@StateDept Employee and Spouse Indicted for Trafficking in Counterfeit Goods from U.S. Embassy Seoul

 

Via USDOJ:

State Department Employee and Spouse Indicted for Trafficking in Counterfeit Goods from U.S. Embassy

A U.S. Department of State employee and his spouse were arrested today for their role in an international conspiracy to traffic in counterfeit goods from the U.S. Embassy in Seoul, Korea.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Billy J. Williams of the District of Oregon and Deputy Assistant Secretary Ricardo Colón of the Department of State Diplomatic Security Service made the announcement.

Gene Leroy Thompson Jr., 53, and Guojiao “Becky” Zhang, 39, were indicted by a grand jury in Eugene, Oregon, and charged with conspiracy and trafficking in counterfeit goods.  According to the indictment and other court documents, from September 2017 through December 2019, Thompson Jr. and Zhang allegedly sold counterfeit Vera Bradley handbags from e-commerce accounts to persons throughout the United States.

Thompson Jr. is employed by the U.S. Department of State as an Information Programs Officer at the U.S. Embassy in Seoul, Korea.  Thompson Jr. used his State Department computer to create numerous accounts on a variety of e-commerce platforms, all from within a secure space within the Embassy designed to protect classified information.  Once Thompson Jr. created these accounts, Zhang took primary responsibility for operating the accounts, communicating with customers, and procuring merchandise to be stored in the District of Oregon.  Thompson Jr. and Zhang also directed a co-conspirator in the District of Oregon to ship items to purchasers across the United States.

An indictment is merely an accusation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The Diplomatic Security Service Office of Special Investigations investigated the case with assistance from the U.S. Postal Inspection Service. The Criminal Division’s Office of International Affairs provided assistance.  Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Amy Potter of the District of Oregon are prosecuting the case.

At the State Department, the Information Programs Officer (IPO) manages the Information Programs Center (IPC)  and is responsible for all IPC systems, programs, and telecommunications operations. According to the FAM, the IPC is primarily responsible for all classified Information Resource Management communications and systems.
Count 1 of the Grand Jury Charges is Conspiracy to Traffic in Counterfeit Goods) (18 U.S.C. § 2320(a))

“From at least in or about September 2017 and continuing until at least the date of this Indictment, in the District of Oregon and elsewhere, Defendants, GENE LEROY THOMPSON, JR., a.k.a. Eugene Leroy Thompson, Jr., and GUOJIAO ZHANG, a.k.a. Becky Zhang, a.k.a. Becky Thompson, knowingly and intentionally conspired and agreed with each other and with others known and unknown to the Grand Jury, to intentionally traffic in goods, namely Vera Bradley handbags, while knowingly using on and in connection with such goods counterfeit marks, the use of which counterfeit marks was likely to cause confusion, mistake, and deception; Indictment . Page 1 Revised April 2018 Case 6:19-cr-00561-MC Document 1 Filed 12/11/19 Page 1 of 7 In violation of Title 18, United States Code, Section 2320(a).”

Item #9 of the Indictment notes:

“On or about April 23, 2018, Vera Bradley sent cease-and-desist letters to the coconspirator’s home in Nyssa, Oregon. On or about April 26, 2018, that co-conspirator conveyed the information in the cease-and-desist letter to THOMPSON, JR. via e-mail, saying that Vera Bradley is “requesting that you immediately cease and desist from offering for sale any Vera Bradley counterfeit products and destroy any violating products.” THOMPSON, JR. replied, “OK, I thought this would happen. Stop all shipment.” THOMPSON, JR. then sent an e-mail to ZHANG stating, “Take all of the listing for VB down. VB has caught you.”

Also item #10 further notes:

“Subsequently, Defendants began creating e-commerce accounts in the name of aliases and used those accounts to continue selling counterfeit Vera Bradley merchandise.”

Download Thompson Indictment

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Ex-Fox News Commentator/CIA Impostor Sentenced to 33 Months in Prison For Fraud

Posted: 3:27 am ET
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We’ve previously posted about this case here: Ex-Fox News Commentator Pleads Guilty to Fraud, Dents Benghazi Cottage Industry. On July 15, USDOJ announced that Wayne Shelby Simmons was sentenced  to 33 months in prison “for major fraud against the government, wire fraud, and a firearms offense.” The sentence also includes three years of supervised release, forfeiture of two firearms and $175,612 in criminal proceeds, and restitution to his victims.

Via USDOJ | CIA Imposter Sentenced to Prison for Fraud

ALEXANDRIA, Va. – Wayne Shelby Simmons, 62, of Annapolis, Maryland, a former Fox News commentator who has falsely claimed he spent 27 years working for the Central Intelligence Agency (CIA), was sentenced today to 33 months in prison for major fraud against the government, wire fraud, and a firearms offense.  Simmons was also ordered to serve three years of supervised release, to forfeit two firearms and $175,612 in criminal proceeds, and to pay restitution to his victims.

“Wayne Simmons is a fraud,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Simmons has no military or intelligence background, or any skills relevant to the positions he attained through his frauds.  He is quite simply a criminal and a con man, and his fraud had the potential to endanger national security and put American lives at risk in Afghanistan.   I want to thank the agents and prosecutors for their efforts on this complicated case.”

“With this sentencing, Simmons now faces the consequences of his criminal activity, deceit, and dishonesty,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.  “He fraudulently obtained positions with the U.S. government by lying about his previous employment and history, and further, defrauded a victim through a bogus real estate investment scheme. Simmons abused people’s trust for his own selfish gain, and in doing so placed lives at risk and jeopardized national security.”

“Mr. Simmons never worked at CIA and we are pleased that justice was served in this case,” said Dean Boyd, Director of CIA’s Office of Public Affairs.

Simmons pleaded guilty on April 29.  According to court documents, Simmons defrauded the government in 2008 when he obtained work as a team leader in the U.S. Army’s Human Terrain Systems program, in 2009 when he attempted to obtain work with the State Department’s Worldwide Protective Service, and again in 2010 when he was deployed to Afghanistan as a senior intelligence advisor on the International Security Assistance Force’s Counterinsurgency Advisory and Assistance Team (CAAT).  To obtain these positions and the security clearances they required, Simmons made false statements about his financial, employment, and criminal history, including that he had worked for the CIA, that he had previously possessed a top secret security clearance, and that his prior criminal convictions related to his supposed clandestine work.  In order to obtain the CAAT position, Simmons also lied about the nature of the work he had done just a year earlier with the Human Terrain Systems program, a program from which he had been forced to resign prior to deployment.  The government’s investigation determined that Simmons was never associated with the CIA in any capacity and that during the years he claims to have worked for the agency, he was instead working in a variety of capacities and having various run-ins with the law.  His work activities from 1973-2000 include: defensive back for the New Orleans Saints NFL team, nightclub doorman, manager at a rent-by-the-hour hot tub business, bookie, operator of a limousine business and an AIDS-testing business, mortgage broker, and employment at an anti-graffiti business.  During that time, the defendant was also convicted of state firearms, assault, and gambling charges and federal firearms charges.

Simmons also defrauded an individual victim, identified as E.L., out of $125,000 in connection with a bogus real estate investment.  As part of the fraud, Simmons sent E.L. promised monthly disbursements to make it appear as if her funds had been invested as promised and repeatedly lied to her about the whereabouts of her money in order to perpetuate the fraud.  There was never any actual real estate investment project, and Simmons simply spent the funds.

Finally, when Simmons was arrested in this case, he was found to be in possession of two firearms, which he was prohibited from possessing on account of his prior felony convictions.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge T. S. Ellis, III.  Assistant U.S. Attorneys Paul J. Nathanson and James L. Trump prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1: 15-cr-293.

Click file to read the indictment (PDF) via USDOJ/USAO/Eastern District of Virginia.

This is a guy who was part of the Pentagon’s Retired Military Analysts program whose members, the um… “message force multipliers” were given regular briefings from Donald Rumsfeld, then the secretary of defense. Read the wild story on how this con unraveled: The Plot to Take Down a Fox News Analyst via NYT mag.

 

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Former @StateDept Employee Assigned to PRT Kirkuk Indicted in $2M Government Contract Conspiracy

Posted: 1:50 am EDT
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On December 18, the USDOJ announced the indictment by a grand jury of former State Department employee, Kenneth Apple, 65, of Beaverton, Oregon, on charges related to his role in allegedly awarding $2 million in micro-dairy contracts from the U.S. government for use in Iraq.

Via DOJ/U.S. Attorney’s Office, Eastern District of Virginia:

According to the indictment, Apple, a former employee with the U.S. Department of State, helped to steer the sole-sourcing of $2 million in micro-dairy contracts to a company in which his son, Jonathan Apple, owned a 50 percent interest.  However, Jonathan Apple and his partner had no technical experience in the industry.  Kenneth Apple conspired to use his official position to pass on non-public information to his son in order to fraudulently award and administer government contracts.  The conspirators further provided false information to, and concealed material details from the U.S. government.

According to the indictment, Kenneth Apple provided templates and technical specifications used in the proposal submitted by Jonathan Apple and his partner to the U.S. government.  In addition, Kenneth Apple caused false and misleading statements to be made to the U.S. government regarding his experience, ownership interest, and the status of the projects.  For example, Kenneth Apple directed a conspirator to keep Jonathan Apple’s name off the company’s website and any ownership documents.  When federal law enforcement agents confronted Kenneth Apple about the scheme, he made false statements, including that he could not recall the owner of the company that won the micro-dairy contracts and that he did not receive any money from the contracts.

Kenneth Apple faces a maximum penalty of 20 years in prison if convicted of wire fraud or obstruction of an official proceeding, and five years in prison if convicted of conspiracy or false statements.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU); and Robert E. Craig, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office, made the announcement.  Assistant U.S. Attorneys Uzo Asonye and Katherine Wong are prosecuting the case.

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According to court records, Kenneth D. Apple was arrested on December 18 in Oregon.  His defense is currently listed as the Office of the Federal Public Defender in Alexandria, Virginia.

The indictment says that Kenneth D. Apple was a civilian employee with the Department of State assigned to the Kirkuk PRT in Iraq from January 2009 through March 2011 as an agricultural advisor.  Micro-dairy processors are self-contained, mini-factories that are used to process milk into cheese and yogurt.

Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-363.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

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Related items:

News: Micro-dairy plant brings Kirkuk local farmers together | Dvidshub.net (2.21.2011)

Beaverton man indicted in alleged Iraqi contracting fraud | Oregon.live

Twin Brothers and Co-Conspirators on Alleged Scheme to Hack State Dept to Obtain Passport Information

Posted: 2:16 am EDT
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Via
USDOJ:

Twin brothers Muneeb and Sohaib Akhter, 23, of Springfield, Virginia, were indicted by a federal grand jury today on charges of aggravated identity theft, conspiracy to commit wire fraud, conspiracy to access a protected computer without authorization, access of a protected computer without authorization, conspiracy to access a government computer without authorization, false statements, and obstruction of justice.

According to the indictment, beginning in or about March 2014, the Akhter brothers and coconspirators hacked into the website of a cosmetics company and stole its customers’ credit card and personal information.  They used the stolen information to purchase goods and services, including flights, hotel reservations, and attendance at professional conferences.  In addition, the brothers and coconspirators devised a scheme to hack into computer systems at the U.S.  Department of State to access network traffic and to obtain passport information.

Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-124.

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U.S. Grand Jury Indicts Indian Diplomat Devyani Khobragade (See Documents)

— Domani Spero

On January 9, a U.S. Grandy Jury indicted Indian diplomat, Devyani Khobragade for visa fraud (count one) and for false statements (count two). The U.S. Attorney’s Office for the Southern District of New York has now posted copies of the indictment and the exhibits (includes the alleged fake employment contract and alleged real employment contract).

INDICTMENT, EXHIBITS & RELATED LETTER: U.S. v. Devyani Khobragade

A U.S. government official told Reuters that the State Department accepted India’s request to accredit Ms. Khobragade at the Indian Mission to the United Nations and then asked India to waive her diplomatic immunity that the status conferred.  India reportedly denied the request which resulted in Washington asking for Ms. Khobragade’s departure from the United States.

Apparently, one of Ms. Khobragade’s attorneys told CNN late Thursday afternoon that she was still in the United States, but declined to say whether she planned to leave later. The U.S. Attorney’s Office for the Southern District of New York subsequently released the following statement:

“This Office had been advised by the State Department that, pursuant to their request, Devyani Khobragade was to have left the United States this afternoon. In a letter sent to the Court upon the filing of the Indictment of Ms. Khobragade, we stated our understanding that she had left the country. Subsequent to the filing of the letter, Ms. Khobragade’s lawyer advised that she has not, in fact, departed the U.S.”

This may end the contentious U.S.-India row but this is not the end of the case against Ms. Khobragade.  In a filing to the New York court, Manhattan US attorney Preet Bharara writes that “the charges will remain pending until such time as she can be brought to Court to face the charges, either through a waiver of immunity or the defendant’s return to the United States in a non-immune status.”

Pending charges could complicate future plans of visiting or residing in the United States as Ms. Khobragade is reportedly married to a U.S. citizen.

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