District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Justice Department Settles Claims Against Toms River, New Jersey over Zoning Code That Restricts Houses of WorshipRead the Press Release
The Justice Department today announced an agreement with the Township of Toms River, New Jersey, to resolve allegations that the Township violated the Religious Land Use and Institutionalized Persons Act (RLUIPA) by severely restricting where houses of worship can locate within its jurisdiction.
The proposed consent decree, which was filed today in the U.S. District Court of the District of New Jersey and must still be approved by the court, would resolve a lawsuit the United States also filed today alleging that the Township’s zoning code places unreasonable limits on where religious assemblies and institutions may locate, substantially burdens religious exercise and treats religious assemblies and institutions on less than equal terms with nonreligious assemblies and institution.
“RLUIPA protects people of all faiths in their right to exercise their religion,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Civil Rights Division. “The Department of Justice has long enforced RLUIPA against zoning regulations that unreasonably burden religious exercise by imposing unwarranted restrictions and conditions on the location of houses of worship.”
“Federal law protects religious communities against unequal treatment and unwarranted burdens,” said Rachael A. Honig, Acting U.S. Attorney for the District of New Jersey. “Zoning regulations that impose unreasonable restrictions or prevent religious faiths from having a place to worship violate RLUIPA. Through the resolution entered today, this office takes another step to put an end to unlawful zoning practices and vindicate the civil rights of minority religious communities in the District of New Jersey.”
The complaint alleges that since 2009, Toms River has enacted a series of revisions to its zoning code—including a ten-acre parcel minimum requirement—which greatly reduced both the number of zoning districts in which houses of worship can locate and the number of sites available for houses of worship. These restrictions have had a particular impact on the Township’s Orthodox Jewish population, who, because of their faith and religious traditions, tend to worship at small houses of worship which they walk to and from on the Sabbath and holidays. The complaint also alleges that the Township’s zoning ordinance treats houses of worship and other religious assemblies and institutions on less favorable terms than nonreligious assemblies and institutions.
As part of the consent decree, the Township will revise its zoning code to: reduce the minimum acreage required for a house of worship in many zoning districts from ten acres to two acres; allow houses of worship as-of-right in certain zoning districts; allow smaller houses of worship to be located on minor collector roads; and treat houses of worship on comparable terms to nonreligious places of assembly. The consent decree also requires the Township to train its officials and employees on RLUIPA’s requirements, establish a procedure for receiving and resolving RLUIPA complaints and other injunctive relief.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or the U.S. Attorney’s Office Civil Right Hotline at (855) 281-3339, or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Justice Department Files Title VII Sex Discrimination Lawsuit Against Alabama Sheriff’s Office and the Mobile County SheriffRead the Press Release
The Department of Justice announced today that it has filed a lawsuit against the Mobile County Sheriff’s Office, Alabama’s second-largest sheriff’s office, and the Mobile County Sheriff, in his official capacity (collectively, MCSO).
The lawsuit alleges that MCSO discriminated against current and former female corrections officers and other similarly situated female employees on the basis of sex, in violation of Title VII of the Civil Rights Act of 1964, by subjecting them to a sexually hostile work environment. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, race, color, national origin and religion.
The Department’s complaint, filed today in the U.S. District Court for the Southern District of Alabama, alleges that female corrections officers at MCSO were regularly subjected to severe and pervasive sexual harassment in the workplace by male inmates who frequently expose their genitals, masturbate, and direct sexual slurs, sexual propositions, threats of sexual violence and sexually degrading comments towards female employees. The complaint alleges that despite the employees’ numerous reports to MCSO supervisors objecting to the harassment, MCSO did not take the complaints seriously and failed to take prompt and effective action to remedy this harassing conduct.
“Nobody deserves to be sexually harassed while on the job,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Civil Rights Division. “The behavior to which these female employees were subjected is appalling, and the County’s failure to take action to protect its employees from such conduct is inexcusable.”
Twelve female correctional officers employed by the MCSO filed charges of sex discrimination with the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC investigated the charges and found that there was a reasonable basis to believe that violations of Title VII had occurred. After unsuccessful conciliation efforts by the EEOC, the charges were referred by the EEOC to the Justice Department.
Through this lawsuit, the United States seeks monetary relief for the affected female employees and injunctive relief to require MCSO to develop and implement policies that would prevent and remedy sex-based harassment in the future.
Today’s lawsuit is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative announced in February 2018. The Initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach, and development of effective remedial measures to address and prevent future sex discrimination and harassment.
The United States is represented in the case by Senior Trial Attorneys Taryn Wilgus Null, Alicia Johnson, and Juliet Gray of the Civil Rights Division’s Employment Litigation Section.
Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at https://www.justice.gov/crt.
Correctional Sergeant and Correctional Officer Indicted for Inmate Abuse, Obstruction of JusticeRead the Press Release
A federal grand jury in Alabama returned a five-count indictment today charging two Alabama men, an Alabama Department of Corrections (ADOC) sergeant and corrections officer with assaulting an inmate at ADOC’s Staton Correctional Facility and making false statements following the assault.
According to court documents, Sergeant Devlon Williams, 35 and Correctional Officer Larry Managan Jr. 39, of Montgomery assaulted the inmate by striking him with their feet and with a collapsible baton, and charges Managan with assaulting the inmate by walking on the inmate. Both Williams and Managan also were charged with making false statements about the assault to a state investigator, and Williams was charged with making a false statement about the assault in an official report.
Williams faces a statutory maximum sentence of 50 years in prison. Managan faces a statutory maximum of 40 years in prison.
This case is being investigated by the FBI’s Mobile Division and ADOC’s Law Enforcement Services Division.
It is being prosecuted by Assistant U.S. Attorney Eric Counts of the Middle District of Alabama, Special Legal Counsel Mark Blumberg and Trial Attorney David Reese of the Civil Rights Division.
The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty in court.
Former Oilfield Manager Pleads Guilty in Connection with OSHA Worker Fatality InvestigationRead the Press Release
A Montana man pleaded guilty in federal court in the District of North Dakota to a felony charge of obstructing an Occupational Safety and Health Administration (OSHA) proceeding stemming from the 2014 death of an oilfield worker in Williston, North Dakota.
Stephan Todd Reisinger, 50, of Kalispell, was a maintenance manager at Nabors Completion and Production Services Company (NCPS) at its Williston facility. He supervised approximately 40 employees, including 28-year old U.S. Marine Corps veteran Dustin Payne. On Oct. 3, 2014, Payne welded on an uncleaned tanker trailer that had previously carried “produced water,” a liquid waste that is generated by oil wells and which contains flammable chemicals. The tank exploded and Payne was fatally injured.
Federal law makes it illegal to weld on tanks or other containers that have not been thoroughly cleaned to remove all flammable materials and explosion hazards.
“It is critical that OSHA be able to fully investigate worker safety fatalities,” said Acting Assistant Attorney General Jean E. Williams for the Justice Department’s Environment and Natural Resources Division. “The Justice Department will prosecute those who impede OSHA’s ability to find out the truth in the course of any safety investigation.”
“Federal workplace laws are designed to protect workers and enhance safety in order to prevent injuries and deaths,” said Special Agent in Charge Andrea M. Kropf of the U.S. Department of Transportation Office of Inspector General, Midwestern Region. “We will continue to work with our federal and law enforcement partners to hold those accountable who jeopardize transportation and hazardous material workers’ safety.”
In a plea agreement with the government, Reisinger admitted to knowing the tanker trailers hauled produced water. During an investigation into Payne’s death, he made false statements in an interview with OSHA, including that he did not know of the hazards and composition of produced water. Reisinger falsely stated that he thought “just water” was in the tanks.
C&J Well Services, the corporate successor to NCPS, previously pleaded guilty to charges related to Payne’s death and on Aug. 28, 2019, was sentenced to pay $2.1 million in fines and restitution. NCPS policies mandated special training for welders and internal auditing procedures to make sure that welding rules were actually being followed. However, NCPS did not provide welding-specific training to Payne or other welders at the Williston facility. As a result, Payne and other welders repeatedly welded on uncleaned tanks that contained flammable hydrocarbon residue.
OSHA, the U.S. Environmental Protection Agency - Criminal Investigation Division and the U.S. Department of Transportation Office of the Inspector General, with additional support from the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Senior Trial Attorney Christopher Costantini of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Gary Delorme for the District of North Dakota prosecuted the case.
Doctor, Clinic Owner and Staff Charged with Falsifying Clinical Trial DataRead the Press Release
In an indictment unsealed today, a federal grand jury in Miami charged a Florida medical doctor and three others for their roles in an alleged scheme to falsify clinical trial data.
According to court documents, Dr. Martin Valdes, 64, of Coral Gables, Florida, Fidalgis Font, 53, of Miami, Julio Lopez, 54, of Miami, and Duniel Tejeda, 35, of Canon City, Colorado, were charged in a six-count indictment returned by a federal grand jury on Feb. 23, 2021. Each defendant was charged with conspiracy to commit mail and wire fraud and at least one substantive count of mail fraud. In addition, Valdes and Font were charged with money laundering and Valdes was further charged with making a false statement to inspectors with the U.S. Food and Drug Administration (FDA).
“The public must be able to rely on the accuracy and honesty of clinical trial data, which is essential to ensuring the safety of drugs approved for patient use,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The defendants undermined that process and put patients at risk. The Department of Justice will pursue and prosecute those who put personal profit before public health.”
According to the indictment, from at least February 2014 through at least July 2016, the defendants fabricated clinical trial data for profit while working at Tellus Clinical Research, a medical clinic based in Miami. The indictment alleges that the defendants knowingly enrolled subjects in clinical trials when those subjects failed to meet eligibility criteria, falsified subject laboratory results, falsified subject medical records, and falsely represented that subjects were taking the drugs being studied when in fact they were not. Valdes served as primary investigator for the clinical trials conducted at Tellus, Font was the owner of the business, and Lopez and Tejeda were senior Tellus employees.
“Reliable and accurate data from clinical trials is the cornerstone of FDA’s evaluation of a new drug,” said Catherine A. Hermsen, FDA Assistant Commissioner for Criminal Investigations. “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to monitor, investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”
“Falsifying clinical data is a violation of the public’s trust and it endangers the safety of consumers,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida. “Those who enrich themselves while compromising public health in this way commit serious crimes and will be prosecuted.”
If convicted of conspiracy to commit mail and wire fraud or mail fraud, each defendant faces a maximum penalty of 20 years’ imprisonment. If convicted of money laundering, Valdes faces a maximum penalty of 20 years’ imprisonment, and Font faces a maximum of 10 years’ imprisonment. If convicted of making a false statement to the FDA, Valdes faces a maximum of five years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Director Clint Narver, Trial Attorney Lauren M. Elfner, and Trial Attorney Joshua Rothman of the Justice Department’s Consumer Protection Branch are prosecuting the case. The FDA’s Office of Criminal Investigations, Miami Field Office, investigated the case, and the U.S. Attorney’s Office of the Southern District of Florida provided critical assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit https://www.justice.gov/usao-sdfl.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney’s Office Files Lawsuit Against Saipan Physician for Violations of the Controlled Substances ActRead the Press Release
SAIPAN, MP – The United States filed a civil complaint seeking to enjoin a Saipan physician from unlawfully dispensing opioids and other controlled substances. The government alleges that Dr. John L. Doyle unlawfully issued controlled substance prescriptions in violation of the Controlled Substances Act under Title 21 of the United States Code.
The complaint, filed in U.S. District Court for the Northern Mariana Islands, alleges that Dr. Doyle issued multiple prescriptions for high quantities of a dangerous combination of drugs commonly known as the Holy Trinity – opioids, benzodiazepines, and muscle relaxants – as well as other controlled substances to the spouse of a colleague, frequently without examining the patient. He allegedly ignored obvious signs of addiction and physical and mental deterioration when issuing opioid prescriptions and other controlled substances to another patient. The complaint also alleges that Dr. Doyle’s actions contributed to a high risk of overdose or death in these patients, a risk that he knew or should have known because he had been previously disciplined by the Kentucky Medical Board for similar violations that were related to the overdose death of a patient.
“It is a sad reality that some medical practitioners are fueling drug addiction in the United States. All too often, the diversion of drugs for illegitimate use results in tragic consequences,” said U.S. Attorney Shawn N. Anderson. “The Department of Justice is fighting this epidemic in a variety of ways. As this case demonstrates, we can and will pursue civil litigation to cut off the flow of illicit prescriptions at the source. We look forward to proving our claims in court and holding Dr. Doyle accountable for his conduct.”
“Doctors have a trusted responsibility to properly and legally care for their patients and when individuals take actions to harm them, they will be held accountable,” said DEA Assistant Special Agent in Charge Leslie Tomaich. “We have no tolerance for medical professionals that violate their oath and illegally distribute prescription drugs that exacerbate the opioid epidemic.”
The complaint alleges that Dr. Doyle wrote prescriptions for potent and dangerous opioids that he knew or should have known were not issued for a legitimate medical reason and outside the usual course of professional practice. The complaint seeks civil penalties up to $67,627 for each of the 73 violations of the Controlled Substances Act, as well as an injunction against the defendant. While several settlements have been reached with other physicians in this region pre-complaint, this lawsuit represents the first-ever Controlled Substances Act civil suit against a physician in the history of the District of the Northern Mariana Islands.
The claims asserted against defendants in a civil suit are allegations only and are not determinations of liability.
The investigation is being conducted by the Drug Enforcement Administration, Honolulu Diversion Group and Saipan Post of Duty. The case is being prosecuted by Mikel Schwab and Jessica F. Wessling, Assistant U.S. Attorneys for the Districts of Guam and the Northern Mariana Islands.
Readout of the Department of Justice’s Efforts to Combat Hate Crimes Against Asian American and Pacific Island CommunitiesRead the Press Release
The Department of Justice today held a listening session with more than a dozen Asian American and Pacific Islander (AAPI) community groups as part of its continuing efforts to deter hate crimes and other unlawful acts against the AAPI community.
“No one in America should fear violence because of who they are, what they look like or what part of the world they or their families came from,” said Acting Deputy Attorney General John Carlin, the host of the meeting. “The Department of Justice and our component agencies are committed to bringing all of our tools to bear in supporting AAPI communities as we address the horrific rise in hate and bias incidents occurring across the country.”
Today’s listening session follows a meeting Carlin had earlier this week with key U.S. Attorneys in Districts around the country with significant AAPI populations including:
- Northern District of California (San Francisco, San Jose, Oakland)
- Central District of California (Los Angeles)
- Southern District of Texas (Houston)
- Northern District of Illinois (Chicago)
- Southern District of New York (Manhattan)
Carlin requested feedback from each District’s work on AAPI-related hate crimes and incidents including cases trends, community outreach efforts and data collection. The meeting was also attended by senior leaders of the Department’s Civil Rights Division, Executive Office for the U.S. Attorneys and FBI Headquarters.
Additional Background
- On January 26, 2021, President Biden issued the “Presidential Memorandum Condemning and Combating Racism, Xenophobia, and Intolerance Against Asian Americans and Pacific Islanders in the United States,” which mandates that the “Attorney General shall:
- explore opportunities to support, consistent with applicable law, the efforts of State and local agencies, as well as AAPI communities and community-based organizations, to prevent discrimination, bullying, harassment, and hate crimes against AAPI individuals, and
- expand collection of data and public reporting regarding hate incidents against such individuals.
- Since the signing of that memo the Department has been working to combat discrimination and violence through both direct federal law enforcement action and capacity building, training, support, and outreach to our partners in state and local law enforcement and the AAPI community.
- The Department has investigated complaints of discrimination and violence against the AAPI community on all fronts – ranging from employment or housing discrimination to reported assaults.
- The Department has monitored reports by organizations like the Asian Pacific Policy & Planning Council (A3PCON) and Stop AAPI Hate, as well as media reporting, to identify which might be actionable under federal hate crime statutes.
- DOJ hosted Hate Crime Forums aimed at state and local law enforcement, attorneys, community members, community advocacy organizations, and other groups, to provide education raise awareness about hate crimes investigations, challenges and available resources.
- DOJ’s Community Relations Service is working with community-based groups including youth, faith leaders, cultural leaders, and civil rights organizers from API, Black, and Latino communities to reduce racial tensions and prevent violence.
- DOJ is just getting started. Among other things, DOJ plans to make clear that this issue is among our highest priority, engage in increased outreach, and dedicate resources to combat the threat.
- DOJ is taking a fresh look at ways of reinvigorating the Department’s Hate Crimes Enforcement and Prevention Initiative, to identify how we can best expand data collection and reporting regarding hate incidents against AAPI persons including:
- Launch a new community outreach and engagement program designed to improve identifying, reporting, and preventing hate crimes and build trust with federal, state, local, and tribal law enforcement;
- Translate our hate crimes resources website and complaint portal to the 4 most common AAPI languages, beginning with Chinese (Traditional and Simplified) and conduct outreach to reach those limited English proficient communities;
Work with state victims’ programs to help them address hate crimes; - Establish a new grant program to help states, localities, and tribal law enforcement agencies to conduct educational outreach and training on hate crimes and to investigate and prosecute hate crimes;
- Launch a new Hate Crimes program under the Matthew Shepard/James Byrd Hate Crimes Program to support funds and training and technical assistance to support outreach, education, reporting, investigation and prosecution of hate crimes; and
- Review how we collect and use hate crime data and statistics.
Ohio Treatment Facilities and Corporate Parent Agree to Pay $10.25 Million to Resolve False Claims Act Allegations of Kickbacks to Patients and Unnecessary AdmissionsRead the Press Release
Oglethorpe Inc. and its three Ohio facilities, Cambridge Behavioral Hospital, Ridgeview Behavioral Hospital, and The Woods at Parkside, will pay $10.25 million to resolve alleged violations of the False Claims Act for improperly providing free long-distance transportation to patients and admitting patients at Cambridge and Ridgeview who did not require inpatient psychiatric treatment, resulting in the submission of false claims to the Medicare program.
Oglethorpe Inc. is a Florida company that operates two Ohio inpatient psychiatric hospitals, Cambridge and Ridgeview, and one Ohio substance abuse treatment facility, Parkside. The settlement was based on analysis of the companies’ ability to pay after review of their financial condition.
This settlement resolves allegations that, between August 2013 and June 2019, defendants provided free long-distance van transportation to patients to induce them to seek treatment at the defendants’ facilities, in violation of the Anti-Kickback Statute, and then submitted claims for services provided to these patients, in violation of the False Claims Act. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute give rise to liability under the False Claims Act. The government also alleged that Oglethorpe, Cambridge, and Ridgeview submitted, or caused to be submitted, false claims to Medicare for medically unnecessary inpatient psychiatric admissions and associated services at the two hospitals.
“Kickbacks to patients can result in unnecessary services that serve neither the patients nor our federal health care programs,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing unlawful remunerations in whatever form they occur to safeguard taxpayer funded health care benefits.”
“Submitting false claims by billing for unnecessary inpatient psychiatric hospitalizations is not only inappropriate – it’s illegal,” said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. “This settlement shows that the United States will hold accountable those who seek to profit by flouting proper standards of medical practice and appropriate review and submission of Medicare billings.”
“Kickbacks in the form of free van rides and the false claims subsequently submitted to federal health care programs come at a tremendous cost to patients and the taxpayers,” said Special Agent in Charge Lamont Pugh for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue to work with our law enforcement partners to pursue and hold accountable entities who engage in such acts.”
Contemporaneous with the settlement, Oglethorpe entered into a corporate integrity agreement (CIA) with HHS-OIG. Among other things, the CIA requires that for the next five years Oglethorpe must retain an Independent Review Organization to review its claims to Medicare and Medicaid.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Darlene Baker, a former client advocate at Cambridge. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam case is captioned United States ex rel. Baker v. Oglethorpe, Inc., et al., No. 2:16-cv-1040 (S.D. Ohio).
The resolutions obtained in this matter were the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Ohio; and HHS-OIG.
The matter was investigated by Trial Attorney Christopher Wilson of the Civil Division and Assistant U.S. Attorney Andrew Malek.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Construction Company Owners Pleaded Guilty to Defrauding Federal Program Intended for Service-Disabled Veteran-Owned Small BusinessesRead the Press Release
Two Texas construction company owners have pleaded guilty in a long-running scheme to defraud the United States.
Michael Wibracht of San Antonio, Texas, the former owner of several companies in the construction industry, conspired to defraud the United States in order to obtain valuable government contracts under programs administered by the U.S. Small Business Administration (SBA) for which neither his nor his co-conspirators’ companies were eligible. One co-conspirator, Ruben Villarreal, also of San Antonio, pleaded guilty on Nov. 20, 2020, to participating in the same conspiracy.
“For many years, this conspiracy undermined the integrity of the federal procurement process,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice Antitrust Division. “This conduct robbed opportunities from honest businesses, especially those owned by historically disadvantaged individuals and service-disabled veterans.”
According to court documents filed in the Western District of Texas in San Antonio, Wibracht, Villarreal, and other co-conspirators conspired to defraud the United States by interfering with the function of the SBA and fraudulently obtaining money from agencies of the United States as early as 2004 continuing at least through 2017. As part of this scheme, the conspirators installed Villarreal, a service-disabled veteran, as the ostensible owner of a general construction company held out as a Service-Disabled Veteran-Owned Small Business (SDVOSB). Wibracht and other co-conspirators, however, exercised disqualifying financial and operational control over the construction company. The conspirators concealed that control in order to secure over $250 million in government contracts that were “set aside” for SDVOSBs in order to benefit their larger, non-qualifying businesses. The SBA administers the SDVOSB program, which is designed to increase the number of government contracts awarded to small businesses owned and controlled by service-disabled veterans. To qualify as an SDVOSB, a company, among other things, must be owned and controlled by a service-disabled veteran.
“Conspiring to fraudulently gain access to federal contracts set aside for small businesses owned and operated by disadvantaged individuals or service-disabled veterans is unacceptable,” said Inspector General Hannibal “Mike” Ware. “The guilty pleas send a strong message that those responsible will be held accountable. I want to thank the Antitrust Division and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“These plea agreements showcase the unique expertise of the U.S. Army CID’s specialized unit, the Major Procurement Fraud Unit,” said Special Agent in Charge Ray A. Rayos of the Southwest Fraud Field Office of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. “Together, with our partner agencies and the Department of Justice Antitrust Division, those individuals responsible for engaging in a complex and long running scheme to defraud the United States government have been brought to justice.”
“The General Services Administration Office of Inspector General is committed to working with its law enforcement partners and the Department of Justice Antitrust Division to ensure that individuals and companies who fraudulently obtain contracts meant for legitimate small and disadvantaged businesses are investigated and prosecuted to the full extent of the law,” said Inspector General Carol Ochoa of the General Services Administration.
“The defendants conspired to fraudulently obtain multi-million dollar government contracts under a program designed to benefit service-disabled veterans,” said Inspector General Michael J. Missal of the Department of Veterans Affairs. “These guilty pleas send a clear message that individuals and companies who defraud the government contracting process for service-disabled veterans will be held accountable. The VA OIG thanks the Department of Justice Antitrust Division and our law enforcement partners for their joint efforts to achieve justice in this case.”
“This outcome is a testament to the commitment of the Defense Criminal Investigative Service (DCIS) and our Law Enforcement partners in safeguarding the integrity to the DoD contracting process,” said Acting Special Agent-in-Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS will utilize all available resources to pursue allegations of fraud and corruption, bringing to justice those who seek to enrich themselves through the exploitation of Small Business Administration programs designed to help disadvantaged groups.”
Wibracht pleaded guilty to one count of conspiring to commit wire fraud and defraud the United States. Villarreal pleaded guilty to conspiracy to defraud the United States and is scheduled to be sentenced before Judge Xavier Rodriguez on June 23, 2021. Both men face a maximum penalty of five years in prison and a $250,000 fine. The maximum fine for an individual may be increased to twice the gain derived from the crime, or twice the loss suffered by victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The SBA Office of Inspector General, Army Criminal Investigation Command’s Major Procurement Fraud Unit, General Services Administration Office of Inspector General, Department of Veterans Affairs Office of Inspector General, and DCIS are investigating the case, with assistance from the U.S. Attorney’s Office for the Western District of Texas and the Army Audit Agency.
The Department of Justice Antitrust Division’s Washington Criminal II Section is prosecuting the case. Special thanks are extended to Assistant U.S. Attorney William F. Lewis, Jr. of the U.S. Attorney’s Office for the Western District of Texas.
Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement and grant and program funding at all levels of government — Federal, state, and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.
Justice Department Warns About Fake Unemployment Benefit WebsitesRead the Press Release
The Department of Justice has received reports that fraudsters are creating websites mimicking unemployment benefit websites, including state workforce agency (SWA) websites, for the purpose of unlawfully capturing consumers’ personal information.
To lure consumers to these fake websites, fraudsters send spam text messages and emails purporting to be from an SWA and containing a link. The fake websites are designed to trick consumers into thinking they are applying for unemployment benefits and disclosing personally identifiable information and other sensitive data. That information can then be used by fraudsters to commit identity theft.
Unless from a known and verified source, consumers should never click on links in text messages or emails claiming to be from an SWA offering the opportunity to apply for unemployment insurance benefits. Instead, anyone needing to apply for unemployment benefits should go to an official SWA website, a list of which can be found at: https://www.careeronestop.org/localhelp/unemploymentbenefits/unemployment-benefits.aspx.
Schemes that use links embedded in unsolicited text messages and emails in attempts to obtain personally identifiable information are commonly referred to as phishing schemes. Phishing messages may look like they come from government agencies, financial intuitions, shipping companies, and social media companies, among many others. Carefully examine any message purporting to be from a company and do not click on a link in an unsolicited email or text message. Remember that companies generally do not contact you to ask for your username or password. When in doubt, contact the entity purportedly sending you the message, but do not rely on any contact information in the potentially fraudulent message.
If you receive a text message or email claiming to be from an SWA and containing a link or other contact information, please report the communication to the National Center for Disaster Fraud (NCDF) by calling 866-720-5721 or using the NCDF Web Complaint Form found at: www.justice.gov/disaster-fraud.
If you believe you may have entered information into a fraudulent website, resources on how to protect your information can be found at: www.identitytheft.gov.
To learn more about identifying and protecting yourself from phishing attempts, go to: https://www.consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams or https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/spoofing-and-phishing.
Further information about the SWA-imposter scheme, and other major scams targeting American consumers, can be found at the Justice Department’s Transnational Elder Fraud Strike Force website: https://www.justice.gov/civil/consumer-protection-branch/transnational-elder-fraud-strike-force.
This alert is provided by the Justice Department’s National Unemployment Insurance Fraud Task Force (NUIFTF) and the Consumer Protection Branch of the department’s Civil Division. Members of NUIFTF include: Department of Labor Office of Inspector General, U.S. Secret Service, Homeland Security Investigations, IRS-Criminal Investigation, U.S. Postal Inspection Service, Social Security Administration Office of Inspector General, and FDIC Office of Inspector General.
Find out more about the NUIFTF at: /media/1093226/dl?inline.
For more information about the Consumer Protection Branch, visit http://www.justice.gov/civil/consumer-protection-branch.
Federal Court Orders New York Company and its Operators to Stop Distributing Adulterated Dietary SupplementsRead the Press Release
A federal court permanently enjoined a New York company and its operators from manufacturing or distributing dietary supplements unless and until they comply with the law.
A complaint filed May 23, 2019, alleged that Confidence USA Inc. company president Helen Chian, and company manager Jim Chao violated the Federal Food, Drug, and Cosmetic Act (FDCA) by distributing adulterated dietary supplements.
The complaint alleged that inspections conducted by the U.S. Food and Drug Administration (FDA) in 2016, 2017, and 2018 showed that the defendants repeatedly failed to verify that their finished dietary supplements met product specifications for identity, purity, strength, composition, and contamination limits, and failed to verify the identity of each dietary ingredient used in the manufacture of the supplements. The Justice Department filed the complaint in U.S. District Court for the Eastern District of New York at the request of the FDA.
“American consumers expect dietary supplements to contain the ingredients stated on the label, in the stated amounts,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department will continue to work with the FDA to ensure that dietary supplement manufacturers follow the law.”
According to the complaint, the defendants made and distributed more than 50 dietary supplements under brand names that include Confidence USA, American Best, USA Natural and The Herbal Store.
“The millions of Americans who take dietary supplements trust that they are unadulterated and meet product specifications under good manufacturing practice regulations,” said Acting U.S. Attorney Seth D. DuCharme for the Eastern District of New York. “The injunctive relief obtained by the United States in this case protects consumers by requiring defendants to follow the law and adhere to the regulations in manufacturing and distributing dietary supplements.”
Dietary supplements not prepared, packed and held in conformance with current good manufacturing practices regulations are adulterated in violation of the FDCA. The FDA issued a warning letter to Confidence USA in 2011 regarding deficiencies with the company’s manufacturing practices, and U.S. Marshals previously seized certain Confidence USA products in connection with a 2012 complaint alleging the products were adulterated.
“Consumers deserve access to dietary supplements that are manufactured to assure their quality,” said Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “If a dietary supplement company repeatedly fails to comply with basic good manufacturing practice requirements, the public cannot trust that their products are what they say they are. The FDA will continue to protect American consumers by taking appropriate actions necessary when companies violate the law.”
Trial Attorney Raquel Toledo of the Department of Justice Civil Division's Consumer Protection Branch and Assistant U.S. Attorney Robert Schumacher from the U.S. Attorney’s Office for the Eastern District of New York handled the case, with assistance from Associate Chief Counsel for Enforcement Jennifer Argabright of the FDA’s Office of General Counsel.
For information on the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Eastern District of New York, visit https://www.justice.gov/usao-edny.
North Carolina Return Preparer Pleads Guilty to Tax Fraud SchemeRead the Press Release
A North Carolina return preparer pleaded guilty today to conspiring to defraud the United States.
According to court documents, Hildares Kinkesha Parker-Greene managed a tax return preparation business located in Kinston, North Carolina, from at least January 2016 through March 2016. Parker-Greene conspired with another return preparer to fraudulently inflate clients’ tax refunds by claiming false wages, federal income tax withholdings, and dependents. This fraudulent conduct caused clients to receive refunds to which they were not entitled.
Additionally, between 2017 and 2018, Parker-Greene operated a tax preparation business out of her home and continued to prepare false returns for clients. In total, the false returns prepared by Parker-Greene and her co-conspirator sought to defraud the IRS of more than $550,000.
Parker-Greene is scheduled to be sentenced before U.S. District Court Judge James C. Dever III and faces a statutory maximum sentence of five years in prison. She also faces a period of supervised release, restitution and monetary penalties. Judge Dever will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Michael Jones and William Guappone of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Justice Department Resolves Antitrust Case Against Leading Central Pennsylvania Health Care ProvidersRead the Press Release
The Department of Justice announced today that it has reached a settlement with Geisinger Health (Geisinger) and Evangelical Community Hospital (Evangelical) that will resolve the department’s ongoing civil antitrust litigation challenging Geisinger’s partial acquisition of Evangelical. Among other terms, the settlement requires Geisinger to cap its ownership interest in Evangelical at a 7.5% passive interest and eliminates additional entanglements between the two competing hospitals.
On Aug. 5, 2020, the Department of Justice Antitrust Division filed a civil antitrust lawsuit challenging Geisinger’s partial acquisition of Evangelical. The department alleged that Geisinger and Evangelical are close competitors for inpatient general acute-care hospital services for patients in a six-county area in central Pennsylvania, where the two hospital systems together account for approximately 70% of the market.
“Now, more than ever, Americans need access to quality healthcare services at affordable prices,” said Richard A. Powers, Acting Assistant Attorney General of the Antitrust Division. “The anticompetitive agreement between Geisinger and Evangelical reduced their incentives to compete on the price, quality, and availability of high-quality healthcare services, which would have harmed patients in central Pennsylvania. Today’s settlement ensures that those patients will continue to benefit from robust competition between Geisinger and Evangelical.”
According to the complaint, the partial-acquisition agreement created significant entanglements between the hospitals, reducing their incentives to compete against each other and increasing the likelihood of harmful coordination. For example, Geisinger was slated to obtain a 30% ownership interest in Evangelical in exchange for providing $100 million to Evangelical for use on projects approved by Geisinger. These terms would have set Geisinger up as a critical source of funding for Evangelical for the foreseeable future and provided opportunities for Geisinger to influence strategic decisions of its competitor. The agreement also gave Geisinger rights of first offer and first refusal for certain transactions and joint ventures, which, in conjunction with other provisions in the agreement, would have made it difficult for Evangelical to partner with other healthcare entities. The department alleged that the provisions of the partial-acquisition agreement functioned together to substantially lessen competition and unreasonably restrain trade in the market for inpatient hospital services in central Pennsylvania.
If approved by the court, the proposed settlement, filed today in the U.S. District Court for the Middle District of Pennsylvania, would resolve the competitive harm alleged in the complaint. The terms of the settlement are intended to prevent Geisinger from exercising any form of control or influence over Evangelical and to restore the defendants’ incentives to compete with each other on both quality and price. In addition to capping Geisinger’s ownership interest in Evangelical, the proposed settlement restricts Geisinger from increasing its ownership interest in Evangelical, making any loan or providing any line of credit to Evangelical, or exerting any control over Evangelical’s expenditure of funds. Defendants are also each required to implement an antitrust compliance program.
While fully addressing the harm threatened by the partial-acquisition agreement, the settlement allows procompetitive aspects of defendants’ proposal to move forward. Specifically, the settlement permits Evangelical to obtain new electronic health records information technology systems and related IT support from Geisinger, enabling Evangelical to upgrade its electronic health records systems and improve the delivery of care to patients in central Pennsylvania. The settlement also requires Evangelical to use the funds associated with Geisinger’s passive investment for specific projects that will benefit patients and the community.
Geisinger is an integrated regional healthcare provider of hospital and physician services in Pennsylvania. It operates 12 hospitals as well as urgent-care centers and outpatient facilities, and owns physician practices throughout Pennsylvania. Its flagship hospital, Geisinger Medical Center, is a 574-bed hospital located in Danville, Pennsylvania. Geisinger Health’s annual revenue in 2019 was approximately $7.1 billion.
Evangelical Community Hospital is a 132-bed independent community hospital in Lewisburg, Pennsylvania. It also operates an urgent-care center and several other outpatient facilities, and owns a number of physician practices in central Pennsylvania. Its annual revenue in 2019 was approximately $259 million.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Eric Welsh, Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Middle District of Pennsylvania may enter the final judgment upon finding it is in the public interest.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Two Men Charged in Ecuadorian Bribery and Money Laundering SchemeRead the Press Release
Criminal complaints have been unsealed charging two Ecuadorian citizens for their alleged roles in a bribery and money laundering scheme involving Ecuador’s public police pension fund (ISSPOL).
John Luzuriaga Aguinaga, 52, and Jorge Cherrez Miño, 46, were each charged with one count of conspiracy to commit money laundering in complaints filed in the Southern District of Florida on Feb. 10 and Feb. 19, respectively. Luzuriaga was arrested Feb. 26 and had his initial appearance Monday. An arrest warrant has been issued for Cherrez who is believed to be in Mexico.
As alleged in the complaints, between approximately 2014 and 2020, Cherrez, an investment advisor, paid more than $2.6 million in bribes to ISSPOL officials, including at least approximately $1,397,066 to Luzuriaga, ISSPOL’s Risk Director and a member of ISSPOL’s Investment Committee, in order to obtain and retain investment business from ISSPOL. Cherrez allegedly obtained approximately $65 million in profits from one aspect of the scheme.
According to the complaint, Cherrez received payments from the ISSPOL investment business in an account in the United States, used Florida-based companies and bank accounts to pay the bribes, and took acts in furtherance of the bribery scheme while in the Southern District of Florida. Further, to conceal and promote the bribery scheme, Cherrez and Luzuriaga allegedly laundered the corrupt proceeds through Florida-based companies and bank accounts, including numerous U.S. investment fund companies incorporated in Florida with Cherrez as an officer or director.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. office, and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami office made the announcement.
This case is being investigated by HSI and IRS-CI, jointly under the auspices of the Global Illicit Financial Team. Trial Attorneys Katherine Raut and Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case. Southern District of Florida Assistant United States Attorney Annika Miranda is handling asset forfeiture.
The Justice Department’s Office of International Affairs has provided significant assistance in this case.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.
The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
Justice Department Settles Title VII Lawsuit Against Tallahatchie County, Mississippi, Alleging Intentional Discrimination Based on RaceRead the Press Release
WASHINGTON – The Department of Justice announced today that it has reached a settlement agreement resolving the United States’ claims that Tallahatchie County, Mississippi, and the Tallahatchie County sheriff in his official capacity (collectively, Tallahatchie County), intentionally discriminated against Black deputy sheriffs based on their race, by paying them less than white deputy sheriffs, in violation of Title VII of the Civil Rights Act of 1964.
“Under Title VII, it is illegal to pay employees less because of their race,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “Black deputy sheriffs in Tallahatchie County work hard to protect members of their community and they deserve equal treatment in every aspect of their employment, especially their paychecks. This settlement will ensure pay policies that promote equal employment opportunities for these public safety professionals.”
Under the terms of the settlement agreement, Tallahatchie County will pay four Black deputy sheriffs back-pay compensation for the unequal pay rates that they have endured. Tallahatchie County will also ensure that pay rates are reviewed and adjusted, as necessary, to ensure no future discrimination. Tallahatchie County will implement a new pay policy to be reviewed by the Department of Justice and will put in place procedures to ensure transparency in pay for its entire workforce of deputy sheriffs.
This lawsuit stemmed from an investigation conducted by the Equal Employment Opportunity Commission (EEOC) during which the Commission found that there was reasonable cause to believe that violations of Title VII occurred against a class of Black deputy sheriffs for which disparities in pay were racially motivated. After unsuccessful conciliation efforts by the EEOC, the EEOC referred the charges to the Justice Department.
The full and fair enforcement of Title VII is a top priority of the Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
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El Distrito Escolar del Condado de Charleston Acuerda Facilitar El Acceso Lingüístico a Padres Cuyo Dominio del Inglés es LimitadoRead the Press Release
El Departamento de Justicia anunció hoy su acuerdo de conciliación con el Distrito Escolar del Condado de Charleston, el cual resuelve su investigación de quejas que acusaban al distrito escolar de no comunicar información esencial a miles de padres hispanoparlantes cuyo dominio del inglés es limitado («LEP», por sus siglas en inglés), lo que denegó el acceso pleno e igualitario de sus hijos a los programas y servicios educativos del Distrito. La División de Derechos Civiles y la Fiscalía Federal para el Distrito de Carolina del Sur llevaron a cabo la investigación en virtud del Título VI de la ley de Derechos Civiles de 1964 y la ley de Igualdad de Oportunidades Educativas de 1974.
La investigación de Estados Unidos halló que, en muchas ocasiones, el Distrito no usa intérpretes cualificados para comunicarse con padres y tutores legales hispanoparlantes LEP, incluso cuando su necesidad de un intérprete esté documentada o que de otra forma sea evidente. Por otra parte, Estados Unidos halló que el Distrito no traduce información escrita esencial al español de una manera consistente, y pide a padres que solamente pueden comunicarse en español, que tomen decisiones importantes sobre programas y servicios escolares sin explicarles las opciones de una forma adecuada, en un idioma que entienden.
«Para el bien del éxito de los estudiantes en la escuela y más allá, es fundamental empoderar a los padres y tutores legales con la información que necesitarán para tomar parte de una forma significativa en la educación de sus hijos. Debemos seguir luchando por asegurar que todos los padres tengan esta oportunidad, independientemente de su nacionalidad de origen o competencia en el idioma inglés», declaró Pamela S. Karlan, la Principal Fiscal General Auxiliar Adjunta de la División de Derechos Civiles. «Nos alienta el compromiso y la cooperación por parte del Distrito Escolar del Condado de Charleston y estamos deseando seguir trabajando con el Distrito para implementar este acuerdo y cumplir con su compromiso a tratar a todos los estudiantes y padres del Distrito por igual».
«Se debe felicitar al Distrito Escolar del Condado de Charleston por su colaboración en esta investigación y por su compromiso con sus estudiantes, padres y tutores legales», afirmó el Fiscal Federal en funciones para el Distrito de Carolina del Sur, M. Rhett DeHart. «La Fiscalía Federal está deseando seguir colaborando con el distrito escolar mientras intente servir como ejemplo para otros distritos en lo que se refiere a la provisión plena e igualitaria de acceso a información».
El Distrito cooperó en cada paso de la investigación y se comprometió a mejorar sus prácticas mediante una revisión de sus políticas y el desarrollo profesional. El acuerdo de conciliación requiere que el Distrito use intérpretes y traductores cualificados para comunicarse con padres acerca de asuntos que son esenciales a la educación de sus hijos y que deje de depender de miembros familiares, personal no capacitado y estudiantes para tales fines. Asimismo, el Distrito brindará a padres LEP acceso a documentos e información sobre las ofertas de distintos programas, entre ellos los servicios de educación especial, en un idioma que entienden. Más aún, el acuerdo requiere que el Distrito preste estos servicios de traducción e interpretación a padres y tutores legales LEP en cada una de sus 80 escuelas y programas.
Conforme al acuerdo, el Distrito:
- Implementará políticas y procedimientos eficaces y capacitará a sus empleados para que las escuelas puedan identificar correctamente y comunicarse de modo significativo con padres y tutores legales LEP;
- Asegurará que todos los padres y tutores legales, a sabiendas, den su consentimiento para programas y servicios educativos para sus hijos o que los renuncien; y
- Se comunicará con padres y tutores legales LEP antes de celebrar reuniones relacionadas con la educación especial para notificarles de su derecho a tener un intérprete cualificado en la reunión y una versión traducida de documentos relacionados con la educación especial, sin costo alguno al padre/tutor legal.
La ejecución del Título VI de la ley de Derechos Civiles de 1964 y la ley de Igualdad de Oportunidades Educativas de 1974 es una de las prioridades principales de la División de Derechos Civiles del Departamento de Justicia. Para más información sobre la División de Derechos Civiles del Departamento de Justicia, puede visitar su sitio web en www.justice.gov/crt. Para más información sobre la labor de la Sección de Oportunidades Educativas, vaya a https://www.justice.gov/crt/educational-opportunities-section. Miembros del público también pueden informar de posibles vulneraciones de derechos civiles en https://civilrights.justice.gov/report/.
Download Acuerdo Charleston.pdf
El Distrito Escolar del Condado de Charleston Acuerda Facilitar El Acceso Lingüístico a Padres Cuyo Dominio del Inglés es LimitadoRead the Press Release
El Departamento de Justicia anunció hoy su acuerdo de conciliación con el Distrito Escolar del Condado de Charleston, el cual resuelve su investigación de quejas que acusaban al distrito escolar de no comunicar información esencial a miles de padres hispanoparlantes cuyo dominio del inglés es limitado («LEP», por sus siglas en inglés), lo que denegó el acceso pleno e igualitario de sus hijos a los programas y servicios educativos del Distrito. La División de Derechos Civiles y la Fiscalía Federal para el Distrito de Carolina del Sur llevaron a cabo la investigación en virtud del Título VI de la ley de Derechos Civiles de 1964 y la ley de Igualdad de Oportunidades Educativas de 1974.
La investigación de Estados Unidos halló que, en muchas ocasiones, el Distrito no usa intérpretes cualificados para comunicarse con padres y tutores legales hispanoparlantes LEP, incluso cuando su necesidad de un intérprete esté documentada o que de otra forma sea evidente. Por otra parte, Estados Unidos halló que el Distrito no traduce información escrita esencial al español de una manera consistente, y pide a padres que solamente pueden comunicarse en español, que tomen decisiones importantes sobre programas y servicios escolares sin explicarles las opciones de una forma adecuada, en un idioma que entienden.
«Para el bien del éxito de los estudiantes en la escuela y más allá, es fundamental empoderar a los padres y tutores legales con la información que necesitarán para tomar parte de una forma significativa en la educación de sus hijos. Debemos seguir luchando por asegurar que todos los padres tengan esta oportunidad, independientemente de su nacionalidad de origen o competencia en el idioma inglés», declaró Pamela S. Karlan, la Principal Fiscal General Auxiliar Adjunta de la División de Derechos Civiles. «Nos alienta el compromiso y la cooperación por parte del Distrito Escolar del Condado de Charleston y estamos deseando seguir trabajando con el Distrito para implementar este acuerdo y cumplir con su compromiso a tratar a todos los estudiantes y padres del Distrito por igual».
«Se debe felicitar al Distrito Escolar del Condado de Charleston por su colaboración en esta investigación y por su compromiso con sus estudiantes, padres y tutores legales», afirmó el Fiscal Federal en funciones para el Distrito de Carolina del Sur, M. Rhett DeHart. «La Fiscalía Federal está deseando seguir colaborando con el distrito escolar mientras intente servir como ejemplo para otros distritos en lo que se refiere a la provisión plena e igualitaria de acceso a información».
El Distrito cooperó en cada paso de la investigación y se comprometió a mejorar sus prácticas mediante una revisión de sus políticas y el desarrollo profesional. El acuerdo de conciliación requiere que el Distrito use intérpretes y traductores cualificados para comunicarse con padres acerca de asuntos que son esenciales a la educación de sus hijos y que deje de depender de miembros familiares, personal no capacitado y estudiantes para tales fines. Asimismo, el Distrito brindará a padres LEP acceso a documentos e información sobre las ofertas de distintos programas, entre ellos los servicios de educación especial, en un idioma que entienden. Más aún, el acuerdo requiere que el Distrito preste estos servicios de traducción e interpretación a padres y tutores legales LEP en cada una de sus 80 escuelas y programas.
Conforme al acuerdo, el Distrito:
- Implementará políticas y procedimientos eficaces y capacitará a sus empleados para que las escuelas puedan identificar correctamente y comunicarse de modo significativo con padres y tutores legales LEP;
- Asegurará que todos los padres y tutores legales, a sabiendas, den su consentimiento para programas y servicios educativos para sus hijos o que los renuncien; y
- Se comunicará con padres y tutores legales LEP antes de celebrar reuniones relacionadas con la educación especial para notificarles de su derecho a tener un intérprete cualificado en la reunión y una versión traducida de documentos relacionados con la educación especial, sin costo alguno al padre/tutor legal.
La ejecución del Título VI de la ley de Derechos Civiles de 1964 y la ley de Igualdad de Oportunidades Educativas de 1974 es una de las prioridades principales de la División de Derechos Civiles del Departamento de Justicia. Para más información sobre la División de Derechos Civiles del Departamento de Justicia, puede visitar su sitio web en www.justice.gov/crt. Para más información sobre la labor de la Sección de Oportunidades Educativas, vaya a https://www.justice.gov/crt/educational-opportunities-section. Miembros del público también pueden informar de posibles vulneraciones de derechos civiles en https://civilrights.justice.gov/report/.
Charleston County School District Agrees to Provide Language Access for Limited English Proficient ParentsRead the Press Release
Today the Justice Department announced a settlement agreement with the Charleston County School District to resolve its investigation into complaints that the school district failed to communicate essential information to thousands of Spanish-speaking, limited English proficient (LEP) parents, denying their children full and equal access to the district’s education programs and services. The Civil Rights Division and the U.S. Attorney’s Office for the District of South Carolina conducted the investigation under Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974.
The United States’ investigation found that the district often fails to use qualified interpreters to communicate with Spanish-speaking, LEP parents and guardians, even when their need for an interpreter is documented or otherwise evident. The United States also found that the district does not consistently translate essential written information into Spanish, and asks parents who can only communicate in Spanish to make important decisions about school programs and services without explaining the options in a language they understand.
“Empowering parents and guardians with the information necessary to meaningfully participate in their children’s education is critical to students’ success in school and beyond. We must continue the work to ensure that all parents have this opportunity, regardless of national origin or English proficiency.” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “We are encouraged by the Charleston County School District’s commitment and cooperation and look forward to continuing to work with the district to implement this agreement and fulfill its promise of equal treatment for all of the district’s students and their parents.”
“The Charleston County School District should be commended for its cooperation with this investigation and for its commitment to its students, parents and guardians,” said Acting U.S. Attorney M. Rhett DeHart for the District of South Carolina. “The U.S. Attorney’s Office looks forward to continue working with the school district, as it strives to be a model for other districts in providing full and equal access to information.”
The district cooperated at every stage of the investigation and committed to improving its practices through revised policies and professional development. The settlement agreement requires the district to use qualified interpreters and translators to communicate with parents about matters essential to their children’s education and to cease relying on family members, untrained staff and students for such purposes. The district will also provide LEP parents with access to documents and information about program offerings, including special education services, in a language they understand. The agreement requires the district to provide these interpretation and translation services for LEP parents and guardians at each of its 80 schools and programs.
Under the agreement, the district will:
- Implement effective policies and procedures and provide employees with training so that schools properly identify and meaningfully communicate with LEP parents and guardians;
- Ensure that all parents and guardians knowingly consent to or decline educational programming and services for their children; and
- Contact LEP parents and guardians prior to holding special education-related meetings to notify them of the right to have a qualified interpreter at the meeting and translated special-education related documents, at no cost to the parent/guardian.
The enforcement of Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
INTERPOL Washington Assists the Republic of Maldives in Enhancing its Border Security Capabilities.Read the Press Release
INTERPOL Washington—the U.S. National Central Bureau (USNCB)—has partnered with the U.S. Department of State to significantly increase the capacity of The Republic of Maldives to screen against the illicit international travel of transnational criminals and terrorists. Under the State Department funded Project TERMINUS, on February 26, 2021, the Maldives Government implemented an automated system for uploading its stolen and lost travel documents into INTERPOL’s Stolen and Lost Travel Documents (SLTD) database, a searchable repository containing more than 100 million records that can be queried by law enforcement and border security authorities in all 194 INTERPOL member countries. This automation was made possible by hardware and software built, provided and installed remotely by the USNCB.
The SLTD Uploader software solution is a USNCB custom design which allows both the Maldives Immigration Service and the National Central Bureau (NCB) in Malé, to connect directly to INTERPOL’s SLTD database.
This accomplishment is the culmination of more than three months of active collaboration between the USNCB, the State Department, INTERPOL, and the Government of Maldives, all of which was conducted virtually.
“INTERPOL Washington is pleased to continue our partnership with the U.S. Department of State to develop and deploy the advanced tools and technology that can assist law enforcement partners worldwide in the fight against transnational crime and terrorism. The assistance being provided through Project TERMINUS contributes to both the individual and collective ability of all INTERPOL member countries, including the United States, to more effectively secure their borders against these transnational threats” said Acting Director Michael Hughes.
Established in 2018, Project TERMINUS is a partnership between the USNCB’s Border Security Division and the State Department’s Bureau of Counterterrorism. This mission of Project TERMINUS is to extend INTERPOL's I-24/7 secure, global police-to-police communications system in high risk areas and select host nations globally.
In addition to The Maldives, Partner Nations currently receiving assistance under Project TERMINUS include Indonesia, Malaysia, and Nigeria.
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A component of the U.S. Department of Justice, the USNCB is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, the USNCB serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.Department of Justice Issues Statement Announcing Decision to Appeal Terkel v. CDCRead the Press Release
Brian M. Boynton, Acting Assistant Attorney General for the Justice Department's Civil Division, released the following statement:
"The CDC’s eviction moratorium, which Congress extended last December, protects many renters who cannot make their monthly payments due to job loss or health care expenses. By preventing people from becoming homeless or having to move into more-crowded housing, the moratorium helps to slow the spread of COVID-19.
The Department of Justice respectfully disagrees with the February 25 decision of the district court in Terkel v. CDC that the CDC’s eviction moratorium exceeds Congress’ powers under the Commerce Clause and the Necessary and Proper Clause, and the Department has appealed that decision. The decision, however, does not extend beyond the particular plaintiffs in that case, and it does not prohibit the application of the CDC’s eviction moratorium to other parties. For other landlords who rent to covered persons, the CDC’s eviction moratorium remains in effect."
법무부 민권부 선임 부차관보 파멜라 칼란 성명서Read the Press Release
Download Karlan Statement - Korean
民权司首席副助理司法部长 帕米拉·卡兰（Pamela Karlan）的声明Read the Press Release
Download Karlan Statement - Chinese (Simplified)
تصریح لبامیلا كارلان النائبة الأولى المساعدة لوزیر العدل بقسم الحقوق المدنیةRead the Press Release
Download Karlan Statement - Arabic
United Airlines to Pay $49 Million to Resolve Criminal Fraud Charges and Civil ClaimsRead the Press Release
United Airlines Inc. (United), the world’s third largest airline, has agreed to pay over $49 million to resolve criminal charges and civil claims relating to fraud on postal service contracts for transportation of international mail.
United entered into a non-prosecution agreement (NPA) with the Criminal Division’s Fraud Section and agreed to pay $17,271,415 in criminal penalties and disgorgement to resolve a criminal investigation into a fraud scheme perpetrated by former employees of United’s Cargo Division in connection with United’s execution of contracts to deliver mail internationally on behalf of the U.S. Postal Service (USPS). Separately, United has entered into a False Claims Act settlement with the Civil Division’s Commercial Litigation Branch, Fraud Section, for related conduct, under which it is obligated to pay $32,186,687.
“United was entrusted by the U.S. Postal Service with fulfilling a critical government function – the transportation of U.S. mail abroad,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Instead of performing this duty with transparency, United defrauded the U.S. Postal Service by providing falsified parcel delivery information over a period of years and accepting millions of dollars of payments to which the company was not entitled. Today’s resolution emphasizes that companies that defraud the government – no matter the context, contract, or federal program – will be held accountable.”
“Companies that do business with the United States must adhere to their contractual obligations,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will pursue those who knowingly fail to provide the government with the goods or services for which it has paid and that it is entitled to receive.”
“The USPS contracts with commercial airlines for the safeguarding and timely delivery of U.S. Mail to foreign posts, including the mail sent to our soldiers deployed to foreign operating bases,” said Director Steven Stuller of the U.S. Postal Service (USPS) Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of contractual non-compliance within the mail delivery process, including the falsification of delivery information. Our special agents worked hand-in-hand with the Department of Justice to help ensure a reasonable resolution and we applaud the exceptional work done by the investigative and legal teams.”
According to the criminal NPA and civil settlement agreement, United entered into International Commercial Air (ICAIR) contracts with USPS, by which United transported U.S. mail internationally on behalf of USPS. Pursuant to these ICAIR contracts, United was obligated to provide bar code scans of mail receptacles to USPS when United took possession of the mail receptacles and when the receptacles were delivered to the foreign postal administration or other intended recipient. United was entitled to full payment under these ICAIR contracts only if accurate mail scans were provided and mail was timely delivered to the foreign postal administration or intended recipient.
Between 2012 and 2015, United engaged in a scheme to defraud USPS by submitting false delivery scan data to make it appear that United and partner airlines with which it worked were complying with the ICAIR requirements, when in fact they were not. Instead of providing USPS accurate delivery scans based on the movement of the mail, United submitted automated delivery scans based on aspirational delivery times. These automated scans did not correspond to the actual movement of the mail, as mandated by the contracts. Because this scan data was not tethered to the actual delivery of mail to the foreign recipients, payment was inappropriate under the ICAIR contracts. Through this data automation scheme, United secured millions of dollars in payments from the USPS to which United was not entitled under the ICAIR contacts.
United further admitted that it concealed problems related to scanning and mail movements that, if known, would have subjected United to financial penalties under the ICAIR contracts. Certain individuals at United worked to conceal United’s automation efforts from the USPS, as they knew that the data being transmitted was fabricated. These individuals further knew that the transmission of false data violated the terms of the ICAIR contracts. The attempts to hide the automation practices included efforts to revise the falsified delivery times to make the automated scans appear less suspicious to USPS.
As part of the criminal resolution, United has agreed to continue to cooperate with the Criminal Division’s Fraud Section and to report any evidence or allegation of a violation of U.S. fraud laws. United has further agreed to strengthen its compliance program and to specific reporting requirements, which require United to submit yearly reports to the Fraud Section regarding the status of its remediation and implementation of United’s compliance program and internal controls, policies, and procedures aimed at deterring and detecting violations of U.S. fraud laws in connection with government contracting.
The Criminal Division’s Fraud Section reached this resolution with United based on a number of factors, including the nature and seriousness of the offense conduct; United’s failure to timely and voluntarily self‑disclose the offense conduct to the department; and United’s prior history, including a 2016 non-prosecution agreement relating to potential criminal bribery or corruption violations arising out of United’s establishment and operation of a non-stop route between Newark Liberty International Airport in New Jersey and Columbia Metropolitan Airport in South Carolina. In addition, United, responding to the Fraud Section’s requests, cooperated with the Fraud Section’s investigation by collecting, organizing, and producing voluminous documents, assisting in making employees available to be interviewed, and making a factual presentation to the Fraud Section. The Fraud Section did not require United to pay a victim compensation payment as part of the NPA because United agreed to a global resolution of its criminal and civil liability, entering into a separate civil settlement agreement with the Department’s Civil Division.
The Criminal Division’s Fraud Section also considered that United engaged in remedial measures after the offense conduct, including: (i) removing and replacing the principal manager of the criminal scheme detailed in the Statement of Facts; (ii) hiring outside legal and accounting advisors to review and consult on United’s government contracting compliance and related policies and procedures; (iii) establishing an independent Government Contracts Organization to manage and ensure contractual compliance for United’s government contracts that reports directly to United’s Legal Department; (iv) establishing a training curriculum and holding a monthly training call for employees who have government contracting-related duties and responsibilities; (v) prohibiting automation and limiting access to flight configuration data to ensure that data transmitted to the USPS cannot be manipulated by employees; (vi) conducting international mail operations process reviews; and (vii) enhancing its policies and procedures relating to obtaining and complying with government contracts, including assignment of roles and responsibilities, ensuring accurate representations to the U.S. government, and subcontracting.
The civil settlement resolves allegations under the False Claims Act that United falsely reported the times it transferred possession of United States mail to foreign postal administrations or other intended recipients. This is the fourth civil settlement involving air carrier liability for false delivery scans under the USPS ICAIR Contracts. Including the civil settlement announced today, the United States has recovered nearly $65 million in connection with its investigation of delivery scan practices under the ICAIR Contracts through these civil settlements.
The criminal case was investigated by the USPS Office of the Inspector General. Assistant Chief Timothy A. Duree of the Criminal Division’s Fraud Section prosecuted this case. The civil matter was handled by the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from the USPS Office of the Inspector General and the USPS Office of General Counsel. Senior Trial Counsel Don Williamson of the Civil Division’s Commercial Litigation Branch, Fraud Section, represented the government in the civil case.
Statement by Pamela Karlan, Principal Deputy Assistant Attorney General of the Civil Rights DivisionRead the Press Release
“The United States is currently facing unprecedented challenges, some of which are fueling increased bigotry and hatred. Hate crimes cannot be tolerated in our country, and the Department of Justice will continue to put all necessary resources toward protecting our neighbors and our communities from these heinous acts. The Department, through its strong Civil Rights Division, remains resolute in its commitment to investigating and prosecuting civil rights violations, both criminal and civil, and seeking justice for the victims of illegal discrimination. In addition, over the past months, the Division has trained hundreds of federal prosecutors and law enforcement officers to identify, investigate, and prosecute hate crimes and other civil rights crimes. The Division is also in frequent communication with our colleagues in the FBI and United States Attorney’s Offices as they work with local law enforcement to evaluate possible hate crimes. And the FBI has offered support to assist the criminal investigations.
“In partnership with the FBI and United States Attorney’s Offices across the nation, the Division’s Criminal Section aggressively prosecutes hate crimes, official misconduct, and other criminal civil rights violations. And its other Sections pursue illegal discrimination in many aspects of life, including housing, employment, voting, education, and the operation of federally funded programs, among other areas.
“When a crime is motivated by animus based on race, religion, national origin, sex (including sexual orientation or gender identity), disability, or citizenship, it causes a ripple effect across a community. No one in the United States should live in fear of victimization because of who they are, how they worship, where they come from, or whom they love. Diversity is central to who we are as a nation, and the Department of Justice is committed to holding accountable anyone who violates the civil rights of others."
For more information and resources on the Department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes. If you believe you have been a victim of a civil rights violation please visit: https://civilrights.justice.gov/ to file a report.
Southern Colorado Man Sentenced to More Than 19 Years for Plotting to Blow up SynagogueRead the Press Release
A Colorado man was sentenced today in federal court in Colorado for plotting to blow up a synagogue.
Richard Holzer, 28, was sentenced to over 19 years in prison, followed by 15 years of supervised release. Holzer previously pleaded guilty to federal hate crime and explosives charges for plotting to blow up the Temple Emanuel Synagogue in Pueblo, Colorado, conduct that constituted acts of domestic terrorism. Holzer told undercover FBI agents that he wanted the bombing to send a message to Jewish people that they must leave his town, “otherwise people will die.”
Holzer pleaded guilty to intentionally attempting to obstruct persons in the enjoyment of their free exercise of religious beliefs, through force and the attempted use of explosives and fire, in violation of Title 18, U.S. Code, Section 247, and to attempting to maliciously damage and destroy, by means of fire and explosives, a building used in interstate commerce.
“The Department has combatted hate-based violent extremism and domestic terrorism since our inception,” said Acting Deputy Attorney General John Carlin. “Today there is no higher priority. This sentencing serves as a reminder that these crimes will not be tolerated, and we will hold the individuals who engage in them fully accountable. From our Civil Rights Division, our National Security Division, and the FBI, to the Office for Victims of Crime and our Community Relations Service, the Department of Justice will use every tool at its disposal to identify, disrupt, deter, and prevent hate-based, extremist threats to members of the American public.”
“Today’s sentence is another step forward in our on-going fight against extremism,” said U.S. Attorney Jason Dunn of the District of Colorado. “About two-and-a-half years ago, my first day as U.S. Attorney took me to a vigil for victims from the Pittsburgh Tree of Life Synagogue attack. Today, my last day in the office, we have sentenced the extremist responsible for the attempted bombing of the Temple Emanuel Synagogue in Pueblo. We must remain ever vigilant in this battle and I am confident the Department will continue to lead this fight.”
“Protecting our communities from terrorism, both domestic and international, is a top priority for the FBI. Mr. Holzer targeted a place of worship for violence and destruction to drive people of the Jewish faith from our community," said FBI Denver Special Agent in Charge Michael Schneider. "Today’s sentence demonstrates the commitment by the FBI and our law enforcement partners to ensure that if a crime is motivated by bias against a religion or any other federally protected status, it will be aggressively investigated, and the perpetrators held responsible for their actions. We are grateful for the collaborative efforts of the FBI’s Southern Colorado Joint Terrorism Task Force, Pueblo County Sheriff’s Office, Pueblo Police Department, and the U.S. Attorney’s Office to hold Mr. Holzer accountable for plotting violent acts of hate.”
Holzer, who self-identifies as a Neo-Nazi and white supremacist, admitted that he planned to destroy Temple Emanuel, a synagogue in Pueblo, Colorado, that is listed on the National Register of Historic Places. The planned bombing, which Holzer declared was “a move for our race,” was born from years of Holzer consuming and promoting white supremacist ideology. Holzer regularly used social media to glorify violence and advocate for white supremacy. After an undercover FBI employee contacted Holzer, he sent pictures of himself holding automatic weapons and said he was “getting ready for RAHOWA,” shorthand for a racial holy war.
Holzer talked to associates for months about attacking Temple Emanuel, and he visited the synagogue to observe Jewish congregants. During a meeting with undercover agents to discuss his plans, Holzer repeatedly expressed his hatred of Jewish people and suggested using explosive devices to destroy the Synagogue. Holzer told the undercover agents that he wanted to “get that place off the map.” Holzer further admitted that he coordinated with the undercover agents to obtain explosives, including pipe bombs.
On the evening of Nov. 1, 2019, Holzer met with undercover agents, who provided Holzer with inert explosive devices that had been fabricated by the FBI, including two pipe bombs and 14 sticks of dynamite. Holzer removed a copy of “Mein Kampf” from his bag and told the undercover agents that the explosives looked “absolutely gorgeous.” Holzer admitted that he planned to detonate the explosives several hours later, in the early hours of Saturday morning, Nov. 2, 2019. After his arrest, Holzer explained that “The event planned for tonight would define me as a person who would die for his people.”
The actions Holzer admitted in the plea agreement meet the federal definition of domestic terrorism, as they involved criminal acts dangerous to human life that were intended to intimidate or coerce a civilian population.
Trial Attorney Michael J. Songer of the Civil Rights Division and Assistant U.S. Attorney Julia Martinez prosecuted the case on behalf of the government. The FBI conducted the investigation with the assistance of the Pueblo Police Department and Pueblo County Sheriff’s Office.
For more information and resources on the Department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
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Pahayag ni Pamela Karlan, Punong Kinatawan na Kawaning Abogado Heneral para sa Sangay ng Pangkalahatang mga Karapatang SibilRead the Press Release
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New Jersey Man Admits Conspiring with White Supremacists to Vandalize Synagogues Across the CountryRead the Press Release
A New Jersey man pleaded guilty today to his role in conspiring with members of a white supremacist hate group to threaten and intimidate African Americans and Jewish Americans by vandalizing minority-owned properties throughout the country in September 2019.
Richard Tobin, 19, of Brooklawn, pleaded guilty to an information charging him with conspiracy against rights. U.S. District Court Judge Robert B. Kugler scheduled sentencing for June 28, 2021.
“Conspiring with others to vandalize and destroy property owned by African-Americans and Jewish Americans will not be tolerated by the Department of Justice,” said Principal Deputy Assistant Attorney General Pam Karlan of the Civil Rights Division. “Every person should feel secure knowing they have the right to own and use their property free from being targeted because of their race or religion. We will continue to protect the civil rights of all individuals and vigorously prosecute bias motivated crimes.”
“Americans should never have to fear racist, anti-Semitic or any other form of bias-motivated violence,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “This defendant encouraged hateful acts of violence against individuals and their houses of worship, based solely on their religion or the color of their skin. Together with our colleagues in the Civil Rights Division and the Joint Terrorism Task Force, this office will continue to work every day to identify individuals like him and bring them swiftly to justice.”
“The FBI and our partners simply won’t tolerate crimes spurred by hate, which are meant to intimidate and isolate the groups targeted,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “People of all races and faiths deserve to feel safe in their communities. Richard Tobin encouraged others to victimize innocent people, in furtherance of his abhorrent white supremacist beliefs. While we all have the right to believe whatever we want, when those views lead to violence, that’s a different and dangerous story.”
According to documents filed in this case and statements made in court:
Tobin admitted that from Sept. 15 to Sept. 23, 2019, he was a member of a white supremacist group, “The Base,” and during that time, he communicated online with other members and directed them to destroy and vandalize properties affiliated with African Americans and Jewish Americans. Tobin dubbed this coordinated attack “Kristallnacht,” or “Night of Broken Glass,” after an attack in Germany on Nov. 9 and 10, 1938, in which Nazis murdered Jewish people and burned and destroyed Jewish homes, synagogues, stores and schools. Tobin implored members of The Base to post propaganda flyers and to break windows and slash tires belonging to African Americans and Jewish Americans. On Sept. 21, 2019, members of The Base vandalized synagogues in Racine, Wisconsin, and Hancock, Michigan, by spray painting them with hate symbols.
A conspirator, Yousef Omar Barasneh, previously pleaded guilty to conspiracy against rights in federal court in the Eastern District of Wisconsin, for his role in vandalizing the synagogue in Racine, Wisconsin.
The conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the U.S. Attorney’s Office in Camden and Trial Attorney Eric Peffley of the Civil Rights Division, Criminal Section.
Lời Phát Biểu của Pamela Karlan, Phó Trợ Lý Tổng Chưởng Lý của Bộ Dân QuyềnRead the Press Release
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Brandon Quinata Sentenced to Prison for Conspiracy to Distribute over 50 Grams of MethamphetamineRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Brandon Quinata, age 37, from Umatac, Guam, was sentenced in the United States District Court of Guam to 57 months imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine Hydrochloride, a Schedule II controlled substance in violation of 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(A)(viii). The Court also ordered 3 years of supervised release following imprisonment, 50 hours of community service, and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
In February 2018, Quinata agreed with others to distribute methamphetamine. Two packages were mailed from Las Vegas to Quinata and another individual on Guam. Prior to delivery, law enforcement intercepted the packages, removed the methamphetamine, replaced it with a sham substance. The controlled delivery of the packages was conducted, a week later Quinata was interviewed and confessed to the crime. The combined weight of the drugs was approximately 223 grams, with a purity of 98%.
U.S. Attorney Anderson stated, “As revealed in this case, substantial quantities of drugs continue to be sent through our mail system. Federal law enforcement will remain vigilant in combating this activity. Traffickers can expect substantial terms of imprisonment because of our prosecutions.”
This was a joint investigation by the United States Postal Inspection Service and the Drug Enforcement Administration. The case was prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney in the District of Guam.
Member of Santo Domingo Pueblo sentenced to three years in prison for assault on federal officersRead the Press Release
ALBUQUERQUE, N.M. – Stephen Reano, 22, of Santo Domingo, New Mexico, and an enrolled member of Santo Domingo Pueblo, was sentenced in federal court on Feb. 23 to three years and four months in prison, three years of supervised release and 50 hours of community service for an assault on federal officers.
Reano pleaded guilty on Oct. 30, 2020. In the plea agreement, Reano admitted that on June 11, 2020, he was carrying a rifle in the village area of Santo Domingo Pueblo in Sandoval County. Bureau of Indian Affairs patrol officers, responding to calls about an armed individual, located him standing near a utility pole beneath a street light in the village. Reano pointed his rifle at one officer, then at another officer when the second officer used the patrol unit’s public address system to order Reano to put down his weapon. Reano was shot in the shoulder after repeatedly ignoring the officers’ commands. He was treated for his injuries and remained in custody pending his plea and sentencing. At the time of the incident, both federal officers were engaged in the performance of their official duties.
The Albuquerque office of the FBI investigated this case. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case.
Member of Santo Domingo Pueblo sentenced to three years in prison for assault on federal officersRead the Press Release
ALBUQUERQUE, N.M. – Stephen Reano, 22, of Santo Domingo, New Mexico, and an enrolled member of Santo Domingo Pueblo, was sentenced in federal court on Feb. 23 to three years and four months in prison, three years of supervised release and 50 hours of community service for an assault on federal officers.
Reano pleaded guilty on Oct. 30, 2020. In the plea agreement, Reano admitted that on June 11, 2020, he was carrying a rifle in the village area of Santo Domingo Pueblo in Sandoval County. Bureau of Indian Affairs patrol officers, responding to calls about an armed individual, located him standing near a utility pole beneath a street light in the village. Reano pointed his rifle at one officer, then at another officer when the second officer used the patrol unit’s public address system to order Reano to put down his weapon. Reano was shot in the shoulder after repeatedly ignoring the officers’ commands. He was treated for his injuries and remained in custody pending his plea and sentencing. At the time of the incident, both federal officers were engaged in the performance of their official duties.
The Albuquerque office of the FBI investigated this case. Assistant U.S. Attorney Jennifer M. Rozzoni is prosecuting the case.
Former Air Force Contractor Pleads Guilty to Illegally Taking 2,500 Pages of Classified InformationRead the Press Release
WASHINGTON – A former contractor with the U.S. Air Force pleaded guilty in the U.S. District Court, Southern District of Ohio today to illegally taking approximately 2,500 pages of classified documents.
Izaak Vincent Kemp, 35, of Fairborn, was charged on Jan. 25, 2021, by a Bill of Information.
According to court documents, Kemp was employed as a contractor at the Air Force Research Laboratory (AFRL) from July 2016 to May 2019, and later as a contractor at the U.S. Air Force National Air and Space Intelligence Center (NASIC). While working at AFRL and NASIC – both located on Wright-Patterson Air Force Base in Fairborn – Kemp had Top Secret security clearance.
Despite having training on various occasions on how to safeguard classified material, Kemp took 112 classified documents and retained them at his home.
Law enforcement discovered the documents which contained approximately 2,500 pages of material classified at the Secret level, while executing a search warrant at Kemp’s home on May 25, 2019.
Unauthorized removal or retention of classified documents is a federal crime punishable by up to five years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
John C. Demers, Assistant Attorney General for the National Security Division of the Department of Justice; David M. DeVillers, U.S. Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge of the FBI Cincinnati Division; the Air Force Office of Special Investigations; and Fairborn Police Chief Terry Bennington announced the plea entered into today before U.S. District Judge Walter H. Rice. The Department of Justice’s Deputy Criminal Chief Dominick S. Gerace and Trial Attorney Matthew J. McKenzie of the National Security Division are representing the United States in this case.
Lexington Man Sentenced to 36 Years in Prison for Sex Trafficking Multiple VictimsRead the Press Release
Prince Bixler, 41, of Lexington, Kentucky, was sentenced today by U.S. District Court Judge Robert E. Wier to 36 years in prison followed by 10 years of supervised release and ordered to pay $333,100 in restitution to three sex trafficking victims.
In September 2020, a federal jury convicted Bixler of 15 federal felonies related to his extensive and violent sex and drug trafficking operation that forced young, drug-addicted women to prostitute and sell crack cocaine, heroin, and methamphetamines throughout the Lexington area. Specifically, the jury convicted Bixler of three counts of sex trafficking by force, fraud, or coercion, two counts of tampering with a witness, victim or an informant, one count of operating an unlawful prostitution business enterprise, six counts of distributing controlled substances including crack cocaine, heroin, and methamphetamine, and three counts of being a felon in possession with a firearm.
“Prince Bixler cruelly used violence to create a climate of fear to coerce his victims, while at the same time he increased their dependence on him by exploiting and furthering their serious drug addictions,” said Principal Deputy Assistant Attorney General Pam Karlan. “Human trafficking shatters the lives of those it impacts, leaving lasting physical and mental scars. There can be no place in our society for this conduct and I hope that today’s sentence brings some measure of justice to the victims while it also prevents Prince Bixler from harming others in the future.”
“Prince Bixler preyed on vulnerable women, to operate a prostitution enterprise and sell illegal drugs in our community,” said Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “His conduct caused enduring physical and emotional damage to these women, and further spread the devastation of highly addictive and dangerous drugs. We will continue to do our part in identifying, prosecuting, and punishing those who engage in human trafficking. The despicable conduct in this case justifies those efforts, and certainly warrants the punishment the Court has imposed.”
“Mr. Bixler was simply a predator in our community. This sentencing is a success in the fight against those who exploit the vulnerable and illustrates our dedication to bring these criminals to justice,” said Special Agent in Charge James “Robert” Brown Jr., FBI Louisville Field Office. “We are also grateful to our law enforcement partners, especially the ATF, the Lexington Police Department, the Justice Department's Civil Rights Division, and the Eastern District of Kentucky’s U.S. Attorney’s Office for their unwavering efforts not only in this investigation, but in our continued fight to disrupt and dismantle human trafficking networks throughout the region.”
“Prince Bixler exploited women with physical violence and drugs while peddling illicit and deadly narcotics throughout the Lexington community,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge R. Shawn Morrow of the Louisville Field Division. “Frequently these felons use firearms to further their violent, criminal activities. ATF is committed to investigating and arresting these felons and finding justice for their known and unknown victims.”
Evidence presented at trial, including the testimony of three victims, established that defendant Prince Bixler compelled three victims into prostitution between 2013 and March 2018 by physically assaulting them and others to create a climate of fear and intimidation. He exploited their dependence on crack cocaine or heroin, using it to worsen their addictions and to keep them around him. The defendant also sold crack cocaine, heroin, and methamphetamine throughout the Lexington area to numerous customers. When the Lexington Police Department executed a search warrant at the defendant’s residence in March 2018, they recovered numerous firearms. The defendant, a convicted felon, was prohibited from possessing these and other firearms.
As the investigation into the defendant’s illegal conduct continued throughout 2018 into 2019, he became aware that multiple potential witnesses were subpoenaed to testify before a federal grand jury in Lexington. The defendant threatened one witness with physical violence in an attempt to dissuade her from testifying truthfully before the grand jury. The defendant also repeatedly called and harassed another witness on the eve of her scheduled grand jury appearance in an attempt to prevent her from testifying truthfully before the grand jury.
Principal Deputy Assistant Attorney General Pam Karlan for the Department of Justice’s Civil Rights Division; Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky; James Robert Brown Jr., Special Agent in Charge, FBI Louisville Field Office; R. Shawn Marrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence. This case was investigated by the Lexington FBI office, the Lexington ATF office, and the Lexington Police Department. It was prosecuted by Assistant U.S. Attorney Hydee Hawkins for the Eastern District of Kentucky and Special Litigation Counsel Matthew Grady for the Civil Rights Division’s Human Trafficking Prosecution Unit.
Brian G. Lizama Sentenced to Prison for Identity Theft SchemeRead the Press Release
Saipan, MP – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Brian Galang Lizama, age 49, was sentenced in the United States District Court for the Northern Mariana Islands to 24 months imprisonment for Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A(a)(1). The Court also ordered Lizama to pay $30,850 in restitution, serve one year of supervised release following imprisonment, perform 50 hours of community service, and pay a mandatory $100 special assessment fee.
During December 2019, Lizama obtained a copy of his brother’s birth certificate from the Commonwealth Healthcare Corporation on Saipan. He used the certificate to obtain an identification card in his brother’s name from the Saipan Mayor’s Office. Lizama then used the identification card to make $30,850 in withdrawals from his brother’s Bank of Guam savings account. Lizama’s brother discovered the theft upon later checking the balance of his savings account by phone.
U.S. Attorney Anderson stated, “Theft scams occur by many methods, including the unlawful use of identity documents. The substantial loss in this matter warranted federal prosecution. The public is urged to take precautions with their personal information and regularly monitor their financial accounts to combat this activity. If someone suspects they may be a victim of identity theft, they should contact law enforcement immediately. Additional assistance may be obtained at IdentityTheft.gov or by calling the Federal Trade Commission at (877) 438-4338.”
This case was investigated by the Federal Bureau of Investigation, with assistance from the CNMI Department of Public Safety. The case was prosecuted by Garth R. Backe, Assistant United States Attorney in the District of the Northern Mariana Islands.
One of the Nation’s Largest Chicken Producers Pleads Guilty to Price Fixing and is Sentenced to a $107 Million Criminal FineRead the Press Release
Pilgrim’s Pride Corporation (Pilgrim’s), a major broiler chicken producer based in Greeley, Colorado, has pleaded guilty and has been sentenced to pay approximately $107 million in criminal fines for its participation in a conspiracy to fix prices and rig bids for broiler chicken products, the Department of Justice announced today.
According to the plea agreement entered in the U.S. District Court in Denver, from as early as 2012 and continuing at least into 2017, Pilgrim’s participated in a conspiracy to suppress and eliminate competition for sales of broiler chicken products in the United States that affected at least $361 million in Pilgrim’s sales of broiler chicken products.
The District Court accepted Pilgrim’s guilty plea and sentenced the company to pay a criminal fine of $107,923,572.
“Today’s guilty plea demonstrates our unwavering commitment to prosecuting companies that violate the nation’s antitrust laws, especially when it involves something as central to everyday life as the food we eat,” said Richard Powers, Acting Assistant Attorney General of the Department of Justice’s Antitrust Division. “This guilty plea is a direct result of the tireless efforts of our dedicated career prosecutors and staff, and partners at the FBI, Commerce Office of Inspector General (OIG) and USDA OIG.”
“Today’s plea is another example of the FBI’s ongoing work to eliminate bid rigging and price fixing and hold those conducting these activities accountable for their actions,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “These criminal acts cheat American workers and consumers while harming competitive markets. This ongoing investigation has yielded charges against 10 individuals for their efforts to illegally manipulate broiler chicken prices, and the FBI is committed to continuing this important work alongside the Department of Justice and our partners.”
“This investigation demonstrates the government’s resolve to protect the integrity of free and open market competition,” said Peggy E. Gustafson, Inspector General of the Department of Commerce. “When competitor companies conspire to set prices that benefit themselves, American consumers are cheated. We will continue to work with our law enforcement partners to pursue such illegal activity and ensure perpetrators are held accountable. We greatly appreciate the efforts of the Department of Justice, FBI and USDA OIG on this investigation.”
“We appreciate the ongoing commitment and concerted efforts of our law enforcement partners at the Department of Justice’s Antitrust Division, the FBI, and the Department of Commerce OIG to investigate a long running scheme affecting competition through the rigging of bids and price fixing of broiler chicken products,” said Special Agent-in-Charge Bethanne M. Dinkins of the U.S. Department of Agriculture (USDA) OIG. “During these uncertain times, USDA OIG will continue to dedicate resources and prioritize work that benefits hard working Americans through competitive prices for agricultural producers and fairness in pricing and quality of agricultural products for consumers.”
Pilgrim’s is the first company to plead guilty for its role in a conspiracy to fix prices and rig bids for broiler chicken products. Broiler chickens are chickens raised for human consumption and sold to grocers and restaurants. Ten executives and employees at major broiler chicken producers have also previously been charged. The investigation remains ongoing.
A violation of the Sherman Act carries a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
This case is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the broiler chicken industry, which is being conducted by the Antitrust Division with the assistance of the U.S. Department of Commerce OIG, FBI Washington Field Office, and USDA OIG. Special thanks to U.S. Attorney Jason R. Dunn and Assistant U.S. Attorney Hetal Doshi from the District of Colorado for their assistance. Anyone with information on price fixing, bid rigging, or other anticompetitive conduct related to the broiler chicken industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Judge sentences St. Louis man for possession with the intent to distribute fentanylRead the Press Release
ST. LOUIS – United States District Judge Stephen R. Clark sentenced Larry Wilkins to 75 months in prison today. The 38-year-old St. Louis, Missouri resident pleaded guilty to one count of possession with intent to distribute fentanyl.
Beginning in October 2017, Federal Bureau of Investigation agents conducted an investigation into the distribution of controlled substances, including fentanyl, and identified Wilkins and three co-defendants as distributors. Investigators obtained court authorization to install a federal GPS tracking warrant for a vehicle driven by one of Wilkins’s co-defendants. The tracking device revealed the vehicle repeatedly traveled to a residence in the 24000 block of Sweet Lane in Waynesville, Missouri.
Agents’ observed multiple cars, including the one equipped with a GPS, made brief stops at the residence and departed shortly after, which is commonly associated with narcotics sales. The court issued a search warrant for this residence on February 14, 2018 during which they seized a home surveillance system, various firearms, cell phones and narcotics and took one of Wilkins’s co-defendants into custody.
A search warrant obtained and executed on the seized home surveillance system revealed Wilkins and a co-defendant were using the home on Sweet Lane to distribute narcotics, including fentanyl, in Waynesville.
In October 2018, investigators learned Wilkins was distributing fentanyl in the parking lot of an apartment complex located in the 10000 block of Sheffingdel Court in in St. Louis. On October 30, 2018, investigators observed Wilkins drive a Cadillac STS Sedan onto the parking lot and park near a dumpster. A person got out of another vehicle and entered the front passenger seat of the Cadillac STS Sedan.
Investigators approached the Cadillac STS Sedan, saw a loaded Remington RP45 semi-automatic pistol between the driver’s seat and center console and forced open the driver’s door of the Cadillac STS Sedan. Wilkins and the passenger were removed from the vehicle and investigators discovered a clear plastic bag sticking out from a vent on the back of the console which contained 69 smaller plastic baggies containing fentanyl.
"Working together with other agencies pays off and helps rid our communities of drugs and illegal possession of firearms," said Pulaski County Sheriff Jimmy Bench.
“The joint cooperation between local and federal agencies is imperative to the successful apprehension and prosecution of individuals who engage in continuing criminal activity,” said St. Louis County Police Chief Mary Barton.
The FBI, Pulaski County Sheriff’s Department and St. Louis County Police Department investigated the case. Assistant United States Attorney Geoffrey Ogden is handling the case.
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Department of Justice Issues Statement Regarding Federal Civil Rights Review into March 2020 Police Encounter with Daniel PrudeRead the Press Release
Pamela Karlan, Principal Deputy Assistant Attorney General for the Civil Rights Division of the Department of Justice, James P. Kennedy Jr., U.S. Attorney for the Western District of New York, and Stephen A. Belongia, Special Agent in Charge of the FBI Buffalo Field Office, released the following statement:
“The U.S. Attorney’s Office for the Western District of New York, the Civil Rights Division at the Department of Justice, and the Federal Bureau of Investigation are aware that a grand jury empaneled by the New York State Attorney General’s Office has concluded its investigation of the various officers of the Rochester Police Department who encountered Daniel Prude on March 23, 2020, and determined that no charges would be filed. We intend to review the comprehensive report issued by the New York State Attorney General, as well as any other relevant materials, and will determine whether any further federal response is warranted.”
Wife of “El Chapo” Arrested on International Drug Trafficking ChargesRead the Press Release
The wife of Joaquin “El Chapo” Guzman Loera, leader of a Mexican drug trafficking organization known as the Sinaloa Cartel, was arrested today in Virginia on charges related to her alleged involvement in international drug trafficking.
Emma Coronel Aispuro, 31, a dual U.S.-Mexican citizen, of Culiacan, Sinaloa, Mexico, was arrested today at Dulles International Airport. She is scheduled to make her initial appearance in federal court tomorrow in the U.S. District Court for the District of Columbia via video conference.
According to court documents, Aispuro is charged with participating in a conspiracy to distribute cocaine, methamphetamine, heroin and marijuana for importation into the U.S. Additionally, Coronel Aispuro is alleged to have conspired with others to assist Guzman in his July 11, 2015 escape from Altiplano prison, located in Almoloya de Juarez, Mexico. After Guzman was re-arrested in Mexico in January 2016, Coronel Aispuro is alleged to have engaged in planning yet another prison escape with others prior to Guzman’s extradition to the U.S. in January 2017.
Guzman Loera was convicted by a jury in the Eastern District of New York in 2019 for his role as a leader of the Sinaloa Cartel.
Cornel Aispuro is charged in a one count criminal complaint with a conspiracy to distribute one kilogram or more of heroin, five kilograms or more of cocaine, 1,000 kilograms or more of marijuana, and 500 grams or more of methamphetamines for unlawful importation into the U.S.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office made the announcement.
The FBI’s Washington Field Office is investigating the case.
Acting Deputy Chief Anthony Nardozzi and Trial Attorney Kate Wagner of the Justice Department’s Narcotic and Dangerous Drug Section are prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Owner of Aquarium Business Sentenced to Prison for Illicit Trafficking of Protected Reef CreaturesRead the Press Release
The Justice Department announced today that a Puerto Rico man was sentenced to a year and a day in federal prison for felony violations of the Lacey Act that involved the trafficking and false labeling of protected reef creatures as part of an effort to subvert Puerto Rican laws designed to protect coral reef organisms.
In 2013 through 2016, Aristides Sanchez, of Arecibo, was the owner of the Arecibo-based saltwater aquarium business, Wonders of the Reef Aquarium. A large part of the business was devoted to the sale of native Puerto Rican marine species that are popular in the saltwater aquarium trade.
Sanchez sent live specimens to customers in the mainland United States and foreign countries by commercial courier services. One of the most popular items that Sanchez sent off-island was a coral-like organism from the genus Ricordea. These animals are known as “rics,” “polyps,” or “mushrooms” in the aquarium industry. Members of the genus form part of the reef structure and spend their adult lives fastened in place to the reef. These animals are colorful in natural light, but what makes them particularly interesting to aquarium owners is that they “glow” under the UV lights that are typically used in high-end saltwater aquariums.
It is illegal to harvest Ricordea, zoanthids, and anemones in Puerto Rico if the specimens are going to be sent off-island or otherwise sold commercially, nor is there a permit available to do so. Sanchez personally collected some of the Ricordea and other reef creatures that he sold off-island. Because Ricordea are attached to the reef substrate, Sanchez would utilize a hammer and chisel to break off the animals, and in doing so, take chunks of the reef with him. At other times, Sanchez would purchase the Ricordea from other sources, knowing or suspecting that the specimens had been harvested illegally.
In order to cover up the nature of his shipments and to avoid detection from governmental inspection authorities, Sanchez would falsely label each shipment. Sanchez would refer to living marine organisms as “pet supplies,” “aquarium supplies,” “LED lights,” or similar inanimate objects on shipping labels and invoices. At times, he used a fake name to cover his actions.
From January 2013 to March 2016, Sanchez sent or caused to be sent at least 130 shipments of falsely labeled marine species that were illegally harvested in the waters of Puerto Rico. While there is some variation in the price of Ricordea depending on coloration, size, and other factors, the retail value of Ricordea shipped by Sanchez typically ranges from $25 to $50 per item. From on or about Jan. 7, 2013, through on or about March 16, 2016, the retail value of the falsely labeled and/or unlawfully harvested marine invertebrates shipped personally by Sanchez or on his behalf with his knowledge, was at least $800,000.
In addition to the prison time, Sanchez was sentenced to a supervised release term of two years and 120 hours of community service. The court also banned Sanchez from collecting or procuring marine life, shipping marine life off-island and scuba diving and snorkeling in Puerto Rico.
To view pictures of the seized coral, click here: /media/911501/dl?inline.
This case was investigated as part of Operation Rock Bottom and Operation Borinquen Chisel by Special Agents of the U.S. Fish and Wildlife Service and the National Oceanic and Atmospheric Administration with support from the USFWS Inspectors. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section along with Assistant U.S. Attorney Carmen Marquez of the U.S. Attorney’s Office for the District of Puerto Rico.
WWII Nazi Concentration Camp Guard Removed to GermanyRead the Press Release
Today a Tennessee resident with German citizenship was removed to Germany for participating in Nazi-sponsored acts of persecution while serving as an armed guard at a Nazi concentration camp in 1945.
In February 2020, Friedrich Karl Berger, 95, was ordered removed from the U.S. based on his participation in Nazi-sponsored persecution while serving in Nazi Germany in 1945 as an armed guard of concentration camp prisoners in the Neuengamme Concentration Camp system (Neuengamme).
“Berger’s removal demonstrates the Department of Justice’s and its law enforcement partners’ commitment to ensuring that the United States is not a safe haven for those who have participated in Nazi crimes against humanity and other human rights abuses,” said Acting Attorney General Monty Wilkinson. “The Department marshaled evidence that our Human Rights and Special Prosecutions Section found in archives here and in Europe, including records of the historic trial at Nuremberg of the most notorious former leaders of the defeated Nazi regime. In this year in which we mark the 75th anniversary of the Nuremberg convictions, this case shows that the passage even of many decades will not deter the Department from pursuing justice on behalf of the victims of Nazi crimes.”
“We are committed to ensuring the United States will not serve as a safe haven for human rights violators and war criminals,” said Acting ICE Director Tae Johnson. “We will never cease to pursue those who persecute others. This case exemplifies the steadfast dedication of both ICE and the Department of Justice to pursue justice and to hunt relentlessly for those who participated in one of history’s greatest atrocities, no matter how long it takes.”
Friedrich Karl Berger (1959)In November 2020, the Board of Immigration Appeals upheld a Memphis, Tennessee, Immigration Judge’s Feb. 28, 2020, decision that Berger was removable under the 1978 Holtzman Amendment to the Immigration and Nationality Act because his “willing service as an armed guard of prisoners at a concentration camp where persecution took place” constituted assistance in Nazi-sponsored persecution. The court found that Berger served at a Neuengamme sub-camp near Meppen, Germany, and that the prisoners there included “Jews, Poles, Russians, Danes, Dutch, Latvians, French, Italians, and political opponents” of the Nazis. The largest groups of prisoners were Russian, Dutch and Polish civilians.
After a two-day trial in February 2020, the presiding judge issued an opinion finding that Meppen prisoners were held during the winter of 1945 in “atrocious” conditions and were exploited for outdoor forced labor, working “to the point of exhaustion and death.” The court further found, and Berger admitted, that he guarded prisoners to prevent them from escaping during their dawn-to-dusk workday, on their way to worksites and on their way back to the SS-run subcamp in the evening.
At the end of March 1945, as allied British and Canadian forces advanced, the Nazis abandoned Meppen. The court found that Berger helped guard the prisoners during their forcible evacuation to the Neuengamme main camp – a nearly two-week trip under inhumane conditions, which claimed the lives of some 70 prisoners. The decision also cited Berger’s admission that he never requested a transfer from concentration camp guard service and that he continues to receive a pension from Germany based on his employment in Germany, “including his wartime service.”
In 1946, British occupation authorities in Germany charged SS Obersturmführer Hans Griem, who had headed the Meppen sub-camps, and other Meppen personnel with war crimes for “ill-treatment and murder of Allied nationals.” Although Griem escaped before trial, the British court tried and convicted other defendants of war crimes in 1947.
The trial and appeal of the removal case were handled by Eli Rosenbaum, Director of Human Rights Enforcement and Policy in the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), HRSP Senior Trial Attorney Susan Masling, and attorneys from ICE New Orleans, Office of the Principal Legal Advisor (Memphis), with assistance from HRSP Chief Historian Jeffrey S. Richter. Daniel I. Smulow, Senior Counsel for National Security in the Justice Department Civil Division’s Office of Immigration Litigation has participated in the litigation of Berger’s appeal.
The investigation was initiated by the HRSP and was conducted in partnership with the Nashville HSI office.
Acting Attorney General Monty Wilkinson expressed gratitude for assistance provided by the FBI, our German colleagues, and by the U.S. Holocaust Memorial Museum.
Since the 1979 inception of the Justice Department’s program to detect, investigate, and remove Nazi persecutors, it has won cases against 109 individuals. Over the past 30 years, the Justice Department has won more cases against persons who participated in Nazi persecution than have the law enforcement authorities of all the other countries in the world combined. HRSP’s case against Berger was part of its ongoing efforts to identify, investigate and prosecute individuals who engaged in genocide, torture, war crimes, recruitment or use of child soldiers, female genital mutilation, and other serious human rights violations. HRSP attorneys prosecuted the first torture case brought in the United States and have successfully prosecuted criminal cases against perpetrators of human rights violations committed in Guatemala, Ethiopia, Liberia, Cuba, and the former Yugoslavia, among others.
This removal was supported by ICE’s Enforcement and Removal Operations and Office of the Principal Legal Advisor as well as the Human Rights Violators and War Crimes Center (HRVWCC). The HRVWCC is comprised of HSI’s Human Rights Violators and War Crimes Unit, ICE’s Human Rights Law Division, FBI’s International Human Rights Unit, and HRSP. Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians and analysts who direct the government’s broader enforcement efforts against these offenders.
To learn more about HRSP, visit https://www.justice.gov/criminal-hrsp.
Hospice Administrator Sentenced for Role in Hospice Fraud SchemeRead the Press Release
The administrator of a Southern California hospice was sentenced Thursday to 30 months in prison for his role in a multimillion dollar hospice fraud scheme.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Assistant Director in Charge Kristi K. Johnson of the FBI’s Los Angeles Field Office, and Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
Antonio Olivera, 80, of Norwalk, was also ordered to pay $2,193,914 in restitution. Olivera pleaded guilty to one count of conspiracy to commit health care fraud in November 2020. Three co-conspirators have pleaded guilty and are awaiting sentencing.
As part of his guilty plea, Olivera admitted that from 2011 to 2018, while acting as administrator for Mhiramarc Management LLC (Mhiramarc), a hospice located in Downey, California, Olivera and others paid illegal kickbacks to patient recruiters for the referral of hospice beneficiaries to Mhiramarc. Further, when clinical staff at Mhiramarc determined beneficiary referrals did not qualify to receive hospice services, Olivera overruled those determinations and nonetheless caused the beneficiaries to be put on hospice service.
Olivera and co-conspirators caused Mhiramarc to submit approximately $28 million in claims to Medicare, which resulted in the company being paid over $17 million. Olivera was personally responsible for $4,769,982 in false and fraudulent claims to Medicare, resulting in Medicare paying Mhiramarc $2,984,914 for medically unnecessary hospice services for beneficiaries, many of whom had been recruited through illegal kickbacks.
This case was investigated by the FBI’s Los Angeles Field Office and HHS-OIG’s Los Angeles Regional Office. Trial Attorneys Justin Givens and Claire Yan of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Vessel Operator and Engineers Sentenced for Oil Waste Discharge OffensesRead the Press Release
WASHINGTON – A vessel operating company was sentenced today in Hagatna, Guam, for illegally discharging oil into Apra Harbor, Guam, and for maintaining false and incomplete records relating to the discharges of oily bilge water from the vessel Kota Harum.
Pacific International Lines (Private) Limited (PIL), Chief Engineer Maung Maung Soe, and Second Engineer Peng Luo Hai admitted that oily bilge water was illegally dumped from the Kota Harum directly into the ocean and into Apra Harbor, Guam, without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. The defendants also admitted that these illegal discharges were not recorded in the vessel’s oil record book as required by law.
“This case was particularly egregious as it not only involved oily waste discharges out at sea, but also in the Port of Guam itself,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “I’d like to thank the stevedores at the Port of Guam who reported the oil discharge to authorities. The Department of Justice and our partner agencies will continue to ensure that polluters who threaten our natural resources are held fully accountable under the law.”
“This case demonstrates our continued commitment to enforcing federal environmental laws in our districts,” said U.S. Attorney Shawn N. Anderson of the Districts of Guam and the Northern Mariana Islands. “We will not allow our waters to be dumping grounds for vessel owners and their crews. The substantial penalties imposed by the court are a strong measure of accountability for these unconscionable acts.”
“This case is a strong example of how the U.S. Coast Guard environmental protection missions safeguard our shared natural resources,” said Josh Empen, Deputy Commander, Coast Guard Sector Guam. “We are very thankful to have an expert team of pollution investigators, port state control examiners, and Coast Guard Investigative Service agents who are dedicated to the mission and allowed referral of the case to the U.S. Attorney. I would also like to thank the professional men and women of the Port Authority of Guam who reported the illegal discharge to the National Response Center.”
Specifically, on Oct. 4, 2019, Hai, who was employed by PIL, used the Kota Harum’s emergency fire/ballast pump to discharge oily bilge water directly overboard, leaving an oil sheen upon the water of Apra Harbor. Additionally, Soe, who was also employed by PIL, admitted that excessive leaks in the vessel caused oily bilge water to accumulate in the vessel’s engine room bilge at a rate that exceeded the oil water separator’s (required pollution prevention machinery) processing capacity.
Rather than repairing these leaks before continuing to sail or storing the oily bilge water in holding tanks to be discharged to shore-side reception facilities, it was the routine practice onboard the Kota Harum to discharge the oily bilge water directly overboard into the ocean. Soe then failed to record these improper overboard discharges in the vessel’s oil record book. Additionally, Soe admitted that he altered the vessel’s sounding log so that it would appear as though oily bilge water was being stored in the vessel’s holding tank instead of being pumped overboard.
PIL pleaded guilty to five felony violations of the Act to Prevent Pollution from Ships for failing to accurately maintain the Kota Harum’s oil record book, and one felony violation of the Clean Water Act for knowingly discharging oil into a water of the United States in a quantity that may be harmful. The judge sentenced PIL to pay a total criminal penalty of $3 million and serve a four- year term of probation, during which all vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan.
Soe and Hai previously pleaded guilty and were sentenced to two years of probation and one year of probation, respectively. Additionally, both Soe and Hai are prohibited from serving as engineers onboard any commercial vessels bound for the United States during their respective terms of probation.
This case was investigated by the U.S. Coast Guard Sector Guam and the U.S. Coast Guard Investigative Service. The case is being prosecuted by Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Marivic P. David for the Districts of Guam and the Northern Mariana Islands.
Vessel Operator and Engineers Sentenced for Oil Waste Discharge OffensesRead the Press Release
A vessel operating company was sentenced today in Hagatna, Guam, for illegally discharging oil into Apra Harbor, Guam, and for maintaining false and incomplete records relating to the discharges of oily bilge water from the vessel Kota Harum.
Pacific International Lines (Private) Limited (PIL), Chief Engineer Maung Maung Soe, and Second Engineer Peng Luo Hai admitted that oily bilge water was illegally dumped from the Kota Harum directly into the ocean and into Apra Harbor, Guam, without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. The defendants also admitted that these illegal discharges were not recorded in the vessel’s oil record book as required by law.
“This case was particularly egregious as it not only involved oily waste discharges out at sea, but also in the Port of Guam itself,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division. “I’d like to thank the stevedores at the Port of Guam who reported the oil discharge to authorities. The Department of Justice and our partner agencies will continue to ensure that polluters who threaten our natural resources are held fully accountable under the law.”
“This case demonstrates our continued commitment to enforcing federal environmental laws in our districts,” said U.S. Attorney Shawn N. Anderson of the Districts of Guam and the Northern Mariana Islands. “We will not allow our waters to be dumping grounds for vessel owners and their crews. The substantial penalties imposed by the court are a strong measure of accountability for these unconscionable acts.”
“This case is a strong example of how the U.S. Coast Guard environmental protection missions safeguard our shared natural resources,” said Josh Empen, Deputy Commander, Coast Guard Sector Guam. “We are very thankful to have an expert team of pollution investigators, port state control examiners, and Coast Guard Investigative Service agents who are dedicated to the mission and allowed referral of the case to the U.S. Attorney. I would also like to thank the professional men and women of the Port Authority of Guam who reported the illegal discharge to the National Response Center.”
Specifically, on Oct. 4, 2019, Hai, who was employed by PIL, used the Kota Harum’s emergency fire/ballast pump to discharge oily bilge water directly overboard, leaving an oil sheen upon the water of Apra Harbor. Additionally, Soe, who was also employed by PIL, admitted that excessive leaks in the vessel caused oily bilge water to accumulate in the vessel’s engine room bilge at a rate that exceeded the oil water separator’s (required pollution prevention machinery) processing capacity.
Rather than repairing these leaks before continuing to sail or storing the oily bilge water in holding tanks to be discharged to shore-side reception facilities, it was the routine practice onboard the Kota Harum to discharge the oily bilge water directly overboard into the ocean. Soe then failed to record these improper overboard discharges in the vessel’s oil record book. Additionally, Soe admitted that he altered the vessel’s sounding log so that it would appear as though oily bilge water was being stored in the vessel’s holding tank instead of being pumped overboard.
PIL pleaded guilty to five felony violations of the Act to Prevent Pollution from Ships for failing to accurately maintain the Kota Harum’s oil record book, and one felony violation of the Clean Water Act for knowingly discharging oil into a water of the United States in a quantity that may be harmful. The judge sentenced PIL to pay a total criminal penalty of $3 million and serve a four-year term of probation, during which all vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan.
Soe and Hai previously pleaded guilty and were sentenced to two years of probation and one year of probation, respectively. Additionally, both Soe and Hai are prohibited from serving as engineers onboard any commercial vessels bound for the United States during their respective terms of probation.
This case was investigated by the U.S. Coast Guard Sector Guam and the U.S. Coast Guard Investigative Service. The case is being prosecuted by Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Marivic P. David for the Districts of Guam and the Northern Mariana Islands.
Justice Department Settles Sex Discrimination Lawsuit Alleging Disparate Treatment Against Female Correctional Officers by the Michigan Department of CorrectionsRead the Press Release
The Justice Department today announced that it has reached a settlement, through a court-supervised settlement agreement, with the State of Michigan and the Michigan Department of Corrections (MDOC) to resolve a sex discrimination lawsuit brought by the United States of America.
The settlement agreement, filed today in federal district court in Detroit, resolves allegations that the defendants have engaged in two unlawful employment practices that discriminate against female correctional officers at Women’s Huron Valley Correctional Facility (WHV) because of sex, in violation of Title VII of the Civil Rights Act of 1964. Title VII is a federal law that prohibits discrimination in employment on the basis of race, color, religion, sex, and national origin. The United States’ complaint, filed on June 13, 2016, alleged that the defendants violated Title VII by classifying four job assignments as female-only and by denying female correctional officers job transfers.
The lawsuit is based on charges of sex discrimination filed with the U.S. Equal Employment Opportunity Commission’s (EEOC) Detroit Area Office by 28 female correctional officers who work or worked at WHV. The EEOC investigated the charges and found that there was a reasonable basis to believe that violations of Title VII had occurred. After unsuccessful conciliation efforts by the EEOC, the charges were referred by the EEOC to the Department of Justice.
“The female correctional officers employed by the Michigan Department of Corrections will finally be able to work under conditions that are fair and consistent with equal employment opportunity principles,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “This settlement agreement is an important first step in eliminating the sex discrimination that has so hampered the workplace for female correctional officers currently assigned to the Women’s Huron Valley Correctional Facility.”
Under the terms of the settlement agreement, which is subject to court approval, Defendants will pay $750,000 in compensatory damages to eligible female correctional officers who worked at WHV between 2009 and the present, including those who filed charges with the EEOC. Additionally, the State and MDOC will take a number of actions to remedy the alleged discrimination, including efforts to improve the recruitment and retention of female correctional officers at WHV, providing for a lift of the transfer freeze at WHV when the staffing level of female correctional officers reaches a certain level, allowing for a specific number of female correctional officers to transfer out of WHV to other MDOC facilities, and implementing a Title VII-compliant review process for female-only assignments.
“We must fight barriers to equal employment for women at all levels,” said Acting U.S. Attorney Saima S. Mohsin of the Eastern District of Michigan. “In those rare circumstances where gender is a bona fide occupational qualification, employers must ensure that it is narrowly applied and does not impose more onerous working conditions on women. The U.S. Attorney’s Office is committed to continuing its role as a staunch defender of equality.”
In a joint filing today in the U.S. District Court for the Eastern District of Michigan, the Justice Department, along with the State of Michigan and MDOC, moved for a court order provisionally approving the terms of the settlement agreement. The motion also asks the court to schedule a fairness hearing to provide an opportunity for individuals potentially affected by the proposed agreement to provide comments on the terms of the settlement.
The case was brought by Senior Trial Attorneys Taryn Wilgus Null, Nadia Said, and Jennifer Swedish of the Civil Rights Division’s Employment Litigation Section, as well as Susan K. DeClercq of the U.S. Attorney’s Office for the Eastern District of Michigan. The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
Japanese CEO and Employees Charged in Scheme to Defraud U.S. Navy and Dump Wastewater in OceanRead the Press Release
Three Japanese nationals, including the president and chief executive officer of Yokohama, Japan-based Kanto Kosan Co. Ltd. (Kanto Kosan) were indicted by a federal grand jury Tuesday in connection with an alleged long-running scheme to defraud the U.S. Navy and pollute Japanese waters by dumping contaminated water removed from U.S. Navy ships into the ocean.
Sojiro Imahashi, the president and CEO of Kanto Kosan, Tsuyoshi Ifuku, and Yuki Yamamiya, were charged with one count of conspiracy to make false claims, to commit ocean dumping, and to commit major fraud against the U.S.; four counts of major fraud against the U.S.; and six counts of submitting false claims.
“The defendants deceived the U.S. Navy by willfully failing to satisfy the company’s obligations under $120 million in contracts with the Department of Defense that were designed, among other things, to ensure the company not only delivered the required services to the Navy, but also complied with critical environmental safeguards,” said Acting Assistant Attorney General Nicholas L. McQuaid for the Justice Department’s Criminal Division. “The Criminal Division will continue its efforts to protect the integrity of military contracting and safeguard taxpayer dollars.”
“The defendants deserve to be held fully accountable for their alleged scheme to illegally dump wastewater as it threatened the integrity of the Department of the Navy procurement process, degraded the readiness of the warfighter, and squandered taxpayer dollars and valuable investigative resources,” said NCIS Far East Field Office Special Agent in Charge Tim Mahew. “NCIS remains committed to working with DCIS and our federal and international law enforcement partners to root out crime that threatens the communities where our DON personnel live and work.”
“The alleged conduct of the defendants in this case posed a threat to the critical strategic alliance between the United States and our valuable partner nation of Japan,” said Special Agent in Charge Stanley A. Newell of the Transnational Operations Field Office for the Defense Criminal Investigative Service (DCIS). “The dedicated special agents of the DCIS, along with our investigative partners of the Naval Criminal Investigative Service, will tirelessly investigate and bring to justice anyone who swindles the Department of Defense and threatens U.S. military readiness.”
According to the indictment, from approximately 2007 to 2020, Kanto Kosan received contracts from the U.S. Navy valued at approximately $120 million, tens of millions of which related to the removal, treatment, and disposal of contaminated oily wastewater (OWW) generated by U.S. Navy ships in Yokosuka, Sasebo, and Okinawa. Under the terms of the contracts, Kanto Kosan was typically required to treat the OWW in accordance with Japanese environmental regulations prior to discharging it into the ocean.
The indictment alleges that Kanto Kosan, acting through the defendants, transferred OWW to treatment barges, on which Kanto Kosan was supposed to use various methods to treat and clean the OWW prior to discharging it into the ocean. To ensure that discharged OWW met Japanese environmental standards, the U.S. Navy contracts typically required Kanto Kosan to “conduct semiannually sampling and testing of effluent discharge from the treatment barge[s]. . . in a laboratory that is certified by the Japanese regulatory authority . . . and provide copies of the test results to [the U.S. Navy]. . . within five (5) working days of receiving results from the accredited Japanese laboratory.” Compliance with the environmental testing regime set out in the contracts was one of the standards by which Kanto Kosan’s performance was measured.
The indictment alleges that in approximately 2007, the defendants and others decided that, instead of properly treating the OWW, Kanto Kosan would minimally treat OWW to remove visible contaminates and then discharge the improperly treated or untreated OWW into the ocean. To circumvent the testing regime, the defendants directed that a storage tank on Kanto Kosan’s OWW treatment barges be kept filled with tap water, and then directed personnel from the environmental testing laboratories that Kanto Kosan engaged to take samples from the tanks filled with tap water. Kanto Kosan employees also added OWW to the tanks filled with tap water on occasion to avoid exposing the scheme. As a result, the U.S. Navy was deceived into believing Kanto Kosan was properly treating the OWW, and into paying its invoices.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
NCIS and DCIS investigated the case. Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption matters.
Former Subcontractor Sentenced for Obstruction of JusticeRead the Press Release
A former subcontractor for the U.S. Marines Corps was sentenced today to 18 months in prison for destroying records in connection with a federal investigation of bribery and procurement fraud at Marine Corps Base Camp Lejeune (MCBCL), located in Jacksonville, North Carolina, announced Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division.
The former subcontractor, William Thompson, 56, of Sneads Ferry, North Carolina, previously pleaded guilty to one count of obstruction of justice. According to documents filed with the Court, Thompson owned and operated C&D Painting and Construction, a construction company with its principal place of business in Sneads Ferry. Public Official 1 was a civilian employee of the U.S. Marine Corps who directed the procurement of information technology services and equipment to be used by the Marine Corps at MCBCL and elsewhere.
In March 2018, agents of the Naval Criminal Investigative Service (NCIS), FBI, and IRS-Criminal Investigation (IRS-CI) interviewed Thompson. During the interview, law enforcement agents informed Thompson that they were investigating an alleged bribery conspiracy concerning work that C&D Construction completed as a subcontractor at MCBCL, and about renovations that Thompson performed at Public Official 1’s residence. At the time of the interview, the investigation was covert and not known to all subjects, including Public Official 1.
On the same evening of the interview and the following morning, Thompson exchanged several text messages with Public Official 1 in which Thompson informed Public Official 1 that the FBI, NCIS, and IRS-CI were investigating Public Official 1’s involvement in contracting matters while Public Official 1 was employed by the Marine Corps. After informing Public Official 1 of the ongoing federal investigation, Thompson deleted the relevant text messages from his phone, despite knowing that the messages constituted evidence related to the federal investigation into bribery and procurement fraud at MCBCL.
This case was investigated by the FBI, Department of Defense Office of Inspector General, NCIS, Naval Audit Service, and IRS-CI.
Trial Attorney Erica O’Brien Waymack of the Criminal Division’s Public Integrity Section is prosecuting the case.
Concrete Contractor Agrees to Settle False Claims Act Allegations for $3.9 MillionRead the Press Release
COLAS Djibouti SARL (Colas Djibouti) has agreed to resolve for $3.9 million civil allegations that it violated the False Claims Act by selling substandard concrete used to construct U.S. Navy airfields in the Republic of Djibouti, the Department of Justice announced today. Colas Djibouti, a French limited liability company, is a wholly owned subsidiary of Colas SA, a French civil engineering company.
The civil settlement announced today resolves allegations that Colas Djibouti knowingly provided contractually non-compliant concrete that did not meet gradation requirements, contained excessive alkali-silica reactive material, and contained elevated chloride content. These conditions had the potential to promote early-age cracking, surface defects, and the corrosion of embedded steel, and thus, could significantly impair the long-term durability of the concrete utilized on U.S. military bases.
In addition to the civil settlement, U.S. Attorney Robert S. Brewer for the Southern District of California announced a separate Deferred Prosecution Agreement (DPA) with Colas Djibouti pursuant to which Colas Djibouti will admit to the underlying facts and accept responsibility to a one-count information for conspiracy to commit wire fraud and pay a $12,542,002 monetary penalty, comprised of a fine, forfeiture, and restitution. The civil settlement will credit $1,957,998 of Colas Djibouti’s payment under the DPA, and require an additional payment of $1,957,998.
“Government contractors that supply substandard materials to our armed forces not only cheat the American taxpayers but also impose added costs and burdens on the military,” said Acting Assistant Attorney General Brian M. Boynton for the Department of Justice’s Civil Division. “Today’s settlement demonstrates our commitment to ensure that those who do business with the government comply with their contractual obligations.”
“Wherever our Navy goes, we go,” said Robert S. Brewer, U.S. Attorney for the Southern District of California. “We will continue to unwaveringly protect our American warfighters from fraud, graft and corruption as they protect us from enemies foreign and domestic.”
“Our Sailors and Marines depend upon high quality products and services from our Department of the Navy contractors in order to meet the department’s world-wide mission,” said acting Secretary of the Navy Thomas W. Harker. “This outcome demonstrates that the Department of the Navy will continue to insist that our contractors must meet our high standards. This global settlement demonstrates the strong cooperation between the Department of the Navy and the Department of Justice in preventing fraud, no matter where in the world it happens.”
“Aircraft taxiways are essential to military operations, and therefore require concrete that conforms to the high standards and specifications of the Department of Defense” said Stanley A. Newell, Special Agent in Charge for the DCIS Transnational Operations Field Office. “The DCIS along with our investigative partners will vigorously root out conduct like this that threatens U.S. military readiness and harms the integrity of the DoD procurement system.”
"Protecting Navy interests is a top priority of the Naval Criminal Investigative Service. Anyone considering defrauding the Navy and U.S. taxpayers should know NCIS will aggressively pursue all such allegations, in concert with our law enforcement partners and the Department of Justice," said Todd Battaglia, Special Agent in Charge of the NCIS Europe and Africs Field Office.
This civil settlement was the result of a coordinated effort among the Civil Division's Commercial Litigation Branch (Fraud Section), the U.S. Attorney’s Office for the Southern District of California, the DCIS, the NCIS, and the Defense Contract Audit Agency - Operations Investigative Support Division.
Except as admitted in the DPA, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Assistant Attorney General John C. Demers Delivers Remarks on the National Security Cyber Investigation into North Korean OperativesRead the Press Release
Today, the Justice Department is announcing charges following a significant national security cyber investigation first disclosed publicly more than two years ago.
As laid out in today’s indictment, North Korea’s operatives, using keyboards rather than guns, stealing digital wallets of cryptocurrency instead of sacks of cash, are the world’s leading bank robbers. The Department will continue to confront malicious nation state cyber activity with our unique tools and work with our fellow agencies and the family of norms abiding nations to do the same. We were together back in September 2018, when the U.S. Attorney’s Office for the Central District of California, with the assistance of the National Security Division, charged a North Korean programmer, who was working for the government of the Democratic People’s Republic of Korea (DPRK), with conspiring to conduct some of the most damaging cyberattacks ever, including the:
- November 2014 destructive attack and hack-and-dump targeting Sony Pictures Entertainment over a comedy film they did not like;
- February 2016 cyber-enabled heist of $81 million from the Bank of Bangladesh and other heists; and
- May 2017 global Wannacry 2.0 attack.
The events as described in that complaint provided the first indications that the North Korean regime would become focused on, and adept at, stealing money from institutions around the world.
Today, the Department unseals an indictment, returned by a grand jury in the Central District of California, charging the same DPRK programmer, as well as two newly-identified DPRK conspirators, with a campaign of cyber heists and extortion schemes, targeting both traditional and cryptocurrencies. The indictment adds to the list of victims since 2018, including continued cyber-enabled heists from banks on four continents targeting over $1.2 billion. It also describes in stark detail how the DPRK cyber threat has followed the money and turned its revenue generation sights on the most cutting edge aspects of international finance, including through the theft of cryptocurrency from exchanges and other financial institutions, in some cases through the creation and deployment of cryptocurrency applications with hidden backdoors. The indictment refines the attribution of this crime spree to the DPRK military intelligence services, specifically the Reconnaissance General Bureau (RGB). Simply put, the regime has become a criminal syndicate with a flag, which harnesses its state resources to steal hundreds of millions of dollars.
In a moment, you will hear more details about the charges and evidence in this case from the Acting United States Attorney for the Central District of California, the FBI, and the United States Secret Service. But, I want to take a moment to highlight the significance of these charges for the Department, the United States, and the international community: As the description of victim entities in the indictment shows, the DPRK’s malicious activities are a global problem, requiring global awareness, condemnation, and cooperative disruption. With this indictment and related disruptions, the United States continues to do its part.
First, we continue to shine a light on the global campaign of criminality being waged by the DPRK. Nation-state indictments like this are an important step in identifying the problem, calling it out in a legally rigorous format, and building international consensus.
Second, in addition to educating the U.S. public and international community about this activity, we are also targeting the networks through which the DPRK is cashing-out its ill-gotten gains. As will be described in more detail by my colleagues, the Department has obtained custody over a dual-U.S./Canadian national who organized the laundering of millions of dollars stolen by the DPRK hackers. He has admitted his role in these criminal schemes in a plea agreement, and he will be held to account for his conduct. This prosecution demonstrates the commitment of the Department to ensuring that those who conspire with the DPRK hackers will face justice. The Department was also able to seize and expects to ultimately return almost $2 million stolen by the DPRK hackers from a New York-based financial services company. This follows on similar seizure actions announced in March and August 2020, in which with the U.S. Attorney’s Office for the District of Columbia seized and froze approximately $8.5 million of cryptocurrency. These cryptocurrency seizures and prosecution of a high-level money launderer collectively represent important steps in disrupting the DPRK hackers and their money laundering networks, and illustrate the Department’s commitment to repatriating stolen funds before they reach the DPRK.
Third, the United States is empowering network defenders. As you will hear about, the prosecutors and investigators have — throughout this investigation — worked closely with victims and intended victims of the DPRK hackers, and have provided these victims with information about avoiding and remediating infections. This work continues today. Accompanying this announcement, the FBI and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, with the assistance of the Department of the Treasury, are releasing a Joint Cybersecurity Advisory and Malware Analysis Report regarding the DPRK’s malicious cryptocurrency applications. The criminal investigation leading to today’s indictment obtained that information for distribution to network defenders. Further, the context provided in today’s indictment underscores the necessity of paying attention to this Advisory and its recommendation.
Fourth, the allegations in today’s indictment inform and empower the international community so that they can not only join us in condemning this activity, but also help stop it. In that regard, the European Union’s (EU) July 2020 sanctions related to the Lazarus group was a welcome development. We commend the EU for its initial efforts to impose consequences for state-sponsored malicious cyber activities. However, other nations that wish to be regarded as responsible actors on the international stage must also step up. These conspirators described in today’s indictment are alleged to have been working, at times, from locations in China and Russia. The DPRK has also utilized Chinese over-the-counter cryptocurrency traders and other criminal networks to launder the funds. Just as the United States has disrupted the DPRK’s crime spree through arrests, forfeitures, and seizures, the time is ripe for Russia and China, as well as any other country whose entities or nationals play a role in the DPRK revenue-generation efforts, to take action.
The Department’s criminal charges are uniquely credible forms of attribution — we can prove these allegations beyond a reasonable doubt using only unclassified, admissible evidence. And they are the only way in which the Department speaks. If the choice here is between remaining silent while we at the Department watch nations engage in malicious, norms-violating cyber activity, or charges these cases, the choice is obvious — we will charge them.
Before I turn this over, I’d like to thank the agents at the FBI in Los Angeles, Charlotte, and Raleigh; the Secret Service in Savannah, Los Angeles, and D.C.; and the prosecutors in Los Angeles and at the National Security Division in D.C. for stepping up to the plate to play their part.
Owner of Sport Supplement Company Sentenced for Unlawful Distribution of Steroid-Like DrugsRead the Press Release
A North Carolina sport supplement company owner was sentenced to one year and one day in federal prison after pleading guilty to introducing unapproved new drugs into interstate commerce, the Department of Justice announced.
Brian Michael Parks, 47, of Apex, North Carolina, and MedFitRX Inc, now known as MedFit Sarmacuticals Inc., a sport supplement company based in Cary, North Carolina, previously pleaded guilty in U.S. District Court for the Western District of Virginia to one count of distributing unapproved new drugs with the intent to mislead and defraud the Food and Drug Administration (FDA) and consumers.
In pleading guilty, Parks admitted that from approximately June 2017 to September 2019, he and his company unlawfully distributed Selective Androgen Receptor Modulators (SARMs) and other substances that the FDA has not approved, including Ostarine (MK-2866), Ligandrol (LGD-4033), and Testolone (RAD-140). SARMs are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids.
The FDA has long warned against the use of SARMs like those found in MedFit products, including stating in a publicly available 2017 warning letter to another firm that SARMs have been linked to life-threatening reactions including liver toxicity, and have the potential to increase the risk of heart attack and stroke. In connection with his sentence, Parks also forfeited $350,000.
“Bypassing the FDA drug approval process puts consumers at risk,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The department will continue to work with the FDA to investigate and prosecute the illegal distribution of supplements that contain dangerous ingredients.”
“When Parks marketed drugs masquerading as dietary supplements that had not been approved by the FDA, he sidestepped important safeguards to protect the public, and committed a serious crime,” said Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia. “Our office will continue to closely partner with the FDA to ensure safety and effectiveness in our drug supply.”
“‘Sports supplements’ that are manufactured and distributed outside the FDA’s oversight and that contain unapproved and possibly toxic ingredients endanger the health of unsuspecting consumers,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen, FDA Office of Criminal Investigations. “Today’s actions represent our continued commitment to pursuing and bringing to justice those who mislead the public and intentionally attempt to subvert the regulatory functions of the FDA through the distribution of unapproved and potentially dangerous products.”
In pleading guilty, Parks also admitted that he intended to mislead and defraud the FDA and consumers by omitting ingredients on MedFitRX product labels, falsely claiming MedFitRX was licensed and registered to sell these new drugs, importing raw drug ingredients with the intent to avoid regulatory scrutiny, and misrepresenting MedFitRX products as “dietary supplements” or “sports supplements” to create the impression that they were safe and legal to use.
Assistant U.S. Attorney Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia and Trial Attorney Speare Hodges of the Civil Division’s Consumer Protection Branch prosecuted the case. This matter was investigated by the FDA’s Office of Criminal Investigations.