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NAPABA Conference

November 7, 2015

Columbus 5005196

1

U.S. Attorneys’ Roundtable

Albert LinIce Miller LLP

250 West StreetColumbus, Ohio 43215

(614) [email protected]


Introduction

The Districts and U.S. Attorneys

The Appointment Process

Trends & Cases

Policies

Conclusion

2

Agenda


U.S. Attorneys are the “local” office for the Department of Justice

Districts have a large geographic footprint, large population

Post-financial crises, there is a renewed focus on criminal and civil enforcement

Provide information on:

U.S. Attorneys

Trends

Cases

Better understand the offices

Familiarity in resolving cases3

Introduction


Appointed in 2009

U.S. Attorney for S.D. Ohio

District covers southern Ohio, including Columbus, Dayton, Cincinnati

Population of over 5 million

Member of AG’s Advisory Committee 2012-14

Child Exploitation Working Group

Racial Disparities Working Group

4

U.S. Att’y for S.D. Ohio: Carter Stewart


Appointed in 2009

U.S. Attorney for D. Hawaii

District covers Hawaii

Population of 1.4 million

Over 150,000 square miles of protected federal lands and ocean

Over 35 years in federal service

5

U.S. Att’y for D. Hawaii: Florence Nakakuni


Appointed in 2010

Jurisdiction covers District of Guam and District of NMI

Population:

Guam 162,000

NMI 53,000

Guam 212 sq miles (549 sq km)

3x size of Washington DC

NMI 179 sq miles (464 sq km)

NMI (14 islands including Saipan, Rota and Tinian)

2.5x size of Washington DC

Former elected A.G. of Guam

6

U.S. Att’y For D. Guam & N. Mariana Islands:Alicia Limtiaco


7

.

Guam & N.M.I.: Gateway to Asia


What attracted you to the positionPublic service

Management

Prosecutorial discretion

Wide-angle impact

Like most federal positions, an open application process

Approved by home state Senator or Delegate

Vetted by DOJ

Appointed by President

8

The U.S. Attorney Appointment Process


Reputation as lawyer

Civil v. Criminal

Experience in federal service

Relationships

With Senate staff

With the presidential administration

With state government

9

Getting Noticed


Detailed FBI background check

Voluminous and detailed disclosures

Every place you have lived

Every case you have litigated

Every place you have worked

Every supervisor you had

Every speech you’ve made, every writing you have published

Recommendations

10

The Application


Staff Interview

Detailed inquiry into past work performance

Making sure had substantial litigation experience

Relationships

Sen. Inouye Interview

Sen. Akaka Interview

11

The Home State Interview: Hawaii


Vetting by Sen. Brown Staff

Judicial appointment panel interview

Over a dozen prominent attorneys from the N.D. Ohio

Competitive interview process

Detailed inquiry into background and work history

Sen. Brown Interview

Sen. Voinovich

Management experience

Record as AUSA and in private practice

12

The Home State Interview: S.D. Ohio


Elected A.G. 2006, served 2007 to 2010Meetings with Congresswoman Bordallo

Record as A.G.Professionalizing the office

Collaboration and cooperation

Criminal prosecution and civil enforcementVictims and families

Multidisciplinary task forces and coalitions

Commitment to public service as prosecutorCommunity service and involvement

Government, nonprofits, civic orgs. and private sector

Experience in private practice

13

The Home State Interview: D. Guam & D. N.M.I.


Staff Interview

Background and Work History

David Margolis

Policy questions

Legal heroes

AG Interview

Questions about background

Skeletons

Ideas for the Office

14

DOJ Interviews


Keep great historical records

Disclose everything up front

Policy position at odds with current administration

Prior indiscretions

Reputation and standing in local community matters a lot

15

Appointment Takeaways


National Security

Environmental

Public Corruption

Human Trafficking

White Collar Cases

Drugs & Violent Crime

16

Trends & Cases


Every district’s top priority

Terrorism

Government or military espionage

Industrial espionage

17

National Security


United States v. Abdirahman Mohamud

23 year old Columbus resident

Charged with providing material support to terrorists

Travelled to Syria to obtain terrorist training

Instructed to return to U.S. to commit an act of terrorism

United States v. Cornell

21 year old Cincinnati resident

Charged with attempting to provide material support to ISIL

18

National Security: Cases: Ohio


United States v. Noshir Gowanda

Stealth bomber engineer with Northrup

Selling defense information to China and other countries

Assisted PRC in designing a low observable cruise missile exhaust system nozzle capable of rendering missile less susceptible to detection and interception

17 counts including espionage, conspiracy, money laundering, and tax offenses

Serving 32 year federal sentence

19

National Security: Cases: Hawaii


United States v. Benjamin Bishop

59 year old Hawaii resident

Lt. Col. In Army Reserve

Charged with disclosing classified information to 27 year old Chinese graduate student with whom he had a romantic relationship

Information relating to nuclear weapons systems, early-warning radar systems and other U.S. Defense programs

87 month sentence

20

National Security: Cases: Hawaii


No charged cases

Assist other districts – removed from Guam to district where offense allegedly occurred

Computer hacking scheme

Foreign Extraditions – criminal defendants to Korea and Palau.

21

National Security: Cases: Guam & N.M.I.


Increased military resources in the Pacific

More foreign intelligence activity

Industrial espionage

Terrorism

Traveler cases

Domestic radicalization

Use of social media

Terrorist propaganda is slick, targeted, and appealing to youth

22

National Security: Trends


Environmental: Cases: Guam & N.M.I.U.S. v. Gov’t of Guam/DPW - Closure of a toxic dump (Ordot)

20 years of pollution Fires & EvacuationsRiver and Shoreline PollutionWorker Exposure45 acres 280 Tons of solid waste per dayRain percolation/ 55 million gallons annually

23


Opening of a sanitary landfill (Layson Landfill)

Use of Receivership and loss of local control

New Solid Waste Management Plan

Recycling, reduction, long-term feasibility

24

Environmental: Cases: Guam & N.M.I.


U.S. v. GWA/Gov’t of Guam

Treatment of sewage

Saving the rivers, streams, and coastline

U.S. v. CUC/CNMI

Providing clean water to homes & businesses National standards

Water treatment

Modernize delivery systems, leak

detection, planning

25

Environmental: Cases: Guam & N.M.I.


Matson Terminals, Inc.

Underwater pipe that transported molasses to disposal area

Pipe was leaky

233,000 gallon molasses spill in September 2013

Killed more than 25,000 fish and other marine life

Agreement to pay $1 million restitution

Keoje Marine Co., Ltd.

Chief Engineer of an oil tanker and assistant engineer were convicted of dumping oily waste into Hawaii waters

$1.15 million criminal penalty, $250k to National Fish and Wildlife Foundation to support projects to protect and restore marine resources

Hawaiian Accessories Inc.

A Hawaii company, its owner, and other employees were indicted in June 2015 for conspiracy to smuggle; walrus ivory carvings; whale bone carvings; and black coral carvings

Trial set for 2016

26

Environmental: Cases: Hawaii


United States v. DanielsDefendants New Energy Fuels and Chieftan Biofuels purported to produce biodiesel, which would have earned tradeable energy credits and tax credits worth $1 per gallon

Defendants were not producing biodiesel, but a cheaper, lower quality fuel known as “cutter” or “bunker”

Improperly claimed $7 million in tax credits; $15 million in tradeable energy credits

United States v. BeattyFirst prosecution under Native American Grave Protection Act in Southern Ohio

4 Defendants charged with digging up Native American bones and artifacts

27

Environmental: Cases: Ohio


Interagency coordination and community outreachResulting in more effective environmental enforcement

Example: Coast Guard

Large scale agriculture may result in significant adverse effects

Fertilizer and manure run-off

Illegal harvesting of fishOhio River: harvesting of paddlefish and catfish for roe is endemicCoordination is difficult due to differing state laws covering this activity

Oil spills and pollutionFracking boom

28

Environmental: Trends


United States v. Amer AhmadFormer Deputy Treasurer to State of Ohio, pleaded guilty to federal program bribery and conspiracy

Ahmad directed brokerage work for the Ohio Treasury to Douglas Hampton, a securities broker in return for payments

Hampton received $3.2 million in commissions

Ahmad and other co-conspirators received $500k from Hampton

Fled to Pakistan

First person extradited from Pakistan to U.S.

15-year sentence

29

Public Corruption: Cases: Ohio


Ofc. Roddy Tsunezumi

Former HPD police officer

Extortion and protection racket relating to local businesses

33 months

Ofc. Feso Malufau

Conspired to smuggle meth through USO Family prison gang

97 months

30

Public Corruption: Cases: Hawaii


U.S. v. Juan Ayuyu (Saipan, NMI)

Former NMI senator pled guilty to conspiracy to violate Endangered Species Act, other offenses

Transported 8 federally protected Marianas fruit bats from Rota to Saipan on board commercial flight, with help from his legislative aide

Asked aide to lie to grand jury about their involvement

41 months

31

Public Corruption: Cases: Guam & N.M.I.


U.S. v. Linda San Nicolas (Guam)

Former administrator of Guam’s Dept. of Labor Alien Processing & Certification Division, pled guilty to federal program bribery;

Solicited and received $15,600 cash from two businesses in connection with her assistance in application/certification of H-2B temporary workers;

46 months

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Public Corruption: Cases: Guam


Increased use of camera phones and surveillance video making public corruption cases more viable

“Under color of law” – no longer officers words against victim

Uptick in bribery involving federal programs

Usually involving large dollar amounts to incentivize public officials

33

Public Corruption: Trends


U.S. v. Annette N. Basa (Saipan, NMI)Allowed runaway girls to live with her, gave them meth, and had them perform sex acts for money

Pled guilty to sex trafficking of children

210 months; $9,102.39 restitution

U.S. v. Chang R.M. Backman (Saipan, NMI)PRC citizen and bar owner convicted by jury of sex trafficking of Chinese woman

Travelled to Saipan with false promises of jobs, and forced to engage in commercial sex acts

235 months; $9,750 restitution

34

Human Trafficking: Cases: Guam & N.M.I.


U.S. v. Wei Lin (Saipan, NMI)

PRC citizen pleaded guilty to conspiracy to commit sex trafficking

Induced women from China to travel to Saipan on false promises of jobs, forced to engage in commercial sex acts at a bar and in his apartment

235 months; $21,517.17 restitution

35

Human Trafficking: Cases: Guam & N.M.I.


Mac Farms, Kauai Coffee Co., Kelena Farms, Captain Cook Coffee

Enforcement action brought in conjunction with EEOC

Over 400 Thai workers

Debt bondage, unsanitary conditions, threats of violence

One of the largest labor trafficking cases in U.S.

$2.4 million settlement

Rodney D. King

Sex trafficking case involving minors and adults

25 year sentence

36

Human Trafficking: Cases: Hawaii


United States v. ArrickFather and son advertised services for prostitutesCoerced victims through heroin, threats of forceSon serving 10 year sentenceFather serving 13 year sentence

United States v. Alexander16 year old victim introduced by Thomasina Howard to sex trafficker (Valerio Alexander) in exchange for drugsTrafficker took photos of the victim and posted on sex services website, backpage.comVictim was made to engage in intercourse for money at trafficker’s direction15 year prison sentence

37

Human Trafficking: Cases: Ohio


Increasing understanding of sex trafficking, with sex workers being viewed as victims, rather than perpetrators

Greater number of cases being investigated and prosecuted

Better investigative techniques and coordination

Uncovering organized crime’s involvement in trafficking

More international cooperation

Thai Judges and Prosecutors

38

Human Trafficking: Trends


United States v. HarrisonFraud case involving scam product OXY Water, similar to Vitamin WaterVictims included: R&B artist Ne-Yo, Greg Jennings (NFL), other professional athletesDefendants used investors’ funds to support lavish lifestyleVictims lost over $9 million

United States v. Zafar$10.1 million fraud scam involving investments into purported Pakistani real estateDefrauded over $3.5 million from employees of the Miami Heat72 month sentence

39

White Collar: Cases: Ohio


U.S. v. Renee JasminFormer account manager of UOG Endowment Foundation, embezzled from employer

Pled guilty to 12 counts bank fraud


U.S. v. Pamela DorionFormer customer service manager of Wesco (Fortune 500 company), sold copper wires to scrap metal dealer and created fictitious sales invoices to reflect other companies ordered supplies

Pled guilty to wire fraud conspiracy


40

White Collar: Cases: Guam & N.M.I.


U.S. v. Natarajan GurumoorthyMalaysian citizen traveled to Guam from Bali, Indonesia for 8-day visit

FedExed to Guam hotel 60 counterfeit credit/debit cards, laptop w/ 200+ compromised financial data, and reader/encoder.

After controlled delivery, used ATMs to withdraw cash. Affected UK citizens and financial institutions.

Pled guilty w/o agreement to possessing counterfeit devices and device making equipment

54 months

41

White Collar: Cases: Guam & N.M.I.


Mahealani Ventura OliverHawaiian woman who ran a charitable organization focused on benefitting Native Hawaiians

Defrauded $468k in mortgage, credit card, and debt elimination scams

6½ year sentence

George Lindell and Holly HoaeaePonzi scheme involving $26 million invested by 166 Maui residents

Over $9 million lost in scheme

Using radio and TV ads, urged investors to attend weekly workshops to “harness” the equity in their homes by investing in secure corporate bonds

In fact, Defendants invested in “junk” bonds, and used the remainder to support their luxurious lifestyle

42

White Collar: Cases: Hawaii


Andy Yip

Businessman who operated an off the books business that sold watches

Failed to report income from off the books business

Hong Kong bank accounts in wife’s name that were not reported

Civil audit finds unexplained deposits of $600k

2 counts of failure to report foreign financial agency transactions

43

White Collar: Cases: Hawaii


Increase in cyber-crimeFor companies, government and other institutions, not a question of “if,” but “when”

Increased use of scamming, phishing, and other fraudulent email scams to companies

Coordination between private sector and government

Credit card fraud rings

4-5 day shopping spree to buy high-end merchandise

Use of off-shore accountsU.S. can issue subpoenas to identify taxpayers in tax havens

Logical next focus is in the Asian Pacific region, such as Singapore

Affinity fraudsMembers of closely knit ethnic, cultural, religious or professional groups are targeted by con artists

Con community leaders, and then rest of the community follows

44

White Collar: Trends


Naeem Williams

Only capital case in Hawaii, which has no state death penalty

Convicted of killing 5-year old daughter

Repeated child abuse

Jury could not agree on death sentence; received LWOP

45

Drugs & Violent Crime: Cases: Hawaii


United States v. Fletcher; United States v. Ledbetter (the “Short North Posse Cases”)

Fletcher involves 22 person conspiracy charged with distributing cocaine, oxycodone, crack, and marijuana

Ledbetter is the largest federal murder indictment in Ohio, involving 20 co-conspirators

Covers 13 previously unsolved murders

Involves wide ranging drug enterprise

United States v. TemperanceInvolves father and daughter physicians who allegedly operated a pill mill in Portsmouth, Ohio

Seeing 20 customers a day, charging cash for opioids

46

Drugs & Violent Crime: Cases: Ohio


U.S. v. Kalidhassan Magalingam & Kaali ChellathuraMalaysian nationals travelling from Taiwan under Guam-CNMI visa waiver programMeth concealed in soles of their shoesK.M. and K.C. carried 300 g (98.6% purity) and 660 g (99.7% purity), respectivelyGuilty pleas51 months for each defendant

U.S. v. Michael J. CastroPicked up package from USPS w/ over 1300 g of 98% meth from San DiegoGuilty pleas to drug distribution conspiracy174 months

47

Drugs & Violent Crime: Guam & N.M.I.


U.S. v. Jimmy Turrubiartes

Child pornographer used peer-to-peer network and received approx. 150 movies that depicted sexual abuse of young children

Pled guilty to receipt of child pornography;

57 months

U.S. v. James Leon Guerrero

Conspiracy to commit armed bank robbery by jury verdict

Life sentence (3 strikes criminal record)

Murdered federal prison guard in CA facility; pled guilty to murder in ED CA to avoid death penalty

48

Drugs & Violent Crime: Guam & N.M.I.


Prescription opiates are becoming expensive

“Pill mill” prosecutions of corrupt doctors and service providers have been successful

Cartels are flooding the market with cheap heroin to meet demand

In Hawaii, 95% of cases involve methamphetamine or “Ice,” similar in Guam & NMI

Has gotten cheaper, purer, more prevalent over time

99% pure meth is common

Five pound seizure was rare 6 years ago

Ten pound seizure is now routine

49

Drugs & Violent Crime: Trends


National Security

More frequent and effective coordination

Joint Terrorism Task Force

Review of internet and other data

Public Corruption

Federal programs account for $500 million in tax incentives

Increasing risk of bribery

Creation of multi-jurisdiction task force in State capitals to focus on corruption

50

Policy Developments


Cyber-crime

Corporate hacking

Identity theft

Child pornography

Partnering with private sector

Access of phone data

51

Policy Developments


Questions?

52

Conclusion


53

Thank you!

Albert G. LinIce Miller LLP

250 West StreetColumbus, Ohio 43215


Carter StewartU.S. Attorney’s Office

303 Marconi BoulevardColumbus, Ohio 43215


Florence NakakuniU.S. Attorney’s Office

300 Ala Moana Blvd., #6-100Honolulu, Hawaii 96850


Alicia A.G. LimtiacoU.S. Attorney’s Office

108 Hernan Cortez, Sirena Plaza, Ste. 500Hagatna, GU 96910


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