Michael R. Pompeo, Secretary of State
Today, the United States is imposing sanctions on two organizations controlled by the Supreme Leader of Iran, the Execution of Imam Khomeini’s Order (EIKO) and Astan Quds Razavi (AQR). While masquerading as charitable organizations, EIKO and AQR control large portions of the Iranian economy, including assets seized from political dissidents and religious minorities, for the benefit of Supreme Leader Ali Khamenei, his office, and senior Iranian government officials.
These entities are being designated pursuant to Executive Order 13876, which targets the Supreme Leader of the Islamic Republic of Iran, the Iranian Supreme Leader’s Office (SLO), and their affiliates. This action follows the Department of the Treasury’s November 2020 designation of the Bonyad Mostazafan, an immense conglomerate controlled by Khamenei with holdings in key sectors of Iran’s economy. Alongside Bonyad Mostazafan and the previously designated IRGC-owned entity, Khatam al-Anbiya, AQR, and EIKO are estimated to control more than half of the Iranian economy.
These institutions enable Iran’s corrupt leaders to exploit a system of ownership over a wide range of sectors of Iran’s economy. The United States will continue to target entities and individuals that enrich themselves while claiming to help the Iranian people.
- Aviation Safety: Actions Needed to Evaluate Changes to FAA’s Enforcement Policy on Safety StandardsBy Sam NewsAugust 18, 2020The Federal Aviation Administration (FAA) directed individual offices to implement the Compliance Program, and FAA has increasingly used compliance actions rather than enforcement actions to address violations of safety standards since starting the Compliance Program. FAA revised agency-wide guidance in September 2015 to emphasize using compliance actions, such as counseling or changes to policies. Compliance actions are to be used when a regulated entity is willing and able to comply and enforcement action is not required or warranted, e.g., for repeated violations, according to FAA guidance. FAA then directed its offices—for example, Flight Standards Service and Drug Abatement Division—to implement the Compliance Program as appropriate, given their different responsibilities and existing processes. Under the Compliance Program, data show that selected FAA offices have made increasing use of compliance actions. Total Number of Federal Aviation Administration Enforcement Actions and Number of Compliance Actions Closed for Selected Program Offices, Fiscal Years 2012-2019 No specific FAA office or entity oversees the Compliance Program. FAA tasked a working group to lead some initial implementation efforts. However, the group no longer regularly discusses the Compliance Program, and no office or entity was then assigned oversight authority. As a result, FAA is not positioned to identify and share best practices or other valuable information across offices. FAA established goals for the Compliance Program—to promote the highest level of safety and compliance with standards and to foster an open, transparent exchange of data. FAA, however, has not taken steps to evaluate if or determine how the program accomplishes these goals. Key considerations for agency enforcement decisions state that an agency should establish an evaluation plan to determine if its enforcement policy achieves desired goals. Three of eight FAA offices have started to evaluate the effects of the Compliance Program, but two offices have not yet started. Three other offices do not plan to do so—in one case, because FAA has not told the office to. FAA officials generally believe the Compliance Program is achieving its safety goals based on examples of its use. However, without an evaluation, FAA will not know if the Compliance Program is improving safety or having other effects—intended or unintended. FAA supports the safety of the U.S. aviation system by ensuring air carriers, pilots, and other regulated entities comply with safety standards. In 2015, FAA announced a new enforcement policy with a more collaborative and problem-solving approach called the Compliance Program. Under the program, FAA emphasizes using compliance actions, for example, counseling or training, to address many violations more efficiently, according to FAA. Enforcement actions such as civil penalties are reserved for more serious violations, such as when a violation is reckless or intentional. The FAA Reauthorization Act of 2018 included a provision that GAO review FAA's Compliance Program. This report examines (1) how FAA implemented and used the Compliance Program and (2) how FAA evaluates the effectiveness of the program. GAO analyzed FAA data on enforcement actions agency-wide and on compliance actions for three selected offices for fiscal years 2012 to 2019 (4 years before and after program start).GAO also reviewed FAA guidance and interviewed FAA officials, including those from the eight offices that oversee compliance with safety standards. GAO is making three recommendations including that FAA assign authority to oversee the Compliance Program and evaluate the effectiveness of the program in meeting goals. FAA concurred with the recommendations. For more information, contact Heather Krause at (202) 512-2834 or firstname.lastname@example.org.[Read More…]
- Alabama Tax Preparer Pleads Guilty to Filing False Tax ReturnsBy Sam NewsOctober 15, 2020A Birmingham, Alabama, tax return preparer pleaded guilty to aiding and assisting in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney for the Northern District of Alabama Prim F. Escalona.[Read More…]
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- Two Kentucky Real Estate Professionals Indicted for Rigging Farmland AuctionBy Sam NewsMay 21, 2021A federal grand jury in the Western District of Kentucky returned an indictment charging two Kentucky real estate professionals with conspiring to rig bids at an estate auction for farmland and timber rights.[Read More…]
- Justice Department Announces the Opening of Nominations for the Fifth Annual Attorney General’s Award for Distinguished Service in Community PolicingBy Sam NewsApril 30, 2021U.S. Attorney General Merrick B. Garland today announced the Department of Justice is now accepting nominations for the Fifth Annual Attorney General’s Award for Distinguished Service in Community Policing. These awards represent part of the Department of Justice’s on-going commitment to support the nation’s law enforcement officers who put their lives on the line every day to keep our communities safe.[Read More…]
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- Former State Department Employee Sentenced to Prison for Trafficking in Counterfeit Goods from U.S. EmbassyBy Sam NewsMarch 18, 2021A former U.S. Department of State employee and his spouse were sentenced today for their roles in a conspiracy to traffic hundreds of thousands of dollars in counterfeit goods through e-commerce accounts operated from State Department computers at the U.S. Embassy in Seoul, Republic of Korea.[Read More…]
- Military Operations: DOD Needs to Address Contract Oversight and Quality Assurance Issues for Contracts Used to Support Contingency OperationsBy Sam NewsAugust 25, 2021The Department of Defense (DOD) uses contractors to meet many of its logistical and operational support needs. With the global war on terrorism, there has been a significant increase in deployment of contractor personnel to areas such as Iraq and Afghanistan. In its fiscal year 2007 report, the House Appropriations Committee directed GAO to examine the link between the growth in DOD's operation and maintenance costs and DOD's increased reliance on service contracts. GAO determined (1) the extent to which costs for selected contracts increased and the factors causing the increases, (2) the extent to which DOD provided oversight for selected contracts, and (3) the reasons for DOD's use of contractors to support contingency operations. To address these objectives, GAO reviewed a nonprobability sample of seven DOD contracts for services that provide vital support to contingency operations in Iraq and Afghanistan. GAO reviewed contract requirements, funding documents and DOD guidance for these contracts and interviewed DOD and contractor personnel.Costs for six of the seven contracts GAO reviewed increased from an initial estimate of $783 million to about $3.8 billion, and one consistent and primary factor driving the growth was increased requirements associated with continued military operations in Iraq and Afghanistan. For example, the Army awarded a $218.2 million task order for equipment maintenance and supply services in Kuwait in October 2004. Since then, approximately $154 million of additional work was added to this task order for vehicle refurbishment, tire assembly and repair, and resetting of prepositioned equipment. Other factors that increased individual contract costs include the use of short-term contract extensions and the government's inability to provide contractually required equipment and services. For example, in three of the contracts GAO reviewed, short-term contract extensions (3 to 6 months) increased costs because the contractor felt it was too risky to obtain long-term leases for vehicles and housing. The actual cost of one contract we reviewed did not exceed the estimated cost for reasons such as lower than projected labor rates. GAO has frequently reported that inadequate staffing contributed to contract management challenges. For some contracts GAO reviewed, DOD's oversight was inadequate because it had a shortage of qualified personnel and it did not maintain some contract files in accordance with applicable guidance. For five contracts, DOD had inadequate management and oversight personnel. In one case, the office responsible for overseeing two contracts was short 6 of 18 key positions, all of which needed specialized training and certifications. In addition, for two other contracts, proper accounting of government owned equipment was not performed because the property administrator position was vacant. Second, DOD did not always follow guidance for maintaining contract files or its quality assurance principles. For four contracts, complete contract files documenting administration and oversight actions taken were not kept and incoming personnel were unable to determine how contract management and oversight had been performed and if the contractor had performed satisfactorily prior to their arrival. In addition, oversight was not always performed by qualified personnel. For example, quality assurance officials for the linguist contract were unable to speak the language so they could not judge the quality of the contractor's work. Without adequate levels of qualified oversight personnel, proper maintenance of contract files, and consistent implementation of quality assurance principles, DOD may not be able to determine whether contractors are meeting their contract requirements, which raises the potential for waste. DOD used contractors to support contingency operations for several reasons, including the need to compensate for a decrease in force size and a lack of capability within the military services. For example, an Army contract for linguist services had a requirement for more than 11,000 linguists because DOD did not have the needed linguists. According to Army officials, the Army phased out many interpreter positions years ago and did not anticipate a large need for Arabic speakers.[Read More…]
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- Foreign Assistance: Reporting of Defense Articles and Services Provided through Drawdowns Needs to Be ImprovedBy Sam NewsAugust 23, 2021Since 1961, the President has had special statutory authority to order the "drawdown" of defense articles--such as aircraft, vehicles, various weapons, and spare parts--and services or military education and training from Department of Defense (DOD) and military service inventories and transfer them to foreign countries or international organizations. Drawdowns give the President the ability to respond to U.S. foreign policy and national security objectives, such as counternarcotics efforts, peacekeeping needs, and unforeseen military and nonmilitary emergencies, by providing military assistance without first seeking additional legislative authority or appropriations from Congress. The Defense Security Cooperation Agency's reports to Congress on the costs and delivery status of drawdowns are inaccurate and incomplete. Two principal problems contribute to the agency's inability to meet the reporting requirements. First, its information system for recording drawdown data is outmoded and difficult to use--service drawdown reports are in different formats, and any conversion errors have to be manually corrected. Second, the services do not regularly provide updates to the agency on drawdown costs and deliveries, and available information sometimes does not get into the system. Drawdowns benefit the United States and foreign recipients primarily by providing the President the flexibility to address foreign policy and national security objectives quickly. Drawdowns also allow the President to provide defense articles and services to improve foreign recipients' capability to conduct military and police missions in support of U.S. foreign policy. Other benefits cited include improved military-to-military relations between the U.S. military services and the foreign recipients and expanded markets for U.S. defense firms. According to U.S. and foreign military officials, the use of drawdowns presents some concerns. Because drawdowns are used to quickly address U.S. national interests and emergencies, the costs associated with a drawdown, such as refurbishment and transportation, are not budgeted for by the services and are not reimbursed.[Read More…]
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- Owner and Operator of India-Based Call Centers Sentenced to Prison for Scamming U.S. Victims out of Millions of DollarsBy Sam NewsNovember 30, 2020An Indian national was sentenced today to 20 years in prison followed by three years of supervised release in the Southern District of Texas for his role in operating and funding India-based call centers that defrauded U.S. victims out of millions of dollars between 2013 and 2016.[Read More…]
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- U.S. Announces Designation of Cuba as a State Sponsor of TerrorismBy Sam NewsJanuary 13, 2021Michael R. Pompeo, [Read More…]
- Afghanistan Security: Some Improvements Reported in Afghan Forces’ Capabilities, but Actions Needed to Enhance DOD Oversight of U.S.-Purchased EquipmentBy Sam NewsAugust 24, 2021What GAO Found Since the Resolute Support mission began in 2015, the Afghan National Defense and Security Forces (ANDSF) have improved some fundamental capabilities, such as high-level operational planning, but continue to rely on U.S. and coalition support to fill several key capability gaps, according to Department of Defense (DOD) reporting. DOD has initiatives to address some ANDSF capability gaps, such as a country-wide vehicle maintenance and training effort, but DOD reports it does not expect the ANDSF to develop and sustain independent capabilities in some areas, such as logistics, for several years. Examples of U.S.-Purchased Equipment for the Afghan National Defense and Security Forces While DOD has firsthand information on the abilities of the Afghan Air Force and Special Security Forces to operate and maintain U.S.-purchased equipment, it has little reliable information on the equipment proficiency of conventional ANDSF units. U.S. and coalition advisors are embedded at the tactical level for the Air Force and Special Security Forces, enabling DOD to directly assess those forces' abilities. However, the advisors have little direct contact with conventional ANDSF units on the front lines. As a result, DOD relies on those units' self-assessments of tactical abilities, which, according to DOD officials, can be unreliable. GAO's analysis of three critical equipment types illustrated the varying degrees of DOD's information (see figure above). For example, DOD provided detailed information about the Air Force's ability to operate and maintain MD-530 helicopters and the Special Security Forces' ability to operate and maintain Mobile Strike Force Vehicles; however, DOD had limited information about how conventional forces operate and maintain radios and Mobile Strike Force Vehicles. DOD's lack of reliable information on conventional forces' equipment operations and maintenance abilities adds to the uncertainty and risk in assessing the progress of DOD efforts in Afghanistan. Why GAO Did This Study Developing independently capable ANDSF is a key component of U.S. and coalition efforts to create sustainable security and stability in Afghanistan under the North Atlantic Treaty Organization (NATO)-led Resolute Support mission. The United States is the largest contributor of funding and personnel to Resolute Support, providing and maintaining ANDSF equipment, along with training, advising, and assistance to help the ANDSF effectively use and sustain the equipment in the future. House Report 114-537 included a provision for GAO to review the ANDSF's capability and capacity to operate and sustain U.S.-purchased weapon systems and equipment. This report addresses (1) what has been reported about ANDSF capabilities and capability gaps and (2) the extent to which DOD has information about the ANDSF's ability to operate and maintain U.S.-purchased equipment. To conduct this work, GAO analyzed DOD and NATO reports and documents, examined three critical equipment types, and interviewed DOD officials in the United States and Afghanistan. This is a public version of a sensitive report issued in September 2018. Information that DOD deemed sensitive has been omitted.[Read More…]
- Deputy Assistant Attorney General Richard A. Powers Delivers Remarks at Cartel Working Group Plenary: Big Data and Cartelization, 2020 International Competition Network Annual ConferenceBy Sam NewsSeptember 17, 2020Virtual Event Good [Read More…]
- Federal Court Orders North Carolina Pharmacy, Pharmacy Owner, and Pharmacist-in-Charge to Pay More Than $1 Million and Stop Dispensing OpioidsBy Sam NewsDecember 16, 2020A federal court in the Eastern District of North Carolina entered a consent judgment and injunction requiring a North Carolina pharmacy, Seashore Drugs Inc., its owner, John D. Waggett, and its pharmacist-in-charge, Billy W. King II, to pay $1,050,000.00 in civil penalties and to cease dispensing opioids or other controlled substances, the Department of Justice announced.[Read More…]
- Judiciary Makes the Case for New JudgeshipsBy Sam NewsIn U.S CourtsJune 30, 2020The creation of new judgeships has not kept pace with the growth in case filings over three decades, producing “profound” negative effects for many courts across the country, U.S. District Judge Brian S. Miller told Congress today.[Read More…]