U.S. Citizens And Russian Intelligence Officers Charged With Conspiring To Use U.S. Citizens As Illegal Agents of the Russian Government

 The U.S. Justice Department released the below information:

A federal grand jury in Tampa, Florida, returned a superseding indictment charging four U.S. citizens and three Russian nationals with working on behalf of the Russian government and in conjunction with the Russian Federal Security Service (FSB) to conduct a multi-year foreign malign influence campaign in the United States. Among other conduct, the superseding indictment alleges that the Russian defendants recruited, funded and directed U.S. political groups to act as unregistered illegal agents of the Russian government and sow discord and spread pro-Russian propaganda; the indicted intelligence officers, in particular, participated in covertly funding and directing candidates for local office within the United States.

Additionally, in a separate case out of the District of Columbia, a criminal complaint was unsealed charging Russian national Natalia Burlinova with conspiring with an FSB officer to act as an illegal agent of Russia in the United States.

“Russia’s foreign intelligence service allegedly weaponized our First Amendment rights – freedoms Russia denies its own citizens – to divide Americans and interfere in elections in the United States,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The department will not hesitate to expose and prosecute those who sow discord and corrupt U.S. elections in service of hostile foreign interests, regardless of whether the culprits are U.S. citizens or foreign individuals abroad.”

“Efforts by the Russian government to secretly influence U.S. elections will not be tolerated,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As today’s announcement demonstrates, the Criminal Division is committed to eradicating foreign malign influence from the U.S. political system and helping ensure the integrity of our elections.”

“Today’s announcement paints a harrowing picture of Russian government actions and the lengths to which the FSB will go to interfere with our elections, sow discord in our nation and ultimately recruit U.S citizens to their efforts,” said Acting Assistant Director Kurt Ronnow of the FBI’s Counterintelligence Division. “All Americans should be deeply concerned by the tactics employed by the FSB and remain vigilant to any attempt to undermine our democracy. The FBI remains committed to confronting this egregious behavior and ultimately disrupting our adversaries and those who act on their behalf.”

United States v. Ionov, et al.

According to the superseding indictment returned in the Middle District of Florida, Aleksandr Viktorovich Ionov, a resident of Moscow, was the founder and president of the Anti-Globalization Movement of Russia (AGMR), an organization headquartered in Moscow, Russia, and funded by the Russian government. Ionov allegedly utilized AGMR to carry out Russia’s malign influence campaign. Ionov’s influence efforts were allegedly directed and supervised by Moscow-based FSB officers, including indicted defendants Aleksey Borisovich Sukhodolov and Yegor Sergeyevich Popov.

“The prosecution of this criminal conduct is essential to protecting the American public when foreign governments seek to inject themselves into the American political process,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We thank our partners at the FBI for their tireless investigation of these events and their commitment to ensure justice is done.”

Among other illegal activities, the superseding indictment alleges that Ionov, Sukhodolov and Popov conspired to directly and substantially influence democratic elections in the United States by clandestinely funding and directing the political campaign of a particular candidate for local office in St. Petersburg, Florida, in 2019. For instance, the superseding indictment alleges that Popov expressly referred to this effort on behalf of the FSB as “our election campaign,” and Ionov referring to the candidate as the “candidate whom we supervise.” Ionov and Popov allegedly intended that this election interference plot would extend beyond the 2019 local election cycle in St. Petersburg, and subsequently discussed that the “USA Presidential election” was the FSB’s “main topic of the year.”

Moreover, from at least November 2014 until July 2022, Ionov allegedly engaged in a years-long foreign malign influence campaign targeting the United States. As a part of the campaign, Ionov allegedly recruited members of political groups within the United States, including the African People’s Socialist Party and the Uhuru Movement (collectively, the APSP) in Florida, Black Hammer in Georgia and a political group in California (referred to in the superseding indictment as U.S. Political Group 3), to participate in the influence campaign and act as agents of Russia in the United States, including the following indicted defendants:

• Omali Yeshitela, a U.S. citizen residing in St. Petersburg, Florida, and St. Louis, Missouri, who served as the chairman and founder of the APSP;
• Penny Joanne Hess, a U.S. citizen residing in St. Petersburg, Florida, and St. Louis, Missouri, who served as the leader of a component of the APSP;
• Jesse Nevel, a U.S. citizen residing in St. Petersburg, Florida, and St. Louis, Missouri, who served as a member of a component of the APSP; and
• Augustus C. Romain Jr., aka Gazi Kodzo, a U.S. citizen residing in St. Petersburg, Florida, and Atlanta, who served as a leader of the APSP and a founder of Black Hammer in Georgia.

One focus of Ionov’s alleged influence operation was to create the appearance of American popular support for Russia’s annexation of territories in Ukraine. For example, in May 2020, Ionov allegedly sent a request he stated was from “Russia, the Donetsk People’s Republic” – an apparent reference to a Russian-occupied region in eastern Ukraine – to Yeshitela and members of other U.S. political groups to make statements in support of the independence of the so-called Donetsk People’s Republic, a Russian-backed breakaway state in eastern Ukraine. Ionov later allegedly touted to the FSB that Yeshitela’s video-recorded statement of support was the first time that “American nonprofit organizations congratulated citizens” of the occupied region.

Ionov’s use of the APSP to promote Russian propaganda relating to Ukraine allegedly continued after Russia’s invasion of Ukraine. On the day Russia invaded Ukraine, Feb. 24, 2022, Ionov allegedly emailed Nevel an “URGENT MESSAGE” which contained pro-Russian talking points in support of the invasion. Thereafter, throughout March 2022, the APSP repeatedly hosted Ionov via video conference to discuss the war, during which Ionov falsely stated that anyone who supported Ukraine also supported Naziism and white supremacy, and Yeshitela and another APSP member allegedly made statements of solidarity with the Russian government.

Ionov, Sukhodolov, Popov, Yeshitela, Hess, Nevel and Romain are charged with conspiring to have U.S. citizens act as illegal agents of the Russian government within the United States without providing prior notification to the Attorney General, as required by law. If convicted, they each face a maximum penalty of five years in prison. Yeshitela, Hess and Nevel are also charged with acting as agents of Russia within the United States without such prior notification. If convicted, they each face a maximum penalty of 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant U.S. Attorneys Daniel J. Marcet and Risha Asokan for the Middle District of Florida, Trial Attorney Menno Goedman of the Justice Department’s Counterintelligence and Export Control Section, and Trial Attorney Demetrius Sumner of the Criminal Division’s Public Integrity Section are prosecuting the case.

United States v. Burlinova

According to the affidavit in support of the criminal complaint unsealed in the District of Columbia, Russian national Natalia Burlinova, a resident of Moscow, conspired with an FSB officer to recruit U.S. citizens from academic and research institutions to travel to Russia to participate in a public diplomacy program called Meeting Russia. The program was operated by PICREADI, a Russian organization led by Burlinova, funded by the Russian government and devoted to promoting Russian national interests.

“The defendant is accused of subverting our foreign agent notification laws to promote Russian national interests here in the United States, concealing from the public that her recruitment efforts were funded by a Russian security service,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to expose these serious crimes and hold all who perpetrate them accountable.”

The affidavit alleges that the FSB officer provided funding and other support for Burlinova’s foreign recruitment and her efforts to advance Russian interests in the United States. In return, Burlinova provided the FSB officer with extensive information about U.S. citizens who were recruited to attend her programs, including their résumés, passport information, photographs and analyses of their views toward Russia. Burlinova further identified for the FSB officer particular U.S. citizens who, in Burlinova’s view, had expressed positive attitudes towards Russia and were prepared to continue to collaborate. During a recruitment trip to the United States in fall 2018, Burlinova met with U.S. citizens at various universities and research institutions and provided to photographs of her meetings to the FSB officer. The FSB officer used the information Burlinova provided prepare FSB intelligence reports. Burlinova never notified the Attorney General of these efforts or otherwise disclosed to the public that her recruitment efforts were supported and funded by a Russian security service.

Assistant U.S. Attorney Michael J. Friedman for the District of Columbia and Trial Attorney Emma D. Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

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

$300 Million Yacht Of Sanctioned Russian Oligarch Suleiman Kerimov Seized By Fiji At Request Of United States

 The U.S. Justice Department released the below information:

Fijian law enforcement executed a seizure warrant freezing the Motor Yacht Amadea (the Amadea), a 348-foot luxury vessel owned by sanctioned Russian oligarch Suleiman Kerimov. Fijian law enforcement, with the support and assistance of the FBI, acted pursuant to a mutual legal assistance request from the U.S. Department of Justice following issuance of a seizure warrant from the U.S. District Court for the District of Columbia, which found that the Amadea is subject to forfeiture based on probable cause of violations of U.S. law, including the International Emergency Economic Powers Act (IEEPA), money laundering and conspiracy.

The U.S. Treasury Department’s Office of Foreign Assets Control designated Kerimov as part of a group of Russian oligarchs who profit from the Russian government through corruption and its malign activity around the globe, including the occupation of Crimea. In sanctioning Kerimov, the Treasury Department also cited Kerimov as an official of the Government of the Russian Federation and a member of the Russian Federation Counsel.

According to court documents, Kerimov owned the Amadea after his designation. Additionally, Kerimov and those acting on his behalf and for his benefit caused U.S. dollar transactions to be routed through U.S. financial institutions for the support and maintenance of the Amadea.

“This ruling should make clear that there is no hiding place for the assets of individuals who violate U.S. laws. And there is no hiding place for the assets of criminals who enable the Russian regime,” said Attorney General Merrick B. Garland. “The Justice Department will be relentless in our efforts to hold accountable those who facilitate the death and destruction we are witnessing in Ukraine.”

“Last month, I warned that the department had its eyes on every yacht purchased with dirty money,” said Deputy Attorney General Lisa O. Monaco. “This yacht seizure should tell every corrupt Russian oligarch that they cannot hide – not even in the remotest part of the world. We will use every means of enforcing the sanctions imposed in response to Russia’s unprovoked and unjustified war in Ukraine.”

“This seizure demonstrates the FBI's persistence in pursuing sanctioned Russian oligarchs attempting to evade accountability for their role in jeopardizing our national security,” said FBI Director Christopher Wray. “The FBI, along with our international partners, will continue to seek out those individuals who contribute to the advancement of Russia’s malign activities and ensure they are brought to justice, regardless of where, or how, they attempt to hide.”

“This seizure of Suleiman Kerimov’s vessel, the Amadea, nearly 8,000 miles from Washington, D.C., symbolizes the reach of the Department of Justice as we continue to work with our global partners to disrupt the sense of impunity of those who have supported corruption and the suffering of so many,” said Director Andrew Adams of Task Force KleptoCapture. “This Task Force will continue to bring to bear every resource available in this unprecedented, multinational series of enforcement actions against the Russian regime and its enablers.”

“The U.S. Marshals Service will continue to contribute our expertise in support of Task Force efforts to take possession of seized assets of Russian oligarchs during these forfeiture operations,” said Director Ronald L. Davis of the U.S. Marshals Service. 

The seizure was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

Upon receipt of a mutual legal assistance request from the United States, Fijian authorities executed the request, obtaining a domestic seizure warrant from a Fijian court.

The Amadea, International Maritime Organization number 1012531, is believed to be worth approximately $300 million or more. The yacht is now in Lautoka, Fiji.

This matter is being investigated by the FBI’s New York Field Office with assistance from the FBI Legal Attaché Office in Canberra, Australia, the Department of State’s Diplomatic Security Service, and the U.S. Embassy in Suva, Fiji.

Trial Attorney Andrew D. Beaty of the National Security Division’s Counterintelligence and Export Control Section and Trial Attorney Joshua L. Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section are handling the seizure. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the District of Columbia, Customs and Border Protection, and the U.S. Marshals Service provided significant assistance. The United States thanks the Fijian authorities for their cooperation in this matter.

Four Members And Two Associates Of The Genovese Organized Crime Family Charged With Racketeering

The U.S. Justice Department released the below information:

Damian Williams, the United States Attorney for the Southern District of New York, Letitia James, New York State Attorney General, and Eric Gonzalez, Brooklyn District Attorney, announced today the unsealing of a Superseding Indictment charging four members and two associates of the Genovese Organized Crime Family with racketeering. 

The Superseding Indictment charges NICHOLAS CALISI and RALPH BALSAMO, alleged Captains in the Family, MICHAEL MESSINA and JOHN CAMPANELLA, alleged Soldiers in the Family, and MICHAEL POLI and THOMAS POLI, alleged associates of the Family, with racketeering conspiracy involving illegal gambling and extortion.

MESSINA was previously arrested and presented before U.S. Magistrate Judge Ona T. Wang on April 12, 2022.  BALSAMO, CAMPANELLA, MICHAEL POLI, and THOMAS POLI were arrested today and will be presented in Manhattan federal court before U.S. Magistrate Judge Robert W. Lehrburger this afternoon.  CALISI was arrested in Boca Raton, Florida and presented before a U.S. Magistrate Judge in the Southern District of Florida.  The case is assigned to United States District Judge John G. Koeltl.

U.S. Attorney Damian Williams said:  “From extortion to illegal gambling, the Mafia continues to find ways to prey on others to fill its coffers.  Our office and our law enforcement partners remain committed to putting organized crime out of business.”

New York State Attorney General Letitia James said:  “For years, members of the Genovese crime family have terrorized New York communities with violence and illegal businesses. These individuals allegedly made their money through illegal gambling and loan sharking — saddling victims with incredible debt that they cannot repay. Today’s indictment makes clear that we will continue to root out organized crime wherever it exists, and I thank U.S. Attorney Damian Williams and Brooklyn District Attorney Eric Gonzalez for their partnership in taking down these criminal enterprises.”

Brooklyn District Attorney Eric Gonzalez said:  “Organized crime, and the illegal conduct that flows from its activities, remain a problem in Brooklyn and beyond. My Office is committed to continue working together with our law enforcement partners to investigate these criminal organizations, as we’ve done in this case. I thank the United States Attorney for the Southern District of New York and the New York State Office of the Attorney General for their partnership and cooperation.”

According to the allegations in the Superseding Indictment, which was unsealed today[1]:

The Genovese Organized Crime Family is part of a nationwide criminal organization known by various names, including La Cosa Nostra (“LCN”) and the “Mafia,” which operates through entities known as “Families.” 

Like other LCN Families, the Genovese Organized Crime Family operates through groups of individuals known as “crews”.  Each “crew” has as its leader a person known as a “Captain” and consists of “made” members, known as “Soldiers.”  Soldiers are aided in their criminal endeavors by other trusted individuals, known as “associates,” who sometimes are referred to as “connected” or identified as “with” a Soldier or other member of the Family.  Associates participate in the various activities of the crew and its members.  In order for an associate to become a made member of the Family, the associate typically needs to demonstrate the ability to generate income for the Family, and/or that the associate is capable of committing acts of violence.

A Captain is responsible for supervising the criminal activities of his crew, resolving disputes between and among members of the Family, resolving disputes between members of the Family and members of other Families and other criminal organizations, and providing Soldiers and associates with support and protection.  In return, the Captain typically receives a share of the illegal earnings of each of his crew’s Soldiers and associates.

At times relevant to the charges in the Superseding Indictment, NICHOLAS CALISI and RALPH BALSAMO were Captains in the Genovese Family, MICHAEL MESSINA and JOHN CAMPANELLA were Soldiers in the Genovese Family, and MICHAEL POLI and THOMAS POLI were associates of the Genovese Family.

Members of the Genovese Family, including CALISI, BALSAMO, MESSINA, CAMPANELLA, MICHAEL POLLI, and THOMAS POLLI, engaged in or agreed that others would engage in certain crimes, including making extortionate extensions of credit, financing extortionate extensions of credit, collecting extensions of credit by extortion, extortion, operating illegal gambling businesses, and transmission of gambling information.

*          *          *

A chart containing the ages, residency information, and charges against the defendants, as well as the maximum penalties they face is attached.  The maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the Office of the New York Attorney General’s Organized Crime Task Force and the Kings County District Attorney’s Office and thanked the Federal Bureau of Investigation for its assistance in this investigation.

Assistant U.S. Attorneys Celia V. Cohen, Rushmi Bhaskaran, and Justin Rodriguez, as well as Special Assistant U.S. Attorney Pamela Murray, are in charge of the prosecution.  The case is being handled by the Office’s Violent and Organized Crime Unit.

The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

Former U.S. Military Pilot Charged With Making False Statements On National Security Background Forms Regarding Foreign Contacts

 The U.S. Justice Department released the below information:

SAN DIEGO – A former U.S. Army helicopter pilot-turned-civilian-contractor appeared in federal court in San Diego yesterday to face charges that when he was required to make disclosures during national security background checks, he failed to disclose that he repeatedly met with - and received cash payments from - a Chinese national linked to intelligence services.

Shapour Moinian, 66 years of age from Mira Mesa, worked for many years for various defense contractors and also as a civilian contractor for the U.S. Navy and was subjected to multiple national security background checks. According to a complaint and disclosures made at his initial appearance and bond hearing, Moinian made false statements on these questionnaires, asserting repeatedly that he did not have any contact with foreign nationals.

In 2017, Moinian was communicating with a Chinese National, who posed as a recruiter on a job-services platform in a manner that both Germany and France have publicly identified as a technique used by Chinese intelligence services. Thereafter, Moinian traveled to China where in March 2017, while working at a cleared defense contractor on various projects, including a high-altitude, unmanned surveillance aircraft used by the U.S. Military and various allies. Upon returning, Moinian continued to communicate with his Chinese contact and update her on the progress of his work for her. In September 2017, Moinian again traveled overseas and met with his Chinese contact. Following this meeting, Moinian used a relative’s South Korean bank account to receive payment from his Chinese contact, which he then had wired to him in the United States.

In 2017, in the midst of his communications, visits, and working for his Chinese contact, Moinian completed a Questionnaire for National Security Background Investigations, where it is alleged he made knowingly and willfully materially false, fraudulent, and fictitious statements and representations, when he stated that he had not had close or continuing contact with a foreign national and had not been asked to work as a consultant, or consider employment by a foreign national, within the past seven years.

In 2018 after returning from another overseas meeting with his Chinese contact and her associates, where he received a cash payment, Moinian conducted searches using an internet search engine for sabotage, espionage, spying, and selling military information to a foreign country. In June 2019, Moinian requested a $20,000 payment from his Chinese contact, telling her that it was for a friend. In August of that year, Moinian traveled overseas to meet with his Chinese contact and others, where he received a large cash payment.

In 2020, when completing another Questionnaire for National Security Background Investigations, it is alleged Moinian made knowingly and willfully materially false, fraudulent, and fictitious statements and representations, when he reaffirmed that he had not had close or continuing contact with a foreign national and had not been asked to work as a consultant, or consider employment by a foreign national, within the past seven years.

Moinian, a former helicopter pilot for the U.S. Army, continued his work for various defense contractors while communicating and meeting with his Chinese contact and her associates, who provided him with cash payments that he smuggled back into the United States. These meetings, and payments, occurred in multiple overseas locations, including Hong Kong, Macau, Bali, and Taiwan. In addition to cash payments at these meetings, Moinian also received at least one other payment from his Chinese contact that he funneled through his relative’s South Korean bank account.

At the time of his arrest on October 1, 2021, Moinian was working for another cleared defense contractor and was slated to relocate to South Korea to work on a military aircraft being produced for that country. When he was arrested, Moinian had already provided many of his belongings to a company to transport to South Korea, and given notice that he was vacating his apartment the following week. Although these charges have been filed, the investigation is continuing by both the FBI and NCIS.

“The complaint alleges a disturbing failure to reveal information highly relevant to the background clearance process,” stated Acting United States Randy Grossman.  “This office is committed to ensuring that individuals in sensitive national security positions are worthy of the trust placed in them.”  Grossman commended the work of AUSA Fred Sheppard, DOJ’s National Security Division and the FBI and NCIS agents who diligently pursued this matter.

“This case serves as a stark reminder of the social media exploitation strategies Chinese intelligence agencies will utilize to target, recruit, and maintain contact with valuable foreign assets,” said FBI Special Agent in Charge Suzanne Turner. “Let this arrest serve as a deterrent to those who may consider hiding their foreign contacts in the hopes they can live a double-life and not get caught.”

“Mr. Moinian’s alleged false statements on security background forms about his contact with foreign nationals posed a significant threat to our national security,” said Special Agent in Charge Michelle Kramer of the NCIS Office of Special Projects. “This arrest should serve as a warning that NCIS and our law enforcement partners remain committed to rooting out any and all criminal attempts to compromise our nation’s national security interests. We sincerely thank our partners for their substantial efforts during this investigation to preserve U.S. warfighter superiority.”

This case was investigated by the Federal Bureau of Investigation and the Naval Criminal Investigative Service, and is being prosecuted by the U.S. Attorney’s Office for the Southern District of California and the Department of Justice’s National Security Division.

DEFENDANTS                                         Case Number             21MJ3884

Shapour Moinian                                       Age: 66                      San Diego

SUMMARY OF CHARGES

Title 18, United States Code, Section 1001 (Materially false, fictitious, or fraudulent statement or representation)

Maximum penalty: Fine and prison term of up to five years.

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Naval Criminal Investigative Service

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty. 

 

Former Intelligence Analyst Sentenced To 45 Months In Prison For Disclosing Classified Information To Reporter

 The U.S. Justice Department released the below information: 

A Tennessee man was sentenced today to 45 months in prison followed by three years of supervised release for illegally obtaining classified national defense information and disclosing it to a reporter. 

According to court documents, Daniel Everette Hale, 33, of Nashville, began communicating with a reporter beginning in April 2013 while enlisted in the U.S. Air Force and assigned to the National Security Agency (NSA). Hale admitted to meeting with the reporter in person on multiple occasions and communicating with the reporter via phone, text message, email and, at times, an encrypted messaging platform. 

In February 2014, while working as a cleared defense contractor at the National Geospatial-Intelligence Agency (NGA), Hale printed six classified documents unrelated to his work at NGA and soon after exchanged a series of messages with the reporter. Each of the six documents printed were later published by the reporter’s news outlet. 

According to court records, while employed as a cleared defense contractor for NGA, Hale printed 36 documents from his Top Secret computer, including 23 documents unrelated to his work at NGA. Of the 23 documents unrelated to his work at NGA, Hale provided at least 17 to the reporter and/or the reporter’s online news outlet, which published the documents in whole or in part. Eleven of the published documents were marked as Top Secret or Secret. 

According to court records, in August 2014, Hale’s cell phone contact list included contact information for the reporter. He also possessed a thumb drive that contained a page marked “SECRET” from a classified document that Hale had printed in February 2014 and had attempted to delete from the thumb drive. In addition, Hale possessed on his home computer another document that he had stolen from NGA. 

Hale pleaded guilty to retention and transmission of national defense information on March 31.

Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division made the announcement. 

The FBI’s Baltimore Field Office investigated the case. 

Assistant U.S. Attorneys Gordon D. Kromberg and Alexander P. Berrang for the Eastern District of Virginia and Senior Trial Attorney Heather M. Schmidt of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

Electrical Engineer Sentenced To More Than Five Years In Prison For Conspiring To Illegally Export To China Semiconductor Chips With Military Uses

The U.S. Justice Department released the below information: 

A California man was sentenced today to 63 months, or more than five years, in prison for his role in a scheme to illegally export integrated circuits with military applications to China the required filing of electronic export information. As part of his sentence, the Judge ordered Shih to pay $362,698 in restitution to the IRS and fined him $300,000. 

Yi-Chi Shih, 66, of Hollywood Hills, was convicted on July 2, 2019, to one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR). Shih also was convicted of four counts of mail fraud, two counts of wire fraud, one count of conspiracy to gain unauthorized access to a protected computer to obtain information, one count of making false statements to an FBI agent, three counts of subscribing to a false tax return, and four counts of making false statements to the IRS about his foreign assets. 

According to court documents, Shih defrauded a U.S. company that manufactured broadband, high-powered semiconductor chips known as monolithic microwave integrated circuits (MMICs) out of its confidential and proprietary business information that was part of its MMIC manufacturing services, according to trial evidence. 

As part of the scheme, Shih accessed the victim company’s web portal after obtaining that access through an associate who posed as a domestic customer seeking to obtain custom-designed MMICs that would be used solely in the United States. In this way, Shih concealed his true intent to export the U.S. company’s MMICs to the People’s Republic of China. 

The victim company’s semiconductor chips have several commercial and military applications. MMICs are used in missiles, missile guidance systems, fighter jets, electronic warfare, electronic warfare countermeasures and radar applications. The MMICs Shih exported to China were intended for AVIC 607, a state-owned entity in the PRC. 

Shih was the President of Chengdu GaStone Technology Company (CGTC), a Chinese company that was building a MMIC manufacturing facility in Chengdu. In 2014, CGTC was placed on the Commerce Department’s Entity List, according to court documents, “due to its involvement in activities contrary to the national security and foreign policy interest of the United States – specifically, that it had been involved in the illicit procurement of commodities and items for unauthorized military end use in China.” 

Shih used a Hollywood Hills-based company he controlled – Pullman Lane Productions, LLC – to funnel funds provided by Chinese entities to finance the manufacturing of the MMICs by the victim company. Pullman Lane received financing from a Beijing-based company that was placed on the Entity List the same day as CGTC “on the basis of its involvement in activities contrary to the national security and foreign policy interests of the United States,” according to court documents. 

Shih’s associate, Kiet Mai, pleaded guilty in December 2018 to one felony count of smuggling and was sentenced to 18 months’ probation and a $5,000 fine.

Acting Assistant Attorney General Mark Lesko of the Justice Department’s National Security Division and Acting U.S. Attorney Tracy Wilkison for the Central District of California made the announcement. 

The FBI, the U.S. Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement, and IRS Criminal Investigation investigated the case, with valuable assistance provided by the Royal Canadian Mounted Police. 

Assistant U.S. Attorneys Judith A. Heinz, Melanie Sartoris, Khaldoun Shobaki, William M. Rollins, James C. Hughes and Daniel G. Boyle of the Central District of California prosecuted the case with assistance from Elizabeth Cannon, Deputy Chief of the National Security Division’s Counterintelligence and Export Control Section.

Four Chinese Nationals Working With The Ministry Of State Security Charged With Global Computer Intrusion Campaign Targeting Intellectual Property And Confidential Business Information, Including Infectious Disease Research

 The U.S. Justice Department released the below information: 

A federal grand jury in San Diego, California, returned an indictment in May charging four nationals and residents of the People’s Republic of China with a campaign to hack into the computer systems of dozens of victim companies, universities and government entities in the United States and abroad between 2011 and 2018. The indictment, which was unsealed on Friday, alleges that much of the conspiracy’s theft was focused on information that was of significant economic benefit to China’s companies and commercial sectors, including information that would allow the circumvention of lengthy and resource-intensive research and development processes. The defendants and their Hainan State Security Department (HSSD) conspirators sought to obfuscate the Chinese government’s role in such theft by establishing a front company, Hainan Xiandun Technology Development Co., Ltd. (海南仙盾) (Hainan Xiandun), since disbanded, to operate out of Haikou, Hainan Province. 

The two-count indictment alleges that Ding Xiaoyang (丁晓阳), Cheng Qingmin (程庆民) and Zhu Yunmin (朱允敏), were HSSD officers responsible for coordinating, facilitating and managing computer hackers and linguists at Hainan Xiandun and other MSS front companies to conduct hacking for the benefit of China and its state-owned and sponsored instrumentalities. The indictment alleges that Wu Shurong (吴淑荣) was a computer hacker who, as part of his job duties at Hainan Xiandun, created malware, hacked into computer systems operated by foreign governments, companies and universities, and supervised other Hainan Xiandun hackers. 

The conspiracy’s hacking campaign targeted victims in the United States, Austria, Cambodia, Canada, Germany, Indonesia, Malaysia, Norway, Saudi Arabia, South Africa, Switzerland and the United Kingdom. Targeted industries included, among others, aviation, defense, education, government, health care, biopharmaceutical and maritime. Stolen trade secrets and confidential business information included, among other things, sensitive technologies used for submersibles and autonomous vehicles, specialty chemical formulas, commercial aircraft servicing, proprietary genetic-sequencing technology and data, and foreign information to support China’s efforts to secure contracts for state-owned enterprises within the targeted country (e.g., large-scale high-speed railway development projects). At research institutes and universities, the conspiracy targeted infectious-disease research related to Ebola, MERS, HIV/AIDS, Marburg and tularemia. 

As alleged, the charged MSS officers coordinated with staff and professors at various universities in Hainan and elsewhere in China to further the conspiracy’s goals. Not only did such universities assist the MSS in identifying and recruiting hackers and linguists to penetrate and steal from the computer networks of targeted entities, including peers at many foreign universities, but personnel at one identified Hainan-based university also helped support and manage Hainan Xiandun as a front company, including through payroll, benefits and a mailing address. 

“These criminal charges once again highlight that China continues to use cyber-enabled attacks to steal what other countries make, in flagrant disregard of its bilateral and multilateral commitments,” said Deputy Attorney General Lisa O. Monaco. “The breadth and duration of China’s hacking campaigns, including these efforts targeting a dozen countries across sectors ranging from healthcare and biomedical research to aviation and defense, remind us that no country or industry is safe. Today’s international condemnation shows that the world wants fair rules, where countries invest in innovation, not theft.” 

“The FBI, alongside our federal and international partners, remains committed to imposing risk and consequences on these malicious cyber actors here in the U.S. and abroad,” said Deputy Director Paul M. Abbate of the FBI. “We will not allow the Chinese government to continue to use these tactics to obtain unfair economic advantage for its companies and commercial sectors through criminal intrusion and theft. With these types of actions, the Chinese government continues to undercut its own claims of being a trusted and effective partner in the international community.” 

“This indictment alleges a worldwide hacking and economic espionage campaign led by the government of China,” said Acting U.S. Attorney Randy Grossman for the Southern District of California. “The defendants include foreign intelligence officials who orchestrated the alleged offenses, and the indictment demonstrates how China’s government made a deliberate choice to cheat and steal instead of innovate. These offenses threaten our economy and national security, and this prosecution reflects the Department of Justice’s commitment and ability to hold individuals and nations accountable for stealing the ideas and intellectual achievements of our nation’s best and brightest people.” 

You can read the rest of the piece via the below link:

Four Chinese Nationals Working with the Ministry of State Security Charged with Global Computer Intrusion Campaign Targeting Intellectual Property and Confidential Business Information, Including Infectious Disease Research | OPA | Department of Justice 

Latvian National Charged For Alleged Role In Transnational Cybercrime Organization

 The U.S. Justice Department released the below information: 

A Latvian national was arraigned in federal court in Cleveland, Ohio, today on multiple charges stemming from her alleged role in a transnational cybercrime organization responsible for creating and deploying a computer banking trojan and ransomware suite of malware known as “Trickbot.”  

Alla Witte, aka Max, 55, is charged in 19 counts of a 47-count indictment, which accuses her of participating in a criminal organization referred to as the “Trickbot Group,” which deployed the Trickbot malware. The Trickbot Group operated in Russia, Belarus, Ukraine, and Suriname, and primarily targeted victim computers belonging to businesses, entities, and individuals, including those in the Northern District of Ohio and elsewhere in the United States. Targets included hospitals, schools, public utilities, and governments. Witte, who previously resided in Paramaribo, Suriname, was arrested on Feb. 6, in Miami, Florida. 

“This indictment demonstrates the broad reach of the Department of Justice’s Ransomware and Digital Extortion Task Force,” said Deputy Attorney General Lisa O. Monaco. “Trickbot infected millions of victim computers worldwide and was used to harvest banking credentials and deliver ransomware. The defendant is accused of working with others in the transnational criminal organization to develop and deploy a digital suite of malware tools used to target businesses and individuals all over the world for theft and ransom. These charges serve as a warning to would-be cybercriminals that the Department of Justice, through the Ransomware and Digital Extortion Task Force and alongside our partners, will use all the tools at our disposal to disrupt the cybercriminal ecosystem.” 

“The Trickbot malware was designed to steal the personal and financial information of millions of people around the world, thereby causing extensive financial harm and inflicting significant damage to critical infrastructure within the United States and abroad,” said Acting U.S. Attorney Bridget M. Brennan of the Northern District of Ohio. “Federal law enforcement, along with assistance provided by international partners, continue to fight and disrupt ransomware and malware where feasible. We are united in our efforts to hold transnational hackers accountable for their actions.”  

“Witte and her associates are accused of infecting tens of millions of computers worldwide, in an effort to steal financial information to ultimately siphon off millions of dollars through compromised computer systems,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office. “Cyber intrusions and malware infections take significant time, expertise, and investigative effort, but the FBI will ensure these hackers are held accountable, no matter where they reside or how anonymous they think they are.” 

The indictment alleges that beginning in November 2015, Witte and others stole money and confidential information from unsuspecting victims, including businesses and their financial institutions in the United States, United Kingdom, Australia, Belgium, Canada, Germany, India, Italy, Mexico, Spain, and Russia through the use of the Trickbot malware. 

Witte and her co-conspirators allegedly worked together to infect victim computers with the Trickbot malware designed to capture online banking login credentials and harvest other personal information, including credit card numbers, emails, passwords, dates of birth, social security numbers and addresses. 

Witte and others also allegedly captured login credentials and other stolen personal information to gain access to online bank accounts, execute unauthorized electronic funds transfers and launder the money through U.S. and foreign beneficiary accounts.

According to the indictment, Witte worked as a malware developer for the Trickbot Group and wrote code related to the control, deployment, and payments of ransomware. The ransomware informed victims that their computer was encrypted, and that they would need to purchase special software through a Bitcoin address controlled by the Trickbot Group to decrypt their files. In addition, Witte allegedly provided code to the Trickbot Group that monitored and tracked authorized users of the malware and developed tools and protocols to store stolen login credentials. 

Witte is charged with one count of conspiracy to commit computer fraud and aggravated identity theft; one count of conspiracy to commit wire and bank fraud affecting a financial institution; eight counts of bank fraud affecting a financial institution; eight counts of aggravated identity theft and one count of conspiracy to commit money laundering. The defendant was arraigned before U.S. Magistrate Judge William H. Baughman Jr. of the U.S. District Court for the Northern District of Ohio. 

If convicted, she faces a maximum penalty of five years in prison for conspiracy to commit computer fraud and aggravated identity theft; 30 years in prison for conspiracy to commit wire and bank fraud; 30 years in prison for each substantive bank fraud count; a two-year mandatory sentence for each aggravated identity theft count, which must be served consecutively to any other sentence; and 20 years in prison for conspiracy to commit money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

The FBI’s Cleveland Office investigated the case. 

Senior Counsel C.S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Daniel J. Riedl and Duncan T. Brown of the Northern District of Ohio are prosecuting the case. 

This case is part of the Department of Justice’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks. As part of the Task Force, the Criminal Division, working with the U.S. Attorneys’ Offices, prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. 

The department, through the Task Force, also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.  

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

Defense Department Linguist Pleads Guilty To Transmitting Highly Sensitive Classified National Defense Information To Aid A Foreign Government

 The U.S. Justice Department released the below information: 

WASHINGTON – A Minnesota woman pleaded guilty today to one count of delivering national defense information to aid a foreign government.   

According to court documents, Mariam Taha Thompson, 63, formerly of Rochester, Minnesota, worked as a contract linguist at an overseas U.S. military facility where she was entrusted with a top secret government security clearance. Thompson pleaded guilty to transmitting highly sensitive classified national defense information to a foreign national who she believed would provide the information to Lebanese Hizballah, a designated foreign terrorist organization. 

“Thompson jeopardized the lives of members of the U.S. military as well as other individuals supporting the United States in a combat zone when she passed classified information to a person she knew was connected to Lebanese Hizballah, a foreign terrorist organization which intended to use the information to hurt this country,” said Assistant Attorney General John C. Demers for the Justice Department's National Security Division. “To describe this conduct is to condemn it. She will now be held to account for this disgraceful personal and professional betrayal of country and colleagues.” 

“The United States entrusted the defendant with highly-sensitive classified information regarding one of its most critical tools — human intelligence in an active combat zone,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “The defendant’s complete betrayal of that trust placed the lives of American men and women on the battlefield, and their allies, in grave danger. Thompson’s arrest and prosecution demonstrate that those who intentionally compromise classified information that is entrusted to them will face swift and dire consequences.” 

“It’s astounding that an American working for the U.S. military overseas would abandon her country in favor of terrorists,” said Assistant Director Alan E. Kohler Jr. for the FBI’s Counterintelligence Division. “The FBI and its partners placed a high priority on this case because the defendant provided classified defense information to a foreign terrorist organization, information that put members of the U.S. military in harm’s way.” 

“Today’s plea is an example of the FBI’s work and commitment to protecting the United States and our national defense information,” said Assistant Director in Charge Steven M. D’Antuono for the FBI Washington Field Office. “Holding a top secret government security clearance bears a responsibility and commitment to our nation, and betrayal of that trust will not be tolerated. The FBI is charged with safeguarding our nation’s information and will work diligently, along with our partners, to protect intelligence and national security information and relentlessly pursue those who choose to betray their country." 

During today’s plea hearing, Thompson admitted that, beginning in 2017, she started communicating with her unindicted co-conspirator using a video-chat feature on a secure text and voice messaging application. Over time, Thompson developed a romantic interest in her co-conspirator. Thompson learned that the unindicted co-conspirator had a family member who was in the Lebanese Ministry of the Interior, and that the unindicted co-conspirator claimed to have received a ring from Hassan Nasrallah, the secretary-general of Lebanese Hizballah. 

In December 2019, while Thompson was assigned to a special operations task force facility in Iraq, the United States launched a series of airstrikes in Iraq targeting Kata’ib Hizballah, an Iranian-backed foreign terrorist organization. These airstrikes culminated in a Jan. 3, 2020, strike that resulted in the death of Iranian Revolutionary Guard Corps Quds Force commander Qasem Suleimani, as well as the founder of Kata’ib Hizballah, Abu Mahdi al-Muhandis. 

Following Suleimani’s death, the unindicted co-conspirator started asking Thompson to provide “them” with information about the human assets who had helped the United States to target Suleimani. Thompson admitted that she understood “them” to be Lebanese Hizballah, including an unnamed high-ranking military commander. 

After receiving this request for information in early January 2020, Thompson began accessing dozens of files concerning human intelligence sources, including true names, personal identification data, background information and photographs of the human assets, as well as operational cables detailing information the assets provided to the U.S. government. Thompson used several techniques to pass this information on to the unindicted co-conspirator, who told her that his contacts were pleased with the information, and that the Lebanese Hizballah military commander wanted to meet Thompson when she came to Lebanon. 

When she was arrested by the FBI on Feb. 27, 2020, Thompson had used her access to classified national defense information to provide her co-conspirator with the identities of at least eight clandestine human assets; at least 10 U.S. targets; and multiple tactics, techniques and procedures. Thompson intended and had reason to believe that this classified national defense information would be used to the injury of the United States and to the advantage of Lebanese Hizballah. 

Thompson faces a maximum sentence of up to life imprisonment. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only. The sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. 

Today’s guilty plea was the result of the significant cooperation between law enforcement, the Department of Defense and the intelligence community in the successful resolution of this investigation led by the FBI Washington Field Office. 

National Security Division Trial Attorneys Jennifer Kennedy Gellie of the Counterintelligence and Export Control Section and Jennifer Levy of the Counterterrorism Section, and Special Assistant U.S. Attorney for the District of Columbia John Cummings are prosecuting the case.

Foreign Nationals Sentenced for Roles In Transnational Cybercrime Enterprise: The Infraud Organization Victimized Millions Of People In All 50 States And Caused More Than $568 Million In Financial Losses

 The U.S. Justice Department released the below information: 

Two foreign nationals — one Russian, the other North Macedonian national — were sentenced today for their role in the Infraud Organization, a transnational cybercrime enterprise engaged in the mass acquisition and sale of fraud-related goods and services, including stolen identities, compromised credit card data, computer malware, and other contraband. 

Sergey Medvedev, aka “Stells,” “segmed,” and “serjbear,” 33, of Russia, pleaded guilty in the District of Nevada to one count of racketeering conspiracy in June 2020 and was sentenced today to 10 years in prison. 

According to court documents, Medvedev was a co-founder of Infraud along with Syvatoslav Bondarenko of Ukraine. From November 2010 until Infraud was taken down by law enforcement in February 2018, Medvedev was an active participant in the Infraud online forum, operating an “escrow” service to facilitate illegal transactions among Infraud members. 

For several years, Medvedev served as Infraud’s administrator, handling day-to-day management, deciding membership, and meting out discipline to those who violated the enterprise’s rules. 

Marko Leopard, aka “Leopardmk,” 31, of North Macedonia, pleaded guilty in the District of Nevada to one count of racketeering conspiracy in November 2019 and was sentenced today to five years in prison. According to court documents, Leopard joined Infraud in June 2011, offering his services as an “abuse immunity” web hoster to Infraud members who wished to create websites to sell contraband. Unlike a legitimate host, Leopard would knowingly cater to websites offering illegal goods and services, ignoring any abuse reports from internet users. He hosted a number of sites for Infraud members in this fashion, providing the infrastructure that allowed his co-conspirators to profit off of their criminal activities. 

“Dismantling a cybercrime organization like Infraud requires aggressive pursuit of not only those who steal, sell, and use personal data, but also those who provide the infrastructure that allows cybercrime organizations to operate,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Today’s sentences should serve as a warning to any web host who willingly looks the other way for a quick buck — and that the United States will hold these bad actors accountable, even when they operate behind a computer screen halfway across the world.” 

“While criminal operators lurk in the deepest corners of the internet, they ultimately do not escape the reach of law enforcement,” said Special Agent in Charge Francisco Burrola of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Las Vegas. 

“We will continue to aggressively investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace. HSI and our partners are at the forefront of combating cyber financial crimes and illicit activities spread by online criminals looking for financial gain.”

Infraud was a criminal enterprise that existed to enrich its members and associates through a myriad of criminal acts of identity theft and financial fraud. Infraud facilitated the sale of contraband by its members, including counterfeit documents, stolen bank account and credit account information, and stolen personal identifying information. Members and associates of Infraud operated throughout the world and the United States, to include Las Vegas. The enterprise, which boasted over 10,000 members at its peak and operated for more than seven years under the slogan “In Fraud We Trust,” is among the largest ever prosecuted by the Department of Justice. 

Infraud was responsible for the sale and/or purchase of over 4 million compromised credit and debit card numbers. The actual loss associated with Infraud was in excess of $568 million USD.

HSI Las Vegas and the Police Department of Henderson, Nevada, investigated the case. The Justice Department’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from Croatia.   

Deputy Chief Kelly Pearson and Trial Attorneys Chad McHenry and Alexander Gottfried of the Justice Department’s Organized Crime and Gang Section prosecuted the case.

Chinese Businessman Charged With Conspiring To Steal Trade Secrets

 The U.S. Justice Department released the below information: 

WASHINGTON – Chi Lung Winsman Ng, aka Winsman Ng, 64, a Chinese businessman residing in Hong Kong, was indicted yesterday for conspiring to steal General Electric’s (GE) trade secrets involving the company’s silicon carbide MOSFET technology worth millions of dollars.  

“Winsman Ng and his co-conspirators allegedly chose to steal what they lacked the time, talent or money to create,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division. “Theft of American intellectual property for the benefit of foreign firms deprives American companies of the fruits of their creativity and American workers of their jobs. The Department will do all it can to disrupt this illegal and economically destructive conduct.” 

“As alleged in the indictment, Winsman Ng conspired to steal trade secrets from General Electric to start a competitor,” said Attorney for the United States, Elizabeth C. Coombe, for the Northern District of New York, Acting Under Authority Conferred by 28 U.S.C. § 515. “This scheme, and others like it, seek to undermine American ingenuity, which often depends on maintaining the secrecy of technological advances. We will continue to work with the FBI to hold accountable those trying to steal trade secrets from innovative companies in our district.” 

“Innovation by American companies brings good things into our lives, but we shouldn’t have to buy those good things from a foreign company that stole American technology to compete against us,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “The FBI urges any U.S. business to contact us if they suspect someone, regardless of nationality, is attempting to steal or has stolen trade secrets. Only through robust engagement with U.S. businesses can we protect our economic and national security.”  

“According to the indictment, Mr. Ng conspired to steal valuable and sensitive technology from GE and produce it in China,” said Special Agent in Charge Thomas F. Relford of the FBI’s Albany Field Office. “Our office, the U.S. Attorney's Office, and GE coordinated closely and worked quickly to prevent that theft and the resulting damage to our economic security. Theft of trade secrets is a constant and dangerous threat to our American companies and the remarkable work they do to invent and manufacture unique technology that can change the world. FBI Albany's Counterintelligence Task Force remains committed to protecting American innovation and technology, American security and American jobs.” 

The charge in the indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty.  

The indictment alleges that between about March 2017 and January 2018, Ng and at least one co-conspirator plotted to develop a business that would manufacture and sell silicon carbide MOSFETs using trade secrets stolen from GE. MOSFETs, or silicon carbide metal-oxide semiconductor field-effect transistors, are small electronic semiconductors/switches that regulate the flow of electricity through devices and are used in a variety of products.  

Ng conspired with at least one other person, a GE engineer of more than seven years, to steal MOSFET trade secrets and other proprietary information from GE. Ng and co-conspirator #1 allegedly used those trade secrets to create a business plan and develop PowerPoint presentations which they gave to prospective investors. Ng and co-conspirator #1 told potential investors that their business could be profitable within three years and that their start-up business possessed assets – tangible and intangible – they estimated to be worth $100 million. As part of the scheme, they sought approximately $30 million in funding in exchange for an ownership stake in their start-up company. In August 2017, Ng and co-conspirator #1 allegedly met in China and gave presentations to a Chinese investment company that was considering providing funding to Ng’s start-up company. 

We have no evidence that there was an illegal MOSFET technology transfer to any Chinese companies, including the company that Ng and his co-conspirator were trying to start. 

Ng has yet to be arrested. If convicted of this offense, Ng faces up to 10 years in prison and a fine of up to $250,000. 

This case is being investigated by the FBI Albany Field Office, and prosecuted by Assistant U.S. Attorney Rick Belliss and Trial Attorney Matthew Chang of the National Security Division, Counterintelligence and Export Control Section.

Canadian National Pleads Guilty To Human Smuggling Conspiracy

 The U.S. Justice Department released the below link: 

A Canadian national pleaded guilty today to conspiracy to bring aliens to the United States for private financial gain in connection with his role in a scheme to smuggle aliens from Sri Lanka through the Caribbean and into the United States. 

As part of the plea, Sri Kajamukam Chelliah, aka Mohan, aka Richie, 55, of Sri Lanka, admitted to conspiring with others to facilitate the travel of aliens from Sri Lanka through Haiti, Turks and Caicos Islands, and the Bahamas to the United States from on or about July 1, 2019 through on or about Oct. 10, 2019. During the course of the conspiracy, Chelliah worked with other human smugglers, arranging housing and transport for illegal aliens en route to Canada through the United States. Sentencing will be scheduled at a later date. 

“By participating in a smuggling operation which planned to illegally transport individuals through various countries, including the United States, the defendant jeopardized the national security of the United States for his own financial benefit” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division.  “As this case demonstrates, the Criminal Division is committed to working with our law enforcement partners both here and abroad to bring human smugglers to justice and to disrupt and dismantle the international networks they operate.” 

Chelliah arranged for the individuals to be transported from the airport in Port Au Prince, Haiti, to a hotel where Chelliah housed and provided them with food. Chelliah then arranged for transportation by boat from Haiti to Turks and Caicos Islands, then to the Bahamas, and then by boat to Miami, Florida. Chelliah accompanied the individuals, including traveling with them by boat during their journey. The actions undertaken by Chelliah and co-conspirators in furtherance of their smuggling activities were done in exchange for payment. 

Specifically, Chelliah further admitted as part of the plea that from approximately October 2017 to approximately September 2019, six Sri Lankan nationals with no legal right to come to, enter, or reside in the United States, travelled from Sri Lanka to Haiti with the assistance of human smugglers. Upon arrival in Haiti, Chelliah arranged for the six individuals to be picked up at the airport and taken to a hotel. Chelliah arranged for the individuals to be housed and fed at the hotel, then travel by boat from Haiti to Turks and Caicos Islands and from Turks and Caicos Islands to the Bahamas. The six aliens would then travel from the Bahamas to Miami, Florida, by boat. 

According to the plea agreement, on Oct. 10, 2019, the six aliens, accompanied by Chelliah, boarded a Haitian sloop sailboat heading for Turks and Caicos Islands. The Haitian sloop sailboat carrying approximately 154 aliens, including Chelliah, was subsequently interdicted by Turks and Caicos authorities. Chelliah was arrested and ultimately convicted in Turks and Caicos on local immigration charges and sentenced to 12 months imprisonment. Following the completion of his prison sentence, he was placed in immigration detention in Turks and Caicos. 

Chelliah was later arrested on July 28, 2020, by Turks and Caicos authorities, based on a provisional arrest request submitted by the United States premised on a sealed U.S. criminal complaint. He consented to extradition and, on Aug. 15, 2020, the Governor of Turks and Caicos issued an order allowing the extradition to the United States. Chelliah was extradited to the United States on Aug. 17, 2020, and the criminal complaint was unsealed at his initial appearance on the same date.  

This case is being investigated by HSI Miami, with assistance from the HSI Human Smuggling Unit and U.S. Customs and Border Protection (CBP). The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities. 

The case is being prosecuted by Trial Attorneys Rami S. Badawy and John Alex-Romano of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida, with support from HRSP Trial Attorney Jim Hepburn. The Justice Department’s Office of International Affairs provided significant assistance in the investigation and in securing the defendant’s extradition to the United States. The Department of Justice gratefully acknowledges the government of Turks and Caicos Islands for their valuable assistance.