US Embassy Malaysia: Extradition to U.S. For Smuggling Scheme Involving 1500 Protected Turtles

 

Via USDOJ: Foreign National Sentenced for Money Laundering Funds to Promote Turtle Trafficking

A Chinese citizen was sentenced today to 38 months in prison and one year of supervised release on a federal money laundering conviction.

Kang Juntao, 25, of Hangzhou City, China, had previously pleaded guilty in U.S. District Court in Camden, New Jersey, to financing a nationwide ring of individuals who smuggled at least 1,500 protected turtles, valued at more than $2,250,000, from the United States to Hong Kong. The court also ordered Kang to pay a $10,000 fine, equaling the total assets he held in the United States.

From at least June 12, 2017, to Dec. 3, 2018, Kang recruited a network of poachers, shippers and middlemen to illegally obtain and export turtles. He sent money through U.S. banks, including one in New Jersey, to pay for the turtles and their shipments. He arranged for the turtles to be sold illegally in the Chinese pet market for thousands of dollars each.

Kang had never entered the United States, but the U.S. money laundering statute provides jurisdiction when someone outside of the country passes more than $10,000 through the U.S. financial system to promote specified unlawful activities, such as smuggling wildlife.

In furtherance of the United States’ request for provisional arrest with a view to extradition, the Royal Malaysia Police arrested Kang when he traveled to Kuala Lumpur on Jan. 23, 2019. Kang was extradited to the United States to stand trial in the District of New Jersey in December 2020 pursuant to the extradition treaty between the United States and Malaysian governments.

“The Department of Justice will vigorously prosecute those who finance and profit from illegal wildlife trafficking, even if they do so from abroad,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.

“The extradition of a foreign national who had never set foot on American soil for financing a turtle-trafficking ring in the U.S. sends an important message: those who exploit imperiled wildlife for profit will be brought to justice,” said Assistant Director Edward Grace for the U.S. Fish and Wildlife Service Office of Law Enforcement. “This investigation illustrates the global reach of the Service’s Office of Law Enforcement made possible by close coordination with partners, including the government of Malaysia, and our resolve to stop international wildlife trafficking from source to consumer.”

The United States, Malaysia, China and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is an international treaty that restricts trade in species that may be threatened with extinction.

Kang trafficked in five turtle species protected by the treaty. The eastern box turtle (Terrapene carolina carolina), the Florida box turtle (Terrapene carolina bauri) and the Gulf Coast box turtle (Terrapene carolina major) are subspecies of the common box turtle (Terrapene carolina) and have been listed in CITES since 1995. The spotted turtle (Clemmys guttata) is a semi-aquatic turtle listed in CITES as of 2013. The wood turtle (Glyptemys insculpta) has been protected under CITES since 1992. The turtles are worth on average between $650 to $2,500 each in the Asian market. Female turtles with rare markings have been sold for as much as $20,000.

Kang sent money via PayPal, credit cards or bank transfers to the United States to purchase turtles from sellers advertising on social media or reptile trade websites. These suppliers then shipped the turtles to middlemen across five different states. The middlemen were typically Chinese citizens who entered the country on student visas. Kang paid and instructed these intermediaries to repackage the turtles in boxes with false labels for clandestine shipment to Hong Kong. The turtles were inhumanely bound with duct tape and placed in socks so as not to alert customs authorities. Neither Kang nor his associates declared the turtles to U.S. or Chinese customs or obtained the required CITES permits.

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A Plot To Injure Or Kill Myanmar’s Ambassador to The United Nations

 

Via USDOJ:

Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of YE HEIN ZAW, a citizen of Myanmar, for his role in a conspiracy to assault and make a violent attack upon Myanmar’s Permanent Representative to the United Nations.  ZAW pled guilty today in White Plains federal court before U.S. District Judge Philip M. Halpern.

U.S. Attorney Damian Williams said: “As he admitted in court today, Ye Hein Zaw participated in a plot to injure or kill Myanmar’s ambassador to the United Nations in a planned attack that was to take place on American soil.  Zaw now awaits sentencing for his crime.  I commend the tireless efforts of our law enforcement partners at all levels of government to ensure the safety of foreign diplomats and officials in the United States and bring the perpetrators of this plot to justice.”

According to the Information to which ZAW pled guilty, the complaint that was filed in this case, and statements made during court proceedings:

Between at least in or about July 2021 through at least on or about August 5, 2021, ZAW, a citizen of Myanmar residing in New York, conspired with others to injure or kill Myanmar’s Permanent Representative to the United Nations (the “Ambassador”).  During the conspiracy, a co-conspirator communicated with an arms dealer in Thailand (the “Arms Dealer”) who sells weapons to the Burmese military, which overthrew Myanmar’s civilian government in or about February 2021.  In the course of those conversations, the co-conspirator and the Arms Dealer agreed on a plan in which the co-conspirator would hire attackers to hurt the Ambassador in an attempt to force the Ambassador to step down from his post.  If the Ambassador did not step down, then the Arms Dealer proposed that the attackers hired by the co-conspirator would kill the Ambassador.

Shortly after agreeing on the plan, ZAW contacted the co-conspirator by cellphone and, using a money transfer app, transferred approximately $4,000 to the co-conspirator as an advance payment on the plot to attack the Ambassador.  Later, during a recorded phone conversation, ZAW and the co-conspirator discussed how the planned attackers would require an additional $1,000 to conduct the attack on the Ambassador in Westchester County, and, for an additional payment, the attackers could, in substance, kill the Ambassador.  In response, ZAW agreed, in substance, to pay the additional $1,000 and to try to obtain the additional money.

ZAW pled guilty to one count of conspiracy to assault and make a violent attack upon a foreign official, which carries a maximum sentence of five years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

ZAW is scheduled to be sentenced by Judge Halpern on May 10, 2022.

Read more:

US Embassy Belize: Resident Amcit Pleads Guilty in Crypto Laundering Service, Forfeits 4,400+ Bitcoins

 

This past summer, an Ohio resident who was apparently also a resident of Belize pleaded guilty to a money laundering conspiracy arising from his operation of Helix, a Darknet-based cryptocurrency laundering service. The plea deal includes the forfeiture of more than 4,400 bitcoin, valued at more than $200 million.
Via USDOJ: Ohio Resident Pleads Guilty to Operating Darknet-Based Bitcoin ‘Mixer’ That Laundered Over $300 Million

An Ohio man pleaded guilty today to a money laundering conspiracy arising from his operation of Helix, a Darknet-based cryptocurrency laundering service.

According to court documents, Larry Dean Harmon, 38, of Akron, admitted that he operated Helix from 2014 to 2017. Helix functioned as a bitcoin “mixer” or “tumbler,” allowing customers, for a fee, to send bitcoin to designated recipients in a manner that was designed to conceal the source or owner of the bitcoin. Helix was linked to and associated with “Grams,” a Darknet search engine also run by Harmon. Harmon advertised Helix to customers on the Darknet to conceal transactions from law enforcement.

“By holding Harmon accountable, the department has disrupted the unlawful money laundering practices of these dangerous criminal enterprises,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Justice Department, together with our law enforcement and regulatory partners, will continue to take enforcement actions to identify and impede those who use illicit means for financial gain, as well as those who use the Darknet to facilitate and obscure their criminal conduct.”

“Darknet markets and the dealers who sell opioids and other illegal drugs on them are a growing scourge,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “They may try to hide their identities and launder millions in sales behind technologies like Helix. But the department and its law enforcement partners will shine a light on their activities, dismantle the infrastructure such criminal marketplaces depend on, and prosecute and convict those responsible.”

“Criminals may think they can mask financial transactions by using services like Helix to conceal the source of illicit funds,” said Assistant Director Calvin A. Shivers of the FBI’s Criminal Investigative Division. “The FBI and our state, local, federal and international law enforcement partners are working together every day in a complex and ever-changing digital environment to protect the American people from sophisticated money launderers and financiers.”

“The Darknet is driven in part by the criminal marketplaces which peddle their nefarious goods and services,” said Chief James C. Lee of the IRS Criminal Investigation. “But these marketplaces thrive in large measure because of the infrastructure that supports them. Harmon profited by facilitating the back-channel support of these marketplaces and helped criminals launder money they received via illicit activities. He then hid those funds from the government. He admitted his role today in these activities and will now be held accountable.”

“Harmon admitted that he conspired with Darknet vendors to launder bitcoin generated through drug trafficking and other illegal activities,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “Today’s guilty plea demonstrates the FBI’s commitment to infiltrate and shut down the cryptocurrency money-laundering networks that support cyber-criminal enterprises.”

Harmon admitted that Helix partnered with several Darknet markets, including AlphaBay, Evolution, Cloud 9 and others, to provide bitcoin money laundering services for market customers. In total, Helix moved over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets. Harmon further admitted that he conspired with Darknet vendors and marketplace administrators to launder such bitcoins generated through illegal drug trafficking offenses on those Darknet marketplaces.

As part of his plea, Harmon also agreed to the forfeiture of more than 4,400 bitcoin, valued at more than $200 million at today’s prices, and other seized properties that were involved in the money laundering conspiracy. Harmon will be sentenced at a date to be determined and faces a maximum penalty of 20 years in prison, a fine of $500,000 or twice the value of the property involved in the transaction, a term of supervised release of not more than three years, and mandatory restitution. Chief Judge Beryl Howell of the U.S. District Court for the District of Columbia accepted Harmon’s guilty plea and will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The IRS-CI Cyber Crimes Unit and the FBI’s Washington Field Office investigated the case, with valuable assistance provided by the Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office for the Northern District of Ohio, the IRS’s Washington, Cincinnati and Oakland Field Offices, the FBI’s Criminal Investigative Division and Cleveland, Newark and San Francisco Field Offices, and the State Department’s Diplomatic Security Service.

The Belize Ministry of the Attorney General and the Belize National Police Department provided essential support for the investigation, coordinated through U.S. Embassy Belmopan. The investigation was coordinated with the Financial Crimes Enforcement Network, which assessed a $60 million civil monetary penalty against Harmon in a parallel action.

Trial Attorneys S. Riane Harper and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia prosecuted the case. Additional assistance was provided by Trial Attorneys Emily Siedell and Brian Nicholson of the Criminal Division’s Office of International Affairs, former CCIPS Trial Attorney W. Joss Nichols and Assistant U.S. Attorney Daniel Riedl of the Northern District of Ohio.

U.S. Embassy Moscow: A Scheme to Evade Taxes While Renouncing U.S. Citizenship Results in $500M+ Penalty

 

On October 29, USDOJ announced that Oleg Tinkov, aka Oleg Tinkoff, the founder of Russian Bank was sentenced for felony tax conviction arising from scheme to evade exit tax while renouncing his U.S. citizenship. Defendant Paid Over $500 Million in Taxes, Interest, and Penalties

The founder of a Russian bank was sentenced today for his felony conviction for filing a false tax return. As required under his plea agreement, prior to sentencing, Oleg Tinkov, aka Oleg Tinkoff, paid $508,936,184, more than double what he had sought to escape paying to the U.S. Treasury through a scheme to renounce his U.S. citizenship and conceal from the IRS large stock gains that he knew were reportable. This includes $248,525,339 in taxes, statutory interest on that tax and a nearly $100 million fraud penalty. Tinkov was additionally fined $250,000, which is the maximum allowed by statute, and sentenced to time served and one year of supervised release.

Tinkov was indicted in Sept. 2019 for willfully filing false tax returns, and was arrested on Feb. 26, 2020, in London, United Kingdom (UK). The United States sought extradition, and Tinkov contested on medical grounds. In public records, Tinkov has disclosed that he is undergoing a UK-based intensive treatment plan for acute myeloid leukemia and graft versus host disease, which has rendered him immunocompromised and unable to safely travel in the foreseeable future.

On Oct. 1, 2021, Tinkov entered a plea to one count of filing a false tax return. According to the plea agreement, Tinkov was born in Russia and became a naturalized United States citizen in 1996. From that time through 2013, he filed U.S. tax returns. In late 2005 or 2006, Tinkov founded Tinkoff Credit Services (TCS), a Russia-based branchless bank that provides its customers with online financial and banking services. Through a foreign entity, Tinkov indirectly held the majority of TCS shares.

In October 2013, TCS held an initial public offering (IPO) on the London Stock Exchange and became a multi-billion dollar, publicly traded company. As part of going public, Tinkov sold a small portion of his majority shareholder stake for more than $192 million, and his assets following the IPO had a fair market value of more than $1.1 billion. Three days after the successful IPO, Tinkov went to the U.S. Embassy in Moscow, Russia, to relinquish his U.S. citizenship.

As part of his expatriation, Tinkov was required to file a U.S. Initial and Annual Expatriation Statement. This form requires expatriates with a net worth of $2 million or more to report the constructive sale of their assets worldwide to the IRS as if those assets were sold on the day before expatriation. The taxpayer is then required to report and pay tax on the gain from any such constructive sale.

Tinkov was told of his filing and tax obligations by both the U.S. Embassy in Moscow and his U.S.-based accountant. When asked by his accountant if his net worth was more than $2 million for purposes of filling out the expatriation form, Tinkov lied and told him he did not have assets above $2 million. When his accountant later inquired whether his net worth was under $2 million, rather than answer the question, Tinkov filled out the expatriation form himself falsely reporting that his net worth was only $300,000. On Feb. 26, 2014, Tinkov filed a 2013 individual tax return that falsely reported his income as only $205,317. In addition, Tinkov did not report any of the gain from the constructive sale of his property worth more than $1.1 billion, nor did he pay the applicable taxes as required by law. In total, Tinkov caused a tax loss of $248,525,339, which he has paid in full with substantial penalties and interest as part of his plea, together with tax liabilities for other years.

Read in full here.

 

 

US Embassy Manila: USINDOPACOM Employee Pleads Guilty For Removal of Classified Material

 

Via USDOJ:  Woman Pleads Guilty to Unauthorized Removal and Retention of Classified Material

A Hawaii woman pleaded guilty today to one count of knowingly removing classified information concerning the national defense or foreign relations of the United States and retaining it at an unauthorized location.

According to court documents, Asia Janay Lavarello, 31, of Honolulu, admitted to having removed and retained numerous classified documents, writings and notes relating to the national defense or foreign relations of the United States without authority. While working as an Executive Assistant for the U.S. Indo-Pacific Command in Hawaii, Lavarello accepted a temporary assignment working at the U.S. Embassy in the Philippines. There, she had access to classified computers and documents, and attended classified meetings as part of her official duties. Court documents list several specific instances in which Lavarello mishandled classified material of the United States.

According to her plea, on March 20, 2020, Lavarello removed classified documents from the U.S. Embassy in Manila. She took the classified documents to her hotel room where she hosted a dinner party later that evening. Among the guests were two foreign nationals. During the party, a co-worker discovered the documents, which included documents classified at the SECRET level. Lavarello’s temporary assignment in the Philippines was ultimately terminated due to her mishandling of SECRET classified documents.

After Lavarello returned to Hawaii, investigators executed a search warrant at her government workplace. In her desk, investigators found a notebook containing Lavarello’s handwritten notes of meetings she attended while working at the U.S. Embassy in Manila. The notes contained facts and information classified at the CONFIDENTIAL and SECRET levels. Investigators determined that Lavarello personally transported the documents to Hawaii, unsecured, and kept the classified notebook at an unsecure location until at least April 13, 2020.

Investigators also discovered that Lavarello included information from the classified notebook in a Jan. 16, 2020, email from her personal Gmail account to her unclassified U.S. Government email account. The information she transmitted over unsecure networks was classified at the SECRET level.

Lavarello pleaded guilty to the charge of unauthorized removal and retention of classified documents or material and faces up to five years in prison, three years of supervised release and a fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI and Naval Criminal Investigative Service (NCIS) are investigating the case.

Assistant U.S. Attorney Mohammed Khatib of the District of Hawaii and Trial Attorney Stephen Marzen of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

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Septuagenarian and Co-Conspirators Trick @StateDept and a Non-Profit in $575K Fraud Scheme

 

 

Via State/OIG:
In October 2021, Wanda Baker pled guilty to engaging in monetary transactions in property derived from specified unlawful activity, approximately 1 month after co-conspirator Olayinka Agboola plead guilty to the same charge. Sentencing is pending. A year earlier (October 2020), Barker, Agboola, and Linda Johnson were indicted for using a business email compromise scheme to defraud the Department. OIG and FBI special agents determined the individuals tricked the Department and a non-profit agency into wiring at least $575,000 into bank accounts they controlled for the purpose of enriching themselves and their co-conspirators.

U.S. vs. Johnson et al.

A second indictment related to BEC fraud charges Linda Dianne Johnson, 70, of Charlotte, Wanda Jackson Barker, 71, of Athens, Texas, and Olayinka Agboola, 54, of Chicago, Illinois, with conspiracy to commit money laundering. Johnson is also charged with two counts of conducting financial transactions with illegal proceeds.

The indictment was returned on September 16, 2020, and was unsealed earlier this week. According to allegations in the indictment, Johnson, Barker, and Agboola operated as money mules and conspired to launder at least $575,000 derived from a fraudulent BEC scheme. The indictment alleges that the co-conspirators tricked the United States Department of State and a non-profit agency into wiring proceeds into bank accounts controlled by Johnson. Upon receipt of the fraud proceeds, Johnson, Barker, and Agboola executed financial transactions for the purpose of enriching themselves and their co-conspirators.

Johnson is set to appear in court in Charlotte on October 22, 2020. Barker’s initial appearance has been set for November 9, 2020. Agboola has not been arrested yet.

The money laundering conspiracy charge carries a maximum sentence of 20 years in prison and a $500,000 fine. Johnson faces a maximum sentence of 10 years in prison and a $250,000 fine for each charge of conducting financial transactions with illegal proceeds.

The charges in the indictments are allegations and the defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.

In making today’s announcement, U.S. Attorney Murray thanked the investigating efforts of the U.S. Postal Inspection Service, the FBI, and U.S. Department of State, Office of the Inspector General, which led to the indictments.

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EEOC: Sexual Harassment Compensatory Damage Award After a 7-Year Saga

 

 

Via EEOC Nancey D. v. Dep’t of Justice, EEOC Appeal 2019005600:
Commission Increased AJ’s Compensatory Damage Award to $100,000.
The AJ found that Complainant’s supervisor subjected her to sexual harassment, including instances of unwanted touching, inappropriate comments, and requests for dates and sex.  As relief, the AJ, among other things, awarded Complainant $80,000 in nonpecuniary compensatory damages.  The Commission increased the award to $100,000 on appeal, noting that amount was more consistent with amounts awarded in similar cases.  The record showed that Complainant was diagnosed with PTSD and Severe Depression as a result of her supervisor’s sexual harassment over a three-year period.  Complainant underwent treatment for these conditions including medication and counseling.  Complainant testified that she suffered humiliation, anger, panic attacks, withdrawal, weight fluctuation, migraines, erratic sleeping patterns, and frequent crying spells.   The Commission concurred with the  AJ that the weight of the evidence adequately tied the harm directly to the harassment.  The Commission affirmed the AJ’s award of $2,877 in past pecuniary damages, and $2,500 in future pecuniary damages.  Nancey D. v. Dep’t of Justice, EEOC Appeal 2019005600 (Sept. 14, 2020).
This is a DOJ/Bureau of Prisons sexual harassment case. We are highlighting it here to point out that a 7-year saga awarded a $100,000 in compensation amounts to $39 a day in damages.
That’s $91.32 day for each day in the 3-year period the individual was subjected to harassment by her supervisor.

This case was originally filed on June 21, 2013, when Complainant filed a formal EEO complaint claiming that she was repeatedly harassed on the bases of her race (African-American), sex (female), and in reprisal for prior protected EEO activity when she was subjected to sexual comments, gestures, and emails, as well as rumors of a sexual nature.

On August 7, 2019, the Agency issued a final order fully adopting the AJ’s decision and award of remedies.

On appeal, Complainant, through counsel, requests an increase in the damage awards. Specifically, Complainant requests $34,854.36 in past pecuniary damages (covering past prescriptions and counseling) and $16,000 in future pecuniary damages (covering future counseling sessions). Complainant reasons that her award for past pecuniary and future pecuniary damages should have included the full price for the medical expenses and not limited to the co-payments for the medical expenses. Regarding her request for an increase in non-pecuniary damages, Complainant reasons that the AJ’s $80,000 award should be increased to $100,000 to conform with the Commission’s prior damages decisions at the present-day value. Alternatively, Complainant argues that her nonpecuniary damages award should be increased to $190,000 to compensate for sexual harassment she endured from 1998 to 2010 during the period that she and AW were co-workers. Therefore, Complainant argues that the AJ incorrectly limited her sexual harassment claims to the period that AW was her supervisor and did not account for AW’s sexually-charged conduct that occurred twelve years before 2010.

 

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Grand Jury Indicts FS Employee For”Engaging in Illicit Sexual Conduct” in the Philippines

 

 

Via USDOJ:
U.S. Foreign Service Member Indicted for Engaging in Illicit Sexual Conduct in the Philippines and Possession of Child Pornography

A federal grand jury in the Eastern District of Virginia returned an indictment today charging a member of the U.S. Foreign Service with engaging in illicit sexual conduct in a foreign place and possession of child pornography.

According to the indictment and court documents, Dean Cheves, 61, was a member of the U.S. Foreign Service serving at the U.S. Embassy in the Philippines between September 2020 and February 2021. While in the Philippines, Cheves allegedly met a 16-year-old online. Court documents further detail that Cheves allegedly engaged in sexual activity with the minor on two occasions, knowing the minor’s age, and produced cell phone videos of himself engaging in the sex acts each time. The videos were found on Cheves’s devices seized from his embassy residence while in the Philippines. Between February 2021 and March 2021, he also allegedly possessed child pornography.

Cheves is charged with one count of engaging in illicit sexual conduct in a foreign place and one count of possessing child pornography in the special maritime and territorial jurisdiction of the United States or on lands owned or leased by the United States. Cheves previously made his initial court appearance on July 6 before U.S. Magistrate Judge Ivan D. Davis of the U.S. District Court for the Eastern District of Virginia. If convicted, he faces a maximum penalty of up to 30 years in prison on count one, and up to 10 years in prison on count two. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia made the announcement and Assistant Director for Domestic Operations Mark Sullo of the U.S. Department of State’s Diplomatic Security Service made the announcement.

The State Department, Diplomatic Security Service, is investigating the case.

Trial Attorney Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Lauren Pomerantz Halper of the U.S. Attorney’s Office for the Eastern District of Virginia are prosecuting the case.

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

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

We have not been able to locate Cheves’s congress.gov records. The DOJ statement describes him as a”U.S. Foreign Service Member.”  An archived 2007-2017 version of DipNote noted that he was a Foreign Service Officer and new media strategist with the IIP Office of Innovative Engagement (OIE). A June 2019 issue of State Magazine (PDF) includes a notation that he was the Director of Global Publishing Solutions (GPS) in Manila. GPS, an office under the Bureau of Administration provides design, print, and copier management services to the State Department domestically and overseas. In addition to WashDC, GPS has offices in Manila and Vienna.
The government’s motion filed on July 2 originally requested that records be sealed, noting that “Premature disclosure of the charges against the defendant would jeopardize an ongoing criminal investigation threatening our ability to locate and arrest the defendant. The defendant has ties to the Philippines, where his wife and daughter reside, and to California.”
Cheves was arrested on July 6, 2021 in Alexandria, VA. His offense was  listed as “18 U.S.C § 2423(c): Illicit Sexual Conduct in a Foreign Place.”

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Ex-USG Employee Pleads Guilty: 24 Women, Six Countries, 487 Videos/Images in a 14 Year Crime Spree

 

In October 2020, we blogged about the notorious case involving ex-USG employee Brian Jeffrey Raymond (see Ex-USG Employee Brian Jeffrey Raymond, Called an “Experienced Sexual Predator,” Ordered Removed to D.C. Oct 28. 2020).  We did a follow-up post in March 2021 (USA v. Raymond: Court Issues Protective Order Pertaining to Classified Information). Court records do not identify Raymond’s agency employer, and no agency has claimed him! Public records only say that he was an employee of the U.S. government.
On July 23, USDOJ announced that “a California man pleaded guilty today to sexual abuse and admitted to the abusive sexual contact of numerous women, as well as photographing and recording dozens of nude and partially nude women without their consent during his career as a U.S. government employee.”
According to court records, Raymond accepted a plea deal on May 27, 2021, one day before the plea offer was set to expire.  The plea agreement was entered into court on July 23, 2021. Also on July 23, Raymond waived his right to trial by jury. The USG and Raymond also agreed to a Statement of Offense:

“These facts do not constitute all of the facts known to the parties concerning the charged offense; they are being submitted to demonstrate that sufficient facts exist that the defendant committed the offenses to which he is pleading guilty: Sexual Abuse of AV-7 and AV-9, in violation of 18 U.S.C. § 2242(2), and transportation of obscene material, in violation of 18 U.S.C. § 1462.

Some notable items in the Statement of Offense:

#1. Between on or about August 21, 2018 and June 1, 2020, Raymond, now 45 years old, was a U.S. government employee working at the U.S. Embassy in Mexico City, Mexico. During that time, Raymond lived in an apartment assigned to him by the U.S. government. Raymond’s residence in Mexico City has been leased by the U.S. government since April 2013 for use by U.S. personnel assigned to diplomatic, consular, military, and other U.S. government missions in Mexico City. The U.S. government currently maintains a nine-year lease of the property. This residence falls within the Special Maritime and Territorial Jurisdiction (““SMTJ”) of the United States, pursuant to 18 U.S.C. § 7(9).

2. On May 31, 2020, there was an incident at Raymond’s embassy-leased residence in Mexico City.During an interview with law enforcement on June 2, 2020, Raymond stated that he had sexual intercourse with an adult woman, hereinafter referred to as AV-1, on May 31 and that it was consensual. AV-1 was interviewed and reported that she has no memory of the incident and did not consent to sexual intercourse with Raymond. After the May 31, 2020 incident, law enforcement executed several premises and device search warrants, including but not limited to search warrants for Raymond’s phones, laptops, tablets, thumb drives, and memory cards, Raymond’s Mexico City residence, his parents’ residence in La Mesa, California, Tinder and other social media accounts, email accounts, and his iCloud account.

4, Agents found approximately 487 videos and images of unconscious women in various states of undress on multiple devices belonging to Raymond and in his iCloud account.

6. Through its investigation, law enforcement learned that from 2006 to 2020, while working as a U.S. government employee, Raymond recorded and/or photographed at least 24 unconscious nude or partially nude women (AV-2 through AV-25).

7.  Raymond discussed having sex with AV-7 with a friend via text message the following day.

9. In March 2020, approximately two months before his interaction with AV-7, Raymond also texted the same friend mentioned above about having sexual intercourse with AV-9. AV-9 is a resident of Mexico and primarily a Spanish speaker. He texted the same friend that he had to pay for an Uber for AV-9 and expressed that it was annoying but ultimately worthwhile because he was able to have sex with her. 

Item #11 in the Statement of Offense includes a chart that depicts the victims, the number of photos/videos, locations, dates, and example of the obscene depiction of victims.  In addition to victims AV-7 and AV-9, the list of victims include 18 other individuals. Locations include California, Virginia, Maryland, Washington, D.C., as well as Mexico and “Countries 3, 4, 5, and 6 [are] known to the government and to the defendant.”
Item #14 in the Statement of Offense notes:

“Raymond stipulates and agrees that from 2006 until 2020, including on the dates listed on the chart above, he recorded and/or photographed at least 24 unconscious and nude or partially nude women, some of whom are not mentioned in this plea agreement or statement of facts, and that during the same time frame, he touched the breasts, buttocks, groin area, and/or genitalia of numerous women, some of whom he recorded and/or photographed and some of whom are mentioned in this agreement. Raymond engaged in this conduct while the women were incapable of appraising the nature of the conduct. The women who have been interviewed reported commonalities in their contact with Raymond, including Raymond’s provision and/or preparation of alcoholic beverages and their subsequent memory loss. None of the women consented to being touched while unconscious and/or asleep, and none of them consented to Raymond’s photographing and recording of them in that state.”

The Plea Agreement says:

” …a violation of 18 U.S.C. § 2242(2) carries a maximum sentence of life imprisonment; a fine of $250,000; a term of supervised release of at least 5 years but not more than life, pursuant to 18 U.S.C. § 3583(k); mandatory restitution under 18 U.S.C. § 3663A; and an obligation to pay any applicable interest or penalties on fines and restitution not timely made.

Your client understands that a violation of of 18 U.S.C. § 1462 carries a maximum sentence of five years’ imprisonment; a fine of $250,000; a term of supervised release of at least one year but not more than three years, pursuant to 18 U.S.C. § 3559; restitution under 18 U.S.C.§ 3663; and an obligation to pay any applicable interest or penalties on fines and restitution not timely made.

Your client also understands that the court shall impose mandatory restitution pursuant to 18 U.S.C. § 2248, which restitution amount shall reflect the defendant’s relative role in the causal process that underlies the victims’ losses.”

Under Additional Charges:

“In consideration of your client’s guilty plea to the above offense(s), your client will not be further prosecuted criminally by this Office or the Human Rights and Special Prosecutions Section for the conduct relating to victims AV-1 through AV-26 that is described in the Statement of Offense. This office has consulted with the U.S. Attorney’s Office for the Eastern District of Virginia and understands that it will also not bring charges for that conduct. Additionally, if your client’s guilty plea to Counts One, Two, and Three of the Information is accepted by the Court, and provided the plea is not later withdrawn, no charges related to the inducement and/or transportation of AV-15 or the transportation of obscene material will be brought against the defendant by the United States Attorney’s Office for the District of Maryland.

Moreover, provided the plea is accepted and not later withdrawn to Counts One, Two, and Three, no charges relating to the inducement of AV-2 or the transportation of obscene material will be brought by the United States Attorney’s Office for the Southern District of California, and no charges relating to the inducement of AV-17 or the transportation of obscene material will be brought by the Northern District of Illinois. This agreement does not preclude any U.S. Attorney’s Office for bringing charges against your client for criminal conduct that is distinct from that set forth in the Statement of Facts. For example, if the investigation later revealed that your client had been engaged in sexual activity with a minor and/or involved in commercial sex acts or money laundering, this agreement would not preclude a prosecution for those crimes.”

Under Restitution:

“Your client understands that the Court has an obligation to determine whether, and in what amount, mandatory restitution applies in this case under 18 U.S.C. § 3663A and 18 U.S.C. § 2248 at the time of sentencing.

The Court shall order restitution to every identifiable victim of your client’s offenses. Your client agrees to pay restitution in the amount of $10,000 per victim to AV-1 through AV- 26, provided they are identified at or before the time of sentencing. Furthermore, your client
agrees that, for purposes of this plea, AV-1 through AV-26 are all victims of the offense and are entitled to the same rights as victims so designated under the Crime Victims’ Rights Act (“CVRA”), to include the right to be reasonably heard at the sentencing hearing and the right to full and timely restitution. See 18 U.S.C. § 3771. By agreeing to this, your client is not acknowledging that each of these victims would be a victim of a federal offense, nor is your client agreeing that these victims would be so designated should this case go to trial. Similarly,
by agreeing to the terms of this plea, the Government does not concede that federal offenses do not exist for these victims, nor does it concede that the victims would not be victims under the CVRA should this case go to trial. In addition, your client agrees to pay restitution to any other victim that he recorded/photographed nude while that victim was unconscious, provided that victim is identified at or before the time of sentencing, and further agrees that they are crime victims in this case and entitled to the rights as victims so designated under the CVRA. Your client understands that these victims still maintain a right to request a larger amount of restitution from the Court, and that the agreed upon payment to each victim is the minimum amount due.”

The Plea Agreement includes a sex offender registration requirement for the remainder of Raymond’s life “…. client is required to register as a sex offender for the remainder of his life, and to keep the registration current in jurisdictions where your client resides, where your client is employed and where your client is a student.”
The Plea Agreement notes that the Government’s proposed estimated Sentencing Guidelines range is 262-327 months (the “Estimated Guidelines Range’). The Defendant’s proposed estimated Sentencing Guidelines range is 135-168 months.  So potentially anywhere between 11 years and 27 years.
A similar case to this in 2011 involved Andrew Warren, 43, a former official with the Central Intelligence Agency (CIA).  That case involved charges of abusive sexual contact and unlawful use of cocaine while possessing a firearm. The sexual assault occurred at a US Embassy property in Algeria, and involved one victim. Warren was sentenced to 65 months in prison and 10 years of supervised release following his prison term (see Former CIA Station Chief to Algeria Gets 65 Months for Sexual Assault on Embassy Property).
Via USDOJ: If you believe you have been a victim, have information about Raymond or know of someone who may have information about Raymond, the FBI requests that you fill out this secure, online questionnaire, email FBI at ReportingBJR@fbi.gov or call 1-800-CALL-FBI.

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Charges Unsealed Against Former Chadian Ambassador and DCM to U.S. For Bribery and Money Laundering Scheme

13 Going on 14 — GFM: https://gofund.me/32671a27

 

On May 24, the Justice Department unsealed charges against two diplomats from Chad who were previously assigned to WashDC and Canada for international bribery and money laundering scheme.
Excerpt from DOJ’s announcement:

An indictment returned by a federal grand jury in Washington, D.C. was unsealed on May 20, 2021, charging the Republic of Chad’s former Ambassador to the United States and Canada and Chad’s former Deputy Chief of Mission for the United States and Canada with soliciting and accepting a $2 million bribe from a Canadian start-up energy company, and conspiring to launder the bribe payment in order to conceal its true nature.

According to court documents, Mahamoud Adam Bechir and Youssouf Hamid Takane engaged in this scheme between August 2009 and July 2014, while serving as diplomats based out of the Embassy of Chad located in Washington, D.C. According to the indictment, Bechir and Takane demanded the bribe from the Canadian start-up energy company in exchange for a promise to misuse their official positions and their influence with the government of Chad to assist the start-up energy company in obtaining oil rights in Chad. Naeem Tyab, a citizen of Canada and founding shareholder of the start-up energy company, who served as a director of the company from 2009 through 2011, is also charged in the indictment for allegedly arranging for the bribe to be paid to Bechir’s wife, co-defendant Nouracham Bechir Niam, via a sham contract for consulting services that she never actually provided. In addition to the $2 million bribe payment, the start-up energy company also issued shares in the company to Niam, to Takane’s wife, and to a third Chadian individual, as part of the bribe, according to the indictment.
[…]
All four defendants are charged with conspiracy to commit money laundering, and Bechir, Takane, and Niam are also charged with money laundering, each of which carries a maximum potential penalty of 20 years in prison. Niam and Tyab are also charged with conspiracy to violate the FCPA, which carries a maximum potential penalty of five years in prison. The indictment in this case was returned by the grand jury in February 2019. Tyab was arrested in the Southern District of New York on Feb. 9, 2019, and subsequently, on April 30, 2019, he entered a guilty plea to one count of conspiracy to violate the FCPA. As part of his guilty plea, Tyab agreed to forfeit criminal proceeds of approximately $27 million. The Honorable Richard J. Leon will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The remaining three defendants remain at large.
[…]
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

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

Read here in full.

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