Federal Government Contractor Sentenced for Removing and Transmitting Classified Materials to a News Outlet

August 23, 2018 – Reality Winner, 26, of Augusta, Georgia, was sentenced today to five years and three months in prison for removing classified national defense material from a government facility and mailing it to a news outlet. Winner was arrested by the FBI at her home in Augusta, on June 3, 2017. The parties filed a plea agreement on June 21, in which Winner agreed to plead guilty to the one-count indictment charging her with unlawful retention and transmission of national defense information. The parties agreed that a sentence…

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Grand Jury Indicts 12 Russian Intelligence Officers for Hacking Offenses Related to the 2016 Election

July 13, 2018 – The Department of Justice today announced that a grand jury in the District of Columbia returned an indictment presented by the Special Counsel’s Office. The indictment charges twelve Russian nationals for committing federal crimes that were intended to interfere with the 2016 U.S. presidential election. All twelve defendants are members of the GRU, a Russian Federation intelligence agency within the Main Intelligence Directorate of  the Russian military. These GRU officers, in their official capacities, engaged in a sustained effort to hack into the computer networks of the…

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Electrical Engineer Found Guilty for Intending to Convert Trade Secrets from Defense Contractor

A federal jury in Hartford, Connecticut yesterday returned guilty verdicts against a man for his conduct related to a scheme to convert trade secrets belonging to a defense contractor based in Groton, Connecticut, related to, among others, an innovative naval prototype being developed for the U.S. Navy, Office of Naval Research, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney John H. Durham of the District of Connecticut. According to evidence admitted at trial, Jared Dylan Sparks, 35, of Ardmore, Oklahoma, an…

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Former Defense Contractor Sentenced for Unlawfully Retaining Classified Information

Weldon Marshall, 43, of Sherman, Texas, was sentenced today to 41 months in prison, to be followed by one year of supervised release, for unlawfully retaining national defense information. Marshall pleaded guilty on March 5. Assistant Attorney General for National Security John C. Demers and U.S. Attorney Ryan K. Patrick of the Southern District of Texas made the announcement, after sentencing by U.S. District Judge George Hanks. In handing down the sentence, the court noted how Marshall violated an important trust the military had placed in him. From the early…

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United States Settles Lawsuit Alleging That Contractor Falsely Overcharged the U.S. Navy for Ship Husbanding Services

Inchcape Shipping Services Holdings Limited and certain of its subsidiaries (collectively, Inchcape) have agreed to pay $20,000,000 to resolve allegations that they violated the False Claims Act by knowingly overbilling the U.S. Navy under contracts for ship husbanding services, the Department of Justice announced May 29th. Inchcape is a marine services contractor headquartered in the United Kingdom. Inchcape provided goods and services to Navy ships at ports in several regions throughout the world, including southwest Asia, Africa, Panama, North America, South America and Mexico. Inchcape provided ships with food and…

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Former Military Sealift Command Contractor Sentenced to 87 Months for Bribery and Fraud

A former contractor at the Military Sealift Command was sentenced to 87 months for his role in a bribery and fraud conspiracy through which he received nearly $3 million in bribes from approximately 1999 to approximately 2014. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; Acting United States Attorney Tracy Doherty-McCormick for the Eastern District of Virginia; Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic…

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Three Individuals Indicted for Bribing Naval Employee to Allow Them to Make Unauthorized Liquor Purchases

April 10, 2018 – Three New York residents were indicted today in two separate indictments for providing cash bribes to an employee of the U.S. Department of the Navy to make unauthorized liquor purchases at a Navy Exchange (NEX), announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division. Adam Agaev, 43, and David Manasherov, 37, both of Brooklyn, New York, were charged together in a nine-count indictment, and Edwin D. Fragoso, 44, of Freeport, New York, was charged in a six-count indictment, all in the…

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Ultra Electronics Abandons its Proposed Acquisition of Sparton Corp. After Department of Justice Expresses Concerns

The Department of Justice announced March 6th that Ultra Electronics Holdings plc and Sparton Corporation have abandoned their merger, originally valued at more than $234 million. The transaction threatened to permanently combine the only two qualified suppliers of sonobuoys to the U.S. Navy. Sonobuoys are used in support of multiple underwater missions for detection, classification, and localization of adversary submarines during peacetime and combat operations. Ultra Electronics and Sparton Corporation have in recent years supplied this critical equipment to the U.S. Navy through their joint venture, ERAPSCO. Ultra Electronics Holdings…

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Former Contractor at Military Sealift Command Pleads Guilty to Conspiracy, Bribery, and Honest Services Fraud

A former contractor at the Military Sealift Command (MSC) pleaded guilty today for accepting bribes totaling approximately $2.8 million in the course of a bribery and fraud scheme that lasted more than a decade. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division; U.S. Attorney Dana Boente for the Eastern District of Virginia; Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office; Special Agent in Charge Robert E. Craig, Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Special Agent…

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Attorney General Sessions Issues Statement on President Trump’s National Security Strategy

Today Attorney General Jeff Sessions issued the following statement on President Trump’s National Security Strategy: “President Trump has put America first,” Attorney General Sessions said. “The very first pillar of his national security strategy is to protect our homeland–to protect the American people from terrorism, from violent crime, from deadly drugs, and from any other threat we face. And he has taken action to do that by stopping immigration of people we can’t vet, holding cities and counties accountable that intentionally undermine federal law enforcement, and putting a bullseye on…

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Maryland Man Pleads Guilty to Willful Retention of National Defense Information

Nghia Hoang Pho, 67, of Ellicott City, Maryland, pleaded guilty today to willful retention of national defense information. Acting Assistant Attorney General for National Security Dana J. Boente, Acting U.S. Attorney Stephen M. Schenning for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office made the announcement. According to his plea agreement, beginning in April 2006, Pho was employed as a Tailored Access Operations (TAO) developer for the National Security Agency (NSA). The NSA’s TAO involved operations and intelligence collection to…

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Former Sandia Procurement Officer Indicted on Charges of Wire Fraud, Major Fraud & Money Laundering

A federal grand jury sitting in the District of New Mexico returned an 11-count indictment against a former procurement officer employed at Sandia National Laboratories (SNL), a nuclear research and development facility of the U.S. Department of Energy (DOE), for orchestrating a scheme to obtain a $2.3 million contract through fraudulent means. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement. Carla Sena, 55, of Albuquerque, New Mexico was charged with three counts of wire fraud, one count of major fraud against the…

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American Citizen Convicted of Conspiring to Murder U.S. Nationals in Bombing Attack Against Military Base in Afghanistan

A federal jury in Brooklyn, New York, returned a guilty verdict today against Muhanad Mahmoud Al-Farekh on nine counts, including conspiracy to murder U.S. nationals, conspiracy to use a weapon of mass destruction, conspiracy to bomb a government facility and conspiracy to provide material support to terrorists.  Farekh faces up to life in prison when he is sentenced by United States District Judge Brian M. Cogan. The verdict was announced by Acting Assistant Attorney General for National Security Dana J. Boente, Acting United States Attorney Bridget M. Rohde for the…

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Justice Department Secures $907,000 from Citifinancial for Illegally Repossessing Active Duty Servicemembers’ Vehicles

The Justice Department announced today that CitiFinancial Credit Company, as successor to CitiFinancial Auto Corporation, has agreed to pay $907,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing 164 cars owned by SCRA protected servicemembers without first obtaining the required court orders. During the investigation, the Department learned that CitiFinancial conducted repossessions without court orders even when CitiFinancial had evidence in its own records suggesting that a borrower could be a protected servicemember. In several cases, loan servicing notes indicated that CitiFinancial was informed…

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Somali Pirate Sentenced to Life for 2010 Attack on USS Ashland

April 26, 2017 – Mohamed Farah, 31, of Somalia, was sentenced to life plus 10 years in prison for engaging in piracy and committing other offenses pertaining to the attack on the USS Ashland, a U.S. Navy ship, in April 2010. Today’s announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Martin Culbreth of the FBI’s Norfolk Field Office in Virginia, and Special Agent in Charge Maureen Evans of the…

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