Taiwan Company Pleads Guilty to Trade Secret Theft in Criminal Case Involving PRC State-Owned Company

The Department of Justice today announced that United Microelectronics Corporation, Inc. (UMC), a Taiwan semiconductor foundry, pleaded guilty to criminal trade secret theft and was sentenced to pay a $60 million fine, in exchange for its agreement to cooperate with the government in the investigation and prosecution of its co-defendant, a Chinese state-owned-enterprise.

A federal grand jury had indicted UMC in September 2018, along with Fujian Jinhua Integrated Circuit Co., Ltd. (Fujian Jinhua), a state-owned enterprise of the People’s Republic of China (PRC), and three individuals for conspiracy to steal, convey, and possess stolen trade secrets of an American semiconductor company (Micron Technology, Inc. (Micron)) for the benefit of a state-owned enterprise of the PRC (Fujian Jinhua).  As a result of today’s guilty plea, and in accordance with an accompanying plea agreement, UMC, whose American Depository Receipts are publicly traded on the New York Stock Exchange, will pay the fine—the second largest ever in a criminal trade secret prosecution, be subject to a three-year term of probation, and cooperate with the United States.

“UMC stole the trade secrets of an American leader in computer memory to enable China to achieve a strategic priority: self-sufficiency in computer memory production without spending its own time or money to earn it,” said Deputy Attorney General Jeffrey A. Rosen. “This prosecution is an example of the Department of Justice’s successful efforts to defend American companies from those who try to cheat and steal their technology.”

UMC pleaded guilty to a superseding information charging the company with one count of criminal trade secret theft in violation of 18 U.S.C. § 1832(a)(3). The other criminal charges and a parallel civil suit by the United States against UMC will be dismissed. The criminal prosecution of Fujian Jinhua and the three individual defendants will continue, as will a civil action seeking to enjoin Fujian Jinhua from the further transfer of stolen trade secrets and the export to the United States of products manufactured by Fujian Jinhua that were made using the stolen trade secrets.

“UMC’s guilty plea points this case towards trial against Fujian Jinhua in 2021,” said U.S. Attorney David L. Anderson.  “Criminal trade secrets cases protect freedom and innovation.  These cases have global significance when a foreign defendant is charged with stealing intellectual property protected by U.S. law.”

“Protecting American intellectual property and trade secrets is a top priority for the FBI.  This is especially true for the FBI’s San Francisco Division, with Silicon Valley in our area of responsibility, and we will continue to lead the fight in safeguarding U.S. innovation from foreign adversaries,” said FBI Special Agent in Charge Craig Fair.  “This case sends an important message to Bay Area companies: if you report suspicious activity to the FBI, we will follow all investigative leads to identify and prosecute those responsible.”

According to the facts admitted in connection with the guilty plea, UMC hired the three individual defendants—Chen Zhengkun, a.k.a. Stephen Chen; He Jianting, a.k.a. J.T. Ho; and Wang Yungming, a.k.a. Kenny Wang—from Micron’s Taiwan subsidiary. UMC made Chen a senior vice president and assigned him to lead negotiation of an agreement with Fujian Jinhua to develop Dynamic Random Access Memory (DRAM) technology for Fujian Jinhua. As a foundry company, UMC previously made logic chips designed by other companies but did not make DRAM memory chips. Chen hired Ho and Wang to join the DRAM development team, and Ho and Wang brought Micron’s confidential information to UMC from Micron’s Taiwan subsidiary. After UMC’s Information Technology Department found Micron’s intellectual property on Ho’s UMC computer, Chen approved the issuance of two “off network” laptop computers that allowed UMC employees to access Micron confidential information without further detection by UMC’s IT department. In particular, Wang used one file containing Micron’s trade secrets to adjust UMC’s design rules for the memory in question. Later, when Taiwan authorities searched UMC’s offices, Ho and Wang asked another UMC employee to hide papers, notes, USB drives, a personal phone, and a laptop computer while the Taiwan authorities executed their search warrants. Taiwan authorities recovered only one of the two off-network laptops. The hard drive of the other was reformatted and concealed from Taiwan authorities. Beginning in the month of the Taiwan raids, Chen became president of Fujian Jinhua and took charge of its memory production facility.

This prosecution is a result of an investigation by the FBI. Substantial assistance was provided by Taiwan’s Ministry of Justice, its Ministry of Justice Investigation’s Bureau (MJIB), and the Taichung District Prosecutor’s Office (TDPO).

Hits: 14

News Network

  • Elections in El Salvador
    In Crime Control and Security News
    Ned Price, Department [Read More…]
  • Tax Administration: Better Coordination Could Improve IRS’s Use of Third-Party Information Reporting to Help Reduce the Tax Gap
    In U.S GAO News
    Information returns are forms filed by third parties, such as employers and financial institutions that provide information about taxable transactions. These forms are submitted to the Internal Revenue Service (IRS), the Social Security Administration, and taxpayers. Fifty unique types of information returns provide information on individual taxpayers and have a variety of purposes, such as reporting on wages earned or amounts paid that qualify for a tax credit or deduction. IRS identifies mismatches between information returns and tax returns for potential additional review, including enforcement actions. According to IRS research, taxpayers are more likely to misreport income when little or no third-party information reporting exists than when substantial reporting exists. Overview of Internal Revenue Service's (IRS) Process for Matching Information Returns IRS's ability to process and use information returns is limited by its outdated legacy information technology (IT) systems. In 2017, IRS developed a plan to modernize its information return processing systems; however, IRS paused its efforts due to, according to IRS, resource constraints. IRS has an opportunity to capitalize on prior planning efforts by re-evaluating and updating these efforts and integrating them into its broader IT modernization efforts. IRS does not have a coordinated approach with cross-agency leadership that strategically considers how information reporting could be improved to promote compliance with the tax code. While information returns affect many groups across IRS and support multiple compliance programs, no one office has broad responsibility for coordinating these efforts. A formalized collaborative mechanism, such as a steering committee, could help provide leadership and ensure that IRS acts to address issues among the intake, processing, and compliance groups. For example, IRS has not undertaken a broad review of individual information returns to determine if thresholds, deadlines, or other characteristics of the returns continue to meet the needs of the agency. For tax year 2018, IRS received and processed more than 3.5 billion information returns that it used to facilitate compliance checks on more than 150 million individual income tax returns. By matching information reported by taxpayers against information reported by third parties, IRS identifies potential fraud and noncompliance. GAO was asked to review IRS's use of information returns. This report provides an overview of information returns and assesses the extent to which IRS has a coordinated approach to identifying and responding to risks related to the use of information returns in the tax system, among other objectives. GAO reviewed IRS documents and data on information returns filing, processing, and use, and interviewed cognizant officials. GAO compared IRS's efforts in this area to federal internal control standards, and IRS's strategic plan. GAO is making nine recommendations to IRS, including that IRS revise its modernization plans for its information returns processing systems and incorporate it into broader IT modernization efforts and develop a collaborative mechanism to improve coordination among IRS groups that use information returns. IRS neither agreed, nor disagreed with the recommendations; however, IRS outlined actions it plans to take to address the recommendations. Social Security Administration had no comments. For more information, contact James R. McTigue at (202) 512-9110 or McTigueJj@gao.gov.
    [Read More…]
  • How We Transformed Public Health Data for COVID-19 and the Futur
    In Human Health, Resources and Services
    Data is the lifeblood of [Read More…]
  • Indonesian Company Admits To Deceiving U.S. Banks In Order To Trade With North Korea, Agrees To Pay A Fine Of More Than $1.5 Million
    In Crime News
    A global supplier of cigarette paper products, PT Bukit Muria Jaya (“BMJ”), has agreed to pay a fine of $1,561,570 and enter into a deferred prosecution agreement with the Justice Department for conspiring to commit bank fraud in connection with the shipment of products to North Korean customers. BMJ, which is incorporated in Indonesia, has also entered into a settlement agreement with the Treasury Department’s Office of Foreign Assets Control (“OFAC”).
    [Read More…]
  • Disaster Resilience: FEMA Should Take Additional Steps to Streamline Hazard Mitigation Grants and Assess Program Effects
    In U.S GAO News
    From fiscal years 2010 through 2018, the Federal Emergency Management Agency (FEMA) obligated over $11 billion through four grant programs that fund state and local hazard mitigation efforts. FEMA awarded about 88 percent of this amount through the two grant programs that fund hazard mitigation post-disaster. State and local officials from selected jurisdictions reported challenges with FEMA's hazard mitigation grant programs. Specifically, officials GAO interviewed from 10 of the 12 jurisdictions said grant application processes were complex and lengthy. To address this, FEMA officials augmented guidance and began monitoring application review time frames for one program and said they intend to assess two other programs to identify opportunities to streamline. However, they did not have a documented plan for doing so. By developing and implementing a plan to identify ways to streamline applications and reviews for all four programs, FEMA could reduce barriers to investments in hazard mitigation. Officials from eight of the 12 jurisdictions also cited challenges with applicants' technical capacity to successfully apply for grants. To address this, FEMA developed training and guidance, but GAO found that these resources are listed on different parts of its website and can be difficult for state and local officials to locate. Creating a centralized inventory of resources could improve applicant capacity to successfully develop mitigation projects and apply for grants. Examples of Hazard Mitigation Projects FEMA has assessed some effects of grant-funded hazard mitigation projects, but could expand efforts and better share results. FEMA uses benefit-cost analysis, which estimates the benefits over the life of a project, and post-disaster loss avoidance studies, which estimate project benefits from actual hazard events, to assess project effects. However, the loss avoidance studies have been limited to hurricanes, floods, and tornados, and have not assessed wildfires, winter storms, or other disasters. FEMA officials stated that they would like to expand these studies but do not have specific plans to do so. In addition, FEMA requires some states to assess the effectiveness of their mitigation projects, but does not share these studies. Developing a plan to conduct loss avoidance studies for other hazards and sharing the state studies could help FEMA and stakeholders make better informed mitigation investment decisions. The rising number of natural disasters and increasing reliance on federal assistance are key sources of federal fiscal exposure. FEMA has four grant programs to increase disaster resilience through hazard mitigation projects. The Additional Supplemental Appropriations for Disaster Relief Act, 2019, included a provision for GAO to review the federal response to disasters in 2018. This report addresses 1) FEMA's use of grants to support hazard mitigation; 2) challenges reported by selected jurisdictions applying for grants; and 3) how FEMA has assessed the effects of its hazard mitigation projects and shared the results. GAO analyzed FEMA's grant data for fiscal years 2010 through 2018 to capture the most complete recent data, conducted nongeneralizable site visits with 12 state and local jurisdictions selected to capture a range of grant funding levels and hazards, reviewed FEMA grant documents, and interviewed FEMA mitigation officials. GAO is making six recommendations, including that FEMA develop a plan to assess and streamline its hazard mitigation grant programs, create a centralized inventory of related resources, develop a plan to conduct more loss avoidance studies, and share state studies on hazard mitigation effectiveness. The Department of Homeland Security concurred with our recommendations. For more information, contact Chris Currie at (404) 679-1875 or CurrieC@gao.gov.
    [Read More…]
  • Travel of Special Envoy for Sudan and South Sudan
    In Crime Control and Security News
    Office of the [Read More…]
  • Opening Remarks by Secretary of State Antony J. Blinken Before the Senate Committee on Appropriations
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Rebuilding and Enhancing U.S. Refugee Resettlement Programs
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Sam’s Test Record for Drupal Testing
    In U.S GAO News
    This is Sam's Test Record for Drupal Testing.
    [Read More…]
  • Attorney General Merrick B. Garland Delivers Remarks at Announcement of Pattern or Practice Investigation into the Minneapolis Police Department
    In Crime News
    Good morning.  Like so many of you, I have closely watched the events in Minnesota. Although the state’s prosecution was successful, I know that nothing can fill the void that the loved ones of George Floyd have felt since his death. My heart goes out to them and to all those who have experienced similar loss. 
    [Read More…]
  • Joint Press Statement by U.S. Attorney General Merrick Garland and European Commissioner for Justice Didier Reynders
    In Crime News
    More from: May 26, 2021 [Read More…]
  • Houston bounty hunter sentenced for running international sex trafficking conspiracy
    In Justice News
    A 30-year-old Houston [Read More…]
  • Judiciary Seeks 2022 Funding, Cites Caseload Resurgence and Security Needs
    In U.S Courts
    Federal Judiciary officials have asked Congress for $8.12 billion to fund judicial branch operations for fiscal year 2022. The request includes funding to keep pace with inflationary and other budget adjustments, and to pay for program increases, including projected workload changes, courthouse security, cybersecurity, and new magistrate judges.
    [Read More…]
  • The United States of America and The Republic of Korea on Working Together to Promote Cooperation between the Indo-Pacific Strategy and the New Southern Policy
    In Crime Control and Security News
    Office of the [Read More…]
  • Secretary Blinken’s Call with Guatemalan Foreign Minister Brolo
    In Crime Control and Security News
    Office of the [Read More…]
  • Department of Justice Launches Global Action Against NetWalker Ransomware
    In Crime News
    The Department of Justice today announced a coordinated international law enforcement action to disrupt a sophisticated form of ransomware known as NetWalker.
    [Read More…]
  • Secretary Pompeo’s Call with Singaporean Foreign Minister Balakrishnan
    In Crime Control and Security News
    Office of the [Read More…]
  • Internet of Things: Information on Use by Federal Agencies
    In U.S GAO News
    Many federal agencies (56 of 90) responding to GAO's survey reported using Internet of Things (IoT) technologies. Most often, agencies reported using IoT to: (1) control or monitor equipment or systems (42 of 56); (2) control access to devices or facilities (39 of 56); or (3) track physical assets (28 of 56) such as fleet vehicles or agency property. Agencies also reported using IoT devices to perform tasks such as monitoring water quality, watching the nation's borders, and controlling ships in waterway locks. Furthermore, IoT use by federal agencies may increase in the future, as many agencies reported planning to begin or expand the use of IoT. However, 13 agencies not using IoT technologies reported they did not plan to use the technologies for a range of reasons, including insufficient return on investment. Example of Government's Use of Internet of Things Technology: Environmental Protection Agency's (EPA) Water Monitoring Buoy Surveyed agencies most frequently reported increasing data collection (45 of 74), and increasing operational efficiency (43 of 74) as benefits of using IoT technologies. Increasing data collection can aid decision-making and support technology development; increased efficiencies may allow agencies to accomplish more with existing resources. According to EPA officials, sensors are able to transmit data eliminating the need for employees to visit sites to collect data. The Saint Lawrence Seaway Development Corporation reported that IoT technologies helped improve transit times through its locks. Agencies most frequently reported cybersecurity issues (43 of 74) and interoperability (30 of 74) as the most significant challenges to adopting IoT technologies. For example, the Transportation Security Administration's officials told us they could not ensure the security and privacy of passenger information and subsequently took its network-connected security equipment offline until they developed a solution. Most agencies' officials responding to GAO's survey (54 of 72), as well as officials interviewed as part of the case studies, reported using information technology (IT) policies developed by their agency, versus internal IoT-specific policies, to manage IoT technologies. Some agencies reported their IT policies were sufficient for the current challenges and risks associated with adopting IoT technologies, including cybersecurity. The Office of Management and Budget's officials stated they do not typically make policies for specific IT components but if needed would work with the National Institute of Standards and Technology and others to develop such policies. IoT generally refers to devices—from sensors in vehicles to building thermostats— that collect information, communicate it to a network, and may complete a task based on that information. Although IoT technologies may present an opportunity for the federal government to operate more efficiently and effectively, federal agencies may also face challenges in acquiring and using IoT. GAO was asked to review the federal government's experience with IoT. This report describes (1) IoT technologies selected federal agencies are using, (2) the benefits and challenges of using IoT technologies, and (3) policies and guidance selected agencies follow in using and acquiring IoT technologies. GAO surveyed 115 Chief Information Officers (CIO) and senior IT officials at federal agencies and subcomponents based on, in part, agency membership in the federal CIO Council; 90 responded. However, not all agencies replied to each question. GAO also selected the Department of Commerce, the Department of Homeland Security, EPA, and the National Aeronautics and Space Administration as case studies. GAO selected these agencies based on, among other things, their fiscal year 2020 IT budgets and examples of IoT use from literature. For each case study, GAO reviewed documents and interviewed officials from the Office of the CIO from the agency and officials from selected sub-components that use the IoT technologies. For more information, contact Andrew Von Ah at (202) 512-2834 or vonaha@gao.gov.
    [Read More…]
  • Deputy U.S. Marshal Charged with Cyberstalking and Perjury
    In Crime News
    A federal grand jury in the Central District of California returned an indictment Wednesday charging a Deputy U.S. Marshal with conspiracy to commit cyberstalking, cyberstalking, and perjury.
    [Read More…]
  • Couple Who Falsely Claimed to be Farmers Sentenced in $1.1 Million COVID-Relief Fraud
    In Crime News
    More from: June 2, 2021 [Read More…]
  • Secretary Michael R. Pompeo With Larry O’Connor of the Larry O’Connor Show/WMAL
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Lakeway Regional Medical Center LLC And Co-Defendants Agree To Pay Over $15.3 Million To Resolve Allegations They Fraudulently Obtained Government-Insured Loan And Misused Loan Funds
    In Crime News
    The Department of Justice announced today that Lakeway Regional Medical Center LLC (LRMC) agreed to pay $13,580,822.79, and Surgical Development Partners LLC, Surgical Development Partners of Austin Enterprises LLC, G. Edward Alexander, Frank Sossi, and John Prater collectively agreed to pay $1.8 million, to resolve allegations they violated the False Claims Act and other statutes in connection with the development of Lakeway Regional Medical Center, a hospital in Lakeway, Texas.  LRMC was formed to develop and operate the hospital.  The other settling parties assisted in the development of the hospital and the management and operations of LRMC. 
    [Read More…]
  • Justice Department Sues Town of Wolcott, Connecticut, for Discrimination Against Persons with Disabilities
    In Crime News
    The Justice Department today filed a lawsuit alleging that the Town of Wolcott, Connecticut, has discriminated against persons with disabilities in violation of the Fair Housing Act.
    [Read More…]
  • Chinese Businessman Charged With Conspiring To Steal Trade Secrets
    In Crime News
    Chi Lung Winsman Ng, aka Winsman Ng, 64, a Chinese businessman residing in Hong Kong, was indicted yesterday for conspiring to steal General Electric’s (GE) trade secrets involving the company’s silicon carbide MOSFET technology and worth millions of dollars.
    [Read More…]
  • Uranium Management: Actions to Mitigate Risks to Domestic Supply Chain Could Be Better Planned and Coordinated
    In U.S GAO News
    Federal agencies, including the Department of Energy (DOE) and the separately organized National Nuclear Security Administration (NNSA) within DOE, and uranium industry representatives have identified risks to the commercial supply chain for uranium needed for defense purposes. Such uranium may need to be mined domestically and enriched using U.S. technology to be free of obligations for the peaceful use of uranium and certain technology imported under international agreements. Identified risks to the unobligated uranium supply chain include (1) possible loss of domestic uranium mining capabilities and (2) possible challenges in re-starting the only facility in the United States for converting natural uranium into a form suitable for use in enrichment operations. Further, the U.S. has not had an operating enrichment capability that uses U.S. technology since 2013. Idle Domestic Plant for Converting Uranium to a Form Suitable for Enrichment DOE and NNSA have initiated actions officials believe will mitigate such risks to the unobligated uranium supply chain. For example, DOE and NNSA have both taken steps to reestablish a domestic enrichment capability with U.S. technology. In addition, DOE has proposed creation of a domestic uranium reserve to help support the domestic uranium mining and conversion industries until market conditions improve. DOE's fiscal year 2021 budget request includes $150 million for the reserve. However, we cannot conclude that the estimate is reasonable because it is unclear how the funding needs for the reserve were determined. By providing a more complete analysis to support future funding requests for the reserve, DOE could better provide assurance that such requests would achieve objectives. The Nuclear Fuel Working Group's strategy to mitigate risks to the domestic uranium industry does not fully incorporate all desirable characteristics GAO has identified for a national strategy. For example, it does not identify (1) the level of resources needed to support proposed actions or (2) an interagency coordinating mechanism. DOE is developing an implementation plan for the strategy, but DOE officials provided conflicting statements about the extent to which the agency will coordinate interagency implementation. NNSA has several defense needs for enriched uranium, including low-enriched uranium to produce tritium for nuclear weapons. To meet these needs, NNSA relies on commercial sectors of the domestic uranium industry, such as uranium mining or enrichment, which make up a supply chain for unobligated uranium. However, this industry faces commercial viability risks. In April 2020, the President's Nuclear Fuel Working Group released a strategy to mitigate risks to the domestic uranium industry. This working group includes DOE, the Department of Defense, and other agencies. Senate Report 115-262 included a provision that GAO review NNSA's planning for the future supply of unobligated enriched uranium. This report examines (1) risks agencies and others have identified to the unobligated uranium supply chain and agency actions to mitigate those risks, and (2) the extent to which the Nuclear Fuel Working Group's risk mitigation strategy incorporates desirable characteristics of a national strategy. GAO analyzed key NNSA and DOE planning documents and interviewed NNSA and other agency officials and industry representatives. GAO is making three recommendations, including that DOE improve its cost estimate to support future funding requests for the proposed uranium reserve and ensure its implementation plan for the strategy addresses each of the desirable characteristics of a national strategy. DOE concurred with GAO's recommendations. For more information, contact at (202) 512-3821 or bawdena@gao.gov.
    [Read More…]
  • Virginia Attorneys Sentenced for Attempting to Extort a Multinational Chemicals Company
    In Crime News
    Two Virginia attorneys were sentenced today on federal extortion charges for their roles in a scheme to extort a multinational chemicals company by threatening to inflict substantial financial and reputational harm on the company if their demands for a $200 million payment disguised as a purported “consulting agreement” were not met.
    [Read More…]
  • CEO of Medical Device Company Charged in COVID-19 Related Securities Fraud Scheme
    In Crime News
    The chief executive officer (CEO) of a California-based medical device company was indicted by a federal grand jury in connection with an alleged scheme to defraud investors by making false and misleading statements about the purported development of a new COVID-19 test, leading to millions of dollars in investor losses.
    [Read More…]
  • Department of Justice Issues Statement Regarding Federal Civil Rights Review Into March 2020 Police Encounter with Daniel Prude
    In Crime News
    Pamela Karlan, Principal Deputy Assistant Attorney General for the Civil Rights Division of the Department of Justice, James P. Kennedy Jr., U.S. Attorney for the Western District of New York, and Stephen A. Belongia, Special Agent in Charge of the FBI Buffalo Field Office, released the following statement:
    [Read More…]
  • Statement from Acting Solicitor General Jeffrey B. Wall on the Passing of Former Solicitor General Drew S. Days III
    In Crime News
    Today, Acting Solicitor General Jeffrey B. Wall issued the following statement on the passing of former Solicitor General Drew S. Days III:
    [Read More…]
  • Justice Department Applauds Passage of the Criminal Antitrust Anti-Retaliation Act
    In Crime News
    On Dec. 23, 2020, President Donald J. Trump signed into law the Criminal Antitrust Anti-Retaliation Act (the “Act”), which prohibits employers from retaliating against certain individuals who report criminal antitrust violations. The Act was sponsored by Senator Chuck Grassley, passed the Senate on Oct. 17, 2019, and passed the House of Representatives on Dec. 8, 2020.
    [Read More…]
  • Secretary Blinken’s Call with Indonesian Foreign Minister Marsudi
    In Crime Control and Security News
    Office of the [Read More…]
  • Cybersecurity: Clarity of Leadership Urgently Needed to Fully Implement the National Strategy
    In U.S GAO News
    Federal entities have a variety of roles and responsibilities for supporting efforts to enhance the cybersecurity of the nation. Among other things, 23 federal entities have roles and responsibilities for developing policies, monitoring critical infrastructure protection efforts, sharing information to enhance cybersecurity across the nation, responding to cyber incidents, investigating cyberattacks, and conducting cybersecurity-related research. To fulfill their roles and responsibilities, federal entities identified activities undertaken in support of the nation's cybersecurity. For example, National Security Council (NSC) staff, on behalf of the President, and the National Institute of Standards and Technology, have developed policies, strategies, standards, and plans to guide cybersecurity efforts. The Department of Homeland Security has helped secure the nation's critical infrastructure through developing security policy and coordinating security initiatives, among other efforts. Other agencies have established initiatives to gather intelligence and share actual or possible cyberattack information. Multiple agencies have mechanisms in place to assist in responding to cyberattacks, and law enforcement components, including the Federal Bureau of Investigation, are responsible for investigating them. The White House's September 2018 National Cyber Strategy and the NSC's accompanying June 2019 Implementation Plan detail the executive branch's approach to managing the nation's cybersecurity. When evaluated together, these documents addressed several of the desirable characteristics of national strategies, but lacked certain key elements for addressing others. National Cyber Strategy and Implementation Plan are Missing Desirable Characteristics of a National Strategy Characteristic Cyber Strategy and Plan Coverage of Issue Purpose, scope, and methodology Addressed Organizational roles, responsibilities, and coordination Addressed Integration and implementation Addressed Problem definition and risk assessment Did not fully address Goals, subordinate objectives, activities, and performance measures Did not fully address Resources, investments, and risk management Did not fully address Source: GAO analysis of 2018 National Cyber Strategy and 2019 Implementation Plan . | GAO-20-629 For example, the Implementation Plan details 191 activities that federal entities are to undertake to execute the priority actions outlined in the National Cyber Strategy. These activities are assigned a level, or tier, based on the coordination efforts required to execute the activity and the extent to which NSC staff is expected to be involved. Thirty-five of these activities are designated as the highest level (tier 1), and are coordinated by a functional entity within the NSC . Ten entities are assigned to lead or co-lead these critical activities while also tasked to lead or co-lead lower tier activities. Leadership Roles for Federal Entities Assigned as Leads or Co-Leads for National Cyber Strategy Implementation Plan Activities Entity Tier 1 Activities Tier 2 Activities Tier 3 Activities National Security Council 15 7 3 Department of Homeland Security 14 19 15 Office of Management and Budget 7 6 5 Department of Commerce 5 9 35 Department of State 2 5 11 Department of Defense 1 6 17 Department of Justice 1 10 5 Department of Transportation 1 0 5 Executive Office of the President 1 0 0 General Services Administration 1 2 1 Source: GAO analysis of 2018 National Cyber Strategy and 2019 Implementation Plan . | GAO-20-629 Although the Implementation Plan defined the entities responsible for leading each of the activities; it did not include goals and timelines for 46 of the activities or identify the resources needed to execute 160 activities. Additionally, discussion of risk in the National Cyber Strategy and Implementation Plan was not based on an analysis of threats and vulnerabilities. Further, the documents did not specify a process for monitoring agency progress in executing Implementation Plan activities. Instead, NSC staff stated that they performed periodic check-ins with responsible entities, but did not provide an explanation or definition of specific level of NSC staff involvement for each of the three tier designations. Without a consistent approach to engaging with responsible entities and a comprehensive understanding of what is needed to implement all 191 activities, the NSC will face challenges in ensuring that the National Cyber Strategy is efficiently executed. GAO and others have reported on the urgency and necessity of clearly defining a central leadership role in order to coordinate the government's efforts to overcome the nation's cyber-related threats and challenges. The White House identified the NSC staff as responsible for coordinating the implementation of the National Cyber Strategy . However, in light of the elimination of the White House Cybersecurity Coordinator position in May 2018, it remains unclear which official ultimately maintains responsibility for not only coordinating execution of the Implementation Plan , but also holding federal agencies accountable once activities are implemented. NSC staff stated responsibility for duties previously attributed to the White House Cyber Coordinator were passed to the senior director of NSC's Cyber directorate; however, the staff did not provide a description of what those responsibilities include. NSC staff also stated that federal entities are ultimately responsible for determining the status of the activities that they lead or support and for communicating implementation status to relevant NSC staff. However, without a clear central leader to coordinate activities, as well as a process for monitoring performance of the Implementation Plan activities, the White House cannot ensure that entities are effectively executing their assigned activities intended to support the nation's cybersecurity strategy and ultimately overcome this urgent challenge. Increasingly sophisticated cyber threats have underscored the need to manage and bolster the cybersecurity of key government systems and the nation's cybersecurity. The risks to these systems are increasing as security threats evolve and become more sophisticated. GAO first designated information security as a government-wide high-risk area in 1997. This was expanded to include protecting cyber critical infrastructure in 2003 and protecting the privacy of personally identifiable information in 2015. In 2018, GAO noted that the need to establish a national cybersecurity strategy with effective oversight was a major challenge facing the federal government. GAO was requested to review efforts to protect the nation's cyber critical infrastructure. The objectives of this report were to (1) describe roles and responsibilities of federal entities tasked with supporting national cybersecurity, and (2) determine the extent to which the executive branch has developed a national strategy and a plan to manage its implementation. To do so, GAO identified 23 federal entities responsible for enhancing the nation's cybersecurity. Specifically, GAO selected 13 federal agencies based on their specialized or support functions regarding critical infrastructure security and resilience, and 10 additional entities based on analysis of its prior reviews of national cybersecurity, relevant executive policy, and national strategy documents. GAO also analyzed the National Cyber Strategy and Implementation Plan to determine if they aligned with the desirable characteristics of a national strategy. GAO is making one matter for congressional consideration, that Congress should consider legislation to designate a leadership position in the White House with the commensurate authority to implement and encourage action in support of the nation's cybersecurity. GAO is also making one recommendation to the National Security Council to work with relevant federal entities to update cybersecurity strategy documents to include goals, performance measures, and resource information, among other things. The National Security Council neither agreed nor disagreed with GAO's recommendation. For more information, contact Nick Marinos at (202) 512-9342 or marinosn@gao.gov.
    [Read More…]
  • Statement from Attorney General William P. Barr on the Resignation of Seattle Police Chief Carmen Best
    In Crime News
    Attorney General William P. Barr issued the following statement in response to the resignation of Seattle Police Chief Carmen Best:
    [Read More…]
  • French Guiana Travel Advisory
    In Travel
    Do not travel to French [Read More…]
  • Justice Department Reaches Settlement with Old Dominion University to Resolve Disability Discrimination Complaint
    In Crime News
    Today the Justice Department announced a settlement agreement with Old Dominion University (ODU) in Norfolk, Virginia, to resolve its investigation into a complaint that ODU discriminated and retaliated against a graduate student based on disability and her related request for reasonable modifications of policy. The Civil Rights Division conducted the investigation under Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973.
    [Read More…]
  • Telecommunications: FCC Should Enhance Performance Goals and Measures for Its Program to Support Broadband Service in High-Cost Areas
    In U.S GAO News
    The Federal Communications Commission (FCC) has a program, known as the high-cost program, to promote broadband deployment in unserved areas. Although the performance goals for the high-cost program reflect principles in the Telecommunications Act of 1996, not all of the goals are expressed in a measurable or quantifiable manner and therefore do not align with leading practices. Furthermore, FCC's measures for its performance goals do not always align with leading practices, which call for measures to have linkage with the goal they measure and clarity, objectivity, and measurable targets, among other key attributes. For example, as shown below for two of FCC's five goals, GAO found that FCC's measures met most, but not all, of the key attributes. By establishing goals and measures that align with leading practices, FCC can improve the performance information it uses in its decision-making processes about how to allocate the program's finite resources. Leading practices also suggest that agencies publicly report on progress made toward performance goals. FCC does so, however, only in a limited fashion which may lead to stakeholder uncertainty about the program's effectiveness. Examples of FCC’s Performance Measures Compared with a Selection of Key Attributes of Successful Performance Measures According to stakeholders GAO interviewed, FCC faces three key challenges to accomplish its high-cost program performance goals: (1) accuracy of FCC's broadband deployment data, (2) broadband availability on tribal lands, and (3) maintaining existing fixed-voice infrastructure and attaining universal mobile service. For example, although FCC adopted a more precise method of collecting and verifying broadband availability data, stakeholders expressed concern the revised data would remain inaccurate if carriers continue to overstate broadband coverage for marketing and competitive reasons. Overstating coverage impairs FCC's efforts to promote universal voice and broadband since an area can become ineligible for high-cost support if a carrier reports that service already exists in that area. FCC has also taken actions to address the lack of broadband availability on tribal lands, such as making some spectrum available to tribes for wireless broadband in rural areas. However, tribal stakeholders told GAO that some tribes are unable to secure funding to deploy the infrastructure necessary to make use of spectrum for wireless broadband purposes. Millions of Americans do not have access to broadband. Within the Universal Service Fund, FCC's high-cost program provided about $5 billion in 2019 to telecommunications carriers to support broadband deployment in unserved areas where the cost to provide broadband service is high. In 2011, FCC established five performance goals and related measures for the high-cost program. GAO was asked to review the high-cost program's performance goals and measures. This report examines: (1) the extent to which the program's performance goals and measures align with leading practices to enable the effective use of performance information and (2) the key challenges selected stakeholders believe FCC faces in meeting the program's goals. GAO reviewed FCC's program goals and measures and assessed them against applicable criteria, including GAO's leading practices for successful performance measures. GAO interviewed FCC officials and representatives from industry, tribal carriers, consumer advocates, and other stakeholders, to obtain a variety of non-generalizable viewpoints. GAO is making four recommendations, including that FCC should ensure its high-cost program's performance goals and measures align with leading practices and publicly report on progress measured toward the goals. FCC concurred with all four recommendations. For more information, contact Andrew Von Ah at (202) 512-2834 or vonaha@gao.gov.
    [Read More…]
  • Littoral Combat Ship: Unplanned Work on Maintenance Contracts Creates Schedule Risk as Ships Begin Operations
    In U.S GAO News
    What GAO Found The Littoral Combat Ship (LCS) is a class of small surface ships with two unique design variants. Both LCS variants carry smaller crews and rely more on contractors for maintenance than any other Navy ship. While this strategy was intended to reduce operating costs, it contributes to challenges in the Navy's strategy for contracted maintenance. Specifically: Contractor travel. U.S. law states that foreign contractors generally cannot conduct certain types of LCS maintenance. This results in the Navy paying for contractors to regularly travel overseas to perform routine maintenance. GAO's sample of 18 delivery orders showed estimated travel costs for the orders reviewed ranged from a few thousand dollars to over $1 million. Heavy reliance on original equipment manufacturers. LCS includes numerous commercial-based systems that are not used on other Navy ships. However, the Navy lacks sufficient manufacturer technical data to maintain many of these systems. This can lead to longer maintenance periods due to extra coordination needed for the manufacturers to assist with or complete the work. Although the Navy is establishing teams of its personnel to take on routine maintenance, contractors will continue performing some of this work. Littoral Combat Ship Variants under Maintenance The Navy is beginning to implement contracting approaches for LCS maintenance in order to help mitigate schedule risk, while taking steps to avoid it in the future. GAO found in the 18 LCS maintenance delivery orders it reviewed that the Navy had to contract for more repair work than originally planned, increasing the risk to completing LCS maintenance on schedule. A majority of this unplanned work occurred because the Navy did not fully understand the ship's condition before starting maintenance. The Navy has begun taking steps to systematically collect and analyze maintenance data to determine the causes of unplanned work, which could help it more accurately plan for maintenance. The Navy has also recently begun applying some contracting approaches to more quickly incorporate unplanned work and mitigate the schedule risk, such as (1) setting a price for low-dollar value unplanned work to save negotiation time and (2) procuring some materials directly instead of waiting for contractors to do so. Such measures will be important to control cost and schedule risks as additional LCS enter the fleet in the coming years. Why GAO Did This Study The Navy plans to spend approximately $61 billion to operate and maintain LCS, a class of small surface ships equipped with interchangeable sensors and weapons. With limited operations to date, these ships have entered the Navy's maintenance cycle. Since 2005, GAO has reported extensively on LCS issues, including ships delivered late and with increased costs and less capability than planned. The Navy also encountered problems as LCS entered the fleet, including higher than expected costs for contractor maintenance and numerous mechanical failures. In 2020, GAO reported that major maintenance on other surface ships using the same contracting approach as LCS was 64 days late, on average. The Navy acknowledges the importance of reducing maintenance delays in order to improve the readiness of its surface fleet. A House Report included a provision for GAO to review long-term contracting strategies and challenges for LCS repair and maintenance. This report (1) describes the effect of the LCS program's acquisition and sustainment strategies on its contracted maintenance and (2) assesses the extent to which the Navy is using contracting approaches to address any cost and schedule risks in maintaining LCS. To conduct this assessment, GAO reviewed relevant Navy documentation, including a sample of 18 delivery orders for LCS maintenance from fiscal year 2018 through April 2020 selected to cover each availability type and each LCS variant. GAO also interviewed Navy officials and contractor representatives. For more information, contact Shelby S. Oakley at (202) 512-4841 or OakleyS@gao.gov.
    [Read More…]
  • Tax Preparer Pleads Guilty to Conspiring to Defraud the IRS
    In Crime News
    A Maryland tax return preparer pleaded guilty today to conspiracy to defraud the United States and aiding in the preparation of a false tax return. According to court documents and statements made in court, Anita Fortune, 56, of Upper Marlboro, provided return preparation services under multiple business names, including Tax Terminatorz Inc. Fortune prepared and filed returns using co-conspirators’ electronic filing identification numbers and identifiers, which they provided in exchange for fees and office space. For the tax years 2011 to 2018, Fortune and her associates fraudulently reduced their clients’ tax liabilities and increased their refunds by adding fictitious or inflated itemized deductions and business losses to the clients’ returns. In total, Fortune caused a tax loss to the IRS of $189,748.
    [Read More…]
  • Iranian National and U.A.E. Business Organization Charged with Criminal Conspiracy to Violate Iranian Sanctions
    In Crime News
    Amin Mahdavi, 53, an Iranian national living in the United Arab Emirates (UAE), and Parthia Cargo LLC, a freight forwarding company located in the UAE, were charged in the U.S. District Court for the District of Columbia with participating in a criminal conspiracy to violate U.S. export laws and sanctions against Iran.
    [Read More…]
  • Finland Travel Advisory
    In Travel
    Reconsider travel to [Read More…]
  • Former Commander of Naval Station Guantanamo Bay Sentenced to Prison
    In Crime News
    A former Commander of Naval Station Guantanamo Bay (GTMO) was sentenced to 24 months in federal prison following his multiple convictions of obstructing justice and making false statements, in connection with the death of a civilian at the naval base.
    [Read More…]
  • Study: 2019 Sees Record Loss of Greenland Ice
    In Space
    After a brief period of [Read More…]
  • Man Convicted of Receiving, Soliciting, and Promoting Child Pornography
    In Crime News
    A federal jury convicted a Virginia man today for downloading images and videos depicting children as young as four years old being sexually abused and for utilizing the Darknet to solicit and promote child pornography.
    [Read More…]
  • Fake Title – Maintenance (4/18)
    In U.S GAO News
    GAO Email Notification Test We are testing our notification distribution process for GAO reports. If you are able to read this information the link contained in the email notification link worked. Please confirm that you received the email notification from GAOReports@gao.gov and used the link to access the prepublication site by contacting Andrea Thomas at thomasa@gao.gov (202) 512-3147 John Miller at millerj@gao.gov (202) 512-3672 Thank you
    [Read More…]
  • Republic of the Congo Travel Advisory
    In Travel
    Reconsider travel to the [Read More…]
  • Former Raytheon Engineer Sentenced for Exporting Sensitive Military Related Technology to China
    In Crime News
    Today, Wei Sun, 49, a Chinese national and naturalized citizen of the United States, was sentenced to 38 months in prison by District Court Judge Rosemary Marquez. Sun previously pleaded guilty to one felony count of violating the Arms Export Control Act (AECA).
    [Read More…]
  • On the Occasion of the Official Birthday of Her Majesty Queen Elizabeth II
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Texas Heart Hospital and Wholly-Owned Subsidiary THHBP Management Company LLC to Pay $48 Million to Settle False Claims Act Allegations Related to Alleged Kickbacks
    In Crime News
    Texas Heart Hospital of the Southwest LLP, a partially physician-owned hospital in Plano, Texas, and its wholly owned subsidiary, THHBP Management Company, LLC (collectively, the “Heart Hospital”) have agreed to pay the United States $48 million to resolve claims that the Heart Hospital violated the False Claims Act by knowingly submitting claims to the Medicare program that resulted from violations of the Physician Self-Referral Law and the Anti Kickback Statute, the Justice Department announced today.
    [Read More…]
  • On the 41st Anniversary of the U.S. Embassy Takeover in Tehran
    In Crime Control and Security News
    Michael R. Pompeo, [Read More…]
  • Secretary Blinken’s Meeting with Jordanian King Abdullah II
    In Crime Control and Security News
    Office of the [Read More…]
  • Restoring Taiwan’s Appropriate Place at the World Health Assembly
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Fugitive narcotics trafficker apprehended
    In Justice News
    A 33-year-old [Read More…]
  • Assistant Attorney General Makan Delrahim Delivers Opening Remarks at the 2020 Life Sciences Workshop
    In Crime News
    “Light My Fire”: [Read More…]
  • Readout of Attorney General Merrick B. Garland’s Call with Bill Blair, Minister of Public Safety and Emergency Preparedness of Canada
    In Crime News
    Attorney General Merrick B. Garland spoke yesterday with Bill Blair, the Minister of Public Safety and Emergency Preparedness of Canada. In their inaugural bilateral conversation, the leaders discussed their shared commitment to cooperating at the strategic level on a wide range of shared challenges and opportunities – from advancing policing and justice reform to countering the threats posed by domestic violent extremism.
    [Read More…]
  • The United States Designates Houthi Militants
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Launching Agriculture Innovation Mission for Climate
    In Crime Control and Security News
    Office of the [Read More…]
  • Croatia Statehood Day
    In Crime Control and Security News
    Antony J. Blinken, [Read More…]
  • Neurosurgeon and Two Affiliated Companies Agree to Pay $4.4 Million to Settle Healthcare Fraud Allegations
    In Crime News
    Neurosurgeon Wilson Asfora, M.D. of Sioux Falls, South Dakota, and two medical device distributorships that he owns, Medical Designs LLC and Sicage LLC, have agreed to pay $4.4 million to resolve False Claims Act allegations relating to illegal payments to Asfora to induce the use of certain medical devices, in violation of the Anti-Kickback Statute, as well as claims for medically unnecessary surgeries.
    [Read More…]
  • Counselor Brechbuhl’s Travel to Mexico, Panama, and Uruguay
    In Crime Control and Security News
    Office of the [Read More…]
  • JPL Mission Breaks Record for Smallest Satellite to Detect an Exoplanet
    In Space
    About the size of a [Read More…]