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Posts Tagged ‘federal officials’

Thursday, June 13, 2013 @ 04:06 PM gHale

Eight members of a Ukrainian cybercrime ring are now facing charges after illegally access the networks of a number of financial institutions including Citibank, JP Morgan Chase, TD Ameritrade and PayPal, along with the U.S. Department of Defense’s Finance and Accounting Services service, federal officials said.

The gang stole in excess of $15 million via money laundering and identity theft after extracting customer account information from 15 different payment processors, banks and online brokers, said New Jersey U.S. Attorney Paul J. Fishman.

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The two ringleaders, Oleksiy Sharapka, 33, and Leonid Yanovitsky, 38, both of Kiev, Ukraine, remain at large, according to reports. Sharapka had previously been in custody in Massachusetts and served a 102-month federal sentence from 2004 to 2012 before officials deported him to Ukraine last spring, according to prosecutors in New Jersey.

While primarily based in Ukraine, the ring extended to New York City, Atlanta and two towns on the outskirts of Boston.

Oleg Pidtergerya, 49, of Brooklyn, NY; Robert Dubuc, 40, of Malden, MA; Andrey Yarmolitskiy, 41, of Atlanta, Richard Gunderson, 46, of Brooklyn, and Lamar Taylor, 37, of Salem, MA., face charges of three counts of conspiracy, one for wire fraud, one for money laundering and one for identity theft. While police arrested Pidtergerya, Ostapyuk and Dubuc in Brooklyn and Malden on Wednesday, Yarmolitskiy ended up arrested when he flew into John F. Kennedy International Airport Tuesday.

Police are still hunting for the two remaining co-conspirators, Gunderson and Taylor.

From March 2012 to June 2013, the suspects hacked into the servers of banks, secured customers’ information and funneled money from legitimate bank accounts to prepaid debit cards. “Cashers” in the U.S. cashed out the accounts via ATMs and by making fake purchases as part of what the federal complaint refers to as the “Sharapka Cash Out Organization.”

According to the complaint, the conspirators also defrauded the IRS by faking tax returns in the names of the identity theft victims. The ring received about $20,000 in fake tax refunds from June to July, 2012.

Fifteen companies were victims in the case, including Aon Hewitt, Automated Data Processing Inc., Citibank N.A., E-Trade, Electronic Payments Inc., Fundtech Holdings LLC, iPayment Inc., JP Morgan Chase Bank N.A., Nordstrom Bank, PayPal, TD Ameritrade, the U.S. Department of Defense’s Defense Finance and Accounting Service, TIAA-CREF, USAA, and Veracity Payment Solutions Inc.

Wednesday, September 12, 2012 @ 07:09 PM gHale

An 8-foot section of the pipe at the Chevron refinery in Richmond, CA, that thinned dangerously before it failed last month and help start a massive blaze is now in a lab undergoing analysis, federal officials said.

The wall of the 5/16th-inch-thick, 8-inch-diameter pipe leading away from the No. 4 Crude Unit had “lost most of its original thickness,” said U.S. Chemical Safety Board investigators. The section will undergo analysis for corrosion or other factors that may have led to its rupture and the Aug. 6 fireball.

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The probe will focus on whether Chevron followed industry standards in deciding to leave the pipe in place last year when the refinery was shut down for maintenance, said Don Holmstrom, the Chemical Safety Board’s western regional manager.

Chevron decided to replace a nearby 12-inch-diameter line during that refinery shutdown because of corrosion. The company considered replacing the 8-inch line but in the end kept the pipe in place.

Holmstrom said the federal investigators were still trying to determine how badly thinned the pipe was last year when Chevron made the initial decision to replace it.

One source close to the investigation said the pipe had lost roughly 80 percent of its wall thickness near the spot that ruptured, leaving about 1/16th of an inch of its wall remaining in some locations.

Holmstrom said federal investigators are also looking at whether regulators, notably the state’s Division of Occupational Safety and Health, exercised proper oversight of the refinery operation.

A recent federal audit found Cal/OSHA’s industrial process safety unit was conducting “very few, if any” comprehensive workplace-safety inspections of refineries and chemical plants in the state. A Chronicle review found what inspections the state has performed have not resulted in a single fine against a major oil company.

Monday, March 26, 2012 @ 05:03 PM gHale

Amid the gas-drilling boom, companies have put in hundreds of small pipelines to collect new fuel supplies released through fracking, the high-pressure drilling technique.

But at issue, government auditors said, is federal officials know nothing about the thousands of miles of pipelines that carry natural gas released through fracking, and need to step up oversight to make sure they are safe.

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Nationwide, about 240,000 miles of gathering pipelines ferry the gas and oil to processing facilities and larger pipelines in the major energy-producing states. Many of these pipelines course through densely populated areas, including neighborhoods in Fort Worth, TX.

The Government Accountability Office (GAO) said in a report issued Thursday most of those miles are not regulated by the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA), which means they do not undergo regular inspection for leaks or corrosion.

In some states, officials don’t know where the lines are.

Emily Krafjack, who lives in the gas-rich Marcellus Shale formation in Pennsylvania, said local residents have no idea federal regulators do not oversee the pipelines near their homes. Gathering lines that run in the rural northeastern corner of the state receive no federal oversight if there are fewer than 10 homes within 220 yards of the pipeline.

“Who would ever think that they could run something like this next to your home and it wouldn’t have any regulations attached to it?,” said Krafjack, a former community liaison for Wyoming County, PA, on gas issues.

Nationwide, there are about 200,000 miles of gas gathering lines and up to 40,000 miles of hazardous liquid gathering lines in rural and urban areas alike, ranging in diameter from 2 to 12 inches. But only about 24,000 of those miles are under regulation, the report said.

The industry does not need to report pipeline-related fatality, injury or property damage information about the unregulated lines. PHMSA only collects information about accidents on the small subset of gathering lines the agency regulates, but that data was not immediately available Thursday.

The pipeline agency is considering collecting more data on the unregulated gas gathering lines, but the plans are still preliminary and have met with some resistance from the natural gas industry. Agency officials are reviewing more than 100 public comments received about their proposal for gas lines, and also plan to propose a rule that will cover hazardous liquid gathering pipelines by the fall, said Jeannie Layson, a spokeswoman for PHMSA.

PHMSA delegates some enforcement of its rules to state-level pipeline safety authorities, who the GAO surveyed to understand the array of risks associated with gathering lines.

Those state-level agencies told the auditors that construction quality, maintenance practices, unknown locations, and limited or no information on current pipeline integrity all posed safety risks for federally unregulated gathering pipelines.

The expansion of hydraulic fracturing, which involves shattering rock thousands of feet underground with a combination of water, sand and chemicals, promises staggering yields, and drilling also comes with promises of job creation and economic opportunities.

But in Fort Worth, where dozens of new gathering lines appeared in recent years to capture supplies from hundreds of new wells, some residents said there aren’t enough protections from leaks and ruptures due to corrosion.

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