Tuesday, September 27, 2016



Complete DHS Report for September 27, 2016

Daily Report                                            

Top Stories

• North Carolina officials reached a $6 million settlement with Duke Energy September 23 to resolve violations of the Clean Water Act related to the February 2014 coal ash spill at the Dan River plant in Eden, North Carolina. – WNCN 17 Goldsboro

1. September 23, WNCN 17 Goldsboro – (North Carolina) NC reaches settlement with Duke Energy over Dan River spill. North Carolina officials reached a $6 million settlement with Duke Energy September 23 to resolve violations of the Clean Water Act related to the February 2014 coal ash spill at the Dan River plant in Eden, North Carolina. As part of the agreement, Duke Energy must excavate and close the Dan River coal ash ponds by August 2019 and close all of their coal ash ponds by 2029. Source: http://www.wbtv.com/story/33179392/nc-reaches-settlement-with-duke-energy-over-dan-river-spill

• A Utah resident and owner of HK Parts was convicted September 23 for defrauding the U.S. Internal Revenue Service out of more than $10 million between 2007 and 2012. – U.S. Attorney’s Office, District of Utah See item 2 below in the Financial Services Sector

• An El Dorado Hills, California resident pleaded guilty September 23 to running a more than $1.8 million tax refund scheme from June 2012 – March 2014. – U.S. Attorney’s Office, Eastern District of California See item 3 below in the Financial Services Sector

• A tax preparer operating in New York and New Jersey and his 4 associates were permanently enjoined from preparing Federal income tax returns September 23 after they allegedly ran a more than $17 million tax fraud scheme from 2000 – 2008. – U.S. Attorney’s Office, Southern District of New York See item 4 below in the Financial Services Sector

Financial Services Sector

2. September 24, U.S. Attorney’s Office, District of Utah – (National) Utah business owner convicted of dealing in firearms without a license and filing false tax returns. A Salt Lake County, Utah resident and owner of HK Parts was convicted September 23 for defrauding the U.S. Internal Revenue Service out of more than $10 million after he underreported his wages on personal income tax returns, underreported total receipts on corporate tax returns, and bought and sold roughly 2,000 firearms without a Federal license through hkparts.net and from the basement of his home under the auspices of another Utah-based business between 2007 and 2012. The charges state that the man used the illicit earnings for personal expenses. Source: https://www.justice.gov/usao-ut/pr/utah-business-owner-convicted-dealing-firearms-without-license-and-filing-false-tax

3. September 23, U.S. Attorney’s Office, Eastern District of California – (California) El Dorado Hills woman pleads guilty in bogus tax refund scheme involving more than $1.8 million in illegitimate refunds. An El Dorado Hills, California resident pleaded guilty September 23 to running a more than $1.8 million tax refund scheme where she and a co-conspirator allegedly prepared and filed hundreds of fraudulent claims with the U.S. Internal Revenue Service from June 2012 – March 2014, including claims that reported false wages and listed unrelated minors as dependents for the clients. Officials stated that the duo attempted to receive over $2.5 million in fraudulent tax refund claims during the scheme. Source: https://www.justice.gov/usao-edca/pr/el-dorado-hills-woman-pleads-guilty-bogus-tax-refund-scheme-involving-more-18-million

4. September 23, U.S. Attorney’s Office, Southern District of New York – (National) Manhattan federal court permanently bars tax preparer who orchestrated tax fraud scheme and four of his associates from engaging in tax preparation business. A tax preparer operating in New York and New Jersey and his 4 associates were permanently enjoined from engaging in Federal income tax return preparation or interfering with Federal tax law management and enforcement September 23 after he and the 4 co-conspirators ran a more than $17 million tax fraud scheme where the group prepared thousands of illegal tax returns through a New York and Englewood, New Jersey-based tax preparation company, claimed dependent deductions with the stolen identities of deceased children, and claimed fraudulent company losses for non-existent companies, among other illicit practices, from 2000 – 2008. Source: https://www.justice.gov/usao-sdny/pr/manhattan-federal-court-permanently-bars-tax-preparer-who-orchestrated-tax-fraud-scheme

Information Technology Sector

21. September 23, SecurityWeek – (International) Locky ransomware fuels surge in .RAR JavaScript attachments. Trend Micro security researchers reported the Locky ransomware was responsible for an increase in certain methods of malware delivery after finding that during the first half of 2016, 58 percent of ransomware threats were delivered via email attachments including JavaScript, VBScript, and Microsoft Office files with macros. The researchers also reported that the malicious emails used to deliver the ransomware contained similar subject lines involving invoices, banking transactions, and parcel delivery, among other subjects, and stated the emails used social engineering to determine which victims to target.

For another story, see item 22 below in the Communications Sector

Communications Sector

22. September 23, SecurityWeek – (International) Xiny Android trojans can infect system processes. Doctor Web security researchers discovered the Android.Xiny trojans, which are distributed through popular Websites and official app stores, received updates which enable the trojans to inject themselves into system applications, thereby allowing the trojans to launch malicious plug-ins. Doctor Web researchers also found the malware was updated to include an immutable Android application package (APK) file to ensure the trojan cannot be deleted.

Monday, September 26, 2016



Complete DHS Report for September 26, 2016

Daily Report                                            

Top Stories

• Severe thunderstorms left up to 37,591 Rocky Mountain Power customers in northern Utah without power September 22. – Ogden Standard-Examiner

1. September 22, Ogden Standard-Examiner– (Utah) More than 30,000 still without power in northern Utah. Crews worked September 22 to restore power to 30,300 Rocky Mountain Power customers in northern Utah who remained without power following severe thunderstorms that knocked out power to about 37,591 people. Source: http://www.standard.net/Local/2016/09/22/Power-outages-reported-for-more-than-17-000-in-Northern-Utah.html

• North Carolina officials announced September 23 that 1 million gallons of untreated wastewater spilled into Charles Creek September 21. – WAVY 10 Portsmouth

15. September 23, WAVY 10 Portsmouth – (North Carolina) 1M gallons of untreated wastewater spills in Elizabeth City. Elizabeth City, North Carolina officials announced September 23 that 1 million gallons of untreated wastewater spilled from the city’s sewage collection system into the Charles Creek of the Pasquotank River September 21. The Elizabeth City Division of Water Quality is investigating the situation.

• The owner and president of Chicago-based Jewels Bus Co. was charged in an indictment unsealed September 22 after she allegedly falsely reported both her personal income and the company’s income to the U.S. Internal Revenue Service from 2009 – 2011. – U.S. Attorney’s Office, Northern District of Illinois

18. September 22, U.S. Attorney’s Office, Northern District of Illinois – (Illinois) Bus company owner charged with federal tax violations for failing to report earnings from Chicago schools. The owner and president of Chicago-based Jewels Bus Co., contracted with Chicago Public Schools, was charged in an indictment unsealed September 22 after she allegedly concealed income from the company’s tax return preparer by failing to record special events income in company books, falsely reported to the U.S. Internal Revenue Service that the company’s income was more than $30.8 million, and falsely reported that her individual earnings exceeded $1.1 million from 2009 – 2011, among other charges. Source: https://www.justice.gov/usao-ndil/pr/bus-company-owner-charged-federal-tax-violations-failing-report-earnings-chicago

• Yahoo Inc. confirmed September 22 that a hacker, dubbed “Peace” and “peace_of_mind” accessed the data from at least 500 million user accounts, including names, email addresses, and other information, during a 2014 cyberattack. – SecurityWeek See item 19 below in the Information Technology Sector

Financial Services Sector

5. September 22, U.S. Attorney’s Office, District of Connecticut – (Connecticut; New York) New Haven man admits committing 6 bank robberies in Connecticut and New York. A New Haven, Connecticut resident pleaded guilty September 22 after he robbed 6 banks in Connecticut and New York from October – November 2015. Source: https://www.justice.gov/usao-ct/pr/new-haven-man-admits-committing-6-bank-robberies-connecticut-and-new-york

6. September 22, U.S. Attorney’s Office, Southern District of New York – (International) Six individuals charged for their roles in international money laundering and drug trafficking conspiracies. Six individuals were charged September 22 for laundering hundreds of millions of dollars in drug profits through the U.S., Italy, Hong Kong, and Mexico, and trafficking hundreds of kilograms of drugs since July 2013, as part of their involvement in the ‘Organization,’ a global drug trafficking and money laundering operation with links to the U.S., Panama, Mexico, and other countries. The charges allege that the defendants created a shadow banking system with stash houses throughout the U.S. where the group received the illicit proceeds, and then laundered the money through several Las Vegas businesses operated by a co-conspirator. Source: https://www.justice.gov/usao-sdny/pr/six-individuals-charged-their-roles-international-money-laundering-and-drug-trafficking

For additional stories, see item 2 below from the Energy Sector and item 23 below from the Commercial Facilities Sector

2. September 22, U.S. Attorney’s Office, Western District of Texas – (International) Federal jury convicts El Paso attorney in connection with a multi-million dollar fraud/money laundering scheme. A legal representative of El Paso, Texas-based FGG Enterprises, Inc., was convicted September 21 after he sent a fraudulent written request compelling Comision Federal de Electricidad (CFE), a Mexican-state-owned utility company, to unknowingly redirect more than $32 million in payments to an account the attorney controlled in the Turks and Caicos Islands from 2010 – 2012. The charges state the attorney used the stolen funds for personal expenses. Source: https://www.justice.gov/usao-wdtx/pr/federal-jury-convicts-el-paso-attorney-marco-delgado-connection-multi-million-dollar

23. September 22, U.S. Attorney’s Office, District of Alaska – (Alaska) Two men indicted for series of armed robberies and brandishing a short-barreled shotgun. Two men were indicted September 22 after the pair allegedly robbed a Wells Fargo Bank branch, the Captain Sparrow Liquor Store, the Brown Jug Liquor Store, and 3 other businesses in Anchorage, Alaska, since August. Source: https://www.justice.gov/usao-ak/pr/two-men-indicted-series-armed-robberies-and-brandishing-short-barreled-shotgun

Information Technology Sector

19. September 22, SecurityWeek – (International) Yahoo confirms massive data breach of 500 million accounts. Yahoo Inc. confirmed September 22 that a hacker, dubbed “Peace” and “peace_of_mind” accessed the data from at least 500 million user accounts, including names, email address, hashed passwords, and birth dates, among other information, during a 2014 cyberattack. Yahoo stated unencrypted security questions and answers were invalidated and advised potentially affected users to change their passwords.

20. September 22, SecurityWeek – (International) Over a dozen vulnerabilities patched in OpenSSL. The OpenSSL project released OpenSSL versions 1.1.0a, 1.0.2i, and 1.0.1u resolving more than 12 vulnerabilities, including a high severity flaw after a security researcher from Qihoo 360 discovered the issue can be exploited to carry out denial-of-service (DoS) attacks by sending the targeted device a large Online Certificate Status Protocol (OCSP) Status Request extension, among other vulnerabilities. Source: http://www.securityweek.com/over-dozen-vulnerabilities-patched-openssl

Communications Sector

Nothing to report