USDOJ: Armenian Citizen Pleads Guilty for His Role in For-Profit U.S. Visa Fraud Scheme

 

Via USDOJ:

Armenian Citizen Pleads Guilty for His Role in For-Profit U.S. Visa Fraud Scheme

A man residing in Glendale, California, pleaded guilty today to conspiracy to unlawfully bring in aliens and visa fraud for his role in a multi-year visa fraud scheme that brought Armenian citizens into the United States for profit.

Hrachya Atoyan, 32, pleaded guilty before U.S. Magistrate Judge Sanket J. Bulsara in the Eastern District of New York.  Sentencing is scheduled for Feb. 20, 2020, before U.S. District Judge Margo K. Brodie.  According to the indictment, Atoyan allegedly participated in a transnational network of co-conspirators who engaged in a widespread visa fraud scheme to bring Armenian citizens into the United States by fraudulently claiming to the U.S. Citizenship and Immigration Services (USCIS) that the Armenians were members of performance groups, and thus qualified for P-3 “Culturally Unique Artist” visas.

“Exploiting the P-3 non-immigrant visa classification system for culturally unique artist and entertainers makes a mockery out of the legitimate performers for whom that visa was intended,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “We will work hand in hand with our law enforcement partners to rid the system of fraudsters, like Mr. Atoyan and his co-conspirators, who seek to take advantage of and profit from our immigration system.”

“Atoyan’s guilty plea brings down the curtain on an elaborate visa fraud scheme to falsely portray applicants as artists and entertainers in order to circumvent our country’s P-3 visa program,” said U.S. Attorney Richard P. Donoghue of the Eastern District of New York.

“The Diplomatic Security Service builds strong teams overseas and in the United States to protect the integrity of all U.S. visas and travel documents – especially those, like the P-3 visa, which allow for entertainers to visit the United States to perform in culturally unique events and deepen our understanding of different cultures,” said Todd J. Brown, Director of the Diplomatic Security Service.  “DSS values our partnership with the U.S. Attorney’s Office and other law enforcement agencies around the world to prevent and jointly combat U.S. passport and visa fraud. Deterring, detecting, and investigating U.S. passport and visa fraud is essential to safeguarding our national security.”

[…]

The P-3 nonimmigrant visa classification allows foreign nationals to temporarily travel to the United States to perform, teach or coach as artists or entertainers, under a program that is culturally unique.  A U.S. employer or sponsoring organization is required to submit a USCIS Form I-129 Petition for a Non-Immigrant Worker, along with supporting documentation, attesting that the performances in the United States are culturally unique.

In February 2018, Stella Boyadjian of Rego Park, New York; Atoyan; and Diana Grigoryan, aka “Dina Akopovna,” 42, of the Republic of Armenia were charged in a 15-count indictment with visa fraud and with conspiracy to: defraud the United States, commit visa fraud, and illegally bring aliens into the United States.  Boyadjian and Grigoryan were also charged with related money laundering charges, and Boyadjian was charged with aggravated identity theft.  Boyadjian previously pleaded guilty on March 4, 2019 in the Eastern District of New York.

As alleged in the indictment, Boyadjian ran a non-profit organization called Big Apple Music Awards Foundation (BAMA) based in Rego Park, New York.  Boyadjian used the Big Apple Music Awards Foundation as well as formal and informal music industry contacts in the United States and Armenia to perpetuate the scheme.  Atoyan, Boyadjian, and others solicited Armenian citizens who wanted to come to the United States and charged them between $3,000 and $10,000 to be included on the Form I-129 Petitions.  Boyadjian and other associates in Armenia then acquired fraudulent performer certificates and organized staged photo sessions where the aliens wore traditional Armenian folk outfits to make it appear as though they were traditional Armenian performers.  After being trained how to defeat U.S. visa interviews, the individual aliens presented these certificates and photos to U.S. consular officers during their visa interviews.  Once the Armenians entered the United States, some would pay Boyadjian and her associates additional money to be included in another fraudulent petition asking for P-3 visa extensions.  As alleged in the indictment, Atoyan himself came to the United States on a P-3 visa obtained in connection with a Form I-129 submitted by BAMA.

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Pence to Lead Ceasefire Delegation to Turkey, Erdogan on Ceasefire — Nah, But Come Visit!

 

SDNY Alleges That Political Donors Target a Career U.S. Ambassador For Removal With Sludge People Assist

 

It is no longer news when political donors end up with ambassadorships. We just did not know until today that political donors apparently are now also able to affect the removal or the recall of a career ambassador according to the indictment (see p.8) from the Southern District of New York. The SDNY alleged that these political donors sought assistance from “Congressman-1” in causing the U.S. Government to remove or recall the then U.S. Ambassador to Ukraine (that would be Marie Yovanovitch). The effort was conducted in part at the request of Ukrainian officials.
Congressman-1 has not been indicted nor identified in the indictment. SDNY said that investigations are ongoing.
The recall of Ambassador Yovanovich in May 2019 followed a persistent campaign for her removal among conservative media outlets in the United States. The State Department reportedly told RFE/RL  on May 6,  that Ambassador Yovanovitch “is concluding her 3-year diplomatic assignment in Kyiv in 2019 as planned.” And that “her confirmed departure date in May aligns with the presidential transition in Ukraine,” which elected a new president in April.
We now know that none of that is true. What other truth-sounding stuff are they telling us?
Those who are quick to point out that she was appointed United States Ambassador to Ukraine by President Obama, should know that Ambassador Yovanovitch was first appointed United States Ambassador to Kyrgyzstan by President George W. Bush.  She was also appointed United States Ambassador to Armenia by President George W. Bush, but her tenure in Yerevan, as a career diplomat, spanned the Bush Administration and the  Obama Administration (2008-2011). We’ve seen folks insists on calling her an Obama “holdover,” perhaps they’ll think otherwise if they realize that she was a Bush “holdover” before she became an Obama “holdover. Career people do tend to serve from one administration to the next.
We expect that we’ll hear more about this case in the days ahead. What is clear to us right now is if this could happen to Ambassador Yovanovitch who has over three decades of dedicated service, this could happen to anyone in the U.S. diplomatic service.
Also, Ambassador P. Michael McKinley, Senior Advisor to Pompeo, Quits.
Read the full SDNY Indictment of Lev Parnas and Igor Fruman here (PDF).

Related posts:

 

@StateDept Contracting Officer Zaldy N. Sabino Convicted of Bribery and Procurement Fraud

 

This is a follow-up to our post on April 16, 2019 @StateDept Contracting Officer Faces 17-Count Indictment For Bribery and Procurement Fraud.  On October 4, 2019, the Justice Department announced the conviction of State Department Contracting officer Zaldy N. Zabino of  13 counts of conspiracy, bribery, honest services wire fraud and making false statements.

State Department Contracting Officer Convicted of Bribery and Procurement Fraud

A contracting officer with the U.S. Department of State was convicted today of conspiracy, bribery, honest services wire fraud and making false statements.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Special Agent in Charge Marc Meyer of the U.S. Department of State Office of Inspector General and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.

Zaldy N. Sabino, 60, of Fort Washington, Maryland, was convicted of 13 counts of conspiracy, bribery, honest services wire fraud and making false statements.  Sentencing has been set for Feb. 14, 2020.

Sabino was indicted in April 2019.  According to the indictment, between November 2012 and early 2017, Sabino and the owner of a Turkish construction firm allegedly engaged in a bribery and procurement fraud scheme in which Sabino received at least $239,300 in cash payments from the Turkish owner while Sabino supervised multi-million dollar construction contracts awarded to the Turkish owner’s business partners and while Sabino made over a half million dollars in structured cash deposits into his personal bank accounts.  Sabino allegedly concealed his unlawful relationship by, among other things, making false statements on financial disclosure forms and during his background reinvestigation.

The Department of State’s Office of Inspector General, led by Steve A. Linick, and the FBI’s Washington Field Office investigated the case.  Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Jack Hanly of the Eastern District of Virginia prosecuted 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.

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Ex-Diplomat William Patrick Syring Gets 60 Months in Prison For Hate Crime

 

We’ve posted previously about William Patrick Syring, a former foreign service officer who was indicted for hate crime and threatening employees of the Arab American Institute (AAI) on February 21, 2018.  Syring was previously charged in 2006 for similar threats in four emails and three voicemails. He retired from the State Department in July 2007 and he pled guilty to that previous case in June 2008. He was sentenced on federal civil rights charges for threatening employees of the Arab American Institute (AAI) because of their race and national origin. Syring was sentenced to two concurrent sentences of 12 months of imprisonment followed by 3 years of post-release supervision, 100 hours of community service and was ordered to pay a $10,000 fine. He reportedly was released from prison early in January 2009.
In February 2018, he was again  indicted for hate crime and threatening employees of the Arab American Institute.
On August 15, USDOJ announced that Syring was sentenced to 60 months in prison for committing hate crime by threatening employees of the Arab American Institute.  He will be in prison until 2024.

Via DOJ: Virginia Man Sentenced To 60 Months In Prison For Committing Hate Crime By Threatening Employees Of The Arab American Institute

William Patrick Syring, 61, of Arlington, Virginia, was today sentenced to 60 months in prison for threatening employees of the Arab American Institute (AAI) because of their race and national origin, threatening AAI employees because of their efforts to encourage Arab Americans to participate in political and civic life in the United States, and transmitting threats to AAI employees in interstate commerce.

“Threats aimed to intimidate individuals based on their ethnic or racial origin are despicable violations of civil rights freedoms protected by our constitution,” said Assistant Attorney General Eric Dreiband. “The Department of Justice will continue to fight to preserve the basic rights of people to live, work, and speak in their communities without the fear of hostility based on racism.”

“Investigating hate crimes is one of the FBI’s highest criminal priorities; these hateful acts are not only an attack on the victim, but are meant to intimidate an entire community,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “This sentencing demonstrates the FBI’s commitment to holding accountable those who seek to violate the civil rights of the people of our community through violent threats.”

Evidence presented at trial established that from 2012 to 2017, Syring sent over 700 emails to AAI employees, culminating in five death threats in 2017. According to court documents, Syring previously pleaded guilty in 2008 to sending threatening emails to AAI employees. Evidence presented at trial showed that Syring used nearly identical language that he admitted were threats in 2008 as he did in 2017.

According to testimony in court, AAI employees were frightened of Syring because he had sent them death threats in the past and continued to do so over a decade later. Additionally, according to witness testimony, many AAI employees lived in fear that Syring would follow through on his threats and physically harm them. They further testified to the toll it took on them personally and their families and loved ones.

On May 9, Syring was convicted on all 14 counts in the indictment, including seven hate crime charges and seven interstate threats charges. The case was investigated by the FBI Washington Field Office, and is being prosecuted by Civil Rights Division Senior Legal Counsel Mark Blumberg and Trial Attorney Nick Reddick.

Co-founder of the Arab American Institute, James Zogby, who along with his staff were the recipients of Syring’s threats wrote about it here:

click on image to see full piece.

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Ex-StateDept GSO Steven H. Hassan Gets 40 Years For Sexual Abuse of Children and Child Pornography

 

 

On August 13, USDOJ announced that former State Department employee, Steven Hadley Hassan, 52, was sentenced to 40 years in federal prison for sexual abuse of minors, and the production and transportation of child pornography. Our sources identified Hassan as a General Services Officer (GSO), a Foreign Service specialist who joined the State Department in 2010. We could not verify at this time that “he was in the Specialist Orientation class in 2010″ or that he  only “served two overseas tours” or that he “was never tenured.”
The DOJ announcement only identified Hassan as having served in the Philippines and South Africa. In his guilty plea, Hassan admitted to the sexual abuse of Jane Doe 1 in government housing in those two locations  from October 2010 continuing until mid-2013.
Indictment: Abuse in USG Permanent Housing
Count 8 of the Superseding Indictment filed on October 11, 2018, notes that in or about July 2010 through no later than in or about June 2012, the defendant resided in the Philippines in connection with his work as a State Department employee. In or about October 2010, he moved into permanent housing located in Dasmarinas Village, Makati, Philippines, provided by the U.S. Government. In or about June 2012, defendant repeatedly sexually abused a minor, Jane Doe 1, in his permanent housing. 
The Stipulation of Facts in court records signed and agreed to by Hassan says that while stationed in the Philippines, Hassan also sexually abused two pre-pubescent minors who resided in Manila-Jane Doe 2 (born in October 2003) and Jane Doe 3 (born in September 1999), who are sisters, and Hassan produced images of the abuse. Further it states that both Jane Doe 2 and Jane Doe 3 met Hassan in 2010 when he offered them food from a local restaurant near where they lived. Thereafter, the Defendant transported Jane Doe 2 and Jane Doe 3 in his minivan to a local hotel and sexually abused them.[…] Hassan most recently sexually abused Jane Doe 2 in 2015 when he visited the Philippines for a brief trip.
Count 9 of the indictment notes that in or about July 2012 though no later than in or about July 2014, the defendant resided in South Africa as a State Department employee. He moved into permanent housing in Pretoria, South Africa, in a U.S. Government-provided housing. Thereafter through in or about September 2013, defendant repeatedly sexually abused  Jane Doe 1 in his permanent housing.
Work Background
Steven Hassan’s 18-page resume online indicates that he worked for the U.S. Navy from 1987-1993, and various military-related work from 1993 to 2007 in Guam, Everett (WA), Yokosuka, Japan, and Whidbey Island (WA). It also indicates that he worked as an Administrative Assistant for the State Department’s MED Bureau from 2007-2008 (FederalPay.org lists him under Miscellaneous Clerk and Assistant for the State Department in 2007). From 2008-2010, he worked for the National Cancer Institute (FederalPay.org lists him as working for the National Institutes of Health in 2008 and 2009). His online resume also identified himself as Assistant General Services Officer (GSO) at the US Embassy Manila in the Philippines from June 2010-June 2012, then Assistant GSO at the US Embassy in Pretoria, South Africa from July 2012-August 2014. 
The Stipulation of Facts includes the following detail: “Hassan eventually brought his Sony camera and the SD card within it back to the United States after his tours overseas were completed, some time after November 2015.”
Hassan’s online resume notes that he worked as a Senior GSO at the U.S. Consulate General in Karachi, Pakistan from September 2014 -January 2016. Hassan’s brief visit to the Philippines in 2015, and the most recent abused of Jane Doe 2 alleged in the Stipulation of Facts appeared to have occurred while Hassan was assigned to the US Consulate General in Karachi. 
The last entry in Hassan’s online resume indicates that he worked as GSO at the “Near East Asia/Pacific Executive Office” at the State Department from “February 2016-present” but also lists as part of his duties and accomplishments updating “all EAP/GSO standard operation procedures.” We should point out for those unfamiliar with State Department bureaus that NEA and EAP are two different offices.
Arrest and Detention
According to the “Affidavit in Support of the Criminal Complaint and an Arrest Warrant” executed by a special agent from DHS/ICE’s Homeland Security Investigations, an FBI Task Force Officer in an undercover capacity accessed a publicly available peer-to-peer file sharing program known to law enforcement to be used by individuals with sexual interest in children from an Internet-connected computer on January 22, 2018. 
The undercover (UC) was “friends” with a user, and downloaded 24 folders from that user which contained approximately 2600 depictions of child pornography. The UC determined the IP address of the user, eventually served a subpoena to the ISP provider which returned the user name during the session as that belonging to Steven Hassan.
On March 27, 2018, a judge authorized a state search and seizure warrant of Hassan’s residence in Frederick, MD.
On April 13, a federal search and seizure warrant for Hassan’s residence was issued for evidence relating to possession with intent to distribute child pornography.
On June 8, 2018, Hassan was arrested at his residence in connection with a federal warrant and has been detained since that time.
On August 17, 2018, the State Department (through HR’s Office of Employee Relations, Work/Life Division) updated 3 FAM 1810 Family Advocacy Program (Child Abuse, Child Neglect, and Domestic Violence) of the Foreign Affairs Manual. Was this pure coincidence or did this case precipitate the update of the FAM? 
Plea and Sentencing
Under the plea agreement signed by Hassan on March 5, 2019, the penalties under the statute he was charged has a minimum  of 15 years, and a maximum of 30 years, with supervised release for life.
On August 12, 2019, United States Attorney Robert K. Hur wrote to the court informing the judge that “three of Defendant’s victims in the Philippines have informed the Government that (1) each is seeking restitution for harm suffered as a result of Defendant’s offense; and (2) each is willing to agree to restitution in the amount of $1,000 per person. The Government has informed Defendant’s counsel of the amount of restitution sought by each of the victims. Defendant does not object to it. Accordingly, the Government at sentencing tomorrow will ask the Court to include $1,000 in restitution to each of the three victims who have sought it in the Judgment and Commitment Order.” 
On August 13, 2019, U.S. District Judge Paul W. Grimm sentenced Steven Hadley Hassan, age 52,  to 40 years in federal prison, followed by a lifetime of  supervised release.
Questions
If not for the undercover officer who was able to access Hassan’s pornographic files online, we would not have known about his sexual abuse of Jane Doe 1 and other minors, or his production and transportation of child pornography, would we?
What medical and mental health assistance were made available to Jane Doe 1 whose abuse occurred in USG-provided housing?
We recognized that Hassan has been identified in court documents as a former State Department employee. But when exactly did Hassan become a former State Department employee – was he already a former employee before his arrest, or did he become a former employee following his arrest? We’ve sent the State Department several nagging questions about this case on Wednesday; to-date we have not heard anything back. 
And then there’s this: Diplomatic Security’s DSS conducts more than 38,000 personnel security actions each year for the Department of State and other federal agencies. What happened to this one? Also what about the Continuous Evaluation Program?  Diplomatic Security says on its website that the Office of the Director of National Intelligence (ODNI) implemented Continuous Evaluation (CE) program in December 2016 to ensure the federal government maintains a strong and trusted workforce.  CE applies to all Executive Branch personnel who require eligibility for access to classified information or eligibility to hold a sensitive position. How did that work here?


Via USDOJ: Former Foreign Service Officer Sentenced to 40 Years in Federal Prison for Production and Transportation of Child Pornography
Sexually Abused at Least Five Minors While Stationed Overseas as a Foreign Service Officer

Greenbelt, Maryland – U.S. District Judge Paul W. Grimm today sentenced Steven Hadley Hassan, age 52, of Frederick, Maryland, to 40 years in federal prison, followed by lifetime supervised release, for sexually abusing minors to produce child pornography and transporting those images to the United States.  Judge Grimm also ordered that, upon his release from prison, Hassan must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).  Hassan has been detained since his arrest on June 8, 2018.

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State Department Official Patricia DeLaughter Pleads Guilty to Procurement Fraud

 

On August 9, 2019, USDOJ announced that State Department employee, Patricia DeLaughter pled guilty to disclosing confidential State Department bid proposals n an effort to help a furniture company executive win a lucrative government contract. Sentencing is scheduled for November 8, 2019.

Photo via State Magazine, April 2009

Via USDOJ: State Department Official Pleads Guilty to Procurement Fraud

ALEXANDRIA, Va. – A Washington, D.C., woman pleaded guilty today to disclosing confidential State Department bid proposals in an effort to help a furniture company executive win a lucrative government contract to provide furniture to a United States embassy abroad.

According to court documents, Patricia DeLaughter, 69, was a State Department official who was responsible for procuring furniture for United States embassies. In or around December 2016, the State Department was constructing a new embassy in a foreign nation. DeLaughter and another Department official participated in the process of soliciting bid proposals from contractors for the procurement of furniture for the new embassy’s offices.

From in or around December 2016 to in or around March 2017, DeLaughter and the other State Department official knowingly disclosed to Steven Anstine, the vice president of sales for an American furniture manufacturer, the confidential bid prices and design plans of at least three of Anstine’s competitors. DeLaughter knowingly disclosed this information in order to give Anstine—with whom DeLaughter had a social relationship—a competitive advantage in securing the procurement contract for the new embassy. The information that DeLaughter and her coworker gave Anstine enabled him and his company to win the contract with a bid of approximately $1.56 million.

According to DeLaughter’s admissions, DeLaughter made intentionally false statements to agents investigating her conduct. She falsely told State Department Office of Inspector General special agents that she had nothing to do with the embassy furniture project. She also falsely told the agents that she did not have a social relationship with Anstine. In fact, DeLaughter and Anstine had a social relationship and attended dinners, sporting events, and concerts together. Anstine paid at least a portion of DeLaughter’s expenses for these events.

In June 2019, Anstine pleaded guilty to one count of illegally obtaining contractor bid or proposal information in the U.S. District Court for the District of South Carolina.

DeLaughter pleaded guilty to one count of illegally disclosing contractor bid or proposal information and faces a maximum penalty of five years in prison when sentenced on November 8. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division, and Steve A. Linick, Inspector General for the Department of State, made the announcement after U.S. District Judge Rossie D. Alston Jr. accepted the plea. Special Assistant U.S. Attorney Russell L. Carlberg, Deputy Chief Robert J. Heberle and Trial Attorney John P. Taddei of the Criminal Division’s Public Integrity Section are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-205.

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Report: @StateDept Puts On Leave Staffer Who Allegedly Oversees Local Chapter of a White Nationalist Group

 

 

On August 7, the Southern Poverty Law Center‘s Hatewatch program linked a staffer at the Bureau of Energy Resources (State/ENR) to a white nationalist organization in the Washington, D.C. area.  Hatewatch alleged in its report that this individual “oversaw the Washington, D.C.-area chapter of a white nationalist organization, hosted white nationalists at his home and published white nationalist propaganda online.”
We asked the State Department for a comment beyond what was already reported (that the agency is an “inclusive organization”). An agency spokesperson did confirm that this individual is employed by the agency as a foreign affairs officer assigned to the Bureau of Energy Resources. The Department further stated that it cannot comment on personnel issues but “is committed to providing an inclusive workplace.”
Reports indicate that the individual is a “foreign affairs officer“, a Civil Service position in the 0130 Foreign Affairs series. These positions are typically located in the DC area, and though may involved occasional travel, it is not a rotational position. Incumbents to these positions are normally required to “obtain and maintain a Top Secret security clearance” among other federal service requirements.
Barely 24 hours after the Hatewatch report broke, Politico, citing “two sources familiar with the situation” reported that the State Department has put the employee on leave following reports that “he has been an active member of a white supremacist group for more than five years.”
We’re waiting to see what the State Department will do with this case following the reported leave.  A 2017 article on federal employees’ rights notes that “At a minimum, before taking an adverse action like termination, an agency must issue a notice to the employee identifying the charge(s) against them. The employee has the right to see the evidence against them and the right to reply to the charge(s), as well as the right to have counsel represent them.”
Unlike political appointees who can be fired at anytime, career federal employees are generally afforded workplace protection. Recent media reports also show the fallout from recent high profile terminations. In one case, former Special Agent Peter Strzok firing resulted in a complaint alleging violations of Strzok’s First Amendment and due process rights, as well as a violation of the Privacy Act concerning the release of the text messages. Similarly, on August 8, former FBI Deputy Director Andrew McCabe also filed a complaint in the U.S. District Court for the District of Columbia over his demotion and dismissal from the FBI. The complaint alleges that the Attorney General William Barr and FBI Director Christopher Wray’s actions violated both McCabe’s First Amendment and due process rights.  See the common thread there? We expect both court cases will be lengthy and instructive.
As an aside, Mick “it’s nearly impossible to fire a federal worker” Mulvaney has a grand new idea on how to get rid of federal employees; which should give people some pause whether they’re with Agriculture or anywhere else in the federal government.

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Former @StateDept Employee Candace Marie Claiborne Sentenced to 40 Months in Prison

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Correction: 40 months in prison, not 40 years.
In March 2017, the Justice Department announced the arrest of State Department employee, Candace Marie Claiborne, 60, of Washington, D.C. for obstructing an official proceeding and making false statements to the FBI, both felony offenses, and for allegedly concealing numerous contacts that she had over a period of years with foreign intelligence agents. (see @StateDept OMS Arrested/Charged With Concealing Extensive Contacts With Chinese Intel Agents).
In April 2019, USDOJ announced that Claiborne pled guilty to conspiring with foreign agents. (see Former @StateDept Employee Pleads Guilty to Conspiring with Foreign Agents).
On July 9, 2019, USDOJ announced that Claiborne was sentenced to 40 months in prison, three years of supervised release and a fine of $40,000, for conspiracy to defraud the United States, by lying to law enforcement and background investigators, and hiding her extensive contacts with, and gifts from, agents of the People’s Republic of China, in exchange for providing them with internal documents from the U.S. State Department.
Below via the DOJ announcement. See the original statement here.

The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu of the District of Columbia, Acting Assistant Director in Charge John P. Selleck of the FBI’s Washington Field Office and Deputy Assistant Secretary Ricardo Colón, Domestic Operations, U.S. Department of State’s Diplomatic Security Service (DSS).

“Chinese intelligence agents convinced Candace Marie Claiborne to trade her integrity and confidential information of the United States government for cash and other gifts for herself and her family,” said Assistant Attorney General Demers. “Claiborne withheld information and lied repeatedly about these foreign intelligence contacts. Violations of the public’s trust are an affront to our citizens and to all those who honor their oaths. With this sentencing, justice has been imposed for these dishonorable criminal acts.”

“Candace Claiborne received gifts from foreign officials and lied to investigators repeatedly about her role in defrauding the U.S. government,” said U.S. Attorney Liu. “Claiborne violated her oath as a State Department employee, and we will continue to hold accountable those abuse their positions of trust.”

“Claiborne was entrusted with privileged information as a U.S. government employee, and she abused that trust at the expense of our nation’s security,” said John P. Selleck, Acting Assistant Director in Charge of the FBI Washington Field Office. “The targeting of U.S. security clearance holders by Chinese intelligence services is a constant threat we face, and today’s sentencing shows that those who betray the trust of the American people will be held accountable for their actions. I would like to thank the men and women of the FBI Washington Field Office and our partners at the Department of Justice for their work in investigating and prosecuting this case.”

“This sentence makes a strong statement to those who would attempt to commit crimes that violate the public trust and damage our national security. The Diplomatic Security Service is dedicated to working with the FBI and the U.S. Attorney’s Office to ensure that those who commit these crimes are brought to justice,” said Deputy Assistant Secretary Colón.”

Claiborne, of Washington, D.C., pleaded guilty in April 2019 in the U.S. District Court for the District of Columbia, to a charge of conspiracy to defraud the United States. She was sentenced by the Honorable Randolph D. Moss.

According to the plea documents, Claiborne began working as an Office Management Specialist for the Department of State in 1999. She has served overseas at a number of posts, including embassies and consulates in Baghdad, Iraq, Khartoum, Sudan, and Beijing and Shanghai, China. As a condition of her employment, Claiborne maintained a TOP SECRET security clearance. Claiborne also was required to report any contacts with persons suspected of affiliation with a foreign intelligence agency.

Despite such a requirement, Claiborne failed to report repeated contacts with two intelligence agents of the People’s Republic of China (PRC), even though these agents provided tens of thousands of dollars in gifts and benefits to Claiborne and her family over five years. The gifts and benefits included cash wired to Claiborne’s USAA account, Chinese New Year’s gifts, international travel and vacations, tuition at a Chinese fashion school, a fully furnished apartment, and a monthly stipend. Some of these gifts and benefits were provided directly to Claiborne, while others were provided through a co-conspirator.

In exchange for these gifts and benefits, Claiborne provided copies of internal documents from the Department of State on topics ranging from economics to visits by dignitaries between the two countries.

Claiborne noted in her journal that she could “Generate 20k in 1 year” working with one of the PRC agents, who tasked her with providing internal U.S. Government analyses on a U.S.-Sino Strategic Economic Dialogue that had just concluded.

Claiborne, who confided to a co-conspirator that the PRC agents were “spies,” willfully misled State Department background investigators and FBI investigators about her contacts with those agents, the plea documents state.  After the State Department and FBI investigators contacted her, Claiborne also instructed her co-conspirators to delete evidence connecting her to the PRC agents.

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Former Senior USAGM Official Haroon K. Ullah Pleads Guilty to Stealing Government Money

 

We’re late on this, but on June 27, 2019, USDOJ announced that Haroon K. Ullah, a former senior official of the U.S. Agency for Global Media (USAGM), the agency formerly known as the Broadcasting Board of Governors (BBG) entered a plea of guilty for stealing over $40,000 in government money in 2018.
Former Senior Official Pleads Guilty to Stealing Government Money
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to stealing over $40,000 in government money during 2018, while he was employed as a senior government official at the U.S. Agency for Global Media (USAGM) in Washington, D.C.
According to court documents, Haroon K. Ullah, 41, admitted that he fraudulently obtained thousands of dollars in government funds by submitting falsified hotel invoices, falsified and inflated taxi and Uber receipts, and by billing the government for personal travel and for travel that had already been paid by third parties.
Additionally, Ullah admitted that he created a falsified letter from a real medical doctor purportedly claiming that Ullah needed to fly in business class at government expense because of a sore knee. By submitting the forged letter from the doctor, Ullah fraudulently obtained costly business class upgrades at government expense, including on lengthy international flights. Ullah admitted to creating many of the false documents on his government-issued laptop computer. As part of the plea, Ullah also admitted that he submitted falsified invoices and repair estimates to an insurance company regarding a claim for repairs to his home in Alexandria.
A former employee of the U.S. Department of State, Ullah became a member of the Senior Executive Service when he joined USAGM as its Chief Strategy Officer (CSO). Ullah committed his crime from February through October 2018, while serving as CSO. Ullah is no longer employed with USAGM.
Ullah pleaded guilty to theft of government money and faces a maximum penalty of 10 years in prison when sentenced on October 11. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Steve A. Linick, Inspector General for the Department of State, made the announcement after U.S. District Judge T.S. Ellis, III, accepted the plea. Special Assistant U.S. Attorney Russell L. Carlberg is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-183.
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Mr. Ullah’s website still says that he “serves as Chief Strategy Officer at the Broadcasting Board of Governors, an $800 million global media agency. He is a scholar, diplomat and policy practioner with a special focus on digital strategy, countering violent extremism and transmedia engagement.”
USAGM’s website has removed Mr. Ullah’s bio from its website and  info related to him appears not to display prominently on its website; a search still returns events where he was featured as the agency’s CSO, and the Wayback Machine has archived this CSO for eternity.
A Statement of Facts submitted with Mr. Ullah’s Plea Agreement notes that before joining USAGM, he had been employed with the U.S. Department of State since 2010.  It also notes the following:

5. During the approximate ninth—month period of February 2018-October 2018, ULLAH submitted for reimbursement multiple falsified hotel invoices; falsified taxi receipts; double-billed third party sponsors and USAGM for the same trips; and billed USAGM for personal
trips, either to promote his book, or for week-end trips during which little to no USAGM business was conducted. ULLAH used his government computer, a Microsoft Surface Pro, to create the false documents. He would obtain logos and other graphics on-line and use either an invoice generator or Microsofi Excel in order to create fraudulent hotel invoices. Sometimes ULLAH had stayed with a family member or friend or at a budget hotel, but he created the false invoice for the purpose of financial gain in order to maximize his reimbursement from USAGM. With other hotel invoices, ULLAH took a legitimate hotel invoice and changed his address or other data in order to conceal that the hotel room had been paid by a third party, which fact ULLAH intentionally failed to disclose to E2 and USAGM.

8. As part of a scheme to obtain business class travel to which he was not entitled, ULLAH also submitted to USAGM a falsified and forged letter from a real medical doctor, identified here by the initials N.A., claiming that ULLAH required an upgrade to business class because of a medical condition that required him to “lie flat” on long flights. The doctor confirmed to law enforcement that the letter was a forgery; that he did not authorize ULLAH to use his identity or to sign his name for him; and that a business class upgrade for ULLAH’s sore knee
was not medically necessary.

Part of the  Plea Agreement says:

Further, in accordance with Rule 11(c)(l)(B) of the Federal Rules of Criminal Procedure, the United States and the defendant will recommend to the Court that the following provisions of the Sentencing Guidelines apply: Under Section 2B1 .1(b), the intended loss is greater than $40,000 but less than $95,000, thus six levels are added to the base offense level. Under Section 3Bl.2, the United States and the defendant agree to a two level enhancement for abuse of a position of public trust as an employee of the United States.

The Plea also notes:

“The United States will not further criminally prosecute the defendant in the Eastern District of Virginia for the specific conduct descfibed in the information or statement of facts. This plea agreement and statement of facts does not confer on the defendant any immunity from prosecution by any state government in the United States.”

 

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