We continue to protect military and dual-use technologies from adversaries seeking to undermine the United States or bring harm to our allies. Get this delivered to your inbox, and more info about our products and services. The indictment represents the first time that the Department of Justice has brought criminal insider trading charges based exclusively onan executives use of10b5-1 trading plans. Shortly after the call, one of the employees of the financial institution contacted the actual media executive of the online video service, who confirmed that he had not been on the call and that the online video service had no role in the production of The Carlos Watson Show. The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. In subsequent months, Watson and his co-conspirators continued to attempt to induce the bank to lend Ozy several million dollars based on misrepresentations and omissions, including regarding the expected revenue from the second season of the Ozy television show. That charge . Based in the United States, Brayman and Yermolenko would fabricate shipping documents and invoices, repackaging and reshipping items to intermediate destinations around the world including to Konoshchenok in Estonia before eventually arriving in Russia. The students were stabbed to death on the second and . An indictment was unsealed today charging Terren S. Peizer, the CEO and Chairman of the Board of Directors of Ontrak Inc., a publicly traded health care company, for allegedly engaging in an insider trading scheme in which he fraudulently used Rule 10b5-1 trading plans to trade Ontrak stock. The Justice Department will continue to vigorously enforce our economic sanctions and export controls against those who enable the Russian government to continue its unjust war in Ukraine. As alleged in the indictment and court documents, Ozy is a media and entertainment company whose businesses include digital newsletters, television production, podcasts, and live events, the most prominent of which is a live festival known as Ozy Fest. Watson founded Ozy in 2012 and has served as the companys Chief Executive Officer since its inception. On or about January 28, 2021, Rao, with Watsons agreement, created a fake email address in the name of the media executive, which he used to correspond with representatives of the financial institution. The defendants unlawfully purchased and exported highly sensitive and heavily regulated electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications. On Nov. 24, 2022, Konoshchenok was again stopped attempting to cross into Russia with approximately 20 cases containing thousands of U.S.-origin bullets, including tactical rounds and .338 military sniper rounds. . Alexander Janghorbanis practice focuses on complex securities issues, litigation and enforcement, informed by nearly nine years of service with the U.S. Securities and Exchange Commission. U.S. Attorney's Office, Eastern District of New York, Watson and Ozy Senior Executives Allegedly Defrauded Investors of Tens of Millions of Dollars Through Fraudulent Misrepresentations and Impersonated Media Company Executives During Negotiations, Ozy Media and Its Founder Carlos Watson Indicted in a Years-Long Multi-Million Dollar Fraud Scheme, Nigerian National Pleads Guilty to Multi-Million Dollar Fraud Schemes and Money Laundering, Sanctions Evasion and Money Laundering Charges Unsealed Against Specially Designated Global Terrorist Mohammad Bazzi and Talal Chahine, Ozy Media and Its Founder Carlos Watson Indicted In a Years Long Multi Million Dollar Fraud Scheme. If convicted of bank fraud or bank fraud conspiracy, the defendants face a maximum of 30 years in prison. Follow the latest live news . 18-465 (N.D. NASHVILLE - A lengthy investigation by federal and local law enforcement has resulted in the indictment of 22 individuals for illegally distributing substantial amounts of controlled substances in and around the areas of Maury County and Lewis County, Tennessee. The indictment against Hytera continues a pattern of aggressive enforcement by the United States government of trade secrets cases against Chinese entities and individuals. . When members of the financial institution later spoke with Watson, he falsely claimed that Rao had acted alone and as a result of a mental breakdown. Yermolenko and Brayman also helped Livshits set up and manage dozens of shell companies and corresponding bank accounts throughout the U.S. that were used in the scheme. ), available at https://www.justice.gov/opa/press-release/file/1107251/download. Cal. 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David E. Brodskys practice focuses on securities enforcement, white-collar criminal defense and internal investigations. The DOJ also charged seven Chinese nationals in a separate New York case, which alleges the defendants unlawfully tried to coerce a Chinese citizen to repatriate to China under the countrys Operation Fox Hunt policy that aims to send Chinese citizens who have been accused of financial crimes back to the country. The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. 08/12/2022 04:15 PM EDT. During these discussions, the bank requested to speak to a representative of the cable network. The investigation was coordinated through the Justice Departments 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 Russias unprovoked military invasion of Ukraine. We will continue the steady pace of seizures, indictments and arrests, while the Kremlin continues shopping for spare parts in North Korea.. Matthew C. Solomon has significant experience in complex and high-stakes civil and criminal matters, having served for 15 years with the U.S. Department of Justice. Secure .gov websites use HTTPS [2] Motorola Solutions Inc. v. Hytera Communications Corp. Ltd., et al., 1:17-cv-1972 (N.D. Ill); Motorola Solutions Inc. v. Hytera Communications Corp. Ltd., et al., 1:17-cv-1973 (N.D. Ill). Konoshchenok discussed fabricating business records with Livshits to conceal the ammunition shipments, on one occasion describing them as auto parts. Incident to Konoshchenoks arrest, Estonian authorities searched a warehouse held in the name of Konoshchenoks son and recovered approximately 375 pounds worth of ammunition. [1] The indictments allegations parallel those made in two civil complaints Motorola Solutions Inc. (Motorola) filed against Hytera for theft of trade secrets and patent infringement in the same Court in 2017.[2]. ", Unsealed Indictment Illustrates Interplay Between Criminal and Civil Liability For Theft Of Trade Secrets, SEC Charges Company Executives with Insider Trading for Allegedly Setting Up 10b5-1 Trading Plan While in Possession of MNPI, U.S. Regulatory Challenges For Chinese Companies: The COSCO Case Study, U.S. Regulatory Challenges for Chinese Companies:The Bank of China Case Study, https://www.justice.gov/opa/press-release/file/1469761/download, https://www.justice.gov/opa/press-release/file/1248961/download, https://www.justice.gov/opa/press-release/file/1107251/download, https://www.justice.gov/opa/pr/taiwan-company-pleads-guilty-trade-secret-theft-criminal-case-involving-prc-state-owned. Mountain View, California, OZY MEDIA, INC. But officials said they carried out the scheme for their personal gain, and not at the behest of the Iranian government. Official websites use .gov Even with all its redactions, the probable cause affidavit published today by the magistrate judge in Florida . A Division of NBCUniversal. The arrests made last year pursuant to U.S. Immigration and Customs Enforcement's execution of more than a dozen search warrants, have thus far yielded 126 indictments, 117 criminal arrests and 73 convictions. Grinin and Skvortsova secured funding and shipping routes for the transactions, and tasked Livshits with procuring the items from U.S. companies. Following Russias invasion of Ukraine in February 2022, the U.S. Department of the Treasurys Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, and several companies used in the scheme, as well as multiple individuals affiliated with the network, including defendant Yevgeniy Grinin, calling them instrumental to the Russian Federations war machine., As alleged, the defendants perpetrated a sophisticated procurement network that illegally obtained sensitive U.S. technology to facilitate the Russian war machine, said U.S. Attorney Breon Peace for the Eastern District of New York. He has been involved in a number of. Konoshchenok discussed fabricating business records with Livshits to conceal the ammunition shipments, on one occasion describing them as auto parts. Incident to Konoshchenoks arrest, Estonian authorities searched a warehouse used by Konoshchenok and recovered approximately 375 pounds worth of ammunition. The Department of Justice and our international partners will not tolerate criminal schemes to bolster the Russian militarys war efforts, said Attorney General Merrick B. Garland. BORIS LIVSHITS One indictment charged McGonigal and Sergey Shestakov with violating U.S. sanctions on Russia and conspiring to commit money laundering related to services for Oleg Deripaska. Have a question about Government Services? "The cases unsealed today take place against a backdrop of malign activity by the People's Republic of China that includes espionage, harassment, obstruction of our justice system and unceasing. Nowell D. Bambergers practice focuses on cross-border contentious disputes matters, including litigation and criminal and regulatory investigations. Former SEC Chair Jay Clayton weighs in on Sam Bankman-Fried's arrest, charges A federal indictment was unsealed Tuesday alleging widespread fraud by FTX co-founder Sam Bankman-Fried, a day. Please use https://bad-boys.us to get ALL the up to date information. The Justice Department announced charges Monday against 13 people allegedly involved in attempts by the Chinese government to influence U.S. operations, including two Chinese nationals who were. Peizer is accused of using his insider knowledge as CEO of a publicly traded company to line his own pockets in violation of his duty to his company and its shareholders, said U.S. Attorney Martin Estrada for the Central District of California. This is forging someones signature with the intent of getting an advance from a publicly traded bank. She continued, To be crystal clear, what you see as a measured risk I see as a felony.. As alleged, the defendant violated U.S. law by procuring, smuggling, and repairing counterintelligence operation devices for the benefit of Russias secret police and the North Korean government, stated United States A three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Mohammad Ibrahim Bazzi, a Lebanese and Belgian citizen, and Talal Chahine Kashani defied export restrictions and sanctions against Iran, a country that sponsors international terrorism, stated United States Attorney Peace. On Thursday, federal prosecutors charged Oath Keepers leader Stewart Rhodes and 10 others with seditious conspiracy for their role in the January 6, 2021, attack on the US Capitol. Posted: Feb 28, 2023 / 04:42 PM EST. Trial Attorneys Matthew Reilly and Christina McGill of the Criminal Divisions Fraud Section and Assistant U.S. Attorney Ali Moghaddas for the Central District of California are prosecuting the case. As alleged in the indictment, on Oct. 27, 2022, Konoshchenok was stopped at the Estonian border with 35 different types of semiconductors and other electronic components ordered by Livshits, as well as thousands of U.S.-made 6.5mm bullets, which are used in military sniper rifles. As the indictment today alleges, Watson repeatedly attempted to entice both investors and lenders through a series of deliberate deceptions and fabrications. Notably, the Espionage Act for criminal trade secret matters has a five-year statute of limitations, as compared with the three-years provided for in the Defend Trade Secrets Act. Investment fraud undermines confidence in our nations markets and investors and makes it harder for honest businesses to compete. "We have a group of folks who have some level of state employment, or are doing something for the state, but who are also up to something on the side to make money," said a Justice Department official who spoke to reporters on background about the case. The U.S. Department of Justice said indictments made public Thursday charged Russian nationals with attempting, supporting and conducting computer intrusions that together, in two separate conspiracies, targeted software and hardware systems linked to the global energy sector between 2012 and 2018. Over the course of the day, the picture that emerged from the indictments and the sanctions notice was that of a group of Iranian government affiliated cyber hackers who were moonlighting as ransomware thieves. The three men allegedly defrauded a township in New Jersey, a county in Wyoming,a regional electric power company in Mississippi and another in Indiana, a public housing authority in Washington state and a statewide bar association in an unnamed state. . The indictment also alleges that a Hytera employee testified in the civil case that an individual defendant was fired in the fall of 2018 for refusing to cooperate with Hyteras internal investigation, when in fact [they] worked for Hytera from no later than December 2018, throughout the trial of the Civil Case, to at least June 22, 2020.. Alexey Brayman, a lawful permanent resident of the United States residing in New Hampshire, and Vadim Yermolenko, a U.S. citizen residing in New Jersey, were also arrested and charged as part of scheme. A federal district court judge will determine any sentence after considering the U.S. All Rights Reserved. Livshits also interfaced directly with U.S. companies often using the alias David Wetzky and made materially false statements about how the items would be used and the ultimate end user. [5] U.S. Department of Justice Press Release, Taiwan Company Pleads Guilty to Trade Secret Theft in Criminal Case Involving PRC State-Owned Company (Oct. 28, 2020), available at https://www.justice.gov/opa/pr/taiwan-company-pleads-guilty-trade-secret-theft-criminal-case-involving-prc-state-owned. Stunning New Intel! WASHINGTON The Department of Justice on Wednesday unsealed an August indictment of three Iranian nationals who officials said are behind an international ransomware conspiracy that has. Hytera offered these Motorola engineers higher salaries and benefits than they were receiving from Motorola. Elizabeth Vicens practice focuses on a broad spectrum of securities enforcement, investigations and compliance, as well as securities litigation, with a concentration in complex, cross-border. 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