Category: Legal Issues

Source: United States Attorneys General 8

The Justice Department announced today that the Ninth Circuit Court of Appeals has affirmed the decision of the U.S. District Court for the District of Oregon that revoked the naturalized U.S. citizenship of a convicted Bosnian war criminal. Sammy Yetisen hid from immigration officials that she had engaged in human rights violations and war crimes in Bosnia, including the deaths of several civilians and prisoners of war.

Yetisen was born in a town in the former Yugoslavia. When the Yugoslav republics began seceding in the 1990s, Yetisen joined the Army of the Republic of Bosnia and Herzegovina, which was formed by the newly independent Bosnian state, as part of a special forces detachment known as the Zulfikar Unit. The unit was renowned as elite and was particularly cruel, often beating, sexually assaulting, burning, and cutting prisoners. As a member of the Zulfikar Unit, Yetisen participated in the Trusina Massacre, a horrific attack on April 13, 1993, in which Yetisen and others lined up six unarmed Croat prisoners of war and civilians and executed them by firing squad.

“The United States is not a safe haven for individuals who commit war crimes and human rights abuses around the globe,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “If you come to this country and hide those acts in your past to become a U.S. citizen, the Justice Department will discover the truth and come after you.”

In 1996, Yetisen came to the United States as a refugee, after alleging she had been persecuted as a Muslim, and in 2001, Yetisen applied for naturalization. Throughout her immigration proceedings Yetisen omitted her service in the Zulfikar Unit and participation in extrajudicial killings. She became a U.S. citizen in 2002.

In 2009, the Bosnia and Herzegovina Prosecutor’s Office issued a warrant for Yetisen’s arrest, alleging that she had committed war crimes against civilians and prisoners of war. The United States extradited Yetisen to Bosnia in 2011 where Yetisen pleaded guilty to committing war crimes and was sentenced in 2012 to five-and-a-half-years in prison. After completing her sentence, Yetisen returned to the United States.

In 2018, the Justice Department filed a complaint in the U.S. District Court for the District of Oregon seeking Yetisen’s denaturalization based on her crimes and failure to disclose them. In 2023, the court entered an order revoking Yetisen’s citizenship. On July 21, the Ninth Circuit affirmed the District of Oregon’s revocation of Yetisen’s U.S. citizenship.

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Human Rights Violator and War Crimes Center and the Civil Division’s Office of Immigration Litigation with consultation and support from ICE’s Office of the Principal Legal Advisor, Seattle Office of the Chief Counsel, and U.S. Citizenship and Immigration Service’s Office of Chief Counsel, Western Law Division. The Justice Department’s Office of International Affairs also provided substantial assistance to secure the 2011 extradition of Yetisen to Bosnia and Herzegovina.

The case was jointly prosecuted by Senior Litigation Counsels Devin Barrett and Steven Platt, and Trial Attorney Nancy Pham with review from Senior Litigation Counsel Max Weintraub of OIL ‒ General Litigation and Appeals Section, Affirmative Litigation Unit and support from Assistant U.S. Attorney Dianne Schweiner for the District of Oregon.

Source: United States Attorneys General 1

Today, the Justice Department announced the successful completion of the Justice Department’s Jan. 17, Agreement for the Sustainability of Custodial Informant Reforms with the Orange County Sheriff’s Department (OCSD) in California to sustain reforms addressing OCSD’s prior pattern or practice of using custodial informants in a manner that violated the Sixth and Fourteenth Amendments of the United States Constitution.

Under the Agreement, OCSD implemented enhancement and sustainability measures with respect to its policies, training, information systems, and auditing procedures and the information it makes publicly available related to its use of custodial informants. These measures adequately ensure that OCSD’s reforms to prevent the use of custodial informants in an unconstitutional manner are durable and robust.

“The Orange County Sheriff’s Department has demonstrated an enduring commitment to protecting the Sixth and Fourteenth Amendment rights of those in its jurisdiction,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We commend the Sheriff and his staff for their efforts in doing their part to ensure the integrity of criminal prosecutions.”

To read the original press release announcing the findings of the investigation, click here. To read the report of the investigation, click here. To read the original OCSD Settlement Agreement, click here. To read the Validation Assessment Report, click here. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.

Source: United States Attorneys General

In a win for American energy, ENRD’s Natural Resources Section and Appellate Section successfully convinced a district court to deny a request to pause construction of a new natural gas pipeline. The Crow Creek pipeline will run from Idaho to Wyoming, including through Caribou-Targhee National Forest. The pipeline’s construction will further the Trump Administration’s broad efforts to unleash American energy and lower energy prices for American homes and businesses.

The project follows from a yearslong series of careful reviews and analyses — most recently with the Forest Service completing a supplemental environmental impact statement supporting the project last December. In their lawsuit challenging the pipeline’s approval, environmental groups asked the court to prevent construction. The U.S. District Court for the District of Idaho sided with ENRD. Based on the Forest Service’s years of evaluation, the court determined that plaintiff groups were unlikely to show that the government did not adequately consider potential environmental impacts from the pipeline. Likewise, the court concluded that the plaintiffs did not demonstrate a likelihood of irreparable harm from the project.

Construction of the pipeline is expected to begin this month. ENRD’s Natural Resources Section and Appellate Section will continue handling the case.

Source: United States Attorneys General

The Counterintelligence and Export Control Section (CES) of the Justice Department’s National Security Division (NSD), and the U.S. Attorney’s Office for the Northern District of California (NDCA) today announced that Cadence Design Systems Inc. (Cadence), a multinational electronic design automation (EDA) technology company headquartered in San Jose, California, has agreed to plead guilty to resolve charges that Cadence committed criminal violations of export controls by selling EDA hardware, software, and semiconductor design intellectual property (IP) technology to the National University of Defense Technology (NUDT).

NUDT, a university in the People’s Republic of China (PRC) under the leadership of the PRC’s Central Military Commission, was added to the U.S. Department of Commerce’s Entity List in February 2015 due to its use of U.S.-origin components to produce supercomputers believed to support nuclear explosive simulation and military simulation activities in the PRC.

Today, the Department filed in the U.S. District Court for the Northern District of California a criminal information charging Cadence with conspiracy to commit export control violations and the Department’s plea agreement with Cadence, pursuant to which the company has agreed to plead guilty and pay criminal penalties of nearly $118 million to resolve the charges.

In addition to the criminal charges, the U.S. Department of Commerce, Bureau of Industry and Security (BIS) today announced the resolution of a parallel civil enforcement action against Cadence in which Cadence has agreed to pay over $95 million in civil penalties. The Department of Justice and BIS have coordinated the resolution of the parallel criminal and civil actions, with each agreeing to credit against their respective fines a portion of the payments made by Cadence to satisfy the other agency’s fine. After the Department of Justice and BIS credit payments made by Cadence under the coordinated agreements, Cadence will pay aggregate net criminal and civil penalties and forfeiture totaling more than $140 million.

“Cadence has agreed to accept responsibility for unlawfully exporting sensitive semiconductor design tools to a restricted Chinese military university and has implemented a strong export compliance program to help prevent any further illegal transmission of American technology,” said Assistant Attorney General for National Security John A. Eisenberg. “American ingenuity is one of our Nation’s most precious assets, and the National Security Division will vigorously enforce U.S. export control laws to protect the technological advantage we enjoy because of that ingenuity.”

“Export controls safeguard America’s advanced technological know-how from falling into the wrong hands, which is particularly important in the Silicon Valley as the epicenter of groundbreaking innovation,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “With this plea, Cadence has admitted to unlawfully exporting its semiconductor design technology to a restricted PRC military university using a front company, and accepted responsibility for its wrongdoing. Cadence’s remedial measures are a positive step toward rectifying the company’s violations of export control laws and demonstrating corporate responsibility.”

“Protecting the U.S. semiconductor industry is critical to our national defense,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence Division. “Working with NUDT, which has been on the entity list for a decade for its work to advance China’s military capabilities, is unacceptable. The FBI will stop at nothing to defend the homeland from China’s Communist Party.”

According to Cadence’s admissions and court documents, from February 2015 to April 2021, Cadence and its indirectly owned and wholly controlled subsidiary in the PRC, Cadence Design Systems Management (Shanghai) Co. Ltd. (Cadence China), engaged in a conspiracy to commit export control violations in connection with the provision of EDA tools that were subject to the Export Administration Regulations (EAR) to NUDT through Central South CAD Center (CSCC), an alias for NUDT, and another associated entity, Phytium Technology Co. Ltd. (Phytium), without seeking or obtaining the requisite licenses from BIS. Specifically, Cadence, Cadence China, and their employees exported, reexported, and transferred in-country U.S.-origin EDA tools to CSCC in the PRC, despite having knowledge that CSCC was an alias for NUDT. As a result, Cadence and Cadence China exported and caused to be exported EDA tools at least 59 times through September 2020, when Cadence terminated Cadence China’s business relationship with CSCC due to CSCC’s association with NUDT.

In court documents, Cadence admitted that Cadence China employees installed EDA hardware on NUDT’s Changsha, China, campus and that NUDT personnel downloaded EDA software and IP technology from Cadence’s download portals while Cadence and Cadence China, through its employees, had knowledge that NUDT had been added to the Entity List. On Feb. 18, 2015, the same day that NUDT was added to the Entity List, Cadence’s export control officer emailed Cadence and Cadence China employees that NUDT had been added to the Entity List “meaning that export licenses will be required if sales are made.” Further, in March 2016, a Cadence China employee authored a presentation for a quarterly sales review meeting with her colleagues stating (as translated from Chinese) that as of Feb. 18, 2015, the U.S. Department of Commerce had “embargoed” four national supercomputer centers in the PRC, including NUDT, due to U.S. microprocessor chips being used in the “TianHe” supercomputing systems believed to be used for nuclear explosion simulation. Cadence also admitted that its employees who conducted work at CSCC’s location on NUDT’s campus knew about connections between CSCC and the PRC military.

According to Cadence’s admissions and court documents, employees of Cadence China did not disclose to and/or concealed from other Cadence personnel, including Cadence’s export compliance personnel, that exports to CSCC were in fact intended for delivery to NUDT and/or the PRC military. For example, in May 2015, a few months after NUDT was added to the Entity List, Cadence’s then-head of sales in China emailed colleagues, cautioning them to refer to their customer as CSCC in English and NUDT only in Chinese characters, writing that “the subject [was] too sensitive.” Further, in October 2019, a Cadence China employee instructed another to recall and recirculate an updated version of a weekly email on Cadence China’s customers in the PRC. The updated version of the weekly email removed a reference to the People’s Liberation Army of the PRC in relation to CSCC that was written in the original version. Employees of Cadence’s subsidiaries, including employees of Cadence China involved in sales to CSCC, also received sales commissions that incentivized achieving sales quotas as part of their compensation packages.

Further, in October 2020, while Cadence and Cadence China had knowledge that items previously sold and exported to CSCC had in fact been exported to NUDT in violation of U.S. export control laws, Cadence consented to CSCC’s assignment to Phytium, a semiconductor company closely associated with CSCC and NUDT in the PRC, of CSCC’s contracts for Cadence EDA tools. Prior to the transfer of Cadence’s business from CSCC to Phytium in or about October 2020, Cadence’s business with CSCC included contractual agreements with Phytium, reflecting Phytium’s ongoing collaboration with CSCC and NUDT during the period in which CSCC was used as an alias for NUDT. Cadence, through its subsidiaries, including Cadence China also had knowledge that Cadence China’s business with CSCC involved Phytium, and that NUDT personnel were affiliated with Phytium. Some of Cadence China’s contracts with CSCC listed Phytium as the contractual party and stated that the work would occur at NUDT. Internal Cadence communications show certain Cadence employees’ understanding that CSCC and Phytium were effectively the same entity both before and after the decision to transfer Cadence China’s business from CSCC to Phytium. Cadence and Cadence China transferred U.S.-origin EDA software and IP technology to Phytium until February 2021. In March 2021, Cadence placed Phytium on export hold as a result of its internal compliance review and discontinued transactions with Phytium without completing all of the originally anticipated transfers, including any hardware transfers. Phytium was later designated on the Entity List in April 2021.

CES and NDCA entered into the plea agreement with Cadence after considering the factors set forth in the Department’s Principles of Federal Prosecution of Business Organizations and the National Security Division Enforcement Policy for Business Organizations (NSD Enforcement Policy). The Department reached this resolution with Cadence based on a number of factors, including Cadence’s failure to voluntarily disclose the misconduct to NSD pursuant to the NSD Enforcement Policy; the nature and seriousness of the offense, which included exports of sensitive semiconductor design tools and technology to a restricted PRC military university involved in the development of supercomputers with applications for military and nuclear explosive simulations, and which included Cadence agreeing to an assignment of the hardware and software contracts to another PRC-based company despite being aware that those items had been unlawfully exported to a restricted PRC military university;  Cadence’s willingness to accept responsibility for the actions of its employees and agents, including its subsidiary Cadence China, by entering into the plea agreement with the Department and resolving the parallel civil investigation with BIS; and Cadence’s efforts to remediate the root cause of the offense conduct by enhancing and agreeing to enhance further its export control compliance program. Cadence received partial credit for its cooperation with the Department’s investigation, which involved collecting and disclosing relevant evidence, facilitating interviews with certain employees, making detailed factual presentations, and agreeing to toll the statute of limitations, but Cadence did not receive full credit for cooperation because it failed proactively to obtain and disclose to the government relevant communications, and it failed proactively to facilitate interviews of certain China-based employees with information relevant to the offense conduct. Accordingly, the amount of the criminal monetary penalty attributable to the criminal fine reflects a 20 percent reduction off the statutory maximum fine.

The plea agreement is subject to the approval of a federal district judge in the Northern District of California.

BIS’s Office of Export Enforcement and the FBI investigated the case.

Chief Counsel Ian C. Richardson, Deputy Chief Counsel Christian J. Nauvel, and Trial Attorney Emma Dinan Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section, together with Assistant U.S. Attorney Eric Cheng of the National Security and Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California, are prosecuting this case.

Source: United States Attorneys General

An Arizona man pleaded guilty today to money laundering and conspiracy to obstruct justice for his role in a scheme to defraud investors.

According to court documents, Vincent Anthony Mazzotta Jr., 54, also known as Vincent Midnight, Delta Prime, and Director Vinchenzo, formerly of the Hollywood Hills area of Los Angeles but   residing in Arizona, conspired with his co-defendant and others to defraud investors by falsely promising high-yield profits from investments in cryptocurrency markets using automated trading robots powered by artificial intelligence.

“Vincent Mazzotta defrauded investors in a sophisticated cryptocurrency scheme and then doubled down by using a fake government entity to further victimize those who had entrusted him with their money,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Combatting fraud in digital assets is critical to the Criminal Division’s efforts to vindicate victims’ interests and to keep bad actors out of the crypto markets. The Department and its law enforcement partners will aggressively pursue and hold accountable fraudsters who use the veneer of legitimacy and public trust to steal from investors.”

“New types of investments such as Bitcoin and other cryptocurrencies may seem alluring, but they also carry the risk of criminals using their relative novelty to prey on victims,” said U.S. Attorney Bill Essayli for the Central District of California. “I encourage investors to be skeptical when approached by anyone promising novel riches. An ounce of prevention is worth a pound of cure.”

“The defendants in this case purported to be U.S. governmental entities to legitimize their scams, before ultimately attracting the scrutiny of actual federal authorities who were special agents from IRS Criminal Investigation,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. “Today’s admission of guilt is another example of our resolve and unique ability to unravel complex financial transactions regardless of how sophisticated the scheme may be.”

Mazzotta and his co-defendant, David Saffron, falsely promised victims short-term, high-yield returns from cryptocurrency trading if the victims invested with cryptocurrency investment companies Mind Capital, Cloud9Capital and others. They also created a fictitious government entity called the Federal Crypto Reserve (FCR) and further victimized the investors by soliciting thousands of dollars to hire the FCR to “investigate” Mind Capital, Cloud9Capital and other crypto-investment firms that had disappeared with the victims’ investments. Mazzotta and Saffron defrauded victims of more than $13 million. 

According to court documents, Mazzotta also conspired with others to obstruct justice. Specifically, Mazzotta worked with other co-conspirators after Saffron’s initial arrest to conceal and destroy evidence at Saffron’s apartment, including an iPad and the contents of a personal safe. Mazzotta also conspired to falsify the records of his business, Runway Beauty Inc., to conceal his involvement in the investment fraud scheme from a federal grand jury.

Mazzotta pleaded guilty to one count of money laundering and one count of conspiracy to obstruct justice. He faces a maximum penalty of 10 years in prison on the money laundering count and a maximum penalty of five years in prison on the conspiracy to obstruct justice count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

IRS-CI is investigating the case.

Trial Attorneys Theodore Kneller and Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James Hughes for the Central District of California are prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.

Source: United States Attorneys General

Q Link Wireless LLC (Q Link) and its owner, Issa Asad (Asad), located in Dania Beach, Florida, have agreed to pay $110,637,057 to resolve criminal charges and civil allegations that they violated the False Claims Act by submitting false claims to the Federal Communications Commission’s (FCC’s) Lifeline Program. The Lifeline Program, created by Congress in the Telecommunications Act of 1996, provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs.   

Eligible Telecommunications Carriers (ETCs), such as Q Link, receive monthly federal payments for providing discounted phone services to qualified consumers who must use their Lifeline phones at least once every 30 days. In order to qualify for Lifeline payments, ETCs certify their compliance with Lifeline rules, including the requirement to de-enroll and to stop submitting claims for customers that are not using their Lifeline phones.

The settlement resolves allegations that Q Link and Asad received monthly federal payments from the Lifeline Program that they were not entitled to through a scheme directed by Asad. The United States alleged that Q Link, Asad, and others conspired to knowingly submit and caused to be submitted false and fraudulent claims to Lifeline for customers who were not using their cellphones consistent with FCC usage regulations, including customers who did not possess activated phones. The United States also alleged that Q Link and Asad understood that Q Link was required to de-enroll and stop seeking payment for customers who were not using their phones consistent with the FCC’s usage rules. The United States further alleged that Q Link, Asad, and others, in order to deceive the FCC and in order to continue billing for Q Link’s customers, manufactured cellphone activity on behalf of Q Link customers who were not using their cellphones. The United States also alleged that, in order to obscure Q Link’s and Asad’s actions, Q Link provided false and fabricated records to the FCC purporting to show cellphone usage for customers who were not using their cellphones including for some cellphones that were actually in the FCC’s possession at the time. As a result of this alleged conduct, Q Link received approximately $38,438,541 in improper Lifeline payments between February 2018 and October 2019. Under the civil settlement, Q Link’s and Asad’s payment of the criminal restitution they owe related to the Lifeline Program will be credited toward the amount due under the civil settlement.

“The Justice Department will take action where companies and individuals knowingly violate the rules of federal programs and claim federal funds to which they are not entitled,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to preventing fraud against important FCC subsidy programs like Lifeline.”

“The FCC takes very seriously any instance of misuse of public funds and misrepresentation. Protecting taxpayer dollars from waste, fraud, and abuse is central to our work,” said FCC Chairman Brendan Carr. “I thank our partners at the Justice Department and the tireless teams at the FCC – including the Office of General Counsel and Office of Inspector General – for their relentless pursuit of this matter.”

“When individuals and corporations target programs that serve vulnerable populations to line their own pockets with millions, our office stands ready to investigate and pursue those allegations using all appropriate civil enforcement tools,” said U.S. Attorney Hayden O’Byrne for the Southern District of Florida. “This settlement addresses the integrity of the Lifeline Program, an important program that helps low-income Americans connect to people and information, a modern-day necessity.”

“FCC OIG is committed to vigorously protecting FCC’s low-income subsidy programs and legitimate customers from telecommunications providers who use deceptive practices to perpetrate fraud,” said FCC Inspector General Fara Damelin. “We appreciate the dedication and outstanding work of our investigative team, our law enforcement partners at DOJ, and our FCC colleagues, in particular OGC, who together strengthen the integrity of FCC programs and ensure that bad actors are held accountable.”

As part of a global resolution, Q Link and Asad entered into criminal plea agreements with the U.S. Attorney’s Office for the Southern District of Florida.  On Oct. 15, 2024, Q Link and Asad pled guilty to conspiring to commit wire fraud and theft of government funds and defrauding the United States, related to the conduct at issue in today’s civil settlement. Asad also pled guilty to money laundering arising from conduct not related to the civil investigation. Q Link and Asad were sentenced by United States District Judge Rodolfo A. Ruiz, II on July 24. In connection with the criminal resolution, Q Link and Asad further agreed to not participate in any program administered by the FCC and agree to cooperate in transitioning its Lifeline customers to other ETCs.

The civil False Claims Act resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Southern District of Florida, with assistance from the FCC’s Office of Inspector General and the FCC’s Office of General Counsel.

The civil False Claims Act investigation was handled by Trial Attorney David M. Sobotkin, Assistant United States Attorney Rosaline Chan, and former Assistant U.S. Attorneys Miriam L. Alinikoff and Christopher Cheek for the Southern District of Florida.

The claims resolved by the settlement are allegations only and there has been no determination of civil liability.