal level—and in fiscal year 2018, we broke that record again.

    Last July, the Department announced the seizure of the largest dark net marketplace in history – AlphaBay.  This site allowed you to send packages of drugs from China straight to your door.  They hosted some 220,000 drug listings and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13 year old in Utah.

    Earlier this year we filed charges against a married couple who we believe were once the most prolific synthetic opioid traffickers on Alpha Bay and on the darknet in North America in general.  We also worked with our partners in Canada to help them indict a man we believe was the third most prolific darknet synthetic opioid dealer in North America.

    And we have new weapons to be even more effective in the future.  In January we began J-CODE, a new team at the FBI that focuses specifically on the threat of online opioid sales—the sales that are so often sending packages through this building.  J-CODE has already begun carrying out enforcement actions nationwide, arresting dozens of people across the country.

    And in the districts where drug deaths are the highest, we are now prosecuting synthetic opioid trafficking cases, even when the amount is small.  We have sent 10 more prosecutors to help implement this strategy in those 10 districts.  We call this effort Operation Synthetic Opioid Surge—or Operation S.O.S.

    We tried this strategy in Manatee County, Florida—which is just south of Tampa—and it worked.  This past January, they had half the number of overdose deaths as the previous January.  We want to replicate those results across the country.

    We have also sent more than 300 new federal prosecutors to our U.S. Attorneys offices across America.  This is the largest surge in prosecutors in decades.

    We have also hired more than 400 DEA task force officers this year alone.  That is a record increase.

    All of these efforts are delivering results. 

    Federal drug prosecutions overall went up by six percent over the last fiscal year, and fentanyl prosecutions have increased dramatically for two years in a row.

    Most importantly, we are seeing an impact on people’s lives.  While 2017 saw more overdose deaths than 2016, data for the last months of the year show that the increases may have finally come to an end.  Drug overdose deaths fell by two percent from September 2017 to March 2018.

    We are right to celebrate these accomplishments, but we have to acknowledge that we still have a lot more work to do—and the stakes have never been higher.

    That is why I am so glad that we have this incredible facility and the dedicated professionals who make it a success.  You are our strong first line of defense—and we appreciate you.

    And so I want each of you to know: we have your back and you have our thanks.

    MIL Security OSI –

  • MIL-OSI Security: Deputy Attorney General Rod J. Rosenstein Delivers Remarks at the Department of Justice American Indian and Alaska Native Heritage Month Observance Program

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Thank you, Tracy, for your kind introduction. I appreciate your devoted service as Director of the Office of Tribal Justice. I first met Tracy more than 20 years ago when we were young attorneys in the Criminal Division.  I am grateful to the employees of the Office of Tribal Justice for everything that they do to promote public safety in Indian Country.

    I also want to thank everyone throughout the Department who works to improve our relationship with tribes and to further tribal justice, as well as those who worked to create today’s event.

    It is my great privilege to join you in celebrating American Indian and Alaska Native Heritage Month.

    The theme for this year’s observance is, “Sovereignty, Trust and Resilience.” It encourages us to reflect on the important contributions of Native Americans and Alaska Natives to the Department, and to our nation’s economic, academic, and cultural institutions.

    American Indians and Alaska Natives are an indispensable part of our national fabric. They are business owners, teachers, first responders, law enforcement offices, and community leaders. They serve with honor in our Armed Forces. And they work proudly in the Department of Justice.

    President Donald Trump said last month, “Native Americans have fortified our country with their traditions and values, making tremendous contributions to every aspect of our national life.  We remain committed to preserving and protecting Native American cultures, languages, and history, while ensuring prosperity and opportunity for all Native Americans.”

    Consistent with the President’s words, we recognize the many contributions and sacrifices by members of this community. Today, we recommit ourselves to ensuring opportunities for all Americans. Every American enriches the quality and character of our great nation.

    The Department of Justice plays a unique role in the government-to-government relationship between the United States and Tribal Nations.

    Our U.S. Attorney’s Offices and law enforcement components, such as the FBI and the DEA, are responsible for investigations, prosecutions, and victim services in 51 judicial districts that include Indian country. Federal prosecutors exercise criminal jurisdiction over 250 distinct regions of Indian country, covering more than 55 million acres of land.

    Our offices work together with Tribal law enforcement, state and local law enforcement agencies, and the Bureau of Indian Affairs to improve the safety and security of Native American and Alaska Native communities.

    The Justice Department also handles a large caseload of civil litigation in Indian country. Our civil cases include matters relating to environmental and natural resources, Tribal treaty rights, and Native Americans’ civil rights.

    Our grant making components provided over $259 million to Tribes last year. Those components include the Office of Justice Programs, the Office for Victims of Crime, the Office on Violence Against Women, and the Office of Community Oriented Policing Services. Their grants support police, serve victims, combat domestic violence and sexual abuse, and strengthen tribal justice systems.

    We are particularly proud of the Tribal Access Program. That effort is coordinated by the Office of Tribal Justice and the Department’s Chief Information Officer. It provides computer kiosks that allow Tribes to access federal crime databases. The kiosks allow Tribes to protect victims of domestic violence, identify sex offenders, keep guns out of criminals’ hands, and help locate missing people.

    There are many success stories involving the kiosks.

    Last year, the Gila River Police Department received a report about a sexual assault against a juvenile. Police quickly identified a suspect, and a warrant followed. But the suspect fled.

    Using a kiosk, tribal police entered the warrant into the FBI’s National Crime Information Center, which we call NCIC. NCIC is a computerized index of criminal justice information. One of its most important functions is to help police apprehend fugitives.

    When police encountered the suspect outside Tribal territory, an NCIC check revealed the tribal warrant. Police took the suspect into custody and transported him to the tribal jail where he was booked using a federal workstation.

    Successes likes that would not be possible without the kiosk system. Since the program started in 2015, 47 participating Tribes have entered more than 600 sex offender registrations into the system. Participating Tribes also have entered arrest data that prevents criminals from purchasing firearms. And Tribes have conducted more than 4,500 fingerprint-based record checks for civil purposes, including employment.

    The total number of tribes with kiosk access will expand to 114 by the end of 2019.

    We are also proud of the Department’s new program to appoint Special Assistant United States Attorneys to work on Tribal issues. The initiative, funded through the Office on Violence Against Women, hires prosecutors to bring cases in both tribal and federal courts. That increases prosecution capacity and helps to prevent criminals from avoiding prosecution because of jurisdiction or sovereignty issues. It will promote the goal of ensuring that every perpetrator of domestic or sexual violence is brought to justice.

    These initiatives demonstrate our Department’s steadfast commitment to improving public safety in Indian country by promoting coordination among tribal, state, and federal law enforcement agencies.

    As part of our observance today, we are fortunate that John Tahsuda is here as a guest speaker.

    Mr. Tahsuda is an enrolled member of the Kiowa Tribe of Oklahoma. He earned a Bachelor of Science degree from Oklahoma State University, and a law degree from Cornell Law School.

    Mr. Tahsuda then worked as the acting general counsel of the Oneida Indian Nation of New York. He also taught classes at Cornell Law School about federal Indian law, policy, and history.

    Mr. Tahsuda later served as general counsel and legislative director of the National Indian Gaming Association, where he monitored legislation and policy issues affecting the organization’s 180 member tribes and assisted with their lobbying efforts.

    In 2002, Mr. Tahsuda joined the staff of the U.S. Senate Committee on Indian Affairs, first as senior counsel and later as staff director. He handled policy and legislation affecting gaming, federal recognition, self-governance, and Indian health care.

    From 2007 through 2017, Mr. Tahsuda worked in the private sector, providing clients with advocacy and counsel services about tribal affairs policy issues.

    Last year, Mr. Tahsuda was appointed as the Principal Deputy Assistant Secretary for Indian Affairs at the Department of the Interior. Indian Affairs manages Federal trust, treaty, and other responsibilities to 573 federally recognized Indian Tribes. Mr. Tahsuda helps to develop and interpret policies affecting Indian Affairs bureaus, offices, and programs.

    He is a strong advocate for Indian country issues, and we are grateful to him for joining us today. Please welcome John Tahsuda.

    MIL Security OSI –

  • MIL-OSI Security: Deputy Attorney General Rod J. Rosenstein Delivers Remarks at the “SamSam” Ransomware Press Conference

    Source: United States Attorneys General 13

    Remarks as prepared for delivery

    Good morning. I am joined by Criminal Division Assistant Attorney General Brian Benczkowski, New Jersey U.S. Attorney Craig Carpenito, and FBI Executive Assistant Director Amy Hess.

    Also on stage are the two prosecutors handling this matter: Assistant U.S. Attorney Justin Herring, and Computer Crimes and Intellectual Property Section Senior Counsel William Hall Jr.

    A federal grand jury in New Jersey indicted two Iranian citizens for a three-year scheme that involved hacking into computers of hospitals, municipalities, public institutions, and businesses. It involved a high-tech, sophisticated extortion plot.

    The defendants allegedly hijacked victims’ computer systems and shut them down until the victims paid a “ransom.”

    The conspirators collected more than $6 million in extortion payments and caused more than $30 million in losses.

    Many of the victims were public agencies with missions that involve saving lives and performing other critical functions for the American people. 

    The indictment was returned on November 26, and unsealed today in Newark, New Jersey. It alleges that Faramarz Shahi Savandi and Mohammad Mehdi Shah Mansouri used sophisticated software to execute their computer hacking and extortion scheme.

    Acting from inside Iran, the men developed and deployed a form of ransomware that they named “SamSam.”  Ransomware is a destructive computer code that encrypts victims’ computers and then holds the computers “hostage” until a “ransom” fee is paid.

    Starting in January 2016, the defendants gained access to victims’ computers by exploiting cyber security weaknesses.  After gaining access to the computers, they remotely installed ransomware.  The ransomware encrypted computer data, crippling the ability of the victims to operate their businesses and provide critical services to the public. 

    The victims included two major municipalities – the City of Atlanta, Georgia and the City of Newark, New Jersey.  The defendants also sought to interrupt critical transportation infrastructure by infiltrating the Port of San Diego, California, and the Colorado Department of Transportation. 

    In addition, the defendants infected the computers of six health-care related entities from across the country, impairing the ability of these businesses to provide health care to sick and injured people. 

    The defendants chose to focus their scheme on public entities, hospitals, and municipalities.  They knew that shutting down those computer systems could cause significant harm to innocent victims.

    The indictment alleges that the defendants demanded payment from their victims in the form of the virtual currency known as Bitcoin.  Bitcoin contributes to the increasing sophistication of criminal schemes.  It is a common currency for criminal schemes, including websites that distribute child pornography and deadly opioid drugs, and ransomware and other tools of extortion.

    The defendants allegedly communicated with victims using Tor, an encrypted computer network designed to facilitate anonymous communication over the Internet. 

    We support the use of encryption to safeguard private information and strengthen cybersecurity.  But this case highlights another example of the challenges posed to law enforcement by encryption designed to resist law enforcement. 

    Sophisticated encryption technologies like the Tor network are used by cybercriminals to commit serious offenses.  These sophisticated technologies pose a real threat to the government’s ability to keep people safe and ensure that criminals and terrorists are caught and brought to justice.

    Every sector of our economy is a target of malicious cyber activity.  But the events described in this Indictment highlight the urgent need for municipalities, public utilities, health care institutions, universities and other public organizations to enhance their cyber security. 

    Publicly revealing this nefarious hacking scheme makes it harder for the perpetrators, and others like them, to do business in the future.  As a result of the Indictment, the defendants are now fugitives from justice.  They face arrest and extradition to the United States in many nations that honor the rule of law. 

    We call on all civilized nations to prevent their citizens from using the internet to perpetrate fraud schemes in foreign countries.

    By making clear that criminal actions have consequences, we deter schemes to victimize the United States government, businesses, and citizens, and we help to protect foreign allies.

    This case demonstrates the Department of Justice’s commitment to identifying and prosecuting cybercriminals, regardless of where they base their operations. 

    We are grateful for outstanding work and collaboration between American and international law enforcement partners in this investigation.  In particular, I want to thank two United Kingdom agencies – the National Crime Agency, and the West Yorkshire Police – and two Canadian agencies, the Calgary Police Service, and the Royal Canadian Mounted Police. 

    Our National Security Division and our Criminal Division’s Office of International Affairs also provided critical support.

    Next, I want to invite Assistant Attorney General Brian Benczkowski to provide some remarks. 

    MIL Security OSI –

  • MIL-OSI Security: Assistant Attorney General Delrahim Delivers Remarks at the Antitrust Division’s Seventh Annual Diversity Celebration

    Source: United States Attorneys General 13

    Thank you, Matthew, for that kind introduction.

    And good afternoon everyone.  It is great to be joined by so many colleagues from across the Antitrust Division and beyond. 

    I would also like to acknowledge our special guest from the FBI, Special Agent Voviette Morgan.  I’m honored to be introducing Ms. Morgan and grateful she accepted my invitation to this year’s Annual Diversity Celebration. 

    This is my fourth Annual Diversity Celebration as Assistant Attorney General of the Antitrust Division.  In my tenure, we have had some incredibly inspiring speakers: former Treasurer of the United States Anna Cabral, former FTC Chairwoman Edith Ramirez, and former U.S. Attorney for the District of Columbia Jessie Liu. This annual event complements the regular opportunities we have throughout the year to discuss diversity and inclusion with distinguished guests.  Some of those outstanding events included Roberta Cordano, the President of Gallaudet University; Leslie Overton, a former DAAG at the Division; and Dr. Kay Redfield Jamison of Johns Hopkins University. 

    Before I hand things over to Special Agent Morgan, I’d like to pick up where Matthew left off and touch briefly on the Antitrust Division’s enduring commitment to diversity and inclusion.  When I rejoined the Division in 2017 as AAG, I pledged to build upon the Division’s robust support for diversity and inclusion to ensure a workplace tolerant and representative of a full diversity of ideas and backgrounds.  The Diversity Committee has helped ensure we honor that pledge, and I thank them for constantly bringing new ideas for furthering the Antitrust Division’s record as a place that welcomes diversity in all its forms. 

    This has been an extraordinarily challenging year for all of us.  We’ve been trying to do our part to advance the Division’s mission while trying to stop the spread of coronavirus in our communities, homeschooling our kids, providing eldercare, and supporting our families and neighbors in countless other ways.  All of this against a backdrop of recent events in our country that strike at our collective conscience. 

    I commend the Diversity Committee for juggling all of these challenges and yet remaining incredibly productive.  The Division remains a leader in advancing diversity within the Department because of this Committee’s innovation and sustained diligence.

    Matthew spoke about some of the recent Diversity Committee initiatives.  I’ll note that several of these key recommendations are the work of the newest subcommittee, the Women’s subcommittee.  Launched in 2019, this subcommittee hit the ground running and has made an indelible impact on the Division with initiatives such as the Stork program, the Parental Leave Q&A, and the Wellness/Lactation Rooms, all initiatives I am proud to have worked with you on these past several years.   

    Not to put too much pressure on the 2021 members of the Diversity Committee, but it is my hope that you will be just as successful as the 2020 and 2019 members have been.  Indeed, you’ll have an early opportunity to leave your mark on the Division as well with the creation of a new Subcommittee within the Diversity Committee – the Veterans Subcommittee.

    This subcommittee will launch next year with a focus on increasing awareness of reservists’ and veterans’ valuable contributions to the Division’s mission, and addressing some of the issues unique to their circumstances, with the overarching goal of improving recruiting and retention of veterans and reservists. 

    As you all know, in addition to recapping the Committee’s recent accomplishments, and previewing plans for the coming year, the Annual Celebration is also an opportunity to hear from a special guest speaker.

    Today’s speaker is in the mold of the impressive leaders who have celebrated with us in past years: I could not be happier to introduce FBI Special Agent in Charge, Voviette Morgan.  

    Special Agent Morgan is a trailblazing public servant that has inspired others to careers in public service and law enforcement.  A Los Angeles native, she joined the Bureau more than two decades ago focusing on white-collar crime.  She’s risen through the ranks and held several leadership positions in the Office of Public and Congressional Affairs and the Counterterrorism Division.  She has also served as the chief of the Internal Investigations Section in the Inspection Division at FBI Headquarters in Washington, D.C. 

    In August 2017, FBI Director Christopher Wray named Special Agent Morgan as the Special Agent in Charge of the Criminal Division for the Los Angeles Field Office, which is responsible for investigating all federal crimes in the Los Angeles area.[1]  

    Her office investigates everything from public corruption including police, law enforcement, legislative and judicial corruption, to organized crime and drug offenses, to a laundry list of white-collar crimes including antirust, financial institution and healthcare fraud.  Her office also investigates civil rights violations and human trafficking.  

    We know just how busy Special Agent Morgan is and we very much appreciate her spending time with us this afternoon. 

    From one Angeleno to another, I thank you, Voviette, for your tireless work protecting my beloved hometown.  It is my distinct privilege to welcome you to the Antitrust Division.

    I now will hand things over to our moderator, Michelle, and thank you for being with us today.

    MIL Security OSI –

  • MIL-OSI Security: Twenty-Nine Individuals Sentenced to 378 Combined Years in Federal Prison for Running Armed Fentanyl and Methamphetamine Trafficking Ring

    Source: Federal Bureau of Investigation FBI Crime News (b)

    EVANSVILE- 29 defendants have been sentenced to a combined 378 years in federal prison for their roles in a large methamphetamine and fentanyl drug trafficking organization that operated in Southern Indiana.

    According to court documents, between January 2020 and November 2021, the following 29 individuals conspired together to distribute a total of nearly 500 pounds of methamphetamine and over three kilograms of fentanyl. This investigation led to the seizure of over 80 pounds of methamphetamine, over 560 grams of fentanyl, and $240,000 in United States currency.

    Jeramey Smith served as the leader of the drug trafficking operation. Smith began obtaining multiple pound quantities of crystal methamphetamine from Julian Green in early 2020 until April of 2021 when he changed his source of supply to a cartel linked individual based in Houston, Texas. In June of 2021, Smith was robbed of a large amount of cash and was unable to pay his supplier for the lost product. Smith resorted back to Green to obtain the crystal methamphetamine.

    DeJarnett was one of Smith’s top methamphetamine customers, often purchasing up to 20 pounds at a time. After Smith obtained the methamphetamine from either Green or his Mexican source of supply, he then distributed the methamphetamine to mid -level distributors in Indianapolis and Evansville.   

    In September 2021, Smith branched out to also begin selling large quantities of fentanyl-laced pills. Smith would obtain fentanyl powder from Markey and/or Moore, who would then press the powder into pills. Smith then used his same distributors to distribute the fentanyl throughout Southern Indiana. Law enforcement seized an automated pill press during the course of the investigation. Smith also used violence and intimidation to further his drug business by having his distributors robbed of their drug proceeds at gun point.

    Additionally, several members of the drug trafficking used firearms to protect themselves and their profits. In total, law enforcement officers seized over 30 firearms from the defendants during court-authorized searches at multiple locations in Indianapolis and Evansville.

    The charges and sentences are described below:

    Defendant Charge(s) Prison Sentence
    Jeramey Smith, 35
    Indianapolis, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Conspiracy to Possess with the Intent to Distribute Fentanyl

    Felon in Possession of a Firearm

    Obstruction of Commerce by Robbery

    240 months (20 years)

    5 years supervised release

    Julian Green, 36

    Indianapolis, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Felon in Possession of a Firearm

    210 months (17.5 years)

    Indianapolis, IN

    Hannah Kissel, 28

    Indianapolis, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Conspiracy to Possess with the Intent to Distribute Fentanyl

    97 months (8 years)

    3 years supervised release

    Jordan Wilson, 41

    Evansville, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Conspiracy to Possess with the Intent to Distribute Fentanyl

    Felon in Possession of a Firearm

    216 months (15.7 years)

    5 years supervised release

    Timothy Rice, 35

    Evansville, IN

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    204 months (17 years)

    5 years supervised release

    Archilles Johnson, 40

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Deonte Howard, 36

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Julie Hunt, 37

    Petersburg, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Conspiracy to Possess with the Intent to Distribute Fentanyl

    60 months (5 years)

    3 years supervised release

    Torrance Mimms, 34

    Evansville, IN

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Keisha Jewell, 40

    Princeton, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Conspiracy to Possess with the Intent to Distribute Fentanyl

    108 years (9 years)

    3 years supervised release

    Davion Hays, 38

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    144 months (12 years)

    5 years supervised release

    Jason Mitchell, 43

    Henderson, KY

    		 Conspiracy to Distribute Methamphetamine

    204 months (17 years)

    5 years supervised release

    Denny Taylor, 49

    Princeton, IN

    		 Conspiracy to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Aaron Hardiman, 42

    Princeton, IN

    		 Conspiracy to Distribute Fentanyl

    120 months (10 years)

    5 years supervised release

    Roman Wills, 43

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Michael Sanders, 48

    Owensboro, KY

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    168 months (14 years)

    5 years supervised release

    Gregory Snyder, 62

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    36 months (3 years)

    4 years supervised release

    Joshua Gahagan, 41

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Gregory Markey, 35

    Indianapolis, IN

    		 Conspiracy to Possess with the Intent to Distribute Fentanyl

    168 months (14 years)

    5 years supervised release

    L.C. Moore, II, 31

    Indianapolis, IN

    		 Conspiracy to Possess with the Intent to Distribute Fentanyl

    120 months (5 years)

    5 years supervised release

    Dominique Baquet, 31

    Indianapolis, IN

    		 Obstruction of Commerce by Robbery

    57 months (4.7 years)

    3 years supervised release

    Antonio DeJarnett, 36

    Evansville, IN

    		 Conspiracy to Distribute Methamphetamine

    264 months (22 years)

    5 years supervised release

    Ryan Pinkston, 42

    Evansville, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Felon in Possession of Ammunition

    240 months (20 years)

    5 years supervised release

    Robert Embry, 46

    Evansville, IN

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    60 months (5 years)

    5 years supervised release

    Becky Edwards, 39

    Evansville, IN

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    120 months (10 years)

    5 years supervised release

    Edward Meredith, 59

    Evansville, IN

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    120 months (10 years)

    5 years supervised release

    Joshua Wilson, 33

    Evansville, IN

    		 Use of a Communication Facility with the Intent to Commit or Facilitate the Distribution of Methamphetamine

    30 months (2.5 years)

    No supervised release

    Tabitha Seabeck, 32

    Henderson, KY

    		 Conspiracy to Possess with the Intent to Distribute Methamphetamine

    180 months (15 years)

    5 years supervised release

    Zachary Addison, 42

    Evansville, IN

    Conspiracy to Possess with the Intent to Distribute Methamphetamine

    Felon in Possession of a Firearm

    300 months (25 years)

    5 years supervised release

    “The members of this conspiracy will spend decades in federal prison for pumping pounds of methamphetamine and fentanyl onto our streets,” said John E. Childress, Acting United States Attorney for the Southern District of Indiana. “Drug use devastates so many families and kills hundreds of Hoosiers every year. That’s why we will work with our federal, state, and local law enforcement partners to dismantle armed organizations trafficking in deadly drugs. The sentences imposed in this case demonstrate our continued commitment to protecting the public from these dangerous criminals.”

    “Dismantling a major drug trafficking organization that was responsible for distributing multi-hundred-pound quantities of methamphetamine and kilogram quantities of fentanyl onto the streets of Indiana was a big win for law enforcement. Because of the exceptional collaborative efforts by law enforcement, we were able to achieve this remarkable outcome,” said DEA Assistant Special Agent in Charge, Michael Gannon. “This investigation was a wonderful victory for all Hoosiers and sends a crystal-clear message to major drug dealers we will continue working together with our partners to dismantle their illicit operations.”   

    “This sentencing is a significant victory in the relentless fight against the trafficking of deadly drugs and underscores the FBI’s commitment to pursue those who wreak havoc on our communities through their illegal drug trade,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI will continue to work with our law enforcement partners to ensure those who endanger public safety and contribute to this crisis are held accountable.”

    “I would like to thank the dedicated Evansville Police Officers and Vanderburgh County Sheriff’s Office Deputies as well as our federal partners in the DEA and US Attorney’s Office for their roles in getting these individuals off our streets. The manufacturing and distribution of methamphetamine and fentanyl have brought death and destruction to our communities and have done irreversible damage to families in the worst way possible. This community will not tolerate that kind of behavior and illegal activity, and we will use every resource available to us to stop it and put dealers behind bars.”

    This case was investigated by the Drug Enforcement Administration’s Evansville Resident Office, with the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Evansville Vanderburgh County Joint Task Force, DEA Indianapolis and Indianapolis Metro Drug Task Force providing valuable assistance. The sentenced were imposed by U.S. District Court Judge Matthew P. Brookman.

    Acting U.S. Attorney John E. Childress thanked Assistant United States Attorneys Lauren Wheatley and Jeremy Kemper, who prosecuted this case. 

    According to the Drug Enforcement Administration, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage—a tiny amount that can fit on the tip of a pencil. Seven out of ten illegal fentanyl tablets seized from U.S. streets and analyzed by the DEA have been found to contain a potentially lethal dose of the drug.

    One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl has now become the leading cause of death for adults in the United States. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Convicted Felon Sentenced to Seven Years for Possession of Firearm

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Sherron Gary (41, Tampa) to seven years in federal prison for possessing a firearm and ammunition as a convicted felon. Gary pleaded guilty in October 2024.

    According to court documents, on April 9, 2023, officers with the Tampa Police Department (TPD) attempted a traffic stop on a vehicle driven by Gary after observing the vehicle had a broken taillight. Gary failed to pull over and instead fled from the officers at a high rate of speed. A police helicopter followed Gary. After Gary’s vehicle was boxed in by law enforcement, Gary fled from the officers on foot, which the helicopter was also able to capture.

    As Gary fled, the helicopter crew observed Gary discard an item as he was running that resembled a firearm. TPD officers apprehended Gary. After the arrest, the helicopter crew directed officers back to the location where they had observed Gary discard the firearm. Officers located a 9mm Walther Creed semiautomatic pistol at the location.

    At the time, Gary had four prior felony convictions, including aggravated battery and armed burglary of a dwelling, trafficking of cocaine, delivery of cocaine, and delivery of cocaine within 1,000 feet of church. As a convicted felon, Gary is prohibited from possessing firearms or ammunition under federal law.

    This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture was handled by Assistant United States Attorney Suzanne Nebesky.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI –

  • MIL-OSI Security: Serial Fraudster Sentenced to 10 Years in Federal Prison for Stealing Nearly $3 Million and Five Indianapolis Homes

    Source: Federal Bureau of Investigation (FBI) State Crime News

    EVANSVILLE— James Henley, 35, of Greenwood, Indiana, has been sentenced to ten years in federal prison, followed by three years of supervised release after pleading guilty to aggravated identity theft, conspiracy to commit access device fraud, two counts of money laundering, and eight counts of wire fraud. Henley has also been ordered to pay $1,887,426.63 in restitution.

    According to court documents, over the course of three years, Henley orchestrated multiple large and complex fraud schemes, resulting in a total loss of $2,927,758.95 to individual homeowners, an Indiana attorney, a bank, and ten state governments. As part of his fraud schemes, Henley registered five fake businesses (OnTrack Real Estate Solutions, LDI Investments Corp, Lucario Investments, 317 Traffic, and Henley Real Estate Solutions) with the states of Indiana and Kentucky, claiming to serve as the Chief Executive Officer for most of them. None of the businesses were legitimate. Instead, Henley used the businesses to mask his identity, make his schemes appear more credible, and launder the stolen money.

    Henley’s schemes are broken down as follows:

    COVID-19 Fraud:

    Between May 2020 and March 2021, James Henley, his wife Jameka Henley, and his associate Jimmie Bickers used the stolen personally identifiable information of 76 real individuals to submit 120 unemployment insurance applications to ten states during the COVID-19 pandemic. Once the applications were approved, the trio used 65 unemployment insurance debit cards to make purchases at retailers and withdraw cash at ATMs in the Evansville and Indianapolis areas. The states paid a total of $1,119,426.63 in unemployment benefits in connection with the group’s fraudulent applications.  In July 2020, Henley used funds withdrawn from ATMs to buy a Chevrolet Camaro for $22,801.

    Bickers and Jameka Henley have been formally charged for their roles in this scheme but have not pleaded guilty.

    Home Title Fraud:

    Between December 2021 and May 2023, Henley stole five homes in Indianapolis by filing fraudulent deeds with the Marion County Recorder’s Office. Through the filings, Henley claimed that the homeowners had sold their homes to his fake businesses, but, in reality, he had never even spoken with the homeowners.  Unbeknownst to the victims, Henley filed these fraudulent deeds and then sold the homes for significantly less than their market value, pocketing more than $260,000 in profits.

    Henley also attempted to steal and sell an additional 14 homes in Indianapolis and Evansville.  With one exception, the individuals who bought the homes from Henley took possession and ultimately kept the homes.

    For one homeowner, the property Henley stole was her childhood home. She purchased the home while her mother was in the hospital with the hope that, when her mother’s condition improved, her mother would be able to live out her remaining years in the house.

    Mortgage Fraud:

    In November 2021, an associate of Henley’s purchased a home in Indianapolis, using a mortgage loan from a bank.  In April 2022, Henley filed a fraudulent document with the Marion County Recorder’s Office to make it seem as if the mortgage loan had been paid off, when it had not been paid. Henley then filed a deed naming himself a joint owner of the home. Henley and his associate subsequently sold the property for $255,000, pocketing all the proceeds, even though the bank should have received the majority of the funds.

    Auto Loan Fraud:

    In March 2023, Henley purchased a Dodge Durango in Indianapolis for $71,479, using an auto loan from Everwise Credit Union. A few months later, in June 2023, Henley purchased a Chevrolet Silverado in Plainfield for $54,270, using a second loan from Everwise Credit Union.

    In October 2023, Henley connected a JPMorgan Chase bank account to his auto loans, via Everwise’s online payment portal.  Henley falsely represented that the Chase account belonged to Jimmie Bickers, and that he had authority to make payments on his loans using funds from the Chase account.

    The Chase account was actually an Indiana attorney’s Interest on Lawyers’ Trust Account (IOLTA), which is a highly regulated bank account used by lawyers to hold client funds.  The interest earned on IOLTA accounts is used to fund grants for nonprofit groups that promote pro bono and access to justice programs. Henley did not have the attorney’s permission to access or withdraw funds from the IOLTA account.

    Between October and November 2023, Henley used the IOLTA account to make two payments, totaling $98,000, toward his auto loans.

    Henley has prior felony convictions for financial crimes, including theft, forgery, and fraud.

    “James Henley went to great lengths to coordinate exceptionally greedy, complex schemes that exploited hard-working families and state government programs,” said John E. Childress, Acting U.S. Attorney for the Southern District of Indiana. “Undeterred by prior felony convictions for the same conduct, this defendant stole over a million dollars, wreaking financial and logistical havoc on hundreds of victims. The Department of Justice will continue to work with our law enforcement partners to investigate allegations of fraud and seek prosecution as appropriate.”

    “James Henley filed fraudulent unemployment insurance (UI) claims in the names of identity theft victims in order to receive UI benefits to which he was not entitled. He enriched himself by defrauding a program that was intended to assist struggling American workers during an unprecedented global pandemic,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We and our law enforcement partners are committed to protecting the integrity of the UI system from those who seek to exploit this critical benefit program.”

    “This lengthy prison sentence sends a clear message: individuals who attempt to exploit and commit financial crime and identity theft will be brought to justice,” said Ramsey E. Covington, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “IRS Criminal Investigation and our fellow law enforcement partners are committed to protecting the integrity of our financial institutions and will continue to hold criminals like James Henley accountable to the fullest extent of the law.”

    “This case should serve as a powerful reminder that individuals with a history of financial crimes will face significant consequences when they demonstrate a blatant disregard for the law and continue to exploit and deceive others for personal gain,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI, working alongside our law enforcement partners, will continue to hold those who perpetuate such offenses accountable and protect the public from those who manipulate the system for their own benefit.”

    The Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Department of Labor-Office of the Inspector General, and the Indiana Attorney General’s Office Homeowner Protection Unit investigated this case. The sentence was imposed by U.S. District Judge Matthew B. Brookman.

    Acting U.S. Attorney Childress thanked Assistant U.S. Attorney Matthew Miller, who prosecuted this case.

    On May 17, 2021, the Attorney General established the COVID‑19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.

    Anyone with information about allegations of attempted fraud involving COVID‑19  can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

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  • MIL-OSI Security: Providence Man Pleads Guilty to Fentanyl Trafficking Charge

    Source: Office of United States Attorneys

    PROVIDENCE, RI – A Providence man who was the target of an FBI Safe Streets Task Force investigation into drug trafficking pleaded guilty on Tuesday in federal court to a charge of possession with intent to distribute fentanyl, announced United States Attorney Zachary A. Cunha.

    According to charging documents and information presented to the court, a court authorized search of the Providence residence of Montrell Dennis, 34, on May 3, 2024, resulted in the discovery of several plastic baggies containing fentanyl and an assortment of other drugs. Toxicology reports of the seized narcotics indicate there were 29.4 grams of a mixture containing Fentanyl, Heroin, Cocaine, and Xylazine and 1.37 grams of crack cocaine. Multiple digital scales, multiple smartphones, and two firearms were also seized.

    Dennis, who has been detained since his arrest on May 3, 2025, is scheduled to be sentenced on April 22, 2025. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.

    The case is being prosecuted by Assistant United States Attorneys Peter I. Roklan and Taylor A. Dean.

    The matter was investigated by the FBI Rhode Island Safe Streets Gang Task Force.

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  • MIL-OSI Security: Lycoming County Man Charged With Child Exploitation Crimes

    Source: Office of United States Attorneys

    SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Stout, age 48, a resident of Lycoming County, Pennsylvania, was indicted on February 4, 2025, by a federal grand jury with production of child pornography, online enticement, receipt of child pornography, and possession of child pornography.

    According to Acting United States Attorney John C. Gurganus, the indictment alleges that Stout used the internet and an electronic device to persuade and coerce a minor to engage in sexual conduct and to produce child pornography.  The indictment also alleges that on or about July 28, 2024, Stout received child pornography and on August 23, 2024, Stout possessed child pornography. 

    The investigation was conducted by the Federal Bureau of Investigations –Philadelphia-RAC Williamsport, the Hughesville Borough Police Department, the Pennsylvania State Police, and the Lycoming County District Attorney’s Office.  Assistant United States Attorney Tatum R. Wilson is prosecuting the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.

    The maximum penalty under federal law for the crimes charged in the Indictment is life imprisonment, a term of supervised release following imprisonment, and a fine.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

    Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

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  • MIL-OSI Security: Montgomery Man Sentenced to 20 Years in Federal Prison for Production of Child Sexual Abuse Material

    Source: Office of United States Attorneys

               Montgomery, Ala. – Today, Acting United States Attorney Kevin Davidson announced the sentencing of a Montgomery, Alabama man for producing child sexual abuse material. On January 30, 2025, a federal judge ordered 49-year-old Cleveland Dewayne Chambers to serve 240 months in prison. The judge also ordered that Chambers remain on supervised release for seven years following his prison term. There is no parole in the federal system.

               According to Chamber’s plea agreement and other court records, in July 2022, law enforcement in Pennsylvania were conducting a child exploitation investigation on an individual in the City of Eaton. Investigators in that case discovered electronic communications leading them to suspect Chambers was also involved in producing or sharing illegal images of children. Further investigation revealed that, from March 2022 through July 2022, Chambers communicated with a woman in St. Louis, Missouri, directing her to create images and videos of sexually explicit conduct with her two-year-old child. Chambers would then share and distribute the images and videos to others using a messaging application on his cellphone.

               “Protecting children from exploitation is one of law enforcement’s most important responsibilities,” stated Acting United States Attorney Davidson. “Producing and trading in child sexual abuse material is an incredibly tragic crime that robs children of their innocence and inflicts long lasting harm. While all child sexual exploitation is unacceptable, the sexual abuse of a two-year-old is absolutely reprehensible. I applaud the efforts of all the agencies involved in this case for stopping Chamber’s criminal activity before more children were victimized.”

               This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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, please visit Justice.gov/PSC.

               The U.S. Department of Homeland Security Investigation (HSI) investigated this case, with assistance from the Montgomery Police Department and the Alabama Law Enforcement Agency. Assistant United States Attorney Tara S. Ratz prosecuted the case. 

     

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  • MIL-OSI Security: Jacksonville Convicted Child Sex Offender Pleads Guilty To Attempting To Entice A 13-Year-Old To Engage In Sexual Activity

    Source: Office of United States Attorneys

    Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Jeremy Wayne Leggett (38, Jacksonville) has pleaded guilty to attempting to entice a child to engage in sexual activity. Leggett faces a minimum penalty of 10 years, up to life, in federal prison, and a potential lifetime term of supervised release. Leggett is a registered child sex offender, having been previously convicted in Florida in 2020 of traveling to meet a minor to commit an unlawful sexual offense and transmitting harmful materials to a minor. Leggett was arrested on June 19, 2023, and has been in custody since then. His sentencing hearing is scheduled for April 28, 2025.   

    According to court documents, on June 16, 2023, an undercover FBI agent (UC) in the Jacksonville area, posing as a minor child, was working online in a particular social media application (app) to identify individuals seeking to contact and engage in sexual activity with children. The UC engaged in an online conversation with an app user “dAddi” who posted a notice in a public chatroom that read “Lookingfor[under 18 emoji] wannaspoiladaughter.” During this online conversation, user “dAddi,” who was subsequently identified as Leggett, was advised that the “child” was 13 years old. Leggett asked if the “child” “[l]ike[d] older men,” and sent the “child” a photo of himself. After more conversation, Leggett suggested that they meet in person for sexual activity, and he sent the “child” an explicit photo of himself. On June 17, 18, and 19, 2023, Leggett reinitiated text messages with the UC and continued attempting to persuade the “child” to meet for sex and to send him sexually suggestive photos.

    On June 19, 2023, Leggett and the “child” made arrangements to meet at a location in Jacksonville. Later that evening, Leggett went to the agreed-upon location and drove around the parking lot for about 30 minutes. When law enforcement officers attempted to make contact with Leggett, he quickly reversed his vehicle and fled the scene. A short time later, officers with the Jacksonville Sheriff’s Office and FBI agents located Leggett at a home in Jacksonville and he was arrested. 

    This case was investigated by the Federal Bureau of Investigation, the Jacksonville Sheriff’s Office, and the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

    It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. 

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  • MIL-OSI Security: Defense News: Chief of Navy Reserve Visits Camp Lemonnier

    Source: United States Navy

    Lacore, a former commanding officer of CLDJ, returned to the installation for the first time since being sworn in as the 16th Chief of Navy Reserve. The visit provided an opportunity to view the installation’s advancements, share her Strategic Advantage vision and connect with Reserve Force Sailors.

    During the visit, Lacore and Hunt toured Morale, Welfare and Recreation (MWR) facilities and met with Sailors assigned to the Military Working Dogs (MWDs) unit, the Emergency Medical Facility (EMF) and the Maritime Expeditionary Security Squadron (MSRON) 8. Meeting with the Sailors in their various operational environments allowed Lacore to witness firsthand their operational readiness and capabilities.

    Lacore also recognized five Sailors for exemplary leadership and commitment to their fellow warfighters. During a town hall with Reserve Force Sailors assigned to CLDJ, she addressed questions and concerns about policies, leadership and future deployment opportunities for reservists.

    “Getting a chance to speak with her and ask questions was really encouraging,” said Logistics Specialist 2nd Class Maya Castillo-Rodriguez. “It feels good knowing she really is looking out for us and cares about what we have to say.”

    Lacore spoke on the strategic advantage the U.S. Navy Reserve Force provides to the Joint and Combined Force. She noted that Reserve Force Sailors fill more than half of the Navy’s independent mobilization assignments, serving alongside active-duty counterparts at every level to ensure the Navy’s readiness and ability to mobilize around the world.

    “We are prepared to mobilize a worldwide deployable Force,” said Lacore. “Delivering strategic depth at scale, trained and ready to contribute to the fight. We will posture our Force for warfighting by accelerating the pace of organizational development and strengthening our warfighters.”

    Camp Lemonnier is an operational installation that enables U.S., allied and partner nation forces to be where they are needed to ensure security and protect U.S. interests. The installation provides world-class support for service members, transient U.S. assets and 36 local tenant commands. (U.S. Navy story be Mass Communication Specialist 2nd Class Maurice Brown)

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  • MIL-OSI Security: Guatemalan Nationals Charged for Alleged Possession of Firearms Following IH-35 Road Rage Complaint

    Source: Office of United States Attorneys

    WACO, Texas – Two Guatemalan nationals were arrested in Waco on criminal charges related to their alleged aiding and abetting the possession of a firearm as undocumented noncitizens.

    According to court documents, Anderson Morales-Calderon and Ever Morales-Calderon were subjected to a traffic stop on Jan. 24, by officers from the Troy Police Department (TPD) and Lorena Police Department (LPD) as response to a road rage complaint called into 911. The 911 caller alleged that an individual pointed a rifle at a semi-truck on IH-35. During the traffic stop, officers observed two air rifles and one .22 rifle in plain view in the back seat and on the back floorboard of the vehicle. Further investigation revealed that both Anderson and Ever Morales-Calderon were unlawfully present in the United States.

    The two defendants were in federal court in Austin Tuesday for their initial appearances. If convicted, they each face up to 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Immigration and Customs Enforcement are investigating the case with the assistance of the TPD and LPD.

    Assistant U.S. Attorney Stephanie Smith-Burris is prosecuting the case.

    A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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  • MIL-OSI Security: Mississippi Man Sentenced to Over Eight Years in Federal Prison After Being Convicted for Being a Felon in Possession of a Firearm and Ammunition

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

          JONESBORO—Robert Wilburn, a multi-convicted felon, will spend the next 100 months in federal prison for being a felon in possession of a firearm and ammunition. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by United States District Lee P. Rudofsky.

          On March 15, 2022, deputies from the Mississippi County Sheriff’s Office responded to a vehicle that was stopped on the side of the road. Deputies located Wilburn asleep behind the wheel of the vehicle. While attempting to wake Wilburn, deputies noticed the smell of intoxicants and marijuana in the vehicle. After repeated attempts, deputies were finally able to wake Wilburn, whose speech was incoherent. Deputies removed Wilburn from the vehicle and placed him in handcuffs. During a search of Wilburn’s vehicle, deputies located in plain view next to the center console a Glock 43, 9mm firearm that contained a loaded magazine and one round in the chamber. In the center console, deputies located a box of 9mm ammunition that matched the ammunition found inside of the firearm. Deputies also located a second magazine in the glovebox. Deputies found an open beer can in the center cup holder that was cold to the touch and a small amount of marijuana in the pocket of the driver’s side door.

          On February 9, 2023, Wilburn, 32, of Inverness, Mississippi, was indicted on one count of being a felon in possession of a firearm and ammunition. On August 21, 2024, a jury found Wilburn guilty after a two-day jury trial conducted in the Jonesboro federal courthouse.

          Judge Rudofsky also sentenced Wilburn to three years’ supervised release. There is no parole in the federal system.

          The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Mississippi County Sheriff’s Office. This case was prosecuted by Assistant United States Attorneys Erin O’Leary and Katie Hinojosa.

    # # #

    Additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    X (formerly known as Twitter):

    @USAO_EDAR 

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  • MIL-OSI Security: Harbour Grace — Driver flees from Harbour Grace RCMP, arrested after colliding with police car

    Source: Royal Canadian Mounted Police

    Twenty-eight-year-old Geoffrey Parsons from Bay Roberts fled from police in Carbonear and was arrested overnight by Harbour Grace RCMP after colliding with a police car on February 4, 2025.

    Shortly after 2:00 a.m. yesterday, Harbour Grace RCMP attempted to conduct a traffic stop on a vehicle in Carbonear. The driver failed to stop for police and fled towards Tilton. A spike belt was deployed but was unsuccessful as the driver doubled back and struck the police car. The suspected vehicle further fled and was located behind a nearby business in Tilton.

    Police located and arrested the driver, Geoffrey Parsons, after a search of the area. He attended court yesterday and remains in custody to appear in court again today in relation to the following charges: resisting arrest, flight from police (two counts), dangerous driving (two counts), assault with a weapon (two counts), and mischief causing damage over $5,000.

    No one was injured during this incident. The investigation is ongoing.

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  • MIL-OSI Security: Enoch — Enoch RCMP charge male with pointing a firearm

    Source: Royal Canadian Mounted Police

    On Jan. 25, 2025, Enoch RCMP received a report of a break and enter where the suspect broke down the victim’s door and pointed a firearm at them before leaving.

    Enoch RCMP immediately attended and began to search for the suspect. RCMP were successful in locating and arresting the suspect at another residence.

    A search was conducted and RCMP seized a sawed-off rifle, which is believed to have been used in the offence.

    RCMP have charged a 32-year-old individual, a resident of Enoch, with:

    • Pointing a firearm (x4);
    • Weapons offences (x3);
    • Breaking and entering;
    • Fail to comply with release conditions (x2);
    • Mischief.

    The individual was taken before a justice of the peace and remanded into custody with his net court date set for Jan. 29, 2025, at the Alberta Court of Justice in Stony Plain, Alta.

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  • MIL-OSI Security: Georgia Man Indicted for Firearm Charge in 2023 Shooting of SCHP Trooper

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    COLUMBIA, S.C. — A federal grand jury in Columbia returned a single-count indictment against Derrick Gathers, 38, of Augusta, Georgia, for being a felon in possession of a firearm.

    The indictment alleges that on April 16, 2023, Gathers possessed a firearm and ammunition during an incident where he shot at a South Carolina State Trooper. Gathers has been charged in state court for a number of other charges related to the incident. Gathers has a previous felony conviction that prevents him from possessing a firearm or ammunition.

    The trooper, Lance Corporal Frazier, has recovered.

    Gathers faces a maximum penalty of 15 years. Gathers was already detained on state charges.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Carolina Law Enforcement Division, Orangeburg County Sheriff’s Office, Dorchester County Sheriff’s Office, and the Bamberg Police Department.  Assistant U.S. Attorney Lamar Fyall is prosecuting the case.

    All charges in the indictment are merely accusations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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  • MIL-OSI Security: Kanawha County Man Pleads Guilty to Federal Gun Crime

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    CHARLESTON, W.Va. – Jason Douglas MaComber, 52, of St. Albans, pleaded guilty today to being a felon in possession of a firearm.

    According to court documents and statements made in court, on June 12, 2023, MaComber possessed a Remington model 870 Wingmaster 12-gauge shotgun in St. Albans.

    Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. MaComber knew he was prohibited from possessing a firearm because of his prior felony convictions for possession of dangerous drugs/controlled substances on November 20, 2007, possession of a firearm by a felon on June 24, 2014, and illegal firearm transportation on July 1, 2019, all in San Bernardino, California, Superior Court.

    The shotgun had a modified and shortened barrel. The short-barreled shotgun was not registered to MaComber in the National Firearms Registration and Transfer Record as required by federal law.

    MaComber is scheduled to be sentenced on April 22, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.

    United States Attorney Will Thompson made the announcement and commended the investigative work of the South Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

    United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney JC MacCallum is prosecuting the case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-148.

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  • MIL-OSI Security: Law enforcement targets online cult communities dedicated to extremely violent child abuse

    Source: Europol

    Law enforcement authorities target members of prolific online communities dedicated to the sexual abuse of children and manipulation of vulnerable minors into committing violent crimes. This coercion into committing violent crime spans multiple areas, including acts of cruelty against people and animals, murder and self-harm. These extremist communities are part of a larger online network, so called “The Com”. Through…

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  • MIL-OSI Security: Australia, Japan, Philippines, and United States Conduct Multilateral Maritime Cooperative Activity

    Source: United States INDO PACIFIC COMMAND

    The combined armed and defense forces of Australia, Japan, the Philippines, and the United States, demonstrating a collective commitment to strengthen regional and international cooperation in support of a free and open Indo-Pacific, will conduct a Multilateral Maritime Cooperative Activity within the Philippines’ Exclusive Economic Zone, Feb. 5, 2025.

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  • MIL-OSI Security: US and Philippines Commemorate the 80th Anniversary of the Cabanatuan Raid

    Source: United States INDO PACIFIC COMMAND

    CABANATUAN CITY, Philippines  –  

    On Feb. 1, 2025, American and Filipino dignitaries, military leaders, and local officials gathered at the Cabanatuan American Memorial to honor the 80th anniversary of the Cabanatuan Raid. This daring World War II rescue mission saved 511 Allied prisoners of war. The event commemorated the courage, sacrifice, and partnership that defined this historic operation.

    The Cabanatuan Raid, also known as “The Great Raid,” demonstrated the unmatched coordination and bravery of the United States Army 6th Ranger Battalion, Filipino guerrillas and local resistance fighters. Conducted on Jan. 30, 1945, this was the first combat mission for the 6th Ranger Battalion after rigorous training under Lt. Col. Henry Mucci and led by Capt. Robert Prince.

    “The raid on Cabanatuan was a resounding success. Over 500 Allied prisoners were liberated, brought back from the brink of death to the embrace of freedom. It was a victory not just for the soldiers rescued but for the ideals of liberty and human dignity that our nations hold dear,” said Ambassador MaryKay L. Carlson, U.S. Ambassador to the Philippines. “This was not just a military operation; it was a testament to the strength of the partnership between U.S. and Philippine forces, a symbol of hope in the darkest days of war, and a powerful reminder of the human cost of conflict.”

    The ceremony included a wreath-laying to pay tribute to those who sacrificed their lives, a historical account delivered by Dr. Mike Krivdo, U.S. Army Pacific historian, and remarks from representatives of the 2nd Battalion, 75th Ranger Regiment, the modern-day successors of the 6th Ranger Battalion.

    Dr. Mike Krivdo provided historical context and noted, “In all the annals of military history, the Raid at Cabanatuan is on the short list to be studied by military leaders, exciting the imagination with its near flawless execution and impact. The Raid exemplified ingenuity, determination and collaboration.”

    “It is a shining example of how U.S. and Filipino forces came together in wartime to overcome insurmountable odds for the most noble of causes. This legacy will forever inspire generations of Soldiers and leaders.”
    The raid’s success was rooted in meticulous planning, precision, and an unbreakable commitment to never leave a fallen comrade. These ideals laid the foundation for the Ranger Creed, which was later written in 1974 by Command Sgt. Maj. Neal R. Gentry, the first command sergeant major of the reactivated 1st Ranger Battalion. Today, Rangers uphold these values in their missions worldwide.

    “As we reflect on their heroism, let us also remember the lessons they left behind,” said Capt. David Bryan, a Ranger with 2nd Battalion, 75th Ranger Regiment. “The Raid at Cabanatuan teaches us that even in the face of overwhelming odds, unity and determination can achieve the extraordinary. It reminds us that the fight for justice and liberty is a collective effort, requiring the collaboration of nations, the strength of communities, and the resolve of individuals.”

    The Cabanatuan Raid would not have been possible without the invaluable support of Filipino guerrillas, whose local knowledge and determination were crucial to the mission’s success. This partnership ensured the operation’s success and solidified a bond between the U.S. and the Philippines that remains strong today.

    As the U.S. Army commemorates 80 years since the end of World War II, it remains focused on meeting the challenges of the 21st century. The Army’s presence in the Indo-Pacific remains vital, fostering peace and stability through strong alliances and unwavering readiness to address emerging threats. By honoring its past and strengthening its partnerships, the U.S. Army continues to serve as a powerful deterrent in one of the world’s most strategically significant regions.

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  • MIL-OSI Security: U.S. Army Japan Begins North Wind 25

    Source: United States INDO PACIFIC COMMAND

    CAMP MAKOMANAI, Japan  –  

    U.S. Army Japan begins North Wind 25, a bilateral cold-weather field training exercise designed to enhance combat readiness and promote interoperability with the Japan Ground Self-Defense Force running through February 9, 2025, at Camp Makomanai and the Hokudai-en Hokkaido Large Training Area in Hokkaido, in northern Japan.

    The exercise is comprised of approximately 190 U.S. Soldiers from the 1st Battalion, 5th Infantry Regiment and approximately 400 members of the 18th Infantry Regiment, 11th Brigade, Northern Army, Japan Ground Self Defense Force.

    “The U.S.-Japan alliance, an alliance spanning 60 years, is the foundation of a regional peace and stability,” said Col. Matthew Hall, U.S. Army Japan Chief of Operations and Deputy Chief of Staff. “North Wind is an important piece out of many exercises that build and maintain a stronger alliance and stability in the region.”

    North Wind 25 is a routine exercise that is conducted annually, to enhance bilateral tactical operations at the squad through company level and reaffirm the U.S. commitment to the defense of Japan against external aggression.

    “Our training objectives are improving bilateral operational capability, tactical skills and interoperability in the Arctic environment,” said Major General Yoshiki Adachi, commanding general, 11th Brigade, Northern Army, Japan Ground Self Defense Force.

    During the exercise, U.S. Soldiers and JGSDF members will exchange tactics, techniques, produces and fieldcraft for an extreme cold weather and develop cross country ski and snowshoe mobility and maneuver proficiency over uneven terrain and mountainous environment.

    Bilateral training exercises like North Wind strengthen our relationships and increase interoperability with allies and partners through shared experiences and tough, realistic activities.This enduring alliance highlights not only the strength of our partnership, but also our continued ability to meet new challenges together.

    JGSDF and the U.S Army are proud of their history of staying trained and ready.

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