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Tag: Department of Justice

  • DOD Appears Ready to Fight Long-Term for JEDI Contract

    DOD Appears Ready to Fight Long-Term for JEDI Contract

    The Department of Defense has filed court documents indicating it is prepared to continuing fighting for its JEDI contract decision.

    The industry was rocked when the DOD announced Microsoft as the winner of its Joint Enterprise Defense Infrastructure (JEDI) contract, worth some $10 billion. AWS was considered the favorite for the contract, but lost out to Microsoft’s bid. The company then launched a lawsuit and was granted a temporary injunction.

    in the meantime, Microsoft has claimed that AWS has unfairly used the litigation process to uncover the details of Microsoft’s bid and then altered its own to be competitive. Despite the DOJ and DODinvestigation both concluding Microsoft’s win was just, Amazon has continued to litigate. The DOD has even warned it may have to abandon the JEDI contract, simply to move forward with migrating critical systems to the cloud, a process which the litigation has delayed for roughly a year and a half.

    Despite such warnings, it appears the DOD isn’t quite ready to end its fight, as it has filed new paperwork in the case, an acknowledgement that the case could extend “into late October at the earliest,” according to GovConWire.

    In the meantime, the Pentagon is still signaling it must move forward as soon as possible.

    “The filing merely reflects the proposed schedule for further proceedings in the case,” Russell Goemaere, a spokesman for the Pentagon, said in a statement. “Nothing about this procedural filing changes our previous statements regarding our commitment to establish an enterprise cloud capability for the department — we hope through JEDI — but the DoD’s requirements transcend any one procurement.”

  • Lawmakers May Block FCC’s Ligado 5G Decision

    Lawmakers May Block FCC’s Ligado 5G Decision

    The Federal Communications Commission (FCC) recently voted unanimously to allow Ligado to deploy a low-power 5G network, and lawmakers are not happy.

    In its initial ruling, the FCC authorized “Ligado to deploy a low-power terrestrial nationwide network in the 1526-1536 MHz, 1627.5- 1637.5 MHz, and 1646.5-1656.5 MHz bands that will primarily support Internet of Things (IoT) services.”

    There was only one problem with the FCC’s decision: It was opposed by numerous organizations and agencies, including major airlines, the Departments of Commerce, Defense and Justice. The reason for the objection is the potential for Ligado’s network to interfere with commercial and military GPS equipment.

    In an op-ed published in C4ISRNET, Sen. Jim Inhofe, Sen. Jack Reed, Rep. Adam Smith and Rep. Mac Thornberry lay out the case for why they believe the FCC made a mistake:

    “The problem here is that Ligado’s planned usage is not in the prime mid-band spectrum being considered for 5G — and it will have a significant risk of interference with GPS reception, according to the National Telecommunications and Information Administration (NTIA),” the lawmakers write. “The signals interference Ligado’s plan would create could cost taxpayers and consumers billions of dollars and require the replacement of current GPS equipment just as we are trying to get our economy back on its feet quickly — and the FCC has just allowed this to happen.”

    The lawmakers go on to highlight that no fewer than nine federal agencies and departments did extensive testing and came to the conclusion that Ligado’s network would interfere with existing GPS equipment.

    “Considering the risks, it’s clear the FCC commissioners made the wrong decision regarding Ligado’s plan, which will set a disastrous precedent while impeding ongoing work on spectrum sharing,” the lawmakers continue. “The vulnerabilities to our national and economic security are not worth the risk, particularly for a band of spectrum that isn’t necessary to secure a robust 5G network.

    “We encourage the FCC to withdraw its approval of Ligado’s application and take this opportunity to work with the NTIA and other federal agencies, including the Departments of Defense and Transportation, to find a solution that will both support commercial broadband expansion and protect national security assets. Moreover, we expect the FCC to resolve Department of Defense concerns before moving forward, as required by law.

    “If they do not, and unless President Trump intervenes to stop this from moving forward, it will be up to Congress to clean up this mess.”

    We will continue to monitor the story for the FCC’s response and whatever action is taken by either side.

  • Netflix Was a Big Part of Why Regulators Hated Comcast/TWC Merger

    Netflix Was a Big Part of Why Regulators Hated Comcast/TWC Merger

    By now you’ve probably heard that Comcast has abandoned its push to acquire Time Warner Cable, due to looming concerns that both the Department of Justice’s antitrust division and the Federal Communications Commission were poised to recommend it blocked.

    “Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn’t agree, we could walk away,” said Comcast CEO Brian Roberts.

    Now, both the DoJ and the FCC have issued official statements on the death of the merger, and they both sign a similar tune. A main concern for both the DoJ and the FCC, apparently, was Netflix (& other streaming services, of course) and Net Neutrality.

    Take a look at FCC Chairman Tom Wheeler’s statement (bolding ours):

    Comcast and Time Warner Cable’s decision to end Comcast’s proposed acquisition of Time Warner Cable is in the best interests of consumers. The proposed transaction would have created a company with the most broadband and video subscribers in the nation alongside the ownership of significant programming interests. Today, an online video market is emerging that offers new business models and greater consumer choice. The proposed merger would have posed an unacceptable risk to competition and innovation especially given the growing importance of high-speed broadband to online video and innovative new services. I am proud of our close working relationship throughout the review process with the Antitrust Division of the Department of Justice. Our collaboration provided both agencies with a deeper understanding of the important issues of innovation and competition that the proposed transaction raised.

    And here’s what Attorney General Eric Holder had to say:

    The companies’ decision to abandon this deal is the best outcome for American consumers. The Antitrust Division of the United States Department of Justice has demonstrated, time and again, that it can and will defend the interests of the American consumer no matter the complexity of the issue or the size of the opponent. This is a victory not only for the Department of Justice, but also for providers of content and streaming services who work to bring innovative products to consumers across America and around the world. I commend the Antitrust attorneys and investigators whose outstanding work led to this outcome, and I know that the Department of Justice will continue to fight for fair access and free competition in every industry and every market.

    According to the Wall Street Journal, Holder had already authorized the DoJ antitrust officials to file a lawsuit against the deal.

    Netflix was vehemently against the merger from the beginning, as the streaming company was forced to pay Comcast a fee for access.

    Netflix said that the merger would’ve “set up and ecosystem that calls into questions what we to date have taken for granted: that a consumer who pays for connectivity to the internet will be able to get the content she requests.”

    It appears the feds agreed.

  • Comcast / Time Warner Cable Merger Is Dead, Officially

    Comcast / Time Warner Cable Merger Is Dead, Officially

    It’s official. Comcast has announced it has abandoned its efforts to acquire Time Warner Cable, in a deal that would’ve been valued at around $45 billion. This follows reports on Thursday that said the Department of Justice and Federal Communications Commission were both gearing up to recommend against the deal.

    If the merger had been approved, the Comcast-TWC behemoth would’ve controlled 57% of the US broadband market and 30% of the cable market.

    “Today, we move on. Of course, we would have liked to bring our great products to new cities, but we structured this deal so that if the government didn’t agree, we could walk away. Comcast NBCUniversal is a unique company with strong momentum. Throughout this entire process, our employees have kept their eye on the ball and we have had fantastic operating results. I want to thank them and the employees of Time Warner Cable for their tireless efforts. I couldn’t be more proud of this company and I am truly excited for what’s next,” said Comcast CEO Brian Roberts in a statement.

    Time Warner Cable CEO Robert Marcus also weighed in on the decision, saying,

    “We have always believed that Time Warner Cable is a one-of-a-kind asset. We are strong and getting stronger. Throughout this process, we’ve been laser focused on executing our operating plan and investing in our plant, products and people to deliver great experiences to our customers. Through our strong operational execution and smart capital allocation, we are confident we will continue to create significant value for shareholders. I’m extremely proud of the professionalism, dedication and resiliency our 55,000 employees have shown over the past year and thank them for their continued commitment to Time Warner Cable.”

    Comcast’s line for over a year had been that the acquisition is “pro-consumer, pro-competitive, strongly in the public interest, and approvable” – but in the end the regulatory bodies in charge of reviewing the merger did not agree.

    The deal was unpopular from the start, as consumer advocates argued that the company would be anti-competitive and bad for customers.

    “Should the transaction survive the FCC’s and DOJ’s reviews, we believe that Comcast-TWC’s unmatched power in the telecommunications industry would lead to higher prices, fewer choices, and poorer quality services for Americans – inhibiting US consumers’ ability to fully benefit from modern technologies and American businesses’ capacity to innovate and compete on a global scale,” wrote Senators Al Franken, Bernie Sanders, Edward Markey, Ron Wyden, Elizabeth Warren, and Richard Blumenthal in a recent letter to the DoJ and FCC.

    This final decision comes on the heels of reports that the FCC had proposed a “hearing designation order” for the merger review – a move that signaled the deal was fast approaching dead.

    “In effect, that would put the $45.2 billion merger in the hands of an administrative law judge, and would be seen as a strong sign the FCC doesn’t believe the deal is in the public interest,” wrote the Wall Street Journal.

    The FCC wasn’t the only regulatory agency with doubts about the merger. Antitrust officials at the Department of Justice were reportedly ready to recommend killing the merger, citing concerns that the two companies would create an entity that would ultimately be too large and harm consumers.

    Here’s a final way to look at it – with this, the two most-hated companies in America will not be joining forces.

    So, who’s going to try to buy Time Warner Cable now?

    Image via Steven Depolo, Flickr Creative Commons

  • Comcast Is Giving Up on Its TWC Deal: Report

    Comcast Is Giving Up on Its TWC Deal: Report

    Comcast is planning to kill its proposed acquisition of Time Warner Cable before the feds can kill it first.

    Bloomberg is quoting sources who say that Comcast is ready to back away from the merger, which would be valued at around $45 billion.

    This comes on the heels of reports that the FCC had proposed a “hearing designation order” for the merger review – a move that signaled the deal was fast approaching dead.

    “In effect, that would put the $45.2 billion merger in the hands of an administrative law judge, and would be seen as a strong sign the FCC doesn’t believe the deal is in the public interest,” wrote the Wall Street Journal.

    The FCC isn’t the only regulatory agency with doubts about the merger. Antitrust officials at the Department of Justice were reportedly ready to recommend killing the merger, citing concerns that the two companies would create an entity that would ultimately be too large and harm consumers.

    Comcast met with reps from both the DoJ and the FCC to try to iron out a deal – compromises to make the merger happen – but it appears those talks went nowhere.

    But as Bloomberg points out, the FCC pill was much tougher to swallow than the one from the Justice Department, however bitter it may have been:

    While the DOJ has to present a case in court to block the deal, an FCC hearing referral could prove to be the bigger obstacle to Comcast’s bid to expand its cable and Internet footprint. The last time the FCC staff proposed sending a merger to a hearing was over AT&T Inc.’s bid to buy T-Mobile USA Inc. in 2011, prompting the companies to drop the deal. The Justice Department had already brought a lawsuit seeking to block the merger.

    Comcast’s line for over a year has been that the acquisition is “pro-consumer, pro-competitive, strongly in the public interest, and approvable.” We’ll see if Comcast is soon signing a different tune. A final decision on whether to abandon the deal could come as early as Friday.

    Image via Steven Depolo, Flickr Creative Commons

  • Elizabeth Warren, Al Franken Among Six Senators Urging a Swift Death for the Comcast/Time Warner Merger

    Elizabeth Warren, Al Franken Among Six Senators Urging a Swift Death for the Comcast/Time Warner Merger

    In a letter addressed to Federal Communications Commission Chairman Tom Wheeler and Attorney General Eric Holder, six Senators are urging the blockage of Comcast’s proposed merger with Time Warner Cable. The letter comes just one day before representatives from Comcast and Time Warner Cable are set to meet with DoJ antitrust officials in the hopes of saving a deal that appears to be on shaky ground.

    “Should the transaction survive the FCC’s and DOJ’s reviews, we believe that Comcast-TWC’s unmatched power in the telecommunications industry would lead to higher prices, fewer choices, and poorer quality services for Americans – inhibiting US consumers’ ability to fully benefit from modern technologies and American businesses’ capacity to innovate and compete on a global scale,” write Senators Al Franken, Bernie Sanders, Edward Markey, Ron Wyden, Elizabeth Warren, and Richard Blumenthal.

    “Since the proposal was announced last year, we have heard from consumers across the nation, as well as from advocacy groups, trade associations, and companies of all sizes, all of whom fear that the deal would harm competition across several different markets and would not serve the public interest,” says the letter.

    “We’ve also heard from constituents in our home states who are rightfully frustrated about their increasingly high cable and Internet bills and are concerned that the proposed acquisition will only drive those prices higher. Unfortunately, with only a handful of cable and Internet providers dominating the market, consumers are often left with little choice but to pay the price a given provider demands and have little say over what content is made available to them.”

    If the merger were to go through, the Comcast-TWC behemoth would control 57% of the US broadband market and 30% of the cable market.

    But it’s far from a sure thing. In fact, recent reports have indicated that the Department of Justice is poised to recommend blocking the deal. Upon hearing that news, Comcast and Time Warner Cable rushed into action and are set to meet face-to-face with regulators for the first time since they proposed the deal. It is expected that Comcast will attempt to make concessions to satisfy regulators, some of whom are as wary as the Senators.

    Comcast’s official line has always been that the deal is not anti-competitive.

    “Comcast’s merger with Time Warner Cable will ensure that a responsible and committed steward delivers advanced video and high-speed data services and innovation to these customers. The proposed transaction is pro-consumer, pro-competitive, strongly in the public interest, and approvable,” says the company.

    “We urge you to defend American competition and innovation and ensure the Americans have affordable access to high-quality telecommunications services. We hope you’ll take a stand for US consumers and businesses and reject Comcast’s proposed acquisition of TWC,” say the Senators.

    Image via Wikimedia Commons, h/t Ars Technica

  • Comcast, TWC Will Meet with Regulators to Try to Save Deal

    Comcast, TWC Will Meet with Regulators to Try to Save Deal

    With their proposed merger on shaky ground, representatives from Comcast and Time Warner Cable are planning to meet with Justice Department officials in the hopes of negotiating a pathway for the deal to proceed.

    This will be the first such meeting between the cable companies and regulators since the merger was announced.

    The Wall Street Journal Reports that Comcast will likely offer concessions to assuage wary antitrust officials at the DoJ. From the WSJ:

    The Wednesday meeting with antitrust officials could be the first of many, but it isn’t clear whether the companies can offer concessions that will satisfy regulators.

    Looming over any discussion about merger remedies will be the concessions Comcast made in 2011 to win approval to acquire control of NBCUniversal. People familiar with the current review process say the Justice Department and the FCC have been examining whether Comcast has fully complied with those earlier commitments.

    Last week, Bloomberg reported that antitrust officials at the Department of Justice were ready to recommend killing the merger, citing concerns that the two companies would create an entity that would ultimately be too large and harm consumers. The Federal Communications Commission is also looking into the merger, and has plenty of concerns of its own, according to reports.

    Comcast’s official line is that the deal is not anti-competitive.

    “Comcast’s merger with Time Warner Cable will ensure that a responsible and committed steward delivers advanced video and high-speed data services and innovation to these customers. The proposed transaction is pro-consumer, pro-competitive, strongly in the public interest, and approvable,” says the company.

    Image via Steven Depolo, Flickr Creative Commons

  • Regulators Ready to Kill Comcast / TWC Merger: Report

    Regulators Ready to Kill Comcast / TWC Merger: Report

    One of the regulatory agencies looking over the proposed Comcast / Time Warner Cable merger may be about to give it the thumbs down, citing concerns over potential harm to customers.

    Bloomberg cites the ubiquitous “people familiar with the matter” in saying that antitrust lawyers at the Department of Justice are poised to recommend against the merger.

    From Bloomberg:

    Attorneys who are investigating Comcast’s $45.2 billion proposal to create a nationwide cable giant are leaning against the merger out of concerns that consumers would be harmed and could submit their review as soon as next week, said the people.

    The antitrust lawyers will present their findings to Renata Hesse, a deputy assistant attorney general for antitrust, who will decide, along with the division’s top officials, whether to file a federal lawsuit to block the deal, they said.

    The Justice Department lawyers have been contacting outside parties in the last few weeks to shore up evidence to support a potential case against the merger, one of the people said.

    The other agency reviewing the deal, the Federal Communications Commission, is not sold either, according to reports. The deal, which looked like a sure thing a year ago, is in serious danger of falling apart. Some have already proclaimed it dead.

    Bloomberg has news on that front, too, saying “officials at the antitrust division and the Federal Communications Commission, which is also reviewing the deal, aren’t negotiating with Comcast about conditions to the merger that would resolve concerns.”

    Comcast’s official line on the merger is that it is pro-consumer and pro-competition.

    Comcast’s merger with Time Warner Cable will ensure that a responsible and committed steward delivers advanced video and high-speed data services and innovation to these customers. The proposed transaction is pro-consumer, pro-competitive, strongly in the public interest, and approvable. It will deliver better services and technology to Time Warner Cable’s subscribers and result in no reduction of choice for consumers. Following the acquisition and possible divestiture of some subscribers, Comcast subscribers will represent essentially the same share of nationwide MVPD subscribers as Comcast’s shares following the Adelphia and AT&T Broadband transactions in a much more competitive and dynamic marketplace. This transaction will create a world-class technology and media company, differentiated by its ability to deliver ground-breaking products on a superior network while leveraging a national platform to create operating efficiencies and economies of scale.

    Last month, the fourth-largest cable provider agreed to acquire the sixth-largest as Charter Commutations offered $10,4 billion for Bright House Networks. If the Comcast / Time Warner Cable deal were to go through, the #1 and #2 providers in the US would combine to form a behemoth. The two remain the most despised companies in America.

    Image via Steven Depolo, Flickr Creative Commons

  • Antitrust Prosecution Comes To E-Commerce

    Antitrust Prosecution Comes To E-Commerce

    The U.S. Department of Justice announced that it has charged a former e-commerce executive with price fixing, in what would be the DoJ’s antitrust division’s first online marketplace prosecution. The defendant is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years and a fine of $1 million for individuals.

    David Topkins, who sold posters and other art through Amazon Marketplace, is facing a one-count felony charge, which was filed in the U.S. District Court of the Northern District of California in San Francisco. It alleges that Topkins and his “co-conspirators” fixed prices of certain posters sold from September 2013 through January 2014. The charge also alleges that Topkins and said co-conspirators adopted “specific pricing algorithms for the sale of certain posters with the goal of coordinating changes to their respective prices, and wrote computer code that instructed algorithm-based software to set prices.”

    The prosecution of Topkins came about from an investigation into price fixing in the online wall décor industry. The DoJ’s antitrust division is still conducting this with help from the FBI. Topkins agreed to plead guilty and pay a $20,000 criminal fine as well as cooperate with the ongoing investigation. The plea agreement is still subject to court approval. The maximum fine of $1 million can be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either amount is greater. It’s unclear what those figures are in this case.

    “Today’s announcement represents the division’s first criminal prosecution against a conspiracy specifically targeting e-commerce,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “We will not tolerate anticompetitive conduct, whether it occurs in a smoke-filled room or over the Internet using complex pricing algorithms. American consumers have the right to a free and fair marketplace online, as well as in brick and mortar businesses.”

    “These charges demonstrate our continued commitment to investigate and prosecute individuals and organizations seeking to victimize online consumers through illegal anticompetitive conduct,” said Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office. “The FBI is committed to investigating price fixing schemes and remains unwavering in our dedication to bring those responsible for theses illegal conspiracies to justice.”

    Amazon itself, which has not been implicated in the case, has so far remained silent on the news.

  • Three Men Charged in Biggest Email Data Breach in History

    Three Men Charged in Biggest Email Data Breach in History

    An unsealed indictment reveals that the US Justice Department has charged three men in what it is calling “one of the largest reported data breaches in US history. It is, in fact, that biggest email data breach ever.

    “These men — operating from Vietnam, the Netherlands, and Canada — are accused of carrying out the largest data breach of names and email addresses in the history of the Internet,” said Assistant Attorney General Caldwell. “The defendants allegedly made millions of dollars by stealing over a billion email addresses from email service providers. This case again demonstrates the resolve of the Department of Justice to bring accused cyber hackers from overseas to face justice in the United States.”

    The indictment alleges that between February 2009 and June 2012, two Vietnamese citizens hacked at least eight email service providers. This netted them access to over a billion email addresses, from which they stole personal information. Twenty eight-year-old Viet Quoc Nguyen and 25-year-old Giang Hoang Vu allegedly made millions spamming “tens of millions” of email users.

    “In August 2012, the FBI, with the assistance of its legal attaches stationed abroad and in conjunction with Dutch law enforcement officials, executed a search warrant in the Netherlands that disrupted continued compromises of those companies while allowing U.S. authorities to advance its investigation,” explains the FBI’s Special Agent in Charge J. Britt Johnson.

    Vu has already pleaded guilty to the charges. Nguyen is on the run. The third man in this specific indictment is Canadian David-Manuel Santos Da Silva, 33, who is accused of helping Nguyen and Vu launder their ill-gotten money. He’s currently sitting in jail awaiting trial.

    “This case reflects the cutting-edge problems posed by today’s cybercrime cases, where the hackers didn’t target just a single company; they infiltrated most of the country’s email distribution firms,” said Acting U.S. Attorney Horn. “And the scope of the intrusion is unnerving, in that the hackers didn’t stop after stealing the companies’ proprietary data—they then hijacked the companies’ own distribution platforms to send out bulk emails and reaped the profits from email traffic directed to specific websites.”

    “Our success in this case and other similar investigations is a result of our close work with our law enforcement partners,” said Special Agent in Charge Moore. “The Secret Service worked closely with the Department of Justice and the FBI to share information and resources that ultimately brought these cyber criminals to justice. This case demonstrates there is no such thing as anonymity for those engaging in data theft and fraudulent schemes.”

    Speaking of cyber crime, The US Government just created a brand new agency for organizing and disseminating information regarding cyber threats.

    Image via Thinkstock

  • Al Franken Pens Letter To DOJ On ISIS Recruitment

    Al Franken has taken a bit of a stand recently to bring attention to ISIS (also known as ISIL or the Islamic state) efforts to recruit members inside the US and to disallow those who have associations with the terror group to return to the US, according to CBS.

    He stated, “In my experience, no one is more upset about young members of their communities going to fight alongside our enemies than are those communities themselves. Minnesotans of all backgrounds and faiths are committed to seeing this evil eradicated and justice being done.”

    Al Franken, in his letter, did address his concern about President Obama’s alleged lack of alarm for what is happening in Syria and neighboring lands with ISIS, as well as the administration’s lack of a solid plan of defense.

    However, that tone wasn’t really tough enough, says Republican Senate candidate Mike McFadden. He indicated that Al Franken and other Democrats should not tolerate the “foreign policy blunders” of the Obama administration.

    “The president, as you know, last week said there is no strategy regarding ISIS,” McFadden said. “I think that’s unacceptable.”

    He gave this statement against Al Franken as an example,

    “Senator Franken has supported President Obama and all of his foreign policy blunders every step of the way,” McFadden said. “Senator Franken’s kept his head down; he’s been invisible, and the world has become a more dangerous place.”

    Al Franken, for his part, doesn’t seem to want to make the letter into a political pawn, but is hoping to prod some action out of a seemingly disconnected Congress and president.

    https://www.youtube.com/watch?v=aa7T0UdBOW0

    Of the president’s statement that there was no plan in place to address ISIS, he delicately said, “I certainly think it wasn’t the president’s finest moment when he said he had no plan for ISIS in Syria.”

    What do you think? Are Republicans just trying to politicize this horrific situation or are Democrats not doing enough to spur their president into action?

  • Amber Alerts: Do They Save Lives?

    In 1996, nine-year-old Amber Hagerman was abducted while riding her bicycle in Arlington, Texas. Her body was found four days later in a storm drainage ditch. Her murder has never been solved.

    In the years that followed, Amber’s family and friends worked tirelessly, not only to try to find her murderer, but to help ensure that such a thing never happens again. That very year, the basic idea and structure for Amber Alerts was in place, but was being handled manually. In 1998, the first fully automated Alert Notiication System came online.

    Since then, the Amber Alert system has expanded with every technological opportunity it can find. Amber alerts are distributed via smartphone apps, text messages, electronic traffic signs on highways, commercial and satellite radio stations, and even on electronic billboards of participating companies.

    The term “Amber Alert” has been modified. While its roots will always be with Amber Hagerman, it is now said to stand for “America’s Missing: Broadcast Emergency Response”.

    But does it work?

    Some Amber Alerts are issued due to custodial issues. A non-custodial parent fails to bring a child back home when arranged. If the other criteria for an Amber Alert are present, police may issue the alert.

    The criteria are:

    1. Law enforcement must confirm that an abduction has taken place.
    2. The child must be at risk of serious injury or death.
    3. There must be sufficient descriptive information of child, captor, or captor’s vehicle to issue an alert.
    4. The child must be under 18 years of age.

    In the case of a non-custodial parent issue, if that parent has a history of violence, is believed to be under the influence of drugs, or some other reason that is determined to put the child at risk, an Alert may be issued.

    Other cases include children who were in carjacked vehicles, as well as outright abductions like Hagerman’s.

    The program is considered very effective. It has helped save the lives of 495 children nationwide. One of the goals of the program is not only to respond very quickly in the event of an abduction, but to discourage such crimes from ever occurring because the odds of getting away with it are getting slimmer as the avenues for Alerts become ubiquitous. If a child’s description and other information are spread so quickly that they outrun the perpetrator, that narrow window to save a life becomes more effective.

    Image via AmberAlert.Gov

  • Credit Suisse Pleads Guilty to U.S. Tax Evasion

    Credit Suisse Pleads Guilty to U.S. Tax Evasion

    Swiss banking firm Credit Suisse this week pleaded guilty to U.S. tax evasion charges. According to the U.S. Department of Justice, Credit Suisse is the largest bank to plead guilty to such charges in over two decades.

    The case surrounds a years-long investigation by the U.S. government into a conspiracy to aid U.S. taxpayers in avoiding taxes. The charges allege that Credit Suisse and its subsidiaries “actively” participated in helping account holders deceive the Internal Revenue Service (IRS) through the use of undeclared bank accounts. The bank used offshore accounts under false business names to shield its customers’ funds from the U.S.

    The Justice Department‘s investigation revealed that Credit Suisse’s involvement in the conspiracy spanned decades and involved hundreds of the bank’s employees. At least one Credit Suisse subsidiary is alleged to have been helping Americans evade tax payments for over 100 years. Attorney General Eric Holder stated that Credit Suisse destroyed bank records, concealed bank transactions, flouted banking disclosure requirements, and destroyed documents sought by the Justice Department as part of its investigation.

    Credit Suisse will pay more than $2.6 billion to U.S agencies as part of the plea agreement. $1.3 billion will be paid to the U.S. as a fine, $670 million will be paid as restitution to the IRS, $100 million will be paid to the Board of Governors of the Federal Reserve, and $715 million will be paid to the New York State Department of Financial Services.

    The Justice Department characterized the guilty plea as an example that the department is not influenced by big business.

    “This case shows that no financial institution, no matter its size or global reach, is above the law,” said Holder. “When the Department of Justice conducts investigations, we will always follow the law and the facts wherever they lead. We will never hesitate to criminally sanction any company or individual that breaks the law. A company’s profitability or market share can never and will never be used as a shield from prosecution or penalty. And this action should put that misguided notion definitively to rest.”

    Image via Facebook

  • Student Loans: Sallie Mae To Refund Military Members Who Paid Too Much Interest

    Student loans are already bad enough, but the interest rates are what kills most graduates trying to pay it all back. With interest rates capped at 6 percen for military members, it’s not as bad as it could be. Unfortunately for some, their interest rates were not capped at the federal maximum. For those suffering under the burden of high interest rates, you might soon have a refund check on the way.

    The Justice Department announced today that it has reached a settlement with Sallie Mae that will see the loan provider refunding $60 million to military members that were paying more than the maximum 6 percent interest under federal law. Under the settlement, some 60,000 service members will receive a refund check from Sallie Mae. Don’t go counting your money just yet though as the settlement has only been brought before a federal court. That being said, the court is pretty much guaranteed to approve the settlement as Sallie Mae would like to have the matter settled as soon as possible.

    According to the Department of Justice, Sallie Mae has been charging more than the federal maximum of six percent for service members since 2005. The Department also says that Sallie Mae improperly obtained default judgments against servicemembers during that time.

    To help set things right, the Department of Justice didn’t just request a refund. The settlement requires Sallie Mae to have all three major credit bureaus delete negative credit caused by its charging of high interest rates and default judgments. It must also streamline the process that servicemembers use to request benefits under the SCRA.

    “Federal law protects our servicemembers from having to repay loans under terms that are unaffordable or unfair,” said Attorney General Eric Holder. “That is the least we owe our brave servicemembers who make such great sacrifices for us. But as alleged, the student lender Sallie Mae sidestepped this requirement by charging excessive rates to borrowers who filed documents proving they were members of the U.S. military. By requiring Sallie Mae to compensate its victims, we are sending a clear message to all lenders and servicers who would deprive our servicemembers of the basic benefits and protections to which they are entitled: this type of conduct is more than just inappropriate; it is inexcusable. And it will not be tolerated.”

    If you are a servicemember affected by this settlement, you won’t have to do much. The government is putting together a group that will identify those affected by Sallie Mae’s actions and get the refund to you. There’s no information available just yet, but the government says it will have a Web site up when it’s able to start distributing refunds to those affected.

    Image via Thinkstock

  • Bridgestone Executive Jailed For Price Fixing

    Bridgestone executive Yusuke Shimasaki this week pleaded guilty to charges related to an international car part price-fixing and bid-rigging conspiracy. Two other Bridgestone executives, Yasuo Tyuto and Isao Yoshida, were also indicted this week for their roles in the conspiracy.

    Shimasaki will serve one year and six months in prison and pay a $20,000 fine. As part of the plea agreement, Shimasaki has agreed to cooperate with the U.S. Department of Justice’s investigation into the price-fixing.

    Shimasaki pleaded guilty to one charge of price fixing and bid riggin in violation of the Sherman Act. The conviction stems from a wide-ranging conspiracy that Bridgestone Corp. participated in from January 2001 until December 2008. The company met with others during that time to artificially inflate the prices of certain rubber components for vehicles. These rubber parts were then sold to car manufacturers including Nissan, Toyota, and Suzuki. In February Bridgestone was fined $425 million for its part in the collusion.

    According to Shimasaki’s plea agreement, he participated in the conspiracy from January 2001 until December 2008. He moved up through the company as a Bridgestone sales manager, EVP, and then general sales manager for the company during that time.

    Shimasaki is one of 33 different people charged in connection to the price-fixing scandal. In addition, 26 separate companies have been found guilty of participating in the conspiracy. These companies have paid a combined $2.29 billion in fines to the U.S. government. The FBI and Justice Department are continuing to investigate the anticompetitive practices uncovered in automotive industry in recent years.

    “The charge today once again demonstrates the Antitrust Division’s vigorous commitment to hold individuals accountable for engaging in anticompetitive conduct,” said Brent Snyder, deputy assistant attorney general for the criminal enforcement program of the Justice Department’s Antitrust Division. “The division’s ongoing investigation has resulted in more than two dozen executives serving prison time for their participation in illegal conspiracies involving auto parts.”

    Image via Bridgestone

  • App Pirates Guilty of Copyright Infringement

    Back in January the U.S. charged four people in connection with pirate app stores developed for Android devices. Now all four of these defendants has pleaded guilty to charges of conspiracy to commit criminal copyright infringement. The cases represent the U.S. Justice Department’s first cases against alleged mobile app pirates, and now appear to have been a success.

    Thomas Pace of Oregon City Oregon is the latest of the pirates to plead guilty to copyright the charges. The 38-year-old Pace was a member of the Appbucket Group, the developers of the Appbucket market for Android. Through their market app the Appbucket Group distributed more than one million copyrighted Android apps without permission from the apps’ creators from 2010 to 2012. The retail value of those apps was estimated by the U.S. Justice Department to total over $700,000.

    Pace’s sentencing is scheduled for July 9. He faces up to five years in prison.

    Two other members of the Appbucket Group, Thomas Dye and Nicholas Narbone, both pleaded guilty to the same conspiracy charge back in March.

    A fourth pirate, Kody Jon Peterson of Clermont, Florida, pleaded guilty to the same conspiracy charge on Monday. The 22-year-old Peterson was a member of the SnappzMarket Group, an organization similar to the Appbucket Group. SnappzMarket operated an alternative Android app market from 2011 to 2012, offering over one million copyrighted Android apps. The SnappzMarket is estimated to have distributed over $1.7 million worth of Android software. The SnappzMarket app was shut down by the U.S. government in late 2013 following an FBI investigation into the group.

    Post by SnappzMarket.

    Peterson’s sentencing has not yet been scheduled.

    “These crimes involve the large-scale violation of intellectual property rights in a relatively new and rapidly growing market,” said Mythili Raman, Acting Assistant Attorney General for the Criminal Division of the Justice Department. “While this represents the first counterfeit apps case by the Department of Justice, it exemplifies our longstanding commitment to prosecute those who steal the creative works of others.”

    Image via Facebook

  • HP to Pay $108 Million Over Bribery and Money Laundering Charges

    Hewlett-Packard this week agreed to pay $108 million to the U.S. Securities and Exchange Commission and the U.S. Department of Justice to settle money laundering and bribery charges. The charges were brought against HP for violations of the Foreign Corrupt Practices Act. According to the charges, the company’s subsidiaries provided substantial bribes to officials in foreign countries to secure IT contracts.

    “Hewlett-Packard lacked the internal controls to stop a pattern of illegal payments to win business in Mexico and Eastern Europe,” said Kara Brockmeyer, chief of the FCPA Unit of the SEC’s Enforcement Division. “The company’s books and records reflected the payments as legitimate commissions and expenses. Companies have a fundamental obligation to ensure that their internal controls are both reasonably designed and appropriately implemented across their entire business operations, and they should take a hard look at the agents conducting business on their behalf.”

    Three of HP’s subsidiaries in Mexico, Poland, and Russia were implicated by an SEC-led investigation.

    In Mexico HP was found to have funneled at least $125,000 through a state-owned oil company to a consultant in exchange for help in winning a $6 million government contract. According to the SEC, HP Mexico salespersons referred to this payment as an “influencer fee.”

    In Poland, HP bribed a government official from 2006 to 2010 in exchange for securing IT contracts. The Polish official was paid, in off-the-books cash, a percentage of the revenues earned through the contracts.

    In Russia HP paid bribes to agents and consultants to secure government hardware and software contracts. This occurred between 2000 and 2007.

    HP released a statement this week characterizing the bribery and money laundering as the work of a small number of already-fired employees. The company emphasized that it will comply with its obligations under the terms of the settlement.

    “The misconduct described in the settlement was limited to a small number of people who are no longer employed by the company,” said John Schultz, EVP and general counsel, at HP. “HP fully cooperated with both the Department of Justice and the Securities and Exchange Commission in the investigation of these matters and will continue to provide customers around the world with top quality products and services without interruption.”

    As part of the settlement, HP has admitted to violating the internal controls and books and records provisions of the Securities Exchange Act. The company will pay $26.47 million to the SEC, $2.53 million in IRS forfeiture, $5 million in prejudgement interest, and multiple fines totaling $74.2 million.

    Image via HP

  • Alabama Sheriff Guilty of Beating Door-to-Door Salesman

    An Alabama county sheriff has pleaded guilty to beating an unarmed, handcuffed man. According to the U.S. Department of Justice, Keith McCray, a criminal investigator at the Macon County, Alabama Sheriff’s Office, admitted to violating the civil rights of the prisoner on Independence Day last year.

    McCray has been found guilty of one felony count of deprivation of rights under color of law. He now faces up to 10 years in prison and a fine of up to $250,000.

    “While we look to law enforcement to maintain the safety and security of our citizens, their position of authority does not give them the right to act outside the bounds of the law,” said George Beck, Jr., U.S. Attorney for the Middle District of Alabama. “We trust them to protect and serve our communities. While most members of law enforcement serve honorably, McCray breached this trust and must be held accountable. Failure to do so would discredit the noble service of every other officer, and weaken the public’s trust in those who are sworn to protect them.”

    The incident occurred on July 4, 2013 when McCray arrested a door-to-door salesman in Tuskegee, Alabama. McCray then took the man, who had been selling alarm systems, to the Macon County Jail. According to court documents, McCray then struck the salesman four times in the face and head, all while the man was handcuffed and, according to the Justice Department, “posed no threat.”

    “The defendant attacked an innocent citizen who was simply trying to earn a living on the day of the incident,” said Jocelyn Samuels, acting assistant attorney general for the Civil Rights Division of the Justice Department. “When he assaulted the defenseless victim, he violated the trust put in him by the community as well as the law. The Department will continue to hold accountable those who abuse their authority.”

  • Albuquerque Protests Turn Violent

    Albuquerque Protests Turn Violent

    Earlier this month, James Boyd, age 38, was confronted by police officers for illegally camping in the Sandia Foothills in Albuquerque, New Mexico. After a somewhat brief standoff, Boyd and the officers had come to a peaceful agreement of sorts. “All right, don’t change up the agreement,” stated Boyd as he began to gather his belongings. “I’m going to try to walk with you.”

    Before Boyd could get said opportunity to walk with the police, however, one of the officers is heard yelling, “Do it!”

    As soon as the command was made, officers fired a flash-bang grenade at Boyd’s feet, disorienting the homeless man. After the grenade goes off, Boyd brandishes two knives in the air above his head, his intent being unknown. At that moment, two officers opened fire on Boyd, dropping him to the ground.

    “Please don’t hurt me anymore. I can’t move,” Boyd pleaded as the officers approached his prostrate body.

    Boyd would die in the hospital the next day.

    It was this incident, plus the shooting and killing of another man approximately one week later, which prompted the protests in Albuquerque this Sunday.

    The call for protests began when the hacktivist group Anonymous posted an online video condemning the actions of the Albuquerque Police Department (APD) and asking citizens to march in the streets of Albuquerque near the police department. Anonymous also vowed to take cyber-action against the police department, a task in which they succeeded in by taking down the APD website on Sunday.

    https://www.youtube.com/watch?v=kuinzEynAxM

    While the majority of the protesting on Sunday was peaceful, tensions surged as the evening hours approached. When protesters refused to leave the streets, police officers used tear gas to disperse the crowds. According to the mayor of Albuquerque, Richard Berry, at least one officer was injured by a thrown rock and another was trapped in a vehicle by protesters.

    Despite the fact that Mayor Berry believes the protests devolved into “mayhem” Sunday night, he apparently values the cause the protesters are backing, stating, “I think it’s the right thing. We need answers as a community. I want answers as a mayor,” when asked to give his opinion of the impending federal investigation into the over-use of deadly force by the APD.

    Since 2010, APD officers have been involved in 36 shootings, 22 of which were fatal. During those four years, police misconduct lawsuits have also cost taxpayers a whopping $24 million.

    In comparison, the city of New York has had 25 fatal police shootings in two years – albeit for a city that hosts 15 times as many citizens.

    Citizens of Albuquerque and the Department of Justice are not the first bodies to act out against the magnitude of police violence, though. In 2011, the City Council of Albuquerque requested that Mayor Berry pursue a federal investigation into the APD’s use of deadly force, a request Mayor Berry vetoed. One year ago, the city also asked for the Mayor to fire the current police chief, another concern which went unnoticed.

    As it currently stands, the City Council is voicing its concern once again in light of the 2014 killings.

    Image via Twitter

  • Texas County Commissioner Charged For Bribery

    The saying goes that all politics are local. Whether or not this is true, it is clear that all politicians, from the U.S. congress down to the mayors of small towns, are susceptible to corruption.

    With so much money riding on political decisions, the most common type of corruption is undoubtedly bribery. While taking a little extra on the side to help a few friends may seem harmless enough for small-time politicians, it contradicts the competition and meritocracy that so many Americans rely on. It can also lead to federal prison, as one Texas politician may soon discover.

    The FBI this week arrested 36-year-old Kristopher Michael Montemayor on charges of bribery. Montemayor was a county commissioner for Precinct 1 of the Webb County, Texas Commissioners Court.

    Montemayor was arrested following a federal grand jury indictment that charged the man with two counts of federal programs bribery. The commissioner allegedly accepted bribes in exchange for jobs and favors while working for the county. The grand jury’s indictment has now been unsealed following the commissioner’s arrest.

    According to charges brought by the U.S. Department of Justice, Montemayor is alleged to have accepted a 2012 Ford truck valued at approximately $37,015 in exchange for providing jobs to the truck’s owner and the truck owner’s spouse.

    The case against Montemayor was investigated by the FBI out of Laredo, Texas. The commissioner was eventually caught by an undercover law enforcement agent who posed as a businessman.

    As alleged in court documents, Montemayor accepted around $11,000 and $2,700 in electronics from the undercover agent. In return the commissioner had “promised to take official action” to promote the undercover agent’s fake business interests.

    If convicted Montemayor faces up to 10 years in prison for each of the two bribery charges, which also each carry a fine of up to $250,000.

    Image via Thinkstock

  • Toyota Settlement Pays $1.2 Billion to the U.S.

    The U.S. Department of Justice today announced that Toyota Motor Corporation has agreed to pay $1.2 billion to the U.S. to settle a criminal wire fraud charge. It is the largest financial penalty of this kind imposed by the U.S. on a vehicle manufacturer.

    The settlement surrounds the well-publicized recall of Toyota and Lexus vehicles over manufacturing errors that could cause “unintended acceleration.”

    The Justice Department’s case against Toyota claimed that Toyota knowingly defrauded consumers in late 2009 and early 2010 through “misleading statements” touting the safety of its vehicles. As part of the settlement Toyota is now admitting that U.S. consumers were mislead by statements about the acceleration issue.

    The agreement also puts in place an independent monitor to review Toyota’s safety-related public relations, statements, and reporting. Toyota’s compliance is required for three years for the Justice Department to dismiss the wire fraud charge.

    “Rather than promptly disclosing and correcting safety issues about which they were aware, Toyota made misleading public statements to consumers and gave inaccurate facts to Members of Congress,” said Eric Holder, U.S. Attorney General. “When car owners get behind the wheel, they have a right to expect that their vehicle is safe. If any part of the automobile turns out to have safety issues, the car company has a duty to be upfront about them, to fix them quickly, and to immediately tell the truth about the problem and its scope. Toyota violated that basic compact. Other car companies should not repeat Toyota’s mistake: a recall may damage a company’s reputation, but deceiving your customers makes that damage far more lasting.”

    Toyota is quickly becoming infamous for its numerous safety recalls. Just last year the company’s Sienna minivans were recalled over an issue that could cause the vehicles to shift out of park without the brake engaged. Most recently the company recalled nearly 1.9 million of its Prius hybrids due to a software glitch that could cause the vehicles to lose power during a drive.

    Image via Wikimedia Commons