Two Face Potential 20 Years for Supplying Iran with U.S. Nuclear Materials

Two men accused of creating a global network of shell companies to deceive U.S. companies into supplying nuclear-related materials to Iran were indicted by a federal grand jury in the District of Columbia following an international investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).

According to a superseding indictment made public Friday, July 13, 2012, Iranian national Parviz Khaki, 43, and Chinese national Zongcheng Yi allegedly attempted to obtain and illegally export U.S.-origin materials to Iran that can be used to construct, operate and maintain gas centrifuges to enrich uranium. This includes materials such as maraging steel, aluminum alloys, mass spectrometers, vacuum pumps and other items. Khaki is also accused of conspiring to procure radioactive source materials from the U. S. for customers in Iran.

HSI special agents uncovered the conspiracy in 2008. Special agents found that Khaki directed Yi and others to contact U.S. companies about purchasing U.S.-origin goods. Yi and other conspirators then placed orders and purchased goods from various U.S. companies and had the goods exported from the United States through China and Hong Kong to Khaki and others in Iran. Yi and others allegedly made a variety of false statements to U.S. companies on behalf of Khaki to conceal that Iran was the final destination and end-user of the goods and to convince U.S. companies to export these items to a third country.

"By dismantling this complex conspiracy to deliver nuclear-related materials from the United States to Iran, we have disrupted a significant threat to national security," said ICE Director John Morton. "Homeland Security Investigations will continue to pursue those who exploit U.S. businesses to illegally supply foreign governments with sensitive materials and technology that pose a serious risk to America and its allies."

"Today's indictment sheds light on the reach of Iran's illegal procurement networks and the importance of keeping U.S. nuclear-related materials from being exploited by Iran," said Assistant Attorney General for National Security Lisa Monaco on July 13, 2012. "Iranian procurement networks continue to target U.S. and Western companies for technology acquisition by using fraud, front companies and middlemen in nations around the globe. I applaud the authorities in the Philippines and the many U.S. agents, analysts and prosecutors who worked on this important case."

"This new indictment shows that we have no tolerance for those who try to traffic in commodities that can be used to support Iran's nuclear program," said U.S. Attorney Ronald C. Machen Jr. "It also underscores our commitment to aggressively enforcing export laws."

Both defendants are charged with conspiracy to violate the International Emergency Economic Powers Act (IEEPA) by conspiring with others to cause the export of U.S. goods to Iran without the required U.S. Treasury Department license; conspiracy to defraud the U. S.; two counts of smuggling; two counts of illegally exporting U.S. goods to Iran in violation of IEEPA; and conspiracy to commit money laundering.

Khaki, also known as "Martin," was arrested May 24 by Philippine authorities based on a U.S. provisional arrest request stemming from a March 2012 U.S. federal indictment. Khaki remains in Philippine custody and the United States intends to seek his extradition to stand trial in the District of Columbia. Yi, who also goes by "Yi Cheng," "Kohler," and "Kohler Yi," is purported to be the managing director of Monalila Co. LTD, a company in Guangzhou City, China, and remains at large.

The defendants face a maximum potential sentence of 20 years in prison for conspiring to violate IEEPA, five years in prison for conspiring to defraud the United States, 10 years in prison for each smuggling count, 20 years in prison for each IEEPA count and 20 years in prison for conspiracy to commit money laundering.

The investigation was led by HSI Seattle with assistance provided by HSI Attaché Manila; authorities in the Philippines; and the U.S. Department of Justice's Criminal Division Office of International Affairs. The prosecution is being handled by the U.S. Attorney's Office for the District of Columbia and the Counterespionage Section of the Justice Department's National Security Division.

An indictment only contains allegations of a crime, defendants are presumed innocent unless and until proven guilty in a court of law.

Through its counter proliferation investigations, HSI aims to prevent terrorist groups and hostile nations from illegally obtaining U.S. military products and sensitive technology, including weapons of mass destruction. HSI oversees a broad range of investigations related to export law violations. It enforces U.S. export laws involving military items and controlled dual-use goods, as well as products going to sanctioned or embargoed countries.

ICE and HSI Crackdown on Cyber Intelligence Theft

U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) -led National Intellectual Property Rights Coordination Center (IPR Center) seized 70 websites that were illegally selling counterfeit merchandise.

The 70 websites seized are part of Project Copy Cat, an iteration of Operation In Our Sites (IOS), and closely mimicked legitimate websites selling authentic merchandise and duped consumers into unknowingly buying counterfeit goods. Many of the websites so closely resembled the legitimate websites that it would be difficult for even the most discerning consumer to tell the difference.

The websites are now shut down and their domain names are in the custody of the federal government. Visitors to these websites will find a seizure banner that notifies them that the domain name has been seized by federal authorities and educates them about the federal crime of willful copyright infringement.

"This operation targeted criminals making a buck by trying to trick consumers into believing they were buying name brand products from legitimate websites when in fact they were buying counterfeits from illegal but sophisticated imposter sites located overseas," said ICE Director John Morton. "The imposter sites were simply a fraud from start to finish and served no purpose other than to defraud and dupe unwary shoppers."

A new twist in the websites seized in Project Copy Cat involved the appearance of Secure Sockets Layer (SSL) certificates. SSL certificates provide authentication for financial information, meaning consumers should be able to trust that they are sending information to the intended server and not to a criminal's server. Trusted SSL providers should only issue SSL certificates to verified companies that have gone through several identity checks. In addition to providing authentication, SSL certificates also provide encryption, enhancing the security of credit card numbers, usernames, passwords and other sensitive information. These websites, however, displayed SSL certificates, further duping the consumer into thinking they were shopping on a legitimate website, potentially putting customers' financial information at risk.

During this operation, federal law enforcement officers made undercover purchases of a host of products, including baby carriers, professional sports jerseys, language and fitness DVD sets, and a variety of clothing, jewelry and luxury goods from online retailers who were suspected of selling counterfeit products. In most cases, the goods were shipped directly into the United States from suppliers in other countries. If the copyright holders confirmed that the purchased products were counterfeit or otherwise illegal, seizure orders for the domain names of the websites that sold the goods were obtained from federal magistrate judges.

"Every day the U.S. economy and American jobs are negatively impacted by criminal organizations engaged in the sale of counterfeit merchandise through rogue websites. Even more importantly, consumer's health and safety can be threatened when they unknowingly purchase counterfeit products," said IPR Center Director Lev Kubiak. "Our goal at the IPR Center is to protect the public's safety and economic welfare through robust intellectual property enforcement and we hope that today's enforcement actions raise the public's awareness to this pervasive crime."

This operation was the next phase of IOS, a sustained law enforcement initiative that began two years ago to protect consumers by targeting the sale of counterfeit merchandise on the Internet. These 70 domain name seizures bring the total number of IOS domain names seized in the last two years to 839. This enforcement action coincides with the two-year anniversary of the 2010 launch of IOS. Since then, the seizure banner has received more than 103 million individual views.

Of the 769 previous domain names seized, 229 have now been forfeited to the U.S. government. The federal forfeiture process affords individuals who have an interest in seized domain names a period of time after a "Notice of Seizure" to file a petition with a federal court and additional time after a "Notice of Forfeiture" to contest the forfeiture. If no petitions or claims are filed, the domain names become the property of the U.S. government. Additionally, a public service announcement, launched in April 2011, is linked from the seizure banner on each of the 229 forfeited websites. This video educates the public about the economic impact of counterfeiting.

The operation was spearheaded by the IPR Center in coordination with HSI field offices in Denver, El Paso, Houston, Newark and Salt Lake City. U.S. Attorney's Offices in the Western District of Texas, Southern District of Texas, District of New Jersey, District of Colorado and the District of Utah issued the warrants for the seizures. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. The IPR Center uses the expertise of its 21 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and the war fighters.

During the first phase of IOS in 2010, the IPR Center received information from the Motion Picture Association of America that a website, www.ninjavideo.net (Ninja Video), was illegally distributing pirated copies of motion pictures and other audiovisual works. Ninja Video provided its millions of visitors the ability to illegally download high quality copies of copyrighted movies including movies that were currently in theaters or not yet released.

Following the seizure of the website, search warrants were executed at the residences of the primary suspects in the United States and funds were seized from 15 separate financial accounts. To date, the Ninja Video investigation has resulted in the arrest and conviction of five of the six co-conspirators with sentences ranging from 22 months in federal prison to three years of probation with a combined restitution exceeding $470,000 to the victims. A sixth co-conspirator remains a fugitive. In addition to Ninja Video, IOS phase one also targeted eight other websites selling counterfeit merchandise in New York.

Previous website seizures include:

·                             First phase: 9 domain names

·                             Second phase: 83 domain names

·                             Third phase: 10 domain names

·                             Fourth phase: 18 domain names

·                             Fifth phase: 5 domain names

·                             Sixth phase: 17 domain names

·                             Seventh phase: 58 domain names

·                             Eight phase: 156 domain names

·                             Ninth phase: 10 domain names

·                             Tenth phase: 385 domain names

·                             Salt Lake City: 7 domain names

·                             Sustained Effort: 11 domain names

These cases are part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation's economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders.

Life Sentence for Texas Cocaine Dealer

A Texas man was sentenced to life in prison Tuesday, July 10, 2012, for his participation in a conspiracy to distribute cocaine in Alabama, following an investigation by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Mobile County Sheriff's Office.

Frank James Abston, 40, of Houston, Texas, was sentenced to life imprisonment in federal court after he entered a guilty plea to the charges in November 2011. Judge Callie V. S. Granade imposed the life sentence after conducting a hearing to determine the advisory guideline range applicable to Abston's case. Six witnesses testified to their extensive drug transactions with Abston, who was characterized as a major supplier of cocaine and crack cocaine in Mobile County.

"With Mr. Abston's previous criminal history, he should have known that severe consequences were in store for him should he continue to violate the law," said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans. "HSI has had no better partners than the Mobile County Sheriff's Office and the U.S. Attorney's Office for the Southern District of Alabama in identifying and arresting significant drug traffickers in our area of operations. This significant sentence should put Mr. Abston's former colleagues on notice that they will either reform their ways or share his fate." Parmer oversees HSI activities in Alabama, Louisiana, Arkansas, Mississippi and Tennessee.

According to the testimony, most of the drug transactions occurred in south Mobile County, in the Grand Bay area. Abston's co-defendant, Walter Lee Hodges, testified that Abston hired him to transport cocaine on the bus two days before they were arrested by Mobile County sheriff's deputies. Hodges testified that he and Abston's girlfriend each brought a kilogram of cocaine on the bus from Houston to Mobile. When they were stopped in a vehicle off Interstate 10 in Mobile, they had approximately 500 grams of cocaine in the car.

Hodges testified that Abston sold the rest of the cocaine the night they arrived and the next morning.

Abston testified at the hearing in his own behalf, and he claimed that he was only minimally involved in selling drugs and that his former defense attorney misled him about the terms of his guilty plea. After the testimony was concluded, Judge Granade found that Abston occupied a position of leadership in the conspiracy, that he was accountable for at least 127 kilograms of cocaine and 1.4 kilograms of crack cocaine (both figures she characterized as very conservative), and that Abston was not entitled to any mitigation in the guideline calculations because he had not been truthful in his testimony before the court.

Judge Granade found that his advisory guideline range was life imprisonment, and that because of his prior drug convictions, the federal enhancement statute also called for a life sentence.

The case was prosecuted by Assistant United States Attorney Gloria Bedwell.

Polish Fugitive Deported for Felony Charges

A Polish national who is wanted in his home country for racketeering, extortion and battery was deported and turned over to Polish law enforcement officials Tuesday, July 10, 2012, by U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO).
Slawomir Grymuza, 49, was flown from Chicago to Warsaw, Poland, on a commercial flight July 9. ERO officers escorted Grymuza on the flight and turned him over to the custody of Polish authorities July 10 upon arrival at the Warsaw International Airport.

An Interpol notice was issued for Grymuza Nov. 4, 2009. He was being sought in Poland to serve a prison sentence for his criminal convictions of racketeering, extortion, fraud, battery and beating causing bodily harm.

According to the Interpol notice, the circuit court in Bydgoszcz, Poland, issued an arrest warrant for Grymuza March 29, 2006. Between November 1994 and January 1995 he used violence and threats against four individuals on various occasions to extort money from them.

In September 1994, Grymuza kidnapped a man from his residence and beat him with a baseball bat, causing serious injuries, while demanding payment for a debt. Grymuza was found guilty in April 2001; he was sentenced March 6, 2002 to serve four years and two months in prison.

Grymuza, who was residing in Arlington Heights, Ill., entered the United States Oct. 9, 2006 on a temporary visitor's visa. He remained in the United States illegally after his visa expired. He was in the process of adjusting his immigration status based on his marriage to a U.S. citizen when ICE Homeland Security Investigation (HSI) was notified of the outstanding arrest warrant in Poland. On April 9, 2012, HSI and FBI agents arrested Grymuza and he was placed in deportation proceedings.

A federal immigration judge in Chicago ordered him deported June 1; Grymuza waived his appeal.

"This individual attempted to escape justice and a prison sentence in Poland by hiding out in the Chicago area," said Ricardo Wong, ERO Chicago field office director. "On a daily basis, ICE protects public safety by arresting and removing international fugitives who pose a threat to our communities."

Since Oct. 1, 2009, ERO has removed about 455 foreign fugitives from the United States who were being sought in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with ICE's Office of International Affairs, foreign consular offices in the United States, and Interpol to identify foreign fugitives illegally present in the country.

Centralized Filing for Certain USCIS Forms

Beginning June 4, 2012, individuals abroad who have applied for certain visas and have been found ineligible by a U.S. Consular Officer, will be able to mail requests to waive certain grounds of inadmissibility directly to a U.S. Citizenship and Immigration Services (USCIS) Lockbox facility. This change affects where individuals abroad, who have been found inadmissible for an immigrant visa or a nonimmigrant K or V visa, must send their waiver applications.

Currently, applicants experience processing times from one-month to more than a year depending on their filing location. This centralization will provide customers with faster and more efficient application processing and consistent adjudication. It is part of a broader agency effort to transition to domestic filing and adjudication; it does not reflect a change in policy or the standards by which the applications are adjudicated. Individuals filing waiver applications with a USCIS Lockbox will now be able to track the status of their case online.

The change affects filings for:

               Form I-601, Application for Waiver of Grounds of Inadmissibility

               Form I-212, Application for Permission to Reapply for Admission into the United States After Deportation or Removal

               Form I-290B, Notice of Appeal or Motion, (if filed after a denial of a Form I-601 or Form I-212)

Applicants who mail their waiver request forms should use the address provided in the revised form instructions on the USCIS website. Applicants who wish to receive an email or text message when USCIS has received their waiver request may attach Form G-1145, E-Notification of Application/Petition Acceptance, to their application.

During a limited six-month transition period, immigrant visa waiver applicants in Ciudad Juarez, Mexico, will have the option to either mail their waiver applications to the USCIS Lockbox in the United States or file in-person at the USCIS office in Ciudad Juarez. USCIS is aware of the pending caseload for applicants in Ciudad Juarez and is taking proactive steps to work through these cases. USCIS will significantly increase the number of officers assigned to adjudicate the residual cases filed before June 4, and those filed during the interim six-month transition period. USCIS has already begun to test this process and has transferred applications from Ciudad Juarez to other USCIS offices in the United States.  

This change is separate and distinct from the provisional waiver proposal published in the Federal Register on Mar. 30, 2012.

Homicide Suspect Deported to Mexico Through Secure Communities Program

A Mexican citizen wanted for murder in his homeland was turned over to Mexican law enforcement officers Thursday, July 5, 2012, following his removal from the United States by U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO).

Alfredo Montalvo-Coreno, 32, was arrested by the Fayette County Police Department in January for driving without a license. After his fingerprints were submitted to ICE under the Secure Communities program, officers discovered that Montalvo-Coreno was the subject of an Interpol warrant for a homicide committed in the Mexican State of Guanajuato in 2002.

ERO took custody of Montalvo-Coreno June 7 and detained him at the Stewart Detention Center. He was flown to Texas Thursday and turned over to officials from the Mexican Office of the General Attorney at the Laredo, Texas, port of entry.

"ICE works closely with our international law enforcement partners to identify, locate and deport aliens who are wanted in their home countries for allegedly committing heinous crimes," said Felicia Skinner, field office director of ERO Atlanta. "We will not allow criminal aliens to use the United States as a safe haven from their crimes." Skinner oversees ERO activities in Georgia and the Carolinas.

Since Oct. 1, 2009, ERO has removed more than 455 foreign fugitives from the United States who were being sought in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with ICE's Office of International Affairs, foreign consular offices in the United States, and Interpol to identify foreign fugitives illegally present in the country.

Dangerous Cartel Member Deported to Mexico

A fugitive female member of La Familia Michoacana cartel, for whom Mexico offered a $5 million peso reward, is in custody in her native country following her capture in Los Angeles and subsequent deportation.

Anel Violeta Noriega Rios, 27, was arrested without incident June 27 at her El Monte residence by U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) officers and other members of the U.S. Marshals Pacific Southwest Regional Fugitive Task Force. Noriega Rios was taken into custody on administrative immigration violations. Two days later she was transported to the border crossing in San Ysidro, Calif., and turned over to Mexican authorities under tight security.

Noriega Rios is charged in a 64-page criminal warrant issued in the Mexican state of Tamaulipas in January 2010 with ongoing involvement in organized crime and drug trafficking. Mexican authorities allege Noriega is one of La Familia's main U.S.-based operatives, helping oversee the organization's methamphetamine distribution activities in California and Washington state.

Rooted in the Mexican state of Michoacan, La Familia is known for being extremely violent. According to U.S. authorities, the cartel is engaged in narcotics trafficking, kidnapping, extortion and other criminal activities. In addition to distributing cocaine and marijuana, the organization is also believed to be heavily involved in producing methamphetamine for export to the United States.

"Last week's removal should be a reminder to fugitives in Mexico and around the world that we won't allow our borders to be barriers to bringing dangerous criminals to justice," said David Marin, acting field office director of ERO Los Angeles. "ICE will continue to work closely with its law enforcement counterparts in Mexico to assure the safety of law abiding citizens in both nations."

Mexican officials say Noriega Rios' capture is the direct result of the excellent cooperation between U.S. and Mexican authorities and the two countries' exchange of strategic information. Mexican officials note the case also demonstrates the ongoing commitment between ICE and the Office of the General Attorney of Mexico (PGR) to address matters of mutual concern.

Noriega Rios was deported to Mexico after ERO reinstated her prior order of removal from 2004. Department of Homeland Security databases indicate Noriega Rios was arrested and repatriated to Mexico five times by U.S. Customs and Border Protection-Border Patrol agents between 2004 and 2005. She had no criminal convictions in the United States.

Since Oct. 1, 2009, ERO has removed about 455 foreign fugitives from the United States who were being sought in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with ICE's Office of International Affairs, foreign consular offices in the United States, and Interpol to identify foreign fugitives illegally present in the country.