Author Archives: Denise Simon

Subpoena Tim Geithner About the Uranium One Deal for Starters

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Ever wonder where any Hillary emails are with regard to this case both as Secretary of State or through the Clinton Foundation? Perhaps Huma knows all…did Obama’s OFA take any kickbacks? What else is out there that the Obama administration hid from congress and oversight? Anyway read on for context and the people line-up.
Under the Treasury Department is also the responsibility of sanctions and where waivers to those sanctions occur.

The Secretary of the Treasury is the Chairperson of CFIUS, and notices to CFIUS are received, processed, and coordinated at the staff level by the Staff Chairperson of CFIUS, who is the Director of the Office of Investment Security in the Department of the Treasury.

The members of CFIUS include the heads of the following departments and offices:

  1. Department of the Treasury (chair)
  2. Department of Justice
  3. Department of Homeland Security
  4. Department of Commerce
  5. Department of Defense
  6. Department of State
  7. Department of Energy
  8. Office of the U.S. Trade Representative
  9. Office of Science & Technology Policy

The following offices also observe and, as appropriate, participate in CFIUS’s activities:

  1. Office of Management & Budget
  2. Council of Economic Advisors
  3. National Security Council
  4. National Economic Council
  5. Homeland Security Council

The Director of National Intelligence and the Secretary of Labor are non-voting, ex-officio members of CFIUS with roles as defined by statute and regulation.

Of note for the Uranium One transaction to happen, unless there was a waiver:

What steps can be taken with respect to information required by § 800.402 to further facilitate CFIUS review?

Suggestions include:

  1. Section 800.402(j)(1) requires submission of organizational charts showing control and ownership of the foreign person that is a party to the transaction.  CFIUS’s review would be aided if the parties provide such charts for the U.S. business and if the charts for the U.S. business and the foreign person diagram the ownership chains for the acquirer and target before and after the transaction being notified to CFIUS.  These should be as extensive and detailed as possible.
  2. Sections 800.402(c)(1)(iii) and (v) require submission of information related to the foreign person and its parents.  CFIUS’s review would be aided if the notice identifies whether the actual party in interest is the party to the transaction or one of the parents of the party to the transaction.  CFIUS does not consider special purpose vehicles, wholly-owned subsidiaries established for the sole purpose of the transaction, or other shell companies to be the actual parties in interest in a transaction.
  3. Sections 800.402(c)(3)(iii) and (iv) require information regarding certain United States Government contracts.  Parties are advised to update and verify United States Government contact information for such contracts. Private sector entities not party to the notice are not acceptable points-of-contact for contracts in question.
  4. Filers should ensure that all files in the electronic version of a notice are less than five megabytes (5MB) in size.

What steps, though not required for a notice to be determined complete, may facilitate CFIUS review?

  1. CFIUS agencies have found it very helpful in the past for filing companies to provide the following additional information, even if the activity is not the primary focus of their commercial operations.  CFIUS often requests this information after a voluntary notice has been accepted if it was not included in the initial filing.
    1. Cyber systems, products, services:  Identify whether the U.S. business being acquired develops or provides cyber systems, products, or services, including:
      • Business systems used to manage or support common business processes and operations (for example, enterprise resource planning, e-commerce, email, and database systems); control systems used to monitor, assess, and control sensitive processes and physical functions (for example, supervisory control, data acquisition, process and distributed control systems); safety, security, support, and other specialty systems (for example, fire, intrusion detection, access control, people mover, and heating, ventilating, and air conditioning systems); or
      • (ii) Telecommunications and/or Internet or similar systems, products or services.
    2. Natural resources:  Identify whether the U.S. business being acquired processes natural resources and material or produces and transports energy, and the amount processed, produced, or transported annually.
  2. Discussion in the notice of the business rationale for the transaction may be useful.
  3. The regulations require parties to provide information regarding any other applicable national security-related regulatory authorities, such as the ITAR, EAR, and NISPOM.  Some of the regulatory review processes under these authorities may have longer deadlines than the CFIUS process, and parties to transactions affected by these other reviews may wish to start or complete these processes prior to submitting a voluntary notice to CFIUS under section 721.

The FBI has a network of informants domestically and it did the job it is tasked to do, that is until the Holder Justice Department ensured it could no longer do the job with regard to the Uranium One Case.

Before the Obama administration approved a controversial deal in 2010 giving Moscow control of a large swath of American uranium, the FBI had gathered substantial evidence that Russian nuclear industry officials were engaged in bribery, kickbacks, extortion and money laundering designed to grow Vladimir Putin’s atomic energy business inside the United States, according to government documents and interviews.

Federal agents used a confidential U.S. witness working inside the Russian nuclear industry to gather extensive financial records, make secret recordings and intercept emails as early as 2009 that showed Moscow had compromised an American uranium trucking firm with bribes and kickbacks in violation of the Foreign Corrupt Practices Act, FBI and court documents show.

They also obtained an eyewitness account — backed by documents — indicating Russian nuclear officials had routed millions of dollars to the U.S. designed to benefit former President Bill Clinton’s charitable foundation during the time Secretary of State Hillary Clinton served on a government body that provided a favorable decision to Moscow, sources told The Hill.

The racketeering scheme was conducted “with the consent of higher level officials” in Russia who “shared the proceeds” from the kickbacks, one agent declared in an affidavit years later.

When this sale was used by Trump on the campaign trail last year, Hillary Clinton’s spokesman said she was not involved in the committee review and noted the State Department official who handled it said she “never intervened … on any [Committee on Foreign Investment in the United States] matter.”

In 2011, the administration gave approval for Rosatom’s Tenex subsidiary to sell commercial uranium to U.S. nuclear power plants in a partnership with the United States Enrichment Corp. Before then, Tenex had been limited to selling U.S. nuclear power plants reprocessed uranium recovered from dismantled Soviet nuclear weapons under the 1990s Megatons to Megawatts peace program.

Vadim Mikerin was a director of Rosatom’s Tenex in Moscow since the early 2000s, where he oversaw Rosatom’s nuclear collaboration with the United States under the Megatons to Megwatts program and its commercial uranium sales to other countries. In 2010, Mikerin was dispatched to the U.S. on a work visa approved by the Obama administration to open Rosatom’s new American arm called Tenam.

The kickbacks were known by the FBI, they had to happen to advance the case and to allow them as evidence of wrong-doing.

His, Mikerin’s, illegal conduct was captured with the help of a confidential witness, an American businessman, who began making kickback payments at Mikerin’s direction and with the permission of the FBI. The first kickback payment recorded by the FBI through its informant was dated Nov. 27, 2009, the records show.

In evidentiary affidavits signed in 2014and 2015, an Energy Department agent assigned to assist the FBI in the case testified that Mikerin supervised a “racketeering scheme” that involved extortion, bribery, money laundering and kickbacks that were both directed by and provided benefit to more senior officials back in Russia. More here.

Mikerin indictment document here.

The plea deal and 2 associated cases here.

Mikerin was sentenced to 4 years and forfeited $2,126,622.36  :

According to court documents, Mikerin was the director of the Pan American Department of JSC Techsnabexport (TENEX), a subsidiary of Russia’s State Atomic Energy Corporation and the sole supplier and exporter of Russian Federation uranium and uranium enrichment services to nuclear power companies worldwide, and the president of TENAM Corporation, a wholly owned subsidiary and the official representative of TENEX. Court documents show that between 2004 and October 2014, conspirators agreed to make corrupt payments to influence Mikerin and to secure improper business advantages for U.S. companies that did business with TENEX, in violation of the Foreign Corrupt Practices Act (FCPA). Mikerin admitted that he conspired with Daren Condrey, Boris Rubizhevsky and others to transmit approximately $2,126,622 from Maryland and elsewhere in the United States to offshore shell company bank accounts located in Cyprus, Latvia and Switzerland with the intent to promote the FCPA violations. Mikerin further admitted that the conspirators used consulting agreements and code words to disguise the corrupt payments.

Condrey, 50, of Glenwood, Maryland, pleaded guilty on June 17, 2015, to conspiracy to violate the FCPA and conspiracy to commit wire fraud. Rubizhevsky, 64, of Closter, New Jersey, pleaded guilty on June 15, 2015, to conspiracy to commit money laundering. Condrey and Rubizhevsky await sentencing.

***

Mikerin

 

Officials Potentially Influenced (Name; Title; Organization): 

  • Vadim Mikerin; President; TENAM Corporation
  • Vadim Mikerin; Director of the Pan American Department; JSC Techsnabexport (“TENEX”)

Defendant-Related Entities Involved in the Misconduct:    N/A

Third-Party Intermediary:   

  • Cypriot shell company , Shell Company
  • Latvian shell company , Shell Company
  • Swiss shell company , Shell Company
  • Vadim Mikerin , Agent/Consultant/Broker

 

Veterans Sue U.S. Firms’ Bribes Funded Iraq Militia

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Suit: U.S. Firms’ Bribes Funded Iraq Militia Attacks on Americans

WASHINGTON — A group of American veterans filed a federal lawsuit Tuesday against U.S. and European drug companies and medical device makers, accusing them of supporting an Iran-backed Iraqi militia that killed and wounded hundreds of Americans.

The suit is filed under a law that allows Americans injured by terrorism overseas to seek civil damages. The more than 100 plaintiffs include injured U.S. Iraq war veterans and their families. The defendants are either parent companies or subsidiaries of AstraZeneca plc (AZN); Johnson & Johnson (JNJ); Pfizer Inc. (PFE); Roche Holding AG (RHHBY); and the General Electric Company (GE).

The 203-page lawsuit accuses the companies of paying bribes to officials of Iraq’s health ministry that benefited the Mahdi Army, an Iranian-backed militia that the suit says worked closely with Hezbollah, a Lebanese group that has been designated a terrorist organization by the U.S. government.

Iraqi Shiites of the Mahdi Army militia loyal to cleric Moqtada al-Sadr vow to fight ISIS in a show of strength in a military parade on June 21, 2014 in the Sadr City district of Baghdad, Iraq.Scott Peterson / Getty Images file

The companies sold Iraq’s government-run healthcare system millions of dollars worth of drugs and medical devices, and paid the bribes, the suit alleges, as a cost of doing business.

Related reading: Mahdi Army

Related reading: By late 2006, at the height of sectarian violence, the Sadrists were a formidable military force. In the wake of the February 2006 bombing of the al-Askari Mosque in Samarra (one of the holiest Shi’a shrines) and frequent attacks by al Qaeda in Iraq, JAM positioned itself as a security guarantor for the Shi’a. However, the organization also spawned death squads responsible for sectarian cleansing.9  By mid-2006 these militias were engaged in a violent campaign of expansion into Sunni and mixed Sunni-Shi’a neighborhoods. JAM soon controlled large areas of Baghdad and they increasingly relied upon corruption, intimidation, and extortion to enhance their wealth and power. More here.

After the U.S. invasion, Iraq’s political factions divvied up government departments under a political spoils system, and the Mahdi Army’s political wing took control of the health ministry. The state-owned drug purchasing monopoly, Kimadia, demanded a 20 percent “religious tax” from the vendors on every contract, the lawsuit said.

“That policy required, as a general matter, companies doing business with Kimadia to pay commissions of at least 20 percent on every contract, the lawsuit says. “This was sometimes paid in the form of in-kind bribes but was often paid in cash as well. Such cash payments were typically called ‘commissions’ — the Iraqi euphemism for bribes. From 2004-2013, it was standard practice for companies dealing with (the Ministry of Health) to pay ‘commissions’ on every major sales contract.”

The in-kind bribes were in the form of what were known as “free goods,” including drugs and medical devices, that Iraqi officials would sell on the black market, says the lawsuit, which specifically accuses each defendant of paying such bribes.

The suit says the defendants paid the bribes even though they knew or should have known that the money was going to a dangerous armed faction.

Image: Moqtada al-Sadr
Iraqi Shiite cleric Moqtada al-Sadr delivers a speech to his supporters following Friday prayers at the grand mosque of Kufa in the holy city of Najaf, on April 3, 2015.Haidar Hamdani / AFP/Getty Images file

“Defendants knew or recklessly disregarded that their transactions helped fund Jaysh al-Mahdi attacks on Americans,” the suit says, using an Arabic term for the Mahdi Army.

In a statement, Pfizer said it “categorically denies any wrongdoing.” Roche said it had not been served with the suit and could not comment. A GE spokesperson said the company became aware of the complaint Tuesday and is “thoroughly reviewing the allegations.” The other companies did not immediately respond to requests for comment.

The Mahdi Army, led by Muqtada al-Sadr, is an Iranian-backed militia that opposed the American invasion and occupation of Iraq. It was never designated a terrorist organization by the U.S., a fact that could pose a legal hurdle for the plaintiffs. The suit argues that it acted as a terrorist organization and worked closely with Hezbollah, a designated terrorist organization.

Sadr posed a problem for the American war effort from the start, when he allegedly stabbed to death a U.S.-backed political opponent in 2003. American authorities issued a warrant for his arrest on murder charges but never executed it, fearful of the backlash it might cause among his Shiite supporters.

The U.S. thrice contemplated operations to kill Sadr but decided against doing so, a former CIA officer with personal knowledge told NBC News.

Sadr and his militia fought on and off for years against U.S. forces. In 2004, after the U.S. closed his newspaper, his forces seized control of Shiite areas around Iraq, leading to fighting that killed at least 19 Americans.

The lawsuit cites media and government reports asserting that the Mahdi Army worked closely with Hezbollah to attack American forces, including with sophisticated Iranian-build roadside bombs that penetrated U.S. armor.

Those bombs, known as explosively formed penetrators, or EFPs, killed 196 Americans and wounded 861 from 2005 to 2011, according to a U.S. military study cited in the lawsuit.

The suit was brought by the Washington, D.C.-based law firms of Sparacino & Andreson PLLC and Kellogg, Hansen, Todd, Figel & Frederick, PLLC.

One of the plaintiffs’ lawyers, David C. Frederick, represented NFL players in their suit against the NFL over brain injuries. That case resulted in a $765 million settlement fund for players.

Some of the defendants have been accused in the past of violating the U/S. law against bribing foreigners to secure business.

In 2010, GE paid $23.4 million to the federal government to settle allegations by the Securities and Exchange Commission that its subsidiaries had violated the Foreign Corrupt Practices Act in connection with alleged kickbacks paid in Iraq under the United Nations’ oil-for-food program. The GE subsidiaries were selling medical and water purification equipment to the Iraqi government.

The kickbacks were paid from 2000 to 2003 and consisted of cash, computer equipment, medical supplies, and services to the Iraqi Health Ministry or the Oil Ministry, the government said at the time.

In 2011, Johnson & Johnson agreed to pay a $21.4 million penalty to resolve criminal FCPA charges with the Justice Department, and another $48.6 million in disgorgement and prejudgment interest to settle the SEC’s civil charges, in a case alleging improper payments to doctors in Greece by J&J subsidiary DePuy Inc.

Last year, AstraZeneca PLC agreed to pay more than $5 million in penalties after the SEC accused it of violating the books and records and internal controls provisions of the Foreign Corrupt Practices Act in connection with allegedly illegal payments made by subsidiaries in China and Russia to boost drug sales. AstraZeneca settled the enforcement action without admitting or denying the SEC’s findings.

 

Iran Nuclear Deal has a Complaint Commission

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It is known as the Annex IV – Joint Commission

The Joint Commission will meet on a quarterly basis and at any time upon request of
a JCPOA participant to the Coordinator. The Coordinator will convene a meeting of
the Joint Commission to be held no later than one week following receipt of such a
request, except for consultations in accordance with Section Q of Annex I and any
other matter that the Coordinator and/or a JCPOA participant deem urgent, in which
case the meeting will be convened as soon as possible and not later than three
calendar days from receipt of the request.

Except as provided in Section 6 of this Annex which will be subject to the
confidentiality procedure of the UN, the work of the Joint Commission is confidential
and may be shared only among JCPOA participants and observers as appropriate,
unless the Joint Commission decides otherwise.
Based on where Congress takes this JCPOA with action and or clarity. the Iranian Supreme leader is turning once again to European leaders as he threatens to perhaps even shred it.
***
ANKARA (Reuters) – Iranian Supreme Leader Ayatollah Ali Khamenei said on Wednesday Tehran would stick to its 2015 nuclear accord with world powers as long as the other signatories respected it, but would “shred” the deal if Washington pulled out, state TV reported.

Khamenei spoke five days after U.S. President Donald Trump adopted a harsh new approach to Iran by refusing to certify its compliance with the deal, reached under Trump’s predecessor Barack Obama, and saying he might ultimately terminate it.

“I don’t want to waste my time on answering the rants and whoppers of the brute (U.S.) president,” Khamenei said in a speech to students in Tehran quoted by state television.

“Trump’s stupidity should not distract us from America’s deceitfulness … If the U.S. tears up the deal, we will shred it … Everyone should know that once again America will receive a slap in its mouth and will be defeated by Iranians.”

Trump’s move put Washington at odds with other parties to the accord – Britain, France, Germany, Russia, China and the European Union – who say Washington cannot unilaterally cancel an international accord enshrined by a U.N. resolution.

Khamenei, who has the final say on Iran’s state matters, welcomed European support but said it was not sufficient.

“European states stressed their backing for the deal and condemned Trump … We welcomed this, but it is not enough to ask Trump not to rip up the agreement. Europe needs to stand against practical measures (taken) by America.”

Under the deal, Iran agreed to curb its disputed uranium enrichment program in return for relief from international sanctions that crippled its economy, and U.N. nuclear inspectors have repeatedly certified Tehran’s compliance with the terms.

Trump accuses Iran of supporting terrorism and says the 2015 deal does not do enough to block its path to acquiring nuclear weapons. Iran says it does not seek nuclear arms and in turn blames the growth of militant groups such as Islamic State on the policies of the United States and its regional allies.

In decertifying the nuclear deal last week, Trump gave the U.S. Congress 60 days to decide whether to reimpose economic sanctions on Tehran that were lifted under the pact.

“DO NOT INTERFERE”

In a major shift in U.S. policy, Trump also said Washington will take a more confrontational approach to Iran over its ballistic missile program and its support for extremist groups in the Middle East.

Tehran has repeatedly pledged to continue what it calls a defensive missile capability in defiance of Western criticism. The United States has said Iran’s stance violates the 2015 deal in spirit as missiles could be tipped with nuclear weapons.

Tehran has said it seeks only civilian nuclear energy from its enrichment of uranium, and that the program has nothing to do with missile development efforts.

EU foreign ministers on Monday urged U.S. lawmakers not to reimpose sanctions on Tehran but also discussed Iran’s missile program, which they want to see dismantled.

“They must avoid interfering in our defense program … We do not accept that Europe sings along with America’s bullying and its unreasonable demands,” Khamenei said.

“They (Europeans) ask why does Iran have missiles? Why do you have missiles yourselves? Why do you have nuclear weapons?”

The Trump administration has imposed new unilateral sanctions targeting Iran’s missile activity. It has called on Tehran not to develop missiles capable of delivering nuclear bombs. Iran says it has no such plans.

DG Parker MI5 Declares Terror Threats Worst Yet

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MI5 Director General (DG) Andrew Parker addressed an audience  in Central London today, in which he spoke about the international counter terrorism threat that we are facing and how MI5 works with partners to tackle it.  This marks the first time that a DG has given a speech on-camera.

MI5 also continues to counter threats from terrorism in Northern Ireland and the actions of hostile states seeking to carry out damaging espionage activity.

  MI5 photo

Mr Parker said MI5 remains a multi-dimensional organisation that is constantly evolving and continues to be innovative in order to meet the changing threat.

He added:

Day in and day out we are identifying and disrupting threats: stopping terrorism. Our response is unrelenting. Those that wish our country harm can expect to meet MI5 and the police. And they will face the full force of the law and be brought to justice.

We face this new order of challenge from a position of strength. The UK has world-class intelligence agencies and counter terrorism policing. We are developing, growing and sharpening our capabilities all the time.

Throughout our history MI5 has been all about innovating to meet the changing threat and the shifting technological environment. We review every major operation and learn from our successes. And when an attack happens we are determined, using the harsh light of hindsight, to squeeze out every last drop of learning so that we can be the very best we can be, now and in the future.

…the challenge that we face is undoubtedly a stark one. More threat, coming at us more quickly, and sometimes harder to detect. But it is a challenge that we and our partners are rising to and are facing down. We are committed to this for the long haul. Our unrelenting focus will remain on doing everything in our power every day to keep Britain safe.

Andrew Parker, director general of the security service, gave a rare public speech, calling the threat “multi-dimensional, evolving rapidly and operating at a scale and pace we’ve not seen before”.

Another 20 terrorist attacks on the UK were foiled over the past four years and “many more” were prevented, he said.

The intelligence chief said there has been a “dramatic upshift” this year, which resulted in the London and Manchester attacks which killed a total of 36 people. He said continental Europe has faced a similar surge, particularly in France, Belgium, Germany and Spain.

  photo

Mr Parker said MI5 has more than 500 live investigations involving roughly 3,000 people known to be involved in extremist activities.

In addition, he said, more than 20,000 individuals have been scrutinized in the past for possible terror ties and there are undoubtedly “violent extremists” who have thus far not been detected by the Security Service.

The director called on technology companies to work with the government on preventing their social media platforms from being used by extremists for communications that cannot be monitored.

When asked if Facebook and Google were doing enough on this front, Mr Parker declined to discuss specific companies.

He praised advancements in communications technology, but said an “unintended side effect” has been to make it easier for extremists to avoid legal monitoring by using apps, including many that provide encryption, to avoid detection. He said companies should to more to prevent this abuse of their communications systems. More here

For the FBI Haters, Check out Operation Cross Country

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FBI Announces Results of Operation Cross Country XI

Underage Sex Trafficking Crackdown Leads to Recovery of 84 Minors

The Federal Bureau of Investigation, along with the National Center for Missing & Exploited Children (NCMEC), announced today that 84 minors were recovered and 120 traffickers were arrested as part of Operation Cross Country XI, a nationwide effort focusing on underage human trafficking that ran from October 12-15, 2017.

This is the 11th iteration of the FBI-led Operation Cross Country (OCC), which took place this year in 55 FBI field offices and involved 78 state and local task forces, consisting of hundreds of law enforcement partners. This year’s coordinated operations took place with several international partners, including Canada (Operation Northern Spotlight), the United Kingdom (Aident 8), Thailand, Cambodia, and the Philippines.

“We at the FBI have no greater mission than to protect our nation’s children from harm. Unfortunately, the number of traffickers arrested—and the number of children recovered—reinforces why we need to continue to do this important work,” said FBI Director Christopher Wray. “This operation isn’t just about taking traffickers off the street. It’s about making sure we offer help and a way out to these young victims who find themselves caught in a vicious cycle of abuse.”

Operation Cross Country XI

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Operation Cross Country XI

The 11th iteration of Operation Cross Country, the FBI’s annual law enforcement action focused on recovering underage victims of prostitution, concluded with the recovery of 84 sexually exploited juveniles.

As part of Operation Cross Country XI, FBI agents and task force officers staged operations in hotels, casinos, and truck stops, as well as on street corners and Internet websites. The youngest victim recovered during this year’s operation was 3 months old, and the average age of victims recovered during the operation was 15 years old. Minors recovered during Cross Country Operations are offered assistance from state protective services and the FBI’s Victim Services Division. Depending on the level of need, victims are offered medical and mental health counseling, as well as a number of other services.

“Child sex trafficking is happening in every community across America, and at the National Center for Missing & Exploited Children, we’re working to combat this problem every day,” said NCMEC President and CEO John Clark. “We’re proud to work with the FBI on Operation Cross Country to help find and recover child victims. We hope OCC generates more awareness about this crisis impacting our nation’s children.”

Operation Cross Country XI is part of the FBI’s Innocence Lost National Initiative, which began in 2003 and has yielded more than 6,500 child identifications and locations. For additional information on Operation Cross Country XI and the Innocence Lost initiative, please visit www.fbi.gov.

Examples of stories from various cities that took part in Operation Cross Country XI:

  • On October 13, FBI Denver recovered two minor girls—one 3-month-old and one five-year-old. The subject, a friend of the children’s family, offered an undercover officer access to the two children for sexual purposes in exchange for $600. The FBI is working with Child Protective Services to conduct a forensic interview and secure safe placement of the children. The subject was placed under arrest.
  • Also on October 13, a 16-year old female victim was recovered by FBI El Paso after an undercover agent called an online advertisement for entertainment. Shortly thereafter, the agent met with a 21-year-old female, who offered a fee of $200 to engage in sexual intercourse with her and another female, the 16-year-old victim. Further investigations revealed that a second adult female drove the minor and the 21-year-old to the undercover agent’s location. Both female subjects have been arrested on federal charges.

Note to Editors: B-Roll and interviews associated with Operation Cross Country can be downloaded at www.fbi.gov.

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