LEGAL : View Posts

The United Nations Secretary-General, Ban Ki-moon, said today that he is pleased to announce the launch of inclusive consultations aimed at restoring momentum towards a Yemeni-led political transition process, according to a statement released by his Spokesman.

“The Secretary-General urges all the participants to engage in these United Nations consultations in good faith and without preconditions,” said the statement. “The only durable resolution to the crisis in Yemen is an inclusive, negotiated political settlement.”

The consultations, which begin on 28 May in Geneva, will bring together a broad range of Yemeni Governmental and other actors, and follow extensive consultations by Mr. Ban’s Special Envoy, Ismail Ould Cheikh Ahmed, together with strong expressions of support by the Security Council in several resolutions seeking a peaceful and Yemeni-led political transition process.

In the most recent, Resolution 2216 (2015), members emphasized the need for a return to the application of the Gulf Cooperation Council Initiative and its Implementation Mechanism, and of the outcomes of the comprehensive National Dialogue Conference. They also reaffirmed full support for, and commitment to, UN efforts to relaunch the political dialogue.

The statement described how the different political and social constituencies of Yemen came together to chart a course for democratic change and a new vision for the country during the Comprehensive National Dialogue Conference.

“Tragically, Yemen has now slid into a conflict that risks spilling across its borders and that is having a dramatic impact on civilians, who are paying the highest price,” said the Spokesman. “The United Nations has worked closely with Yemenis since 2011 to support national aspirations for change. With this experience and coupled with Yemen’s tradition of dialogue, the Secretary-General hopes these consultations will help Yemen re-launch the political process, reduce the levels of violence and alleviate the intolerable humanitarian situation.”

SAN RAMON, Calif.,– Chevron Corporation (NYSE: CVX) has reached a settlement agreement with Woodsford Litigation Funding Limited, a U.K.-based litigation funder that provided $2.5 million in funding to the fraudulent lawsuit against Chevron in Ecuador. Chevron brought conspiracy claims against Woodsford in Gibraltar for the company’s role in funding and advancing the fraudulent lawsuit. In the settlement Woodsford has resolved those claims by withdrawing all financial support related to the Ecuador litigation and assigning all of its interest in the litigation to Chevron. Chevron, in turn, has agreed to release all of its claims against Woodsford and Woodsford’s Gibraltar-based funding entity, Temeraire Limited.

“We are pleased that yet another financial supporter of this fraudulent lawsuit has ended its involvement,” said R. Hewitt Pate, Chevron’s vice president and general counsel. “In settling this matter Woodsford is the latest in a growing list of former funders, investors, scientific experts and legal counsel who have abandoned this illicit scheme.”

Woodsford began funding the fraudulent lawsuit in March 2013. A year later, on March 4, 2014, Judge Lewis Kaplan of the U.S. District Court for the Southern District of New York ruled that the $9.5 billion judgment against Chevron in Ecuador was the product of fraud and racketeering activity, finding it unenforceable in the United States and holding Steven Donziger, the lead lawyer behind the lawsuit, liable for RICO violations.

In a public statement released today Woodsford stated:

“It is, and always has been, Woodsford Litigation Funding Limited’s position that, in March 2013, it acted in good faith and in the normal course of its business in providing funding to support the Lago Agrio plaintiffs in their litigation against Chevron Corporation. In light of the 4 March 2014 opinion by Judge Kaplan of the United States District Court for the Southern District of New York, and having become deeply concerned about the ethical standards of attorney Steven Donziger, Woodsford has decided to forego any financial benefit from this matter and to relinquish its entire interest in the proceeds of the litigation to Chevron.”

In settling this matter, Woodsford is the latest party, among many others, to disassociate from Donziger and the Lago Agrio Plaintiffs. In 2011 Burford Capital Limited, another U.K.-based litigation funder, withdrew its financial support after learning of Donziger’s misconduct. In February 2015 Russell DeLeon, who invested approximately $23 million in the lawsuit in exchange for a 7 percent stake in the $9.5 billion Ecuadorian judgment, withdrew his financial support. Woodsford, Burdford and DeLeon all repudiated the unethical tactics of Donziger and abandoned their financial interest in the fraudulent lawsuit. Both Woodsford and DeLeon have agreed to transfer any proceeds they receive from the litigation to Chevron upon its request.

During the seven-week federal racketeering trial against Donziger, more than a dozen former insiders and allies testified against him, including his former co-counsel, environmental consultants, funders, employees and Ecuadorian collaborators.

Chevron still has claims pending in Gibraltar against Amazonia Recovery Ltd., a Gibraltar-based company set up by Donziger and his associates to receive and distribute funds resulting from the Ecuadorian judgment against Chevron, and Pablo Fajardo, Luis Yanza and Ermel Chavez, who are directors of Amazonia Recovery Ltd. Chevron has alleged that Amazonia is merely a vehicle to perpetuate the ongoing fraud.

Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. The company’s success is driven by the ingenuity and commitment of its employees and their application of the most innovative technologies in the world. Chevron is involved in virtually every facet of the energy industry. The company explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.

SEATTLE — The University of Washington (UW) School of Law, supported by a number of leading Puget Sound-area businesses and law firms, today announced the creation of the Gregoire Fellows program. Launching in spring of 2015, the program is an initiative to promote and enhance diversity at the UW School of Law and the Seattle region’s legal profession. It is initially supported by Amazon.com Inc., Microsoft Corp., Nintendo of America Inc., Seattle Genetics Inc., Starbucks Corp., Vulcan Inc., Weyerhaeuser Co., Davis Wright Tremaine LLP, Foster Pepper PLLC, K&L Gates LLP, Lane Powell PC, Orrick, Herrington & Sutcliffe LLP, Perkins Coie LLP and Stoel Rives LLP.

The gap between diversity in the legal profession and diversity in the United States has worsened in recent years, according to the Microsoft-commissioned Raising the Bar study. To address that gap, stakeholders throughout the legal profession must take an active role in developing a pipeline of diverse law students and supporting them throughout their education.

“If we are to realize our goal of leadership for the global common good and of creating a legal profession as diverse as our society’s makeup, we need to encourage more under-represented students to enter the legal profession,” said Kellye Testy, UW Law Dean and Judge James W. Mifflin University Professor. “This innovative partnership will help us better reach students who are currently pursuing other paths. Moreover, by enhancing diversity in our classrooms we will enhance our academic excellence for all students. ”

The Gregoire Fellows program was formulated with this goal in mind. Nine Fellows who have the potential to increase diversity within the legal profession will be named for the UW School of Law’s entering class in the fall of 2015. They will receive paid summer fellowships within the participating law firms and departments after the first year of study, along with ongoing opportunities to participate in a mentorship program sponsored by former Washington State Governor Christine Gregoire, and financial assistance with bar exam preparation at the conclusion of their studies.

“In Washington, diversity is a community value, and it gives our state a base of strength and knowledge on which to build our future,” said former Washington governor and sponsor of the Fellows mentor program, Chris Gregoire. “We know that most law school graduates remain in the state to practice after graduation. The Fellows program offers the potential to increase diversity in both the legal profession and the judiciary to better represent our growing and diverse population in Washington.”

The UW School of Law, ranked in the top 10 among public law schools nationally, has a longstanding commitment to diversity and equality, yet faces many of the same challenges as law firms do in recruitment and retention. Today, the UW School of Law is working hard to increase diversity in the legal profession by closing a large gap between the number of under-represented students admitted to the school and the number of those who ultimately enroll.

Addressing this diversity gap will have a positive impact on the Seattle community. King County has grown increasingly more diverse, with 30 percent of residents identifying themselves as Black, Asian, Hispanic or mixed ethnicity in the most recent census. However, the Washington State Bar Association reported that all minorities represented only 12 percent of its membership in 2012.

“Diversity needs to be one of the core values of the legal profession, and it needs to become even more central than it is today,” said Brad Smith, general counsel and executive vice president of Legal and Corporate Affairs at Microsoft. “I believe we each have an important role to play in advancing diversity, and we are thrilled that so many Seattle-based legal entities have come together to create the Gregoire Fellows program to increase diversity in the legal profession in King County and Washington state.”

Participation by other firms and companies is welcomed.

On April 12, Freddie Gray, a 25-year-old native of Baltimore, was arrested by the city’s police. He died a week later.

The Department of Justice is now investigating the events that led to his death and today, President Obama offered his thoughts to the family and friends of Freddie Gray who are appropriately looking for answers while at the same time making clear there is “no excuse” for violence.

He noted that events in Baltimore called attention to the urgent need throughout the country to build trust between communities and their police.

“We have some soul-searching to do. This is not new. It’s been going on for decades.” – President Obama

“This has been going on for a long time,” the President said. “This is not new, and we shouldn’t pretend that it’s new. The good news is that perhaps there’s some newfound awareness, because of social media and video cameras and so forth, that there are problems and challenges when it comes to how policing and our laws are applied in certain communities and we have to pay attention to it.”

“If our society really wanted to solve the problem, we could — it’s just that it would require everybody saying, ‘This is important, this is significant.’” – President Obama

Every American has role to play in tackling this longstanding challenge. “We don’t just pay attention to these communities when a CVS burns, and we don’t just pay attention when a young man gets shot or has his spine snapped,” the President said. We should be “paying attention all the time because we consider those kids our kids, and we think they’re important and that they shouldn’t be living in poverty and violence.”

That is why President Obama is committed to promoting policies that would make a difference on unemployment, poverty, and other serious social challenges that continue to afflict too many communities across the country.

The President is also working with police departments and community leaders to implement recommendations from his Task Force on 21st Century Policing to help build trust between communities and law enforcement while maintaining public safety. From adopting new technologies to build trust to prioritizing de-escalation and avoiding provocative tactics to enhancing officer safety and wellness, these recommendations can begin to build a culture of trust that is needed to promote safety and justice in every community and for every individual, no matter who they are.

Washington, DC ~ Monday, April 27, 2015 – As I look out over all of you gathered here today, my overwhelming reaction is one of profound gratitude. I must, of course, thank the President for his faith in me in asking me to lead the department that I love to even greater heights.

Thank you, Mr. Vice President, for your presence and your comments here today, and for your steadfast support and wise counsel throughout the process. I also must thank Senators Schumer and Leahy for their support, over the years and now, and for making the floor of the U.S. Senate a welcoming place for me and my family. And of course, my wonderful family. As you can see, we’re quite a force multiplier!

Many of you have come to know my father through this process. He has been at every hearing and every vote. But he didn’t just start now. I remember looking up as a young Assistant U.S. Attorney starting my first trial and seeing him there – and he came to every one thereafter. He has encouraged me in all things, even when my choices were not the ones he would have made for me. In that, he has been the best of fathers. Without him, I would not be here today, being sworn in as the 83rd Attorney General of the United States, just one week after his 83rd birthday.

And my mother, who could not be here today but is never far from my thoughts or my heart. She grew up in a world where she was always told what she could not do or could not be, but always knew in her heart that she could soar. She did what would have seemed impossible in the small North Carolina town of her youth. She raised a daughter whom she always told, whatever the dream, whether lawyer, prosecutor or even Attorney General, “of course you can.”

I must also thank my wonderful husband, who has supported all of my choices and my dreams. I would not trade his love and support for all the riches in the world – because to me, they are all the riches in the world.

Thanks also go to my colleagues and friends here in the department, in the Eastern District of New York, and beyond. But even more than that, tremendous thanks go to the literally thousands of people, many of whom I have never met, who have expressed their support throughout the process. From the sisterhood of my sorority and all the Greeks who came together, to churches and schools and people on the street who have stopped me and said just a word or two – please know that those few words sometimes made all the difference in the world to me as I traveled this road.

I thank you all, as I prepare to join once again with the outstanding people of the Department of Justice. I have been privileged to stand shoulder-to-shoulder with you twice before from the Eastern District of New York. You are the ones who make real the promise of justice and redress for all Americans. I am honored beyond words to step into the larger role today as your Attorney General, as we continue the core work of our mission – the protection of the American people.

All of the people here at the department are here because at some point in our lives, we all said, “I want to be a lawyer.” “I want to be a law enforcement officer.” “I want to be a federal agent.” “I want to be someone’s hero.”

At the heart of that – for me and for all of us – whether attorney or agent, staff or principal – is the desire to leave this world a better place for us having been a part of it.

The challenge in that – for you, for me, for all of us that love this department and love the law – is to use the law to that end. To not just represent the law and enforce it, but use it to make real the promise of America, the promise of fairness and equality, “of liberty and justice for all.” We are all just here for a time – whether in this building or even on this earth. But the values we hold dear will live on long after we have left this stage. Our responsibility, while we are here, is to breathe life into them; to imbue them with the strength of our convictions and the weight of our efforts.

I know this can be done.

Because I am here to tell you, if a little girl from North Carolina who used to tell her grandfather in the fields to lift her up on the back of his mule, so she could see “way up high, Granddaddy,” can become the chief law enforcement officer of the United States of America, then we can do anything.

We can imbue our criminal justice system with both strength and fairness, for the protection of both the needs of victims and the rights of all. We can restore trust and faith both in our laws and in those of us who enforce them. We can protect the most vulnerable among us from the scourge of modern-day slavery – so antithetical to the values forged in blood in this country. We can protect the growing cyber world. We can give those in our care both protection from terrorism and the security of their civil liberties. We will do this as we have accomplished all things both great and small – working together, moving forward, and using justice as our compass.

I cannot wait to begin that journey.

Thank you all for being here, both today and in my life.

Thank you.

The Special Chamber of the International Tribunal for the Law of the Sea formed to deal with the dispute concerning delimitation of the maritime boundary between Ghana and Côte d’Ivoire in the Atlantic Ocean today delivered its Order on a Request for provisional measures filed by Côte d’Ivoire. Judge Boualem Bouguetaia, President of the Special Chamber, read the Order at a public sitting of the Chamber.

The dispute was submitted, by way of special agreement concluded between the two States concerned on 3 December 2014, to a special chamber formed in application of article 15, paragraph 2, of the Statute of the Tribunal. The case was entered as No. 23 in the List of cases of the Tribunal.

The Request for provisional measures was submitted to the Special Chamber by Côte d’Ivoire on 27 February 2015. At the public hearing held on 29 and 30 March 2015, Côte d’Ivoire requested the Special Chamber to prescribe provisional measures requiring Ghana to:
o take all steps to suspend all ongoing oil exploration and exploitation operations in the disputed area;
o refrain from granting any new permit for oil exploration and exploitation in the disputed area;
o take all steps necessary to prevent information resulting from past, ongoing or future exploration activities conducted by Ghana, or with its authorization, in the disputed area from being used in any way whatsoever to the detriment of Côte d’Ivoire;
o and, generally, take all necessary steps to preserve the continental shelf, its superjacent waters and its subsoil; and
o desist and refrain from any unilateral action entailing a risk of prejudice to the rights of Côte d’Ivoire and any unilateral action that might lead to aggravating the dispute.

At the same public hearing, Ghana requested the Special Chamber to deny all of Côte d’Ivoire’s requests for provisional measures. In its Order of 25 April 2015, having found that it has prima facie jurisdiction over the dispute, the Special Chamber notes that the power to prescribe provisional measures under article 290, paragraph 1, of the Convention has as its object the preservation of the respective rights of the parties to the dispute or the prevention of serious harm to the marine environment pending the final decision (paragraph 39). It considers however that it may not prescribe provisional measures unless it finds that there is a real and imminent risk that irreparable prejudice may be caused to the rights of the parties in dispute (paragraph 41). Concerning the rights which Côte d’Ivoire claims on the merits and seeks
to protect, the Chamber states that, before prescribing provisional measures, it need only satisfy itself that these rights are at least plausible (paragraph 58) and finds that Côte d’Ivoire has presented enough material to show that the rights it seeks to protect in the
disputed area are plausible (paragraph 62).

In relation to Côte d’Ivoire’s request for provisional measures to prevent serious harm to the marine environment, the Chamber finds that Côte d’Ivoire has not adduced sufficient evidence to support its allegations that the activities conducted by Ghana in the disputed area are such as to create an imminent risk of serious harm to the marine environment (paragraph 67). The Special Chamber underlines however that the risk of
serious harm to the marine environment is of great concern to it (paragraph 68) and that the Parties should in the circumstances “act with prudence and caution to prevent serious harm to the marine environment” (paragraph 72).

The Special Chamber also considers that there is a risk of irreparable prejudice where, in particular, activities result in significant and permanent modification of the physical character of the area in dispute and where such modification cannot be fully compensated by financial reparations (paragraph 89) and that whatever its nature, any compensation awarded would never be able to restore the status quo ante in respect of the seabed and subsoil (paragraph 90). This situation may affect the rights of Côte d’Ivoire in an irreversible manner if the Special Chamber were to find in its decision on the merits that all or any part of the area in dispute belongs to Côte d’Ivoire (paragraph 91). The Chamber therefore considers that the exploration and exploitation activities, as planned by Ghana, may cause irreparable prejudice to the sovereign and exclusive rights invoked by Côte d’Ivoire in the continental shelf and superjacent waters of the disputed area, before a decision on the merits is given by the Special Chamber, and that the risk of such prejudice is imminent (paragraph 96).

The Special Chamber further notes that, in accordance with article 89, paragraph 5, of the Rules, it may prescribe measures different in whole or in part from those requested (paragraph 97).

In the view of the Special Chamber, the suspension of ongoing activities conducted by Ghana in respect of which drilling has already taken place would entail the risk of considerable financial loss to Ghana and its concessionaires and could also pose a serious danger to the marine environment resulting, in particular, from the deterioration of equipment (paragraph 99). It therefore considers that an order suspending all exploration or exploitation activities conducted by or on behalf of Ghana in the disputed area, including activities in respect of which drilling has already taken place, would cause prejudice to the rights claimed by Ghana and create an undue burden on it and that such an order could also cause harm to the marine environment (paragraphs 100 and 101).

The Special Chamber considers it appropriate, in order to preserve the rights of Côte d’Ivoire, to order Ghana to take all the necessary steps to ensure that no new drilling either by Ghana or under its control takes place in the disputed area (paragraph 102).

Pursuant to article 95, paragraph 1, of the Rules, the Special Chamber requests each Party to submit a report and information on compliance with the provisional measures prescribed not later than 25 May 2015.

The operative provisions of the Order of 25 April 2015 read as follows:
“THE SPECIAL CHAMBER,
(1) Unanimously, Prescribes, pending the final decision, the following provisional measures under article 290, paragraph 1, of the Convention:
(a) Ghana shall take all necessary steps to ensure that no new drilling either by Ghana or under its control takes place in the disputed area …;
(b) Ghana shall take all necessary steps to prevent information resulting from past, ongoing or future exploration activities conducted by Ghana, or with its authorization, in the disputed area that is not already in the public domain from being used in any way whatsoever to the detriment of Côte d’Ivoire;
(c) Ghana shall carry out strict and continuous monitoring of all activities undertaken by Ghana or with its authorization in the disputed area with a view to ensuring the prevention of serious harm to the marine environment;
(d) The Parties shall take all necessary steps to prevent serious harm to the marine environment, including the continental shelf and its superjacent waters, in the disputed area and shall cooperate to that end;
(e) The Parties shall pursue cooperation and refrain from any unilateral action
that might lead to aggravating the dispute.
(2) Unanimously,
Decides that Ghana and Côte d’Ivoire shall each submit to the Special Chamber the initial report referred to in paragraph 105 not later than 25 May 2015, and authorizes the President of the Special Chamber, after that date, to request such information from the Parties as he may consider appropriate after that date.
(3) Unanimously,
Decides that each Party shall bear its own costs.”
Judge ad hoc Mensah appends a separate opinion to the Order of the Special Chamber.

Marking National Crime Victims’ Rights Week this week, Attorney General Eric Holder and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division announced that the Justice Department’s Asset Forfeiture Program has returned more than $4 billion in civilly and criminally forfeited funds to crime victims since fiscal year 2002, with $723 million paid to over 150,000 crime victims in the last three years alone. The funds were distributed through the victim compensation program managed by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS).

“The Justice Department’s victim compensation program is an integral part of the asset forfeiture program and our efforts to take the profits out of crime, to restore assets to their rightful owners, and to provide real and meaningful justice to the victims of wrongdoing,” said Attorney General Holder. “The scale and scope of the returns made to victims under the program in recent years have been especially impressive. And going forward, as we continue our ongoing review of our asset forfeiture practices, we are committed to taking all appropriate measures to use this tool fairly, effectively, and with the greatest possible benefit to the American people.”

“The return of forfeited funds to crime victims is a priority of the civil and criminal forfeiture actions brought under the Asset Forfeiture Program,” said Assistant Attorney General Caldwell. “Success such as this would not be achievable without the efforts of prosecutors in the Criminal Division and U.S. Attorneys’ Offices around the country, as well as the many federal, state and local law enforcement agents contributing time and resources to these investigations. Make no mistake: forfeiture not only takes the money out of crime, but it’s among our most powerful tools to make victims whole.”

AFMLS partners with U.S. Attorneys’ Offices, federal law enforcement agencies, federal regulatory agencies, court-appointed receivers, private claim administrators, and private class action attorneys to return forfeited assets to crime victims.

Recent noteworthy cases in which victims were compensated for their losses with forfeited assets include:

$62.2 Million to Victims of MoneyGram Fraud

United States v. MoneyGram International Inc. (Middle District of Pennsylvania)

On Nov. 9, 2012, MoneyGram International Inc., a global money services business, entered into a deferred prosecution agreement (DPA) with the Justice Department. In doing so, MoneyGram admitted that corrupt MoneyGram agents across the country engaged in various consumer fraud schemes, including “grandparent” schemes in which a caller pretended to be the victim’s grandchild requesting money, and “advance fee” schemes requiring payment of fees to receive purported lottery winnings. These schemes resulted in victims sending over $100 million via MoneyGram to the criminals, and that amount was administratively forfeited as part of the DPA by the U.S. Postal Inspection Service. Over 22,000 victims who were fraudulently enticed to send money through corrupt agents have received a total of $62.2 million and been fully compensated for their losses.

$25.5 Million to Victims of Scott W. Rothstein

United States v. Scott W. Rothstein (Southern District of Florida)

From 2005 through 2009, attorney Scott W. Rothstein operated a massive Ponzi scheme through his now-defunct Fort Lauderdale law firm. Over 400 victims attempted to invest more than $1 billion in purported confidential civil settlement agreements upon Rothstein’s promise of substantial future payouts. In reality, the settlement agreements did not exist, but were part of an elaborate scam in which Rothstein either retained the funds or used them to pay earlier investors. Prosecutors forfeited more than $28 million in bank accounts, real property, vehicles, jewelry and investment accounts as proceeds of the fraud. Through a combination of the forfeiture proceeds, and other legal efforts, qualifying victims have received over $500 million in recoveries to date.

$14.6 Million to Victims of Allen Hilly

United States v. $7,599,358.09 (District of New Jersey)

In 2007, Allen Hilly was indicted on charges that he fraudulently obtained more than $18 million in federal tax and workers’ compensation withholdings. When Hilly died before his case could proceed to trial, prosecutors initiated civil forfeiture proceedings to pursue the fraud proceeds. As a result of the successful civil forfeiture, in 2014, over $14.6 million was returned to nine victims, including the Internal Revenue Service and the Illinois Department of Insurance, which paid out claims to injured employees who otherwise would not have received payments due to Hilly’s fraud.

$11.7 Million to the Centers for Medicare and Medicaid Services

United States v. One Helicopter and United States v. One Parcel (Southern District of Florida)

Brothers Luis, Carlos and Jose Benitez were indicted in May 2008 for their alleged involvement in a $110 million scheme to defraud Medicare through the use of 11 South Florida clinics they owned and operated. According to papers filed in court, the Benitez Brothers filed false claims and caused others to pay kickbacks to Medicare recipients who fraudulently claimed they received HIV infusion services at the clinics in order to obtain Medicare benefits in excess of $84 million. After being charged with health care fraud and money laundering, the brothers fled to Cuba and remain fugitives. The department filed three civil forfeiture actions that, to date, have resulted in the recovery of property, including a helicopter, hotel, a water park, 30 vehicles, a car rental agency, houses, condos, and apartments. Thus far, $11.7 million is available to return to Medicare as compensation for losses resulting from the fraud.

$10 Million to Victims of Traders International Return Network Fraud

United States v. David Merrick (Middle District of Florida)

Between 2008 and 2009, David Merrick operated a Panamanian-based corporation called Traders International Return Network (TIRN), which claimed to be a legitimate private investment club with offices located in Dubai, Kuala Lumpur, Malaysia and Switzerland. Court filings detail how Merrick created shell corporations, disseminated false monthly dividend reports, and recruited investors through a website and in person. Over 770 victims suffered $12 million in losses as a result of Merrick’s scheme. Approximately $10 million in forfeited funds have been returned to date to the victims.

$9.2 Million to the City of Dixon, Illinois

United States v. Rita A. Crundwell (Northern District of Illinois); United States v. Have Faith in Money, et al. (Northern District of Illinois)

For over 20 years, Rita Crundwell used her position as comptroller for the City of Dixon, Illinois to embezzle more than $53 million from the city. An investigation revealed that Crundwell used the embezzled funds to pay for numerous personal and business expenses, including the establishment of a large horse farming and showing operation. Crundwell was convicted of wire fraud and forfeited over 500 assets, including more than 300 horses and associated show items. The U.S. Marshals Service assumed responsibility for the care of the horses seized in 13 states, which included overseeing the births of more than 80 foals. Ultimately, liquidation of the forfeited assets generated $9.2 million, which has been paid to the City of Dixon.

$8.8 Million to Victims of Zaveri Oil and Gas Fraud

United States v. Ashvin Zaveri (Western District of New York)

Ashvin Zaveri was charged with orchestrating a Ponzi scheme that enticed investors to invest in sham oil and natural gas explorations in Tennessee and Kentucky. Due to his untimely death, the criminal case against Zaveri was dismissed. However, the U.S. Attorney’s Office commenced a civil forfeiture action against the proceeds of Zaveri’s life insurance policy. Approximately $8.8 million obtained through civil forfeiture was returned to more than 100 victims of the scheme.

$4.5 Million to Victims of Xybernaut Fraud

United States v. Zev Saltsman (Eastern District New York)

Xybernaut Corporation, headquartered in Northern Virginia, was a provider of wearable mobile computing hardware, software and services. In October 2007, Xybernaut’s founders were indicted for securities fraud and money laundering in connection with a kickback scheme. Hundreds of millions of Xybernaut shares were issued at below market prices to several purchasers in exchange for kickbacks paid to the founders. Approximately $4.5 million in assets forfeited from various defendants has been distributed to over 12,000 victims.

$4.5 Million to South Dakota Health Care Provider

United States v. Gerald Lloyd Larson (District of South Dakota)

Gerald Larson was convicted of embezzling funds from his employer, a South Dakota health care provider. During the course of his scheme, he embezzled almost $5 million. Shortly after his conviction in January 2015, the U.S. Attorney for the District of South Dakota requested a transfer of approximately $4.5 million in forfeited assets to the Clerk of Court to compensate the victim.

Priceless Artifact Returned to Harvard

United States v. One Qing Dynasty Jadeite Lobed Censer & Cover (District of Massachusetts)

In 1979, an 18th Century Qing Dynasty jade incense holder was stolen from the Harvard Art Museums. In 2009, the artifact resurfaced at a Hong Kong auction house, which ran a search in the Art Loss Register database and discovered that the jade censer being offered for sale matched the censer stolen from Harvard. The Art Loss Register then notified U.S. Immigration and Customs Enforcement officials of the censer’s reappearance. Thereafter, the U.S. Attorney’s Office commenced a civil forfeiture action and obtained a civil warrant to seize the artifact. After successful civil proceedings, the United States returned the stolen artifact to the Harvard Art Museums in January 2014, over 30 years after the original theft.

For additional information about the Department of Justice’s victim compensation program, please visit http://www.justice.gov/criminal/afmls/victims/.

At a joint meeting of Foreign and Interior Ministers, chaired by High Representative / Vice-President Federica Mogherini and held in Luxembourg, Migration, Home Affairs and Citizenship Commissioner Avramopoulos presented a 10 point plan of the immediate actions to be taken in response to the crisis situation in the Mediterranean. The plan received the full backing of Foreign and Interior Ministers.

High Representative/Vice-President Federica Mogherini and Commissioner Dimitris Avramopoulos jointly stated: “We need to show that same collective European sense of urgency we have consistently shown in reacting in times of crisis. The dire situation in the Mediterranean is not a new nor a passing reality. That is why the Commission will come forward with a comprehensive European Agenda on Migration in May to address the structural problems. The 10 actions we have agreed upon today are the direct, substantial measures we will take to make an immediate difference. All of these actions require our common effort, the European institutions and the 28 Member States. We will convey these proposals to the European Council which will meet on Thursday in an extraordinary session to address the situation in the Mediterranean. This is what Europe taking responsibility is – all of us working together.”

Ten points
Reinforce the Joint Operations in the Mediterranean, namely Triton and Poseidon, by increasing the financial resources and the number of assets. We will also extend their operational area, allowing us to intervene further, within the mandate of Frontex;
A systematic effort to capture and destroy vessels used by the smugglers. The positive results obtained with the Atalanta operation should inspire us to similar operations against smugglers in the Mediterranean;
EUROPOL, FRONTEX, EASO and EUROJUST will meet regularly and work closely to gather information on smugglers modus operandi, to trace their funds and to assist in their investigation;
EASO to deploy teams in Italy and Greece for joint processing of asylum applications;
Member States to ensure fingerprinting of all migrants;
Consider options for an emergency relocation mechanism;
A EU wide voluntary pilot project on resettlement, offering a number of places to persons in need of protection;
Establish a new return programme for rapid return of irregular migrants coordinated by Frontex from frontline Member States;
Engagement with countries surrounding Libya through a joined effort between the Commission and the EEAS; initiatives in Niger have to be stepped up.
Deploy Immigration Liaison Officers (ILO) in key third countries, to gather intelligence on migratory flows and strengthen the role of the EU Delegations.

WASHINGTON—The United States and the Kingdom of Saudi Arabia today jointly took action to disrupt the financing and operations of Al-Furqan Foundation Welfare Trust (Al-Furqan), which is the successor entity to the Afghan Support Committee (ASC) and Revival of Islamic Heritage Society branches in Pakistan and Afghanistan (RIHS-Pakistan). Both were designated as Specially Designated Global Terrorists (SDGT) and listed on the United Nations (UN) al-Qaida Sanctions List in 2002. The U.S. Department of the Treasury has updated the existing SDGT designations of ASC and RIHS-Pakistan because they are a single organization that changed its name to Al-Furqan Foundation Welfare Trust in order to continue its terrorist financing activities. The Kingdom of Saudi Arabia designated Al-Furqan under its Law of Terrorism Crimes and Financing and the Royal Decree A/44.

“Today’s joint action reflects the strength of U.S. and Saudi cooperation on countering the financing of terrorism,” said Adam J. Szubin, Acting Under Secretary for Terrorism and Financial Intelligence at the U.S. Department of the Treasury. “We are committed to exposing terrorist financiers, especially those who masquerade as charities.”

Since its establishment in the mid-2000s, Al-Furqan has provided funding and other support to terrorist organizations such as al-Qaida, the Taliban, and Lashkar-e-Tayyiba. Al-Furqan also has provided funding and other support to terrorist facilitator Shaykh Aminullah, who was designated by the United States and the UN in 2009, and other extremists in Afghanistan and Pakistan.

Today’s amendment updates the listing for this entity as SDGT, freezing any assets under U.S. jurisdiction. U.S. persons are generally prohibited from doing business with this entity. Further, any assets of this entity under Saudi jurisdiction are also frozen, and Saudi citizens are generally prohibited from doing business with it.

Purported Charity Changes Name to Avoid Scrutiny

RIHS-Pakistan changed its name to Al-Furqan after the United States and the UN designated ASC and RIHS-Pakistan in January 2002 for funding al-Qaida. In circa 2004, Al-Furqan replaced ASC after ASC’s designation in January 2002 by the U.S. and the UN for supporting al-Qaida. Al-Furqan was affiliated with and received direct support from U.S.-designated RIHS headquarters in Kuwait. In October 2013, a poster on RIHS’s website depicted RIHS development projects in Pakistan that displayed the emblem of Al-Furqan, suggesting that RIHS was conducting its activities in Pakistan through Al-Furqan. In February 2014, an RIHS social media website depicted another RIHS development project in Pakistan featuring the Al-Furqan emblem.

Al-Furqan’s Terrorist Support Activities

Al-Furqan is a charitable organization that is a major conduit of financial and material support for terrorist groups and their activities in Pakistan and Afghanistan, in some cases under the guise of humanitarian work. As of November 2013, Al-Furqan was providing funding for the U.S. designated terrorist training center Ganj Madrassa, which was controlled by al-Qaida facilitator Shaykh Aminullah. Al-Furqan was used to manage financial transactions between individuals in the Gulf and Pakistan in support of the Afghan insurgent movement led by Shaykh Aminullah. Afghan insurgent money managers gained access to funds through Al-Furqan with a special note written by Shaykh Aminullah.

As of mid-2014, Al-Furqan’s management provided tens of thousands of U.S. dollars to Lashkar-e-Tayyiba leadership. Some of this money was obtained as a result of Al-Furqan’s revenue streams from individuals in the Gulf. As of November 2013, Al-Furqan’s management was affiliated with an Afghan insurgent organization that coordinated militant activities with Lashkar-e-Tayyiba. Al-Furqan as of November 2013 has provided aid shipments for unspecified projects in Kashmir, which were delivered under the protection of Lashkar-e-Tayyiba. As of January 2011, Al-Furqan financed two Pakistan-based madrassa directors who fought for Lashkar-e-Tayyiba, sent madrasa students to fight for Lashkar-e-Tayyiba in Afghanistan, and used Al-Furqan’s funding to stage cross-border attacks in Afghanistan. As of August 2014, Al-Furqan was used to transfer funding on behalf of al-Qaida from sources in the Gulf.

Identifying information:

Entity: Al-Furqan Foundation Welfare Trust
AKA: Al-Furqan Welfare Foundation
AKA: Forkhan Relief Organization
AKA: Al-Furqan al-Khariya
AKA: Al-Furqan Kharia
AKA: Al-Forqan Al-Khairya
AKA: Al-Furqan Ul Khaira
AKA: Al-Furqan Charitable Foundation
AKA: Social Development Foundation
AKA: Organization for Peace and Development Pakistan
AKA: Raies Khilqatul Qurania Foundation of Pakistan
AKA: Al-Furkan
AKA: Al-Forkan
AKA: Mosasa-Tul-Forqan
AKA: Moassesa al-Furqan
AKA: Al-Mosasatul Furqan
AKA: Al Mosusta Furqan
AKA: Jamiat al-Furqan
AKA: Lajnatul Furqan
AKA: Hayat ur Ras Al-Furqan
AKA: Hiyat Oraz Al Islamiya
AKA: Jamito Ahia Toras al-Islami
AKA: Jamiat al-Haya al-Sarat
AKA: Ahya Utras
AKA: Ahiyahu Turus
AKA: Hayatutras
AKA: Hayaturas
AKA: Al-Turaz Trust
AKA: Al-Turaz Organization
AKA: Hitras
Address: House Number 56, E. Canal Road, University Town, Peshawar, Pakistan
Alt. address: Near old Badar Hospital in University Town, Peshawar, Pakistan
Alt. address: Chinar Road, University Town, Peshawar, Pakistan

Following a public comment period, the Federal Trade Commission has approved two final orders settling charges that Sony Computer Entertainment America LLC (Sony) and its advertising agency at the time falsely advertised certain capabilities of the company’s PlayStation Vita (PS Vita) handheld gaming console introduced for sale in 2012.

According to the FTC’s complaints, announced jointly in November 2014, Sony deceived consumers with false advertising claims about several “game changing” technological features of the PS Vita in late 2011 and early 2012. The Commission alleged that Deutsch LA, Sony’s advertising agency for the PS Vita launch, knew or should have known that the advertisements it produced contained misleading claims about the console’s capabilities.

The FTC also alleged that Deutsch LA misled consumers by urging its employees to create awareness and excitement about the PS Vita on Twitter, without instructing them to disclose their connection to the advertising agency or its then-client Sony.

In the FTC’s order with Sony, it is barred from making misleading advertising claims about the features or attributes of its handheld gaming consoles in the future. Under the order, Sony will provide consumers who bought a PS Vita gaming console before June 1, 2012, either a $25 cash or credit refund, or a $50 merchandise voucher for select video games, and/or services.

The FTC’s order with Deutsch LA bars it from making similar misrepresentations as Sony, and bars misrepresentations that an endorser of any game console product or video game product is an independent user or ordinary consumer of the product. It also requires the agency to disclose a material connection, where one exists, between any endorser of a game console product or video game product and Deutsch LA or other entity involved in the manufacture or marketing of the product.

The Commission vote to approve the final consent orders and send letters to members of the public who submitted comments was 5-0. (FTC File No. 122-3252; the staff contacts are Linda Badger and Matthew Gold , FTC’s Western Region, San Francisco, 415-848-5100)

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP FREE (1-877-382-4357 FREE). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook (link is external), follow us on Twitter (link is external), and subscribe to press releases for the latest FTC news and resources.

U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office, Commissioner William J. Bratton of the New York City Police Department and Special Agent in Charge Raymond R. Parmer Jr. of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) New York announced that earlier today, a federal grand jury in Brooklyn, New York, returned a superseding indictment charging Dilkhayot Kasimov, 26, a Brooklyn resident, with attempt and conspiracy to provide material support to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. The defendant, who is charged along with three other Brooklyn residents whose arrests were first announced on Feb. 25, 2015, is scheduled to be arraigned on Wednesday, April 8, 2015, at 2 p.m., before U.S. District Judge William F. Kuntz II of the Eastern District of New York.

As alleged in the superseding indictment and other court filings, the investigation began last year when Abdurasul Hasanovich Juraboev, one of Kasimov’s co-defendants, came to the attention of law enforcement after posting on an Uzbek-language website that propagates ISIL’s ideology. The investigation subsequently revealed that Juraboev and another co-defendant, Akhror Saidakhmetov, planned to travel to Turkey and then to Syria for the purpose of waging violent jihad on behalf of ISIL. Saidakhmetov was arrested on Feb. 25, 2015, at John F. Kennedy International Airport, where he was attempting to board a flight to Istanbul. Juraboev previously purchased a plane ticket to travel from New York to Istanbul and had been scheduled to leave the United States in March 2015.

Working closely with co-defendant Abror Habibov, Kasimov allegedly helped fund Saidakhmetov’s efforts to join ISIL. Kasimov and Habibov collected over $1,600 from multiple individuals for Saidakhmetov to use in Syria. Kasimov thereafter delivered the money to Saidakhmetov at Kennedy Airport shortly before Saidakhmetov was apprehended trying to board his flight in February. Additional investigation uncovered electronic messages in which Kasimov encouraged others to participate in violent jihad and made clear his role in facilitating the travel of foreign fighters to Syria.

“This defendant is the fourth Brooklyn resident charged as part of the same network of individuals who are alleged to have conspired and attempted to provide material support to ISIL,” said U.S. Attorney Lynch. “Terrorist support networks like the one this defendant was involved in offer critical funding, travel logistics, and encouragement to persons seeking to join ISIL and other foreign terrorist organizations. We will remain vigilant in our efforts to stem the flow of foreign fighters to Syria and to disrupt and dismantle the networks, here and abroad, that support them.” U.S. Attorney Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which comprises a large number of federal, state and local agencies from the region.

“Dilkhayot Kasimov allegedly attempted and conspired with others to provide material support to ISIL,” said Assistant Attorney General Carlin. “The National Security Division remains committed to holding accountable all who seek to provide material support to designated foreign terrorist organizations. I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”

“Kasimov served as a money man in support of a co-defendant’s efforts to join ISIL,” said Assistant Director in Charge Rodriguez. “He provided encouragement and facilitated travel for foreign fighters. As the recent series of cases indicate, we will pursue every lead and every person who succumbs to this radical agenda. It is my hope that these cases deter others from sharing Kasimov’s fate: being under arrest and in trouble with the law.”

“Money is the oxygen that fuels terrorism,” said Commissioner Bratton. “This investigation proves again that we will leave no stone unturned to disrupt the finance, support, or membership in terrorist organizations like ISIL.”

“These arrests are the culmination of an extensive joint law enforcement effort to disrupt the recruitment of alleged terrorist sympathizers,” said Special Agent in Charge Parmer. “ICE-HSI will continue to use its unique immigration and customs authorities to assist our domestic and international law enforcement partners to stop jihadists from supporting terrorist organizations such as ISIL.”

If convicted, the defendant faces a maximum sentence of 30 years in prison. The charges in the superseding indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being handled by Assistant U.S. Attorneys Alexander Solomon, Douglas M. Pravda and Peter W. Baldwin of the Eastern District of New York, with assistance provided by Trial Attorney Danya Atiyeh of the Justice Department’s National Security Division.

Building on his commitment to address instances of unfairness in sentencing, President Obama granted 22 commutations today to individuals serving time in federal prison. Had they been sentenced under current laws and policies, many of these individuals would have already served their time and paid their debt to society. Because many were convicted under an outdated sentencing regime, they served years — in some cases more than a decade — longer than individuals convicted today of the same crime.

In total, the 22 commutations granted today underscore the President’s commitment to using all the tools at his disposal to bring greater fairness and equity to our justice system. Further, they demonstrate how exercising this important authority can remedy imbalances and rectify errors in sentencing. Added to his prior 21 commutations, the President has now granted 43 commutations total. To put President Obama’s actions in context, President George W. Bush commuted 11 sentences in his eight years in office.

To further this progress, the President has established a clemency initiative to encourage individuals who were sentenced under outdated laws and policies to petition for commutation. At his direction, significant reforms have followed, such as the promulgation of new criteria for potential commutation candidates to meet, including those who pose no threat to public safety, have a clean record in prison, and have been sentenced under out-of-date laws. In addition, the Department of Justice has raised awareness about how to petition for commutation to ensure that every federal inmate who believes they are deserving of this invaluable second chance has the opportunity to ask for it.

Underscoring the responsibility that a commutation brings, the President penned a letter to each of the 22 individuals receiving clemency today, recognizing their potential to overcome the mistakes they made and encouraging them to make good choices moving forward.

While today’s announcement represents important progress, there’s more work ahead. The Administration will continue to work to review thoroughly all petitions for clemency. And, while commutation is an important tool for those seeking justice and fairness in our penal system, it is nearly always an option of last resort, coming after a lengthy court process and many years behind bars. That is why President Obama is committed to working with Democrats and Republicans on sensible reforms to our criminal justice system that aim to give judges more discretion over mandatory minimum sentencing. As the Department of Justice has noted, mandatory minimum sentences have at times resulted in harsher penalties for non-violent drug offenders than many violent offenders and are not necessary for prosecutions at this level.

Already, one significant reform has become law. In 2010, the President signed the Fair Sentencing Act, which reduced the disparity in the amounts of powder cocaine and crack cocaine required for the imposition of mandatory minimum penalties. The President is encouraged by the bipartisan support for improving our criminal justice system, including promising legislation that would implement front-end changes in sentencing. In addition, he supports bipartisan efforts to provide back-end support through better education and job training for those currently incarcerated and to reform of our juvenile justice system to build on the significant reductions in the number of youth being held in secure facilities.

Ensuring fairness in our criminal justice system will require ongoing efforts to invest in the types of programs that help prevent individuals from turning to crime, like education and jobs, as well as changes to our sentencing laws to ensure that the punishment really does fit the crime. As we work to make those improvements, the President will continue to use his clemency authority in certain instances where justice, fairness, and proportionality demand it, and to give eligible and worthy individuals who have paid their debt to society a chance to contribute in meaningful ways.