FOR IMMEDIATE RELEASE June 11, 2021

DOJ OIG Initiates a Review of the Department of Justice’s Use of Subpoenas and Other Legal Authorities to Obtain Communication Records of Members of Congress and Affiliated Persons, and the News Media

Department of Justice (DOJ) Inspector General Michael E. Horowitz announced today that:

The DOJ Office of the Inspector General (OIG) is initiating a review of DOJ’s use of subpoenas and other legal authorities to obtain communication records of Members of Congress and affiliated persons, and the news media in connection with recent investigations of alleged unauthorized disclosures of information to the media by government officials. The review will examine the Department’s compliance with applicable DOJ policies and procedures, and whether any such uses, or the investigations, were based upon improper considerations. If circumstances warrant, the OIG will consider other issues that may arise during the review.

The review will not substitute the OIG’s judgment for the legal and investigative judgments made in the matters under OIG review.

https://oig.justice.gov/news/doj-oig-initiates-review-department-justices-use-subpoenas-and-other-legal-authorities-obtain

Department of Justice Office of Public Affairs

FOR IMMEDIATE RELEASE Friday, June 11, 2021

U.S. ENTERTAINER/BUSINESSMAN AND MALAYSIAN NATIONAL CHARGED WITH BACK-CHANNEL LOBBYING CAMPAIGN TO DROP 1MDB INVESTIGATION AND REMOVE CHINESE DISSIDENT FROM U.S.

A federal grand jury in the District of Columbia returned a superseding indictment Thursday charging a U.S. entertainer and businessman and a Malaysian national with orchestrating an unregistered, back- channel campaign beginning in or about 2017 to influence the then-administration of the President of the United States and the Department of Justice both to drop the investigation of Jho Low and others in connection with the international strategic and development company known as 1Malaysia Development Berhad (1MDB), and to send a Chinese dissident back to China.

According to the superseding indictment, Low Taek Jho, 39, also known as Jho Low, and Prakazrel “Pras” Michel, 48, are alleged to have conspired with Elliott Broidy, Nickie Lum Davis, and others to engage in undisclosed lobbying campaigns at the direction of Low and the Vice Minister of Public Security for the People’s Republic of China, respectively, both to have the 1MDB embezzlement investigation and forfeiture proceedings involving Low and others dropped and to have a Chinese dissident sent back to China. Michel and Low are also charged with conspiring to commit money laundering related to the foreign influence campaigns. Michel is also charged with witness tampering and conspiracy to make false statements to banks.

In May 2019, Michel and Low were charged in the District of Columbia for allegedly orchestrating and concealing a foreign and conduit contribution scheme in which they funneled millions of dollars of Low’s money into the U.S. presidential election as purportedly legitimate campaign contributions, all while concealing the true source of the money. According to the indictment, to execute the scheme, Michel received Low’s money and contributed it both personally and through approximately 20 straw donors.

If convicted, Low faces a maximum penalty of five to 10 years in prison, per count. If convicted, Michel faces a range of maximum penalties from five to 20 years in prison, per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Deputy Assistant Attorney General Kevin O. Driscoll of the Justice Department’s Criminal Division; Special Agent in Charge Keith A. Bonanno of the Department of Justice Office of the Inspector General Cyber Investigations Office; Assistant Director in Charge Kristi Koons Johnson of the FBI’s Los Angeles Field Office; and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.

The Justice Department’s Office of the Inspector General and the FBI’s Los Angeles Field Office and International Corruption Squad in New York are investigating the case.

Principal Deputy Chief John D. Keller, Deputy Director of Election Crimes Sean F. Mulryne, and Trial Attorney Nicole R. Lockhart of the Criminal Division’s Public Integrity Section are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

https://oig.justice.gov/news/press-release/us-entertainerbusinessman-and-malaysian-national-charged-back-channel-lobbying

SEC Charges Dentist-Turned-Investment Adviser for Three Separate Frauds

FOR IMMEDIATE RELEASE

2021-98

Washington D.C., June 11, 2021 —

The Securities and Exchange Commission today charged Edgar M. Radjabli of Boca Raton, Florida, and two entities he controlled for engaging in three separate securities frauds of escalating size.

The SEC’s complaint alleges that Radjabli, formerly a practicing dentist, and Apis Capital Management LLC, an unregistered investment adviser firm Radjabli owned and controlled, conducted a fraudulent offering of Apis Tokens, a digital asset representing tokenized interests in Apis Capital’s main investment fund. Radjabli and Apis Capital issued a June 2018 press release falsely claiming that the Apis Token offering had raised $1.7 million when, in fact, the offering had raised no money.

The complaint further alleges that Radjabli and Apis Capital manipulated the securities market for Veritone Inc., a publicly-traded artificial intelligence company, by announcing in December 2018 an unsolicited cash tender offer to purchase Veritone for $200 million, when, in truth, Radjabli and Apis Capital lacked the financing or any reasonable prospect of obtaining the financing necessary to complete the deal. Radjabli allegedly generated $162,800 in illicit profits on the resulting increase in Veritone’s stock price by trading Veritone securities on behalf of Apis Capital and an affiliated fund.

Finally, the complaint alleges that Radjabli raised nearly $20 million from more than 450 investors in an unregistered, fraudulent securities offering launched in August 2019 through My Loan Doctor LLC. Radjabli falsely represented that investor funds raised by Loan Doctor would be used to originate loans to healthcare professionals which then would be securitized and sold to large institutional investors. Instead, Radjabli allegedly invested the bulk of the investor funds in unsecured and uninsured loans to digital asset lending firms and loaned almost $1.8 million of investor proceeds to Apis Capital.

“As the SEC alleges, Mr. Radjabli engaged in serial securities fraud that has no place in our markets,” said Kristina Littman, Chief of the SEC Enforcement Division's Cyber Unit. “Today’s resolution includes important relief to protect investors from further harm.”

The SEC’s complaint charges Radjabli, Apis Capital, and Loan Doctor with violations of the registration provisions of the Securities Act of 1933 and the antifraud provisions of the federal securities laws. The defendants have agreed to settle the charges against them, without admitting or denying the allegations in the complaint. The settlement, which is subject to court approval, would require Radjabli to pay a total of $600,000 in monetary relief comprised of $162,800 in disgorgement, $17,870 in prejudgment interest, and $419,330 in civil penalties, for which he, Apis Capital, and Loan Doctor would be jointly and severally liable based on Apis Capital’s and Loan Doctor’s respective roles in the three frauds. The settlement would also permanently enjoin Radjabli, Apis Capital, and Loan Doctor from violating the charged provisions of the federal securities laws, impose a conduct-based injunction and penny stock bar on Radjabli, and bar Radjabli from the securities industry.

The SEC’s investigation was conducted by Jonathan Austin, John Lucas, and Deborah A. Tarasevich. The investigation was supervised by Ms. Littman and Associate Director Jennifer Leete. The litigation is being handled by David Misler and Stephan Schlegelmilch. The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the Consumer Financial Protection Bureau.

https://www.sec.gov/news/press-release/2021-98