Category: Legal Issues

Source: United States Department of Justice

A former IRS contractor was sentenced today to five years in prison for disclosing thousands of tax returns without authorization.

“Charles Littlejohn abused his position as a consultant at the Internal Revenue Service by disclosing thousands of Americans’ federal tax returns and other private financial information to news organizations. He violated his responsibility to safeguard the sensitive information that was entrusted to his care, and now he is a convicted felon,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Today’s sentence sends a strong message that those who violate laws intended to protect sensitive tax information will face significant punishment.”

According to court documents, Charles Littlejohn, 38, of Washington, D.C., while working at the IRS as a government contractor, stole tax return information associated with a high-ranking government official (Public Official A). Littlejohn accessed tax returns associated with Public Official A (and related individuals and entities) on an IRS database after using broad search parameters designed to conceal the true purpose of his queries. He then uploaded the tax returns to a private website in order to avoid IRS protocols established to detect and prevent large downloads or uploads from IRS devices or systems. Littlejohn then saved the tax returns to multiple personal storage devices, including an iPod, before contacting News Organization 1. Between around August 2019 and October 2019, Littlejohn provided News Organization 1 with the tax return information associated with Public Official A. Littlejohn subsequently stole additional tax return information related to Public Official A and provided it to News Organization 1. Beginning in September 2020, News Organization 1 published a series of articles about Public Official A’s tax returns using the tax return information obtained from Littlejohn.

“This sentence should serve as a warning to anyone who is considering emulating Mr. Littlejohn’s actions,” said Acting Inspector General Heather Hill of the Treasury Inspector General for Tax Administration (TIGTA). “TIGTA relentlessly investigates individuals who illicitly access and disclose taxpayer information, regardless of their personal motivation. TIGTA appreciates the commitment of the Criminal Division’s Public Integrity Section and the U.S. Attorney’s Office in ensuring those who abuse their positions of public trust are held accountable for their actions.”

In July and August 2020, Littlejohn separately stole tax return information for thousands of the nation’s wealthiest individuals. Littlejohn was again able to evade detection by uploading the tax return information to a private website. In November 2020, Littlejohn disclosed this tax return information to News Organization 2, which published nearly 50 articles using the stolen data. Littlejohn then obstructed the forthcoming investigation into his conduct by deleting and destroying evidence of his disclosures.

Littlejohn pleaded guilty in October 2023 to unauthorized disclosure of tax returns and return information.

TIGTA investigated the case.

Trial Attorney Jonathan E. Jacobson and Deputy Chief Jennifer Clarke of the Criminal Division’s Public Integrity Section prosecuted the case, with substantial assistance from Assistant U.S. Attorney Eleanor Hurney for the Northern District of West Virginia.

Source: United States Department of Justice

On Friday, a federal jury convicted two Ohio men of tax, gambling, money laundering, conspiracy and obstruction crimes related to their operation of illegal gambling businesses in Canton and their scheme to conceal the illicit proceeds from those businesses to avoid paying taxes. Two others involved in the conspiracy pleaded guilty.

Convictions

According to court documents and evidence presented at trial, between 2009 and 2018, Christos Karasarides Jr. and Ronald DiPietro, together with others, operated multiple illegal gambling businesses, including Skilled Shamrock, as part of an organized criminal operation. At Skilled Shamrock, which primarily operated slot machines, patrons gambled more than $34 million between 2012 and 2017, with Skilled Shamrock’s owners retaining more than $7 million. Karasarides and DiPietro sought to conceal their ownership of the gambling businesses through the use of nominee owners and sham contracts.

Karasarides owed the IRS more than $2 million in taxes on income he earned gambling and from other businesses he ran, which the IRS was trying to collect. DiPietro, who was also a Certified Public Accountant, assisted Karasarides in thwarting the IRS’s collection efforts by falsely representing to the IRS, including by preparing tax returns for Karasarides, that Karasarides did not have the assets or income to pay his taxes. Evidence at trial also showed that Karasarides conspired to launder money from his gambling businesses to make it more difficult for the IRS to seize his home by using a straw purchaser to disguise his ownership of it.

Karasarides and DiPietro used the proceeds of their schemes to purchase luxury vehicles and buy and sell property. Karasarides also took several extravagant gambling trips, making millions of dollars of bets at legal casinos throughout the country. They also kept thousands and sometimes hundreds of thousands of dollars in cash or silver at their homes and other properties they controlled.  For instance, law enforcement seized more than $150,000 in cash from Karasarides’ house.

Sentencing for both men is scheduled for May 1 before U.S. District Judge Donald Nugent for the Northern District of Ohio. Karasarides faces a maximum penalty of twenty years in prison for conspiracy to commit money laundering, five years in prison for tax evasion, five years in prison for each count of conspiracy to operate an illegal gambling business, five years in prison for each count of conspiracy to defraud the United States, five years in prison for falsification of records, three years in prison for each count of operating an illegal gambling business, three years in prison for witness tampering and three years in prison for filing false income tax returns.

DiPietro faces a maximum penalty of five years in prison for conspiracy to operate an illegal gambling business, three years in prison for operating an illegal gambling business, five years in prison for tax evasion and three years in prison for each count of preparing false income tax returns. 

Pleas

Just prior to the trial, Thomas Helmick, who served as a nominee owner of one of Karasarides’ illegal gambling businesses, pleaded guilty to conspiring to defraud the United States. Helmick is scheduled to be sentenced before U.S. District Judge Donald Nugent on May 2. He faces a maximum penalty of five years in prison. 

During the course of the trial, Christopher Karasarides, pleaded guilty to conspiring to defraud the United States by executing false documents and acting as a nominee owner for some of Christos Karasarides’ assets. Christopher Karasarides is scheduled to be sentenced before U.S. District Judge Donald Nugent on April 30. He faces a maximum penalty of five years in prison.

A federal district court judge will determine the sentence of each defendant after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio made the announcement.

IRS Criminal Investigation; U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Department of Treasury, Office of Inspector General; the Stark County Prosecutor’s Office; the Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.

Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney Aaron Howell for the Northern District of Ohio are prosecuting the case.

Source: United States Department of Justice

The Justice Department, together with the Federal Trade Commission (FTC), announced that Kubota North America Corp. (Kubota) has agreed to a settlement that requires it to pay a civil penalty and cease making misleading claims about the origins of its products.

In a complaint filed in the U.S. District Court for the Northern District of Texas, the government alleges that Kubota violated the FTC Act and the Made in USA Rule by falsely marketing foreign-manufactured replacement parts as made in the United States. These false labels affected thousands of replacement parts.

The stipulated order will enjoin Kubota from making country-of-origin claims about any of their products unless the claims satisfy certain requirements, and from making any unsubstantiated representations about their products. The consent decree imposes a $2 million civil penalty.

“The Justice Department is committed to stopping companies from making misleading and fraudulent claims to market their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the FTC to enforce the FTC Act against those using unfair and deceptive marketing to sell products as purportedly made in the United States, when, in fact, those products are made elsewhere.”

“Today’s settlement includes the largest civil penalty assessed for violating the Made in USA Labeling Rule,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “The FTC will continue cracking down on deceptive Made in USA claims that cheat consumers and honest businesses.”

This matter is being handled by Trial Attorney Sean Saper and Assistant Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch, along with Julia Ensor of the FTC’s Division of Enforcement. The branch thanks the U.S. Attorney’s Office for its assistance in the matter.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit www.FTC.gov.

Source: United States Department of Justice

One Iranian and two Canadian nationals have been charged with conspiracy to use interstate commerce in the commission of a murder-for-hire plot.

According to court documents, from December 2020 through March 2021, Naji Sharifi Zindashti, 49, Damion Patrick John Ryan, 43, and Adam Richard Pearson, 29, conspired with each other in a plot to murder two residents of the state of Maryland. The defendants, one of whom is based in Iran, used an encrypted messaging service called “SkyECC” to recruit individuals who would travel into the United States to carry out the killings, to discuss the identities and locations of the would-be victims, to plan logistics and mechanics of how to carry out the murders, and to negotiate payment for completion of this “job” in Maryland. The intended victims of this plot, who at the time resided in Maryland, had previously fled to the United States after one of them defected from Iran.

Concurrent with today’s indictment, the Treasury Department took action against Zindashti’s criminal network that targets Iranian dissidents and opposition activists for kidnapping and assassination at the direction of the Iranian regime. Pursuant to today’s designations, Zindashti and several of his key associates are prohibited from engaging in any transaction or dealing that involves a U.S. person or occurs in the United States.

“To those in Iran who plot murders on U.S. soil and the criminal actors who work with them, let today’s charges send a clear message: the Department of Justice will pursue you as long as it takes – and wherever you are – and deliver justice,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division.

“As alleged, Mr. Zindashti and his team of gunmen, including a Minnesota resident, used an encrypted messaging service to orchestrate an assassination plot against two individuals,” said U.S. Attorney Andrew Luger for the District of Minnesota. “Thanks to the skilled work of federal prosecutors and law enforcement agents, this murder-for-hire conspiracy was disrupted and the defendants will face justice.”

As alleged in the indictment, between December 2020 and January 2021, Zindashti and Ryan communicated about “jobs,” “equipment,” “tools” and plans to “make some money.” In January 2021, they discussed a job in the United States, with Ryan noting that doing a job in the United States was challenging, but that he “might have someone to do it.” That same day he messaged Pearson about a “job” in Maryland. Pearson stated, “shooting is probably easiest thing for them,” and that he was “on it.” Ryan recommended “2 guys go with proper equipment.” Pearson said he would encourage the recruits for the job to “shoot [the victim] in the head a lot [to] make example” and that he would tell them “we gotta erase his head from his torso.”

On or about Jan. 30, 2021, Zindashti messaged Ryan on SkyECC seeking an update on the job. Ryan responded that he was getting “things in order” and that he would need money. A few days later, Zindashti told Ryan that Zindashti’s organization was ready to move forward. Zindashti and Ryan then agreed on a $350,000 payment for the “job,” in addition to $20,000 to cover expenses.  After Zindashti introduced Ryan to Co-Conspirator 1, Ryan responded: “We have a 4 man team ready.”

Over the days that followed, Ryan and Co-Conspirator 1 continued to correspond on SkyECC about the plot. Specifically, Co-Conspirator 1 sent Ryan information about the would-be victims, including their photographs and images of a map that highlighted the victims’ known address. In or around March 8, 2021, Co-Conspirator 1 facilitated a $20,000 payment to Ryan for purposes of covering travel expenses associated with the plot.    

All three of the defendants are charged with one count of conspiracy to use interstate commerce facilities in the commission of murder-for-hire. Pearson is also charged with one count of possession of a firearm by a fugitive from justice and one count of possession of a firearm by an alien unlawfully in the United States.

Zindashti currently resides in Iran. Ryan and Pearson are currently incarcerated in Canada on unrelated offenses.

The FBI is investigating the case with valuable assistance from the Canadian Security Intelligence Service and the Royal Canadian Mounted Police.

Assistant U.S. Attorney Andrew R. Winter for the District of Minnesota, Trial Attorney Menno Goedman of the National Security Division’s Counterintelligence and Export Control Section, and Trial Attorney Joshua Champagne of the National Security Division’s Counterterrorism Section are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law

Source: United States Department of Justice

Three former Department of Homeland Security (DHS) employees were sentenced today in the District of Columbia for a conspiracy to steal proprietary software and sensitive law-enforcement databases from the U.S. government for use in a commercial venture.

Charles K. Edwards, 63, of Sandy Spring, Maryland, was sentenced to one year and six months in prison. In January 2022, Edwards pleaded guilty to conspiracy to commit theft of government property and to defraud the United States and theft of government property. 

Sonal Patel, 49, of Sterling, Virginia, was sentenced to two years of probation. In April 2019, Patel pleaded guilty to conspiracy to commit theft of government property.

Murali Y. Venkata, 58, of Aldie, Virginia, was sentenced to four months in prison. In April 2022, a jury convicted Venkata of conspiracy to commit theft of government property and to defraud the United States, theft of government property, wire fraud, and destruction of records.  

According to court documents and evidence presented at trial, Edwards was the former Acting Inspector General of the DHS Office of Inspector General (DHS-OIG). Patel and Venkata were employed in DHS-OIG’s information technology department. Edwards, Patel, and Venkata were all previously employed at the U.S. Postal Service Office of Inspector General (USPS-OIG). Edwards, Patel, and Venkata conspired to steal proprietary U.S. software and databases containing sensitive law-enforcement information and the personally identifiable information (PII) of over 200,000 federal employees from DHS-OIG and USPS-OIG. They planned to use the stolen software and databases to create a commercial software product to be offered for sale to government agencies. As part of the scheme, the co-conspirators disclosed the stolen software and databases containing PII to software developers located in India. After Venkata learned of the investigation, he deleted incriminating text messages and other communications in an effort to obstruct the investigation.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, Inspector General Joseph V. Cuffari of DHS-OIG, and Executive Special Agent in Charge Michael Ray of USPS-OIG made the announcement.

DHS-OIG and USPS-OIG investigated the case.

Trial Attorney Celia Choy of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Christine Macey for the District of Columbia prosecuted the case, with significant assistance from former PIN Senior Litigation Counsel Victor Salgado and former Assistant U.S. Attorney David Kent.

Source: United States Department of Justice

An Indian national pleaded guilty today to selling controlled substances on dark web marketplaces and agreed to forfeit $150 million.

According to court documents, Banmeet Singh, 40, of Haldwani, India, created vendor marketing sites on dark web marketplaces, such as Silk Road, Alpha Bay, Hansa, and others, to sell controlled substances, including fentanyl, LSD, ecstasy, Xanax, Ketamine, and Tramadol. Customers ordered controlled substances from Singh using the vendor sites and by paying with cryptocurrency. Singh then personally shipped or arranged the shipment of controlled substances from Europe to the United States through U.S. mail or other shipping services.

“Banmeet Singh and traffickers like him think they can operate anonymously on the dark web and evade prosecution,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Today’s guilty plea, which includes forfeiture of approximately $150 million in cryptocurrency, demonstrates that the Justice Department will hold criminals who violate U.S. law accountable no matter how they conceal their activity. Together with our international partners, we will continue to find criminals lurking in the darkness and bring their crimes to light.”

“In the Singh organization’s drug orders, the members frequently used the vendor name ‘Liston’ and signed off with the signature phrase, ‘I’m still dancing’,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “Today, with Banmeet Singh’s plea of guilty, the dance is over.”

From at least mid-2012 through July 2017, Singh controlled at least eight distribution cells within the United States including cells located in Ohio, Florida, North Carolina, Maryland, New York, North Dakota, and Washington, among other locations. Individuals in those distribution cells received drug shipments from overseas and then re-packaged and re-shipped the drugs to locations in all 50 states, Canada, England, Ireland, Jamaica, Scotland, and the U.S. Virgin Islands.

“Banmeet Singh operated a global dark web enterprise to send fentanyl and other deadly and dangerous drugs to communities across America — in all 50 states — as well as Canada, Europe, and the Caribbean,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “DEA is proud to have worked with its law enforcement partners in the United States and the United Kingdom to dismantle this enterprise, protect the American people, and bring Singh to justice.”

“The guilty plea serves as a reminder that IRS:CI special agents will uncover illegal activity here and abroad, pierce the perceived veil of anonymity provided by cryptocurrencies, and bring those responsible for laundering drug proceeds to justice,” said Special Agent in Charge Bryant Jackson of the IRS Criminal Investigation (IRS:CI) Cincinnati Field Office. “IRS will continue to push the agency to the forefront of complex cyber and money laundering investigations and work collaboratively with our law enforcement partners to protect the American public.”

Over the course of the conspiracy, the Singh drug organization moved hundreds of kilograms of controlled substances throughout the United States and established a multimillion-dollar drug enterprise which laundered millions of dollars of drug proceeds into cryptocurrency accounts, which ultimately became worth approximately $150 million.

In April 2019, Singh was arrested in London, and the United States secured his extradition in 2023.

“Dismantling online marketplaces that seek to poison our communities is a top priority for Homeland Security Investigations,” said Acting Special Agent in Charge Shawn Gibson of Homeland Security Investigations (HSI) Detroit. “Capitalizing on our international footprint and our law enforcement partnerships, we will do everything we can to safeguard Ohio communities against drug traffickers. Today’s guilty plea is the culmination of years of hard work across multiple jurisdictions both here in the United States and internationally.”

“The U.S. Postal Inspection Service is committed to keeping employees and customers of the U.S. Postal Service safe from dangerous substances in the mail,” said Postal Inspector in Charge Lesley Allison of the U.S. Postal Inspection Service (USPIS). “Furthermore, we will continue to take all necessary actions to combat and remove dangerous and illicit drugs from the mail stream and the dark web. The charges against this individual proves the resolve of postal inspectors and our law enforcement partners to pursue these organizations with every resource at our disposal, and to ultimately see that justice is served.”

Singh pleaded guilty to conspiracy to possess with the intent to distribute controlled substances and conspiracy to commit money laundering. He faces an agreed upon sentence of eight years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

DEA, IRS:CI, HSI, USPIS, and Upper Arlington and Colombus, Ohio Police Departments are investigating the case. The United Kingdom’s National Crime Agency (NCA), Crown Prosecution Service (CPS), and U.K. Central Authority (UKCA) provided significant assistance.

The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of Singh from the United Kingdom.

Trial Attorney Emily Cohen of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Michael J. Hunter for the Southern District of Ohio are prosecuting the case.

Source: United States Department of Justice

A Colombian national pleaded guilty today to kidnapping and assaulting two U.S. Army soldiers who were on temporary duty in Bogota, Colombia.

According to court documents, Jeffersson Arango Castellanos, 36, and his co-conspirators targeted, incapacitated, and kidnapped two U.S. soldiers in Bogota. On the evening of March 5, 2020, the two victims were in an entertainment district in Bogota. They visited a pub, where Arango and his co-conspirators incapacitated the two victims by putting drugs, including benzodiazepines, in their drinks. They then kidnapped the victims and took their wallets, debit cards, credits cards, and cell phones. Arango and his co-conspirators used one victim’s credit card and the other victim’s debit card to make purchases and withdraw money. The two victims lost consciousness until the following day, by which point they had been separated.

Arango pleaded guilty to kidnapping an internationally protected person, conspiracy to kidnap an internationally protected person, assaulting an internationally protected person, and conspiracy to assault an internationally protected person. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

In May 2023, Arango was extradited from Colombia to the United States pursuant to a U.S. extradition request. The Justice Department’s Office of International Affairs, the Criminal Division’s Narcotic and Dangerous Drug Section’s Judicial Attaché Office in Bogota, and U.S. Marshals Service worked with Colombian law enforcement authorities to secure the arrest and extradition of Arango.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.

Trial Attorneys Clayton O’Connor and Elizabeth Nielsen of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Bertila L. Fernandez for the Southern District of Florida are prosecuting the case.

Source: United States Department of Justice

The Justice Department announced today that it has signed an agreement with the State of New York Executive Chamber (Executive Chamber) to resolve the department’s claims that the Executive Chamber under former Governor Andrew Cuomo engaged in a pattern or practice of sexual harassment and retaliation in violation of Title VII of the Civil Rights Act of 1964. The agreement memorializes the reforms already carried out by current Governor Kathy Hochul as well as additional reforms aimed at preventing sexual harassment and retaliation in the Executive Chamber.

Title VII is a federal law that prohibits employment discrimination based on race, color, religion, sex and national origin. Title VII also forbids employers from retaliating against current and former employees for complaining about workplace discrimination or otherwise asserting their Title VII rights.

The department’s investigation, conducted jointly by the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of New York, found that the Executive Chamber under former Governor Andrew M. Cuomo (1) subjected female employees to a sexually hostile work environment; (2) tolerated that environment and failed to correct the problem on an agency-wide basis and (3) retaliated against employees who spoke out about the harassment.

Former Governor Cuomo and many complicit senior staff left the Executive Chamber in 2021. Since the department’s investigation began in August 2021, the Executive Chamber has implemented changes to its policies and practices intended to prevent and address the alleged misconduct. The agreement announced today memorializes these efforts and calls for additional reforms, including:

• Expanding the Executive Chamber’s Human Resources Department;
• Creating new policies and procedures for the external reporting, investigation and resolution of complaints involving high-level Executive Chamber employees, including the Governor;
• Developing and implementing robust training and anti-retaliation programs and
• Creating mechanisms to assess the reforms’ effectiveness on a systemic basis.

“Executive Chamber employees deserve to work without fear of sexual harassment and harsh reprisal when they oppose that harassment,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The conduct in the Executive Chamber under the former governor, the state’s most powerful elected official, was especially egregious because of the stark power differential involved and the victims’ lack of avenues to report and redress harassment. With this settlement agreement, the Executive Chamber under Governor Hochul is undertaking additional actions that will address system failures of the past while helping prevent the recurrence of systemic sexual harassment and retaliation in the future.”

“We appreciate the Governor’s stated determination to make sure that sexual harassment does not recur at the highest level of New York State government,” said U.S. Attorney Breon Peace for the Eastern District of New York. “We share that goal and enter into this agreement to advance our common goal of creating clear, comprehensive and, most importantly, enduring policies preventing sexual harassment in the Executive Chamber.”

The enforcement of Title VII and other federal laws against employment discrimination is a top priority of the Justice Department. This agreement is part of the Civil Rights Division’s Employment Litigation Section’s Sexual Harassment in the Workplace Initiative, which seeks to eradicate sexual harassment in state and local government workplaces. It focuses on litigation, outreach and developing effective remedial measures to address and prevent sex discrimination and harassment.

More information about the work of the Civil Rights Division, the division’s Employment Litigation Section and civil rights enforcement at the U.S. Attorney’s Office for the Eastern District of New York is available at www.justice.gov/crt, www.justice.gov/crt/employment-litigation-section and www.justice.gov/usao-edny/civil-rights.

Source: United States Department of Justice

The Justice Department’s Antitrust Division and the Federal Trade Commission (FTC) today announced that both agencies are updating language in their standard preservation letters and specifications for all second requests, voluntary access letters and compulsory legal process, including grand jury subpoenas, to address the increased use of collaboration tools and ephemeral messaging platforms in the modern workplace. These updates reinforce longstanding obligations requiring companies to preserve materials during the pendency of government investigations and litigation.

“These updates to our legal process will ensure that neither opposing counsel nor their clients can feign ignorance when their clients or companies choose to conduct business through ephemeral messages,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “The Antitrust Division and the Federal Trade Commission expect that opposing counsel will preserve and produce any and all responsive documents, including data from ephemeral messaging applications designed to hide evidence. Failure to produce such documents may result in obstruction of justice charges.”

“Companies and individuals have a legal responsibility to preserve documents when involved in government investigations or litigation in order to promote efficient and effective enforcement that protects the American public,” said Director Henry Liu of the FTC Bureau of Competition. “Today’s update reinforces that this preservation responsibility applies to new methods of collaboration and information sharing tools, even including tools that allow for messages to disappear via ephemeral messaging capabilities.”

Companies continue to adopt new technologies to do their work, and in recent years there has been an increase in use of collaboration tools and ephemeral messaging applications, such as Slack, Microsoft Teams and Signal. Some of these technologies allow, or even automatically enable, immediate and irretrievable destruction of communications and documents. Documents created through use of these technologies have long been covered by Justice Department and the FTC document requests. However, companies have not always properly retained these types of documents during government investigations and litigation.

Today’s announcement underscores the continued cooperation between the Antitrust Division and FTC’s Bureau of Competition on criminal enforcement of antitrust laws and related issues that arise in antitrust actions.

Source: United States Department of Justice

Nearly 200 people have been charged as part of a series of arrests targeting large-scale drug-trafficking organizations operating throughout the United States.

“Over just three days and across 10 states, the Justice Department has charged nearly 200 individuals for their alleged roles in major drug trafficking operations,” said Attorney General Merrick B. Garland. “These cases represent just a fraction of the work our agents and prosecutors are doing every day to target, disrupt, and dismantle the cartels and drug trafficking organizations that are poisoning the American people.”

“Every year, tens of thousands of Americans die from illicit drugs trafficked into our communities, including fentanyl and other synthetic opioids,” said Deputy Attorney General Lisa O. Monaco. “This wave of indictments and arrests — stretching from Alaska to Mississippi and from Nebraska to West Virginia — shows the reach of the Justice Department and our partners across the country and around the world when it comes to disrupting narcotics trafficking.”

The cases announced this week were brought by federal law enforcement in four districts leading to the arrest of defendants from 10 states that cover crime rings operating in the Eastern, Southern, and Midwest regions of the U.S. and throughout Alaska.

These efforts are all part of a Department-wide Violent Crime Reduction Strategy implemented under Attorney General Garland to leverage the resources of the Department’s federal prosecutors, agents, investigators, criminal justice experts and grant programs to combat violent crime.

Every U.S. Attorney’s Office across the country has worked alongside state and local partners to implement district-specific violent crime reduction strategies. These cases represent the ongoing, targeted efforts by U.S. Attorney’s Offices to seize deadly drugs and to prosecute those whose actions bring violence in communities.

On Jan. 25, the District of Alaska announced charges against 54 defendants in connections with a large-scale organized crime ring operating within the state of Alaska, allegedly run by an inmate from a California prison. Heraclio Sanchez-Rodriguez, 57, is accused of using contraband cell phones to communicate with his suppliers in Mexico and their brokers, leaders in California and Oregon, and distributors of the drug trafficking enterprise in Alaska. From February 2022 to July 2023, law enforcement intercepted over 36 kilograms of fentanyl, 27.3 kilograms of meth, 11.3 kilograms of heroin, and 118 grams of cocaine connected to the enterprise The indictments allege the enterprise mainly used high-level suppliers to send drug packages through the U.S. Postal Service from Oregon and California to Alaska. Distributors located in Alaska would allegedly receive the packages and traffic the drugs to Alaskan communities, from the most populous cities to some of Alaska’s smallest villages.

On Jan. 24, the Northern District of West Virginia announced charges against 82 defendants for a drug trafficking ring operating in the Eastern Panhandle. According to court documents, Gary Bernard Brown Jr., 38, of Baltimore, supplied others with large quantities of fentanyl capsules and powder for redistribution in Berkeley and Jefferson Counties. The investigation yielded 10 kilograms of fentanyl with a street value of $1.2 million. The fentanyl being trafficked was blue and packaged in colorful capsules, potentially attractive to children. It was enough fentanyl to create more than 33,000 of the capsules for sale. Officers also found cocaine, methamphetamine, firearms, and hundreds of thousands of dollars in assets during the investigation.  

On Jan. 23, the District of Nebraska announced charges against 19 defendants for their roles as part of a meth distribution ring operating throughout Nebraska with ties to Kentucky and California. Alejandro Ruiz, 41, allegedly ran the crime syndicate out of California and trafficked meth and other narcotics from Mexico into California and then into the Midwest, including central Nebraska. In addition to meth seized through controlled buys, law enforcement also seized three firearms. 

On Jan. 23, the Southern District of Mississippi arrested 40 individuals stemming from a four-year federal investigation of multiple drug-trafficking organizations distributing meth, cocaine, and other illegal narcotics. The case included defendants throughout Mississippi with connections to Mexico, California, Texas, Alabama, and elsewhere. Some defendants are charged with committing a meth drug offense while minors, including a young toddler, were at the location. Investigators seized 36 firearms, five kilograms of crystal meth, and one kilogram of cocaine.

The investigation and prosecution of these cases are part of Organized Crime Drug Enforcement Task Forces (OCDETF) operations, which aim to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.