District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
DISH Network to Pay $210 Million for Telemarketing ViolationsRead the Press Release
The Department of Justice today announced a settlement in which DISH Network LLC (DISH) will pay $126 million in civil penalties to the United States for placing millions of telemarketing calls in violation of the Federal Trade Commission's Telemarketing Sales Rule (TSR).
This settlement represents the largest civil penalty ever paid to resolve telemarketing violations under the FTC Act, and exceeds the total penalties paid to the government by all prior violators of the TSR. DISH will also pay a combined $84 million to four states for violations of the Telephone Consumer Protection Act, for a total settlement of $210 million.
“The settlement sends a strong message to would-be violators that telemarketing laws and regulations cannot be ignored,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division.
This case was filed in 2009 and went to trial in 2016. The United States — along with its co-plaintiffs, the States of California, Illinois, North Carolina, and Ohio — alleged that DISH made millions of unlawful telemarketing calls to consumers and was responsible for millions more made by retailers that marketed DISH products and services. In a 2017 opinion, the district court found DISH liable for more than 66 million telemarketing violations of the TSR and other federal and state statutes, imposing significant compliance measures on DISH and awarding the plaintiffs $280 million in civil penalties and damages, with $168 million going to the United States and $112 million to the state plaintiffs. In 2020, the U.S. Court of Appeals for the Seventh Circuit affirmed those liability findings, but vacated and remanded the civil penalties and damages awards for recalculation.
As reflected in the stipulated judgment entered by the court today, DISH will pay the United States $126 million in civil penalties to resolve the monetary portion of the case and has agreed not to contest the court’s factual findings or liability determination. DISH will continue to follow the robust compliance measures imposed by the court in 2017. The injunction strictly prohibits any future telemarketing violations and significantly restricts DISH’s future telemarketing activities. DISH also has been ordered to prepare and abide by a telemarketing plan, submit telemarketing compliance materials to the department and the FTC twice annually until 2027, and provide compliance reports requested by the department or the FTC.
This matter was handled by attorneys in the Civil Division’s Consumer Protection Branch, including Assistant Director Lisa K. Hsiao and Trial Attorneys Patrick R. Runkle, Daniel Crane-Hirsch, and Benjamin A. Cornfeld. Mark B. Stern and Lindsey Powell of the division’s Appellate Staff handled the Seventh Circuit appeal. Lois Greisman, Will Maxson, and Russell Deitch of the FTC’s Division of Marketing Practices 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.
Maryland Man Pleads Guilty to Submitting False Claim to Steal Funds Intended for Afghanistan ReconstructionRead the Press Release
A Maryland man pleaded guilty today to filing a false claim for his role in a scheme to divert hundreds of thousands of dollars in State Department funds to his own use.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Special Inspector General for Afghanistan Reconstruction John F. Sopko, and the Department of State’s Assistant Inspector General for Investigations Michael Ryan made the announcement.
Oyetayo Fagbenro, 62, of Ellicott City, Maryland, pleaded guilty to one count of filing a false claim before U.S. District Chief Judge Beryl A. Howell of the U.S. District Court for the District of Columbia. Sentencing has been scheduled for Feb. 12, 2021, before Chief Judge Howell.
As part of his guilty plea, Fagbenro admitted that he was awarded three grants to build media centers at Afghan universities, as part of the United States’ continuing efforts in Afghan reconstruction. He admitted that between September 2010 and August 2012 he received approximately $6.9 million in advances for part of the work on the projects. He further admitted that in that same period he sent approximately $1.38 million from Afghan accounts funded by the State Department to persons he knew and entities he controlled in the United States and other countries, all outside of Afghanistan.
Fagbenro admitted that about $775,000 of the funds he sent outside Afghanistan went to relatives, friends, and corporate entities he controlled with no connection to the purposes of the grants. Fagbenro further admitted that in December 2012 he filed a document with the State Department for one of the grants certifying that he had spent all the State Department funds properly and that he needed more funds to complete the project. He has admitted that those statements were both false. Fagbenro has admitted that the State Department lost about $775,000 as a result of his fraud.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority for complex procurement fraud and corruption matters.
This case was investigated by the State Department Office of Inspector General and the Special Inspector General for Afghan Reconstruction. Trial Attorney James Gelber of the Criminal Division’s Fraud Section is prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Files Complaint to Stop Distribution of Unapproved, Misbranded, and Adulterated "Poly-MVA" ProductsRead the Press Release
The United States filed a civil complaint to stop a California company from distributing unapproved and misbranded drugs and adulterated animal drugs, the Department of Justice announced today.
In a complaint for permanent injunction filed Dec. 2, 2020, the United States alleged that AMARC Enterprises Inc.; Albert Lee Sanchez Jr.; and Gary L. Matson Sr. sold and distributed “Poly-MVA” and “Poly-MVA for Pets,” which the defendants claim can cure, mitigate, treat, or prevent disease, including cancer. According to the complaint, defendants’ Poly-MVA products are not generally recognized as safe and effective by qualified experts for the uses intended by the defendants in the products’ labeling. The complaint also alleges that the defendants intend for Poly-MVA to be administered intravenously. The U.S. Food and Drug Administration has previously warned defendants to cease making such claims.
“Marketing purported dietary supplements with unproven disease claims jeopardizes the public health,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “We will continue working with the FDA to stop the illegal sale of such products.”
“Patients suffering from cancer or any other disease should not be deceived into relying on unproven treatments. The sale of such unapproved products has the potential to cause delays in getting proper diagnosis and treatment,” said FDA Chief Counsel Stacy Amin. “Patients need to have confidence that the available drug products have been shown to be safe and effective for their intended use. The FDA is committed to taking decisive action against those who disregard the law and risk the public’s health by distributing unapproved drugs for their personal financial gain.”
The complaint alleges that that the disease claims defendants make for Poly-MVA and Poly-MVA for Pets lack support from published, adequate, and well-controlled clinical studies. The complaint also asserts that, because Poly-MVA’s labeling does not have adequate directions for lay users, the product is misbranded. Additionally, the complaint alleges that Poly-MVA for Pets is an adulterated new animal drug because it lacks an approved application. The Department of Justice filed the complaint in the U.S. District Court for the Southern District of California at the request of FDA.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
The case is being handled by Trial Attorney Shannon Pedersen of the Justice Department Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel Seth I. Heller of the FDA’s Office of Chief Counse
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
Workrite Companies to Pay $7.1 Million to Settle Alleged Furniture OverchargesRead the Press Release
Ergonomic office furniture maker Workrite Ergonomics LLC, a Delaware company, and its parent, Knape & Vogt Manufacturing Co. (collectively, Workrite), have agreed to pay $7.1 million to resolve allegations under the False Claims Act that they overcharged the federal government for office furniture under General Services Administration (GSA) contracts, the Department of Justice announced today.
“Companies that do business with the United States are expected to charge the government appropriately for their services,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “We will continue to protect the American taxpayers and hold accountable those who misuse federal funds.”
“Federal contractors must be honest and forthcoming,” said U.S. Attorney David L. Anderson of the Northern District of California. “Contractors that overcharge the American taxpayer will be held accountable.”
“American taxpayers deserve fair prices and accurate information from GSA contractors,” said GSA Inspector General Carol Fortine Ochoa. “I appreciate the hard work and dedication that led to this significant recovery.”
“The settlement is a positive outcome that holds Workrite accountable for its questionable business practices,” said Special Agent in Charge Bryan D. Denny, Defense Criminal Investigative Service (DCIS), Western Field Office. “This is but one example of the law enforcement and oversight communities’ on-going, joint efforts to be good stewards of American taxpayer dollars.”
This settlement relates to a contract under which Workrite provided office furniture to government entities from 2009 to 2017 through GSA’s Multiple Award Schedule (MAS) program. The MAS program provides the government with a streamlined process to procure commonly used commercial goods and services. The settlement resolves allegations that Workrite did not fulfill its contractual obligations to provide GSA with accurate information about its commercial sales practices during contract negotiations, and did not subsequently extend lower prices to government customers as required by the GSA contract’s price reduction clause.
The allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act by Michael J. Franchek, of Park City, Utah, a former Workrite sales manager. The Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Franchek will receive approximately $1.27 million from the settlement proceeds.
The settlement with Workrite was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Northern District of California, the GSA’s Office of the Inspector General, the Department of State’s Office of Inspector General, the DCIS, the Defense Contract Audit Agency, and the U.S. Department of Veterans Affairs’ Office of Inspector General.
The lawsuit is captioned United States ex rel. Franchek v. Workrite Ergonomics, LLC, No. 16-cv-02789 (N.D. Cal.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
U.S. Trustee Program Reaches Settlement with McKinsey and Company to Withdraw and Waive its Fees in the Westmoreland Coal Bankruptcy CaseRead the Press Release
The Department of Justice’s U.S. Trustee Program (USTP) has entered into a settlement agreement with global consulting firm McKinsey & Company (McKinsey) requiring McKinsey to forego payment of fees in the Westmoreland Coal bankruptcy case pending in the U.S. Bankruptcy Court for the Southern District of Texas (Westmoreland Case). The agreement, which is subject to review and approval by the bankruptcy court, resolves the USTP’s objection to the adequacy of McKinsey’s disclosures of connections and possible conflicts of interest in the Westmoreland Case.
The USTP previously reached a $15 million settlement with McKinsey in February 2019 to address past disclosure practices by McKinsey in three bankruptcy cases, including the Westmoreland Case. The USTP had objected to McKinsey’s initial application seeking to be retained in the Westmoreland Case, and after the prior settlement McKinsey withdrew that application. McKinsey later made new disclosures in a renewed attempt to be retained in the Westmoreland Case. The USTP again objected, alleging that the disclosures remained deficient because McKinsey failed to disclose the connections of all of its affiliates, failed to make adequate disclosures regarding its investments in entities that could create a conflict of interest, and failed to address inconsistencies concerning its disclosure of confidential client connections.
“In bankruptcy, professionals who are paid at the expense of the debtor company’s creditors, employees, and shareholders must be free of any actual or potential conflicts of interest,” said USTP Director Cliff White. “Under bankruptcy law, this also entails detailed disclosures to ensure that the professionals can provide single-minded loyalty to the debtor’s stakeholders. Should any professionals fail to meet this standard, regardless of size, complexity, or motivation, they will be held accountable. This settlement ensures that McKinsey is held accountable for its conduct in this case.”
Settlement Terms
Under the terms of the settlement, McKinsey’s application seeking employment in the Westmoreland Case will be withdrawn. As a result, McKinsey will not seek to recover any fees in connection with services rendered in the case that would otherwise be subject to review and approval of the court. While the total amount of fees it is waiving is unknown, McKinsey rendered services throughout the case and likely would have sought approval for, and reimbursement of, millions of dollars in fees and expenses.
In addition, McKinsey has for the first time agreed that it will fully disclose all affiliate connections and all confidential client connections in any bankruptcy case in which it seeks to be retained in the future, unless the bankruptcy court orders otherwise.
The USTP has agreed to withdraw its pending objection in the Westmoreland Case and to work cooperatively, as it does with all professionals seeking to be employed in bankruptcy cases, to ensure the adequacy of McKinsey’s disclosures relating to its proposed retention in future bankruptcy cases. The USTP continues to review McKinsey’s practices with respect to its investment affiliates.
While the settlement resolves any actions that could be brought by the USTP for McKinsey’s inadequate disclosures in the Westmoreland Case, it does not impact the rights of other third parties, including any parties or government agencies not participating in the settlement. This settlement, as with the prior settlement, is limited to resolving McKinsey’s disclosure deficiencies and does not address or resolve, among other things, claims relating to actual or potential conflicts of interest.
The USTP has an ongoing initiative to ensure the rigorous review of applications to employ professionals, including those who have investment arms and complex multi-affiliate organizational structures. The USTP’s public emphasis on enforcing conflict and disclosure set forth in bankruptcy law has resulted in more complete disclosures made by these professionals in cases across the country.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 90 field office locations. Learn more information on the Program at: https://www.justice.gov/ust.
Justice Department Files Lawsuit Against Facebook for Discriminating Against U.S. WorkersRead the Press Release
The Department of Justice announced today that it filed a lawsuit against Facebook Inc. for discriminating against U.S. workers.
The lawsuit alleges that Facebook refused to recruit, consider, or hire qualified and available U.S. workers for over 2,600 positions that Facebook, instead, reserved for temporary visa holders it sponsored for permanent work authorization (or “green cards”) in connection with the permanent labor certification process (PERM). The positions that were the subject of Facebook’s alleged discrimination against U.S. workers offered an average salary of approximately $156,000. According to the lawsuit, and based on the department’s nearly two-year investigation, Facebook intentionally created a hiring system in which it denied qualified U.S. workers a fair opportunity to learn about and apply for jobs that Facebook instead sought to channel to temporary visa holders Facebook wanted to sponsor for green cards.
“The Department of Justice’s lawsuit alleges that Facebook engaged in intentional and widespread violations of the law, by setting aside positions for temporary visa holders instead of considering interested and qualified U.S. workers,” said Assistant Attorney General Eric S. Dreiband of the Civil Rights Division. “This lawsuit follows a nearly two-year investigation into Facebook’s practices and a ‘reasonable cause’ determination by the Justice Department’s Civil Rights Division. Our message to workers is clear: if companies deny employment opportunities by illegally preferring temporary visa holders, the Department of Justice will hold them accountable. Our message to all employers — including those in the technology sector — is clear: you cannot illegally prefer to recruit, consider, or hire temporary visa holders over U.S. workers.”
The department’s lawsuit alleges that beginning no later than Jan. 1, 2018 and lasting until at least Sept. 18, 2019, Facebook employed tactics that discriminated against U.S. workers and routinely preferred temporary visa holders (including H-1B visa holders) for jobs in connection with the PERM process. Rather than conducting a genuine search for qualified and available U.S. workers for permanent positions sought by these temporary visa holders, Facebook reserved the positions for temporary visa holders because of their immigration status, according to the complaint. The complaint also alleges that Facebook sought to channel jobs to temporary visa holders at the expense of U.S. workers by failing to advertise those vacancies on its careers website, requiring applicants to apply by physical mail only, and refusing to consider any U.S. workers who applied for those positions. In contrast, Facebook’s usual hiring process relies on recruitment methods designed to encourage applications by advertising positions on its careers website, accepting electronic applications, and not pre-selecting candidates to be hired based on a candidate’s immigration status, according to the lawsuit.
In its investigation, the department determined that Facebook’s ineffective recruitment methods dissuaded U.S. workers from applying to its PERM positions. The department concluded that, during the relevant period, Facebook received zero or one U.S. worker applicants for 99.7 percent of its PERM positions, while comparable positions at Facebook that were advertised on its careers website during a similar time period typically attracted 100 or more applicants each. These U.S. workers were denied an opportunity to be considered for the jobs Facebook sought to channel to temporary visa holders, according to the lawsuit.
Not only do Facebook’s alleged practices discriminate against U.S. workers, they have adverse consequences on temporary visa holders by creating an employment relationship that is not on equal terms. An employer that engages in the practices alleged in the lawsuit against Facebook can expect more temporary visa holders to apply for positions and increased retention post-hire. Such temporary visa holders often have limited job mobility and thus are likely to remain with their company until they can adjust status, which for some can be decades.
The United States’ complaint seeks civil penalties, back pay on behalf of U.S. workers denied employment at Facebook due to the alleged discrimination in favor of temporary visa holders, and other relief to ensure Facebook stops the alleged violations in the future. According to the lawsuit, and based on the department’s nearly two-year investigation, Facebook’s discrimination against U.S. workers was intentional, widespread, and in violation of a provision of the Immigration and Nationality Act (INA), 8 U.S.C. § 1324b(a)(1), that the Department of Justice’s Civil Rights Division enforces.
The PERM process is administered by the U.S. Department of Labor and allows employers to offer permanent positions to temporary visa holders by converting them to lawful permanent residents who may live and work in the United States on a permanent basis. However, the PERM process requires an employer to first demonstrate that there are no qualified and available U.S. workers for the position that the employer plans to offer to the temporary visa holder. The INA protects U.S. citizens, U.S. nationals, refugees, asylees, and recent lawful permanent residents from citizenship status discrimination in hiring, firing, and recruitment or referral for a fee. Workers who fall outside of these categories are not protected from citizenship status discrimination under the INA.
This lawsuit is filed as part of the Department of Justice Civil Rights Division’s Protecting U.S. Workers Initiative, which was started in 2017 and is aimed at targeting, investigating, and taking enforcement actions against companies that discriminate against U.S. workers in favor of temporary visa holders. The Civil Rights Division’s Immigrant and Employee Rights Section (IER) has reached numerous settlements under the Initiative, and employers have distributed or agreed to pay a combined total of more than $1.2 million in back pay to affected U.S. workers and civil penalties to the United States. These settlements involve employers that discriminated in their use of H-1B, H-2A, H-2B, and F-1 visas.
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, can file a charge. The public also can 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.
Members of the public can also report possible civil rights violations through the Civil Rights Division’s reporting portal.
El Departamento de Justicia entabla pleito contra Facebook por discriminar a trabajadores en este paísRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha entablado pleito contra Facebook, Inc. por discriminar a trabajadores en este país.
El pleito alega que Facebook se negó a reclutar, considerar o contratar a trabajadores cualificados y disponibles en este país para más de 2.600 puestos que en cambio, Facebook reservó para personas con visas temporales que había patrocinado para una autorización permanente para trabajar (o «tarjetas verdes»), en conexión con el proceso de certificación de trabajo permanente («PERM», por sus siglas en inglés). Los puestos que eran el sujeto de la alegada discriminación por parte de Facebook a trabajadores en este país ofrecían un salario medio de aproximadamente 156.000 $. Según el pleito y con base en la investigación del Departamento que duró casi dos años, Facebook creó intencionalmente un sistema de contratación que denegaba la oportunidad justa de trabajadores en este país de informarse sobre y solicitar puestos que Facebook, en cambio, intentaba reservar para personas con visas temporales que cuyas tarjetas verdes quería patrocinar.
«El pleito del Departamento de Justicia alega que Facebook vulneró la ley de manera intencionada y extendida al reservar puestos para trabajadores con visas temporales en vez de considerar a trabajadores cualificados e interesados en este país», declaró Eric S. Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «El pleito es el resultado de una investigación de casi dos años de las prácticas de Facebook y una determinación de “motivos fundados” por parte de la División de Derechos Civiles del Departamento de Justicia. Que quede claro nuestro mensaje para los trabajdores: si una compañía le niega una oportunidad de empleo al dar preferencia, de modo ilegal, a trabajadores con visas temporales, el Departamento de Justicia la hará rendir cuentas de sus acciones. Y que quede claro también nuestro mensaje para todos los empleadores, incluyendo a aquellos del sector tecnológico: no pueden dar una preferencia ilegal a trabajadores con visas temporales en vez de a trabajadores en este país a la hora de reclutar, considerar o contratarlos».
El pleito del Departamento alega que comenzando, a más tardar, el 1 de enero del 2018, y hasta al menos el 18 de septiembre del 2019, Facebook empleó tácticas que discriminaron a trabajadores en este país y dio preferencia, de manera rutinaria, a personas con visas temporales (incluyendo a personas con visas H-1B) para empleos asociados con el proceso PERM. En vez de realizar una búsqueda verdadera de trabajadores cualificados y disponibles en este país para puestos permanentes solicitados por estas personas con visas temporales, Facebook reservó los puestos para los trabajadores con visas temporales por motivos de su estatus migratorio, según indica la demanda. Más aún, la demanda alega que Facebook quería reservar puestos para personas con visas temporales, a costa de los trabajadores en este país, al abstenerse de publicar aquellas vacantes en su sitio web de profesiones, al requerir que los postulantes entregaran su solicitud por correo ordinario exclusivamente y al negarse a considerar a cualquier trabajador en este país que solicitó uno de esos puestos. En cambio, el proceso de contratación habitual de Facebook utiliza métodos de reclutamiento que alientan la entrega de solicitudes mediante la publicación de puestos en su sitio web de profesiones, aceptan solicitudes virtuales y no preseleccionan a candidatos para la contratación con base en el estatus migratorio del candidato, según afirma el pleito.
Durante el transcurso de su investigación, el Departmento determinó que los métodos de reclutamiento ineficaces de Facebook disuadieron a trabajadores en este país de solicitar alguno de sus puestos PERM. El Departamento concluyó que, a lo largo del período en cuestión, Facebook recibió cero o un solicitante que era trabajador en este país para el 99,7 % de sus puestos PERM, mientras que puestos comparables en Facebook que fueron publicados en su sitio web de profesiones durante un período de tiempo similar típicamente atraían a 100 solicitantes o más. Estos trabajadores en este país fueron denegados la oportunidad de ser considerados para los puestos que Facebook quería reservar para personas con visas temporales, según consta en el pleito.
No solo que las prácticas alegadas de Facebook discriminan a trabajadores en este país, sino que han tenido consencuencias adversas para personas con visas temporales al crear una relación de empleo que no queda sujeta a las mismas condiciones. Un empleador que incurre en las prácticas alegadas en el pleito contra Facebook puede esperar que más personas con visas temporales soliciten puestos y una mayor tasa de retención pos-contratación. Tales personas con visas temporales suelen tener una movilidad laboral limitada y es, por lo tanto, más probable que se queden con su compañía hasta poder ajustar su estatus, y para muchos eso puede tardar décadas.
La demanda de los Estados Unidos pide sanciones civiles, pagos retroactivos por parte de trabajadores en este país a los que fueron denegado un empleo en Facebook debido a la alegada discriminacion a favor de trabajadores con visas temporales y otros tipos de compensación con el fin de agarantizar que Facebook ponga fin en el futuro a las alegadas vulneraciones. Según el pleito, y con base en la investigación de casi dos años del Departamento, Facebook discriminó a trabajadores en este país de manera intencionada, extensa y en contra de una disposición de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés), Sección 1324b(a)(1) del Título 8 del Código de los EE. UU., la cual la División de Derechos Civiles del Departamento de Justicia hace cumplir.
El proceso PERM es administrado por el Departamento de Trabajo de los EE. UU. y permite a los empleadores ofrecer puestos permanentes a personas con visas temporales al convertirlos en residentes permanentes legales que pueden vivir y trabajar en los Estados Unidos de manera permanente. No obstante, el proceso PERM requiere primero que un empleador demuestre que no hay trabajadores cualificados y disponibles en este país para el puesto que el empleador tiene previsto ofrecer a trabajadores con visa temporal. Los ciudadanos estadounidenses, nacionales de los EE. UU., refugiados, asilados y residentes permanentes legales están protegidos bajo la INA de disriminación por motivos de su ciudadañía en los procesos de contratación, despido y reclutamiento o recomendación por comisión. Aquellos trabajadores que queden fuera de estas categorías no se benefician de la protección de la INA de la discriminación por motivos de estatus de ciudadanía.
Este pleito se entabló como parte de la Iniciativa para la Protección de Trabajadores en Este País de la División de Derechos Civiles, que fue lanzada en el 2017. Su meta es enfocarse en, investigar a y tomar medidas de aplicación de la ley contra compañías que discriminen a trabajadores en este país a favor de trabajadores extranjeros con visas temporales. La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles ha llegado a numerosos acuerdos bajo la Iniciativa y empleadores han distribuido o acordado distribuir un total combinado de más de 1,2 millónes de dólares por concepto de pagos retroactivos a trabajadores afectados en este país y sanciones civiles a los Estados Unidos. Estos acuerdos implican empleadores que fueron discriminatorios en su uso de visas de H-1B, H-2A, H-2B y F-1.
La IER 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.
Miembros del público también pueden informarnos de posibles vulneraciones de derechos civiles mediante el portal de declaraciones de la División de Derechos Civiles.
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U.S. Law Enforcement Takes Action Against Approximately 2,300 Money Mules in Global Crackdown on Money LaunderingRead the Press Release
The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies announced the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds. Europol announced a simultaneous effort, the European Money Mule Action (EMMA) today.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country. The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.
“Money mules fuel fraud against some of America’s most vulnerable populations. Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from American consumers and businesses to transnational criminal organizations.”
Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.
Some highlights from this year’s efforts are:
- Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.
- Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews.
- On approximately 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.
- The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.
- U.S. Attorney’s Offices and the Consumer Protection Branch filed 17 civil injunctive actions seeking court orders requiring money mules to stop facilitating fraudulent activity. Districts filing those actions include the Western District of Washington, District of South Carolina, Middle District of Florida, Southern District of Florida, Central District of California, Northern District of New York, and District of Colorado.
Additionally, more than 35 individuals were criminally charged or arrested for their roles in receiving victim payments and forwarding the fraud proceeds to accomplices or laundering fraud proceeds. Cases include:
- The U.S. Attorney’s Office for the Central District of California indicted three individuals for collecting parcels containing victim proceeds in a government imposter scheme.
- The U.S. Attorney’s Office for the District of Maryland indicted three individuals for opening bank accounts using falsified documents for the purposes of facilitating a business email compromise scam.
- The U.S. Attorney’s Office for the Western District of Texas indicted an individual for facilitating a lottery fraud scheme. The indictment also seeks to forfeit over $1.2 million.
- The U.S. Attorney’s Office for the Northern District of Ohio indicted two money mules who facilitated a grandparents scam.
- The U.S. Attorney’s Office for the Eastern District of Virginia charged a money mule who laundered gift cards purchased by fraud victims.
Additional criminal charges were brought by U.S. Attorney’s Offices in Southern District of Florida, Western District of Pennsylvania, Western District of North Carolina, Southern District of Texas, the Southern District of Mississippi, and the District of New Jersey.
The above charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“The success of the Money Mule Initiative is the culmination of the hard work by and coordination between the FBI and our federal, state, local, and international partners,” said FBI Director Christopher Wray. “This campaign has resulted in hundreds of criminal arrests worldwide and justice for countless victims. Today’s announcement should send a clear message to those engaged in this type of criminal activity: they are not outside the reach of law enforcement, and the FBI and its partners will relentlessly pursue them in order to protect the American people.”
“The Postal Inspection Service has zero tolerance for fraudsters who use the U.S. Mail to transport funds from scammed victims,” said Chief Postal Inspector Gary Barksdale. “Postal Inspectors use cutting-edge technology to build strong cases and campaigns like those announced today, which make significant progress towards disrupting money mule networks. Postal Inspectors and our law enforcement partners will be relentless in the pursuit of criminal organizations that perpetrate these schemes.”
The agencies participating in the Money Mule Initiative and community partners are undertaking an outreach campaign to increase awareness of how fraudsters use and recruit money mules. U.S. Attorney’s Offices across the country, through their Elder Justice Coordinators, will be reaching out to their communities to educate the public about money mules. AmeriCorp Seniors (formerly Senior Corps) will be working to increase awareness of how money mules facilitate fraud and how consumers can avoid unwittingly assisting fraud schemes.
Additionally, the American Bankers Association will be engaging with its members on money mules and the role of financial institutions in addressing the problem. The Department of Justice will also be distributing resources for state and local law enforcement on identifying, disrupting, investigating, and prosecuting money mules.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. In March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive efforts to combat elder fraud seek to halt the billions of dollars seniors lose each year to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
Kevin M. Epstein Appointed as U.S. Trustee for the Southern and Western Districts of TexasRead the Press Release
Attorney General William P. Barr has appointed Kevin M. Epstein as the U.S. Trustee for the Southern and Western Districts of Texas (Region 7) effective Jan. 1, 2021, the Executive Office for U.S. Trustees (EOUST) announced today. He will replace Henry G. Hobbs Jr., who is retiring after 28 years of government service.
Mr. Epstein has been a Trial Attorney with the U.S. Trustee Program for 21 years, first in San Jose, California, and since 2003 in San Antonio, Texas. During his tenure, he also has served as an Acting Assistant U.S. Trustee in charge of three different field offices. Mr. Epstein received his law degree from the University of Texas School of Law and his undergraduate degree from Duke University, both with honors.
“We are pleased to have Mr. Epstein join our leadership team,” said EOUST Director Cliff White. “His depth of legal experience and practical approach to management, along with his strong commitment to mission, will serve Region 7 well. I also want to extend my best wishes and deepest appreciation to Mr. Hobbs for his many significant contributions to the U.S. Trustee Program over the years.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 7 has offices in Austin, Corpus Christi, Houston, and San Antonio, Texas.
Justice Department Settles with Amtrak to Resolve Disability Discrimination Across its Intercity Rail SystemRead the Press Release
The Justice Department today announced that it reached an agreement with Amtrak, the National Railroad Passenger Corporation, 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 its inaccessible stations.
The accompanying complaint filed by the department alleges that Amtrak has violated and continues to violate the ADA by failing to make existing stations in its intercity rail transportation system readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs. The ADA gave Amtrak 20 years from the law’s 1990 enactment to make its stations accessible, requiring Amtrak to comply by July 26, 2010.
“When Congress enacted the Americans with Disabilities Act in 1990, it recognized the crucial role transportation plays in our lives,” said Eric Dreiband, Assistant Attorney General of the Civil Rights Division. “Transportation is the linchpin of access for people with disabilities to the full economic, social, and cultural benefits of our country. The Americans with Disabilities Act gave Amtrak until 2010 to make its stations accessible for individuals with disabilities. Amtrak failed or refused to comply with the Congressionally-mandated 2010 deadline, and Amtrak’s noncompliance with the Americans with Disabilities Act injured individuals with disabilities. Passengers with disabilities have waited long enough. Today’s agreement is a historic victory for individuals with disabilities, Amtrak, the rule of law, and the promise of equal opportunity for all Americans. We welcome Amtrak’s commitment today to bring its system into compliance with the law so that all individuals have an equal opportunity to barrier-free rail transportation.”
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.
To compensate those harmed by inaccessible stations while trying to travel by train, Amtrak will establish a $2.25 million settlement fund. Individuals with mobility impairments who traveled or desired to travel at 78 specified stations with significant accessibility issues may be compensated from the settlement fund.
This action was brought by the Disability Rights Section of the department’s Civil Rights Division. To read the settlement agreement, please click here, and to read the complaint, please click here.
This year marks the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. To learn more about the ADA’s history and impact, please visit the department’s ADA Anniversary webpage.
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 Assistant Attorney General Eric Dreiband on World AIDS DayRead the Press Release
On December 1, as our country joins in observing World AIDS Day, the Justice Department stands with all people living with Human Immunodeficiency Virus (HIV) and Acquired Immune Deficiency Syndrome (AIDS). Since the passage of the Americans with Disabilities Act (ADA) 30 years ago, the department has worked zealously, through enforcement, outreach, and technical assistance, to protect and advance the rights of people living with HIV and AIDS. This past year is no exception.
In recognizing World AIDS Day 2020 Assistant Attorney General for the Civil Rights Division Eric Dreiband gave the following statement:
“The Department of Justice is proud to play a central role in protecting the civil rights of individuals living with HIV and AIDS. On this day, the Civil Rights Division reaffirms its commitment to eradicating discrimination against those living with HIV or AIDS. Discrimination against individuals with HIV or AIDS is not only unlawful, it also is contrary to this nation’s ideals. As long as the unlawful treatment of persons living with HIV and AIDS continues, the Justice Department will continue its efforts to protect their rights.”
Notably, the Civil Rights Division’s enforcement efforts over the last year have helped ensure that people with HIV and AIDS are not turned away when seeking medical care because of unfounded fears and misinformation about the virus. In March 2020, the department entered into a settlement agreement with a nationwide pharmacy after an investigation substantiated that an individual was denied a flu shot after disclosing that he has HIV. The agreement requires the company to pay compensatory damages to the individual and a civil penalty to the government, and to provide training to all pharmacists on this issue.
Another settlement agreement resolved allegations that an individual, who due to back pain sought a breast reduction procedure at the recommendation of her primary care provider, was denied that procedure because she has HIV. The Illinois-based plastic surgery provider agreed to pay compensatory damages to the complainant and to ensure that its customers are aware that the practice welcomes patients with disabilities.
Still other resolutions addressed the ability of individuals living with HIV to access the vast array of goods, services, and privileges regularly available to all members of the public. One settlement agreement addressed the allegation that an individual with HIV was turned away by a provider of cosmetic medical procedures in California. The provider was required to pay compensatory damages to the individual and a civil penalty to the United States, and to provide training on ADA requirements. Another settlement agreement resolved allegations that an Illinois tattoo provider refused to provide tattoo services to a prospective customer who disclosed that she has HIV. The settlement agreement secured a monetary payment to the individual and the business adopted a non-discrimination policy.
Finally, this year we worked to ensure that children are not denied opportunities based on their actual or perceived HIV status. Specifically, we entered into a settlement agreement to resolve allegations that a daycare in New Jersey denied admission to the complainant’s child based on the perception that the child has HIV or hepatitis. The agreement requires the daycare to adopt a non-discrimination policy, train staff, and pay compensatory damages to the complainant.
As we support our federal agency partners in furthering the nation’s shared goal to eradicate HIV altogether, the department will continue its enforcement, outreach, and technical assistance work to ensure that people living with the virus enjoy their rights. Until the day when HIV is eliminated, we will act every day to stamp out the scourge of illegal discrimination against those living with the virus.
To learn more about the department’s work, please visit www.ada.gov/hiv.
More than 700 Members of Transnational Organized Crime Groups Arrested in Central America in U.S. Assisted OperationRead the Press Release
Today, senior law enforcement officials from the United States, El Salvador, Guatemala and Honduras announced criminal charges in Central America against more than 700 members of transnational criminal organizations, primarily MS-13 and 18th Street gangs, which resulted from a one-week coordinated law enforcement action under Operation Regional Shield (ORS).
ORS began in 2017 and is a Justice Department-led initiative to combat transnational organized crime that brings together gang prosecutors and investigators from El Salvador, Guatemala, Honduras, Mexico and the United States. Through quarterly meetings, this group has coordinated multi-country investigations and simultaneous takedowns throughout the region.
Authorities also announced the arrest of 36 individuals in El Salvador and Honduras involved in human smuggling networks that span Central America and the United States. Among those arrested in Honduras, include one police commissioner, one police deputy inspector, and three law enforcement agents. All arrestees were charged with human smuggling, money laundering and illegal association to commit a crime. The charges were announced by U.S. Attorney General William P. Barr, Attorney General Raul Melara of El Salvador, Attorney General María Consuelo Porras Argueta of Guatemala, and the Attorney General of Honduras, Oscar Fernando Chinchilla, through the Public Ministry’s Press Office.
“The U.S. Department of Justice and our law enforcement partners in Central America are committed to continued collaboration in locating and arresting gang members and associates engaged in transnational crimes,” said U.S. Attorney General Barr. “Our countries are made safer by working together to protect national security and to ensure public safety in our neighborhoods.”
In 2017, the U.S. Attorney General, together with the Attorneys General of the three Central American countries, committed to combatting transnational organized crime and reducing illegal migration to the United States through increased cooperation and capacity building of law enforcement partners. These efforts have led to the following results this week:
Prosecutors in El Salvador filed criminal charges against 1,152 members of organized crime groups in the country, primarily MS-13 and 18th Street Gangs. Within hours, the National Civil Police had captured 572 of the defendants for charges involving terrorism, murder, extortion, kidnapping, vehicle theft, robbery, conspiracy, narcotics trafficking, money laundering, weapons violations, human trafficking and human smuggling. Prosecutors and the Police also seized assets from these organized crime groups for forfeiture purposes.
In Guatemala, the Anti-Extortions Prosecution Office, the Prosecutor’s Office against Transnational Crimes, the Special Unit against Transnational Gangs, and police officers executed 80 search warrants, arrested 40 individuals, and served 29 arrest warrants against individuals already in custody, all of who are members of the 18th Street gang and MS-13. Authorities seized drugs and a firearm, and filed charges for extortion, illicit association, conspiracy to commit murder, and extortive obstruction. This investigation involves four transportation companies as victims of extortion in the amount of $54,523.
In Honduras, ORS joint operation took place in different phases during a one-week period resulted in the arrest of over 75 MS-13 and 18th Street gang members and five police officers and the execution of over 10 search warrants. Illegal firearms, cellular phones, drugs and money were seized. The arrestees were charged with illicit association, murder and conspiracy to commit murder, extortion and drug trafficking.
On February 9, President Donald J. Trump issued an Executive Order on Enforcing Federal Law with Respect to Transnational Criminal Organizations and Preventing International Trafficking to dismantle and eradicate transnational criminal organizations threatening the safety of our communities. Pursuant to that order, the U.S. Department of Justice has made dismantling transnational human smuggling networks and gangs, including MS-13, a top priority.
Regional Shield anti-gang efforts have led to charges against more than 11,000 gang members since 2017, including gang leaders nationwide. Many of these indictments included the seizure of gang assets including firearms and money. Also, during that time, more than a dozen smuggling/trafficking structures were dismantled. The capacity-building efforts in Central America of the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) have played a key role in bringing together the Attorneys General from El Salvador, Guatemala, and Honduras to form the regional operations targeting MS-13, 18th Street, and other gangs, as well as human smuggling transnational organizations. Additionally, as a result of OPDAT’s capacity building efforts, the Justice Department’s partners in Central America have strengthened cooperation and developed the skills, tools, and techniques to maximize results against all forms of transnational organized crime impacting the region and the United States.
“Since 2017, we have taken a joint and coordinated approach as northern triangle countries with our strategic partner, the United States of America,” said Attorney General Raul Melara of El Salvador. “To give our Salvadoran people a response and ensure that criminals face justice, we have strengthened the work of our Specialized Prosecution Units to be more effective in combating organized crime and terrorist organizations. I am committed as Attorney General to continuing this coordinated effort. We will only eradicate transnational organized crime by combining efforts as a region and by continuing to work together.”
“As Attorney General of the Republic and Chief of the Public Ministry, I reaffirm my commitment to the fight against transnational organized crime, one of the main goals of my administration,” said Attorney General María Consuelo Porras Argueta of Guatemala. “To this end, we have increased efforts to provide an effective response to the population through the creation of the Prosecutor’s Office against Transnational Crimes, the Special Unit against Transnational Gangs, the Special Unit against Crimes in Airports and Airfields, the signing of the statement of the Advisory Group of General Prosecutors of the Northern Triangle, which I have the honor to preside; among other strategic actions to combat transnational organized crime with frontal actions against drug trafficking, gangs, organized crime and smuggling of migrants.”
“I consider that, due to the regional threat posed by these transnational crimes, equal interagency and regional efforts should come into effect,” said Attorney General Oscar Fernando Chinchilla of Honduras. “Only by joining forces, the damaging consequences produced by these criminal organizations could be neutralized.”
In El Salvador, Guatemala, and Honduras, the investigations into transnational criminal organizations is being handled by regional gang prosecutors who receive State Department-funded training and mentoring from the Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and OPDAT. With support from State Department’s Bureau of International Narcotics and Law Enforcement, prosecutors from OPDAT helped establish task forces in the region and work with FBI’s local Transnational Anti-Gang (TAG) units, as well as HSI’s Transnational Criminal Investigative Units (TCIUs). These efforts have helped Central American partners convict thousands of criminals, seize over $1 billion in illicit assets, and coordinate dozens of transnational investigations with their U.S. counterparts.
Law enforcement agencies involved in this latest sixth ORS operation included El Salvador’s Fiscalia General de la Republica (FGR) and the Policia Nacional Civil (PNC); Honduras Policía Nacional, la Dirección Nacional de Servicios Especiales de Investigación (DNSEI), Agencia Técnica de Investigaciones Criminales (ATIC), and Fuerza Nacional Anti Maras y Pandillas (FNAMP) and Guatemala’s Prosecutor’s Office against Transnational Crimes, National Civil Police, Special National Division of Criminal Investigation, National Civil Police’s Anti-Gang Unit, Public Ministry, Anti-Extortions Prosecution Office, and the Special Unit against Transnational Gangs.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Photo courtesy of El Salvador Attorney General’s Office. Salvadoran Police arrest multiple gang members in Operation Regional Shield. Photo courtesy of El Salvador Attorney General’s Office. Salvadoran authorities seize cash from gang members which they will forfeit as proceeds of criminal activities. Photo courtesy of El Salvador Attorney General’s Office. Members of the 18th Street gang are arrested in Operation Regional Shield.Mas De 700 Miembros De Grupos Criminales Transnacionalales Son Arrestados En Centro America En Operativo Con Asistencia De Los Estados UnidosRead the Press Release
Oficiales principales de las agencias del orden público de los Estados Unidos, El Salvador, Guatemala y Honduras anunciaron hoy la radicación de imputaciones de más de 700 miembros de organizaciones criminales transnacionales, principalmente miembros de las pandillas de la MS-13 y Calle 18 en Centroamérica, en una operativo judicial coordinado que duró por una semana conocido como Operación Escudo Regional (OER). OER comenzó en el 2017 y es una iniciativa liderada por el Departamento de Justicia para combatir el crimen organizado transnacional que une a fiscales anti-pandillas e investigadores de El Salvador, Guatemala, Honduras, Mexico y los Estados Unidos. A través de reuniones de coordinación celebradas trimestralmente, este grupo ha coordinado investigaciones que abarcan varios países y arrestos a través de la región.
Las autoridades también anunciaron los arrestos de 36 individuos en El Salvador y Honduras involucrados con redes de tráfico de personas que abarcan Centroamérica y los Estados Unidos. Entre los imputados en Honduras se encuentra un comisionado de la policía, un sub-inspector de la policía y tres agentes del orden público. Los arrestados están imputados con violaciones de tráfico de personas, el lavado de dinero, y asociación ilegal para cometer un delito. Las imputaciones fueron anunciadas por el Fiscal General de los Estados Unidos William P. Barr, el Fiscal General Raúl Melara de El Salvador, la Fiscal General María Consuelo Porras Argueta de Guatemala, y el Fiscal General de Honduras Oscar Fernando Chinchilla, a través de la Oficina de Prensa del Ministerio Público.
“El Departamento de Justicia de los Estados Unidos y nuestros aliados del orden público en Centroamérica están comprometidos con la colaboración continua para localizar y arrestar a los miembros y asociados de las pandillas involucrados en crímenes transnacionales,” dijo el Fiscal General Barr. “Nuestros países están más seguros cuando se trabaja conjuntamente en aras de proteger la seguridad nacional y asegurar la seguridad pública en nuestros vecindarios.”
En el 2017, el Fiscal General de los Estados Unidos en conjunto con sus homólogos de la región se comprometieron en combatir el crimen organizado transnacional y reducir la migración ilegal a los Estados Unidos a través de mayor cooperación y asistencia técnica con los aliados del orden público. Estos esfuerzos han causado los siguientes resultados esta semana:
Fiscales en El Salvador radicaron acusaciones en contra de más de 1,152 miembros de grupos criminales organizados en el país, primordialmente contra las pandillas MS-13 y Calle 18. En cuestión de horas, la Policía Civil Nacional había capturado a 572 individuos imputados por los delitos de terrorismo, asesinato, extorsión, secuestro, robo de vehículos, hurto, conspiración, narcotráfico, el lavado de dinero, violaciones a la ley de armas de fuego, tráfico de personas y trata de personas. Los fiscales y la Policía Nacional incautaron bienes de estos grupos del crimen organizado con el propósito de decomisarlos.
En Guatemala, la Fiscalía Contra el Delito de Anti-Extorsión, la Unidad Contra Delitos Transnacionales de la Fiscalía y la Unidad Especial Anti-Pandillas Transnacionales y la policía ejecutaron 80 órdenes de allanamiento, arrestaron 40 personas, y notificaron 29 órdenes de arresto a personas en custodia, todos ellos miembros de las pandillas Calle 18 y MS-13. Se incautó drogas y un arma de fuego, y se radicaron por cargos de extorsión, asociación ilícita, conspiración para cometer asesinato y obstrucción a la justicia. En este caso hay cuatro compañías de transportistas víctimas de extorsión por un monto que asciende a $54,523
En Honduras, la operación conjunta OER se llevó a cabo en diferentes fases durante el periodo de una semana y resultó en el arresto de aproximadamente 75 miembros de las pandillas MS-13 y Calle 18, y la ejecución de más de 10 órdenes de allanamiento. Armas de fuego ilegales, teléfonos celulares, drogas y dinero fueron incautados. Los individuos arrestados fueron imputados con asociación ilícita, asesinato y conspiración para cometer asesinato, extorsión y narcotráfico.
El 9 de febrero de 2017, el Presidente Donald J. Trump emitió la Orden Ejecutiva Para Hacer Cumplir la Ley Federal Sobre las Organizaciones de Crímenes Transnacionales y Prevenir el Tráfico Internacional para desmantelar y erradicar las pandillas transnacionales que amenazan la seguridad de nuestras comunidades. Conforme a esa orden, el Departamento de Justicia ha hecho su prioridad el desmantelar las redes criminales transnacionales de tráfico de personas y pandillas incluyendo la MS-13.
Los esfuerzos anti-pandilla de Escudo Regional han conducido a la radicación de cargos criminales en contra de más de 11,000 miembros de pandillas desde el 2017, incluyendo líderes de pandillas a nivel nacional. Muchas de estas imputaciones incluyen la incautación de bienes pertenecientes a las pandillas incluyendo armas de fuego y dinero. También durante este tiempo más de una docena de redes involucradas en el tráfico y/o trata de personas fueron desmanteladas. La asistencia técnica provista por la Oficina Internacional para el Desarrollo, Asistencia y Capacitación Técnica del Departamento de Justicia (OPDAT) en la región de Centroamérica ha tenido un rol clave para reunir a los Fiscales Generales de El Salvador, Guatemala, y Honduras para desarrollar operaciones regionales enfocadas en combatir pandillas incluyendo la MS-13 y Calle 18, como también organizaciones transnacionales dedicadas al tráfico de personas. Además, como resultado de la asistencia técnica provista por OPDAT, los aliados del Departamento de Justicia en Centro América han fortalecido la cooperación y desarrollado las habilidades, herramientas y técnicas para maximizar resultados contra todo tipo de crimen organizado transnacional impactando la región y los Estados Unidos.
“Desde el 2017, se ha trabajado de manera conjunta y coordinada entre los países que conforman el triángulo norte y nuestro socio estratégico, los Estados Unidos de América,” dijo el Fiscal General de El Salvador Raúl Melara. “Para dar respuesta a la población salvadoreña y procurar que los criminales respondan ante la justicia, hemos reforzado el trabajo que realizan las Unidades Especializadas de la Fiscalía para ser efectivos en lucha contra el crimen organizado y estructuras terroristas. Estoy comprometido como Fiscal General a continuar en este esfuerzo coordinado. Solo lograremos erradicar el crimen transnacional uniendo esfuerzos regionales y continuando el trabajo conjunto.”
“Como Fiscal General de la República y Jefe del Ministerio Público, reafirmo mi compromiso en el combate de la delincuencia organizada transnacional, uno de los ejes primordiales de mi gestión,” dijo la Fiscal General de Guatemala María Consuelo Porras Argueta. “Para el efecto, hemos incrementado los esfuerzos para dar una respuesta efectiva a la población mediante la creación de la Fiscalía contra Delitos Transnacionales, la Unidad Especial Antipandillas Transnacionales, la Unidad Especial contra Delitos en Aeropuertos y Aerodromos, la suscripción de la declaración del Gurpo Asesor de Fiscales Generales del Triángulo Norte, la cual tengo a honra presidir; entre otras acciones estratégicas para combatir la delincuencia organizada transnacional con acciones frontales contra el narcotráfico, pandillas, crimen organizado y tráfico ilícito de migrantes.”
“Considero ante la amenaza regional que presentan estos delitos transnacionales, la respuesta debe ser de igual forma interagencial y regional,” dijo el Fiscal General de Honduras Oscar Fernando Chinchilla. “Solo de esta forma se puede neutralizar los efectos dañinos de estas organizaciones criminales.”
En El Salvador, Guatemala, y Honduras, las investigaciones de organizaciones criminales transnacionales se manejan por fiscales regionales anti-pandillas que reciben capacitaciones financiadas por el Departamento de Estado y asesoría por el Negociado Investigaciones Federales (FBI), la Oficina de Investigaciones de Seguridad Nacional del Servicio de Inmigración y Control de Aduanas (HSI), y la Oficina Internacional para el Desarrollo, Asistencia y Capacitación Técnica del Departamento de Justicia (OPDAT). Con el apoyo de la Oficina de Narcóticos Internacionales y Asuntos de Aplicación de la Ley del Departamento de Estado (INL), los fiscales de OPDAT han ayudado a establecer fuerzas de tarea en la región y trabajan con las Unidades Transnacionales Anti-Pandillas (TAG) del FBI y también las Unidades de Investigaciones Criminales Transnacionales de HSI (TCIU). Estos esfuerzos han ayudado a nuestros aliados en Centroamérica a condenar a miles de criminales, confiscar más de USD$ 1 billón de activos ilícitos, y coordinar docenas de investigaciones transnacionales con sus homólogos de Estados Unidos.
Las agencias del orden público involucrados en esta última sexta operación OER incluyeron El Salvador’s Fiscalia General de la Republica (FGR) y la Policía Nacional Civil (PNC); Honduras Policía Nacional, la Dirección Nacional de Servicios Especiales de Investigación (DNSEI), Agencia Técnica de Investigaciones Criminales (ATIC), y Fuerza Nacional Anti Maras y Pandillas (FNAMP) y Guatemala’s Fiscalía Contra Delitos Transnacionales, Fiscalía Contra el Delito de Extorsión, y la Unidad Especial Anti-Pandillas Transnacionales, Policía Nacional Civil, División Especializada en Investigación Criminal y División Nacional Contra las Pandillas de la Policía Nacional Civil.
En Inglés
Mas De 700 Miembros De Grupos Criminales Transnacionalales Son Arrestados En Centro America En Operativo Con Asistencia De Los Estados UnidosRead the Press Release
WASHINGTON – Oficiales principales de las agencias del orden público de los Estados Unidos, El Salvador, Guatemala y Honduras anunciaron hoy la radicación de imputaciones de más de 700 miembros de organizaciones criminales transnacionales, principalmente miembros de las pandillas de la MS-13 y Calle 18 en Centroamérica, en una operativo judicial coordinado que duró por una semana conocido como Operación Escudo Regional (OER). OER comenzó en el 2017 y es una iniciativa liderada por el Departamento de Justicia para combatir el crimen organizado transnacional que une a fiscales anti-pandillas e investigadores de El Salvador, Guatemala, Honduras, Mexico y los Estados Unidos. A través de reuniones de coordinación celebradas trimestralmente, este grupo ha coordinado investigaciones que abarcan varios países y arrestos a través de la región.
Las autoridades también anunciaron los arrestos de 36 individuos en El Salvador y Honduras involucrados con redes de tráfico de personas que abarcan Centroamérica y los Estados Unidos. Entre los imputados en Honduras se encuentra un comisionado de la policía, un sub-inspector de la policía y tres agentes del orden público. Los arrestados están imputados con violaciones de tráfico de personas, el lavado de dinero, y asociación ilegal para cometer un delito. Las imputaciones fueron anunciadas por el Fiscal General de los Estados Unidos William P. Barr, el Fiscal General Raúl Melara de El Salvador, la Fiscal General María Consuelo Porras Argueta de Guatemala, y el Fiscal General de Honduras Oscar Fernando Chinchilla, a través de la Oficina de Prensa del Ministerio Público.
“El Departamento de Justicia de los Estados Unidos y nuestros aliados del orden público en Centroamérica están comprometidos con la colaboración continua para localizar y arrestar a los miembros y asociados de las pandillas involucrados en crímenes transnacionales,” dijo el Fiscal General Barr. “Nuestros países están más seguros cuando se trabaja conjuntamente en aras de proteger la seguridad nacional y asegurar la seguridad pública en nuestros vecindarios.”
En el 2017, el Fiscal General de los Estados Unidos en conjunto con sus homólogos de la región se comprometieron en combatir el crimen organizado transnacional y reducir la migración ilegal a los Estados Unidos a través de mayor cooperación y asistencia técnica con los aliados del orden público. Estos esfuerzos han causado los siguientes resultados esta semana:
Fiscales en El Salvador radicaron acusaciones en contra de más de 1,152 miembros de grupos criminales organizados en el país, primordialmente contra las pandillas MS-13 y Calle 18. En cuestión de horas, la Policía Civil Nacional había capturado a 572 individuos imputados por los delitos de terrorismo, asesinato, extorsión, secuestro, robo de vehículos, hurto, conspiración, narcotráfico, el lavado de dinero, violaciones a la ley de armas de fuego, tráfico de personas y trata de personas. Los fiscales y la Policía Nacional incautaron bienes de estos grupos del crimen organizado con el propósito de decomisarlos.
En Guatemala, la Fiscalía Contra el Delito de Anti-Extorsión, la Unidad Contra Delitos Transnacionales de la Fiscalía y la Unidad Especial Anti-Pandillas Transnacionales y la policía ejecutaron 80 órdenes de allanamiento, arrestaron 40 personas, y notificaron 29 órdenes de arresto a personas en custodia, todos ellos miembros de las pandillas Calle 18 y MS-13. Se incautó drogas y un arma de fuego, y se radicaron por cargos de extorsión, asociación ilícita, conspiración para cometer asesinato y obstrucción a la justicia. En este caso hay cuatro compañías de transportistas víctimas de extorsión por un monto que asciende a $54,523
En Honduras, la operación conjunta OER se llevó a cabo en diferentes fases durante el periodo de una semana y resultó en el arresto de aproximadamente 75 miembros de las pandillas MS-13 y Calle 18, y la ejecución de más de 10 órdenes de allanamiento. Armas de fuego ilegales, teléfonos celulares, drogas y dinero fueron incautados. Los individuos arrestados fueron imputados con asociación ilícita, asesinato y conspiración para cometer asesinato, extorsión y narcotráfico.
El 9 de febrero de 2017, el Presidente Donald J. Trump emitió la Orden Ejecutiva Para Hacer Cumplir la Ley Federal Sobre las Organizaciones de Crímenes Transnacionales y Prevenir el Tráfico Internacional para desmantelar y erradicar las pandillas transnacionales que amenazan la seguridad de nuestras comunidades. Conforme a esa orden, el Departamento de Justicia ha hecho su prioridad el desmantelar las redes criminales transnacionales de tráfico de personas y pandillas incluyendo la MS-13.
Los esfuerzos anti-pandilla de Escudo Regional han conducido a la radicación de cargos criminales en contra de más de 11,000 miembros de pandillas desde el 2017, incluyendo líderes de pandillas a nivel nacional. Muchas de estas imputaciones incluyen la incautación de bienes pertenecientes a las pandillas incluyendo armas de fuego y dinero. También durante este tiempo más de una docena de redes involucradas en el tráfico y/o trata de personas fueron desmanteladas. La asistencia técnica provista por la Oficina Internacional para el Desarrollo, Asistencia y Capacitación Técnica del Departamento de Justicia (OPDAT) en la región de Centroamérica ha tenido un rol clave para reunir a los Fiscales Generales de El Salvador, Guatemala, y Honduras para desarrollar operaciones regionales enfocadas en combatir pandillas incluyendo la MS-13 y Calle 18, como también organizaciones transnacionales dedicadas al tráfico de personas. Además, como resultado de la asistencia técnica provista por OPDAT, los aliados del Departamento de Justicia en Centro América han fortalecido la cooperación y desarrollado las habilidades, herramientas y técnicas para maximizar resultados contra todo tipo de crimen organizado transnacional impactando la región y los Estados Unidos.
“Desde el 2017, se ha trabajado de manera conjunta y coordinada entre los países que conforman el triángulo norte y nuestro socio estratégico, los Estados Unidos de América,” dijo el Fiscal General de El Salvador Raúl Melara. “Para dar respuesta a la población salvadoreña y procurar que los criminales respondan ante la justicia, hemos reforzado el trabajo que realizan las Unidades Especializadas de la Fiscalía para ser efectivos en lucha contra el crimen organizado y estructuras terroristas. Estoy comprometido como Fiscal General a continuar en este esfuerzo coordinado. Solo lograremos erradicar el crimen transnacional uniendo esfuerzos regionales y continuando el trabajo conjunto.”
“Como Fiscal General de la República y Jefe del Ministerio Público, reafirmo mi compromiso en el combate de la delincuencia organizada transnacional, uno de los ejes primordiales de mi gestión,” dijo la Fiscal General de Guatemala María Consuelo Porras Argueta. “Para el efecto, hemos incrementado los esfuerzos para dar una respuesta efectiva a la población mediante la creación de la Fiscalía contra Delitos Transnacionales, la Unidad Especial Antipandillas Transnacionales, la Unidad Especial contra Delitos en Aeropuertos y Aerodromos, la suscripción de la declaración del Gurpo Asesor de Fiscales Generales del Triángulo Norte, la cual tengo a honra presidir; entre otras acciones estratégicas para combatir la delincuencia organizada transnacional con acciones frontales contra el narcotráfico, pandillas, crimen organizado y tráfico ilícito de migrantes.”
“Considero ante la amenaza regional que presentan estos delitos transnacionales, la respuesta debe ser de igual forma interagencial y regional,” dijo el Fiscal General de Honduras Oscar Fernando Chinchilla. “Solo de esta forma se puede neutralizar los efectos dañinos de estas organizaciones criminales.”
En El Salvador, Guatemala, y Honduras, las investigaciones de organizaciones criminales transnacionales se manejan por fiscales regionales anti-pandillas que reciben capacitaciones financiadas por el Departamento de Estado y asesoría por el Negociado Investigaciones Federales (FBI), la Oficina de Investigaciones de Seguridad Nacional del Servicio de Inmigración y Control de Aduanas (HSI), y la Oficina Internacional para el Desarrollo, Asistencia y Capacitación Técnica del Departamento de Justicia (OPDAT). Con el apoyo de la Oficina de Narcóticos Internacionales y Asuntos de Aplicación de la Ley del Departamento de Estado (INL), los fiscales de OPDAT han ayudado a establecer fuerzas de tarea en la región y trabajan con las Unidades Transnacionales Anti-Pandillas (TAG) del FBI y también las Unidades de Investigaciones Criminales Transnacionales de HSI (TCIU). Estos esfuerzos han ayudado a nuestros aliados en Centroamérica a condenar a miles de criminales, confiscar más de USD$ 1 billón de activos ilícitos, y coordinar docenas de investigaciones transnacionales con sus homólogos de Estados Unidos.
Las agencias del orden público involucrados en esta última sexta operación OER incluyeron El Salvador’s Fiscalia General de la Republica (FGR) y la Policía Nacional Civil (PNC); Honduras Policía Nacional, la Dirección Nacional de Servicios Especiales de Investigación (DNSEI), Agencia Técnica de Investigaciones Criminales (ATIC), y Fuerza Nacional Anti Maras y Pandillas (FNAMP) y Guatemala’s Fiscalía Contra Delitos Transnacionales, Fiscalía Contra el Delito de Extorsión, y la Unidad Especial Anti-Pandillas Transnacionales, Policía Nacional Civil, División Especializada en Investigación Criminal y División Nacional Contra las Pandillas de la Policía Nacional Civil.
En el 2020 el Departamento de Justica cumple sus 150 años de aniversario. Use el enlace para conocer más sobre la historia de nuestra institución, www.Justice.gov/Celebrating150Years.
North Carolina Sport Supplement Company and Its Owner Plead Guilty to Unlawful Distribution of Steroid-like DrugsRead the Press Release
A North Carolina resident and his sport supplement company pleaded guilty today to a felony charge relating to the introduction of unapproved new drugs into interstate commerce, the Department of Justice announced.
Brian Michael Parks, 47, of Apex, North Carolina, and MedFitRX, Inc, now known as MedFit Sarmacuticals Inc., a sport supplement company based in Cary, North Carolina, pleaded guilty in U.S. District Court for the Western District of Virginia to one count of distributing unapproved new drugs with the intent to mislead and defraud the Food and Drug Administration (FDA) and consumers. Parks admitted that, from approximately June 2017 to September 2019, he and his company unlawfully distributed Selective Androgen Receptor Modulators (SARMs) and other substances that the FDA has not approved, including Ostarine (MK-2866), Ligandrol (LGD-4033), and Testolone (RAD-140). SARMs are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids. The FDA has long warned against the use of SARMs like those found in MedFit products, including stating in a 2017 warning letter to another firm that SARMs have been linked to life-threatening reactions including liver toxicity, and have the potential to increase the risk of heart attack and stroke.
“Drugs must undergo FDA approval to ensure they are safe and effective for the public, and this defendant put consumers at risk by deliberately ignoring that process,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The Department of Justice will continue to work hand-in-hand with FDA to investigate and prosecute anyone who puts personal profit before public health.”
“FDA enforces laws that are designed to protect the public health by ensuring, among other things, that drugs are safe and effective for their intended uses. Drugs disguised as supplements, of unknown origin and possibly toxic ingredients, that are manufactured and distributed outside the FDA’s oversight, endanger consumers,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “We remain committed to pursuing and bringing to justice those who mislead the public and attempt to subvert the regulatory functions of the FDA by distributing unapproved and potentially dangerous products.”
“Parks and his company put his customers’ health at risk when he unlawfully distributed drugs without their being FDA approved,” said Acting U.S. Attorney Bubar. “FDA regulations are integral to safeguarding consumers, and I am proud of our federal team that took on this investigation to ensure the process and the public are protected.”
In connection with his plea, Parks agreed to forfeit $1.2 million, reflecting the amount of MedFitRX products he sold across the United States through retail outlets and over the internet.
In pleading guilty, Parks also admitted that he intended to mislead and defraud the FDA and consumers by omitting ingredients on MedFitRX product labels, falsely claiming MedFitRX was licensed and registered to sell these new drugs, importing raw drug ingredients with the intent to avoid regulatory scrutiny, and misrepresenting MedFitRX products as “dietary supplements” or “sports supplements” to create the impression that they were safe and legal to use.
U.S. District Judge James P. Jones heard the defendants’ guilty pleas in federal court in Abingdon, Virginia, and set sentencing for Feb. 16, 2021.
Assistant U.S. Attorney Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia and Trial Attorney Speare Hodges of the Department of Justice Civil Division’s Consumer Protection Branch are prosecuting the case. This matter was investigated by the FDAs Office of Criminal Investigations.
Linda Jean Pangelinan Palacios Sentenced for Unauthorized Access of a Protected Computer in Furtherance of FraudRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Linda Jean Pangelinan Palacios, age 48, from Dededo, Guam, was sentenced in the United States District Court of Guam to five months imprisonment for Unauthorized Access of a Protected Computer in Furtherance of Fraud, in violation of 18 U.S.C. §§ 1030(a)(4) and 1030(c)(3)(A). The Court also ordered three years of supervised release following imprisonment and restitution of $5,625 to the Department of Revenue and Taxation, Government of Guam. In addition, the defendant was ordered to perform 50 hours of community service and a mandatory $100 special assessment fee.
Palacios was previously employed as a Driver’s License Examiner I with the Guam Department of Revenue and Taxation (DRT), Motor Vehicle Division. Between April 2015 and November 2015, Palacios used her access to the DRT’s computer system to create, process and issue fraudulent Guam driver’s licenses. Palacios processed at least 75 fraudulent Guam driver’s licenses for her own financial benefit. Palacios advised law enforcement that she entered information into the system when nobody was around, and she did not think she would ever get caught.
This case was a result of a joint investigation by the Federal Bureau of Investigation with assistance from the Guam Police Department, and the Guam Department of Revenue and Taxation. The case was prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney in the District of Guam.
Justice Department Requires Divestiture of Credit Karma Tax for Intuit to Proceed with Acquisition of Credit KarmaRead the Press Release
The Department of Justice announced today that it is requiring Intuit Inc. and Credit Karma Inc. (Credit Karma) to divest Credit Karma’s tax business, Credit Karma Tax, to Square Inc. in order for Intuit, the creator of TurboTax, to proceed with its $7.1 billion acquisition of Credit Karma. The department said that without this divestiture, the proposed transaction would substantially lessen competition for digital do-it-yourself (DDIY) tax preparation products, which are software programs used by American taxpayers to prepare and file their federal and state returns.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block Intuit’s acquisition of Credit Karma. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the department’s complaint.
“Intuit’s TurboTax has long led the market for digital do-it-yourself tax filing services, but disruptive competition from Credit Karma Tax has brought substantial benefits to American taxpayers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s divestiture to Square, another highly successful and disruptive fintech company, ensures that taxpayers will continue to both benefit from this competition and benefit from new innovative financial service offerings from both Intuit and Square.”
According to the complaint, Intuit’s TurboTax has enjoyed a dominant position in the market for DDIY tax preparation products for more than a decade. Since entering four years ago, Credit Karma Tax has become a disruptive competitor with a significant competitive impact. Unlike other providers, including Intuit, Credit Karma Tax never charges for its products, regardless of the complexity of an individual’s tax preparation needs. This always-free business model has enabled Credit Karma Tax to compete aggressively for filers who pay for TurboTax, which helps constrain TurboTax prices and push Intuit to improve TurboTax offerings. The combination of Intuit and Credit Karma would eliminate this competition, likely resulting in higher prices, lower quality, and less choice for consumers of DDIY tax preparation products.
Under the terms of the proposed settlement, Intuit and Credit Karma must divest the assets that comprise Credit Karma Tax to Square, Inc., including relevant software and intellectual property. Square is also expected to hire certain key Credit Karma employees that today support Credit Karma Tax. Intuit and Credit Karma have agreed to provide certain transition support services to Square while Square integrates Credit Karma Tax into its Cash App platform.
Intuit is a Delaware corporation based in Mountain View, California, that offers tax preparation, accounting, payroll, and personal finance solutions to individuals and small businesses. Intuit offers DDIY tax preparation products under the TurboTax brand. Approximately 41 million individuals filed individual federal tax returns in 2020 using TurboTax. Intuit, through its TurboTax business, is the largest provider of DDIY tax preparation products for U.S. federal and state tax returns. In 2019, Intuit earned over $6.5 billion in revenue, including over $2.5 billion from sales of TurboTax products.
Credit Karma is a privately-held Delaware corporation based in San Francisco, California, that offers an online and mobile personal finance platform. Credit Karma’s platform provides individuals with access to free credit scores, credit monitoring, and DDIY tax preparation, among other products and services. Credit Karma is home to more than 100 million customers and in any given month, over 35 million customers are actively engaged on the Credit Karma platform. Credit Karma Tax is Credit Karma’s DDIY tax preparation business. It is the fifth-largest provider of DDIY tax preparation products for U.S. federal and state tax returns. Approximately two million individuals filed U.S. federal tax returns with Credit Karma Tax in 2020.
Square is a Delaware corporation based in San Francisco, California, that offers business and consumer financial services and tools. Square’s consumer finance service platform, Cash App, provides its more than 30 million users peer-to-peer money transfer services, a debit card product, and equity and cryptocurrency investment services. Square earned over $4.71 billion in revenue in 2019.
As required by the Tunney Act, the proposed consent decree, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Robert Lepore, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon a finding that it serves the public interest.
Dexter W. Long Sentenced to Prison for Drug Trafficking CrimeRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Dexter Wilton Long, age 59, from Barrigada, Guam, was sentenced in the United States District Court of Guam to 87 months imprisonment for Possession of Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A)(viii). The Court also ordered five years of supervised release following imprisonment, and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On May 9, 2019, Long was apprehended at the airport after arriving on Guam via United Airlines Flight 201. A secondary inspection of his luggage resulted in the recovery of 430 net grams of 99% pure methamphetamine hydrochloride (“ice”). The subsequent investigation revealed that Long had also mailed a package to himself from Honolulu that contained two separate bags containing 2.05 net grams of 98% pure methamphetamine and 182 net grams of 99% pure methamphetamine.
This case was a result of a joint investigation by the Drug Enforcement Administration with assistance from the Guam Customs and Quarantine Agency, and the United States Postal Inspection Service. The case was prosecuted by Laura C. Sambataro, Assistant United States Attorney in the District of Guam.
Brian Sanchez Chan Sentenced to Prison for Drug Trafficking CrimeRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Brian Sanchez Chan, age 40, from Dededo, Guam, was sentenced in the United States District Court of Guam to 71 months imprisonment for Possession of Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(A)(viii). The Court also ordered five years of supervised release following imprisonment, and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On September 16, 2019, Chan was arrested after agreeing to sell five ounces of methamphetamine to an undercover officer from the Drug Enforcement Administration in exchange for $27,000. The parties agreed to meet in the parking lot of the Guam Hilton Hotel in Tumon to complete the sale. Chan stated that he was uncomfortable selling that high of a quantity, and would bring two ounces first, and then when he had the money in hand, would leave and return with the rest. Once the transaction was made, Chan was arrested and 55.6 net grams of 97% pure methamphetamine hydrochloride was recovered.
This case was the result of an investigation by the Drug Enforcement Administration. The case was prosecuted by Laura C. Sambataro, Assistant United States Attorney in the District of Guam.
Opioid Manufacturer Purdue Pharma Pleads Guilty to Fraud and Kickback ConspiraciesRead the Press Release
Opioid manufacturer Purdue Pharma LP (Purdue) pleaded guilty today in federal court in Newark, New Jersey, to conspiracies to defraud the United States and violate the anti-kickback statute.
Purdue pleaded guilty to an information charging it with three felony offenses: one count of dual-object conspiracy to defraud the United States and to violate the Food, Drug, and Cosmetic Act, and two counts of conspiracy to violate the Federal Anti-Kickback Statute.
“The abuse and diversion of prescription opioids has contributed to a national tragedy of addiction and deaths, in addition to those caused by illicit street opioids,” said Deputy Attorney General Jeffrey A. Rosen. “Today’s guilty pleas to three felony charges send a strong message to the pharmaceutical industry that illegal behavior will have serious consequences. Further, today’s convictions underscore the department’s commitment to its multi-pronged strategy for defeating the opioid crisis.”
“Purdue admitted that it marketed and sold its dangerous opioid products to healthcare providers, even though it had reason to believe those providers were diverting them to abusers,” said Rachael A. Honig, First Assistant U.S. Attorney for the District of New Jersey. “The company lied to the Drug Enforcement Administration about steps it had taken to prevent such diversion, fraudulently increasing the amount of its products it was permitted to sell. Purdue also paid kickbacks to providers to encourage them to prescribe even more of its products.”
“As today's plea to felony charges shows, Purdue put opioid profits ahead of people and corrupted the sacred doctor-patient relationship,” said Christina Nolan, U.S Attorney for the District of Vermont. “We hope the company's guilty plea sends a message that the Justice Department will not allow big pharma and big tech to engage in illegal profit-generating schemes that interfere with sound medicine. We hope, also, that this guilty plea will bring some sense of justice to those who have suffered from opioid addictions involving oxycodone and some vindication for families and loved ones of those who did not survive such addiction."
"This case makes clear that no company, including Purdue Pharma, whose actions harm the health and safety of the American public, is beyond the reach of law enforcement,” said Assistant Director Calvin Shivers of the FBI's Criminal Investigative Division. “The opioid epidemic continues to spread across the United States impacting countless Americans and harming communities. Together with our law enforcement partners, the FBI is committed to investigating and holding criminals accountable for the roles they play in fueling this crisis.”
As part of today’s guilty plea, Purdue admitted that from May 2007 through at least March 2017, it conspired to defraud the United States by impeding the lawful function of the Drug Enforcement Administration (DEA). Purdue represented to the DEA that it maintained an effective anti-diversion program when, in fact, Purdue continued to market its opioid products to more than 100 health care providers whom the company had good reason to believe were diverting opioids. Purdue also reported misleading information to the DEA to boost Purdue’s manufacturing quotas. The misleading information comprised prescription data that included prescriptions written by doctors that Purdue had good reason to believe were engaged in diversion. The conspiracy also involved aiding and abetting violations of the Food, Drug, and Cosmetic Act by facilitating the dispensing of its opioid products, including OxyContin, without a legitimate medical purpose, and thus without lawful prescriptions.
Purdue also admitted it conspired to violate the federal Anti-Kickback Statute. Between June 2009 and March 2017, Purdue made payments to two doctors through Purdue’s doctor speaker program to induce those doctors to write more prescriptions of Purdue’s opioid products. Also, from April 2016 through December 2016, Purdue made payments to Practice Fusion Inc., an electronic health records company, in exchange for referring, recommending, and arranging for the ordering of Purdue’s extended release opioid products – OxyContin, Butrans, and Hysingla.
Under the terms of the plea agreement, Purdue agreed to the imposition of the largest penalties ever levied against a pharmaceutical manufacturer, including a criminal fine of $3.544 billion and an additional $2 billion in criminal forfeiture. For the $2 billion forfeiture, the company will pay $225 million within three business days following the entry of a judgment of conviction in accordance with the Plea Agreement. The department is willing to credit the value conferred by the company to state and local governments under the department’s anti-piling on and coordination policy if certain conditions are met.
Purdue has also agreed to a civil settlement that provides the United States with an allowed, unsubordinated, general unsecured bankruptcy claim for recovery of $2.8 billion to resolve its civil liability under the False Claims Act. Separately, the Sackler family has agreed to pay $225 million in damages to resolve its civil False Claims Act liability.
The criminal and civil resolutions, which were announced on Oct. 21, 2020, do not include the criminal release of any individuals, including members of the Sackler family, nor are any of the company’s executives or employees receiving civil releases.
On Nov. 17, 2020, the bankruptcy court in the Southern District of New York approved the financial terms of the global resolution with the company. The resolution includes the condition that the company cease to operate in its current form and instead emerge from bankruptcy as a public benefit company (PBC) or entity with a similar mission designed for the benefit of the American public. The proceeds of the PBC will be directed toward state and local opioid abatement programs. Based on the value that would be conferred to state and local governments through the PBC, the department is willing to credit up to $1.775 billion against the agreed $2 billion forfeiture amount. The department looks forward to working with the creditor groups in the bankruptcy in charting the path forward for this PBC to best accomplish public health goals.
The global resolution does not resolve claims that states may have against Purdue or members of the Sackler family, nor does it impede the debtors’ or other third parties’ ability to recover any fraudulent transfers.
Except to the extent of Purdue’s admissions as part of its criminal resolution, the claims resolved by the civil settlements are allegations only. There has been no determination of liability in the civil matters.
Federal Grand Jury Indicts Man for Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced on Friday, November 20, 2020 that KESHAWN PATTON, age 25, a resident of New Orleans, Louisiana, was charged in a three-count indictment by a Federal Grand Jury for violations of the Federal Gun Control Act and the Federal Controlled Substances Act.
PATTON is charged in Count 1 with possession with intent to distribute a quantity of a substance containing a detectable amount of amphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(E)(i). In Count 2, PATTON is charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). In Count 3, PATTON is charged with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
If convicted of Count 1, PATTON faces a maximum sentence of 10 years imprisonment, a $500,000 fine, up to 3 years of supervised release, and a special assessment fee of $100. If convicted of Count 2, PATTON faces a mandatory minimum sentence of 5 years up to life imprisonment, which is to run consecutively to all other sentences, a $250,000 fine, up to 5 years of supervised release and a special assessment fee of $100. If convicted of Count 3, PATTON faces a maximum term of imprisonment of 10 years, a $250,000 fine, up to 3 years of supervised release, and a special assessment fee of $100.
U. S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partner, The U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives. For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.
The case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney David Haller of the Violent Crime Unit of the U.S. Attorney’s Office.
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Assistant Attorney General Makan Delrahim Issues Statement Commemorating the 75th Anniversary of the International Military Tribunal at NurembergRead the Press Release
Assistant Attorney General Makan Delrahim of the Department of Justice Antitrust Division issued the following statement on his participation in the Robert H. Jackson Center’s virtual reading of Justice Jackson’s opening statement at Nuremberg for the 75th anniversary of the International Military Tribunal at Nuremberg:
“I was honored and humbled to be a part of this project marking 75 years since the International Military Tribunal at Nuremberg. Justice Robert Jackson, who was the Chief U.S. Prosecutor at Nuremberg and once held the position of Assistant Attorney General of the Antitrust Division, has long been a hero of mine for his boundless faith in justice and fairness. His work at Nuremberg showed the world that unspeakable acts of hatred will not go unpunished so long as there are good people willing to stand up for the powerless. In my role overseeing the Antitrust Division, I draw on this faith and commitment to justice to guide our work defending American consumers.”
The virtual reading of Justice Jackson’s opening statement will be available at https://www.youtube.com/RobertHJacksonCenter on Saturday, November 21, 2020.
Montana Chiropractor and His Wife Plead Guilty to Tax EvasionRead the Press Release
WASHINGTON – A Montana chiropractor and his wife pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Kurt G. Alme for the District of Montana.
According to court documents and statements made in court, Jonathan Wilhelm, owned and operated Pro Chiropractic PC (Pro Chiro) and Big Sky Spinal Care Center Inc. (Big Sky). From 2013 through 2018, the Wilhelms directed payments to cash and then did not report the cash transactions on Pro Chiro’s and Big Sky’s books and records, which they provided to a return preparer to prepare the businesses’ tax returns. The Wilhelms knew that omitting the cashed checks and cash payments resulted in an understatement of taxable income totaling $284,691 for tax years 2013, 2014, 2015, 2017, and 2018. In total, the defendants caused a tax loss to the IRS of $74,486.
U.S. Magistrate Judge Kathleen L. DeSoto has scheduled a sentencing for March 12, 2021. At sentencing the defendants each face a maximum sentence of five years. The defendants also each face a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Alme commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Andrew Kameros and Trial Attorney Sarah Kiewlicz of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Home Health Agency and Former Owner to Pay $5.8 Million to Settle False Claims Act AllegationsRead the Press Release
Doctor’s Choice Home Care, Inc. and its former executives, Timothy Beach and Stuart Christensen, have agreed to pay $5.15 million to resolve allegations that the home health agency provided improper financial inducements to referring physicians through sham medical director agreements and bonuses to physicians’ spouses who were Doctor’s Choice employees, the Department of Justice announced today.
Timothy Beach and Stuart Christensen founded Doctor’s Choice and formerly served as its top executives. Doctor’s Choice is a home health agency based in Sarasota, Florida, with branches throughout the state.
Doctor’s Choice will pay $3,856,000 to settle these allegations and Beach and Christensen will each pay $647,000. Doctor’s Choice will pay an additional $675,000 to resolve separate allegations that employees pressured clinical personnel to increase the number of home visits for Medicare patients to avoid the Medicare Low Utilization Payment Adjustment that would have decreased the reimbursement Doctor’s Choice received from Medicare in the absence of these unnecessary services.
“The Department of Justice will continue to hold companies and individuals accountable for the payment of illegal remuneration in any form,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “Improper inducements have no place in our federal healthcare system, which relies on healthcare providers making decisions based on the healthcare needs of their patients and rather than their personal financial interests.”
“Operating an illegal referral scheme and providing medically unnecessary services places patients at risk and jeopardizes millions of taxpayer dollars,” said Special Agent in Charge of the FBI Tampa Division Michael McPherson. “This settlement highlights the FBI’s commitment to protect the integrity of the federally funded healthcare system.”
The Anti-Kickback Statute prohibits the offering or payment of remuneration to induce or reward referrals for services paid for by federal healthcare programs. The Stark Law forbids certain medical providers, including home health agencies, from submitting claims to Medicare for services provided to patients who were referred by a physician with whom the provider has a prohibited financial relationship, unless that relationship falls within an applicable exception.
This settlement resolves allegations that Doctor’s Choice, Beach, and Christensen violated the Anti-Kickback Statute and the Stark Law by entering into sham medical director agreements with physicians as a means of providing remuneration for referrals, and also violated the Stark Law by providing bonuses to employees based on referrals to Doctor’s Choice by the employees’ physician spouses. In addition, the agreement resolves allegations that Doctor’s Choice provided unnecessary services to Medicare patients in order to increase the number of skilled service visits provided during a home health episode to avoid the Low Utilization Payment Adjustment which otherwise would have decreased Doctor’s Choice Medicare reimbursement. This adjustment is triggered when a home health patient has a treatment episode consisting of less than five skilled service visits and results in the provider receiving a standardized per visit payment rather than the higher payment for a full home health episode.
The allegations resolved in this settlement were originally brought in two lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act; one case was filed by Corina Herbold and the second case was filed by Sara Billings, Misty Sykes, and Marina Eschoyez-Quiroga, all of whom are former employees of Doctor’s Choice. The Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Billings, Sykes, and Eschoyez-Quiroga will jointly receive a share of approximately $145,000 arising from the government’s recovery for the Low Utilization Payment Adjustment allegations. Herbold’s share has not yet been determined.
The government’s intervention in these matters illustrates its 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).
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Middle District of Florida, the Office of Inspector General of the Department of Health and Human Services, and the FBI.
The cases are captioned United States ex rel. Herbold v. Doctor’s Choice Home Care Inc., et al., No. 8:15- cv-01044 (M.D. Fla.) and United States ex rel. Billings, Sykes, and Eschoyez-Quiroga v. Doctor’s Choice Home Care Inc., No. 8:16-cv-3112 (M.D. Fla.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Federal Court Enjoins Tucson Area Tax Preparer from Preparing Tax ReturnsRead the Press Release
The Justice Department announced today that a federal court in Arizona permanently enjoined a Tucson area tax return preparer from preparing federal income tax returns for others.
The civil complaint filed in the case alleged that Joseph Michael Vosberg included false business losses and charitable deductions on some of his clients’ returns. According to the complaint, Vosberg also allegedly instructed his clients to keep receipts from their day-to-day activities to document their false business expenses and charitable donations in the event of an IRS audit and not to cooperate with the IRS during civil audits. The complaint alleges that Vosberg’s fraudulent tax return preparation activities have caused significant harm to his customers, the United States, and the public at large.
Vosberg consented to the entry of a permanent injunction as part of his 2018 plea agreement with the United States in United States v Vosberg, CR 18-2527-RCC-EJM (D. Ariz.) (Dkt. No. 7). Under the terms of that agreement, Vosberg pleaded guilty to two counts of aiding and assisting in the preparation and presentation of a false federal income tax return.
“Return preparer fraud is a significant drain on the U.S. Treasury, and the Justice Department is committed to working with the IRS to bring enforcement actions against return preparers who prepare fraudulent tax returns,” said Principal Deputy Assistant Attorney General Richard Zuckerman. “The Tax Division will use all available enforcement tools to hold dishonest return preparers accountable and protect the U.S. Treasury from further damage.”
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Contractor Agrees to Pay $18.98 Million for Alleged False Claims Act Caused by Overcharges and Unqualified LaborRead the Press Release
Cognosante LLC has agreed to pay the United States $18,987,789 to resolve allegations that it violated the False Claims Act by using unqualified labor and overcharging the United States for services provided to government agencies under two General Services Administration (GSA) contracts, the Justice Department announced today. Cognosante, which is headquartered in Falls Church, Virginia, provides health care and IT services and solutions to federal agencies.
GSA’s Multiple Award Schedule (MAS) contracts allow the federal government to leverage its buying power to achieve favorable pricing. Under MAS contracts, contractors negotiate with GSA to set maximum prices for goods and services subsequently ordered by agencies across the federal government. These contracts provide streamlined access to the federal marketplace.
The settlement resolves allegations that Cognosante overcharged the United States for services performed under two GSA MAS contracts, including by providing false information concerning Cognosante’s commercial discounting practices during contract negotiations. It also resolves allegations that Cognosante charged the United States for labor that failed to meet the qualifications in one of the contracts.
“MAS contract holders must deal forthrightly with federal agencies during negotiations and throughout the life of their contracts,” said Acting Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “We will hold accountable contractors who cause the government to pay more than it should for goods and services.”
“This settlement exhibits our dedication to recover overcharges paid by the government,” said Acting U.S. Attorney for the District of Columbia Michael R. Sherwin. “We expect our contracting partners to be fully candid with the government, and we will pursue those that fail to fulfill that expectation.”
“Today's settlement is a result of the successful partnership of the Office of Inspector General and the Department of Justice to protect and maintain the integrity of GSA's Multiple Award Schedule program,” said Carol F. Ochoa, Inspector General of GSA.
Cognosante investigated and disclosed to the United States the contractual violations resolved in the settlement. It received credit for its disclosure and cooperation.
The settlement was the result of a joint investigation by the GSA OIG, the U.S. Attorney’s Office for the District of Columbia, and the Civil Division’s Commercial Litigation Branch. The claims resolved by the settlement agreement are allegations only and there has been no determination of liability.
Executions Scheduled for Inmates Convicted of Brutal Murders Many Years AgoRead the Press Release
Attorney General William P. Barr today directed the Federal Bureau of Prisons to schedule the executions of three federal-death row inmates sentenced to death for staggeringly brutal murders, including the murder of a child and, with respect to two inmates, the murder of multiple victims.
- Alfred Bourgeois abused, tortured, and beat to death his young daughter. After a paternity test identified Bourgeois as the father of a two-and-a-half-year-old girl and a court ordered that he pay child support to the mother, Bourgeois took temporary custody of his daughter and brought her with him on a trucking route. While on the trip, Bourgeois systematically abused and tortured her — including by punching her in the face, whipping her with an electrical cord, and burning the bottom of her foot with a cigarette lighter. In July 2002, Bourgeois arrived at the Corpus Christi Naval Air Station for a delivery. While backing his truck up to a loading dock, his daughter tipped over her training potty. Bourgeois became enraged and repeatedly slammed the back of her head into the truck’s window and dashboard, killing her. On March 16, 2004, a jury in the U.S. District Court for the Southern District of Texas found Bourgeois guilty of murder within the special territorial jurisdiction of the United States, and unanimously recommended a death sentence, which the court imposed. His conviction and sentence were affirmed on appeal, and his requests for collateral relief were ultimately rejected by federal courts. In July 2019, his execution was scheduled for Jan. 13, 2020, but legal impediments prevented the government from proceeding at that time. Bourgeois is scheduled to be executed by lethal injection on Dec. 11, 2020, at the Federal Correctional Complex, Terre Haute, Indiana.
- Cory Johnson murdered seven people — Peyton Johnson, Louis Johnson, Bobby Long, Dorothy Armstrong, Anthony Carter, Linwood Chiles, and Curtis Thorne — in furtherance of his drug-trafficking activities. Between 1989 and July 1992, Johnson and several co-conspirators, including federal death-row inmates Richard Tipton and James Roane, were partners in a large drug-trafficking conspiracy based in Richmond, Virginia. In early 1992, Johnson went on a killing spree, shooting and killing each of the seven victims for perceived slights or rivalry in the drug trade. Johnson shot one victim at close range after ordering him to place his head on a car steering wheel. Johnson shot and killed another victim at the victim’s home when he failed to pay for crack cocaine — and Johnson also murdered the victim’s sister and a male acquaintance. In February 1993, a jury in the U.S. District Court for the Eastern District of Virginia found Johnson guilty of numerous federal offenses, including seven counts of capital murder, and unanimously recommended seven death sentences, which the court imposed. Johnson’s convictions and sentences were affirmed on appeal more than 24 years ago, and his initial round of collateral challenges failed 15 years ago. Johnson’s execution initially was scheduled to occur in May 2006, but a preliminary injunction prevented the government from proceeding until it was vacated this September. Johnson is scheduled to be executed by lethal injection on Jan. 14, 2021, at the Federal Correctional Complex, Terre Haute, Indiana.
- Dustin John Higgs kidnapped and murdered three women — Tamika Black, 19; Tanji Jackson, 21; and Mishann Chinn, 23. One evening in January 1996, Higgs and two friends drove to Washington, D.C., to pick up Black, Jackson, and Chinn, whom Higgs had invited to his apartment in Laurel, Maryland. At the apartment, Jackson rebuffed an advance by Higgs and the women left. Higgs offered the women a ride back to Washington, D.C., but instead drove to a secluded area in the Patuxent National Wildlife Refuge, ordered the women out of the vehicle, gave a gun to one of the friends, and said, “better make sure they’re dead.” The other man shot Black and Jackson in the chest and back, and shot Chinn in the back of the head, killing all three women. On Oct.11, 2000, a jury in the U.S. District Court for the District of Maryland found Higgs guilty of numerous federal offenses, including three counts of first-degree premeditated murder, three counts of first-degree felony murder, and three counts of kidnapping resulting in death, and unanimously recommended nine death sentences, which the court imposed. Higgs’ convictions and sentences were affirmed on appeal nearly 17 years ago, and his initial round of collateral challenges failed nearly eight years ago. Higgs is scheduled to be executed on Jan. 15, 2021.
The Department of Justice Files Brief Defending the Constitutionality of Idaho's Fairness in Women's Sports ActRead the Press Release
The Justice Department today filed a friend-of-the-court brief in the Ninth Circuit federal appeals court defending Idaho’s Fairness in Women’s Sports Act against a challenge under the U.S. Constitution’s Equal Protection Clause.
“The Fourteenth Amendment to the U.S. Constitution provides that no State shall ‘deny to any person within its jurisdiction the equal protection of the laws.’ Idaho’s Fairness in Women’s Sports Act complies fully with the U.S. Constitution because it protects all persons equally,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Constitution does not require States to abandon their efforts to provide biological girls and women with equal opportunity to participate in and enjoy the life-long benefits that flow from interscholastic athletics. The Fairness in Women’s Sports Act protects equal athletic opportunities for girls and women and permits all persons fairly to participate in sports.”
On Aug. 17, 2020, an Idaho federal district court preliminarily enjoined the Fairness Act, finding that Act discriminated against some transgender athletes. The injunction requires Idaho to allow biological males, who gender identify as female, to play in sports designated only for biological females.
On appeal, the United States’ friend-of-the-court brief explains that the Fairness Act serves the important purpose of preserving equal athletic opportunities for women. The Constitution allows states like Idaho to separate sports by biological sex because females and males have innate physiological differences that directly affect athletics. Ignoring these biological differences in sports would result in females unfairly being displaced by males. The Equal Protection Clause allows Idaho to limit its female athletic teams to biological females to keep a level playing field and preserve women’s equal opportunity to participate in sports. Idaho does not need to abandon this important equality goal and provide the special treatment the district court ordered for some biological males who are allowed to compete against biological females if and only if the biological males are transgender. The Constitution does not require the resulting harm to female equality in athletics.
On March 30, 2020, Idaho enacted the Fairness in Women’s Sports Act Fairness Act, which went into effect in July 2020. Idaho’s Fairness Act contains two main provisions. First, covered athletic teams “shall be expressly designated as one (1) of the following based on biological sex: (a) Males, men, or boys; (b) Females, women, or girls; or (c) Coed or mixed.” Second, “[a]thletic teams or sports designated for females, women, or girls shall not be open to students of the male sex.” The Fairness Act does not contain a comparable limitation for biological females who wish to participate on a team designated for biological males.
In enacting the Fairness Act, Idaho determined that “[h]aving separate sex specific teams furthers efforts to promote sex equality. Sex-specific teams accomplish this by providing opportunities for female athletes to demonstrate their skill, strength, and athletic abilities while also providing them with opportunities to obtain recognition and accolades, college scholarships, and the numerous other long-term benefits that flow from success in athletic endeavors.” In support of this conclusion, the Fairness Act cites authority establishing that inherent physiological differences between men and women generally include a difference in “strength, speed, and endurance” that results in “different athletic capabilities,” which generally give men a significant advantage in head-to-head competition. Id.
Removal Order Upheld Against Tennessee Man Who Served as Nazi Concentration Camp Guard During WWIIRead the Press Release
The Board of Immigration Appeals (BIA) has dismissed the appeal of Tennessee resident Friedrich Karl Berger, a German citizen who was ordered removed from the United States earlier this year on the basis of his service in Nazi Germany in 1945 as an armed guard of concentration camp prisoners in the Neuengamme Concentration Camp system (Neuengamme).
“Berger’s willing service as an armed guard at a Nazi concentration camp cannot be erased and will not be ignored,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department's Criminal Division. “On the eve of tomorrow’s 75th anniversary of the commencement of the Nuremberg trials of the surviving leaders of the defeated Nazi regime, this case shows that the passage of time will not deter the department from fulfilling the moral imperative of seeking justice for the victims of their heinous crimes.”
“Berger was an active participant in one of the darkest chapters in human history. He attempted to shed his nefarious past to come to America and start anew, but thanks to the dedication of those at the Department of Justice and Homeland Security Investigations, the truth was revealed,” said Deputy Assistant Director Louis A. Rodi III of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) National Security Investigations Division, which oversees the Human Rights Violators and War Crimes Center. “War criminals and violators of human rights will not be allowed to evade justice and find safe haven here.”
The BIA upheld a Memphis, Tennessee, Immigration Judge’s Feb. 28, 2020, decision that Berger was removable under the 1978 Holtzman Amendment to the Immigration and Nationality Act because his “willing service as an armed guard of prisoners at a concentration camp where persecution took place” constituted assistance in Nazi-sponsored persecution. The court found that Berger served at a Neuengamme sub-camp near Meppen, Germany, and that the prisoners there included “Jews, Poles, Russians, Danes, Dutch, Latvians, French, Italians, and political opponents” of the Nazis. The largest groups of prisoners were Russian, Dutch and Polish civilians.
After a two-day trial in February, the presiding judge issued an opinion finding that Meppen prisoners were held during the winter of 1945 in “atrocious” conditions and were exploited for outdoor forced labor, working, “to the point of exhaustion and death.” The court further found, and Berger admitted, that he guarded prisoners to prevent them from escaping during their dawn-to-dusk workday, and on their way to the worksites and also on their way back to the SS-run subcamp in the evening.
At the end of March 1945, as allied British and Canadian forces advanced, the Nazis abandoned Meppen. The court found that Berger helped guard the prisoners during their forcible evacuation to the Neuengamme main camp – a nearly two-week trip under inhumane conditions, which claimed the lives of some 70 prisoners. The decision also cited Berger’s admission that he never requested a transfer from concentration camp guard service and that he continues to receive a pension from Germany based on his employment in Germany, “including his wartime service.”
In 1946, British occupation authorities in Germany charged SS Obersturmführer Hans Griem, who had headed the Meppen sub-camps, and other Meppen personnel with war crimes for “ill-treatment and murder of Allied nationals.” Although Griem escaped before trial, the British court tried and convicted the remaining defendants of war crimes in 1947.
The trial and appeal of the removal case were handled by Eli Rosenbaum, Director of Human Rights Enforcement and Policy in the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), HRSP Senior Trial Attorney Susan Masling, and attorneys from ICE New Orleans, Office of the Principal Legal Advisor (Memphis), with assistance from HRSP Chief Historian Jeffrey S. Richter, and the Human Rights Violators and War Crimes Center. The investigation was initiated by the HRSP and was conducted in partnership with the Nashville ICE HSI office.
Since the 1979 inception of the Justice Department’s program to detect, investigate, and remove Nazi persecutors, it has won cases against 109 individuals. Over the past 30 years, the Justice Department has won more cases against persons who participated in Nazi persecution than have the law enforcement authorities of all the other countries in the world combined. HRSP’s case against Berger was part of its ongoing efforts to identify, investigate and prosecute individuals who engaged in genocide, torture, war crimes, recruitment or use of child soldiers, female genital mutilation, and other serious human rights violations. HRSP attorneys prosecuted the first torture case brought in the United States and have successfully prosecuted criminal cases against perpetrators of human rights violations committed in Guatemala, Ethiopia, Liberia, Cuba, and the former Yugoslavia, among others.
To learn more about HRSP, visit https://www.justice.gov/criminal-hrsp.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Orlando Cordia Hall Executed for 1994 Kidnapping and Murder of 16-Year-Old GirlRead the Press Release
Today, Orlando Cordia Hall was executed at U.S. Penitentiary Terre Haute in accordance with the capital sentence unanimously recommended by a federal jury and imposed by the U.S. District Court for the Northern District of Texas in 1996. Hall was pronounced dead at 11:47 p.m. EST.
In September 1994, Hall and several accomplices ran a marijuana trafficking operation out of Pine Bluff, Arkansas. After a failed drug transaction involving $4,700, Hall and his accomplices drove to the Arlington, Texas, home of a man they believed had stolen their money. The man’s 16-year-old sister, Lisa Rene, refused to let them inside. Although Rene — an honor roll student with dreams of becoming a doctor — had no role in the drug transaction, Hall and his accomplices broke into the apartment and kidnapped her at gunpoint. In the assailants’ car, Hall raped her and forced her to perform oral sex on him. Hall’s accomplices subsequently drove her to a motel in Arkansas, where they tied her to a chair and repeatedly raped her. Hall arrived at the motel room the next morning, took Rene into the bathroom for fifteen to twenty minutes, and emerged to announce that “she know too much.” That night, Hall and his accomplices took her to a park where Hall and another accomplice had dug a grave that afternoon, but they could not find the grave site in the dark. The next morning, they returned to the park with Rene. At the grave site, Hall placed a sheet over Rene’s head and hit her in the head with a shovel. Rene screamed and tried to run away, but the men tackled her and took turns beating her with the shovel. After soaking her with gasoline, they dragged her into the grave and buried her alive.
In 1995, a federal jury found Hall guilty of, among other offenses, kidnapping resulting in death, and unanimously recommended a death sentence, which the court imposed. His convictions and sentence were affirmed on appeal, and his requests for collateral relief were rejected by every court that considered them.
Justice Department Reaches Landmark Agreement with Massachusetts Department of Children and Families to Address Discrimination Against Parents with DisabilitiesRead the Press Release
The Departments of Justice and Health and Human Services (HHS) announced today that they reached a landmark agreement with the Massachusetts Department of Children and Families (DCF).
The agreement resolves findings by the Justice Department and HHS that DCF discriminated against parents with disabilities in the administration of its child welfare program in violation of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act. This is the first Department of Justice settlement to address disability discrimination by a state child welfare agency.
“The stakes are never higher than when a parent faces the possibility of losing a child,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Individuals with disabilities have just as much a right to raise their children as any other person in this free country, and no government should unnecessarily infringe upon that sacred right. While child welfare agencies are faced with challenging and weighty decisions on a daily basis, they must always strive to ensure that no child is removed from a parent on the basis of unsupported stereotypes, discriminatory attitudes, or other unlawful reasons. This agreement will ensure that parents with disabilities are treated as individuals, and that they receive the supports and services they need to have an equal opportunity to retain or regain custody of their children. We believe this agreement will not only help thousands of families in Massachusetts, but also will provide a roadmap for child welfare agencies nationwide on how to treat parents with disabilities with the fairness, dignity, and respect that they deserve.”
“Parents with disabilities should never lose custody of their children due to discriminatory assumptions about their abilities. The love of a parent, coupled with proper support services, can overcome a multiplicity of challenges,” said Roger Severino, Director of the HHS Office for Civil Rights. “We are pleased to have reached this great result with the Department of Justice and Massachusetts.”
In 2015, the Department of Justice and HHS jointly found that DCF discriminated against a mother with a developmental disability and sought to terminate her parental rights to her infant daughter based on assumptions about her disability. Over the past five years, the Department of Justice and HHS received similar complaints against DCF from parents with physical, hearing, developmental, and other disabilities. The departments also received numerous complaints alleging that DCF denied requests for reasonable modifications, failed to provide interpreters to individuals with hearing impairments, and otherwise denied parents with disabilities an equal opportunity to benefit from DCF’s programs and services. The Justice Department investigated and substantiated many of these allegations, as well as allegations that DCF’s methods of administering its programs and services have the effect of discriminating against parents with disabilities.
Under today’s agreement, DCF will take critical steps to ensure the ADA’s protections extend to parents with disabilities throughout the Commonwealth of Massachusetts. DCF will not base decisions about removal of a child on stereotypes or generalizations about persons with disabilities. Rather, DCF will base such decisions on an individualized assessment of the parent with a disability and objective facts. Additionally, DCF will appoint statewide and regional coordinators to oversee DCF’s efforts to comply with the ADA and Section 504; create a new Parents with Disabilities Policy, including processes for requesting disability-based accommodations and filing disability-based complaints; train staff on DCF’s obligations to parents with disabilities and its new policies and procedures; and periodically report to the Department of Justice and HHS on its handling of accommodation requests and disability-related complaints.
The ADA requires that child welfare agencies provide parents with disabilities an equal opportunity to access and benefit from their services. Such agencies must reasonably modify policies and practices when necessary to avoid disability discrimination. They must ensure that communication with parents with disabilities is effective. And they must not use criteria or other administrative methods that result in disability discrimination.
This year marks the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. To learn more about the ADA’s history and impact, please visit the department’s ADA Anniversary webpage.
To read the Department of Justice and HHS’s previously issued technical assistance for child welfare agencies, 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 Justice Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Files Complaint against Jeffrey Lowe and Tiger King LLC for Violations of the Endangered Species Act and the Animal Welfare ActRead the Press Release
Today, the Department of Justice filed a civil complaint against Jeffrey and Lauren Lowe, Greater Wynnewood Exotic Animal Park LLC, and Tiger King LLC, to address recurring inhumane treatment and improper handling of animals protected by the Endangered Species Act.
The complaint alleges violations of the Endangered Species Act and the Animal Welfare Act and asks the court to declare that defendants have violated and will continue to violate the Endangered Species Act by illegally taking, possessing, and transporting protected animals, and the Animal Welfare Act by exhibiting without a license and placing the health of animals in serious danger. The complaint also asks the court to require the defendants to relinquish certain animals to the United States, to cease violating these laws, to award the United States costs, and to grant other relief as appropriate.
“The Lowes’ failure to provide basic veterinary care, appropriate food, and safe living conditions for the animals does not meet standards required by both the Animal Welfare Act and the Endangered Species Act,” said Principal Deputy Assistant Attorney General Jonathan D. Brightbill of the Environment and Natural Resources Division. “Exhibitors cannot evade the law simply by shutting out the USDA and moving their animals elsewhere. The Department of Justice will support the USDA in pursuing those who violate federal animal protection laws.”
“Animal exhibitors, whether they exhibit in person or on-line, must possess a license and provide adequate care for their animals as provided for by Animal Welfare Act regulations,” said U.S. Department of Agriculture (USDA) General Counsel Stephen A. Vaden. “This action reflects the priority that USDA places on the enforcement of the Animal Welfare Act.”
Until August 2020, Jeffrey and Lauren Lowe operated the Greater Wynnewood Exotic Animal Park, located in Wynnewood, Oklahoma. The Wynnewood facility exhibited numerous animals protected by the Endangered Species Act, including tigers, lions, and other big cats, a grizzly bear, and ring-tailed lemurs.
In June and July 2020, USDA Animal Plant and Health Inspection Service inspectors found numerous animals in poor health and living in substandard conditions at the Wynnewood facility, in violation of the Endangered Species Act and the Animal Welfare Act. The Lowes did not provide timely and adequate veterinary care, causing the animals to suffer from easily treatable conditions, in some cases resulting in untimely death. Animals were not provided with sufficient quantities of appropriate food and were underweight and suffering from nutritional deficiencies, making them susceptible to fractures, unable to stand or walk, and exhibiting neurological problems.
The Lowes also failed to maintain sanitary and safe conditions, resulting in fly strikes on the animals’ bodies. Fly strike dermatitis is a preventable condition in which flies continuously attack, bite, and penetrate the skin of an animal. The flies lay eggs on open or irritated skin, causing infestations of maggots and painful sores. Inspectors also found foul-smelling, partially burned and decomposing big cat carcasses and a broken-down refrigerator truck containing rotting meat. They found no other properly refrigerated meat on site for the animals. The Lowes also routinely separated big cat cubs and lemur pups from their mothers at too early an age for public “playtime” events, resulting in long-lasting harm.
As one example of this inhumane treatment, in June 2020, USDA Animal Plant and Health Inspection Service inspectors observed a lion cub named Nala. The cub was lethargic, depressed, thin, and would not get up out of the mud even after prompting. She had discharges emanating from her nose and eyes, and sores on her ears. The inspectors directed the Lowes to immediately obtain veterinary care for Nala. Nala was diagnosed with an upper respiratory infection, dehydration, and urinary tract infection, and was also suffering from fly strikes, parasites, and fleas. Nala was transferred to a wildlife sanctuary in Colorado in September. She has been diagnosed with malnutrition and vitamin deficiencies so severe as to cause a chronic bone fracture and lameness.
USDA suspended Jeffrey Lowe’s Animal Welfare Act exhibitor license and initiated an administrative action to permanently revoke his license. Lowe has previously claimed to be above the law and, “If we lose a lawsuit, we simply change the name and open another business someplace else.” Days later, Lowe unilaterally terminated his license and sought to put his operation beyond USDA inspection and investigation. The Lowes then moved animals to a property in Thackerville, Oklahoma, located in the middle of a rural, residential area. The Lowes have made public statements that the new Thackerville facility will be named “Tiger King Park” and will operate as a film set for television shows and other video content. The Lowes do not have a license to exhibit animals.
The complaint also seeks a court order to permit immediate inspection of the facility, to prevent the Lowes from exhibiting their animals in person or through online platforms, to prevent the Lowes from acquiring or disposing of any animals during the injunction, and for any and all veterinary records for any animals treated during the injunction.
The case is being handled by attorneys from the Environment and Natural Resources Division. The case is being investigated by USDA’s Animal Plant and Health Inspection Service and the Department of the Interior’s Fish and Wildlife Service.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Burn Pit Lion Cub with Damaged Ear Tiger with Damaged Ear Tiger with Damaged EarJustice Department Files Antitrust Case and Simultaneous Settlement Requiring National Association of Realtors® to Repeal and Modify Certain Anticompetitive RulesRead the Press Release
The Department of Justice today filed a civil lawsuit against the National Association of REALTORS® (NAR) alleging that NAR established and enforced illegal restraints on the ways that REALTORS® compete.
The Antitrust Division simultaneously filed a proposed settlement that requires NAR to repeal and modify its rules to provide greater transparency to home buyers about the commissions of brokers representing home buyers (buyer brokers), cease misrepresenting that buyer broker services are free, eliminate rules that prohibit filtering multiple listing services (MLS) listings based on the level of buyer broker commissions, and change its rules and policy which limit access to lockboxes to only NAR-affiliated real estate brokers. If approved, the settlement will enhance competition in the real estate market, resulting in more choice and better service for consumers.
“Buying a home is one of life’s biggest and most important financial decisions,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Home buyers and sellers should be aware of all the broker fees they are paying. Today’s settlement prevents traditional brokers from impeding competition — including by internet-based methods of home buying and selling — by providing greater transparency to consumers about broker fees. This will increase price competition among brokers and lead to better quality of services for American home buyers and sellers.”
According to the complaint, NAR’s anticompetitive rules, policies, and practices include: (i) prohibiting MLSs that are affiliated with NAR from disclosing to prospective buyers the commission that the buyer broker will earn; (ii) allowing buyer brokers to misrepresent to buyers that a buyer broker’s services are free; (iii) enabling buyer brokers to filter MLS listings based on the level of buyer broker commissions offered; and (iv) limiting access to the lockboxes that provide licensed brokers with access to homes for sale to brokers who work for a NAR-affiliated MLS. These NAR rules, policies, practices have been widely adopted by NAR-affiliated MLSs resulting in decreased competition among real estate brokers.
NAR is a trade association of more than 1.4 million-member REALTORS® who are engaged in residential real estate brokerages across the United States. NAR has over 1,400 local associations (called “Member Boards”) organized as MLSs through which REALTORS® share information about homes for sale in their communities. Among other activities, NAR establishes and enforces rules, policies, and practices that are adopted by the Member Boards and their affiliated MLSs.
The proposed settlement will be published in the Federal Register as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments regarding the proposed final judgment within 60 days of its publications to Chief, Office of Decree Enforcement and Compliance, Antitrust Division, U.S. Department of Justice, 950 Pennsylvania Ave., N.W., Washington, DC 20530. At the conclusion of the 60-day comment period, the court may enter the proposed final judgment upon a finding that it serves the public interest.
Employee of Government Contractor Pleads Guilty to Fraud and Kickback ChargesRead the Press Release
An employee of a government contractor pleaded guilty today to his involvement in a scheme to overbill a contract administered by the General Services Administration (GSA) by approximately $1.25 million, and solicit and receive kickbacks from a subcontractor in exchange for providing that subcontractor valuable contract modifications.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division; Special Agent in Charge Eric D. Radwick, Mid-Atlantic Division, Office of Investigations, GSA Office of Inspector General; Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office; and Special Agent in Charge Robert J. Smolich of the Department of State’s Office of Inspector General, Office of Investigations, Americas, Pacific, and Asia Division made the announcement.
Elmer Baker, 68, of Gulf Breeze, Florida, pleaded guilty to one count of conspiracy to violate the anti-kickback statute and four counts of wire fraud before Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia. Sentencing will be scheduled for a later date.
According to admissions made in connection with the plea agreement, Baker served as the project manager for his company on the contract administered by the GSA. After his company awarded a subcontract to a construction company for work on the facility, Baker began receiving kickbacks in the form of meals, golf sessions, vacations, and other things of value. In or around 2015, Baker began demanding monetary kickbacks that were valued at 10 percent of the amount of each of the subcontract modifications that he awarded the subcontractor. Baker sent the subcontractor fake invoices to make it appear as though the payments he was receiving were for legitimate work, and he set up a shell company to receive the payments. Additionally, Baker took the subcontract estimates provided to him and illegally inflated them in his requests to the GSA. Over the course of several subcontract modifications, Baker defrauded the GSA out of approximately $1.25 million.
The Criminal Division’s Fraud Section is the nation’s leading prosecuting authority on government procurement fraud and corruption matters.
The GSA Office of Inspector General, FBI’s Washington Field Office, and the State Department Office of Inspector General are investigating this case. Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section is prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
American Contractor Sentenced to Prison for Theft of Government Equipment on U.S. Military Base in AfghanistanRead the Press Release
An American military contractor was sentenced today to more than three years in prison for his role in a theft ring on a military installation in Kandahar, Afghanistan.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.
Larry J. Green, 43, of Chesapeake, Virginia was sentenced before U.S. District Judge Arenda L. Wright Allen to 41 months imprisonment to be followed by two months of supervised release, and ordered to pay restitution in the amount of $179,708. In July 2020, Green pleaded guilty to one count of conspiracy to defraud the United States and commit theft of property of value to the United States worth over $300,000; one count of theft of property of value to the United States; and one count of aiding and abetting the submission of false statements.
Green admitted that, between April 2015 and July 2015, he and others conspired to and did steal property of value to the United States including generators and a truck. Green negotiated the sale of the stolen property with a third-country national middleman, who facilitated the sale of the items to unknown persons in Kandahar, Afghanistan. Green admitted that, in order to effectuate the theft of the generators, he aided and abetted one of his co-conspirators, Varita Quincy, a security badging and escort pass supervisor, in the creation of false official documents.
The false official documents facilitated both the entry of unknown and unvetted Afghan nationals and their vehicles onto the military installation and effectuated the removal of the stolen property from the installation. The falsified documents were used to deceive security officers and gate guards and compromised the security of U.S. military and civilian personnel on the military installation. Quincy pleaded guilty to similar charges on Oct. 13, 2020.
Sentencing for Varita Quincy is set for Feb. 23, 2021.
SIGAR investigated the case with help from Army Criminal Investigation Command (CID) and the 939th Military Police Detachment of the Indiana Army National Guard. Trial Attorneys Sasha N. Rutizer of the Criminal Division’s Human Rights and Special Prosecutions Section, Rosaleen O’Gara of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Joseph Kosky of the Eastern District of Virginia are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Separate and Unrelated Indictments Charge Individuals in Connection with Business Email Compromise Fraud SchemesRead the Press Release
BIRMINGHAM, Ala. – Prim F. Escalona, the United States Attorney for the Northern District of Alabama, and Johnnie Sharp, Jr. the Special Agent in Charge of the Birmingham Field Office of the Federal Bureau of Investigation (“FBI”), announced two indictments against four defendants charged for their roles in separate and unrelated business email compromise fraud schemes.
On November 17, 2020 a federal grand jury indicted Oyedele Aro Benjamin, 26, of Chicago, Illinois, and Adetona Lala, 37, of Country Club Hills, Illinois, with conspiracy to commit wire and bank fraud, wire fraud, bank fraud, aggravated identity theft, and conspiracy to commit money laundering. The indictment alleges that from September 2018 to May 2019, Benjamin and Lala were part of an international criminal conspiracy that targeted companies throughout the United States of America with business email compromise schemes. Members of the conspiracy tricked and deceived victims into sending payments for legitimate business services to bank accounts that were controlled by the defendants and used for money laundering. The defendants executed this fraudulent scheme by, among other things, using fake names, false identity documents, and shell companies to open bank accounts used to receive fraud proceeds and then to launder those funds. The charges of conspiracy to commit bank fraud and bank fraud each carry a maximum penalty of 30 years in prison. The charges of conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering each carry a maximum penalty of 20 years in prison. Benjamin and Lala are also charged with one count of aggravated identity theft, which carries a mandatory sentence of two years in prison.
The FBI investigated the case, with assistance from the U.S. Attorney’s Office for the Northern District of Illinois and former Assistant United States Attorney Jonathan Keim. Assistant United States Attorneys Edward J. Canter and Catherine L. Crosby are prosecuting the case.
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On November 17, 2020, a federal grand jury indicted Ohimai Asikhia, 36, of Glassboro, New Jersey, and Paulinus Ebhodaghe, 39, of Clementon, New Jersey with conspiracy to commit money laundering. The indictment alleges that from June 2018 through November 2018, Asikhia and Ebhodaghe conspired to launder the proceeds of various fraud schemes, including business email compromise fraud schemes and online romance scams. If convicted Asikhia and Ebhodage face a maximum penalty 20 years in prison and a fine of $500,000 or both for conspiracy to commit money laundering.
The FBI investigated the case, with assistance from the U.S. Attorney’s Office for the District of New Jersey and former Assistant United States Attorney Jonathan Keim. Assistant United States Attorney Edward J. Canter is prosecuting the case.
The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
President of Commercial Flooring Company Pleads Guilty to Rigging Bids in Violation of Federal Antitrust LawsRead the Press Release
Delmar E. Church Jr., the president and one of the principal owners of a Chicago-area commercial flooring company, pleaded guilty for his role in a conspiracy to rig bids and fix prices for commercial flooring services and products sold in the United States, the Department of Justice announced. The defendant is cooperating with the department’s ongoing investigation.
According to the plea agreement filed in the U.S. District Court in Chicago, Illinois, from at least as early as 2009 until at least June 22, 2017, Church engaged in a conspiracy to suppress and eliminate competition in the commercial flooring market by agreeing with other individuals and companies to submit complementary bids so the designated company would win the bid. Church’s plea is the sixth plea in the investigation.
“American businesses and institutions deserve the benefits of competition when soliciting bids for commercial construction services and products,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The recent guilty plea — a plea from the highest-ranking executive to date — marks the continued progress of and latest milestone in this investigation. The Antitrust Division and its law enforcement partners are committed to holding responsible the most-senior culpable individuals that engage in and direct harmful bid rigging conspiracies.”
“Competition in the marketplace helps level the playing field for both businesses and consumers,” said Special Agent in Charge Emmerson Buie Jr. of the Federal Bureau of Investigation’s Chicago Field Office. “This guilty plea serves as a warning to bid riggers and price fixers that the FBI and its partners will hold them accountable for their crimes.”
Violations of the Sherman Act carry a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The guilty plea is the result of an ongoing federal antitrust investigation into bid rigging, price fixing, and other anticompetitive conduct in the commercial flooring industry being conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Office. Anyone with information on bid rigging, price fixing, or other anticompetitive conduct related to the commercial flooring industry should contact the Antitrust Division’s Chicago Office at 312-984-7200 or Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Justice Department Signs Antitrust Memorandum of Understanding with Korean Prosecution ServiceRead the Press Release
Yesterday, the Department of Justice signed an antitrust Memorandum of Understanding (MOU) with the Korean Prosecution Service (KPS). The MOU is designed to promote increased cooperation and communication on criminal antitrust enforcement and policy in both countries.
Assistant Attorney General Makan Delrahim of the U.S. Department of Justice’s Antitrust Division signed the MOU in a virtual ceremony with Prosecutor General Yoon Seok-Youl of the KPS, who was in Seoul, South Korea. The MOU went into effect upon signature.
“This memorandum of understanding recognizes the increasing importance of criminal antitrust enforcement in South Korea, and the prioritization of both countries to detect and punish illegal cartel activity,” said Assistant Attorney General Delrahim. “The KPS has become a close enforcement partner in recent years, and this MOU provides a foundation for even greater cooperation and coordination.”
Highlights of the MOU include the following:
- a shared commitment to consider both parties’ enforcement objectives and important interests when conducting enforcement activities;
- a commitment of both parties to exchange experiences on the enforcement of their criminal cartel laws and engage in shared trainings and other technical assistance initiatives; and
- an obligation to maintain the confidentiality of any information provided by the other party and honor prohibitions on sharing information when not permitted by law.
The United States has a close trading and military partnership with South Korea. The KPS has taken on a more prominent role in criminal antitrust enforcement in South Korea, and the MOU is intended to further strengthen the relationship between the two law enforcement partners as they work together to root out harmful collusive conduct that affects consumers in both countries.
The MOU with the KPS closely resembles an earlier MOU the Department of Justice reached with the Korea Fair Trade Commission in 2015.
Assistant Attorney General Delrahim’s remarks at the signing ceremony of the MOU is available at https://www.justice.gov/opa/speech/assistant-attorney-general-makan-delrahim-delivers-remarks-virtual-mou-signing-ceremony.
Judge sentences St. Louis County man for drug and firearm offensesRead the Press Release
ST. LOUIS, MO – United States District Judge Catherine D. Perry sentenced Dajuan Hall, Jr. to 132 months in prison today. The 28-year-old Hazelwood, Missouri resident pleaded guilty to several drug and firearms offenses, along with being a felon in possession of a firearm.
On July 14, 2018, Hazelwood Police answered a call for ‘shots fired’ at Knollwood Apartments and learned someone left the area with an AK-47-type assault rifle. Police discovered a gunshot victim bleeding heavily from the chest. In searching the area for witnesses and other possible victims, police made contact with Hall, Jr., and another person who lived in one of the units.
Witnesses told police they heard an argument at the time of the shooting come from inside the unit. Hall was not cooperative, denied anyone else was in the unit and denied any knowledge of the shooting. Police detained Hall after confirming he had active warrants for his arrest. Lawful police searches of the unit revealed two people in a back room and various firearms, ammunition and drug evidence, including: two loaded pistols; three loaded assault rifles; a box of .48 caliber ammo; .38 caliber rounds; a .40 caliber 50-round capacity drum magazine; an extended magazine with 10 .45 caliber rounds and a box of .223 ammo (79 rounds); a revolver; a rifle; boxes of rifle ammunition; fentanyl; synthetic fentanyl; heroin; marijuana. Hall also possessed 264 capsules of Dormin, an ingredient used to “cut” controlled substances as well as other drug distribution paraphernalia and ten cellphones.
On August 23, 2018, investigators with St. Louis County Police Narcotics Unit and FBI agents executed another search warrant at Hall’s new residence in St. Louis County. Hall was present when police found a clear plastic bag containing an off-white powder, which Hall admitted was fentanyl that he was selling.
On September 6, 2018, an undercover detective bought fentanyl from a member of “Crew B.” The detective exchanged $60 with the drug seller in a vehicle driven by Hall. Police tried making an arrest, but Hall and the passenger ran. Police eventually took both into custody and searched the vehicle, which contained a pistol, drugs and phones.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Hazelwood Police Department, Major Case Squad and St. Louis County Police Department investigated this case. Assistant United States Attorney Paul D’Agrosa is handling the case.
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Federal Search Warrants ExecutedRead the Press Release
DES MOINES, Iowa -- On Wednesday, November 18, 2020, federal search warrants were executed at the following locations in the Des Moines metropolitan area:
- 2000 block of Lay Street, Des Moines
- 1100 block of 21st Street, Des Moines
- 3000 block of Woodland Avenue, Des Moines
- 2400 block of Prospect Road, Des Moines
- 2200 block of Forest Avenue, Des Moines
- 1800 block of Glenbrook Drive, Des Moines
- 900 block of East Ovid Avenue, Des Moines
- 2300 block of East 39th Street, Des Moines
- 1100 block of 19th Street, Des Moines
- 100 block of Loomis Avenue, Des Moines
- 800 block of Payton Avenue, Des Moines
- 1600 block of Des Moines Street, Des Moines
- 1600 block of Hull Avenue, Des Moines
- 900 block of East Lacona Avenue, Des Moines
- 2100 block of East 13th Street, Des Moines
- 1500 block of University Avenue, Des Moines
- 2800 block of Fleur Drive, Des Moines
- 2200 block of 68th Street, Windsor Heights
- 500 block of Grandview Avenue, Des Moines
- 700 block of 13th Street, West Des Moines
- 1900 block of Martin Luther King, Jr. Parkway, Des Moines
- 2900 block of East 36th Street, Des Moines
- 4600 block of Hubbell Avenue, Des Moines
- 6500 block of Chaffee Road, Des Moines
- 2600 block of Northwest 165th Lane, Clive
- 500 block of Pleasant View Drive, Des Moines
- 2600 block of East Sheridan Avenue, Des Moines
- 2000 block of 63rd Street, Windsor Heights
- 1500 block of 20th Place, Des Moines
- 700 block of 27th Street, Des Moines
- 3000 block of Southeast 19th Street, Des Moines
- 6200 block of Southeast 5th Street, Des Moines
- 1500 block of 13th Street, Des Moines
- 1400 block of Merle Hay Road, Des Moines
- 3200 block of Cornell Street, Des Moines
- 1100 block of Clark Street, Des Moines
- 1000 block of 13th Street, Des Moines
- 2400 block of Hickman Road, Des Moines
- 1900 block of King Avenue, Des Moines
- 1400 block of Richmond Avenue, Des Moines
- 200 block of East Edison Avenue, Des Moines
- 600 block of 2nd Street, Waukee
- 1500 block of Greene Street, Adel
The searches at these locations were an official law enforcement action involving officers, agents, and investigators from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Des Moines Police Department (DMPD); Iowa Division of Narcotics Enforcement (DNE); Iowa State Patrol (ISP); Mid-Iowa Narcotics Enforcement Task Force (MINE); Tri-County Task Force; Central Iowa Drug Task Force (CIDTF); Mid-Iowa Drug Task Force (MIDTF); Iowa Department of Criminal Investigation (DCI); Federal Bureau of Investigation (FBI); Internal Revenue Service – Criminal Investigations (IRS-CI); Homeland Security Investigations (HIS); Altoona Police Department; West Des Moines Police Department; Urbandale Police Department; Marshalltown Police Department; Dallas County Sheriff’s Office; and Iowa State Fire Marshal.
Building Border Security Capacity in Southeast Asia:Read the Press Release
In cooperation with the U.S. Department of State, INTERPOL Washington, the United States National Central Bureau (USNCB), has implemented a new web-based platform designed to promote awareness of, and participation in, Project TERMINUS among law enforcement and border security authorities in the Southeast Asian Region.
Developed by the USNCB and funded by the State Department, Project TERMINUS makes expert technical assistance available to countries seeking to integrate access to INTERPOL’s Stolen and Lost Travel Documents Database (SLTD) into their national border security information sharing systems to help screen against the illicit international travel of transnational criminals and terrorists.
Originally to have been presented by the USNCB during the 2020 Southeast Asian Workshop on Border Security and Law Enforcement Cooperation – which was cancelled due to the global pandemic – the U.S. content has instead been made available to participating border security authorities via a controlled access website comprised of a series of videos that provide technical and programmatic information about the TERMINUS initiative. Each video is supported by a written transcript of the speakers’ remarks, to assist partner countries in translating the content.
Featured speakers include USNCB Director Uttam Dhillon and Mr. Sam Pineda, Director of Programs in the State Department’s Bureau of Counterterrorism. “INTERPOL Washington is pleased to continue this important collaboration with our State Department partners. This whole-of-government approach to providing assistance to Southeast Asian and African nations will contribute to the overall U.S. effort to thwart the international travel of transnational criminals,” said Dhillon.
Since 2017, U.S. capacity building efforts in the Southeast Asian region conducted under Project TERMINUS and its predecessor programs have resulted in:
- More than 70 million international passengers being screened against INTERPOL data.
- More than 680,000 identity and travel documents being automatically uploaded into INTERPOL’s SLTD database, using a computer application developed by the USNCB, and
- More than 50 air, land, and sea-port facilities now actively screening all inbound and outbound international passengers against INTERPOL’s databases.
The TERMINUS web site also provides information regarding the USNCB’s recent collaboration with the Nigeria Immigration Service (NIS), in which the USNCB-developed WISDM Uploader was installed remotely by the USNCB, enabling NIS to automatically upload more than 147,000 records of stolen and lost Nigerian travel and identity documents into the SLTD system in less than two hours.
The Project TERMINUS overview video is available here. The transcript of the video is here: project_terminus_opening_video_transcript.pdf
A component of the U.S. Department of Justice, INTERPOL Washington, the U.S. National Central Bureau (USNCB), is the designated United States representative to INTERPOL on behalf of the Attorney General. It serves as the national point of contact and coordination for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies.
Statement from Acting Solicitor General Jeffrey B. Wall on the Passing of Former Solicitor General Drew S. Days IIIRead the Press Release
Today, Acting Solicitor General Jeffrey B. Wall issued the following statement on the passing of former Solicitor General Drew S. Days III:
“We are saddened to learn of the passing yesterday of former Solicitor General Drew Days. As Solicitor General from 1993 to 1996, Drew Days was a distinguished advocate for the United States before the Supreme Court, a wise leader for this office, and a cherished colleague. His career outside the office was no less remarkable. He was a trailblazing civil-rights litigator for the NAACP Legal Defense Fund, the respected head of the Justice Department’s Civil Rights Division, and a beloved professor at Yale Law School for many decades. His colleagues at the Solicitor General’s Office will remember Drew as a kind and gentle soul with a firm commitment to principle. We offer our deepest condolences to his family and join the legal community in mourning his passing.”
OECD Working Group on Bribery Issues Report Commending United States for Maintaining Leading Role in the Fight Against Transnational CorruptionRead the Press Release
The Working Group on Bribery of the Organisation for Economic Co-operation and Development (OECD Working Group) issued its Phase 4 Report of the United States today, announced the U.S. Departments of Justice, Commerce, State, and the Securities and Exchange Commission (SEC).
The Phase 4 Report is part of the OECD Working Group’s peer monitoring process and focuses primarily on the United States’ enforcement of its foreign bribery statute, the Foreign Corrupt Practices Act (FCPA), and was issued following a year-long review that included a series of interviews with government, private sector, academic, and civil society experts. In releasing the report, the 44-country OECD Working Group applauded the United States for its sustained and outstanding commitment to enforcing its foreign bribery laws.
The report highlights the United States’ increasing foreign bribery enforcement level since the OECD Working Group’s Phase 3 Report in 2010. As provided in the Phase 4 Report, between September 2010 and July 2019, through the Justice Department and the SEC’s efforts, the United States convicted or sanctioned 174 companies and 115 individuals for foreign bribery and related offences under the FCPA. The report indicates that this achievement resulted from a combination of enhanced expertise and resources to investigate and prosecute foreign bribery, the enforcement of a broad range of offences in foreign bribery cases, the effective use of non-trial resolution mechanisms, and the development of published policies to incentivize companies’ cooperation with law enforcement agencies.
Established in 1994, the OECD Working Group is responsible for monitoring the implementation and enforcement of the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the 2009 Recommendation for Further Combating Bribery of Foreign Public Officials in International Business Transactions, and related instruments. Made up of representatives from the 44 countries that are signatories to the OECD Convention, the OECD Working Group meets four times per year, conducts peer-review country monitoring in successive phases, and publishes all of its country monitoring reports online. The OECD Working Group has been instrumental in leading global efforts to fight bribery of foreign officials. Further, the OECD Working Group’s law enforcement officers’ meetings serve an important role in fostering contacts between global law enforcement officials who focus on foreign bribery matters.
The full Phase 4 Report of the United States can be found at: /media/1105316/dl?inline.
The Fraud Section is responsible for investigating and prosecuting all criminal FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Joint Statement by Attorney General of the United States William P. Barr and Fiscalía General of Mexico Alejandro Gertz ManeroRead the Press Release
Attorney General of the United States William P. Barr and Fiscalía General of Mexico Alejandro Gertz Manero issued today the following statement:
“On Oct. 15, 2020, former Mexican Secretary of National Defense General Salvador Cienfuegos Zepeda was arrested in Los Angeles, California, on U.S. charges of conspiracy to manufacture, import, and distribute narcotics into the United States and money laundering.
“The Mexican Fiscalía General de la República, upon learning of the arrest and U.S. charges against General Cienfuegos, opened its own investigation.
“In recognition of the strong law enforcement partnership between Mexico and the United States, and in the interests of demonstrating our united front against all forms of criminality, the U.S. Department of Justice has made the decision to seek dismissal of the U.S. criminal charges against former Secretary Cienfuegos, so that he may be investigated and, if appropriate, charged, under Mexican law.
“At the request of the Fiscalía General de la República, the U.S. Department of Justice, under the Treaty that governs the sharing of evidence, has provided Mexico evidence in this case and commits to continued cooperation, within that framework, to support the investigation by Mexican authorities.
“Our two countries remain committed to cooperation on this matter, as well as all our bilateral law enforcement cooperation. As the decision today reflects, we are stronger when we work together and respect the sovereignty of our nations and their institutions. This close partnership increases the security of the citizens of both our countries.”
The China Initiative: Year-in-Review (2019-20)Read the Press Release
On the two-year anniversary of the Attorney General’s China Initiative, the Department continues its significant focus on the Initiative’s goals and announced substantial progress during the past year in disrupting and deterring the wide range of national security threats posed by the policies and practices of the People’s Republic of China (PRC) government.
"In the last year, the Department has made incredible strides in countering the systemic efforts by the PRC to enhance its economic and military strength at America’s expense," said Attorney General William P. Barr. "While much work remains to be done, the Department is committed to holding to account those who would steal, or otherwise illicitly obtain, the U.S. intellectual capital that will propel the future."
"The Chinese Communist Party’s theft of sensitive information and technology isn't a rumor or a baseless accusation. It’s very real, and it’s part of a coordinated campaign by the Chinese government, which the China Initiative is helping to disrupt," said FBI Director Christopher Wray. "The FBI opens a new China-related counterintelligence case nearly every 10 hours and we’ll continue our aggressive efforts to counter China’s criminal activity."
Established in November 2018, the Initiative identified a number of goals for the Department, ranging from increased focus on the investigation and prosecution of trade secret theft and economic espionage, to better countering threats posed by Chinese foreign investment and supply chain vulnerabilities.
Prioritize investigations of economic espionage and trade secret theft
The Initiative prioritizes use of the Department’s core tool, criminal investigation and prosecution, to counter economic espionage and other forms of trade secret theft. In the past year, the Department charged three economic espionage cases (in which the trade secret theft was intended to benefit the Chinese government), bringing the total to five since the China Initiative was first announced. Overall, since the Initiative was announced, we have charged more than 10 cases in which the trade secret theft had some alleged nexus to China, and we obtained guilty pleas of three defendants in those cases over the past year.
To take one example, the Department announced the China Initiative on the same day that it unsealed criminal charges against United Microelectronics (UMC), the Chinese state-owned enterprise Fujian Jinhua, and several individual defendants, for economic espionage that victimized Micron Technology, Inc., a leading U.S. semiconductor company.
"The United Microelectronics case is a glaring example of the PRC’s ‘rob, replicate, and replace’ strategy, in which it robs a U.S. institution of its intellectual capital, replicates the stolen technology, and then endeavors to replace the U.S. institution on the Chinese and then the global market," said John Demers, Assistant Attorney General for National Security. "Thanks to the dedication and diligence of prosecutors and FBI agents, UMC pleaded guilty to criminal trade secret theft and agreed to pay a fine of $60 million, the second largest fine in a trade secret case, and to cooperate in the pending prosecution of its co-defendants."
The National Counterintelligence Task Force, co-led by the FBI, launched its first major campaign in 2020, devoted to protecting U.S. technology and research from the Chinese government and its proxies. This is a further step in the FBI’s and Department’s efforts to enlist all appropriate partners in ensuring integrity in government-funded programs and defeating economic espionage and theft of trade secrets.
Develop an enforcement strategy for non-traditional collectors
At the outset, the Department identified academia as one of our most vulnerable sectors, because its traditions of openness, and the importance of international exchanges to the free flow of ideas, leave it vulnerable to PRC exploitation. The Department has pursued a two-pronged strategy of raising awareness on campuses of the threats posed by China (and the importance of implementing a security program to detect them) and prosecuting researchers who have deliberately deceived authorities about their ties to China, which deprives institutions of the ability to screen for conflicts of interest and commitment, or otherwise exploited their access.
For example, the PRC has used talent programs to encourage the transfer of technical expertise from the United States, and elsewhere in the world, to benefit the PRC’s economic and military development. Talent recruits generally sign contracts with the PRC sponsor-entity that obligate them to produce scientific outputs; to publish the results of their work in the name of the PRC beneficiary; to allow the PRC beneficiary to assert intellectual property rights over their outputs; and to recruit other researchers into the programs, among other obligations.
In exchange, the talent recruits may receive lucrative compensation packages, prestigious titles, and custom-built laboratories.
“While membership in these talent programs is not per se illegal, and the research itself may not always be protected as a trade secret, we know the PRC uses these plans, such as the well-known Thousand Talents Program, as a vehicle to recruit individuals with access to U.S. government-funded research to work in the interest of the Chinese Communist Party,” said Adam S. Hickey, Deputy Assistant Attorney General, National Security Division.
The Initiative brings together resources from across the Department, including the National Security, Criminal, Tax, and the Civil Divisions to address this unique challenge fairly and effectively. In the past year, Department prosecutors have brought fraud, false statements, tax, smuggling and other charges against ten academics affiliated with research institutions across the country. To date, prosecutors have obtained convictions in three of those cases.
This year, the FBI and Department prosecutors also exposed six individuals, studying in the United States, found to be connected to People’s Liberation Army military institutes, who concealed their affiliations from the State Department when applying for research visas to study at U.S. universities. In one of those cases, the Department alleged that a PLA officer was being tasked by superiors in the PRC to obtain information that would benefit PLA operations. In another case, a PLA medical researcher stands accused of following orders to observe lab operations at a U.S. university, which received funding from the U.S. government, in order to replicate those operations in the PRC.
In each of the cases, the defendants are accused of concealing their PLA affiliations in order to obtain visas that allowed them to travel to the United States. After the FBI conducted interviews this summer that led to charges in those cases and the State Department closed the PRC’s Houston Consulate, a large number of undeclared, PLA-affiliated Chinese researchers fled the United States.
Those six examples are just part of the interagency effort to protect academia and taxpayer-funded research. The FBI and Department have been collaborating with federal grant-making agencies, the Joint Committee on the Research Environment, the major academic associations, the Academic Security and Counter Exploitation working group, and other appropriate entities, as well as hundreds of individual universities nationwide.
Counter malicious cyber activity
The Department continues to expose and disrupt efforts by the PRC government to steal our intellectual property and our personally identifiable information (PII) through computer intrusions. During the past year, we charged hackers working for the People’s Liberation Army with the 2017 Equifax intrusion and others associated with the Ministry of State Security (MSS) in relation to global computer intrusion campaigns targeting biomedical companies conducting COVID-19-related research, engineering firms, and software makers. One such MSS case resulted in the arrest of two conspirators in Malaysia. Two of these cases highlighted China’s development into a safe harbor for criminal hackers who also work for the PRC. The Department disrupted these cyber threats in coordination with the private sector, using legal process to seize control of hacking infrastructure while the private sector removed other infrastructure from their platforms.
In May, the FBI, in conjunction with the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, also issued a public announcement to raise awareness of the threat to COVID-19 research by PRC-affiliated cyber actors and offer advice on better protecting that research from thefts.
Counter malign foreign influence
The Department has used the Foreign Agents Registration Act (“FARA”), which requires those acting to influence public policy and opinion on behalf of a foreign individual or entity, to improve transparency and expose China’s foreign influence efforts. Over the past year, the Department opened a record number of FARA investigations overall and doubled the number of new registrants and new foreign principals registering annually as of 2016. That includes obtaining a record number of registrations from Chinese media companies. The Department also notified a registered Chinese media company that its filings were deficient because they failed to fully disclose its activity in the United States and failed to properly label its informational materials. The media entity remedied those deficiencies shortly thereafter.
Through its outreach efforts to universities, the Department has highlighted the need to protect foreign students studying in the United States from coercive efforts by the Communist Party to censor the freedom of thought and expression that all students here should enjoy.
In late 2019, the FBI’s Foreign Influence Task Force formally established a new unit devoted specifically to understanding and defeating the malign foreign influence threat from the Chinese government and its proxies.
Counter foreign intelligence activities
The Department has achieved a number of successes in the last year in countering China’s foreign intelligence activities. China has been targeting former members of the U.S. intelligence community for recruitment, and the Department has been holding accountable individuals who succumb to their efforts. In November 2019, a former CIA case officer was sentenced to 19 years in prison for conspiring to deliver national defense information to the PRC. In August 2020, another former CIA officer who had been tasked by the PRC was arrested on the same charge — the fourth former intelligence officer charged in the last three years for similar conduct.
The Department is particularly focused on disrupting the PRC government from using career networking and social media sites to target Americans, as well as holding those accountable who hide behind fake profiles to co-opt individuals on behalf of the PRC. As one part of this effort, the FBI, in partnership with the National Counterintelligence and Security Center, created an educational film, "The Nevernight Connection," which was released online in September 2020 to educate the public about the Chinese intelligence services’ use of social media to spot and recruit persons of interest, especially current or former security clearance holders.
In March 2020, Xuehua (Edward) Peng was sentenced to 48 months in prison, and ordered to pay a $30,000 fine, for acting as an agent of the PRC’s Ministry of State Security (MSS) in connection with a scheme to conduct pickups known as “dead drops” and transport Secure Digital cards containing classified information from a source in the United States to the MSS operatives in China.
In October 2020, Jun Wei Yeo was sentenced to 14 months in prison for acting within the United States as an agent of the MSS recruiting Americans, including U.S. military and government employees with high-level clearances. Yeo concealed his MSS affiliation from his American targets and used career networking sites and a false consulting firm to lure them to write papers which he ultimately passed to his MSS handlers.
In October 2020, eight defendants were charged with conspiring to act in the United States as illegal agents of the PRC, six of whom also face related charges of conspiring to commit interstate and international stalking. According to the complaint, the defendants participated in an international campaign to threaten, harass, surveil and intimidate a resident of New Jersey and his family in order to force them to return to the PRC as part of an international effort by the PRC government known as "Operation Fox Hunt" and "Operation Skynet."
In furtherance of the operation, the PRC government targets Chinese individuals living in foreign countries that the PRC government alleges have committed crimes under PRC law and seeks to repatriate them to the PRC to face charges, rather than rely upon proper forms of international law enforcement cooperation.
Foreign investment reviews and telecommunications security
Beyond criminal enforcement, the Department worked to protect our national assets from national security risks posed by entities, subject to PRC influence, that seek to invest in U.S. companies or integrate into our supply chains.
In April, the Department assumed the permanent chair of the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector, established by the President through Executive Order (EO), in 2020. This organization, also known as "Team Telecom," is an interagency group that reviews telecommunications, submarine cable landing, wireless, broadcast license, and other applications referred by the Federal Communications Commission (FCC), to identify and address risks to national security and law enforcement. In the first 90 days after the Executive Order, the Department led Team Telecom to resolve more than half of the cases then pending review.
Team Telecom recommended that the FCC revoke and terminate the international telecommunications licenses held by the U.S. subsidiary of a PRC state-owned telecommunications company, China Telecom, the first revocation ever recommended by Team Telecom on national security grounds. Team Telecom also recommended that the FCC partially deny a submarine cable application, to the extent it sought a direct connection between the United States and Hong Kong.
Following the President’s 2019 Executive Order on Securing the Information and Communications Technology and Services Supply Chain, the Department has worked with the Commerce Department to develop regulations implementing the EO and has identified vulnerable areas of critical infrastructure that are ripe for investigation under the EO.
The Department also worked to implement the Foreign Investment Risk Review Modernization Act (FIRRMA), which improved the authorities of the Committee on Foreign Investment in the United States (CFIUS). During the previous year, the Department co-led a record number of significant CFIUS matters, on an annualized basis, including the investigation of the acquisition of a U.S. hotel management software company by a Chinese company, which the President prohibited, for just the sixth time in CFIUS history. Under FIRRMA, the FBI continued to provide analytical assistance to support CFIUS’s decision-making and identify high-risk non-notified transactions.
With its increased resources, NSD has played a significant role in CFIUS enforcement, leading the Committee to assess just the second penalty in its history, for failing to secure sensitive personal data in violation of a 2018 interim CFIUS order. NSD also dedicated personnel to identify transactions of concern that were not voluntarily filed with CFIUS and developed a program to identify bankruptcy cases that could implicate national security concerns. The bankruptcy program helps to protect U.S. assets from predatory acquisitions, including PRC acquisitions that could impact our national security, which is particularly important in light of the economic impact of COVID-19.
Education and outreach
The success of the China Initiative is not measured by criminal cases and administrative actions alone, however. Outreach to businesses and academia is critical to helping America’s national assets better protect themselves. For that reason, the Department disseminated outreach presentations for use by U.S. Attorneys in their Districts, which have been deployed at various events. The FBI sustained its engagement with the private sector through various programs, and it developed and disseminated an innovative Academia Field Guide to support focused outreach by its academic outreach coordinators in all 56 field offices. In the coming year, the Department, through the FBI and U.S. Attorneys’ Offices, will continue to expand our partnerships outside the federal government, because the support of the American people is critical to our success. All of our efforts are on their behalf.
The Attorney General commends the professionals throughout the Department, including those who work at Main Justice, the FBI, and U.S. Attorney’s Offices around the country, who are committed to meeting the goals of the China Initiative and encourage them to redouble their efforts in the upcoming year.
All defendants, in the cases mentioned herein, are presumed innocent until proven guilty beyond a reasonable doubt.
Medicare Advantage Provider to Pay $6.3 Million to Settle False Claims Act AllegationsRead the Press Release
Kaiser Foundation Health Plan of Washington, formerly known as Group Health Cooperative (GHC), agreed to pay $6,375,000 to resolve allegations that it submitted invalid diagnoses to Medicare for Medicare Advantage beneficiaries and received inflated payments from Medicare as a result, the Justice Department announced today. Kaiser Foundation Health Plan is headquartered in Oakland, California.
“The United States relies on Medicare Advantage Organizations to submit accurate diagnosis data to Medicare to ensure that the compensation they receive is appropriate,” said Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “We will continue to pursue those who undermine the integrity of the Medicare program and the data it relies upon.”
“When insurance providers take advantage of Medicare and falsely claim that they are entitled to repayment for unsupported diagnoses, American taxpayers suffer in the form of higher costs,” stated U.S. Attorney James Kennedy, Jr. of the Western District of New York. “We will continue to work to ensure that these programs are not defrauded and that monies are not paid for unwarranted claims.”
Under the Medicare Advantage program, also known as Medicare Part C, Medicare beneficiaries may opt to obtain health care coverage through private insurance plans that are owned and operated by private insurers known as Medicare Advantage Organizations (MAOs). Medicare pays MAOs a fixed, monthly amount to provide health care coverage to Medicare beneficiaries who enroll in their plans. Medicare adjusts these monthly payments to reflect the health status of each beneficiary. In general, Medicare pays MAOs more for sicker beneficiaries and less for healthier ones.
MAOs report beneficiary diagnoses and other information to Medicare on an annual basis and Medicare uses this information to adjust the payments that the MAO receives from Medicare. The settlement resolves allegations that GHC knowingly submitted diagnoses that were not supported by the beneficiaries’ medical records to inflate the payments that it received from Medicare.
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Teresa Ross, a former employee of Group Health. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Ms. Ross will receive approximately $1,500,000.
The government’s intervention in this matter illustrates its 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 was handled by the Civil Division’s Commercial Litigation Branch, the United States Attorney’s Office for the Western District of New York, and the Department of Health and Human Services, Office of Inspector General.
The case is docketed as United States ex rel. Teresa Ross v. Group Health Cooperative, Independent Health Association, Independent Health Corporation, DxID LLC, Elizabeth Gaffney, and John Haughton, M.D., No. 12-CV-0299S (W.D.N.Y.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Justice Department Settles with the Commissioner of the Revenue for Caroline County, Virginia to Resolve Disability Discrimination ComplaintRead the Press Release
The Justice Department today announced that it reached an agreement with the Commissioner of the Revenue for Caroline County, Virginia, in his official capacity (the “Commissioner”) to resolve the department’s lawsuit alleging disability discrimination in violation of Title I of the Americans with Disabilities Act (ADA).
The department’s complaint alleges that a former Caroline County Commissioner of the Revenue terminated an employee with a respiratory impairment on the basis of her disability, after almost 24 years of service. According to the complaint, after a period of medical leave, the employee requested to return to work with reasonable accommodations for her speaking and walking restrictions. The complaint alleges that the Commissioner denied the employee’s request and required her to return to work in full-duty capacity; it then fired her when she could not do so.
Title I of the ADA prohibits covered employers from discriminating against qualified individuals on the basis of disability in employment. Discrimination includes failing to provide reasonable accommodations if the accommodations do not pose an undue hardship to the employer. An informal, interactive process may be needed to identify appropriate reasonable accommodations. Reasonable accommodations include acquiring equipment or devices, among other things.
“Reasonable accommodations enable many people with disabilities to work and, as a result, achieve economic self-sufficiency and full participation in the workforce,” said Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division. “The U.S. Department of Justice is committed to ensuring that people with disabilities have an equal opportunity to become and remain employed, so that they can pursue their goals, contribute to their communities, and earn a living.”
Under the agreement, the Commissioner, among other things, will pay $75,000 in back pay and compensatory damages to the former employee. The Commissioner and the Caroline County Human Resources Manager also will attend a presentation on Title I of the ADA.
This matter was based on a referral from the Equal Employment Opportunity Commission’s Norfolk Local Office.
This year marks the 30th Anniversary of the ADA. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. Please visit the department’s ADA Anniversary webpage to learn more about the ADA’s history and impact.
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 Justice Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Settles with School Board to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it reached a settlement with the School Board of Palm Beach County, Florida (the District). The settlement resolves claims that the District discriminated against work-authorized non-U.S. citizen employees by asking them to provide specific and unnecessary documentation showing their legal right to work, because of their immigration status, in violation of the Immigration and Nationality Act (INA).
“Employers must not discriminate against work-authorized non-U.S. citizens due to mistaken assumptions about their immigration status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We applaud the School District of Palm Beach County for working with the Department of Justice to ensure proper implementation of its non-discrimination policy.”
Based on its investigation, the department concluded that the School District requested unnecessary and specific documents from non-U.S. citizens, such as requesting some work-authorized workers to show specific documents in violation of the INA. This included requests for certain individuals to show their Permanent Resident Cards (sometimes known as “green cards”) or Employment Authorization Documents, even though those workers had already shown other documents that proved their work authorization, such as an ID and unrestricted Social Security card.
The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship, immigration status or national origin. Instead, in the INA, Congress determined that 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 does, however, permit employers to reject non-genuine looking documents.
Under the terms of the settlement, the District will pay to the United States a civil penalty of $90,000, pay up to $100,000 in back pay to people who lost work due to the unlawful document requests, and train district employees on their legal obligations.
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, can file a charge. The public also can 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.
The Civil Rights Division wants to hear about civil rights violations. Members of the public can report possible civil rights violations through the Civil Rights Division’s reporting portal.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
The Civil Rights Division’s Protecting U.S. Workers Initiative, started in 2017 in IER, targets, investigates, and (where appropriate) brings enforcement actions against employers that intentionally discriminate against U.S. workers due to citizenship-status discrimination based on a preference for temporary visa workers. IER has reached numerous settlements under the Protecting U.S. Workers Initiative, and employers have distributed or agreed to pay a combined total of more than $1.2 million in back pay to affected U.S. workers and civil penalties to the United States. These settlements involve employers that discriminated in their use of the H-1B, H-2A, and H-2B visa programs.
El Departamento de Justicia Llega a un Acuerdo con una Junta Escolar que Resuelve Acusaciones de Discriminación Relacionada con la InmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con la Junta Escolar del Condado de Palm Beach, Florida (el Distrito). El acuerdo resuelve acusaciones de que el Distrito había discriminado a empleados no ciudadanos de los EE. UU. que tenían autorización para trabajar en los EE. UU. al pedir que presentasen documentos específicos e innecesarios para demostrar su derecho legal a trabajar, debido a su estatus migratorio, en contra de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés).
«Los empleadores no deben discriminar a personas no ciudadanas de los EE. UU. que cuentan con autorización para trabajar a causa de sus supuestos erróneos acerca del estatus migratorio de tales personas», afirmó Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «Felicitamos a la Junta Escolar del Condado de Palm Beach por su colaboración con el Departamento de Justicia para garantizar la buena implementación de su política antidiscriminatoria».
Con base en su investigación, el Departamento concluyó que la Junta Escolar había solicitado documentos esepcíficos e innecesarios a no ciudadanos de los EE. UU., como, por ejemplo, pedir a trabajadores con autorización para trabajar que presentasen documentos específicos, en contra de la INA. Esto incluye pedir que ciertos individuos presentasen sus Tarjetas de Residencia Permanente (a veces conocidas como «tarjetas verdes» o «micas») o Documentos de Autorización para Trabajar, aunque esos trabajadores ya habían presentado otros documentos que demostraron su autorización para trabajar, tales como carnéts de identidad y tarjetas de seguro social sin restricciones.
La disposición antidiscriminatoria de la INA prohíbe que los empleadores pidan documentos adicionales o diferentes a los que sean necesarios para demostrar la autorización para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen. A su vez, en la INA, el Congreso determinó que 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. No obstante, la INA sí permite que los empleadores rechacen documentos que no parecen ser genuinos.
Conforme los términos del acuerdo, el Distrito pagará una sanción civil a los Estados Unidos que asciende a 90.000 $, pagará hasta 100.000 $ por concepto de pagos retroactivos a las personas que perdieron trabajo a causa de las solicitudes ilícitas de documentos y capacitará a los empleados del Distrito en cuanto a sus deberes legales.
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 migratorio o de ciudadanía, o bien por su nacionalidad de origen, en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (p. ej. el Formulario I-9 e E-Verify) o sometidos 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 la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
La División de Derechos Civiles quiere enterarse de más vulneraciones de derechos civiles. Miembros del público pueden informarnos de posibles vulneraciones de derechos civiles mediante el portal de declaraciones de la División de Derechos Civiles.
Aquellos aspirantes o empleados que creen haber sido sometidos a: discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; discriminación en el proceso de la verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) con base en su ciudadanía, estatus migratorio o nacionalidad de origen; o represalias pueden presentar una denuncia o llamar a la línea directa de la IER para trabajadores para pedir ayuda.
La Iniciativa para la Protección de Trabajadores en Este País, de la División de Derechos Civiles, se lanzó en el 2017 en la IER y señala,investiga y (donde proceda) aplica medidas de cumplimiento a empleadores que intencionalmente discriminen a trabajadores en este país por motivos de su estatus de ciudadanía para dar preferencia a trabajadores temporales de visa. La IER ha llegado a numerosos acuerdos bajo la Iniciativa para la Protección de Trabajadores en Este País y empleadores han distribuido o acordado distribuir un total combinado de más de 1,2 millónes de dólares por concepto de pagos retroactivos a trabajadores afectadso en este país y sanciones civiles a los Estados Unidos. Estos acuerdos implican empleadores que fueron discriminatorios en su uso de los programas de visa de H-1B, H-2A y H-2B.
New York Businessman Pleads Guilty to Tax EvasionRead the Press Release
A Woodsburgh, New York, businessman pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, Irwin Jacobs, 68, was a 50 percent owner of J K Apparel Sales Co. Inc. and S&I Sales Co. Inc., which collectively operated out of New York, New York. Jacobs also held an ownership interest in Prestige Global Co. Ltd., a Taiwanese company. J K Apparel was the exclusive representative for Prestige Global in the United States.
Between 2006 and 2014, Jacobs received income from these businesses that he did not report to the IRS on his tax returns. Jacobs directed Prestige Global to wire more than $4.4 million to third parties to pay personal expenses for himself and members of his family, including travel, non-business-related legal bills, expenses associated with his personal residence, and personal credit card bills. During the years 2010 through 2014, Jacobs also used an S&I Sales credit card to pay more than $200,000 in personal expenses, including leisure travel for himself and his family, medical and dental bills, non-business legal fees, and household expenses.
Jacobs admitted that his failure to report this additional income caused a tax loss to the IRS of more than $1.3 million.
U.S. District Judge Pamela K. Chen set sentencing for April 7, 2021. Jacobs faces a maximum sentence of five years in prison, as well as supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Melissa Siskind and Kathryn Sparks of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.