HOMELAND SECURITY AGENT RECEIVES PRISON TERM FOR IMPEDING GOVERNMENT CORRUPTION INVESTIGATIONS

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, December 15, 2014

Former Special Agent in Charge of the Department of Homeland Security's Office of Inspector General Sentenced to More Than Three Years in Prison
A former Special Agent in Charge of the Department of Homeland Security - Office of Inspector General (DHS-OIG) was sentenced to 37 months in prison today for a scheme to falsify records and obstruct an internal DHS-OIG inspection, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office.  The sentence was imposed by U.S. District Judge Andrew S. Hanen of the Southern District of Texas.

“While leading an office responsible for investigating misconduct at other government agencies, Pedraza sought to impede and obstruct the investigation of his own office,” said Assistant Attorney General Caldwell.  “Pedraza’s criminal conduct resulted in the premature closing of criminal cases without resolution, potentially endangering our national security and allowing others to escape justice.  We will root out and prosecute corruption wherever it may be found, including within the ranks of federal law enforcement.”

Former DHS-OIG Special-Agent-in-Charge Eugenio Pedraza, 50, of McAllen, Texas, was found guilty following a four-day jury trial on March 14, 2014, of conspiring with three other special agents to falsify criminal investigative reports to impede an internal DHS-OIG inspection and obstruct the underlying criminal investigations.  The jury also found Pedraza guilty of five counts of falsifying records.

DHS-OIG is responsible for investigating alleged criminal activity by DHS employees, including corruption by Customs and Border Protection (CBP) and Immigration and Customs Enforcement personnel affecting the integrity of the U.S. borders.  Pedraza headed DHS-OIG’s McAllen Field Office (MCA) from January 2009 to January 2012.

According to evidence presented at trial, in September 2011, DHS-OIG conducted an internal inspection of the MCA to evaluate whether the agency’s investigative standards and policies were being followed.  In anticipation of the internal inspection, Pedraza and at least three other DHS-OIG agents, including Special Agent Wayne Ball, engaged in a scheme to falsify investigative documents to make it appear that criminal investigations were being conducted in a timely fashion and in accordance with DHS-OIG standard operating procedures.  The scheme’s purpose was to conceal severe lapses in DHS-OIG’s investigative standards and policies at the MCA and Pedraza’s failure to properly supervise agents and investigations.  Court documents reflect that Pedraza, Ball, and other special agents wrote and signed false criminal investigative reports.  Pedraza then approved the reports for inclusion in the official investigative case files.

For example, the evidence at trial showed that, at Pedraza’s direction, a special agent drafted false memoranda of activity (MOAs) to fill gaps of inactivity in a criminal investigation to which he was assigned.  The criminal investigation had been initiated in March 2010 and concerned allegations that a CBP officer was assisting the unlawful smuggling of undocumented aliens and narcotics into the United States.   Because the MOAs were intended to describe investigative activities that occurred when the drafting agent was either not present at the MCA or not employed by DHS-OIG at all, Pedraza directed the agent to attribute the investigative activity to Ball.  Ball then signed and backdated the false MOAs.  Pedraza also signed and backdated the false MOAs, which were then placed in the investigation’s case file in advance of the internal inspection.  Upon discovery of the falsified reports, the criminal investigation had to be closed without resolution.  According to evidence presented at trial, Pedraza similarly directed other special agents to falsify records related to at least four other criminal investigations.

On Jan. 17, 2013, Ball pleaded guilty to one count of conspiring with Pedraza and at least two other special agents to falsify records in federal investigations and obstruct an agency proceeding.  Ball is scheduled to be sentenced on Jan. 7, 2015, by U.S. District Judge Hilda G. Tagle of the Southern District of Texas.

This case was investigated by the FBI’s San Antonio Field Office and is being prosecuted by Trial Attorneys Eric Gibson, Brian Kidd and J.P. Cooney of the Criminal Division’s Public Integrity Section.

U.S. ATTORNEY GENERAL HOLDER'S STATEMENT ON "OPERATION FAST AND FURIOUS" REPORT

FROM: U.S. DEPARTMENT OF JUSTICE
Wednesday, September 19, 2012
Statement by Attorney General Eric Holder on the Office of the Inspector General’s Report on Operation Fast and Furious

Attorney General Eric Holder released the following statement today on the Department of Justice’s Office of the Inspector General’s report on Operation Fast and Furious:

"I have reviewed the Office of the Inspector General’s report on Operation Fast and Furious and the key conclusions are consistent with what I, and other Justice Department officials, have said for many months now:

The inappropriate strategy and tactics employed were field-driven and date back to 2006;

The leadership of the Department did not know about or authorize the use of the flawed strategy and tactics; and The Department’s leadership did not attempt to cover up information or mislead Congress about it.

"Beginning in 2011 - shortly after public concerns were first raised about Operation Fast and Furious – I referred this matter to the Office of the Inspector General (OIG). Throughout the next several months, I instituted significant policy reforms, stronger internal controls and made key personnel changes to prevent the flaws that plagued this investigation, as well as the earlier investigation, Operation Wide Receiver, from recurring. I’m pleased that the OIG report appropriately recognizes these reforms.

"Based upon the information in the OIG report and other related information, I am also announcing additional personnel changes today.

"First, Kenneth Melson, the former Acting Director at ATF, has retired from the Department, effective immediately. Ken has served the Department in several important roles for over thirty years, including as a United States Attorney for the Eastern District of Virginia and more recently as an advisor on forensic science issues. I want to thank him for his dedication and service to the Department over the last three decades.

"Second, those individuals within ATF and the U.S. Attorney's Office for the District of Arizona, whom the OIG report found to have been responsible for designing, implementing or supervising Operation Fast and Furious have been referred to the appropriate entities for review and consideration of potential personnel actions. Consistent with the requirements of the Privacy Act, the Department is prohibited from revealing any additional information about these referrals at this time.

"Finally, I have accepted the resignation of Deputy Assistant Attorney General Jason Weinstein, a longtime career prosecutor who most recently served in the Criminal Division where he led our violent and organized crime, computer crimes and intellectual property enforcement efforts. Jason has dedicated much of his career to fighting violent crime and has led highly successful efforts around the country in this effort. The American people are safer because of his work. His commitment to the Department has been unwavering, and I deeply appreciate his 15 years of distinguished service here at Main Justice as well as in Baltimore and New York.

"It is unfortunate that some were so quick to make baseless accusations before they possessed the facts about these operations – accusations that turned out to be without foundation and that have caused a great deal of unnecessary harm and confusion. I hope today’s report acts as a reminder of the dangers of adopting as fact unsubstantiated conclusions before an investigation of the circumstances is completed.

"I want to assure the American people that I, and my colleagues at the Department, will continue to focus on our mission of protecting their rights and their security, and doing so in a manner that is consistent with the high standards of the Department of Justice. This includes continuing to seek justice on behalf of Agent Brian Terry and his loved ones.

"The FBI and the United States Attorney from the Southern District of California have been working for many months with Mexican authorities to identify and apprehend the fugitives involved in the murder of Agent Terry, who made the ultimate sacrifice in serving his country. We now have two men in custody and we will continue to aggressively pursue the remaining fugitives to ensure justice for Agent Terry, his family and his fellow law enforcement agents who put their lives on the line each day to keep this country safe."