District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Indiana Man Pleads Guilty to Hate Crime for Making Racially-Charged Motivated Threats Toward Black Neighbor and to Unlawful Possession of FirearmsRead the Press Release
The Justice Department announced today that Shepherd Hoehn, 51, pleaded guilty in federal court to making threats to intimidate and interfere with his neighbor, who is Black, because of the neighbor’s race and because the neighbor was exercising his right to fair housing, in violation of 42 U.S.C. § 3631. Hoehn also pleaded guilty to unlawfully possessing firearms, in violation of 18 U.S.C. § 922(g).
According to documents filed in connection with the plea, on June 18, 2020, a construction crew began working at the direction of Hoehn’s neighbor to remove a tree from the neighbor’s property. Upon learning of the tree removal, Hoehn became angry and took several steps to threaten, intimidate and interfere with his neighbor and the construction workers. Specifically, Hoehn placed and burned a cross above the fence line facing his neighbor’s property; created and displayed a swastika on the outer side of his fence, facing his neighbor’s property; created and displayed a large sign containing a variety of anti-Black racial slurs next to the swastika; visibly displayed a machete near the sign with the racial slurs; loudly played the song “Dixie” on repeat; and threw eggs at his neighbor’s house. On July 1, 2020, the FBI executed a federal search warrant at Hoehn’s home. During the search, several firearms and drug paraphernalia were located.
“Hoehn’s hateful and threatening conduct, motivated by racial intolerance, is an egregious crime that will not be tolerated by the Justice Department,” said Principal Deputy Assistant Attorney General Pam Karlan of the Civil Rights Division. “Every person has a right to occupy, enjoy and feel safe in their homes, regardless of race, color or national origin. We will continue to protect the civil rights of all individuals and vigorously prosecute hate crime cases.”
“Threats and intimidation, condemnable at all times, are here made all the more reprehensible by Hoehn’s racial motivations,” said Acting U.S. Attorney John Childress. “The citizens of the Southern District of Indiana rightfully expect to be protected from such illegal conduct and expect that those who engage in it to be punished. The men and women of my office will meet those expectations.”
“It’s unimaginable that harassment and intimidation such as this based on race, sexual identity or religious beliefs still exists in this day and age. Such incidents are intended to create fear and will not be tolerated by the FBI,” said Special Agent in Charge Paul Keenan of the FBI Indianapolis Division. “The FBI and our law enforcement partners will continue to ensure that if a crime is motivated by bias, it will be investigated and the perpetrators held responsible for their actions. We encourage everyone to report such crimes to the FBI.”
Hoehn’s sentencing date has not been set at this time. Hoehn faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for each of the charged offenses.
This case was investigated by the FBI, with assistance from the Lawrence Police Department. Assistant U.S. Attorney Brad Shepard of the Southern District of Indiana and Trial Attorney Katherine DeVar of the Justice Department’s Civil Rights Division are prosecuting the case.
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Doctor Pleads Guilty to Not Paying Employment TaxesRead the Press Release
A doctor, formerly of Great Falls, Virginia, pleaded guilty today to willful failure to pay employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia.
According to court documents, from 2011 through 2018, Arshad Pervez Cheema owned and operated Walk-In Medical Center PC, a medical practice located in Falls Church and Herndon, Virginia. Cheema was responsible for collecting and paying to the IRS payroll taxes, which consisted of Social Security, Medicare, and income taxes that had been withheld from his employees’ wages, as well as an employer portion. Over a four-year period from 2012 to 2016, Cheema willfully did not pay over $500,000 in payroll taxes. Instead, he used some of the withheld funds for other business ventures, including to open and run a restaurant in Washington, D.C. In addition, Cheema did not pay corporate taxes for Walk-In Medical Center PC, nor did he pay employment taxes for another doctor’s office, Falls Church Family Care PC, which he operated. In total, Cheema did not pay over $2 million in employment and corporate taxes.
U.S. District Judge Anthony J. Trenga scheduled sentencing for June 23, 2021. At sentencing, Cheema faces a maximum sentence of five years’ imprisonment. Cheema also faces a period of supervised release, restitution, and a fine.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Parekh commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Casey S. Smith and Assistant U.S. Attorney Russell L. Carlberg, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Michigan Man Indicted for Hate Crimes After Attacking African-American TeenagersRead the Press Release
WASHINGTON – The Justice Department announced today that Lee Mouat, 42, has been indicted for federal hate crimes. Mouat is charged with two counts of violating 18 U.S.C. § 249 by willfully causing bodily injury to a Black teenager and attempting to cause bodily injury to another Black teenager, through the use of a dangerous weapon, because of the teenagers’ race. Mouat was previously charged with the former count by criminal complaint in federal district court on Oct. 13, 2020.
According to the affidavit in support of the criminal complaint, Mouat confronted a group of Black teenagers, including the victim, at a state park in Monroe, Michigan. Mouat repeatedly used racial slurs and said that Black people had no right to use the public beach where the incident occurred. Mouat then struck one of the teens in the face with a bike lock, knocking out several of the victim’s teeth and fracturing his jaw. According to the indictment, Mouat attempted to strike another teen with the bike lock.
An indictment is merely an allegation and the defendant is presumed innocent unless proven guilty in a court of law. If convicted, Mouat faces a statutory maximum penalty of 10 years in prison for each count.
This case is being investigated by the FBI. Assistant U.S. Attorney Frances Carlson of the Eastern District of Michigan and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.
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Two Louisiana Return Preparers Plead Guilty to Tax Fraud ConspiracyRead the Press Release
Two Louisiana tax preparers pleaded guilty today to conspiracy to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana.
According to court documents and statements made in court, from January through April 2015, Morgan Antoine and Jennifer Austin conspired to file false tax returns for clients of Pelicans Income Tax and Payroll Service, a tax preparation business located in Kenner and Westwego, Louisiana. Antoine and Austin prepared client returns reporting false income and withholdings in order to generate larger tax refunds. In addition to preparing false returns for her clients, Antoine also filed a fraudulent personal return that claimed a false dependent. In total, Antoine and Austin caused a tax loss of more than $550,000.
U.S. District Judge Sarah S. Vance scheduled sentencing for May 26, 2021. At sentencing, Antoine and Austin each face a maximum sentence of five years in prison. Antoine and Austin also face a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Strasser commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jessica Kraft and William Montague of the Tax Division and Assistant U.S. Attorney Carter Guice, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Judge sentences St. Louis County man for his role in drug trafficking organizationRead the Press Release
ST. LOUIS – United States District Judge John A. Ross sentenced Amos Vonzell Blanchard, Jr. to 54 months in prison today. The 45-year-old Florissant, Missouri resident previously pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute cocaine and cocaine base and one count of possession with the intent to distribute cocaine base.
Beginning in 2018, investigators with the Federal Bureau of Investigation and the St. Louis County Police Department began an investigation into a group of cocaine and cocaine base distributors operating in and around St. Louis County. Blanchard, Jr., along with others, was obtaining cocaine and cocaine base for redistribution.
On January 15, 2019, investigators executed a search warrant at Blanchard, Jr.’s stash house in the 6400 block of Ridge Avenue. Detectives observed Blanchard, Jr. holding a black latex glove while trying to open a bedroom window from inside the residence. The glove was found to contain more than 66 individual clear plastic baggies of cocaine base, commonly known as “crack” cocaine, 52 tablets of methamphetamine and a small amount of powder cocaine.
This case was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Federal Bureau of Investigation and the St. Louis County Police Department. Assistant United States Attorney Lisa Yemm is handling the case.
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Department of Justice Recognizes International Day of Zero Tolerance for Female Genital MutilationRead the Press Release
Female genital mutilation (FGM) has broad implications for the health and human rights of women and girls, as well as societies at large.
International Day of Zero Tolerance of Female Genital Mutilation on Feb. 6 served as an opportunity to reflect on victims who have suffered from FGM, including those who have died or suffered lifelong health complications from the practice. Partners of the Human Rights Violators and War Crimes Center (HRVWCC) including the Department of Justice, U.S. Immigration and Customs Enforcement (ICE), FBI, and the Human Rights and Special Prosecutions Section (HRSP) of the Justice Department’s Criminal Division join foreign government partners, non-governmental organizations, and local communities to call for the eradication of the practice.
“In the United States there will be zero tolerance for those who subject girls to this harmful and traumatic practice,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “As the recent indictment shows, the Justice Department will seek to hold accountable all perpetrators of this heinous act and fully enforce all provisions of the STOP FGM Act.”
“On this day we remember the women and girls who have been impacted by this horrific practice and commit ourselves to working together to end it,” said Mark Shaffer, Chief of ICE’s Human Rights Violators and War Crimes Center. “FGM is a human rights violation and a crime that requires a global effort to address. We stand with our domestic and international partners as we work together to support survivors and prevent the victimization of more women and girls.”
“Every year, the FBI joins with our partners to acknowledge Zero Tolerance Day and raise awareness regarding Female Genital Mutilation,” said Section Chief David Scott of the FBI’s Public Corruption and Civil Rights Section. “However, our work investigating perpetrators of this terrible crime is not limited to February 6. The FBI is consistently and actively working to eradicate this human rights violation every day of the year. We reaffirm our commitment to our partners, to the victims, and to the world that the FBI is committed to protecting the rights of young women and children and bringing justice to those who would violate them.”
FGM is a serious human rights violation, and, since 1996, has been a federal crime. This year, on Jan. 5, the STOP FGM Act 2020 was signed into law, further clarifying the FGM crime and aligning the U.S. definition of FGM with the World Health Organization’s definition. Violations of this law may result in imprisonment and potential removal from the United States. Individuals suspected of FGM, including sending girls overseas to be cut, may be investigated by the HRVWCC and prosecuted by the Justice Department accordingly. Notably, STOP FGM 2020 aligned the definition of FGM with the World Health Organization’s definition and increased the statutory maximum term of imprisonment for violating the law from five to ten years. On Jan. 13, the Department of Justice indicted a Texas woman for allegedly transporting a minor out of the United States for FGM, the first indictment under the amended statute.
The Human Rights Violators and War Crimes Center is the only government entity focused completely on investigating global atrocities and the perpetrators of human rights violations and war crimes. Initiated by ICE’s Homeland Security Investigations (HSI) in 2008, the HRVWCC leverages the knowledge and expertise of a select group of special agents, attorneys, intelligence analysts, criminal research specialists and historians who are charged with preventing the United States from becoming a safe haven to individuals who engage in the commission of war crimes, genocide, torture and other forms of serious human rights abuses from conflicts around the globe. The center also brings together other Department of Homeland Security components and federal partners, to include the FBI and the Department of Justice, who work collaboratively alongside HSI to pursue human rights violators and war crimes investigations and prosecutions. In 2017, the HRVWCC initiated Operation Limelight USA, a program modeled on Operation Limelight, a joint initiative by the United Kingdom (U.K.) Border Force and police services across the U.K. In Operation Limelight USA, HSI, in partnership with non-governmental organizations, the FBI, U.S. Customs and Border Protection, and other partners worked together to educate passengers flying to or from high-risk countries, offering informational brochures and identifying potential victims and violators of FGM.
According to UNICEF, more than 200 million girls and women alive today have undergone FGM, which refers to cutting and other procedures that injure the female genital organs for non-medical reasons. While primarily concentrated in north, west, and central Africa, as well as parts of the Middle East and Asia, FGM also occurs in the United States. The Centers for Disease Control estimates that approximately 500,000 women and girls in the United States are either victims of FGM or are at risk of being subjected to it. The practice is global in scope and found in multiple geographies, religions, and socioeconomic classes.
Anyone who has information about an individual who is suspected of assisting in this crime is urged to call the toll-free ICE tip line at (866) 347-2423 or the FBI tip line at 1-800-CALL-FBI, or complete the ICE online tip form or FBI online tip form. All are staffed around the clock, and tips may be provided anonymously.
For more information about the practice of female genital mutilation/cutting, view this Fact Sheet on FGM from the U.S. Department of State or visit the United Nations' Zero Tolerance Day website.
U.S. Attorney Transition BeginsRead the Press Release
WASHINGTON – Continuing the practice of new administrations, President Biden and the Department of Justice have begun the transition process for the U.S. Attorneys.
“We are committed to ensuring a seamless transition. Until U.S. Attorney nominees are confirmed, the interim and acting leaders in the U.S. Attorneys’ Offices will make sure that the department continues to accomplish its critical law enforcement mission, vigorously defend the rule of law and pursue the fair and impartial administration of justice for all,” said Acting Attorney General Wilkinson.
Earlier this year, nearly all presidential appointees from the previous administration offered their resignations, though U.S. Attorneys and U.S. Marshals were asked to temporarily remain in place. Prior to the beginning of this U.S. Attorney transition process, approximately one-third of the U.S. Attorneys’ Offices were already led by acting or interim leadership.
President Biden will make announcements regarding his nominations to the Senate of new U.S. Attorneys as that information becomes available.
Indian Cancer Drug Manufacturer Agrees to Plead Guilty and Pay $50 Million for Concealing and Destroying Records in Advance of FDA InspectionRead the Press Release
Indian drug manufacturer Fresenius Kabi Oncology Limited (FKOL) has agreed to plead guilty to concealing and destroying records prior to a 2013 U.S. Food and Drug Administration (FDA) plant inspection and pay $50 million in fines and forfeiture, the Department of Justice announced today.
In a criminal information filed in federal court in the District of Nevada and unsealed today, the United States charged FKOL with violating the Federal Food, Drug and Cosmetic Act by failing to provide certain records to FDA investigators. As part of a criminal resolution, FKOL agreed to plead guilty to the misdemeanor offense, pay a criminal fine of $30 million, and forfeit an additional $20 million. FKOL also agreed to implement a compliance and ethics program designed to prevent, detect, and correct violations of U.S. law relating to FKOL’s manufacture of cancer drugs intended for terminally ill patients.
“By hiding and deleting manufacturing records, FKOL sought to obstruct the FDA’s regulatory authority and prevent the FDA from doing its job of ensuring the purity and potency of drugs intended for U.S. consumers,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “FKOL’s conduct put vulnerable patients at risk. The Department of Justice will continue to work with FDA to prosecute drug manufacturers who obstruct these inspections.”
“Pharmaceutical companies that obstruct FDA inspections jeopardize patient safety,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Maintaining the integrity of records and data is a critical part of drug manufacturing, and our office will continue prosecuting those that obstruct FDA inspections by destroying records or other means.”
“FDA inspections of pharmaceutical manufacturing facilities help ensure the strength, quality and purity of our medicines. Any attempt to obstruct or interfere with these inspections threatens the public health,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs of the FDA. “We will continue to aggressively investigate and present any such obstruction for prosecution.”
According to court documents, FKOL owned and operated a manufacturing plant in Kalyani, West Bengal, India, that manufactured active pharmaceutical ingredients (APIs) used in various cancer drug products distributed to the United States. The government alleges that prior to a January 2013 FDA inspection of the Kalyani facility, FKOL plant management directed employees to remove certain records from the premises and delete other records from computers that would have revealed FKOL was manufacturing drug ingredients in contravention of FDA requirements. Kalyani plant employees removed computers, hardcopy documents, and other materials from the premises and deleted spreadsheets that contained evidence of the plant’s violative practices.
This case is being prosecuted by Assistant Director Clint Narver and Trial Attorney Natalie Sanders of the Department of Justice’s Consumer Protection Branch, with assistance from Assistant U.S. Attorney Nicholas D. Dickinson of the U.S. Attorney’s Office for the District of Nevada. The FDA’s Office of Criminal Investigations, Los Angeles Field Office, investigated the case. The Central Bureau of Investigation in India provided invaluable assistance to U.S. authorities in the investigation of this matter.
North Carolina Return Preparer Sentenced to 50 Months in Prison for Multi-Year Tax Fraud SchemeRead the Press Release
A Rocky Mount, North Carolina, tax return preparer was sentenced to 50 months in prison today for conspiring to defraud the United States, announced 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.
According to court documents and statements made in court, between 2009 and 2017, Adrienne Williams owned and operated Ultimate Tax Service, a return preparation business, which had an office in Rocky Mount, North Carolina. During that time period, Williams and at least two of her employees at Ultimate Tax Service prepared false tax returns for clients. The returns claimed fraudulent refunds by including, among other falsities, bogus federal income tax withholdings. In all, Williams and her co-conspirators sought to defraud the IRS of more than $3.5 million.
In addition to the term of imprisonment, U.S. District Court Judge Terrence W. Boyle ordered Williams to serve three years of supervised release and pay $4,830,723 in restitution to the IRS.
Acting Deputy Assistant Attorney Goldberg and U.S. Attorney Higdon commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Michael L. Jones of the Tax Division and Assistant U.S. Attorney Susan B. Menzer, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Readout of Acting Attorney General Monty Wilkinson, FBI Director Christopher Wray and Assistant to the President for Homeland Security Dr. Elizabeth Sherwood-Randall from the Funeral of FBI Special Agent Daniel AlfinRead the Press Release
Acting United States Attorney General Monty Wilkinson, FBI Director Christopher Wray and President Joe Biden’s Homeland Security Advisor Dr. Elizabeth Sherwood-Randall represented the United States Government’s official delegation today at the funeral service for fallen FBI Special Agent Daniel Alfin in Fort Lauderdale, Florida.
Special Agent Alfin was killed in the line of duty along with FBI Special Laura Schwartzenberger on Tuesday, while executing a search warrant investigating violent crimes against children in Sunrise, Florida. Four other FBI Special Agents were injured during the incident. The service was held at the Hard Rock Stadium in Fort Lauderdale and was attended by hundreds of law enforcement officials from throughout the country.
“During his 12 years of service as an FBI Special Agent, Dan Alfin brought to the job passion and determination in all that he did,” said Acting Attorney General Monty Wilkinson. “It takes a person like Dan with highly specialized skills to investigate crimes involving violence against children day after day. Countless children around the world are safer today because of Dan’s work and many child predators are behind bars where they can do no further harm. Our DOJ family and the nation mourn the heartbreaking loss of one of the best the FBI had in its ranks, and our thoughts and sympathy are with Dan’s family, friends and fellow special agents from the Miami Field Office.”
“FBI Special Agent Daniel Alfin, like Special Agent Laura Schwartzenberger, was an American hero who dedicated his life to keeping our country, especially our children, safe," said Dr. Sherwood-Randall Assistant to the President for Homeland Security. "He worked tirelessly to protect the most vulnerable among us from unimaginably heinous acts. President Biden knows the toll of such sudden loss and is keeping the Alfin family in his heart. It was a privilege to join the moving services this weekend alongside Acting Attorney General Wilkinson and FBI Director Wray. I want to express my deep thanks to everyone who participated in honoring the two noble special agents slain in the line of duty on February 2.”
Director Wray’s eulogy of Special Agent Alfin can be found at https://www.fbi.gov/news/speeches
The delegation attended funeral services for FBI Special Agent Schwartzenberger in Fort Lauderdale yesterday.
Readout of Acting Attorney General Monty Wilkinson, FBI Director Christopher Wray and Assistant to the President for Homeland Security Dr. Elizabeth Sherwood-Randall from the Funeral of FBI Special Agent Laura SchwartzenbergerRead the Press Release
Acting United States Attorney General Monty Wilkinson, FBI Director Christopher Wray and President Joe Biden’s Homeland Security Advisor Dr. Elizabeth Sherwood-Randall led a United States Government delegation to Fort Lauderdale, Florida today that attended the funeral service for fallen FBI Special Agent Laura Schwartzenberger.
Special Agent Schwartzenberger was killed in the line of duty along with FBI Special Agent Daniel Alfin on Tuesday, while executing a search warrant investigating violent crimes against children in Sunrise, Florida. Four other FBI Special Agents were wounded during the incident. The service was held at the Hard Rock Stadium in Fort Lauderdale and was attended by hundreds of law enforcement officials from throughout the country.
"During her 15 years as an FBI Special Agent, Laura Schwartzenberger was selfless, tireless, brave and committed to protecting some of society's most vulnerable: its children," said Acting Attorney General Wilkinson. "Laura pursued justice and she did so with dedication and integrity. We honor Laura's memory for all she gave to her country, to her colleagues and to the many others whose lives she touched and changed profoundly for the better. The United States Department of Justice family and a grateful nation mourn this devastating loss alongside Laura's husband Jason, and two sons, Gavin and Damon."
“FBI Special Agent Laura Schwartzenberger was an American hero who dedicated her life to keeping our country, our citizens and especially our children safe,” said Dr Sherwood-Randall Assistant to the President for Homeland Security. “Her courage is an inspiration for all of us and I know President Biden is praying for Laura and her loved ones as they grieve this profound loss.”
Director Wray’s eulogy of Special Agent Schwartzenberger can be found at https://www.fbi.gov/news/speeches/remembering-special-agent-laura-schwartzenberger-020621
The official delegation will attend funeral services for FBI Special Agent Daniel Alfin Hard Rock Stadium tomorrow afternoon at 2:00PM ET. Due to COVID-19, the funeral service is restricted to invited guests only but the public may view the service on a live webcast at Service - Hard Rock Stadium.
Woman Pleads Guilty to Accessing and Releasing Sensitive, Non-public InformationRead the Press Release
An Iowa woman pleaded guilty today for unlawfully using a former Department of Justice contractor’s government computer to access government records and to obtain sensitive, non-public law enforcement information, announced Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division.
According to admissions made in connection with her guilty plea, Rachel Manna, 33, of West Des Moines, was acquainted with Danielle Taff, who was employed as a contractor paralegal by the U.S. Attorney’s Office for the Southern District of Iowa. Taff was assigned to the office’s Civil Division, where she worked exclusively on matters related to civil forfeiture and was neither required nor authorized to access files and information related to the district’s investigation and prosecution of criminal cases.
Manna admitted that in the spring of 2018, she asked Taff to obtain non-public information about certain defendants in a criminal investigation and prosecution being handled by the U.S. Attorney’s Office. As a result, on or about May 16, 2018, Taff used her U.S. Department of Justice computer to access criminal files stored on the district’s shared electronic data storage drive, including reports of law enforcement interviews with at least two individuals who cooperated with the district in a drug-trafficking investigation. Taff then used her cell phone to take approximately 30 photographs of the sensitive, non-public documents related to the drug-trafficking investigation.
After photographing the documents, Taff shared them with Manna, who subsequently shared the photographs with several individuals on Facebook. As a result, in October 2018, other individuals posted those photographs to a Facebook group dedicated to outing “snitches,” or law enforcement cooperators, in the Des Moines region. Among other sensitive information, the photographs taken by Taff and subsequently posted on Facebook identified at least two cooperators in the drug-trafficking investigation by name and other personal identifiers.
Taff pleaded guilty in November 2020 for her role in the scheme and is scheduled to be sentenced March 9. Sentencing for Manna is scheduled for June 4.
The Department of Justice Office of the Inspector General, Chicago Field Division, is investigating the case. Trial Attorneys Erica O’Brien Waymack and Matthew Palmer-Ball of the Criminal Division’s Public Integrity Section are prosecuting the case.
Louisiana Tax Preparer Sentenced to Prison for Filing Fraudulent ReturnsRead the Press Release
A Louisiana tax return preparer was sentenced to 24 months in prison today for conspiring to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and the U.S. Attorney’s Office for the Eastern District of Louisiana.
According to court documents, Michegel Butler of St. John the Baptist Parish, Louisiana, owned Crown Tax Service LLC, a tax preparation business located in Kenner, Louisiana. From approximately January 2013 through April 2013, Butler and others conspired to defraud the United States by preparing returns that fraudulently inflated clients’ tax refunds. Some of the returns included false Schedule C business income and expenses, dependents, and dependent care expenses. To substantiate the false income and expenses, Butler and others directed clients to create bogus receipts. In total, Butler caused over $100,000 in tax losses.
In addition to the term of imprisonment, U.S. District Judge Carl J. Barbier ordered Butler to serve three years of supervised release and to pay approximately $90,856 in restitution to the United States.
Deputy Assistant Attorney General Goldberg and the U.S. Attorney’s Office for the Eastern District of Louisiana commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Jessica Kraft of the Tax Division and Assistant U.S. Attorney Dall Kammer, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Settles Retaliation Claim Against Florida Electrician CompanyRead the Press Release
The Justice Department today announced that it reached a settlement agreement with Service Minds Inc., dba Mister Sparky (Service Minds), a company that provides contract electrical services to residential customers in Florida and Alabama. The settlement resolves a claim that the company retaliated against a work-authorized job applicant, in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA), when he and his wife challenged a U.S. citizens-only hiring rule that a recruiter had wrongly claimed was the company’s policy.
“Employers should not retaliate against workers for speaking up when they are told they cannot get a job because they are not a U.S. citizen,” said Gregory B. Friel, Deputy Assistant Attorney General of the Civil Rights Division. “We are grateful that the applicant and his wife objected to what would have been an unlawful practice when they learned about it.”
The department initiated its investigation after a woman filed a charge on behalf of her husband, an electrician in Ocala, Florida, who applied for a job with Service Minds. The investigation determined that although the applicant was qualified for the position, a company recruiter incorrectly told him that the company could only hire U.S. citizens. The applicant and his wife sent the recruiter information about the INA’s prohibition against citizenship status discrimination and objected to the company’s policy. The Civil Rights Division’s Immigrant and Employee Rights Section (IER) found evidence that, based on the electrician’s qualifications and the company’s past hiring practices, the company would have hired him if he and his wife had not raised an objection. The INA’s anti-discrimination provision generally prohibits employers from retaliating against individuals because they object to conduct that is illegal under the provision, or for exercising other rights protected under that provision.
Under the terms of the settlement agreement, Service Minds will, among other things, give the former employee front pay and back pay (including benefits) plus interest, totaling over $24,500; pay a civil penalty; train its workers; and be subject to departmental monitoring.
IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation. Learn more about citizenship status discrimination under the INA here.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also may contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
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Florida Businesswoman Pleads Guilty to Criminal Health Care and Tax Fraud Charges and Agrees to $20.3 Million Civil False Claims Act SettlementRead the Press Release
A Florida businesswoman has agreed to resolve criminal charges and civil claims arising out of false claims to the United States for braces and other durable medical equipment (DME), the Justice Department announced today.
Kelly Wolfe, of Indian Rocks Beach, Florida, has pleaded guilty to conspiracy to commit health care fraud and filing a false tax return. She faces a maximum penalty of 13 years in federal prison. A sentencing date has not yet been set. Wolfe’s company, Regency Inc. (Regency), has also agreed to a civil resolution.
“The department is committed to ensuring that federal health care program providers do not place their own financial gain over patients’ clinical needs,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “When medical professionals and companies knowingly commit fraud to maximize their profits, we will hold them accountable for their unlawful conduct.”
“Fraud and deceit in our nation’s health care system is not only unacceptable, it is illegal.” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “The U.S. Attorney’s Office will continue to aggressively work with our investigative partners in rooting out these illicit practices to ensure that patients receive the optimum care they deserve.”
“This pernicious telefraud scheme’s ambitions were cut short by the exceptional partnership of our law enforcement partners,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG). “This guilty plea and the forfeiture of tens of millions of dollars back to the U.S. Treasury show our determination to stop such damaging fraud schemes and to bring fraudsters to justice.”
“The FBI is laser-focused on exposing those who cheat our government health care programs," said Special Agent in Charge of the FBI Tampa Division Michael McPherson. "American taxpayers can be assured the FBI and its law enforcement partners are working vigorously to protect federally funded health care programs from deception and greed.”
“Honest and law-abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets," stated Special Agent in Charge Brian Payne of IRS Criminal Investigation. "Fleecing the health care industry effectively robs us all, and tax fraud undermines the integrity of our nation’s tax system. Those who engage in these swindles should know they will not go undetected and will be held accountable."
“The VA OIG’s continued oversight of CHAMPVA, which provides community care to family members of disabled veterans, is one of the agency’s highest priorities because it safeguards the integrity of VA’s health care programs,” stated David Spilker, Special Agent in Charge at the Department of Veterans Affairs Office of Inspector General (VA OIG). “As detailed in the charging documents, the defendant’s criminal actions resulted in a massive fraud being committed against both CHAMPVA and Medicare, ultimately impacting the beneficiaries of those programs. The VA OIG commends the extensive cooperation between our law enforcement partners in this important investigation.”
According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies — or, rather, DME fronts — using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and the Civilian Health and Medical Program of the VA. The conspirators claimed that the unusually high volume of claims reflected the use of telemedicine procedures, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no telehealth interaction with the beneficiaries.
Wolfe further admitted that, for tax year 2017, she had purchased numerous personal items and services using Regency’s funds. Rather than properly report this as income to the IRS, Wolfe falsely classified her personal spending as purported business expenditures.
In addition to Wolfe’s criminal plea, Wolfe and Regency have agreed to a civil settlement of up to $20,332,516, to resolve allegations that they violated the False Claims Act in a number of ways, including falsifying documentation in order to fraudulently establish DME corporations to bill for medically unnecessary DME equipment, and engaging in improper marketing practices that violated the Anti-Kickback Statute. The civil settlement is based on Wolfe and Regency’s ability to pay. The United States previously obtained an emergency temporary restraining order and preliminary injunction enjoining the conduct and assets of Wolfe, Regency, and several of their alleged co-conspirators, in a civil injunctive action pursued by the U.S. Attorney’s Office for the Middle District of Florida. The injunctive action is captioned U.S. v. Regency, Inc., et al., No. 8:19-cv-803 (M.D. Fla.).
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against Wolfe and Regency by Condra Albright, a former Regency employee. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The qui tam case is captioned U.S. ex rel. Albright v. Regency, Inc., et al., No. 8:19-cv-686 (M.D. Fla.).
The criminal case is being prosecuted by the U.S. Attorney’s Office for the Middle District of Florida with assistance from the HHS OIG, the FBI’s Criminal Investigation Division, the VA OIG, and the IRS Office of Criminal Investigations. The civil case is being handled by the Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Middle District of Florida with assistance from the HHS OIG.
Except for the conduct admitted in connection with Wolfe’s criminal plea, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
El Departamento de Justicia Resuelve la Acusación de Represalias por Parte de una Compañía de Electricista en FloridaRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Service Minds Inc., que opera bajo el nombre de Mister Sparky (Service Minds), una compañía que presta servicios eléctricos a clientes residenciales en Florida y Alabama. El acuerdo resuelve una acusación de que la compañía había tomado represalias contra un postulante con autorización para trabajar, en contra de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) cuando él y su esposa cuestionaron una norma que restringía la contratación únicamente a ciudadanos estadounidenses que un reclutador había declarado, erróneamente, que era la política de la compañía.
«Los empleadores no deben tomar represalias contra trabajadores que dicen lo que piensan cuando se les dice que no pueden conseguir un trabajo por no ser ciudadanos de los EE. UU.», dijo Gregory B. Friel, el Fiscal General Auxiliar Adjunto de la División de Derechos Civiles. «Estamos muy agradecidos que el postulante y su esposa se opusieron, al enterarse de lo mismo, a lo que hubiera sido una práctica ilegal».
El Departamento inició su investigación después de que una mujer presentó una denuncia en nombre de su esposo, un electricista en Ocala, Florida, que había solicitado un trabajo con Service Minds. La investigación determinó que, aunque el postulante reunía los requisitos para el puesto, un reclutador de la compañía le dijo, erróneamente, que la compañía solamente contrata a ciudadanos estadounidenses. El postulante y su esposa enviaron al reclutador información sobre la prohibición de la discriminación por motivos de estatus de ciudadanía y se opusieron a la política de la compañía. La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles halló pruebas de que, según las cualificaciones del electricista y las prácticas de contratación de la compañía en el pasado, la compañía lo habría contratado si él y su mujer no hubieran formulado una objeción. Por lo general, la disposición antidiscriminatoria de la INA prohíbe que los empleadores tomen represalias contra individuos por haberse opuesto a una conducta que, en virtud de la disposición, es ilegal, o por haber ejercido otros derechos amparados por esa disposición.
Conforme los términos del acuerdo conciliatorio, entre otras cosas, Service Minds proporcionará pagos por anticipado y pagos retroactivos (los que incluyen beneficios) más los intereses aplicables, una suma que en su totalidad asciende a 24.500 $; pagará una sanción civil; capacitará a sus empleados y se someterá a la supervisión del Departamento.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias o la intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery
Justice Department Reaches Settlement with Old Dominion University to Resolve Disability Discrimination ComplaintRead the Press Release
Today the Justice Department announced a settlement agreement with Old Dominion University (ODU) in Norfolk, Virginia, to resolve its investigation into a complaint that ODU discriminated and retaliated against a graduate student based on disability and her related request for reasonable modifications of policy. The Civil Rights Division conducted the investigation under Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973.
“Students should never have to choose between their right to request reasonable modifications of policy for their disabilities and their academic success,” said Gregory B. Friel, Deputy Assistant Attorney General of the Justice Department's Civil Rights Division. “This agreement reflects the critical role colleges and universities — and their faculty and staff — play in delivering on the promise of the ADA and Section 504. By working in good faith with students to provide reasonable modifications of policy, colleges and universities can ensure that students with disabilities have full and equal access to educational opportunities at the highest levels of academic achievement.”
The investigation found that the complainant requested acknowledgement of her right to reasonable modifications of policy and was penalized for doing so in violation of Title II and Section 504. The department concluded that after a dispute about the student’s request and based on her disability, ODU terminated the student’s working relationship with her professor-advisor, removed the student from the professor’s lab, separated her from ongoing research and withdrew her participation at a professional conference. The complainant was forced to change her graduate course of study and find a new advisor.
ODU cooperated throughout the investigation and committed to complying fully with its legal obligations under the ADA and Section 504. The settlement agreement requires ODU to develop and disseminate a retaliation policy that explains the ADA and Section 504 obligations applicable to all staff and faculty and clarifies that ODU will impose consequences, up to and including termination, on those who violate the policy. ODU will also provide comprehensive ADA training to administrators, faculty and staff. Finally, the agreement requires that ODU pay $40,000 in monetary damages to the complainant.
The enforcement of the ADA and Section 504 of the Rehabilitation Act 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/.
Acting Attorney General Monty Wilkinson Issues Statement on the Shootings of FBI Special Agents in FloridaRead the Press Release
This morning FBI Special Agent Daniel Alfin and Special Agent Laura Schwartzenberger were killed in the line of duty and three other agents were wounded while executing a federal court-ordered search warrant in a crimes against children investigation in Sunrise, Florida. Acting Attorney General Monty Wilkinson issued the following statement:
“We mourn the tragic loss of two of our FBI colleagues who were killed today in the line of duty,” said Acting Attorney General Monty Wilkinson. “Our thoughts are with their families and loved ones and with their three colleagues who were shot in today’s devastating events. On this dark day, we pay tribute to the brave men and women of the FBI who put their lives on the line every day in support of our mission. We will never forget the ultimate sacrifice made by these special agents.”
Former Colorado Police Officer Sentenced on Sexual Assault ChargesRead the Press Release
Curtis Arganbright, 43, a former Westminster Police Department (WPD) officer, was sentenced today in federal court in Denver, Colorado, to 72 months in prison and three years supervised release. In addition to his prison sentence, Arganbright will forfeit his law enforcement certification and be required to register as a sex offender.
Arganbright previously pleaded guilty to one count of violating the civil rights of a woman whom he sexually assaulted.
“The Department of Justice will not tolerate law enforcement officers who use their authority to prey on vulnerable victims and sexually assault them,” said Deputy Assistant Attorney General Gregory B. Friel of the Civil Rights Division. “The Civil Rights Division will continue to vigorously prosecute these cases in an effort to secure justice for the victims of these reprehensible crimes and ensure that perpetrators who use their unique power to take advantage of others are held accountable.”
“Curtis Arganbright’s heinous conduct not only victimized a person in his care, it shattered the public’s trust given to him as a police officer,” said U.S. Attorney Jason Dunn for the District of Colorado. “This sentence is important because it demonstrates my commitment and that of this office to hold accountable those in positions of authority and to seek full justice for victims.”
“Curtis Arganbright abused his power and authority as a peace officer to terrorize and victimize a member of our community while on duty. Such behavior damages the public’s trust in law enforcement officials and is contrary to the oath we all take. The dedication of our agents, our partners at the Broomfield and Westminster Police Departments, and the U.S. Attorney’s Office demonstrates our commitment to holding all law enforcement officials who abuse their power and violate the constitution accountable for their actions,” said Denver FBI Special Agent in Charge Michael Schneider. “The FBI takes allegations of civil rights and color of law violations extremely seriously and will always seek justice for the victims and our community.”
According to court documents, Arganbright worked as a police officer for WPD in August 2017. While on duty in the early morning hours of Aug. 24, 2017, Arganbright responded to a call of a theft at St. Anthony Hospital. After hospital personnel declined to press charges against the victim, Arganbright agreed to drive the victim home. During the transport home, Arganbright pulled off the main road and sexually assaulted the victim.
The Denver Division of the FBI conducted the investigation, with substantial assistance from the Broomfield Police Department. The case was prosecuted by Assistant U.S. Attorney Bryan Fields of the District of Colorado and Trial Attorneys Maura White and Katherine DeVar of the Civil Rights Division of the U.S. Department of Justice.
Ex oficial de Policía condenado por cargos de agresión sexualRead the Press Release
Curtis Arganbright, 43, ex oficial del Departamento de Policía de Westminster (WPD), fue sentenciado hoy en la Corte Federal de Denver, Colorado, a 72 meses en prisión y tres años de libertad supervisada. Además de su sentencia de prisión, Arganbright perderá su certificado del orden público y se requerirá que se registre como agresor sexual.
Arganbright se declaró culpable previamente a un cargo de violación de los Derechos Civiles de una mujer a la que atacó sexualmente.
“El Departamento de Justicia no tolerará que los oficiales de orden público usen su autoridad para hacer presas a víctimas vulnerables y que las ataquen sexualmente”, dijo el Subsecretario del Fiscal General Gregory B. Friel de la División de Derechos Civiles. “La División de Derechos Civiles continuará persiguiendo energéticamente estos casos en un esfuerzo para garantizar justicia a las víctimas de estos crímenes reprensibles y garantizar que se hace responsable a los perpetradores que utilizan su poder único para sacar ventaja de otros”.
“El infame comportamiento de Curtis Arganbright no sólo de victimizar a una persona bajo su cuidado, destruyó la confianza que le tenía el púbico como oficial de policía”, dijo el Fiscal de EE.UU. Jason Dunn para el Distrito de Colorado. “Esta sentencia es importante porque demostrará mi compromiso, y el de esa oficina, para hacer responsables a aquéllos en posiciones de autoridad y para buscar la justicia plena para las víctimas”.
“Curtis Arganbright abusó de su poder y autoridad como oficial de la paz al aterrorizar y victimizar a un miembro de nuestra comunidad mientras estaba de guardia. Tal comportamiento daña la confianza del público en los oficiales del orden público y es contrario al juramento que hacemos”. La dedicación de nuestros agentes, nuestros socios en los Departamentos de Policía de Broomfield y Westminster y la Oficina del Fiscal de EE.UU. demostraron su compromiso para hacer responsables de sus actos a todos los oficiales del orden público que abusan de su poder y violan la constitución”, dijo el Agente Especial del FBI de Denver a Cargo, Michael Schneider. “El FBI tomas los alegatos de violación a la ley de Derechos Civiles y color extremadamente serios y siempre buscará justicia para las víctimas y nuestra comunidad”.
De acuerdo con los documentos de la corte, Arganbright trabajó como oficial de la policía de WPD en agosto de 2017. Mientras se encontraba en funciones, temprano en la mañana del 24 de agosto de 2017, Arganbright respondió a una llamada de robo en el Hospital de St. Anthony. Después el personal del hospital se negó a presentar cargos contra la víctima. Arganbright aceptó llevar a la víctima a su casa. Durante el transporte a casa, Arganbright se salió del camino principal y agredió sexualmente a la víctima.
La División de Denver del FBI llevó a cabo una investigación, con asistencia del Departamento de Policía de Broomfield. El caso fue perseguido por el Asistente del Fiscal de EE.UU. del Distrito de Colorado y los Abogados Litigantes Maura White y Katherine DeVar de la División de Derechos Civiles del Departamento de Justicia de EE.UU.
Justice Department and EPA Announce Settlement with Stericycle Inc. to Address Environmental Violations at Medical Waste IncineratorRead the Press Release
The Justice Department and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Illinois-based Stericycle Inc. resolving alleged violations of the federal Clean Air Act and Utah air quality regulations at its medical waste incinerator in North Salt Lake, Utah.
The settlement, set forth in a consent decree lodged with the U.S. District Court for the District of Utah, requires Stericycle to comply with EPA regulations applicable to medical waste incinerators, pay a $600,000 civil penalty, and conduct a Supplemental Environmental Project requiring the company to spend at least $2 million to purchase low- emitting school buses for a local school district.
Today’s settlement resolves violations alleged in the United States’ complaint, which was also filed today. The complaint alleges that Stericycle operated its waste incinerator in a manner that exceeded regulatory limits for nitrogen oxides (NOx), failed to properly conduct stack tests, and failed to comply with reporting requirements. EPA investigated the alleged violations in cooperation with the Utah Division of Air Quality, which concluded its own action for related violations several years ago.
“Medical waste incinerators must operate in strict compliance with our nation’s clean air laws,” said Jean E. Williams, Deputy Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Stericycle has installed new pollution controls and made operational changes to remedy the violations alleged in the complaint.”
“This settlement will benefit all who live in and visit North Salt Lake,” said EPA Acting Regional Administrator Debra H. Thomas. “In addition to NOx reductions at the facility, the settlement requires Stericycle to replace old, high-emitting school buses for a local school district, providing cleaner air for school children and nearby neighborhoods.”
The school bus replacement is a Supplemental Environmental Project, or SEP, which is an environmentally beneficial project required in a settlement that is not otherwise required by law. Diesel emissions reduction SEPs have been expressly authorized by Congress. EPA expects the SEP in this case will replace as many as 20 buses, leading to significant reductions in NOx, carbon monoxide, and diesel particulate matter and substantial fuel savings.
NOx is a key component in the formation of ground-level ozone, a pollutant that irritates lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
The consent decree is subject to a 30-day public comment period and final court approval. To view a copy of the consent decree and for information on how to submit a comment, visit www.justice.gov/enrd/Consent_Decrees.html.
Justice Department Recognizes the 10th Annual Human Trafficking Prevention MonthRead the Press Release
The Department of Justice today commemorates the 10th annual National Slavery and Human Trafficking Prevention Month and declares a continued commitment to combatting human trafficking in all its forms. The fight against human trafficking remains one of the department’s highest priorities, and the department will remain relentless in its efforts to bring traffickers to justice and seek justice for survivors.
Human trafficking is a crime that preys on some of the most vulnerable members of our society. It is a crime of exploitation that deprives victims of their rights, freedom, and dignity. Traffickers exploit the vulnerable through forced labor or commercial sex involving children or involving adults subjected to force, fraud, or coercion.
“The Department of Justice is unflagging in its resolve to eradicate human trafficking and pursue justice for those affected by these heinous crimes,” said Acting Attorney General Monty Wilkinson.
The Department of Justice is committed to continuing its victim-centered, trauma-informed approach to detecting hidden human trafficking crimes, holding perpetrators accountable, and restoring the lives of survivors, while strengthening strategic anti-trafficking partnerships. In fiscal year 2020, the department brought 210 federal human trafficking cases against 337 defendants, and secured 309 convictions.
Already in 2021, the department secured a sentence of life imprisonment for an individual in Florida who directed, primarily through online communications and transactions, the sex trafficking of impoverished young children in the Philippines. As a result, Filipino authorities were able to rescue six child victims from the defendant’s co-conspirator in the Philippines. Also in 2021, the department successfully convicted a labor trafficker who used debts, threats, abuse, and assaults to compel the victim’s unpaid labor for 10 hours a day, six to seven days a week, in the defendant’s North Carolina nail salon. The department also secured a life sentence and over $900,000 in restitution against a Texas sex trafficker who compelled women and girls to engage in commercial sex through violence, isolation, intimidation, and threats.
The department-wide approach to combating human trafficking extends beyond the prosecutions brought by U.S. Attorneys’ Offices, the Human Trafficking Prosecution Unit, and the Child Exploitation and Obscenity Section, to include interagency enforcement initiatives and strategic partnerships with global anti-trafficking allies. These efforts increasingly utilize specialized expertise in money laundering, financial crimes, and transnational organized crime to enhance investigations and prosecutions.
The FBI’s Crimes Against Children and Human Trafficking Unit develops innovative strategies on an ongoing basis to enhance detection and investigation of hidden human trafficking crimes. The Justice Department’s Office for Victims of Crime, as the largest federal funding source for trafficking victim services, issued over 400 grants totaling over $270 million, enabling its grantees to serve 9,854 clients. In addition, the Office for Victims of Crime launched its Human Trafficking Capacity Building Center to assist local and tribal organizations in starting, sustaining, and expanding their anti-trafficking efforts. The department continues to to elevate the voices of courageous survivors, ensuring that their expertise and insights inform anti-trafficking efforts.
During this, the 10th annual National Slavery and Human Trafficking Prevention Month, the Department of Justice reaffirms its commitment to combatting the heinous crime of human trafficking, holding perpetrators accountable, and seeking justice for survivors.
Federal Court Restrains Tampa Pharmacy and Two Individuals from Dispensing Opioids or Other Controlled SubstancesRead the Press Release
A federal court in Florida issued a temporary restraining order enjoining a Tampa pharmacy and two of its employees from dispensing opioids and other controlled substances, the Department of Justice announced today.
In a civil complaint unsealed in the Middle District of Florida, the United States alleges that WeCare Pharmacy, its pharmacist owner Qingping Zhang, and pharmacy technician Li Yang, and another related corporate entity, L&Y Holdings LLC, repeatedly dispensed opioids in violation of the Controlled Substances Act. The complaint alleges that over a period of several years, the defendants dispensed highly addictive and highly abused prescription opioids while ignoring “red flags” — that is, obvious indications of drug diversion and drug-seeking behavior. U.S. District Judge Mary Scriven granted the government’s request for a temporary restraining order, which was filed along with the complaint.
“Pharmacists have an important role in ensuring that prescriptions for controlled substances are legitimate,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its partners to enforce the law where evidence shows pharmacists abdicated their responsibilities when dispensing these powerful drugs.”
“Medical professionals, including pharmacists, must utilize the best methods of efficacy and accountability when dispensing and distributing dangerous medications,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Failure to comply with our federal laws and standards places the public at great risk and cannot be tolerated. We intend to work with our law enforcement partners to hold responsible parties accountable for their actions and keep our citizens safe.”
“Pharmacies and their pharmacists have the responsibility to flag suspicious prescriptions written by doctors for highly sought after opioid medications, in order to prevent them from being dispensed,” said Special Agent in Charge Keith Weis of the Drug Enforcement Agency’s Miami Field Division. “When they fail to carry out this important responsibility, the dispensing of opioid medication becomes a real threat to the health of legitimate patients, and also gives pill seekers a steady supply to either fuel their addiction or illegally distribute them in our communities.”
The complaint alleges that the defendants failed to take steps required to resolve red flags and ensure the legitimacy of prescriptions before filling them. According to court documents, the prescriptions dispensed by the defendants often involved highly abused opioid painkillers such as oxycodone and hydromorphone, almost always in the highest-strength formulations generally available. The complaint alleges that the defendants repeatedly filled prescriptions written by a particular doctor without examining the red flags those prescriptions presented. The complaint seeks civil penalties as well as a permanent injunction against the defendants.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
The United States is represented by Assistant U.S. Attorney Sean P. Keefe, and Trial Attorney Scott Dahlquist of the Justice Department’s Consumer Protection Branch. The investigation is being conducted by the DEA.
El Departamento de Justicia reconoce el 10mo Mes de Prevención de Tráfico HumanoRead the Press Release
El Departamento de Justicia conmemora hoy el 10mo Mes Nacional de Prevención de Esclavitud y Tráfico Humano y declara su compromiso continuo para combatir el trafico humano en todas sus formas. La lucha contra el tráfico humano continúa siendo una de las principales prioridades del departamento y el departamento permanecerá incesante en sus esfuerzos para llevar a los traficantes ante la justicia y buscar justicia para los sobrevivientes.
El tráfico humano es un crimen que hace presa a algunos de los miembros más vulnerables de nuestra sociedad. Es un crimen de explotación que priva a las víctimas de sus derechos, libertad y dignidad. Los traficantes explotan a los vulnerables por medio de labor forzada o sexo comercial que involucra a niños o adultos sujetos a fuerza, fraude o coerción.
“El Departamento de Justicia es inquebrantable en su resolución para erradicar el tráfico humano y perseguir justicia para quienes hayan sido afectados por estos atroces crímenes”, dijo el Fiscal General Interino Monty Wilkinson.
El Departamento de Justicia está comprometido con continuar su enfoque centrado en la víctima e informado en el trauma para detectar crímenes de tráfico humano escondido, haciendo responsables a los perpetradores y restaurando las vidas de los sobrevivientes, mientras fortalece las alianzas estratégicas contra el tráfico. Durante el año fiscal 2020, el departamento realizó 210 casos de tráfico humano federales contra 337 acusados y aseguró 309 convicciones.
En 2021 el departamento ya aseguró una sentencia de cadena perpetua a un individuo en Florida que dirigió, principalmente mediante comunicaciones y transacciones en línea, el tráfico sexual de niños pequeños pobres en Filipinas. Como resultado, las autoridades filipinas pudieron rescatar a seis niños víctimas del co conspirador del acusado en Filipinas. También en 2021, el departamento sentenció exitosamente a un traficante laboral que usaba deudas, amenazas, abusos y asaltos para obligar el trabajo de la víctima durante 10 horas al día, siete días a la semana, en el salón de uñas en Carolina del Norte del acusado. El departamento también aseguró una cadena perpetua y más de $900,000 en restitución en contra de un traficante sexual de Texas que obligó a mujeres y niñas a participar en sexo comercial por medio de violencia, aislamiento, intimidación y amenazas.
El amplio enfoque del departamento para combatir el tráfico humano se extiende más allá de los procesamientos llevados ante las Oficinas del Fiscal de EE.UU., la Unidad de Procesamiento de Tráfico Humano y la Sección de Explotación de Niños y de Obscenidad, para incluir iniciativas de ejecución entre agencias y asociaciones estratégicas con aliados anti tráfico. Estos esfuerzos utilizan conocimientos cada vez más especializados sobre lavado de dinero, crímenes financieros y delincuencia transnacional organizada para mejorar las investigaciones y acusaciones.
La Unidad de Crímenes contra Niños y Tráfico Humano del FBI desarrolla innovadoras estrategias de forma continua para mejorar la detección e investigación de crímenes de tráfico humano escondidos. La Oficina para Víctimas del Crimen del Departamento de Justicia como la fuente de financiamiento federal más grande de servicios para víctimas de tráfico, que ofreció más de 400 subvenciones sumando un total de $270 millones, que le permitió a los beneficiados servir a 9,854 clientes. Además, la Oficina para Víctimas del Crimen lanzó su Centro de Fortalecimiento para la Capacidad de Tráfico Humano, para ayudar a las organizaciones locales y tribales para comenzar, sostener y ampliar sus esfuerzos en contra del tráfico. El departamento continúa elevando las voces de los valientes sobrevivientes, asegurando que sus experiencias y conocimientos para informar a los esfuerzos en contra del tráfico.
Durante este 10mo Mes Nacional de Prevención de Esclavitud y Tráfico Humano, el Departamento de Justicia reafirma su compromiso para combatir el atroz crimen del tráfico humano, haciendo responsables a los perpetradores y buscando justicia para los sobrevivientes.
$2.25 Million Fund Available in Justice Department Settlement with AmtrakRead the Press Release
Today, Amtrak began accepting claims for monetary compensation for people with mobility disabilities who traveled or wanted to travel from or to one of the 78 stations listed below and encountered accessibility issues at the stations. Claims must be submitted by May 29, 2021.
On Dec. 2, 2020, the Department of Justice and Amtrak, the National Railroad Passenger Corporation, entered into an agreement to resolve the department’s findings of disability discrimination in violation of the Americans with Disabilities Act (ADA). Under the agreement, Amtrak will fix inaccessible stations and pay $2.25 million to victims hurt by inaccessibility at the 78 stations listed below.
To be eligible for monetary compensation, an individual must:
- Have a mobility disability;
- Be harmed physically or emotionally because of accessibility issues, including, for example, inaccessible parking; steep slopes or steps to get to the station; lack of directional signs; toilet rooms with inaccessible entrances, stalls, or sinks; high ticket counters; deteriorated platforms; and narrow routes at stations, at one or more the stations listed below between July 27, 2013, and Dec. 2, 2020;
- Have lived at, visited, or desired to visit a place closer to one or more of the stations listed below than an accessible, alternative Amtrak station; and
- Submit a claim form and declaration by mail, fax, email or online to the claims administrator by no later than May 29, 2021. Help is available from the settlement administrator for those who are unable to complete the claim form due to a disability.
Questions about making claims should be directed to the settlement administrator by any of the following methods:
- Online: AmtrakDisabilitySettlement.com
- Email: [email protected]
- Telephone (toll-free): 1-888-334-6165
- TTY Telephone (toll-free): 1-866-411-6976
Under the agreement, Amtrak has committed to make its intercity rail stations accessible, prioritizing stations with the most significant barriers to access. Over the next 10 years, Amtrak will design at least 135 stations to be accessible, complete construction at 90 of those stations, and have at least 45 more under construction. Amtrak will also train staff on ADA requirements and implement an agreed-upon process for accepting and handling ADA complaints. As part of this commitment, Amtrak recently established an Office of the Vice President of Stations, Properties & Accessibility to coordinate its compliance with the ADA.
The 78 stations are:
- Tuscaloosa, Alabama
- Yuma, Arizona
- Fort Morgan, Colorado
- Glenwood Springs, Colorado
- Granby, Colorado
- Old Saybrook, Connecticut
- Windsor, Connecticut
- Windsor Locks, Connecticut
- Newark, Delaware
- Gainesville, Georgia
- Jesup, Georgia
- Toccoa, Georgia
- Centralia, Illinois
- Effingham, Illinois
- Gilman, Illinois
- Homewood, Illinois
- Mattoon, Illinois
- Plano, Illinois
- Princeton, Illinois
- Rantoul, Illinois
- Summit, Illinois
- Connersville, Indiana
- Crawfordsville, Indiana
- Elkhart, Indiana
- Hammond-Whiting, Indiana
- Waterloo, Indiana
- Burlington, Iowa
- Creston, Iowa
- Mount Pleasant, Iowa
- Newton, Kansas
- Topeka, Kansas
- Maysville, Kentucky
- South Shore-South Portsmouth, Kentucky
- Lake Charles, Louisiana
- Aberdeen, Maryland
- Cumberland, Maryland
- Niles, Michigan
- Detroit Lakes, Minnesota
- St. Cloud, Minnesota
- Staples, Minnesota
- Picayune, Mississippi
- Kirkwood, Missouri
- La Plata, Missouri
- Poplar Bluff, Missouri
- Cut Bank, Montana
- East Glacier Park, Montana
- Malta, Montana
- Holdrege, Nebraska
- Elko, Nevada
- Hudson, New York
- Plattsburgh, New York
- Port Henry, New York
- Devils Lake, North Dakota
- Coatesville, Pennsylvania
- Downingtown, Pennsylvania
- Johnstown, Pennsylvania
- Lewistown, Pennsylvania
- Parkesburg, Pennsylvania
- Westerly, Rhode Island
- Dillon, South Carolina
- Alpine, Texas
- Marshall, Texas
- McGregor, Texas
- Helper, Utah
- Castleton, Vermont
- Montpelier, Vermont
- Ashland, Virginia
- Clifton Forge, Virginia
- Petersburg, Virginia
- Richmond Staples Mill Road, Virginia
- Bingen-White Salmon, Washington
- Kelso-Longview, Washington
- Wishram, Washington
- Charleston, West Virginia
- Harpers Ferry, West Virginia
- Hinton, West Virginia
- Columbus, Wisconsin
- Tomah, Wisconsin
This action was brought by the Disability Rights Section of the Justice Department’s Civil Rights Division. To read the settlement agreement, please click here, and to read the complaint, please click here.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Statement by Acting Attorney General Monty Wilkinson on the Pakistani Supreme Court's Ruling Relating to the Abduction and Murder of Daniel PearlRead the Press Release
Acting Attorney General Monty Wilkinson has released the following statement:
“We are deeply concerned by the Pakistani Supreme Court’s ruling affirming the acquittal of individuals convicted by a Pakistani trial court for the kidnapping and murder of Daniel Pearl. Ahmad Omar Saeed Sheikh has long been indicted in the United States and must be held accountable for his crimes. The release of those involved would be an affront to Daniel Pearl’s family, to other terrorism victims around the world, and to the cause of justice. While we remain grateful for the Pakistani government’s opposition to these acquittals on appeal, in light of the Supreme Court’s decision, the Department of Justice reiterates that the United States stands ready to take custody of Sheikh to stand trial here on the pending charges against him. He must not be permitted to evade justice for his charged role in Daniel Pearl’s abduction and murder.”
Six Charged in Connection with a $3 Million Paycheck Protection Program Fraud SchemeRead the Press Release
Six individuals were charged in an indictment with fraudulently obtaining approximately $1.5 million in Paycheck Protection Program (PPP) loans on behalf of five businesses based in Georgia and South Carolina.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Bobby L. Christine of the Northern District of Georgia; Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office; Special Agent in Charge Kevin Kupperbusch of the Small Business Association Office of Inspector General (SBA OIG) Eastern Region; and Special Agent in Charge Mark Maroni of the Treasury Inspector General for Tax Administration (TIGTA) Southeast Field Division made the announcement.
Rodericque Thompson, 43, of Atlanta, Georgia, Micah K. Baisden, 30, of Doraville, Georgia, Travis C. Crosby, 31, of Wellford, South Carolina, Keith A. Maloney Jr., 33, of Port Wentworth, Georgia, Tabronx W. Smith, 43, of Buford, Georgia, and Thomas D. Wilson, 30, of Atlanta, were charged in an indictment filed in the Northern District of Georgia with conspiracy to commit bank fraud, bank fraud, false statements to a financial institution, and money laundering.
These individuals were allegedly part of a larger group that together have fraudulently obtained approximately $3.0 million in PPP loans. To date, authorities have recovered approximately $1,195,784.98 of the stolen money.
The indictment alleges that Thompson recruited Baisden, Crosby, Maloney, Smith, and Wilson to apply for PPP loans on behalf of their respective businesses, PowerHouse Sports Academy LLC, Faithful Transport Services LLC, KMJ Transport LLC, Market Yourself LLC, and Rare Breed Nation LLC. With Thompson’s help, Baisden, Crosby, Maloney, Smith, and Wilson each allegedly obtained a $300,000 PPP loan by submitting loan applications containing numerous false and misleading statements about their businesses. Thompson allegedly aided the applicants in submitting the fraudulent loan applications in exchange for a percentage of the loan proceeds.
The following five individuals have pleaded guilty in connection with this alleged scheme:
- Antonio D. Hosey, of Atlanta, Georgia, pleaded guilty to a one-count information charging conspiracy to commit wire fraud and money laundering(20-CR-396-LMM);
- Timothy Williams, of Atlanta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements(20-CR-339-LMM);
- Stanley Dorceus, of Marietta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-320-LMM);
- Kenneth L. Wright, Jr., of Atlanta, Georgia, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-285-LMM); and
- Mark A. Stewart, of Greenville, South Carolina, pleaded guilty to a two-count information charging conspiracy to commit wire fraud and making false statements (20-CR-319-LMM).
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the FBI Atlanta Complex Financial Crimes Task Force, SBA OIG, and the Treasury Inspector General for Tax Administration. Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Diane D. Schulman of the U.S. Attorney’s Office for the Northern District of Georgia are prosecuting the case.
- Antonio D. Hosey, of Atlanta, Georgia, pleaded guilty to a one-count information charging conspiracy to commit wire fraud and money laundering(20-CR-396-LMM);
Electronic Health Records Technology Vendor to Pay $18.25 Million to Resolve Kickback AllegationsRead the Press Release
A national electronic health records (EHR) technology vendor based in Watertown, Massachusetts, athenahealth Inc. (Athena), has agreed to pay $18.25 million to resolve allegations that it violated the False Claims Act by paying unlawful kickbacks to generate sales of its EHR product, athenaClinicals, the Justice Department announced today.
In a complaint filed in conjunction with today’s settlement, the United States alleged that Athena violated the False Claims Act and the Anti-Kickback Statute through three marketing programs. First, Athena invited prospective and existing customers to “Concierge Events,” providing free tickets to and amenities at sporting, entertainment, and recreational events, including trips to the Masters Tournament and the Kentucky Derby with complimentary travel and luxury accommodations, meals, and alcohol. Second, Athena paid kickbacks to its existing customers under a “Lead Generation” program designed to identify and refer new prospective clients to Athena. Under this program, Athena paid up to $3,000 to existing customers for each new client that signed up for Athena services, regardless of how much time, if any, the existing customer spent speaking to or meeting with the new client. Finally, Athena entered into deals with competing vendors that were discontinuing their EHR technology offerings to refer their clients to Athena. Under such deals, Athena paid remuneration to the competitor based on the value and volume of practices that were successfully converted into Athena clients.
“This resolution demonstrates the department’s continued commitment to hold EHR companies accountable for the payment of unlawful kickbacks in any form,” said Acting Assistant Attorney General Brian Boynton for the Department of Justice’s Civil Division. “EHR technology plays an important role in the provision of medical care, and it is critical that the selection of an EHR platform be made without the influence of improper financial inducements.”
“Across the country, physicians rely on electronic health records software to provide vital patient data. Kickbacks corrupt the market for health care services and risk jeopardizing patient safety,” said U.S. Attorney Andrew E. Lelling for the District of Massachusetts. “We will aggressively pursue organizations that fail to play by the rules; EHR companies are no exception.”
“If the benefits of Electronic Health Records are to be fully realized, patients must be confident providers have selected the most effective system – not the one paying the largest kickbacks. Time and again, we’ve seen fraudulent activity undermine the integrity of medical decisions, subvert the health marketplace, and waste taxpayer dollars,” said Phillip M. Coyne, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to hold accountable those who provide illegal incentives in order to influence the decision-making of health care providers.”
“It is illegal for companies to extend invitations to all-expense-paid sporting, entertainment, and recreational events, and other perk-filled offers to its prospective customers to win business and boost their bottom line through illegal kickback schemes,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s agreement by Athena to pay $18.25 million should send a strong message to anyone thinking about engaging in this type of illegal activity. The FBI will continue to work with our law enforcement partners to do everything in our power to safeguard our government health care programs and the taxpayers picking up the bill.”
The settlement resolves allegations in a lawsuit filed by Geordie Sanborn and a separate lawsuit filed by Cheryl Lovell and William McKusick; both matters are pending in federal court in Boston, Massachusetts. The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act allows the government to intervene and take over the action, as it did in these two cases. The whistleblower share to be awarded in connection with the settlement has not been determined.
The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the Department of Veterans Affairs, Office of Inspector General; and the U.S. Postal Service, Office of Inspector General. The two lawsuits are captioned United States ex rel. Sanborn. v. athenahealth, Inc., No. 17-cv-12125 (D. Mass.) and United States ex rel. Lovell and McKusick v. athenahealth, Inc., No. 17-cv-12543 (D. Mass.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Businessman Sentenced for Foreign Bribery and Money Laundering Scheme Involving PetroEcuador OfficialsRead the Press Release
An Ecuadorian businessman living in Miami was sentenced today to 35 months in prison for his role in a $4.4 million bribery and money laundering scheme that funneled bribes to then-public officials of Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador), the state-owned and state-controlled oil company of Ecuador.
Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to his plea, Armengol Alfonso Cevallos Diaz, 58, admitted that from 2012 through 2015 he conspired to solicit, intermediate, and pay bribes of $4.4 million from an oil services company and companies associated with or controlled by Cevallos to PetroEcuador officials by using U.S.-based companies and U.S.-based bank accounts in order to obtain and retain business from PetroEcuador. Cevallos also admitted to conspiring to conceal and promote the bribe scheme by laundering the funds through Miami-based shell companies and bank accounts that were used to acquire properties in the Miami area for the benefit of certain PetroEcuador officials.
Cevallos is the latest individual to be sentenced in the Justice Department’s ongoing investigation into bribery and money laundering involving PetroEcuador. The individuals prosecuted include former PetroEcuador officials who received and concealed the bribe payments, businessmen and contractors who paid the bribes to obtain contracts from PetroEcuador, and intermediaries who enabled and facilitated the bribery through the use of U.S. and offshore companies and bank accounts.
The FBI’s International Corruption Squad in Miami is investigating the case.
Trial Attorneys Jonathan Robell and Katherine Raut of the Criminal Division’s Fraud Section and Trial Attorney Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) prosecuted the case.
IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Marshals Service and the Justice Department’s Office of International Affairs provided significant assistance in this case, as have public authorities in, among other countries, Ecuador and Panama.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corruption Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Marketing Company Agrees to Pay $150 Million for Facilitating Elder Fraud SchemesRead the Press Release
Epsilon Data Management LLC (Epsilon), one of the largest marketing companies in the world, has entered into a settlement with the Department of Justice to resolve a criminal charge for selling millions of Americans’ information to perpetrators of elder fraud schemes.
Epsilon entered into a deferred prosecution agreement (DPA) with the Consumer Protection Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Colorado in connection with a criminal information charging the company with one count of conspiracy to commit mail and wire fraud.
Under the terms of the DPA, which the parties submitted to the district court in Denver on Jan. 19, 2021, Epsilon agreed to pay a total of $150 million, with $127.5 million of that amount going to compensate victims of the fraudulent schemes that used consumer data sold by Epsilon. Epsilon also agreed to implement significant compliance measures designed to safeguard consumers’ data and prevent its sale to individuals or entities engaged in fraudulent or deceptive marketing campaigns. Further, the DPA requires Epsilon to maintain a procedure for consumers to request that it not sell their information to others.
Headquartered in Irving, Texas, with its principal sales office in Westminster, Colorado, Epsilon used sophisticated data modeling to identify consumers most likely to respond to its clients’ marketing solicitations. As part of the DPA, Epsilon admitted that, from July 2008 through July 2017, employees in its Direct to Consumer (DTC) Unit knowingly sold modeled lists of consumers to clients engaged in fraud. In particular, Epsilon acknowledged that the DTC Unit sold consumer lists to a number of mass-mailing fraud schemes that sent false “sweepstakes” and “astrology” solicitations to consumers. Those solicitations stated that each consumer recipient had won a large prize or individualized psychic service that they could obtain by paying a fee. In reality, the solicitations — as known to DTC Unit employees — were mass-produced mailings and victims who paid a fee received nothing of value. As reflected in the consumer lists sold by the DTC Unit to perpetrators of the fraud schemes, the schemes disproportionately affected the elderly and other vulnerable individuals.
The consumer data sold by the DTC Unit to fraudsters came both from other fraudulent clients and from legitimate Epsilon clients, including non-profit and charitable organizations. DTC Unit employees continued to sell consumer data to clients engaged in fraud despite knowing that those and similar clients had been arrested, charged with crimes, convicted, and otherwise subject to law enforcement actions for false and misleading practices. Epsilon admitted that the DTC Unit sold more than 30 million consumers’ data to fraudulent schemes.
“By allowing clients engaged in fraudulent schemes to buy data on millions of consumers most susceptible to their schemes, Epsilon employees facilitated those schemes with staggering effect,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “We are encouraged by Epsilon’s cooperation since the misconduct was discovered, its remediation efforts, and its commitment to stringent new compliance measures.”
“Companies who sell consumer information have a responsibility to avoid knowingly selling it to those who will use the data to defraud or swindle consumers,” said U.S. Attorney Jason Dunn for the District of Colorado. “I hope other data companies will take note of this outcome and ensure that they don’t likewise help fraudsters.”
“Postal Inspectors have always held consumer protection as a core tenet of our efforts to ensure the integrity of the U.S. Mail,” said Deputy Chief Postal Inspector Craig Goldberg of the U.S. Postal Inspection Service. “When data firms such as Epsilon use their extraordinary access to consumers’ personal information to provide laser-focused marketing lists supporting deceptive practices, more American consumers are placed in harm’s way. Firms that amass big data assume a big responsibility to ensure this data is not used by malicious actors. If you cater to criminals who are exploiting Americans through the U.S. Mail, Postal Inspectors are coming for you.”
The DPA provides that Epsilon must select, and cover the costs of, an independent claims administrator to distribute the $127.5 million to identified victims with established losses caused by fraud schemes that used Epsilon data. The claims administrator will contact identified victims directly. More information about the victim compensation amount and fund distribution will be posted at the following website: https://www.justice.gov/civil/case/united-states-v-epsilon-data-management-llc. Victims of elder fraud schemes may also contact the National Elder Fraud Hotline, which provides services to seniors who may be victims of financial fraud. The hotline is staffed by experienced case managers who provide personalized support to callers. The hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
The U.S. Postal Inspection Service investigated the case. Trial Attorneys Alistair Reader and Ehren Reynolds of the Department of Justice Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Hetal J. Doshi and Rebecca Weber of the U.S. Attorney’s Office for the District of Colorado are prosecuting the case.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For information on the U.S. Attorney's Office for the District of Colorado, visit its website at https://www.justice.gov/usao-co.
Justice Department Settles with New Jersey-Based IT Consulting Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with Quantum Integrators Group (Quantum), an IT consulting and staffing company based in New Jersey. The settlement resolves claims that Quantum (1) discriminated against a lawful permanent resident by requiring her, based on her citizenship status, to provide unnecessary documentation before it would refer her for an employment opportunity, and (2) routinely required other work-authorized non-U.S. citizens to present unnecessary documents to prove their eligibility to work.
“Companies cannot make requests for unnecessary work authorization documents because of an individual’s citizenship status, or condition a referral for employment on complying with such a request,” said Gregory B. Friel, Deputy Assistant Attorney General of the Civil Rights Division. “We are pleased that Quantum will work with the Department of Justice to ensure that its policies and practices do not discriminate on the basis of citizenship status.”
The department’s investigation began after a lawful permanent resident filed a discrimination complaint with the Civil Rights Division against Quantum. Based on its investigation, the department concluded that Quantum would not refer her to a client so that she could be considered for an employment opportunity unless she first proved she was authorized to work by providing a copy of her Permanent Resident Card. According to the investigation, Quantum would have referred a U.S. citizen candidate to the client without requiring similar proof of work authorization. Additionally, the department concluded that Quantum routinely required other work-authorized non-U.S. citizens to provide additional and unnecessary documents to prove their eligibility to work.
The Immigration and Nationality Act (INA) prohibits employers from requesting more or different documents than necessary to prove eligibility to work based on employees’ citizenship, immigration status or national origin. All work-authorized individuals, regardless of citizenship status, may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The INA also does not permit an employer to verify an individual’s eligibility to work before a job offer is accepted.
Under the terms of the settlement, Quantum will pay a civil penalty to the United States, revise its policies and procedures, ensure that relevant employees participate in training on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring over the term of the agreement.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also may contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Hospital Pharmacist to Plead Guilty to Attempting to Spoil Hundreds of COVID Vaccine DosesRead the Press Release
A Wisconsin pharmacist has agreed to plead guilty to charges filed today in federal court that he attempted to render hundreds of doses of COVID-19 vaccine ineffective.
According to court documents filed in U.S. District Court for the Eastern District of Wisconsin, Steven R. Brandenburg, 46, of Grafton, Wisconsin, was charged with two counts of attempting to tamper with consumer products with reckless disregard for the risk that another person will be placed in danger of death or bodily injury. Brandenburg has agreed to plead guilty to the charges, which each carry a maximum sentence of 10 years imprisonment.
As detailed in the court documents, while working as a hospital pharmacist in Grafton, Wisconsin, on two successive overnight shifts in late December, Brandenburg purposefully removed a box of COVID-19 vaccine vials manufactured by Moderna—which must be stored at specific cold temperatures to remain viable—from the hospital’s refrigeration unit intending to render the vaccines inert and no longer effective. According to the plea agreement, Brandenburg stated that he was skeptical of vaccines in general and the Moderna vaccine specifically. Brandenburg had communicated his beliefs about vaccines to his co-workers for at least the past two years.
After leaving the vaccines out for several hours each night, Brandenburg returned the vaccines to the refrigerator to be used in the hospital’s vaccine clinic the following day. Before the full extent of Brandenburg’s conduct was discovered, 57 people received doses of the vaccine from these vials.
“Tampering with vaccine doses in the midst of a global health crisis calls for a strong response, as reflected by the serious charges the United States has brought today,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to ensure the public receives safe and effective vaccines.”
“Distributing the COVID-19 vaccine is critical to overcoming this pandemic, which continues to end lives and upend our economy,” said U.S. Attorney Matthew D. Krueger. “As these charges show, the Justice Department will pursue anyone—and especially any medical professional—who tampers with the vaccine.”
“The FDA has ensured that the Moderna COVID-19 vaccine meets the agency’s rigorous standards for quality, safety, and efficacy,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “Those who knowingly tamper with this vaccine place American patients’ health at risk. Today’s announcement should serve as a reminder that this kind of illicit tampering activity will not be tolerated.”
“Pharmacists rank among some of the most trusted professionals,” said FBI Milwaukee Special Agent in Charge Robert Hughes. “This individual used his special access to tamper with vials of the much needed COVID-19 vaccine. The FBI takes allegations of consumer product tampering very seriously and will use all available resources to bring those to justice who intentionally put the public’s health at risk.”
This matter was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the Milwaukee Field Office of the FBI, and the Village of Grafton Police Department. The case is being prosecuted by Assistant U.S. Attorney Kevin C. Knight of the U.S. Attorney’s Office for the Eastern District of Wisconsin, and Senior Litigation Counsel Ross S. Goldstein and Trial Attorney Rachel Baron of the Department of Justice Civil Division’s Consumer Protection Branch.
The claims made in the information are allegations that, if the case had proceeded to trial, the government would have had to prove beyond a reasonable doubt to convict the defendant. The plea agreement expresses the defendant’s intention to plead guilty, but the defendant has not yet formally entered a plea in this matter.
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 Eastern District of Wisconsin, visit its website at www.justice.gov/usao-edwi. For information about the Department of Justice’s efforts to stop COVID-19 fraud, visit www.justice.gov/coronavirus. For the most up-to-date information on COVID-19, consumers may visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
El Departamento de Justicia Llega a un Acuerdo con una Compañía de Consultoría Informática con Sede en Nueva Jersey que Resuelve Acusaciones de Discriminación Relacionada con la InmigraciónRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Quantum Integrators Group (Quantum), una compañía de contratación y consultoría informática con sede en Nueva Jersey. El acuerdo resuelve las acusaciones de que Quantum (1) discriminó a una residente permanente legal al requerir, por motivos de su estatus de ciudadanía, que proporcionara documentación innecesaria antes de referirla para una oportunidad laboral y (2) requería, de forma rutinaria, a personas no ciudadanas de los EE. UU. que presentasen documentos innecesarios para demostrar su elegibilidad para trabajar.
«Las compañías no pueden solicitar documentos innecesarios de autorización para trabajar por motivos del estatus de ciudadanía de uno o condicionar una referencia para un puesto laboral al cumplimiento con tal solicitud», dijo Gregory B. Friel, el Fiscal General Auxiliar Adjunto de la División de Derechos Civiles. «Nos complace ver que Quantum colaborará con el Departamento de Justicia para garantizar que sus políticas y prácticas no discriminen a las personas por motivos de su estatus de ciudadanía».
La investigación del Departamento comenzó después de que una residente permanente legal presentó una demanda contra Quantum ante la División de Derechos Civiles. Con base en su investigación, el Departamento concluyó que Quantum se negó a referirla a un cliente para ser considerada para una oportunidad laboral antes de presentar una copia de su Tarjeta de Residente Permanente para demostrar su autorización para trabajar. Según la investigación, Quantum hubiera referido a un candidato ciudadano estadounidense al cliente sin requerir semejante prueba de autorización para trabajar. Más aún, el Departamento concluyó que Quantum tenía la costumbre de requerir a otros individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. que proporcionaran documentos adicionales e innecesarios para demostrar su elegibilidad para trabajar.
La Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) prohíbe que los empleadores pidan documentos adicionales o diferentes a los necesarios para demostrar la elegibilidad para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen. Todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, puede elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su elegibilidad para trabajar en los Estados Unidos. La INA tampoco permite a los empleadores verificar la elegibilidad del individuo para trabajar antes de que el mismo acepte una oferta de trabajo.
Conforme a los términos del acuerdo, Quantum pagará una sanción civil a los Estados Unidos, revisará sus políticas y procedimientos, asegurará que los empleados relevantes participen en una capacitación sobre los requisitos de la disposición antidiscriminatoria de la INA y se someterá a la supervisión por parte del Departamento durante el término del acuerdo.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias o la intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery
Se Condena a una Pena de Prisión un Exmédico para el Departamento de Asuntos de Veteranos por Haber Abusado Sexualmente de VeteranosRead the Press Release
WASHINGTON, D.C. — Un exmédico de medicina osteopática que previamente había trabajado en el Centro Médico del Departamento de Asuntos de Veteranos (VA, por sus siglas en inglés) en Beckley, Virginia Occidental, fue condenado hoy por haber privado, con apariencia de legalidad, a veteranos de sus derechos civiles al abusar de ellos sexualmente.
El Fiscal Federal de Distrito Frank W. Volk condenó a Jonathan Yates, de 52 años, de Bluefield, Virginia, a 300 meses de prisión y tres años de libertad supervisada. Así anunciaron el Fiscal General Auxiliar Adjunto del Departamento de Justicia, Gregory B. Friel, el Fiscal Federal para el Distrito Sur de Virginia Occidental, Michael B. Stuart, el Agente Especial Encargado de la División del FBI en Pittsburgh, Michael A. Christman, y el Inspector General de VA, Michael J. Missal.
Yates previamente se había declarado culpable el 17 de septiembre del 2020 de tres cargos de delitos graves basados en la privación de derechos con apariencia de legalidad. Según se indica en los documentos de la declaración, Yates frotó los genitales de dos veteranos y penetró digitalmente el recto de un tercer veterano bajo el pretexto de medicina legítima, cuando en realidad actuó sin contar con un uso médico legítimo. Esta conducta, que tuvo lugar mientras Yates actuaba con apariencia de legalidad en su carácter de médico del VA y empleado federal, privó a los veteranos de su derecho constitucional a la integridad corporal y les provocó dolor. Según se indica en los documentos de la declaración, los veteranos habían acudido a Yates para controlar su dolor crónico mediante la terapia manipulativa osteopática. Varios veteranos hablaron ante el tribunal en la dictación de la sentencia y describieron el trauma y la angustia mental que Yates les había causado. Yates entregó sus licencias médicas como condición de su acuerdo con su sentencia por consentimiento.
«La condena de hoy refleja la seriedad de la mala conducta de este acusado. Él traicionó su juramento de una manera despreciable y empleó sus conocimientos médicos especializados y su pericia para abusar de sus propios pacientes. Ahora se le ha hecho rendir cuentas de sus acciones», afirmó el Fiscal General Auxiliar Adjunto, Gregory B. Friel, de la División de Derechos Civiles. «El hecho de que tantos se presentaron para llevar a este acusado ante la justicia demuestra la valentía de nuestros veteranos».
«Militares veteranos que sirven y se sacrifican por proteger nuestra nación se merecen únicamente la mejor atención. Yates traicionó su juramento como médico y a los veteranos bajo su cuidado», declaró el Fiscal Federal para el Distrito Sur de Virginia Occidental, Michael Stuart. «Hoy se ha pedido a Yates que rinda cuentas de sus acciones atroces. Aunque su condena a la pena de prisión no podrá deshacer los daños sustanciales que Yates causó a sus víctimas, esperamos que esto aliviará su dolor. Quiero felicitar al FBI y al Departamento de Asuntos de Veteranos-Oficina del Inspector General por su excelente trabajo en esta investigación. También quiero dar las gracias a las víctimas y sus familias por su firme apoyo durante el procesamiento de este caso».
«Yates cometió delitos atroces en un cuarto de hospital, el cual debe ser un lugar de refugio para pacientes», dijo Michael Christman, el Agente Especial Encargado del FBI en Pittsburgh. «Los hechos asociados con este caso son repugnantes y estos pacientes y sus familias se merecían mejor atención. Mientras que la condena de hoy no restará de lo que les pasó a estos pacientes que se dedicaron la vida al servicio de nuestra nación, Yates ya no podrá hacer daño nunca más a nadie. Esperamos que esto sirve como justicia para sus víctimas».
«Esta condena es el resultado del trabajo excepcional de los agentes de la Oficina del Inspector General y las agencias asociadas de cumplimiento con la ley», afirmó el Inspector General Michael J. Missal. «Nuestros pensamientos están con los veteranos que fueron abusados de una forma tan horrorosa por un médico encargado de cuidarlos, y seguiremos siendo vigilantes en nuestros esfuerzos por mantener a salvo a todo paciente del VA».
El caso fue investigado por el FBI, la Oficina del Inspector General del Departamento de Asuntos de Veteranos y la Policía de Asuntos de Veteranos. El caso fue procesado por la Consejera para Litigios Especiales Samantha Trepel y el Abogado de Litigios Kyle Boynton, los dos de la División de Derechos Civiles del Departamento de Justicia de los EE. UU., el Fiscal Federal Auxiliar para el Distrito Sur de Virginia Occidental, Greg McVey, y el Jefe Auxiliar de la Sección de Fraude del Departamento de Justicia de los EE. UU., Kilby MacFadden.
Podrá encontrar información y documentos judiciales en el sitio web del Tribunal Federal de Distrito para el Distrito Sur de Virginia Occidental en http://www.wvsd.uscourts.gov/ o en http://pacer.wvsd.uscourts.gov/.
Former Veterans Affairs Doctor Sentenced to Prison for Sexual Abuse of VeteransRead the Press Release
A former doctor of osteopathic medicine who previously worked at the Veterans Affairs (VA) Medical Center in Beckley, West Virginia, was sentenced today for depriving veterans of their civil rights under color of law by sexually abusing them.
U.S. District Judge Frank W. Volk sentenced Jonathan Yates, 52, of Bluefield, Virginia, to 300 months in prison and three years of supervised release, announced Deputy Assistant Attorney General Gregory B. Friel of the Justice Department’s Civil Rights Division, U.S. Attorney Michael B. Stuart of the Southern District of West Virginia, Special Agent in Charge Michael A. Christman of the Pittsburgh Division of the FBI, and VA Inspector General Michael J. Missal.
Yates previously pleaded guilty on Sept. 17, 2020, to three felony counts of deprivation of rights under color of law. According to the plea documents, Yates rubbed the genitals of two veterans and digitally penetrated a third veteran’s rectum under the guise of legitimate medicine, when in fact he acted without a legitimate medical purpose. This conduct, performed while Yates was acting under color of law in his capacity as a VA physician and a federal employee, deprived the veterans of their constitutional right to bodily integrity and caused them pain. According to the plea documents, the veterans had sought treatment from Yates to manage chronic pain through osteopathic manipulative therapy. Several veterans addressed the court at sentencing, describing the trauma and mental anguish that Yates had caused them. Yates surrendered his medical licenses as a condition of his plea agreement.
“The sentence today reflects the seriousness of this defendant’s misconduct. In a despicable betrayal of his oath, he used his specialized medical knowledge and expertise to sexually abuse his own patients. He has now been held accountable,” said Deputy Assistant Attorney General Gregory B. Friel of the Civil Rights Division. “It is a testament to the bravery of our veterans that so many came forward to bring this defendant to justice.”
“Military veterans who serve and sacrifice to protect our nation deserve only the best of care. Yates betrayed his oath as a physician and the veterans under his care,” said U.S. Attorney Michael Stuart for the Southern District of West Virginia. “Today, Yates has been called to account for his heinous acts. While his prison sentence will not undo the significant harm Yates inflicted on the victims, we hope that it will ease their pain. I want to commend the incredible work of the FBI and the Department of Veterans Affairs-OIG in this investigation. I also want to thank the victims and their families for their unwavering support during the prosecution of this case.”
“Yates committed hideous crimes in a hospital room, which should be a sanctuary for patients,” said FBI Pittsburgh Special Agent in Charge Michael Christman. “The facts of this case are disgusting and these patients and their families deserved better care. While today’s sentence won’t take away what happened to these patients who dedicated their lives in service to our nation, Yates will never be able to hurt anyone again. Hopefully, this will serve as justice for his victims.”
“This sentence is the culmination of the exceptional work of the Office of the Inspector General special agents and our law enforcement partners,” said VA Inspector General Michael J. Missal. “Our thoughts are with the veterans who suffered horrific abuse by a doctor entrusted with their care, and we remain vigilant in our efforts to keep all VA patients safe from harm.”
The case was investigated by the FBI, the Department of Veterans Affairs Office of Inspector General, and the Veterans Affairs Police Department. The case was prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Kyle Boynton of the Civil Rights Division of the U.S. Department of Justice, Assistant U.S. Attorney Greg McVey of the Southern District of West Virginia, and Assistant Chief Kilby MacFadden of the Fraud Section of the U.S. Department of Justice.
Related court documents and information may be found on the website of the District Court for the Southern District of West Virginia at http://www.wvsd.uscourts.gov/ or on http://pacer.wvsd.uscourts.gov/.
Justice Department and FTC Announce First Enforcement Actions for Violations of the Better Online Ticket Sales ActRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), today announced three settlements resolving alleged violations of the Better Online Ticket Sales (BOTS) Act. These are the first enforcement actions that the department and the FTC have brought under the BOTS Act.
Enacted in 2016, the BOTS Act aims to prevent ticket brokers from buying large numbers of event tickets and reselling them to interested customers at inflated prices. To achieve that goal, the BOTS Act prohibits a person from circumventing access controls or measures used by online ticket sellers (such as Ticketmaster) to enforce ticket-purchasing limits. It also prevents the resale of tickets obtained by knowingly circumventing access controls.
As alleged in the three complaints filed by the United States, the defendants — Just In Time Tickets Inc. and its owner Evan Kohanian; Concert Specials Inc. and its owner Steven Ebrani; and Cartisim Corp. and its owner Simon Ebrani — committed violations of the BOTS Act to purchase from Ticketmaster thousands of tickets they then resold for millions of dollars in revenues, often at significant markups. The defendants are alleged to have circumvented Ticketmaster’s restrictions on users holding multiple accounts by creating accounts in the names of family members, friends, and fictitious individuals, and using hundreds of credit cards. They also allegedly used ticket bots to fool tests designed to prevent nonhuman visitors. In addition, the complaints assert that the defendants used programs to conceal the IP addresses of the computers they used to make purchases.
“These defendants are alleged to have cheated the system to the detriment of consumers,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “Today’s filing serves notice that the Department of Justice will enforce the Better Online Ticket Sales Act in appropriate cases. We are pleased to work with our partners at the Federal Trade Commission on this and other matters important to consumers.”
“Those who violate the BOTS Act cheat fans by forcing them to pay inflated prices to attend concerts, theater performances and sporting events,” said Acting U.S. Attorney Seth D. DuCharme for the Eastern District of New York. “This office will spare no effort in prohibiting deceptive practices that harm consumers.”
The three stipulated orders entered by the court assess civil penalties of $11.2 million against Just In Time Tickets Inc. and Kohanian, $16 million against Concert Specials Inc. and Steven Ebrani, and $4.4 million against Cartisim Corp. and Simon Ebrani, allowing suspension of a portion of such civil penalties if the defendants satisfy certain terms. The orders further provide for the suspension of the remainder of such civil penalties if the defendants pay $1,642,658.96, $1,565,527.41, and $499,147,12, respectively, and satisfy certain additional terms. The stipulated orders also contain terms to prohibit the defendants from using ticket bots or other computer programs to defeat access controls, from concealing the IP addresses of computers they use to make ticket purchases, and from purchasing tickets from any credit or debit account in the name of anyone other than the defendants or their corporate officers and employees. Under the terms, the defendants must also maintain records and provide compliance reports to the government.
This matter was handled by Trial Attorney Benjamin A. Cornfeld of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Bonni J. Perlin and Kevin Yim from the U.S. Attorney’s Office for the Eastern District of New York. Christine M. Todaro and Frances L. Kern represented the FTC.
For more information about 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 FTC, visit its website at https://www.FTC.gov.
Former City of Rochelle Employee Charged with Fraudulently Obtaining at Least $150,000 from a Non-Profit Business AssociationRead the Press Release
ROCKFORD — A former employee of the City of Rochelle was charged today with fraudulently obtaining at least $150,000 from a non-profit business association.
SCOTT KOTESKI, 58, of Rochelle, is charged with one count of wire fraud, according to a criminal information filed in federal court in Rockford. Arraignment has not yet been scheduled.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Illinois State Police assisted in the investigation. The government is represented by Assistant U.S. Attorney Scott R. Paccagnini.
According to the information, Koteski was selected by the city to sit on the board of directors of a non-profit business association that provided broadband internet technology to smaller municipalities in northern Illinois. Starting in 2011, Koteski was selected as the treasurer of that association. As treasurer, Koteski handled the invoicing and billing of the member municipalities, and as of February 2012 had signatory authority on the association’s bank account. According to the information, from September 2012 through April 2018, Koteski fraudulently obtained from the association at least $150,000, which he used for his own benefit without the association’s knowledge or consent. Koteski wrote numerous checks to himself from the association’s bank account and deposited them into a personal account for his benefit, the information states.
Koteski allegedly concealed his acts by writing false information on the memo line to make it appear the checks were for reimbursement of personal monies Koteski spent for the association when, in fact, Koteski was not entitled to reimbursement. In 2018, Koteski made online payments from the association’s bank account to a credit card company to pay balances on his personal credit card, and to an online loan financing company to pay balances on Koteski’s loan, the information states.
Wire fraud carries a maximum sentence of 20 years’ imprisonment. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Dow Chemical Company and Two Subsidiaries will Reduce Harmful Air Pollution at Four U.S. Chemical PlantsRead the Press Release
The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) announced a settlement with Dow Chemical Company and two subsidiaries, Performance Materials NA Inc. and Union Carbide Corporation, that will eliminate thousands of tons of air pollution from four of Dow’s petrochemical manufacturing facilities in Texas and Louisiana.
The settlement resolves allegations that Dow and its subsidiaries violated the Clean Air Act by failing to properly operate and monitor industrial flares at their petrochemical facilities, which resulted in excess emissions of harmful air pollution.
The complaint, filed Tuesday along with the settlement, alleges that Dow and its subsidiaries “oversteamed” their flares and failed to comply with other key operating parameters that ensure the volatile organic compounds (VOCs) and hazardous air pollutants contained in the gases routed to the flares are effectively combusted.
The companies will spend approximately $294 million to install and operate air pollution control and monitoring technology to reduce flaring and the resulting harmful air pollution from 26 industrial flares at the companies’ facilities in: Hahnville, Louisiana; Plaquemine, Louisiana; Freeport, Texas; and Orange, Texas.
Once fully implemented, the pollution controls required by the settlement are estimated to reduce harmful air emissions of VOCs by more than 5,600 tons per year. The settlement is also expected to reduce toxic air pollutants, including benzene, by nearly 500 tons per year.
“This settlement will improve air quality in Texas and Louisiana by eliminating thousands of tons of harmful air pollution each year,” said Jonathan D. Brightbill, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “The agreement, which requires Dow to reduce emissions from its facilities in Texas and Louisiana, demonstrates the Justice Department’s and EPA’s continuing efforts, together with our state partners, to reduce harmful air pollution from unnecessary and improper flaring in order to protect the American public by bringing sources of air pollution into compliance with the Clean Air Act.”
“This settlement means cleaner air for communities across Texas and Louisiana and reinforces EPA’s commitment to enforce the law and hold those who violate it accountable,” said Susan Bodine, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “As this agreement shows, EPA is dedicated to partnering with states to address critical environmental issues and improve compliance in the regulated community to prevent future violations of the law.”
“The Clean Air Act provides a blueprint for industry to operate in a safe and controlled fashion,” said Dr. Chuck Carr Brown, LDEQ Secretary. “LDEQ will continue to work with our federal partners, EPA and the Justice Department, to finalize agreements that settle both long- and short-term compliance issues. Every citizen of Louisiana will benefit from the Beneficial Environmental Project portion of the settlement.”
The pollutants addressed by the settlement can cause significant harm to public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.
Flares are devices used to combust waste gases that would otherwise be released into the atmosphere during certain industrial operations. Well-operated flares should have high “combustions efficiency,” meaning they combust nearly all harmful waste gas constituents, like VOCs and hazardous air pollutants, and turn them into water and carbon dioxide. The agreement is designed to improve Dow’s flaring practices. First, it requires Dow to minimize the amount of waste gas that is sent to the flares, which reduces the amount of flaring. Second, Dow must improve the combustion efficiency of its flares when flaring is necessary.
In order to minimize the waste gas sent to the flares at each facility, Dow will operate flare gas recovery systems that recover and “recycle” the gases instead of sending them to be combusted in a flare. The flare gas recovery systems will allow Dow to reuse these gases as a fuel at its facilities or a product for sale. Dow will also create waste minimization plans for each facility to further reduce flaring. For flaring that must occur, the agreement requires that Dow install and operate instruments and monitoring systems to ensure that the gases sent to its flares are efficiently combusted. Dow will also perform air quality monitoring that is designed to detect the presence of benzene at the fence lines of the four covered plants and pay a civil penalty of $3 million.
The LDEQ will receive $675,000 of the $3 million total civil penalty, and Dow will perform three state-authorized “beneficial environmental projects” in Louisiana that were negotiated by Louisiana.
More information about this settlement can be found at https://www.epa.gov/enforcement/dow-chemical-company-performance-materials-na-inc-and-union-carbide-corporation-clean.
The consent decree, lodged in the Eastern District Court of Louisiana, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
U.S. Army Soldier Arrested for Attempting to Assist ISIS to Conduct Deadly Ambush on U.S. TroopsRead the Press Release
The Justice Department, along with the New York City Police Department (NYPD) and U.S. Army Counterintelligence, announced today the arrest of a private first class in the U.S. Army, on federal terrorism charges based on Bridges’ alleged efforts to assist ISIS to attack and kill U.S. soldiers in the Middle East.
Cole James Bridges, aka Cole Gonzales, 20, of Stowe, Ohio, was charged by complaint with attempting to provide material support to a designated foreign terrorist organization and attempting to murder U.S. military service members. The FBI and U.S. Army Counterintelligence arrested Bridges today, and he will be presented later today in the U.S. District Court for the Southern District of Georgia.
“Bridges is charged with giving military advice and guidance on how to kill fellow soldiers to individuals he thought were part of ISIS,” said Assistant Attorney General for National Security John C. Demers. “This alleged personal and professional betrayal of comrades and country is terrible to contemplate, but fortunately, the FBI was able to identify the threat posed by Bridges, and today's charges are the first step in holding him accountable for his crimes. ISIS ideology continues to infect those who would threaten the nation's security from within and without, and we will continue to fight this threat.”
“As alleged, Cole Bridges betrayed the oath he swore to defend the United States by attempting to provide ISIS with tactical military advice to ambush and kill his fellow service members,” said Acting U.S. Attorney for the Southern District of New York Audrey Strauss. “Our troops risk their lives for our country, but they should never face such peril at the hands of one of their own. Today, thanks to the efforts of the agents and detectives of the JTTF, and our partners in the Department of Defense, Bridges is in custody and facing federal terrorism charges for his alleged crimes.”
“As we allege today, Bridges, a private in the U.S. Army, betrayed our country and his unit when he plotted with someone he believed was an ISIS sympathizer to help ISIS attack and kill U.S. soldiers in the Middle East,” said FBI Assistant Director in Charge of the New York Office William F. Sweeney Jr. “Fortunately, the person with whom he communicated was an FBI employee, and we were able to prevent his evil desires from coming to fruition. Bridges could have chosen a life of honorable service, but instead he traded it for the possibility of life in prison. This case should serve as a reminder that the FBI’s New York JTTF will never quit in its commitment to protect our Nation from all those who seek to do it harm.”
“Army Counterintelligence’s top priority is protecting the force so it can remain committed to fighting and winning our nation’s wars,” said Army Counterintelligence Coordinating Authority Director Roy T. Cochran. “The results of this investigation show the efforts of Army Counterintelligence agents working alongside our partners in the FBI. We are dedicated to protecting our soldiers, civilians, and families from terrorist acts and insider threats.”
According to the criminal complaint charging Bridges, which was unsealed today in Manhattan federal court:
Bridges joined the U.S. Army in approximately September 2019 and was assigned as a cavalry scout in the 3rd Infantry Division based in Fort Stewart, Georgia. Beginning in at least 2019, Bridges began researching and consuming online propaganda promoting jihadists and their violent ideology. Bridges also expressed his support for the Islamic State of Iraq and al-Sham (ISIS) and jihad on social media. In or about October 2020, Bridges began communicating with an FBI online covert employee (the “OCE”), who was posing as an ISIS supporter in contact with ISIS fighters in the Middle East. During these communications, Bridges expressed his frustration with the U.S. military and his desire to aid ISIS. Bridges then provided training and guidance to purported ISIS fighters who were planning attacks, including advice about potential targets in New York City, such as the 9/11 Memorial. Bridges also provided the OCE with portions of a U.S. Army training manual and guidance about military combat tactics, for use by ISIS.
In or about December 2020, Bridges began to supply the OCE with instructions for the purported ISIS fighters on how to attack U.S. forces in the Middle East. Among other things, Bridges diagrammed specific military maneuvers intended to help ISIS fighters maximize the lethality of attacks on U.S. troops. Bridges further provided advice about the best way to fortify an ISIS encampment to repel an attack by U.S. Special Forces, including by wiring certain buildings with explosives to kill the U.S. troops. Then, in January 2021, Bridges provided the OCE with a video of himself in body armor standing before a flag often used by ISIS fighters and making a gesture symbolic of support for ISIS. Approximately a week later, Bridges sent a second video in which Bridges, using a voice manipulator, narrated a propaganda speech in support of the anticipated ambush by ISIS on U.S. troops.
Bridges is charged in the complaint with (1) attempting to provide material support to ISIS, in violation of 18 U.S.C. § 2339B, which carries a maximum sentence of 20 years in prison; and (2) attempting to murder U.S. military service members, in violation of 18 U.S.C. § 1114, which carries a maximum sentence of 20 years in prison. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
The Justice Department praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force (JTTF), which consists of agents and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, U.S. Army Counterintelligence, the FBI Washington Field Office, the FBI Atlanta Field Office and its Savannah Resident Agency, the FBI Cleveland Field Office, the FBI’s Counterterrorism Division, the U.S. Attorney’s Office for the Southern District of Georgia, the Air Force Office of Special Investigations, U.S. Army Criminal Investigation Command, and the U.S. Army 3rd Infantry Division.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Matthew Hellman, and Sidhardha Kamaraju are in charge of the prosecution, with assistance from Trial Attorneys Michael Dittoe and Lauren Goddard of the Counterterrorism Section of the Department of Justice’s National Security Division.
Statement of Acting Attorney General Jeffrey A. Rosen Regarding Nationwide Safety and Security for Inauguration DayRead the Press Release
Click to view video.
Tomorrow, the Nation and the world will witness an orderly and peaceful transfer of power in the United States, as the Chief Justice of the Supreme Court swears in President-Elect Biden. Throughout our Nation’s proud history, this ceremony has served as a beacon of democracy and a testament to the enduring strength of our Constitution.
By contrast, the violence we witnessed at the Capitol two weeks ago was an intolerable travesty, which is why the Justice Department has now brought charges against more than one-hundred individuals and has investigations of many others underway.
The Department of Justice is committed, together with our federal, state, and local law enforcement partners, to ensuring a safe and peaceful Inauguration – one that reflects our Nation’s enduring highest values.
As I have repeatedly said over the last two weeks, the Justice Department will have no tolerance for anyone who attempts to mar the day with violence or other criminal conduct. Anyone who does that will be caught, and they will be prosecuted.
Indeed, over the past two weeks, we have seen friends, family members, co-workers, and others reporting information to us about those who were involved in the breach of the Capitol on January 6th. The FBI has received nearly 200,000 digital tips from the public. The American people have demonstrated that they will not allow mob violence to go unanswered. Violence and senseless criminal conduct are not the right way to resolve differences or promote change in our country.
So, rest assured that every level of law enforcement and the National Guard are working around the clock here in Washington, D.C., to provide safety and security for Inauguration Day, and that federal, state, and local law enforcement all around the country are doing the same in our state capitols and government buildings across all fifty states.
As Americans, we all should seek to have a safe and peaceful Inauguration Day, and if we hold fast to our country’s Constitution and traditions, we will.
Justice Department Joins Computational Antitrust Project at Stanford Law SchoolRead the Press Release
WASHINGTON – The Department of Justice announced today that it will participate in the Computational Antitrust project, hosted by the Stanford University CodeX Center and created by Professor Thibault Schrepel. The project brings together academics from law, computer science, and economics as well as developers, policymakers, and antitrust agencies from around the world to discuss how technology and automation can improve antitrust enforcement.
“There are important debates happening today about how we should enforce the antitrust laws, but everyone agrees that enforcement agencies should make decisions using the best tools available,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “We look forward to being part of this valuable dialog about antitrust enforcement.”
As part of the Computational Antitrust project, representatives from the Antitrust Division will participate in regular workshops and dialogs about how to integrate cutting-edge computational developments into antitrust law and policy. The Antitrust Division’s initial representatives will be David Lawrence, Chief of the Competition Policy and Advocacy Section, and Eric Dunn, an attorney in that section. The project’s focus is described in further detail in a recent paper by Professor Schrepel.
The division’s participation in the Computational Antitrust project builds on several other initiatives announced last year to increase the division’s capabilities and engagement in emerging technologies relevant to antitrust enforcement. For example, the division has offered attorneys and staff the opportunity to take coursework focused on blockchain, artificial intelligence and Machine Learning at the Massachusetts Institute of Technology’s Sloan School of Management, and last year held a Public Workshop on Venture Capital and Antitrust, which was co-hosted with Stanford University’s Graduate School of Business and Stanford Law School. Together, these efforts reflect a commitment to ensuring that the division remains at the leading edge of antitrust enforcement.
To learn more about the Computational Antitrust project and other participating agencies, please visit the project’s website.
Former Construction Executive Sentenced to 38 Months in PrisonRead the Press Release
A former senior New York construction official was sentenced to 38 months in prison today for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, for more than eight years, Anthony Guzzone attempted to evade his federal income taxes. Guzzone, the former Director of Global Construction at Bloomberg LP in New York, failed to report to the IRS over $1.45 million in bribes he received from subcontractors performing work at Bloomberg construction jobs. Guzzone, together with other Bloomberg managers and officials at Turner Construction, solicited a total of over $6 million in bribes, which was typically paid to them in cash. On other occasions, Guzzone received in-kind bribes in the form of free construction work performed on his home and tickets to expensive events like the Super Bowl.
One Bloomberg manager involved in the scheme, Michael Campana, had subcontractors pay for the catering hall at his wedding, as well as the wedding photographer. Campana was previously sentenced to 24 months in prison based on his failure to report the bribery income. Based on Guzzone’s failure to report the bribe income between 2010 and 2017, he caused a tax loss to the IRS of approximately $450,000. Two Turner Construction officials, Ronald Olson and Vito Nigro, are awaiting sentence.
In addition to a term of imprisonment, U.S. District Court Judge Lewis Liman sentenced Guzzone to three years of supervised release, and ordered him to pay $574,005 in restitution to the IRS, which comprised his outstanding taxes and interest.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-CI as well as Assistant U.S. Attorney David Lewis for the Southern District of New York and Senior Litigation Counsel Stanley Okula of the Tax Division who prosecuted the case.
Foreign-Language Training Companies Admit to Participating in Conspiracy to Defraud the United StatesRead the Press Release
Two providers of foreign-language services, Comprehensive Language Center Inc. (CLCI), based in the Washington, D.C., area, and Berlitz Languages Inc. (Berlitz), based in New Jersey, were charged with participating in a conspiracy to defraud the United States by impeding, impairing, obstructing, and defeating competitive bidding for a multi-million dollar foreign-language training contract issued by the National Security Agency (NSA) in 2017, the Department of Justice announced today.
“These charges reaffirm the Antitrust Division’s commitment to combating anticompetitive conduct that victimizes government agencies,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The actions of these companies corrupted the competitive bidding process put into place by the NSA for vital language training services.”
“The result of today’s announcement demonstrates the FBI’s enduring commitment to vigorously address allegations of all types of corruption that may obstruct or hinder the right to fair competition in the marketplace,” said Special Agent in Charge George M. Crouch Jr. of the FBI Newark Field Office.
According to the one-count felony charges filed today in the U.S. District Court for the District of New Jersey, Berlitz and CLCI participated in a conspiracy to defraud the United States by impeding, impairing, obstructing, and defeating competitive bidding for a contract to provide foreign-language training services to the NSA. According to court documents, as part of the conspiracy, Berlitz and CLCI facilitated the submission of false and misleading bid information to the NSA. As a result, competition was suppressed among legitimately qualified bidders for the contract, obstructing, by dishonest means, the government’s ability to benefit from a competitive bidding process. The charged conspiracy began as early as March 2017 and continued until as late as December 2017.
The Antitrust Division also announced deferred prosecution agreements resolving the charges against Berlitz and CLCI. Under the agreements, the companies admitted to participating in the charged conspiracy, agreed to cooperate fully with any related criminal investigation and prosecution, and agreed to maintain a compliance and ethics program designed to prevent and detect violations such as the one charged. Pursuant to the agreements, Berlitz also agreed to pay a $147,000 criminal penalty and CLCI agreed to pay a $140,000 criminal penalty, and both companies agreed that they were jointly and severally liable to pay $56,984 in victim compensation to the NSA.
Berlitz and CLCI are each charged with a violation of 18 U.S.C. § 371, which carries a maximum penalty of a $500,000 fine for companies.
The charges are the result of a federal antitrust investigation into fraud and anticompetitive conduct related to foreign-language training contracts being conducted by the Antitrust Division’s New York Office, with the assistance of the FBI’s Newark, New Jersey, Field Office and the NSA Office of the Inspector General. Anyone with information in connection with this investigation should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.html.
Environment and Natural Resources Division Distributes Memorandum Summarizing Enforcement Policies and PrioritiesRead the Press Release
On Friday, the Environment and Natural Resources Division publicly distributed a memorandum summarizing important principles and priorities for environmental enforcement. The memorandum, issued Jan. 14 by outgoing Assistant Attorney General Jeffrey Bossert Clark, emphasizes that robust enforcement of our nation's environmental laws remains one of the division’s highest priorities. It emphasizes that, when engaged in criminal and civil enforcement, it is important that the division continue to enhance the fair and impartial application of the law.
The memorandum collects and reflects recent policies and guidance within the division, from around the Department of Justice, and in orders from the President for the continued just implementation of these responsibilities and for ensuring due process to the citizens of the United States who must have fair notice of the laws they are expected to obey. It articulates several key enforcement priorities that the division has pursued in recent years, including a focus on clean air, clean water, and clean land; a commitment to fighting fraud and protecting taxpayer money; and an emphasis on protecting America’s workers and infrastructure.
The memorandum — along with three other new memoranda regarding (1) the proper scope of equitable mitigation, (2) new restrictions on the use of Supplemental Environmental Projects, and (3) a discussion of additional recommendations on the use of enforcement discretion — are available on the division’s webpage: https://www.justice.gov/enrd/selected-documents.
Developer Agrees to Mitigate Impacts to Streams and WetlandsRead the Press Release
A developer and his companies have agreed to effectuate $900,000 in compensatory mitigation, preserve undisturbed riparian areas, conduct erosion-control work on streams, and be subject to a prohibitory injunction to resolve alleged violations of the Clean Water Act (CWA) on property north of Houston, Texas, the Justice Department announced today.
“Today’s substantial settlement involving the unpermitted filling of streams and wetlands, if approved by the court, will draw to a close this long-running Clean Water Act litigation,” said Eric Grant, Deputy Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Today’s agreement serves the public interest in enforcement of the Clean Water Act and provides long-overdue mitigation for these alleged violations.”
The case stems from activities Thomas Lipar conducted to create the Benders Landing Estates housing development on property containing streams and wetlands that feed into Spring Creek and the West Fork of the San Jacinto River, which, in turn, flow into Lake Houston.
Beginning in 2005, the defendants operated earthmoving machinery and filled substantial segments of streams and acres of abutting wetlands. Despite receiving information about the aquatic condition of the property, Lipar did not seek a CWA dredge-or-fill permit. The settlement agreement reached today secures significant mitigation for these alleged violations, while providing fairness for developers who comply with the applicable laws.
The case is styled United States v. Lipar, No. 4:10-cv-01904 (S.D. Tex.). The proposed consent decree, lodged in the U.S. District Court in Houston, is subject to a 30-day comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department website at https://www.justice.gov/enrd/consent-decrees.
Agricultural Developer Agrees to Pay Clean Water Act Fines, Mitigate Impacts to Sensitive Streams and WetlandsRead the Press Release
A California agricultural developer has agreed to pay a civil penalty, preserve streams and wetlands, effect mitigation, and be subject to a prohibitory injunction to resolve alleged violations of the Clean Water Act (CWA) on property near the Sacramento River located in Tehama County, California, the Justice Department announced today.
Roger J. LaPant Jr. purchased the property in this case in 2011 and sold it in 2012 to Duarte Nursery Inc. which, in turn, sold it that same year to Goose Pond Ag Inc. Goose Pond’s activities on the property were the subject of a settlement announced by the Justice Department in September 2018 and approved by a federal judge in June 2019. Duarte’s activities on an adjoining site were the subject of a settlement agreement announced by the Justice Department in August 2017 and approved by a federal judge in December 2017.
“Today’s settlement involving the unpermitted filling of streams and wetlands, if approved by the court, will conclude the long-running Clean Water Act litigation involving these properties near the Sacramento River in Tehama County,” said Jonathan D. Brightbill, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “None of these defendants had traditionally farmed these lands, but instead attempted to profit commercially by acquiring and converting them to new uses in violation of the law. Like the Goose Pond settlement and decree entered in 2019 and the Duarte settlement and decree entered in 2017, today’s agreement serves the public interest in enforcement of the Clean Water Act and deterrence of future violations.”
“The Corps is pleased this longstanding enforcement action has been brought to a close,” said Michael Jewell, the Chief of the Regulatory Division for the U.S. Army Corps of Engineers’ Sacramento District. “Unlike most farmers in California’s Central Valley, Mr. LaPant conducted activities that were not lawful under the Clean Water Act. Had he heeded the words of his consultant or discussed his plans with my office in advance, the enforcement action could have been avoided. The Corps is always willing to talk to the public about the Regulatory Program and to provide information on jurisdiction, permit requirements, and any other aspects of the Program.”
LaPant has agreed to pay $250,000 in civil penalties; purchase $100,000 worth of compensatory mitigation credits; dedicate another 10 credits at a vernal pool conservation bank; effect long-term preservation streams, wetlands, and buffer areas on two sites with a total acreage of over 400 acres; and be subject to a prohibition on certain new activities in waters or wetlands absent pre-clearance from the U.S. Army Corps of Engineers. In total, the approximate cost of LaPant’s obligations under the settlement is $1.2 million.
This case stems from agricultural development activities LaPant conducted during his brief ownership of the property, which prior to his ownership had laid fallow and unfarmed for more than 20 years. LaPant bought the 1,500-acre property for $1.9 million and sold it less than a year later for $5.6 million. In between those transactions, evidence shows that LaPant operated earthmoving equipment through at least 900 acres of the property, including directly through streams and wetlands. The machinery included the dragging of metal shanks through the ground to break up or pierce highly compacted, impermeable or slowly permeable surface layers, or other similar kinds of restrictive soil layers. LaPant’s conduct in this case, part of an effort to convert the property to orchard use, contributed to the destruction or significant degradation of streams and wetlands at the site.
Even before LaPant purchased the site, he received information that alerted him to the presence of federally protected streams and wetlands on the property. Despite that information, he conducted earthmoving activities in streams and wetlands without a CWA dredge-or-fill permit. The settlement agreement reached today secures a significant penalty and mitigation for these violations, while providing fairness for agricultural developers who comply with the applicable laws.
The case is styled United States v. LaPant, No. 2:16-cv-01498-KJM-DB (E.D. Cal.). The proposed consent decree, lodged in the U.S. District Court in Sacramento, is subject to a 30-day comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department website at https://www.justice.gov/enrd/consent-decrees.
Federal Court Restrains Toledo Pharmacy and Two Pharmacists from Dispensing Opioids or Other Controlled SubstancesRead the Press Release
A federal court in Ohio issued a temporary restraining order enjoining a Toledo, Ohio, pharmacy and two of its pharmacists from dispensing opioids and other controlled substances, the Department of Justice announced today.
In a civil complaint filed Jan. 6, 2021, and unsealed Jan. 14, 2021, in the Northern District of Ohio, the United States alleges that Shaffer Pharmacy, its pharmacist owner Thomas Tadsen, and pharmacist Wilson Bunton repeatedly dispensed opioids and other controlled substances in violation of the Controlled Substances Act. The complaint alleges that over a period of several years, the defendants dispensed highly addictive and highly abused prescription opioids while ignoring “red flags” — that is, obvious indications of drug diversion and drug-seeking behavior. U.S. District Judge Jack Zouhary granted the government’s request for a temporary restraining order, which was filed along with the complaint.
“Federal law requires pharmacists to ensure that the controlled substance prescriptions they fill are medically legitimate,” said Acting Assistant Attorney General Jennifer B. Dickey of the Justice Department's Civil Division. “The Department of Justice will continue to work with DEA and our law enforcement partners to combat the opioid crisis by holding accountable pharmacies that abandon their obligations.”
“The illegal prescribing or dispensing of narcotics by medical personnel only serves to further worsen the opioid epidemic in northern Ohio and increase the number of overdose deaths in our community,” said Acting U.S. Attorney Bridget M. Brennan for the Northern District of Ohio. “Allegations of prescription misuse continue to be a priority for this office, and offenders should expect significant consequences.”
“Dispensing controlled substances is a privilege that requires abiding by the law,” said Drug Enforcement Administration (DEA) Special Agent in Charge Keith Martin. “DEA is committed to ensuring that those who have pledged to follow our nation’s drug laws are living up to that responsibility.”
“We continue to face an uphill battle against drug abuse and addiction, and it is unthinkable that a licensed provider would contribute to this growing epidemic,” said Special Agent in Charge Eric B. Smith of the FBI, Cleveland Division. “Restraining the ability of these defendants to continue filling prescriptions without medical necessity is a significant step. The FBI will continue efforts to identify and hold accountable any medical professional that violates their legal obligation to do no harm when they engage in criminal misconduct."
The complaint alleges that the defendants failed to take steps required to resolve red flags and ensure the legitimacy of prescriptions before filling them. According to court documents, the prescriptions dispensed by the defendants often involved highly abused opioid painkillers such as oxycodone, hydrocodone, oxymorphone, buprenorphine, and fentanyl, often in dangerous combination with other prescription drugs such as benzodiazepines (i.e., sedatives indicated for the treatment of anxiety, such as Xanax), and muscle relaxants (e.g., carisoprodol, also known by its brand name, Soma). The complaint seeks civil penalties as well as a permanent injunction against the defendants.
The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.
The United States is represented by Assistant U.S. Attorneys Patricia Fitzgerald and Angelita Cruz Bridges for the Northern District of Ohio, and Trial Attorneys Scott Dahlquist and Maryann McGuire of the Justice Department’s Consumer Protection Branch. This investigation is being conducted by the DEA, FBI, U.S. Department of Health and Human Services Office of Inspector General, the State of Ohio Board of Pharmacy, the Ohio Bureau of Workers’ Compensation, and the Ohio Attorney General’s Medicaid Fraud Control Unit.
District Court Orders Washington State Company and its Owner to Stop Distributing Adulterated Juice ProductsRead the Press Release
A federal court permanently enjoined a Sunnyside, Washington, company from preparing, processing, and distributing adulterated juice and other food products, the Department of Justice announced today.
In a complaint filed on Nov. 6, 2020, at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Valley Processing Inc., along with the company’s owner and president, Mary Ann Bliesner, violated the Federal Food, Drug, and Cosmetic Act (FDCA) by distributing adulterated apple, pear, and grape juice products. The company formerly supplied millions of juice servings used in school lunch programs. The complaint alleged that the defendants processed juice under grossly insanitary conditions, failed to adhere to relevant food safety standards, and distributed to the public newer juice mixed with older, potentially contaminated juice.
“Americans must be confident that the food they and their families consume is safe,” said Acting Assistant Attorney General Jennifer B. Dickey of the Justice Department’s Civil Division. “We will continue to work with our partners at FDA to stop companies from taking shortcuts at the expense of safety.”
“The purity and security of harvested and processed foods are matters of paramount importance to our citizen consumers, particularly during unsettled times,” said U.S. Attorney William Hyslop for the Eastern District of Washington. “The Justice Department and our FDA partners work hard to ensure compliance with food processing safety and purity standards. We support these efforts which are essential to promoting confidence in Washington’s and our nation’s food sources.”
“Food processors who do not comply with FDA regulations can put consumers’ health and well-being in danger. With this consent decree, we’re taking action to protect Americans, including children in this case, from consuming foods that have been processed in violation of the law,” said Judy McMeekin, Pharm.D., FDA’s Associate Commissioner for Regulatory Affairs. “The FDA is fully committed to taking appropriate measures against those who disregard food safety standards and distribute adulterated food to the public.”
According to the complaint filed in U.S. District Court for the Eastern District of Washington, FDA inspections revealed that the defendants’ juice products contained inorganic arsenic and patulin — toxins that can pose health risks to consumers. FDA found that the defendants did not analyze or investigate data from their raw fruit suppliers, as required by law, to determine the origin of these food hazards. The complaint also alleged that Valley Processing stored grape juice concentrate that was several years old outside in covered barrels. The complaint alleged that samples of the old juice concentrate were found to be contaminated with filth and mold, yet defendants combined the older juice with newer lots and distributed the mixture to consumers and schools. The complaint alleged that the defendants promised to stop using the old juice, but a subsequent 2019 FDA inspection showed the defendants continued to blend the older juice with newer juice.
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The order entered by the district court permanently enjoins the defendants from violating the FDCA and requires that they destroy any food, including any juice products, still in their possession. As part of the settlement, defendants represented that they are no longer engaged in processing, preparing, packing, or distributing any type of food. Before processing or distributing any food in the future, the defendants first must notify FDA in advance, comply with specific remedial measures set forth in the injunction, and permit FDA to inspect their facilities and procedures.
This matter was handled by Trial Attorney Kendrack D. Lewis of the Consumer Protection Branch in the Department of Justice’s Civil Division, with the assistance of Senior Counsel Tara Boland of the FDA’s Office of the Chief Counsel and Assistant U.S. Attorney Tim M. Durkin of the U.S. Attorney’s Office for the Eastern District of Washington.
For more information about 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 Washington, visit its website at https://www.justice.gov/usao-edwa.
Appeals Court Upholds 27 Month Prison Sentence of Former Penn National Horse TrainerRead the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that on Jan. 11, 2021, the U.S. Court of Appeals for the Third Circuit affirmed both the conviction and 27-month prison sentence of Murray Rojas, age, 54, of Grantville, Pennsylvania. That sentence was imposed by Senior U.S. District Court Judge Sylvia H. Rambo on May 6, 2019, after Rojas was convicted by a jury on multiple counts of causing prescription animal drugs to become misbranded in violation of the Federal Food, Drug, and Cosmetic Act (FDCA), as well as conspiracy to commit misbranding.
According to Acting U.S. Attorney Bruce D. Brandler, between 2002 and 2014, Rojas directed veterinarians to administer drugs to horses at Penn National Racetrack on race day in violation of track rules and state law. Rojas argued on appeal that the District Court failed to properly instruct the jury on the distinction between the terms “administer” and “dispense,” as used in the FDCA, as it pertained to Rojas directing vets to inject animal drugs into her horses on race day. The Court of Appeals disagreed and found that Congress intended the term “dispense” to include situations in which a veterinarian personally administers a drug, and that Rojas caused that unlawful dispensing when she ordered the veterinarians to inject the horses. The Court of Appeals also held that the government presented sufficient evidence at trial that Penn National veterinarians dispensed prohibited drugs when they injected Rojas’s horses within 24 hours of post time at Rojas’s direction, and that Rojas herself also injected the prohibited drugs into her horses within 24 hours of post time, all in violation of the FDCA.
The Court of Appeals also rejected Rojas’ claim that Judge Rambo erred in excluding evidence that the drugs given to the horses were for therapeutic purposes and were not performance enhancing drugs. The Court of Appeals held that Pennsylvania’s horse racing regulations prohibit administering almost all drugs to horses within 24 hours of post time and the regulations do not distinguish between therapeutic and performance-enhancing drugs.
Finally, the Court of Appeals upheld Judge Rambo’s sentencing Rojas for felony, rather than misdemeanor, misbranding violations. The Court of Appeals found that Rojas acted with the requisite intent to defraud or mislead, which is a requirement for a felony misbranding conviction.
The case was investigated by the by the Federal Bureau of Investigation, the Pennsylvania Department of Agriculture’s Horse Racing Commission and the Food and Drug Administration (FDA) Office of Criminal Investigations. The government was represented by Assistant U.S. Attorney William Behe, Assistant Director John Claud of the Justice Department's Consumer Protection Branch, and Senior Counsel Laura Pawloski of the FDA’s Office of Chief Counsel.
न्याय विभाग (जस्टिस डिपार्टमेंट) टैक्सस स्थित स्टाफ़िंग कम्पनी के साथ प्रवासन संबंधी भेदभाव का समाधान करने के लिए व्यवस्थापन करता हैRead the Press Release
न्याय विभाग (डिपार्टमेंट ऑफ जस्टिस) ने आज घोषणा की कि वह डलस, टैक्सस में स्थित एक स्टाफ़िंग कम्पनी, National Systems America, LP (नेशनल सिस्टम्स अमेरिका, एलपी) के साथ एक समझौते पर पहुंचा है। यह समझौता विभाग के इस दावे का समाधान करता है कि नेशनल सिस्टम्स ने आप्रवासन और राष्ट्रीयता अधिनियम (INA) का उल्लंघन किया है जब उसने (1) कुछ पदों के लिए आवेदकों पर नागरिकता संबंधी गैरकानूनी प्रतिबंध लगाए थे और (2) अमेरिकी नागरिक के लिए नहीं, लेकिन आवेदकों के वैध स्थायी निवासी होने पर नौकरी के लिए और आगे विचार किए जाने के लिए एक विशिष्ट कार्य प्राधिकरण दस्तावेज़ प्रदान करने को आवश्यक बनाया था।
नागरिक अधिकार प्रभाग के कार्यकारी सहायक अटार्नी जनरल जॉन बी. डौकस ने कहा कि, “प्रतिस्पर्धात्मक और तेजी से बदलते आईटी स्टाफ़िंग उद्योग में, स्टाफ़िंग कम्पनियों के लिए यह महत्वपूर्ण है कि नागरिकता के आधार पर नौकरी पर रखे जाने संबंधी गैरकानूनी प्रतिबंध न लगाएं।” “नियोक्ता नौकरी के प्रस्ताव को स्वीकार किए जाने से पहले कार्य करने के प्राधिकरण के सबूत पेश किए जाने की मांग नहीं कर सकते और उनका संयुक्त राज्य अमेरिका में काम करने के लिए प्राधिकरण को साबित करने के लिए स्वीकार्य कार्य प्राधिकरण दस्तावेज़ों को प्रस्तुत करने के कर्मचारी के कानूनी अधिकार के साथ हस्तक्षेप न करना ज़रूरी है।
इस जांच के आधार पर, डिपार्टमेंट ने यह निष्कर्ष निकाला कि नेशनल सिस्टम्स ने अपने ग्राहकों की प्राथमिकताओं के बारे में पूर्वानुमानों के आधार पर, इस बात की परवाह किए बिना कि ऐसा करने का कोई कानूनी औचित्य था या नहीं, केवल अमेरिकी-नागरिकों को नौकरी पर रखने संबंधी प्रतिबंध लागू किए। डिपार्टमेंट ने यह भी निष्कर्ष निकाला कि जब नेशनल सिस्टम्स गैर-अमेरिकी आवेदकों पर विचार करने का इच्छुक था, जैसे कि वैध स्थायी निवासी, तो कम्पनी ने चुनाव प्रक्रिया के अगले चरण में आगे भेजने से पहले उन्हें कार्य प्राधिकरण संबंधी विशिष्ट दस्तावेज़ दिखाने को ज़रूरी बनाकर उनके खिलाफ़ भेदभावपूर्ण व्यवहार किया।
आम भाषा में, INA नियोक्ताओं को किसी नौकरी के लिए केवल अमेरिकी नागरिकों पर विचार किए जाने को सीमित करने की इजाज़त देता है, जबकि ऐसा करना किसी कानून, विनियम, सरकारी अनुबंध या किसी कार्यकारी आदेश के तहत आवश्यक हो; लेकिन ऐसा करना केवल ग्राहक की भेदभावपूर्ण प्राथमिकता या ग्राहक की प्राथमिकता के पूर्वानुमान पर आधारित न हो। साथ ही INA नियोक्ताओं को कर्मचारियों की नागरिकता, आप्रवासन स्थिति या राष्ट्रीय मूल के आधार पर कार्य प्राधिकरण साबित करने के लिए अधिक या अलग-अलग दस्तावेज़ प्रदान करने का अनुरोध करने की भी मनाही करता है। इसकी बजाय, INA में, कांग्रेस ने निर्धारित किया कि सभी कार्य के लिए प्राधिकृत व्यक्ति, चाहे उनकी नागरिकता स्थिति कोई भी क्यों न हो, इस बात का चुनाव कर सकते हैं कि वे संयुक्त राज्य अमेरिका में काम करने के लिए प्राधिकरण को साबित करने के लिए कौन से कानूनी तौर पर स्वीकार्य दस्तावेज़ प्रदान करना चाहते हैं। हालांकि, INA नियोक्ताओं को असली न लगने वाले दस्तावेज़ों को अस्वीकृत करने की इजाज़त देता है। अंत में, INA नियोक्ता को किसी व्यक्ति के नौकरी के प्रस्ताव को स्वीकार करने से पहले उसके काम करने के प्राधिकरण की पुष्टि करने की इजाज़त नहीं देता है।
समझौते के अनुबंध के तहत, नेशनल सिस्टम्स संयुक्त राज्य अमेरिका को नागरिक जुर्माने के तौर पर $34,200 का भुगतान करेगा, अपने कर्मचारियों को INA की भेदभाव के खिलाफ प्रावधानों की आवश्यकताओं का प्रशिक्षण प्रदान करेगा, और कानून के मुताबिक भविष्य के अनुपालन को सुनिश्चित करने के लिए अपनी नीतियों में बदलाव करेगा।
नागरिक अधिकार प्रभाग के आप्रवासन और कर्मचारियों के अधिकार संबंधी अनुभाग (IER) INA के भेदभाव के खिलाफ प्रावधानों को लागू करने के लिए ज़िम्मेदार है। कानून नौकरी पर नियुक्त किए जाने, नौकरी से निकाले जाने या फीस के बदले काम पर भर्ती करने या संदर्भ देने में नागरिकता स्थिति और राष्ट्रीय मूल संबंधी भेदभाव; अनुचित दस्तावेज़ी प्रथाओं; और प्रतिशोध और धमकी को निषिद्ध करता है।
इस संक्षिप्त वीडियो के माध्यम से IER के काम और सहायता कैसे प्राप्त की जाए, के बारे में और जानें। आवेदक या कर्मचारी जो यह मानते हैं कि उनकी नागरिकता, आप्रवासन स्थिति, या नौकरी पर नियुक्त किए जाने, नौकरी से निकाले जाने, भर्ती किए जाने की प्रक्रिया के दौरान राष्ट्रीय मूल के आधार पर उनसे भेदभाव किया गया था या रोजगार पात्रता सत्यापन प्रक्रिया (फॉर्म I-9 और ई-सत्यापन) के दौरान भेदभाव किया गया था; या प्रतिशोध के भागी बने, वे एक आरोप दायर कर सकते हैं। जनता भी IER की कर्मचारी हॉटलाइन से 1-800-255-7688 पर सम्पर्क कर सकती है; IER की नियोक्ता हॉटलाइन को 1-800-255-8155 (सुनने में विकार वाले लोगों के लिए 1-800-237-2515, TTY) पर कॉल कर सकती है, या [email protected] पर ईमेल भेज सकती है; एक मुफ़्त वेबीनार के लिए साइन-अप करें; या IER की अंग्रेज़ी और स्पैनिश वेबसाइट्स पर जाएँ। IER से अपडेट्स प्राप्त करने के लिए GovDelivery पर सब्सक्राइब करें।
नागरिक अधिकार प्रभाग आपके नागरिक अधिकार संबंधी उल्लंघनों के बारे में जानना चाहता है। जनता के सदस्य नागरिक अधिकार प्रभाग के रिपोर्टिंग पोर्टल के माध्यम से संभावित नागरिक अधिकारों के उल्लंघनों की रिपोर्ट कर सकते हैं।