Category Archives: Gangs and Crimes

Portland, Arrest Them? Okay, 74 Face Federal Charges

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This is significant as these are Federal charges and not under the authority of liberal District Attorneys. However, there is movement by the Portland Police.

Portland police are cracking down on nightly demonstrations and ramping up enforcement since federal forces scaled back their presence in downtown.

City officers have made 217 arrests at protests since Aug. 1, nearly three times the 77 they made in all of July, according figures released by the Portland Police Bureau and reviewed by The Oregonian/OregonLive.

About half of those occurred in the last week, when police declared riots five out of seven nights. Officers arrested more than 20 people on each of three of those nights. More here.

Read on and give a hat tip to The FBI, the US Marshall Service, ATF and HSI.

Portland protests: Police detain 2 suspects after shooting source

FOR IMMEDIATE RELEASE
Thursday, August 27, 2020

74 People Facing Federal Charges for Crimes Committed During Portland Demonstrations

Charges include assaulting federal officers, arson, failing to obey lawful orders, and damaging federal property

U.S. Attorney Billy J. Williams announced today that 74 people are facing federal charges for crimes committed adjacent to or under the guise of peaceful demonstrations in Portland since at least May 29, 2020.

For more than 90 consecutive nights, Portland has been home to large demonstrations and protests against police use of force and anti-Black racism. On many nights, after peaceful demonstrations end, various public and private buildings have been the target of vandalism and destruction. Local, state, and federal law enforcement working to protect these buildings and ensure the safety of peaceful demonstrators have been subjected to threats and assaults from violent agitators while performing their duties.

“Violent agitators have hijacked any semblance of First Amendment protected activity, engaging in violent criminal acts and destruction of public safety,” said U.S. Attorney Williams. “The U.S. Attorney’s Office and our federal law enforcement partners are expeditiously working with local and state law enforcement to identify, arrest, and prosecute these individuals that are disrupting the rule of law in our communities and physically attacking our law enforcement officers and destroying property. Violent agitators not only delay real reform, but make our community less safe by keeping law enforcement from responding to other critical calls for service.”

“While the FBI supports and safeguards Constitutionally-protected activity and civil rights, there is no permit for assault, arson or property damage and these are not victimless crimes,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “Among the victims of violent crime are business owners, residents and individuals exercising their First Amendment rights through protests or other legitimate forms of expression.”

“The nightly violence has to stop,” said Russel Burger, U.S. Marshal for the District of Oregon. “It is drowning out the voices of the many who are calling for change, and pulling police resources away from their primary mission of keeping this community safe. We must all come together to find a productive way to move forward.”

“As the nation’s primary source for fire investigative knowledge, ATF remains committed to investigating those responsible for committing arsons in our communities and holding them responsible for their illegal actions,” said ATF Special Agent in Charge Jonathan McPherson. “As a reminder, there is a mandatory minimum sentence of five years for arson. ATF takes these violent actions seriously and will work diligently to bring justice to the victims.”

“It is vitally important that all Americans have the ability to exercise their first amendment rights to freedom of speech,” said Acting Special Agent in Charge of Homeland Security Investigations Seattle Eben Roberts. “Unfortunately, much of what we’re seeing in Portland is the antithesis of that. Instead tragic events are being used as excuses for individuals with ill intent disguising themselves as activists to commit violent crimes against their communities and law enforcement officers. Progress can only be made if community leaders, law enforcement and the public come together in the name of social change, justice and peace.”

Since May 26, 2020, federal law enforcement authorities have arrested 100 people for crimes committed during local demonstrations. Seventy-four face federal charges, including felonies, misdemeanors, and citation violations. Crimes include assaults on federal officers, some resulting in serious injuries; arson and attempted arson; damaging federal government property; failing to obey lawful orders; and unlawful use of a drone; among others.

Charged defendants include:

  • Edward Carubis, 24, is charged with assaulting a federal officer on July 1, 2020;
  • Rowan Olsen, 19, is charged (photos available) with creating a hazard on federal property, disorderly conduct, and failing to obey a lawful order on July 2, 2020;
  • Shant Singh Ahuja, 28, of Oceanside, California, is charged with destruction of federal property on July 4, 2020;
  • Gretchen Blank, 29, of Seattle, Washington, is charged (photos available) with assaulting a federal officer on July 5, 2020;
  • Andrew Faulkner, 24, is charged with assaulting a federal officer on July 5, 2020;
  • Christopher Fellini, 31, is charged (photos available) with assaulting a federal officer on July 5, 2020;
  • Theodore Matthee-O’Brien, 21, is charged with assaulting a federal officer on July 5, 2020;
  • Cody Porter, 28, is charged with assaulting a federal officer on July 5, 2020;
  • Taimane Teo, 24, of Eugene, Oregon, is charged with assaulting a federal officer on July 5, 2020;
  • Benjamin Wood-Pavich, 21, is charged with assaulting a federal officer on July 5, 2020;
  • Jacob Gaines, 23, a Texas resident, is charged (photos available) with assaulting a federal officer on July 11, 2020;
  • Lillith Grin, 22, is charged with assaulting a federal officer on July 12, 2020;
  • Benjamin Bolen, 36, is charged with assaulting a federal officer on July 13, 2020;
  • Kevin Weier, 36, is charged with attempted arson on July 13, 2020;
  • Wyatt Ash-Milby, 18, is charged with failing to obey a lawful order on July 21, 2020;
  • Jerusalem Callahan, 24, is charged with damaging government property on July 21, 2020;
  • Zachary Duffly, 45, is charged with creating a disturbance on July 21, 2020;
  • Caleb Ehlers, 23, is charged with failing to obey a lawful order on July 21, 2020;
  • Paul Furst, 22, is charged with failing to obey a lawful order on July 21, 2020;
  • Jennifer Kristiansen, 38, is charged with assaulting a federal officer on July 21, 2020;
  • Ella Miller, 26, is charged with failing to obey a lawful order on July 21, 2020;
  • Marie Sager, 27, is charged with failing to obey a lawful order on July 21, 2020;
  • Giovanni Bondurant, 19, is charged with assaulting a federal officer on July 22, 2020;
  • Bailey Dreibelbis, 22, is charged with failing to obey a lawful order on July 21, 2020;
  • Gabriel Huston, 22, is charged with assaulting a federal officer on July 22, 2020;
  • Joseph Lagalo, 37, is charged with failing to obey a lawful order on July 22, 2020;
  • Taylor Lemons, 32, is charged with assaulting a federal officer on July 22, 2020;
  • Joseph Ybarra, 21, is charged with arson on July 22, 2020;
  • David Hazan, 24, is charged with failing to obey a lawful order on July 23, 2020;
  • Nicholas Kloiber, 26, is charged with failing to obey a lawful order on July 23, 2020;
  • Cameron Knutson, 28, is charged with failing to obey a lawful order on July 23, 2020;
  • Carly Ballard, 34, is charged with assaulting a federal officer on July 24, 2020;
  • David Bouchard, 36, is charged with assaulting a federal officer on July 24, 2020;
  • Dakota Eastman, 30, is charged with failing to obey a lawful order on July 24, 2020;
  • Josslynn Kreutz, 28, is charged with failing to obey a lawful order on July 24, 2020;
  • Ezra Meyers, 18, is charged with failing to obey a lawful order on July 24, 2020;
  • Mark Rolycanov, 28, is charged with failing to obey a lawful order on July 24, 2020;
  • Pablo Avvocato, 26, is charged with assaulting a federal officer on July 25, 2020;
  • Douglas Dean, 34, is charged with assaulting a federal officer on July 25, 2020;
  • Rebecca Mota Gonzales, 37, is charged with assaulting a federal officer on July 25, 2020;
  • Thomas Johnson, 33, is charged with assaulting a federal officer on July 25, 2020;
  • Richard Lindstedt, 33, is charged with violating national defense airspace on July 25, 2020;
  • Nathan Onderdonk-Snow, 21, is charged with assaulting a federal officer on July 25, 2020;
  • Stephen O’Donnell, 65, is charged with assaulting a federal officer on July 25, 2020;
  • Joshua Webb, 22, is charged with assaulting a federal officer on July 25, 2020;
  • Jeffree Cary, 30, is charged with assaulting a federal officer on July 26, 2020;
  • John Tyler Gabriel, 22, is charged with assaulting a federal officer on July 26, 2020;
  • Noelle Mandolfo, 30, is charged with assaulting a federal officer on July 26, 2020;
  • Patrick Stafford, 35, is charged with assaulting a federal officer on July 26, 2020;
  • Travis Williams, 27, is charged with assaulting a federal officer on July 26, 2020;
  • Caleb Wills, 29, is charged with assaulting a federal officer on July 26, 2020;
  • Brodie Storey, 28, is charged with assaulting a federal officer on July 27, 2020;
  • Edward Schinzing, 32, is charged (photos available) with arson on July 28, 2020;
  • James Hickerson, 54, is charged with failing to obey a lawful order on July 28, 2020;
  • Ian Wolf, 26, is charged with failing to obey a lawful order and creating a hazard on federal property on July 28, 2020;
  • Sabastian Dubar, 23, is charged with assaulting a federal officer on July 29, 2020;
  • Jordan Johnson, 32, is charged with assaulting a federal officer on July 29, 2020;
  • Evan Kriechbaum, 31, is charged with assaulting a federal officer on July 29, 2020;
  • Christine Margaux, 28, is charged with assaulting a federal officer on July 29, 2020;
  • Gabriel Agard-Berryhill, 18, is charged (video available) with arson on July 30, 2020;
  • Isaiah Maza, 18, is charged (photos available) with assaulting a federal officer on July 31, 2020;
  • Dakotah Horton, 24, is charged (photos available) with assaulting a federal officer on August 17, 2020; and
  • Dakota Means, 20, is charged with assaulting a federal officer on August 24, 2020.

Eleven others have been issued citation violations. All defendants, unless noted, are presumed to be local residents.

Several of the charges being used to prosecute violent agitators carry significant maximum prison sentences. For example, felony assault of a federal officer with a dangerous weapon is punishable by up to 20 years in prison. Arson is punishable by up to 20 years in prison with a mandatory minimum sentence of five years.

It is important to note that while some federal charges require crimes be committed on federal property, others do not. Violent acts committed throughout the city of Portland under the guise of peaceful protest are being evaluated by local federal prosecutors for prosecution.

These cases are being investigated by the FBI; U.S. Marshals Service; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and Federal Protective Service. They are being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

Indictments, complaints, and informations are only accusations of a crime, and defendants are presumed innocent unless and until proven guilty.

To help identify actors who are actively instigating violence in the city of Portland, the FBI is accepting tips and digital media depicting violent encounters during demonstrations. If you have witnessed unlawful violent actions, we urge you to submit any information, photos, or videos that could be relevant to investigations at fbi.gov/PDViolence.

Specifically, the FBI is assisting partner agencies by asking for the public’s help in identifying individuals who participated in or may have been a witness to criminal activity at the following locations:

  • Near or inside the Multnomah County Justice Center in downtown Portland on the night of May 29, 2020 or into the morning of May 30, 2020. Details here: Justice Center
  • Near the Chase Bank branch located at 811 SW 6th Avenue, Portland, Oregon, shortly before 1 a.m. on May 30, 2020. Details here: Chase Bank

Tips can be submitted by calling 1-800-CALL-FBI (1-800-225-5324) or (503) 224-4181. They can also be submitted online by visiting: tips.fbi.gov.

AG Barr on Operation LeGend Successes

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Attorney General William Barr announced Wednesday that there have been nearly 1,500 arrests across eight U.S. cities thus far under the “Operation Legend” law enforcement initiative launched roughly six weeks ago. These are Federal charges only. Investigations and cases dealing with state charges or violations of law are turned over to the local District Attorneys for prosecution(s).

Mayors Worry Operation Legend Is About Politics, Not the ... source

Federal officers involved in Operation Legend, a Justice Department initiative to assist cities plagued by violent crime, have made more than 1,000 arrests across the country, Attorney General William Barr said Wednesday.

Of those arrests, more than 200 defendants have been charged with federal crimes, including 90 murder suspects, and nearly 400 guns have been taken off the streets, Mr. Barr said, speaking with reporters in Kansas City, Missouri.

“Operation Legend is the heart of the federal government’s response to this uptick in violent crime,” he said. “Its mission is to save lives, solve crimes and take violent offenders off our streets before they can claim more victims.

“Rather than demonizing or defunding police, we are supporting and strengthening our law enforcement partners at the state and local level.”

Operation Legend is named after 4-year-old LeGend Taliferro, who was shot and killed in Kansas City while he was sleeping. The operation started in that city earlier this month.

Cities that are part of Operation Legend will receive increased resources from the FBI, U.S. Marshals Service, Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives to reduce violent crime, with a focus on gun violence. More than 1,000 additional agents have been sent to the nine cities.     The program also has allocated $78.5 million in grants to fund additional police positions, more prosecutors and improve technology to solve gun crimes.

A total of 61 defendants in Chicago have been charged with federal crimes. In Albuquerque, 16 individuals face federal charges, 32 in Cleveland, 22 in Detroit, 11 in Milwaukee, 15 in St. Louis and seven in Memphis, Tennessee.

Indianapolis was not included in the totals because that program began only last week.

Federal charges include illegal possession of a firearm, distribution of narcotics, carjacking, and bank robbery.

***

Barr has noted that Operation Legend, however, is separate from those deployments in response to unrest and that the dozens of investigators being dispatched to the cities are instead more focused on assisting federal and state authorities with probing violent crimes.

“There has been a lot of confusion in the media, some of it not unintentional, conflating two different aspects of law enforcement,” Barr said. “One is dealing with civil unrest, rioting, and the other is the classical traditional work that law enforcement does.”

During the news conference, Barr addressed the recent uptick of violent crime across several parts of the country, at one point saying, without providing evidence, that he believed it might be a result of a combination between “pent up aggression” to state and local quarantine orders, the “premature release of dangerous criminals by the courts” during the COVID-19 pandemic and the “Defund the Police” movement.

Barr added that he expected there will be an increase in the national violent crime rate this year after it saw decreases for the last two years.

Chinese Regime Rushes to Destroy Files Overseas

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In part: The Chinese Communist Party (CCP) has directed certain overseas Party cells to destroy sensitive documents and safeguard Party secrets, in response to heightened scrutiny in the West of the regime’s covert activities abroad, an internal document obtained by The Epoch Times reveals.

A notice issued in August by China’s state-owned oil giant China National Petroleum Corporation (CNPC) instructed that the company’s overseas offices in more than ten countries, including Australia and Canada, must “urgently destroy or transfer sensitive documents” relating to “overseas Party-building activities.”

China National Petroleum Corporation - Barco source

Party-building activities overseas, according to New York-based China commentator Qin Peng, refers to the CCP’s efforts to expand its global influence. Under this program, Chinese consulates can instruct Chinese multinational companies to carry out tasks beyond their business operations, such as collecting intelligence, stealing sensitive information, and influencing local officials, he said.

The notice said that important documents that can’t be easily destroyed may be given to the Chinese embassy in Cambodia for safekeeping.

It also directs the company’s Party members not to divulge sensitive information to local law enforcement.

“When subject to foreign investigations, Party members and cadres must abide by [the principle of] ‘strictly guarding Party secrets,’” the document said. “This is an iron rule and discipline.”

The directive was a response to recent actions by the United States and other Western governments, the document said, citing an incident in Australia where authorities searched and seized mobile phones and computers of Chinese diplomatic personnel because they contained material relating to the CCP. It did not provide further detail about this incident.

The United States has in recent months escalated efforts in combating Chinese espionage and malign influence activities. The Trump administration in July ordered the closure of the Chinese consulate in Houston, saying the diplomatic outpost was a “hub of spying and intellectual property theft.” Federal agents also made a string of arrests of suspected undercover Chinese military officers studying in the country, who prosecutors say are part of a broader network spanning 50 U.S. cities.

The regime’s covert foreign influence operations have also come under the spotlight in many democracies, particularly in Australia, where the government has stepped up actions targeting Chinese influence in politics and university campuses.

Nicholas Eftimiades, a former senior U.S. intelligence official and author of the book “Chinese Intelligence Operations,” told The Epoch Times that the incident in Australia may have referred to an unreported seizure by border officials at the country’s ports of entry, or the recent raid of a Chinese-Australian’s home as part of an investigation into Chinese foreign interference.

Going Underground

The notice said the United States, the U.K., Australia, Canada, and New Zealand were “highly sensitive countries,” and directed staff in those countries to delete all Party-building materials from electronic devices and destroy physical files. Where documents can’t be destroyed, they should be “sealed and stored” in a secure location or handed over to the Chinese embassy in Cambodia, the document instructed.

In Australia and Canada, CNPC staff are to report to their local Chinese consulate the status of how they have dealt with “sensitive urgent information,” the notice said.

The document also demands that all the company’s overseas party organizations, particularly those located in Malaysia, Singapore, and Saudi Arabia, should “proactively accept the leadership role of the Party committee at Cambodia’s Chinese embassy.”

The instructions also emphasized limiting public exposure of overseas Party activities. It prohibited events from being promoted on Chinese social media such as Weibo and WeChat, and issuing public reports of such activities. Communications about Party members or organizations, and reports on Party-building activities should be sent via encrypted channels. Party members were also banned from raising the Chinese national flag, wearing the Party badge, and displaying the content of Party activities on notice boards.

Chinese diplomats return from Houston consulate shut by US ...

In addition, when holding Party-building activities, staff are not to disclose the identities of Party members and their Party positions, the notice said.

‘Damage Control’

Eftimiades said that it’s very likely this directive was issued to other state-owned enterprises. The notice, he said, revealed an “extraordinary global operation to protect information, to restrict activities so that they don’t come up on the radar of foreign governments.”

James Carafano, vice president of the Heritage Foundation’s institute for national security and foreign policy, said this move would not be surprising given that the regime is likely anticipating much more scrutiny from Western countries.

“If there’s one thing they’re really good at, it’s covering up their tracks,” Carafano told The Epoch Times.

The notice also reveals the close cooperation between the regime and state-owned companies, Eftimiades said.

“A huge dimension of this is the role of the consulates in directing and coordinating the activities of state-owned enterprises abroad,” he said.

The Chinese regime also publicly reveals how Chinese consulates preside over overseas Chinese companies.

A document on “risk prevention guidelines” for overseas Chinese companies, found on the website of China’s Ministry of Foreign Affairs, points out that companies must register with their local consulates and accept their “guidance and management.”

In the event of sudden “safety-related incidents,” Chinese companies must do their public relations under the guidance of corresponding consulates and related Chinese agencies, to “positively guide the public opinion.”

In March 2019, Qi Yu, secretary of the Party committee at China’s Ministry of Foreign Affairs, held a meeting, during which the committee said Chinese consulates should “enhance their political understanding…in order to better serve” the Party.

While the document suggests the CCP has become more cautious, countries shouldn’t let up their guard, Qin warns, adding that as these activities go underground, the Chinese regime is likely to engage in more covert actions, and it’s a long-term threat that countries shouldn’t dismiss.

4 Tankers Headed to Venezuela, Stopped by US

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MIAMI — The Trump administration has seized the cargo of four tankers it was targeting for transporting Iranian fuel to Venezuela, U.S. officials said Thursday, as it steps up its campaign of maximum pressure against the two heavily sanctioned allies.

Last month, federal prosecutors in Washington filed a civil forfeiture complaint alleging that the sale was arranged by a businessman, Mahmoud Madanipour, with ties to Iran‘s Revolutionary Guard Corps, a U.S.-designated foreign terrorist organization. At the time, sanctions experts thought it would be impossible to enforce the U.S. court order in international waters.

A senior U.S. official told The Associated Press that no military force was used in the seizures and that the ships weren’t physically confiscated. Rather, U.S. officials threatened ship owners, insurers and captains with sanction to force them to hand over their cargo, which now becomes U.S. property, the official said.

Prosecutors alleged the four ships were transporting to Venezuela 1.1 million barrels of gasoline. But the tankers never arrived at the South American country and then went missing. Two of the ships later reappeared near Cape Verde, a second U.S. official said.

Both officials agreed to discuss the sensitive diplomatic and judicial offensive only if granted anonymity.

Iran’s ambassador to Venezuela, Hojad Soltani, pushed back on what would appear a victory for the U.S. sanctions campaign, saying Thursday on Twitter that neither the ships nor their owners were Iranian.

“This is another lie and act of psychological warfare perpetrated by the U.S. propaganda machine,” Soltani said. “The terrorist #Trump cannot compensate for his humiliation and defeat by Iran using false propaganda.”

It is not clear where the vessels — the Bella, Bering, Pandi and Luna — or their cargoes currently are. But the ship captains weeks ago turned off their tracking devices to hide their locations, said Russ Dallen, a Miami-based partner at brokerage Caracas Capital Markets, who follows ship movements.

The Bering went dark on May 11 in the Mediterranean near Greece and has not turned on its transponder since, while the Bella did the same July 2 in the Philippines, Dallen said. The Luna and Pandi were last spotted when they were together in the Gulf of Oman on July 10 when the U.S. seizure order came. Shipping data shows that the Pandi, which also goes by Andy, is reporting that it has been “broken up,” or sold as scrap, Dallen said.

As commercial traders increasingly shun Venezuela, Nicolás Maduro’s socialist government has been increasingly turning to Iran.

In May, Maduro celebrated the arrival of five Iranian tankers delivering badly needed fuel to alleviate shortages that have led to days-long gas lines even in the capital, Caracas, which is normally spared such hardships.

Despite sitting atop the world’s largest crude reserves, Venezuela doesn’t produce enough domestically refined gasoline and has seen its overall crude production plunge to the lowest in over seven decades amid its economic crisis and fallout from U.S. sanctions.

The Trump administration has been stepping up pressure on ship owners to abide by sanctions against U.S. adversaries like Iran, Venezuela and North Korea. In May, it issued an advisory urging the global maritime industry to be on the lookout for tactics to evade sanctions like dangerous ship-to-ship transfers and the turning off of mandatory tracking devices — both techniques used in recent oil deliveries to and from both Iran and Venezuela.

One of the companies involved in the shipment to Venezuela, the Avantgarde Group, was previously linked to the Revolutionary Guard and attempts to evade U.S. sanctions, according to prosecutors.

An affiliate of Avantgarde facilitated the purchase for the Revolutionary Guard of the Grace 1, a ship seized last year by Britain on U.S. accusations that it was transporting oil to Syria. Iran denied the charges and the Grace 1 was eventually released. But the seizure nonetheless triggered an international standoff in which Iran retaliated by seizing a British-flagged vessel.

According to the asset forfeiture complaint, an unnamed company in February invoiced Avantgarde for a $14.9 million cash payment for the sale of the gasoline aboard the Pandi. Nonetheless, a text message between Madanipour and an unnamed co-conspirator suggest the voyage had encountered difficulties.

“The ship owner doesn’t want to go because of the American threat, but we want him to go, and we even agreed We will also buy the ship,” according to the message, an excerpt of which was included in the complaint.

Seizure of Three Terror Finance Cyber-Enabled Campaigns

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Global Disruption of Three Terror Finance Cyber-Enabled Campaigns

Largest Ever Seizure of Terrorist Organizations’ Cryptocurrency Accounts

The Justice Department today announced the dismantling of three terrorist financing cyber-enabled campaigns, involving the al-Qassam Brigades, Hamas’s military wing, al-Qaeda, and Islamic State of Iraq and the Levant (ISIS).  This coordinated operation is detailed in three forfeiture complaints and a criminal complaint unsealed today in the District of Columbia.  These actions represent the government’s largest-ever seizure of cryptocurrency in the terrorism context.

These three terror finance campaigns all relied on sophisticated cyber-tools, including the solicitation of cryptocurrency donations from around the world.  The action demonstrates how different terrorist groups have similarly adapted their terror finance activities to the cyber age.  Each group used cryptocurrency and social media to garner attention and raise funds for their terror campaigns.  Pursuant to judicially-authorized warrants, U.S. authorities seized millions of dollars, over 300 cryptocurrency accounts, four websites, and four Facebook pages all related to the criminal enterprise.

Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/) after the conclusion of the case.

“It should not surprise anyone that our enemies use modern technology, social media platforms and cryptocurrency to facilitate their evil and violent agendas,” said Attorney General William P. Barr.   “The Department of Justice will employ all available resources to protect the lives and safety of the American public from terrorist groups.  We will prosecute their money laundering, terrorist financing and violent illegal activities wherever we find them.  And, as announced today, we will seize the funds and the instrumentalities that provide a lifeline for their operations whenever possible.  I want to thank the investigators from the Internal Revenue Service, Department of Homeland Security, Federal Bureau of Investigation, and the prosecutors from the D.C. United States Attorney’s Office and National Security Division for their hard and innovative work in attacking the networks that allow these terrorists to recruit for and fund their dangerous actions.”

“Terrorist networks have adapted to technology, conducting complex financial transactions in the digital world, including through cryptocurrencies. IRS-CI special agents in the DC cybercrimes unit work diligently to unravel these financial networks,” said Secretary of the Treasury Steven T. Mnuchin.  “Today’s actions demonstrate our ongoing commitment to holding malign actors accountable for their crimes.”

“The Department of Homeland Security was born after the September 11, 2001 terrorist attacks and, nearly 20 years later, we remain steadfast in executing our critical mission to safeguard the American people, our homeland, and our values,” said Acting Secretary of Homeland Security Chad F. Wolf.  “Today’s announcement detailing these enforcement actions targeting foreign terrorist organizations is yet another example of the Department’s commitment to our mission. After launching investigations that identified suspected online payments being funneled to and in support of terrorist networks, Homeland Security Investigations skillfully leveraged their cyber, financial, and trade investigative expertise to disrupt and dismantle cyber-criminal networks that sought to fund acts of terrorism against the United States and our allies.  Together with our federal law enforcement partners, the Department will utilize every resource available to ensure that our Homeland is and remains secure.”

“These important cases reflect the resolve of the D.C. United States Attorney’s Office to target and dismantle these sophisticated cyber-terrorism and money laundering actors across the globe,” stated Acting United States Attorney Michael R. Sherwin.  “While these individuals believe they operate anonymously in the digital space, we have the skill and resolve to find, fix and prosecute these actors under the full extent of the law.”

“IRS-CI’s ability to trace funds used by terrorist groups to their source and dismantle these radical group’s communication and financial networks directly prevents them from wreaking havoc throughout the world,” said Don Fort, Chief, IRS Criminal Investigation.  “Today the world is a safer place.”

“As the primary law enforcement agency charged with defeating terrorism, the FBI will continue to combat illicit terrorist financing regardless of platform or method employed by our adversaries,” said FBI Director Christopher Wray. “As demonstrated by this recent operation, the FBI remains committed to cutting off the financial lifeblood of these organizations that seek to harm Americans at home and abroad.”

“Homeland Security Investigations continues to demonstrate their investigative expertise with these enforcement actions,” said ICE Deputy Director and Senior Official Performing the Duties of the Director Matthew T. Albence.  “Together with law enforcement partners, HSI has utilized their unique authorities to bring to justice those cyber-criminal networks who would do us harm.”

Al-Qassam Brigades Campaign

The first action involves the al-Qassam Brigades and its online cryptocurrency fundraising efforts.  In the beginning of 2019, the al-Qassam Brigades posted a call on its social media page for bitcoin donations to fund its campaign of terror.  The al-Qassam Brigades then moved this request to its official websites, alqassam.net, alqassam.ps, and qassam.ps.

al_qassam_1

The al-Qassam Brigades boasted that bitcoin donations were untraceable and would be used for violent causes.  Their websites offered video instruction on how to anonymously make donations, in part by using unique bitcoin addresses generated for each individual donor.

al_qassam_2

 

However, such donations were not anonymous.  Working together, IRS, HSI, and FBI agents tracked and seized all 150 cryptocurrency accounts that laundered funds to and from the al-Qassam Brigades’ accounts.  Simultaneously, law enforcement executed criminal search warrants relating to United States-based subjects who donated to the terrorist campaign.

With judicial authorization, law enforcement seized the infrastructure of the al-Qassam Brigades websites and subsequently covertly operated alqassam.net.   During that covert operation, the website received funds from persons seeking to provide material support to the terrorist organization, however, they instead donated the funds bitcoin wallets controlled by the United States.

The United States Attorney’s Office for the District of Columbia also unsealed criminal charges for two Turkish individuals, Mehmet Akti and Hüsamettin Karataş, who acted as related money launderers while operating an unlicensed money transmitting business.

Al-Qaeda Campaign

The second cyber-enabled terror finance campaign involves a scheme by al-Qaeda and affiliated terrorist groups, largely based out of Syria.  As the forfeiture complaint details, these terrorist organizations operated a bitcoin money laundering network using Telegram channels and other social media platforms to solicit cryptocurrency donations to further their terrorist goals.  In some instances, they purported to act as charities when, in fact, they were openly and explicitly soliciting funds for violent terrorist attacks.  For example, one post from a charity sought donations to equip terrorists in Syria with weapons:

al_qaeda

Undercover HSI agents communicated with the administrator of Reminder for Syria, a related charity that was seeking to finance terrorism via bitcoin donations.  The administrator stated that he hoped for the destruction of the United States, discussed the price for funding surface-to air missles, and warned about possible criminal consequences from carrying out a jihad in the United States.

Posts from another Syrian charity similarly explicitly referenced weapons and extremist activities:

al_qaeda_2
al_qaeda_3.

Al-Qaeda and the affiliated terrorist groups together created these posts and used complicated obfuscation techniques, uncovered by law enforcement, to layer their transactions so to conceal their actions.  Today’s complaint seeks forfeiture of the 155 virtual currency assets tied to this terrorist campaign.

ISIS Campaign

The final complaint combines the Department’s initiatives of combatting COVID-19 related fraud with combatting terrorism financing.  The complaint highlights a scheme by Murat Cakar, an ISIS facilitator who is responsible for managing select ISIS hacking operations, to sell fake personal protective equipment via FaceMaskCenter.com (displayed below)

isis_1.

The website claimed to sell FDA approved N95 respirator masks, when in fact the items were not FDA approved.  Site administrators claimed to have near unlimited supplies of the masks, in spite of such items being officially-designated as scarce.  The site administrators offered to sell these items to customers across the globe, including a customer in the United States who sought to purchase N95 masks and other protective equipment for hospitals, nursing homes, and fire departments.

The unsealed forfeiture complaint seized Cakar’s website as well as four related Facebook pages used to facilitate the scheme.  With this third action, the United States has averted the further victimization of those seeking COVID-19 protective gear, and disrupted the continued funding of ISIS.

The claims made in these three complaints are only allegations and do not constitute a determination of liability.  The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.  Further, charges contained in criminal complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

IRS-CI Cyber Crimes Unit (Washington, D.C.), HSI’s Philadelphia Office, and FBI’s Washington D.C., New York, and Los Angeles field offices are investigating the case. Assistant U.S Attorneys Jessi Camille Brooks and Zia M. Faruqui, and National Security Division Trial Attorneys Danielle Rosborough and Alexandra Hughes are litigating the case, with assistance from Paralegal Specialists Brian Rickers and Bria Cunningham, and Legal Assistant Jessica McCormick.  Additional assistance has been provided by Chainalysis and Excygent.