District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Former Foreign Exchange Trader Sentenced to Prison for Price Fixing and Bid RiggingRead the Press Release
Akshay Aiyer, a former currency trader at a major multinational bank, was sentenced to serve eight months in jail and ordered to pay a $150,000 criminal fine for his participation in an antitrust conspiracy to manipulate prices for emerging market currencies in the global foreign currency exchange (FX) market, the Justice Department announced today.
On Nov. 20, 2019, Aiyer was convicted after a three-week jury trial in the U.S. District Court for the Southern District of New York for conspiring to fix prices and rig bids in Central and Eastern European, Middle Eastern, and African (CEEMEA) currencies, which were generally traded against the U.S. dollar and the euro, from at least October 2010 through at least January 2013.
“Today’s sentence, including prison time, serves as yet another reminder of the consequences for those who cheat and compromise the integrity of the global financial markets,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This case, which the Antitrust Division litigated, is another step forward in the department’s ongoing commitment to prosecute and deter cartels in the financial markets that harm American consumers.”
“Today’s sentencing demonstrates the gravity of the defendant’s egregious behavior to manipulate emerging market currencies, as well as the importance of bringing him to justice,” said FDIC Inspector General Jay N. Lerner. “This extensive conspiracy represents a serious breach of trust with both his clients and the major multinational bank for whom he worked. We appreciate the cooperation of our law enforcement partners, and we remain committed to investigate such unscrupulous crimes that impact the integrity of our banking sector.”
According to evidence presented at trial, the defendant engaged in near-daily communications with his co-conspirators by phone, text, and through an exclusive electronic chat room to coordinate their trades of the CEEMEA currencies in the FX spot market. The jury heard evidence that the defendant and his co-conspirators manipulated exchange rates by agreeing to withhold bids or offers to avoid moving the exchange rate in a direction adverse to open positions held by co-conspirators and by coordinating their trading to manipulate the rates in an effort to increase their profits. By agreeing not to buy or sell at certain times, the conspiring traders protected each other’s trading positions by withholding supply of or demand for currency and suppressing competition in the FX spot market for emerging market currencies. They also heard evidence that the defendant and his co-conspirators took steps to conceal their actions by, among other steps, using code names, communicating on personal cell phones during work hours, and meeting in person to discuss particular customers and trading strategies.
The Antitrust Division has charged five companies and six individuals in its investigation of collusion in the FX spot market. On May 20, 2015, four major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC, and The Royal Bank of Scotland plc – pleaded guilty and agreed to collectively pay more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy in the euro-U.S. dollar FX spot market. On Jan. 25, 2018, BNP Paribas USA, Inc. pleaded guilty and agreed to pay a $90 million criminal fine for its participation in an antitrust conspiracy involving emerging market FX prices. On Jan. 4, 2017 and Jan. 12, 2017, plea agreements were announced for two former traders in connection with an antitrust conspiracy involving emerging market FX prices.
The sentence announced today is a result of an ongoing investigation into collusion in the financial markets, which is being conducted by the Antitrust Division’s New York Office, FDIC Office of Inspector General, and the FBI’s Washington Field Office. The Criminal Division’s Fraud Section also provided substantial assistance in this matter. Anyone with information on price fixing, bid rigging, or other anticompetitive conduct in the financial markets should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.html.
Department of Justice and Partner Departments and Agencies Conduct Coordinated Actions to Disrupt and Deter Iranian Malicious Cyber Activities Targeting the United States and the Broader International CommunityRead the Press Release
Starting on Sept. 14, 2020 and continuing through today, the Department of Justice, the Federal Bureau of Investigation, the Department of Homeland Security, and the Department of the Treasury have engaged in a coordinated effort to disrupt and deter malicious cyber activities by actors associated with the Islamic Republic of Iran’s (Iran) Ministry of Intelligence and Security (MOIS) and Islamic Revolutionary Guard Corps (IRGC), as well as other Iran-based individuals. These malicious cyber actors targeted victims in Australia, Europe, the Middle East, Southeast Asia, and the United States.
“This week’s unsealing of indictments and other disruptive actions serves as another reminder of the breadth and depth of Iranian malicious cyber activities targeting not only the United States, but countries all over the world,” said Assistant Attorney General for National Security John C. Demers. “Whether directing such hacking activities, or by offering a safe haven for Iranian criminal hackers, Iran is complicit in the targeting of innocent victims worldwide and is deepening its status as a rogue state. By contrast, the Department of Justice and its U.S. government partners stand with such victims, regardless of their location, and we will continue our cooperative efforts domestically and internationally to disrupt Iranian hacking activities.”
“The FBI is using its unique partnerships and world-class capabilities to hold Iranian cyber actors publicly accountable for their actions,” said Executive Assistant Director Terry Wade of the FBI's Criminal, Cyber, Response, and Services Branch. “Those malicious activities, as once again outlined this week, highlight Iran’s persistent use of cyber methods to harm the citizens of the United States and its allies. No cyber actor should think they can compromise U.S. networks, steal our intellectual property, or hold our critical infrastructure at risk without incurring risk themselves. The FBI will continue to work with our partners to protect U.S. interests and to impose consequences on those cyber actors working on behalf of the Government of Iran in furtherance of their nefarious goals.”
On Sept. 14, 2020, the FBI and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency jointly published a Cybersecurity Advisory regarding tactics, techniques, and procedures (TTPs) of an Iran-based malicious cyber actor targeting several U.S. federal agencies and other U.S.-based networks.
On Sept. 15, 2020, in the District of Massachusetts, the Department announced the unsealing of a three-count indictment charging two hackers in relation to their intrusions into, and defacements of, websites hosted in the United States. The hackers, Behzad Mohammadzadeh, aka “Mrb3hz4d,” a citizen and resident of the Iran, and Marwan Abusrour, aka “Mrwn007,” a stateless national under the jurisdiction of the Palestinian Authority, conspired to and subsequently damaged computers in perceived retaliation for the January 2, 2020 U.S. military strike that killed Qasem Soleimani, the head of the IRGC-Quds Force, a U.S.-designated Foreign Terrorist Organization. These defacements were a subset of the over 1,400 defacements around the world for which the defendants claimed responsibility between in or around June 2016 and July 2020.
On Sept. 16, 2020, in the District of New Jersey, the Department announced the unsealing of a 10-count indictment charging two hackers, who sometimes operated under the using the pseudonym “Sejeal,” in relation to coordinated cyber intrusions and hacking campaigns targeted computer systems in Europe, the Middle East, and the United States. The defendants, Hooman Heidarian, aka “neo,” and Medhi Farhadi, aka “Mehdi Mahdavi,” both Iranian nationals residing in Iran, stole hundreds of terabytes of data, which typically included confidential communications pertaining to national security, foreign policy intelligence, non-military nuclear information, aerospace data, human rights activist information, victim financial information and personally identifiable information, and intellectual property, including unpublished scientific research. In some instances, the defendants’ hacks were politically motivated or at the behest of the government of Iran, including instances where they obtained information regarding dissidents, human rights activists, and opposition leaders. In other instances, the defendants sold the hacked data and information on the black market for private financial gain.
On Sept. 17, 2020, in the Eastern District of Virginia, the Department announced the unsealing of a nine-count indictment charging three hackers in relation to an approximately four-year campaign to steal and attempt to steal critical information related to aerospace and satellite technology and resources, including sensitive commercial information, intellectual property, and personal data. The defendants, Said Pourkarim Arabi, Mohammad Reza Espargham, and Mohammad Bayati, all Iranian nationals residing in Iran, conducted their activity at the direction of the IRGC, of which Arabi was a member. The defendants primarily accomplished their intrusions through socially engineered spearphishing campaigns, using at least one target list of over 1,800 individuals in Australia, Israel, Singapore, the United States, and the United Kingdom. Upon successfully enticing a victim to click on a link in such a spearphishing e-mail, a member of the conspiracy would deploy malware that allowed the conspirators to gain access credentials, escalate their privileges, maintain their unauthorized access to victim networks, and ultimately steal the sought-after data. To accompany the unsealing of this indictment, and to aid potential targets in the identification of malicious activity, the FBI released a Private Industry Notification (PIN) that identified the conspiracy’s TTPs and indicators of compromise.
Also on Sept. 17, 2020, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions against 45 individuals and one front company associated with the MOIS who comprised the cyber threat group known publicly as “Advanced Persistent Threat 39” (APT39), “Chafer,” “Remexi,” “Cadelspy,” or “ITG07.” According to OFAC, masked behind its front company, Rana Intelligence Computing Company (Rana), the MOIS employed a years-long malware campaign that targeted Iran’s own citizens, the government networks of Iran’s neighboring countries, and U.S.-based travel services companies. Concurrent with OFAC’s action, and following a long-term FBI investigation, the FBI released technical indicators about Rana’s malware in an FBI FLASH alert. This alert provides information to assist organizations and individuals in determining whether they were targeted by Rana.
The above disruptive actions targeting Iranian malicious cyber activities were the result of investigations conducted by the FBI’s Boston, Newark, and Washington Field Offices and Cyber Division, the United States Attorney’s Offices for the Eastern District of Virginia, District of Massachusetts, and District of New Jersey, and the National Security Division’s Counterintelligence and Export Control Section. Several of the disruptive actions were the result of the close partnership between these Department of Justice components and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency and Department of the Treasury’s OFAC, and coordination through the National Cyber Investigative Joint Task Force.
The details contained in the above-described charging document are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Blue Bell Creameries Ordered to Pay $17.25 Million in Criminal Penalties in Connection with 2015 Listeria ContaminationRead the Press Release
A federal court in Texas sentenced ice cream manufacturer Blue Bell Creameries L.P. to pay $17.25 million in criminal penalties for shipments of contaminated products linked to a 2015 listeriosis outbreak, the Justice Department announced today.
Blue Bell pleaded guilty in May 2020 to two misdemeanor counts of distributing adulterated ice cream products. The sentence, imposed by U.S. District Judge Robert Pitman in Austin, Texas, was consistent with the terms of a plea agreement previously filed in the case. The $17.25 million fine and forfeiture amount is the largest-ever criminal penalty following a conviction in a food safety case.
“American consumers must be able to trust that the foods they purchase are safe to eat,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The sentence imposed today sends a clear message to food manufacturers that the Department of Justice will take appropriate actions when contaminated food products endanger consumers.”
“The health of American consumers and the safety of our food are too important to be thwarted by the criminal acts of any individual or company,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration. “Americans expect and deserve the highest standards of food safety and integrity. We will continue to pursue and bring to justice those who put the public health at risk by distributing contaminated foods in the U.S. marketplace.”
“The results of this investigation reflect the determination of the Defense Criminal Investigative Service to hold companies that sell food products to the military accountable and ensure they comply with food safety laws,” said Michael Mentavlos, Special Agent-in-Charge of the DCIS Southwest Field Office. “The health and safety of our service members and their dependents is of paramount importance.”
The plea agreement and criminal information filed against Blue Bell allege that the company distributed ice cream products that were manufactured under insanitary conditions and contaminated with Listeria monocytogenes, in violation of the Food, Drug and Cosmetic Act. According to the plea agreement, Texas state officials notified Blue Bell in February 2015 that samples of two ice cream products from the company’s Brenham, Texas factory tested positive for Listeria monocytogenes, a dangerous pathogen that can lead to serious illness or death in vulnerable populations such as pregnant women, newborns, the elderly, and those with compromised immune systems. Blue Bell directed its delivery route drivers to remove remaining stock of the two products from store shelves, but the company did not recall the products or issue any formal communication to inform customers about the potential Listeria contamination. Two weeks after receiving notification of the first positive Listeria tests, Texas state officials informed Blue Bell that additional state-led testing confirmed Listeria in a third product. Blue Bell again chose not to issue any formal notification to customers regarding the positive tests. Blue Bell’s customers included military installations.
In March 2015, tests conducted by the Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) linked the strain of Listeria in one of the Blue Bell ice cream products to a strain that sickened five patients at a Kansas hospital with listeriosis, the severe illness caused by ingestion of Listeria-contaminated food. The FDA, CDC, and Blue Bell all issued public recall notifications on March 13, 2015. Subsequent tests confirmed Listeria contamination in a product made at another Blue Bell facility in Broken Arrow, Oklahoma, which led to a second recall announcement on March 23, 2015.
According to the plea agreement with the company, FDA inspections in March and April 2015 revealed sanitation issues at the Brenham and Broken Arrow facilities, including problems with the hot water supply needed to properly clean equipment and deteriorating factory conditions that could lead to insanitary water dripping into product mix during the manufacturing process. Blue Bell temporarily closed all of its plants in late April 2015 to clean and update the facilities. Since re-opening its facilities in late 2015, Blue Bell has taken significant steps to enhance sanitation processes and enact a program to test products for Listeria prior to shipment.
Trial Attorneys Patrick Hearn and Matt Lash of the Civil Division’s Consumer Protection Branch prosecuted the case with assistance from Shannon Singleton and Michael Varrone of the FDA’s Office of Chief Counsel. The criminal investigation was conducted by the FDA’s Office of Criminal Investigations and the Department of Defense Criminal Investigative Service.
For more information about the enforcement efforts of the Consumer Protection Branch visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Seven International Cyber Defendants, Including “Apt41” Actors, Charged in Connection with Computer Intrusion Campaigns Against More Than 100 Victims GloballyRead the Press Release
In August 2019 and August 2020, a federal grand jury in Washington, D.C., returned two separate indictments charging five computer hackers, all of whom were residents and nationals of the People’s Republic of China (PRC), with computer intrusions affecting over 100 victim companies in the United States and abroad, including software development companies, computer hardware manufacturers, telecommunications providers, social media companies, video game companies, non-profit organizations, universities, think tanks, and foreign governments, as well as pro-democracy politicians and activists in Hong Kong.
The intrusions, which security researchers have tracked using the threat labels “APT41,” “Barium,” “Winnti,” “Wicked Panda,” and “Wicked Spider,” facilitated the theft of source code, software code signing certificates, customer account data, and valuable business information. These intrusions also facilitated the defendants’ other criminal schemes, including ransomware and “crypto-jacking” schemes, the latter of which refers to the group’s unauthorized use of victim computers to “mine” cryptocurrency.
Also in August 2020, the same federal grand jury returned a third indictment charging two Malaysian businessmen who conspired with two of the Chinese hackers to profit from computer intrusions targeting the video game industry in the United States and abroad. Shortly thereafter, the U.S. District Court for the District of Columbia issued arrest warrants for the two businessmen. On Sept. 14, 2020, pursuant to a provisional arrest request from the United States with a view to their extradition, Malaysian authorities arrested them in Sitiawan. The department appreciates the significant cooperation and assistance provided by the Government of Malaysia, including the Attorney General’s Chambers of Malaysia and the Royal Malaysia Police.
In addition to arrest warrants for all of the charged defendants, in September 2020, the U.S. District Court for the District of Columbia issued seizure warrants that resulted in the recent seizure of hundreds of accounts, servers, domain names, and command-and-control (C2”) “dead drop” web pages used by the defendants to conduct their computer intrusion offenses. The FBI executed the warrants in coordination with other actions by several private-sector companies, which included disabling numerous accounts for violations of the companies’ terms of service. In addition, in partnership with the department, Microsoft developed and implemented technical measures to block this threat actor from accessing victims’ computer systems. The actions by Microsoft were a significant part of the overall effort to deny the defendants continued access to hacking infrastructure, tools, accounts, and command and control domain names. In coordination with today’s announcement, the FBI has also released a Liaison Alert System (FLASH) report that contains critical, relevant technical information collected by the FBI for use by specific private-sector partners.
“The department of Justice has used every tool available to disrupt the illegal computer intrusions and cyberattacks by these Chinese citizens,” said Deputy Attorney General Jeffrey A. Rosen. “Regrettably, the Chinese communist party has chosen a different path of making China safe for cybercriminals so long as they attack computers outside China and steal intellectual property helpful to China.”
“Today’s charges, the related arrests, seizures of malware and other infrastructure used to conduct intrusions, and coordinated private sector protective actions reveal yet again the department’s determination to use all of the tools at its disposal and to collaborate with the private sector and nations who support the rule of law in cyberspace,” said Assistant Attorney General John C. Demers. “This is the only way to neutralize malicious nation state cyber activity.”
“Today’s announcement demonstrates the ramifications faced by the hackers in China but it is also a reminder to those who continue to deploy malicious cyber tactics that we will utilize every tool we have to administer justice,” said FBI Deputy Director David Bowdich. “The arrests in Malaysia are a direct result of partnership, cooperation and collaboration. As the cyber threat continues to evolve larger than any one agency can address, the FBI remains committed to being an indispensable partner to our federal, international and private sector partners to stop rampant cyber crime and hold those carrying out these kind of actions accountable.”
“The scope and sophistication of the crimes in these unsealed indictments is unprecedented. The alleged criminal scheme used actors in China and Malaysia to illegally hack, intrude and steal information from victims worldwide,” said Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia. “As set forth in the charging documents, some of these criminal actors believed their association with the PRC provided them free license to hack and steal across the globe. This scheme also contained a new and troubling cyber-criminal component – the targeting and utilization of gaming platforms to both defraud video game companies and launder illicit proceeds.”
“The actions announced today reflect a years-long commitment by the FBI Washington Field Office to pursue the perpetrators of the computer intrusion campaigns described in the indictments, and to bring those perpetrators to justice,” said Acting Assistant Director in Charge James A. Dawson, FBI Washington Field Office. “This case demonstrates the FBI’s dedication to pursuing these criminals no matter where they are, and to whom they may be connected.”
The August 2019 indictment charged Zhang Haoran (张浩然), 35, and Tan Dailin (谭戴林), 35, with 25 counts of conspiracy, wire fraud, aggravated identity theft, money laundering, and violations of the Computer Fraud and Abuse Act (“CFAA”). The indictment charged Zhang and Tan with participating in a “Computer Hacking Conspiracy,” which targeted high-technology and similar organizations. The indictment also charged that, as an additional way to make money, Zhang and Tan participated in a “Video Game Conspiracy,” through which Zhang and Tan, together with others, sought to make money by hacking video game companies, obtaining and otherwise generating digital items of value (e.g., video game currency), and then selling such items for profit. In several instances, they used their unauthorized access to gaming company networks take action against other unrelated groups engaged in the same fraudulent generation of gaming artifacts, thereby attempting to eliminate the criminal competition.
One of the August 2020, indictments charged Jiang Lizhi (蒋立志), 35, Qian Chuan (钱川), 39, and Fu Qiang (付强), 37, with nine counts of racketeering conspiracy, conspiracy to violate the CFAA, substantive violations of the CFAA, access device fraud, identity theft, aggravated identity theft, and money laundering. The racketeering conspiracy pertained to the three defendants’ conducting the affairs of Chengdu 404 Network Technology (“Chengdu 404”), a PRC company, through a pattern of racketeering activity involving computer intrusion offenses affecting over 100 victim companies, organizations, and individuals in the United States and around the world, including in Australia, Brazil, Chile, Hong Kong, India, Indonesia, Japan, Malaysia, Pakistan, Singapore, South Korea, Taiwan, Thailand, and Vietnam. The defendants also compromised foreign government computer networks in India and Vietnam, and targeted, but did not compromise, government computer networks in the United Kingdom. In one notable instance, the defendants conducted a ransomware attack on the network of a non-profit organization dedicated to combating global poverty.
The defendants associated with Chengdu 404 employed sophisticated hacking techniques to gain and maintain access to victim computer networks. One example was the defendants’ use of “supply chain attacks,” in which the hackers compromised software providers and then modified the providers’ code to facilitate further intrusions against the software providers’ customers. Another example was the hackers’ use of C2 “dead drops,” which are seemingly legitimate web pages that the hackers created, but which were surreptitiously encoded instructions to their malware. However, they also employed publicly available exploits and tools, including the following common vulnerabilities and exposures (“CVE”): CVE-2019-19781, CVE-2019-11510, CVE-2019-16920, CVE-2019-16278, CVE-2019-1652/CVE-2019-1653, and CVE-2020-10189.
The second August 2020 indictment charged Wong Ong Hua, 46, and Ling Yang Ching, 32, both Malaysian nationals and residents, with 23 counts of racketeering, conspiracy, identity theft, aggravated identity theft, access device fraud, money laundering, violations of the CFAA, and falsely registering domain names. The indictment alleged that Wong and Ling conducted the affairs of Sea Gamer Mall, a Malaysian company founded by Wong, through a pattern of racketeering activity involving computer intrusion offenses targeting the video game industry in the United States, France, Japan, Singapore, and South Korea. The indictment alleged that Wong and Ling worked with various hackers, including Zhang and Tan, to profit from the hackers’ criminal computer intrusions at video game companies.
The indictment against Zhang and Tan charges the defendants with two counts of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; two counts of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; five counts of wire fraud, which carries a maximum sentence of 20 years in prison; nine counts of intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison; four counts of unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; two counts of aggravated identity theft, which carries a mandatory sentence of two years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison.
The indictment against Jiang, Qian, and Fu charges the defendants with one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; one count of intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison; one count of unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; one count of threatening to damage a protected computer, which carries a maximum sentence of five years in prison; one count of access device fraud, which carries a maximum sentence of 10 years in prison; one count of identity theft, which carries a maximum sentence of five years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison.
The indictment against Wong and Ling charges the defendants with one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison; one count of racketeering, which carries a maximum sentence of 20 years in prison; three counts of intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison; five counts of unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; five counts of furthering fraud by unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; two counts of access device fraud, which carries a maximum sentence of 10 years in prison; two counts of identity theft, which carries a maximum sentence of five years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; and three counts of money laundering, which carries a maximum sentence of 20 years in prison. The indictment also alleges false registration of domain names, which would increase the maximum sentence of imprisonment for money laundering to 27 years; the maximum sentence of imprisonment for unlawful access to a protected computer to 10 years instead of five years; the maximum sentence of imprisonment for intentional damage to a protected computer to 17 years instead of 10 years; and the mandatory sentence of imprisonment for aggravated identity theft to four years instead of two years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only; any sentencing's of the defendants will be determined by the assigned judge.
The investigation was conducted jointly by the U.S. Attorney’s Office for the District of Columbia, the National Security Division of the Department of Justice, and the FBI’s Washington Field Office. The FBI’s Cyber Division assisted in the investigation and, along with FBI’s Cyber Assistant Legal Attachés and Legal Attachés in countries around the world, provided essential support. Numerous victims cooperated and provided valuable assistance in the investigation.
The department is also grateful to Microsoft, including Microsoft’s Threat Intelligence Center (MSTIC) and Digital Crimes Unit (DCU), to Google, including its Threat Analysis Group (TAG), to Facebook, and to Verizon Media, including its Paranoids Advanced Cyber Threats Team, for the assistance they provided in this investigation.
Assistant U.S. Attorney Demian Ahn of the District of Columbia, Assistant U.S. Attorney Tejpal Chawla of the District of Columbia, and Trial Attorney Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.
The Justice Department’s Office of International Affairs provided critical assistance.
The details contained in the charging document are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Owner of Long Island Diner Pleads Guilty to Not Paying Employment TaxRead the Press Release
A diner owner pleaded guilty today to failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, Nikolaos Avgoustidis, the owner and operator of the Rocky Point Town House Diner, did not pay employment taxes for all of the diner’s employees. From 2011 to 2013, Avgoustidis paid certain employees in cash, without reporting it to the IRS, and further, without paying the social security and Medicare taxes that must be withheld from the employees’ wages. In total, Avgoustidis caused a tax loss to the IRS of approximately $130,000.
U.S. District Judge Gary R. Brown scheduled the sentencing for Jan. 15, 2021. At sentencing, Avgoustidis faces a maximum sentence of 5 years. He also faces a period of 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 Sean Green and Mark Kotila 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.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Northern District of Indiana. While not a designated Legend district, the U.S. Attorney’s Office for the Northern District of Indiana works closely with the U.S. Attorney’s Office for the Northern District of Illinois, which encompasses Chicago. Operation Legend launched in Chicago on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates. Similarly, Legend was also launched in the Southern District of Indiana, which includes Indianapolis, on Aug. 14, 2020.
United States vs. Darryl Ivery Jr.
“This case demonstrates my office’s commitment to partnering with our neighbors in Chicago to aggressively prosecute those who illegally supply guns to criminals in Indiana and Illinois,” said Thomas L. Kirsch II, U.S. Attorney for the Northern District of Indiana. “My office is committed to reducing gun violence, and the state line will not save criminals from federal investigations and prosecutions.”
Darryl Ivery Jr. was charged on Aug. 26, 2020, with making a material false statement in the acquisition of a firearm.
According to the charging document, during the course of an ATF investigation into straw purchasers, i.e. individuals who lie on ATF Form 4473 about their status as legal purchasers of firearms, Darry Ivery Jr. became a person of interest based on a large number of firearms he had purchased, some of which had been recovered by law enforcement.
It is alleged that between Jan. 7, 2019, and Aug. 10, 2020, Ivery purchased a minimum of 26 firearms from Federal Firearm Licensed (FFL) gun dealers in Indiana. Seven of the guns he purchased have been recovered by various law enforcement agencies, including six that were recovered in Chicago, Illinois, one of which was recovered at the scene of a shooting.
For each of the guns Ivery purchased, he answered, “Yes” on ATF Form 4473: “Are you the actual transferee/buyer of the firearm(s) listed on this form?”
When interviewed by ATF Special Agents, it is alleged that Ivery admitted that with the exception of one of the firearms that he purchased, all of the others were bought for individuals who resided in Chicago who asked him to buy firearms for them. They all paid Ivery in cash for every purchase he made.
Ivery purchased the following firearms:
01/07/2019
S & W
SD9VE
9mm
02/18/2020
Jimenez
IA
.380
02/18/2020
SCCY
CPX-1
9mm
03/03/2020
Jimenez
JA
9mm
03/03/2020
S & W
SD40
40
03/13/2020
Glock
27
40
03/13/2020
Glock
er
40
03/31/2020
S & W
M&P
40
04/19/2020
Glock
26
9mm
04/30/2020
Glock
43
9mm
04/30/2020
05/13/2020
Glock Century Arms
22
Micro Draco
40
7.62x.39
06/06/2020
Glock
17
9mm
06/10/2020
Glock
22
40
06/10/2020
Glock
48
9mm
06/10/2020
S & W
SD9VE
9mm
06/19/2020
Taurus
PT111 G2
9mm
06/19/2020
Taurus
PT111 G2
9mm
06/19/2020
HS Produkt
XD45
.45
07/06/2020
Glock
30
.45
07/07/2020
Glock
43x
9mm
07/13/2020
FN
509T
9mm
07/23/2020
Shadow
MR920
SSCO11797
07/23/2020
Springfield
XDM
.45
08/10/2020
Ruger
57
5.7x.28
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with more than 592 defendants charged with federal crimes.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Kansas Man Indicted on Federal Child Pornography ChargesRead the Press Release
A resident of Topeka, Kansas, has been indicted by a federal grand jury in the U.S. District Court for the District of Kansas on federal child pornography charges, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division announced today.
The three-count indictment charged Jeffrey Pierce with producing and possessing child pornography. Pierce is alleged to have solicited sexually explicit images and videos from minor victims.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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.
Federal Court Bars Florida Tax Preparation Businesses and Their Tax Return Preparers from Preparing Tax ReturnsRead the Press Release
The Justice Department announced today that a federal court in Orlando, Florida, permanently enjoined Advanced Tax Services Inc. and Genson Financial Group LLC from preparing federal tax returns for others and ordered the businesses to disgorge $710,191.55, jointly and severally, representing the ill-gotten gains that they received for the preparation of tax returns. The court also entered permanent injunctions and disgorgement judgments against defendants Lenorris Lamoute and Dosuld Pierre, whom the court found prepared tax returns for compensation at Advanced Tax Services. The order was entered on default because the defendants failed to defend against the government’s allegations.
The court found that the defendants prepared tax returns making false or fraudulent claims for the Earned Income Tax Credit, often based on fabricated business income and expenses, bogus or improperly claimed dependents, and false filing status. The court further determined that the defendants prepared returns reporting non-existent Schedule A businesses, false itemized deductions, false or fraudulent fuel tax credits, and bogus education expenses.
Previously, the court entered permanent injunctions against Marcgenson Marc, the owner of Advanced Tax Services and Genson Financial Group, as well as Tiana Character and Character’s business, Character Financial Solutions LLC, and Shirleen Thales, and ordered Marc to disgorge $710,191.55.
“The Tax Division will work with its IRS partners to shut down return preparers who claim improper or illegal deductions and credits for their customers” said Principal Deputy Assistant Attorney General Zuckerman of the Justice Department’s Tax Division. “Taxpayers should be vigilant so they do not file tax returns claiming false deductions.”
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Tax Division’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Quantadyn Corporation and Owner Settle False Claims Act Allegations of Bribery to Obtain Government Contracts for SimulatorsRead the Press Release
The Department of Justice announced today that QuantaDyn Corporation (QuantaDyn), headquartered in Ashburn, Virginia, has agreed to resolve civil claims arising from allegations that it engaged in a bribery scheme to steer government contracts for training simulators to the company, as part of a broader settlement that includes a guilty plea by the company. As part of the plea agreement, QuantaDyn has agreed to pay $37,757,713.91 in restitution, which also will resolve the company’s civil False Claims Act liability for the scheme. William T. Dunn Jr., the majority owner, President, and Chief Executive Officer of QuantaDyn, has separately paid $500,000 to resolve his personal False Claims Act liability.
“When government contractors pay bribes to military contracting officials to obtain contracts, they prevent both our military and the American taxpayers from receiving products that are procured fairly and objectively and at a reasonable price,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division. “Today’s settlement demonstrates our continuing commitment to protecting the integrity of the government’s procurement process and ensuring that is untainted by fraud and corruption.”
“I am proud that our team and our law-enforcement partners were able to obtain justice for the American taxpayer in this case. We will not tolerate fraud against important federal programs,” stated U.S. Attorney John F. Bash for the Western District of Texas.
“The integrity of GSA’s contracting is vital to good government,” said U.S. General Services Administration (GSA) Inspector General Carol Ochoa. “Our special agents have been tireless in investigating corruption, and we will continue to work with our law enforcement partners to vigorously prosecute it wherever we find it.”
Founded in 2000, QuantaDyn is a privately held software engineering firm specializing in developing training simulation systems for Department of Defense agencies, including the Air Force and the Air National Guard, both as a prime contractor and a subcontractor.
The civil settlement announced today, which was based on the company and Dunn’s ability to pay, resolves allegations that QuantaDyn, during the time period when Dunn was President, engaged in a bribery scheme to steer the award of government contracts for training simulators to QuantaDyn. The United States alleged that while Dunn was QuantaDyn’s President, the company formed a corrupt partnership with an Air Force contracting official who provided procurement-sensitive information to QuantaDyn during the pre- and post-award phases of the contract in exchange for bribes. The United States contended that, as a result of this scheme, QuantaDyn caused a prime contractor to submit false invoices to the United States.
Contemporaneous with the civil settlement, U.S. Attorney John F. Bash for the Western District of Texas announced that the United States and QuantaDyn have entered into a plea agreement to resolve criminal allegations related to the bribery scheme. On Jan. 15, 2020, the U.S. Attorney’s Office for the Western District of Texas unsealed indictments against QuantaDyn, the former Air Force contracting official, and other individuals. Under the plea agreement, QuantaDyn has agreed to plead guilty to conspiracy to commit wire fraud, serve a five-year term of probation and to take certain remedial measures, and pay $37,757,713.91 in restitution, a criminal penalty of $6,300,000, and forfeiture of $7,099,863.77.
This civil settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Western District of Texas; the GSA Office of Inspector General (OIG), Greater Southwest and Rocky Mountain Investigations Division; the Defense Criminal Investigative Service (DCIS), Southwest Field Office; the U.S. Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 3 in San Antonio; the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit (CID/MPFU), Southwestern Fraud Field Office; the Internal Revenue Service-Criminal Investigation (IRS-CI); and the Defense Contract Audit Agency (DCAA), Headquarters, Operations Investigative Support Division (OIS).
Except as admitted in the plea agreement, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the District of New Mexico. Operation Legend launched in Albuquerque on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Eugene Samuel Ouzts III
“This case illustrates the need for our persistence and vigilance in the pursuit of justice,” said U.S. Attorney John Anderson for the District of New Mexico. “The perpetrators of dangerous crimes in Albuquerque and across the country have shown that they will take advantage of any crack they perceive in the system. We cannot and will not let down our guard.”
Eugene Samuel Ouzts III was charged in federal court in New Mexico on Sept. 1, 2020, with possession with intent to distribute 100 grams and more of heroin; possession of a firearm in furtherance of drug trafficking; and being a felon in possession of a firearm.
According to the charging document, on Aug. 23, 2020, local law enforcement conducted a traffic stop of a vehicle allegedly connected to an aggravated assault. Ouzts was identified as the driver of the vehicle, and upon being stopped, admitted to law enforcement that there was a firearm in the vehicle and that he was a convicted felon. Ouzts’ vehicle was then impounded pending a search warrant.
On Aug. 30, during a search of Ouzts’ vehicle, law enforcement seized a loaded silver Taurus PT 145 Pro pistol with one cartridge in the chamber and three clear baggies containing more than 169 grams of heroin.
It is alleged that while Ouzts’ vehicle was impounded between Aug. 23 and Aug. 30, Ouzts attempted to break into his vehicle at the impound lot and attempted to bribe employees in an attempt to get into his vehicle to retrieve the illicit drugs and firearm.
Because of a previous felony conviction punishable by more than one year in prison, Ouzts is prohibited from possessing firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with more than 592 defendants charged with federal crimes.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis.
Justice Department Settles Race Discrimination Case Against a Florida City Securing $195,000 in Lost Wages and DamagesRead the Press Release
The Justice Department today announced that it has reached a settlement with the City of Venice, Florida, resolving its race discrimination lawsuit against the city.
The suit alleged the city violated Title VII of the Civil Rights Act of 1964 when it subjected James Williamson, a 30-year Black city employee, to a series of unwarranted disciplinary actions, including two unpaid suspensions and ultimately termination, because of his race. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex, and religion.
“It is both morally wrong and illegal to single out any employee for harsh and unwarranted discipline because of the employee’s race, and to subject individuals, like Mr. Williamson, to discharge because of race,” said Assistant Attorney General for the Civil Rights Division, Eric S. Dreiband. “In this free country, all workers have a right to work without suffering unjust and unlawful race discrimination. This settlement agreement reflects the Civil Rights Division’s continued commitment to vigorous enforcement of the Civil Rights Act’s prohibition against race discrimination by state and local governmental employers.”
According to the United States’ complaint filed today in the U.S. District Court for the Middle District of Florida, the City of Venice did not have legitimate, non-discriminatory reasons for treating Williamson far more harshly in imposing discipline than the city did toward his comparable white coworkers. According to the lawsuit, the city disciplined Williamson nine times, over a two-year period, including three separate reprimands in one day. These punishments were predicated on Williamson’s supposed violations of work rules, such as taking normal lunch breaks in public parks, that were never enforced against his white coworkers.
The city ultimately fired Williamson, the only Black employee working in the Parks Division of the city’s Public Works Department, without justification and after he had been subjected to prolonged use of racial slurs, including the n-word, directed towards him and in his presence, and to close scrutiny of, and finding fault with, his work without legitimate reasons.
Under the terms of the settlement agreement, the city will pay Williamson $195,000 for lost wages and compensatory damages. The settlement agreement also requires the city to develop and submit to the Justice Department for approval anti-discrimination policies and to provide its supervisors and managers with training on those policies and on the types of conduct in the workplace that constitute unlawful employment practices under Title VII.
The Tampa Field Office, which is part of the Miami District Office of the Equal Employment Opportunity Commission (EEOC), investigated and attempted to resolve Williamson’s charge of discrimination before referring it to the Department of Justice as an enforcement action. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
Former Employee at Los Alamos National Laboratory Sentenced to Probation for Making False Statements About Being Employed by ChinaRead the Press Release
Turab Lookman, 68, of Santa Fe, New Mexico, was sentenced on Sept. 11 to five years of probation and a $75,000 fine for providing a false statement to the Department of Energy. Lookman is not allowed to leave New Mexico for the term of his probation.
On June 6, 2018, Lookman, then an employee at Los Alamos National Laboratory, falsely denied to a counterintelligence officer that he had been recruited or applied for a job with the Thousand Talents Program, established by the Chinese government to recruit individuals with access to or knowledge of foreign technology and intellectual property. Lookman pleaded guilty to the charge in January.
The FBI investigated this case. Assistant U.S. Attorneys George Kraehe and Jon Stanford prosecuted the case.
District Court Orders Illinois Sprouts and Soybean Products Company to Comply with Food Safety RulesRead the Press Release
A federal court permanently enjoined a Chicago firm from preparing and distributing adulterated sprouts and soybean products in violation of federal law, the Department of Justice announced today.
In a civil complaint filed September 15, 2020 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Fortune Food Product, Inc., company president Steven Seeto, and supervisor Tiffany Jiang violated the Federal Food, Drug, and Cosmetic Act by growing sprouts and preparing soy products that FDA inspections showed did not comply with food safety regulations. According to the complaint, FDA issued a warning letter to the company in 2018, and tests in 2018 and 2019 revealed Listeria species inside the facility and E. coli in water used to irrigate sprouts.
“The food consumers buy must be safe to eat,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The Department of Justice will continue to partner with the FDA to ensure that companies follow food safety rules and prepare food in sanitary conditions.”
The defendants agreed to be bound by a consent decree filed with the complaint in U.S. District Court for the Northern District of Illinois. The order entered by the court permanently enjoins the defendants from violating the Food, Drug, and Cosmetic Act and the Produce Safety Rule, and it requires Fortune Food to stop growing and packing sprouts or preparing other foods unless it complies with specific remedial measures set forth in the injunction.
“We are committed to protecting the food supply and when a company fails to follow the law, we will take action,” said FDA Chief Counsel Stacy Cline Amin, J.D. “The FDA worked closely with DOJ to obtain this injunction and protect consumers.”
Trial Attorney Douglas Ross of the Civil Division’s Consumer Protection Branch represented the United States with the assistance of Associate Chief Counsel for Enforcement William Thanhauser of FDA’s Office of the Chief Counsel, and the U.S. Attorney’s Office for the Northern District of Illinois.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Illinois, visit its website at https://www.justice.gov/usao-ndil.
United States Antitrust Agencies Co-Host the 19th Annual International Competition Network ConferenceRead the Press Release
The Department of Justice’s Antitrust Division and the Federal Trade Commission (FTC) are co-hosting the International Competition Network’s (ICN) 19th annual conference, which opens today and runs through Thursday, September 17, 2020. Assistant Attorney General Makan Delrahim and FTC Chairman Joseph J. Simons are leading the U.S. agencies’ participation in the ICN’s first virtual conference. Assistant Attorney General Delrahim and Chairman Simons will deliver opening remarks and speak on the conference’s showcase program addressing the challenges of enforcement in the digital economy.
Originally planned as an in-person event in Los Angeles in May, the multi-day conference features discussions across a range of competition enforcement and policy issues, including those that involve the digital economy, and highlights the progress of the ICN Working Groups on mergers, cartels, unilateral conduct, advocacy and agency effectiveness. ICN members and non-governmental advisors (NGAs) will participate, including leadership from antitrust agencies, as well as competition experts from international organizations and the legal, business and academic communities.
“We are proud to co-host the ICN annual conference, an important forum for our international partners in antitrust enforcement and others who are dedicated to effective competition policy,” said Assistant Attorney General Makan Delrahim. “As the economy moves to greater globalization and digitization, convergence and cooperation are more important than ever to ensuring sound antitrust enforcement.”
“The ICN’s work benefits consumers by promoting sound enforcement and policy, and by reinforcing competition’s central role in driving productivity, innovation, and economic recovery,” said FTC Chairman Joseph Simons. It is a great honor for the FTC to support the ICN’s critical work and to co-organize this year’s conference.”
The ICN was created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world. It was founded by 15 agencies including the Antitrust Division and FTC, and has grown to 140 agencies from 129 jurisdictions, supported by a wide network of NGAs from around the world.
Registration is not required. A link to view the entire conference will be provided on the conference webpage immediately before the start of the conference at 8:00 am EDT.
The U.S. Reaches $1.5 Billion Settlement with Daimler AG over Emissions Cheating in Mercedes-Benz Diesel VehiclesRead the Press Release
The U.S. Department of Justice, Environmental Protection Agency (EPA), and California Air Resources Board (CARB) announced today a proposed settlement with German automaker Daimler AG and its American subsidiary Mercedes-Benz USA, LLC (collectively, “Daimler”) resolving alleged violations of the Clean Air Act and California law associated with emissions cheating.
Under the proposed settlement, lodged with the U.S. District Court for the District of Columbia, Daimler will recall and repair the emissions systems in Mercedes-Benz diesel vehicles sold in the United States between 2009 and 2016 and pay $875,000,000 in civil penalties and roughly $70,300,000 in other penalties. The company will also extend the warranty period for certain parts in the repaired vehicles, perform projects to mitigate excess ozone-creating nitrogen oxides (NOx) emitted from the vehicles, and implement new internal audit procedures designed to prevent future emissions cheating. The recall program and federal mitigation project are expected to cost the company about $436,000,000. The company will pay another $110,000,000 to fund mitigation projects in California. Taken together, the settlement is valued at about $1.5 billion.
Vehicle manufacturers are required by the Clean Air Act and federal regulations to apply for and receive a certificate of conformity from EPA before selling a new model year vehicle in the United States. As part of the application process, manufacturers must demonstrate through testing that a vehicle meets applicable emissions standards and disclose to EPA all auxiliary emission control devices (AECDs) and any defeat devices installed in the vehicle.
The settlement addresses allegations made in separate civil complaints filed by the United States and CARB today in the District of Columbia that, from 2009 to 2016, Daimler manufactured, imported, and sold more than 250,000 diesel Sprinter vans and passenger cars with undisclosed AECDs and defeat devices programmed into the vehicles’ complex emissions control software. These devices cause the vehicles to produce compliant results during emissions testing. But when not running a test, the vehicles’ emissions controls perform differently, and less effectively, resulting in an increase in NOx emissions above compliant levels.
NOx emissions from vehicles play a key role in ground-level ozone production and negatively impact human health. Indeed, studies have indicated that breathing ozone may cause damage to lung tissue in children and adults, and it may worsen conditions like asthma, emphysema, and bronchitis. The pollutant has also been linked to cardiac disease.
“By requiring Daimler to pay a steep penalty, fix its vehicles free of charge, and offset the pollution they caused, today’s settlement again demonstrates our commitment to enforcing our nation’s environmental laws and protecting Americans from air pollution,” said Deputy Attorney General Jeffrey Rosen.
“The message we are sending today is clear. We will enforce the law. We will protect the environment and public health. And if you try to cheat the system and mislead the public, you will be caught,” said EPA Administrator Andrew Wheeler. “Those that violate public trust in pursuit of profits will forfeit both.”
EPA and CARB discovered the defeat devices through testing conducted in the wake of the Volkswagen scandal at EPA’s National Vehicle and Fuel Emissions Laboratory in Michigan and at CARB’s test laboratory in El Monte, California.
The settlement requires Daimler to implement a recall and repair program to remove all defeat devices from the affected vehicles at no cost to consumers and bring the vehicles into compliance with applicable emissions standards under the Clean Air Act. The repair will consist of a software update and replacement of select hardware, which differs across models and model years.
Daimler must repair at least 85 percent of the affected passenger cars within two years and at least 85 percent of the affected vans within three years. The company must also offer an extended warranty covering all updated software and hardware, and it must test repaired vehicles each year for the next five years to ensure the vehicles continue to meet emissions standards over time. Daimler will face stiff penalties if any category of updated vehicles fails to meet applicable emissions standards or if it fails to meet the 85 percent recall rate for passenger cars or vans.
The settlement further requires Daimler to implement systemic corporate reforms to detect and try to eliminate violations in the future. This includes conducting significant testing on new diesel and gasoline motor vehicles using a portable emissions measurement system to assess compliance under real-world conditions, installing a robust whistleblower program, enhancing annual AECD and defeat device training for its employees, and performing internal audits subject to review and critique by an external compliance consultant.
Daimler must also replace 15 old locomotive engines with new, less-polluting engines to offset excess NOx emitted from its vehicles.
The proposed settlement is subject to a 30-day public comment period and court review and approval. Copies of the consent decree lodged with the court are available here. Further information about the settlement is available on EPA’s website at: https://www.epa.gov/enforcement/daimler-ag-and-mercedes-benz-usa-llc-clean-air-act-civil-settlement.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Eastern District of Michigan. Operation Legend launched in Detroit on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Gregory Dulaney
“Operation Legend continues to show results,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan. “Positive changes can happen when law enforcement agencies from across the board work together to make our streets safer. Removing the scourge of drugs and guns from our communities is our top priority.”
Gregory Dulaney was charged on Aug. 19, 2020, with being a felon in possession of a firearm and distributing narcotics.
According to the charging document, ATF special agents conducted an undercover operation in which confidential informants purchased suspected crack cocaine from Dulaney at a motel in Detroit. On July 30, 2020, while purchasing 19 baggies of crack cocaine from Dulaney, a confidential informant also allegedly noticed a firearm in Dulaney’s pants pocket.
On Aug. 8, 2020, local police conducted a traffic stop of an individual wanted on a no-bond warrant for cocaine possession. During the stop, an officer allegedly observed the front seat passenger – later identified as Dulaney – placing something on the floorboard or under the seat. The officer asked Dulaney for identification, and Dulaney provided a false name.
During a subsequent search of Delany, he was found in possession of a crack pipe and a small amount of heroin. Officers then searched the vehicle Delaney had been in and found a loaded Hi-Point, C9, 9mm handgun under the front passenger seat. It is alleged that Delaney eventually admitted to providing the officer with a fake name because he was on parole for a previous felony conviction.
Because of a previous felony conviction punishable by more than one year in prison, Dulaney is prohibited from possessing firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 592 defendants charged with federal crimes.
Request Denied for Preliminary Injunction on the Administration’s Landmark New Regulations Implementing the National Environmental Policy ActRead the Press Release
On Friday, Sept. 11, Judge James T. Jones of the U.S. District Court for the Western District of Virginia denied a request for a preliminary injunction against the Administration’s landmark new regulations implementing under the National Environmental Policy Act (NEPA), which will modernize environmental review, enhance the information-gathering process, and facilitate more meaningful public participation in the protection of our environment. These regulations had not been subject to a major revision since 1978, when they were first promulgated, and they were in need of modernization to improve the infrastructure permitting process.
“We are gratified that the Court rejected plaintiff’s injunction request, and the Department will continue to defend these vital rules,” said Deputy Attorney General Jeffrey A. Rosen. “The modernization of the NEPA process advances both environmental protection and economic development.”
“I am pleased to have argued this case for the President’s Council of Environmental Quality and that Judge Jones agreed to deny the nationwide preliminary injunction,” said Jeffrey Bossert Clark, Assistant Attorney General of the Environment and Natural Resources Division.
The Scripps Research Institute to Pay $10 Million to Settle False Claims Act Allegations Related to Mischarging NIH-Sponsored Research GrantsRead the Press Release
The Scripps Research Institute (TSRI) has agreed to pay the U.S. $10 million to settle claims that it improperly charged NIH-funded research grants for time spent by researchers on non-grant related activities such as developing, preparing, and writing new grant applications, teaching, and engaging in other administrative activities, the Department of Justice announced today.
“The NIH has finite resources to support important research across the nation,” said Acting Assistant Attorney General Jeffrey Clark for the Department of Justice’s Civil Division. “Today’s settlement demonstrates our commitment to protect those resources by ensuring that NIH grants funds are used for the purposes for which they were intended."
“Federal grant recipients must use the grant funds they receive on tasks that specifically relate to the funded project. Those that improperly charge the government for costs unrelated to the project must be held accountable,” said U.S. Attorney Robert K. Hur. “The U.S. Attorney’s Office and the Department of Justice have a duty to protect government resources and ensure they are used appropriately.”
“Taxpayers funds for medical research are finite and the need for scientific advances is great; therefore, it’s critical that these resources are used as intended,” said Special Agent in Charge Maureen R. Dixon, U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, our investigators will continue to protect these resources so that they are spent appropriately.”
TSRI is a non-profit biomedical research institute with campuses located in Jupiter, Florida and La Jolla, California. TSRI receives millions of dollars in funding from NIH through hundreds of grants each year. The settlement resolves allegations that between 2008 and 2016, TSRI failed to have a system in place for its faculty to properly account for time spent on activities that cannot be charged directly to NIH-funded projects or are unrelated to the research activities of the NIH-funded project. Consequently, the U.S. contended that TSRI improperly charged time spent by faculty on developing, preparing, and writing new grant applications directly to existing NIH-funded projects, rather than allocating such charges as indirect costs. The U.S. also alleged that TSRI improperly charged NIH-funded projects for time spent by its faculty on other activities unrelated to the funded projects, such as teaching, TSRI committee work, and other administrative tasks.
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Thomas Burris, Ph.D, a former TSRI employee. 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. Dr. Burris will receive $1.75 million.
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 District of Maryland, and the Office of Inspector General of the Department of Health and Human Services.
The case is captioned U.S. ex rel. Burris v. The Scripps Research Institute, Case No. 1:15-CV-01443 (D. Md.). The claims resolved by the settlements are allegations only; there has been no determination of liability.
Statement by Attorney General William P. Barr on the 19th Anniversary of the September 11, 2001 Terrorist AttacksRead the Press Release
Attorney General William P. Barr has released the following statement:
“Nineteen years ago this morning, our nation was subjected to a horrific, unprovoked terrorist attack that killed nearly 3,000 Americans in New York City, the Pentagon, and aboard United Flight 93 — which was downed by heroic passengers who saved untold numbers of lives. On behalf of the Department of Justice, I convey my sympathy to the families of the victims of all who were lost that tragic day. Although nearly two decades have passed, we will never forgot those who were murdered. Nor will we forget who murdered them. This department’s resolve to protect the people of the United States — and to bring to justice those who would harm them — is as strong as it was on September 12, 2001.
On this anniversary, I extend particular gratitude to the law enforcement personnel and others who responded courageously to the attacks, many of whom gave the last full measure of devotion to save others that day and many of whom have later suffered from illness related to the attacks. The deadliest day in the history of American law enforcement was also its finest hour. In the images of police officers and firefighters charging into the burning towers and carrying to safety victims from all walks of life, we see the true character of those who volunteer to protect and serve. All Americans owe them their gratitude and steadfast support. The Department of Justice is proud to stand with the law enforcement heroes of September 11, 2001, and we strongly support the permanent September 11th Victim Compensation Fund — signed into law last year by President Trump — that has awarded more than $7 billion to them and others still suffering the costs of the attacks. The Department of Justice honors the courage and sacrifice of all who saved lives on September 11, 2001, and we will be forever grateful to all who selflessly serve in American law enforcement.”
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Eastern District of Wisconsin. Operation Legend launched in Milwaukee on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Jeffrey R. Jones
“The defendant is alleged to have maintained an arsenal of firearms to facilitate his drug trafficking,” said U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin. “By bringing federal agents to work side-by-side with state and local investigators, Operation Legend is leading to prosecutions that will make Milwaukee a safer place to live.”
Jeffrey R. Jones was charged on Aug. 25, 2020, with federal drug trafficking and firearms offenses.
According to the indictment, Jones is charged with seven drug-related offenses, including distributing methamphetamine, heroin, and more than 40 grams of fentanyl, and possessing with the intent to distribute more than half a kilo of methamphetamine.
The indictment also alleges that Jones possessed firearms in furtherance of the aforementioned drug trafficking crimes. In addition, Jones is charged with being a felon in possession of the following firearms:
- a Sig Sauer P226 .40 caliber semi-automatic pistol;
- an FN Herstal FS2000 5.56 x 45 semi-automatic Carbine rifle;
- an Action Arms Uzi Model 45 semi-automatic Carbine rifle;
- a Glock 23 Gen 4. 40 caliber semi-automatic pistol;
- an American Tactical M1911 GI semi-automatic pistol;
- a Ruger LCP II 380 semi-automatic pistol;
- a Glock 23 .40 caliber semi-automatic pistol; and
- a Taurus .357 Magnum revolver.
Because of a previous felony conviction punishable by more than one year in prison, Jones is prohibited from possessing firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 592 defendants charged with federal crimes.
United States Assists Improved Border Control in NigeriaRead the Press Release
INTERPOL Washington—the U.S. National Central Bureau (USNCB)—has partnered with the U.S. Department of State and INTERPOL to dramatically improve Nigeria’s border security screening capacity. Under the U.S.-funded Project TERMINUS, on September 7th, Nigeria became the first African country to implement an automated system for uploading stolen and lost passport documents (SLTD) into the INTERPOL database that can be queried by all 194 INTERPOL member countries. This automation was made possible by implementing INTERPOL Washington’s SLTD Uploader software solution.
INTERPOL Washington’s Project TERMINUS, funded by the U.S. Department of State, executes solutions to upgrade INTERPOL member nations’ access to INTERPOL information sharing services. The goal of Project TERMINUS is to extend INTERPOL's I-24/7 secure global police communications system in high risk areas and select host nations. “INTERPOL Washington is pleased to continue our partnership with the U.S. Department of State to develop and deploy advanced tools and technology to assist our worldwide law enforcement partners in the fight against transnational crime and terrorism. By improving border security in Nigeria, we not only improve the safety of Nigerian citizens, we also strengthen the global chain of law enforcement tools linking together INTERPOL’s member countries,” said USNCB Director Uttam Dhillon.This initiative also helps member countries to meet their United Nations Security Council obligations to “… prevent the movement of terrorists and terrorist groups by effective border controls … and to “… improve international, regional, and sub-regional cooperation through increased sharing of information.” Due to any number of challenges, many countries, such as Nigeria, lacked access to INTERPOL’s 97-million-document SLTD database.
The SLTD Uploader software solution is a USNCB custom design which allows both the Nigeria Immigration Service and the National Central Bureau (NCB) in Abuja to connect directly to the INTERPOL database. Nigeria’s first document stream automatically uploaded approximately 150,000 SLTD records held in the Nigerian domestic SLTD database. This accomplishment culminated more than four months of active collaboration between the USNCB, the State Department, INTERPOL, and the Government of Nigeria, all of which was conducted virtually for the first time. “The completion of this project illustrates the ability of the USNCB to continue fulfilling its important around-the-clock mission in the midst of a worldwide pandemic,” said Dhillon.
The Nigeria project is the latest in a series of successful SLTD access improvement projects under the TERMINUS initiative, each building on prior lessons learned. Similar efforts have been executed in Malaysia and Indonesia, over the last three years.INTERPOL’s SLTD database is a critical tool for combatting terrorism by preventing Foreign Terrorist Fighter (FTF) movements by identifying and interdicting FTFs and other transnational criminals using stolen, lost or revoked documents such as passports, visas and identity documents. By ensuring that law enforcement officers have access to INTERPOL’s I-24/7 system, front line authorities can search and cross check traveler data in a matter of seconds and share sensitive or urgent police information with their counterparts around the globe in real time, 24 hours a day, 7 days a week.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to the International Criminal Police Organization on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
Readout of Attorney General William P. Barr’s Visits to Chicago and PhoenixRead the Press Release
This week, Attorney General William P. Barr traveled to Chicago, Illinois, and Phoenix, Arizona, to announce updates on Operation Legend and the results of Operation Crystal Shield, respectively.
In Chicago yesterday, Attorney General Barr held a press conference at the U.S. Attorney’s Office for the Northern District of Illinois during which he provided updates on Operation Legend. Joined by ATF Acting Director Regina Lombardo, FBI Deputy Director David Bowdich, U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois, U.S. Attorney Justin Herdman for the Northern District of Ohio, and U.S. Attorney Thomas Kirsch II for the Northern District of Indiana, the Attorney General announced that since Operation Legend was launched on July 8, there have been more than 2,000 arrests, with nearly 600 defendants charged in federal courts. He also announced that since launching Operation Legend in Chicago on July 22, the homicide rate has declined significantly. In fact, when comparing the seven weeks prior to the operation’s launch with the five weeks immediately following the launch, homicides in Chicago declined 50%.
Attorney General Barr holds a press conference in Chicago on Operation LegendAs a designated Operation Legend city, the Bureau of Justice Assistance will make available $3.5 million in funding to reimburse the Chicago Police Department and City of Chicago for the work of local law enforcement on the federal task forces supporting Operation Legend’s violent crime reduction efforts. The COPS Office has also made $9.375 million available to the Chicago Police Department to fund the hiring of 75 officers.
Immediately following the press conference, Attorney General Barr visited the Chicago Police Department’s (CPD) 7th District, where he met with the CPD superintendent, the 7th district commander, and officers. During his time at CPD, the Attorney General received briefings on active cases, as well as on the technologies, such as shot spotters and LPRs, that CPD is utilizing to help them prevent violent crime and enforce the law. The Attorney General then went on a ride-along to the Englewood neighborhood of Chicago with the commander of the 7th district.
Today, the Attorney General and DEA Acting Administrator Timothy J. Shea held a press conference at the DEA’s Phoenix Field Division to announce the results of Operation Crystal Shield, a DEA-led initiative targeting the command and control elements of Mexican cartels that operate major methamphetamine “transportation hubs” throughout the United States. Joined by DEA Chief of Operations Chris Evans, DEA Special Agent in Charge Cheri Oz, and U.S. Attorney Michael Bailey, AG Barr and Acting Administrator Shea announced that since Operation Crystal Shield was launched in February 2020, the DEA seized nearly 29,000 pounds of methamphetamine, $43.3 million in drug proceeds, and 284 firearms.
Attorney General Barr holds a press conference in Phoenix on Operation Crystal Shield
Attorney General Barr is briefed by DEA Special Agent on drug smuggling through the desert
Following the press conference, the Attorney General, Acting Administrator Shea, SAC Oz, and U.S. Attorney Bailey met with police chiefs, sheriffs, and officers from around the state of Arizona to get an on-the-ground sense of what local law enforcement is experiencing with regards to violent crime, drug trafficking, officer wellness, and other important issues facing law enforcement.After meeting with local law enforcement, the Attorney General attended a working lunch with the leaders of federal law enforcement in Arizona - the ATF, DEA, leaders from the High Intensity Drug Trafficking Area (HIDTA) program, FBI, United States Marshals Service, Homeland Security Investigations, Customs and Border Protection Tucson Sector Border Patrol, the United States Attorney’s Office, and the IRS.
The Attorney General completed his day at the DEA Phoenix Field Division with a briefing on the DEA’s clandestine lab cleanup capabilities.
Justice Department Updates 2015 Business Review Letter to the Institute of Electrical and Electronics EngineersRead the Press Release
The Justice Department today issued a supplement to its Feb. 2, 2015 Business Review Letter from the Antitrust Division to the Institute of Electrical and Electronics Engineers, Incorporated (IEEE) (“the 2015 Letter”). The 2015 Letter analyzed proposed revisions to the IEEE’s Patent Policy of that same year pursuant to the department’s Business Review Procedure, 28 C.F.R. § 50.6. The Antitrust Division took this step to address concerns raised publicly by industry, lawmakers, and former department and other federal government officials that the 2015 letter has been misinterpreted, and cited frequently and incorrectly, as an endorsement of the IEEE’s Patent Policy. Additionally, aspects of the 2015 letter had become outdated based on recent jurisprudential and policy developments.
“The Department’s Business Review Procedure provides enforcement transparency to companies and organizations wishing to gain valuable insight into the department’s prospective enforcement views,” said Assistant Attorney General Makan Delrahim. “The 2015 IEEE Letter, however, has proven outdated and we fear that reliance on its analysis, both in the United States and abroad, could actually harm competition and chill innovation. The division concluded this supplement is necessary to provide increased clarity, given recent developments and potential misinterpretations of the division’s enforcement views.”
Under the Department of Justice’s Business Review Procedure, an organization may submit proposed conduct to the Antitrust Division and receive a statement as to the division’s current antitrust enforcement intentions based on the information provided. In addition to providing assurance to the requesting party, the Antitrust Division’s responses often explain the application of complex areas of antitrust law, such as patent pooling. The department, however, reserves the right to challenge the proposed conduct under the antitrust laws if its actual operation proves to be anticompetitive in purpose or effect. The department’s action today does not affect the Business Review Procedure.
The Antitrust Division’s supplemental letter explains that it is meant to align the now outdated analysis in the 2015 letter with current U.S. law and policy, which has evolved in important ways over the last five years in relation to the licensing of standard essential patents, and the governance of standards development organizations. The supplemental letter encourages IEEE to consider the supplementary letter and all applicable facts when assessing whether an update to the IEEE’s Patent Policy is warranted. The supplemental letter is available on Antitrust Division’s website, along with the 2015 letter and IEEE’s original business review request.
Department of Justice Awards Nearly $50 Million in Grants to Improve School SafetyRead the Press Release
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced nearly $50 million in school safety funding through its School Violence Prevention Program (SVPP). SVPP provides up to 75 percent funding for school safety measures in and around primary and secondary schools and school grounds.
“With the new school year underway, the safety of our nation’s students remains paramount,” said COPS Office Director Phil Keith. “Although this school year may look different at the start, now is the ideal time to make preparations to enhance school safety for when all of our children are back in the classroom.”
The Students, Teachers, and Officers Preventing School Violence Act of 2018 (STOP School Violence Act of 2018) gave the COPS Office authority to provide awards directly to states, units of local government, Indian tribes, and public agencies (such as school districts and law enforcement agencies) to improve security at schools and on school grounds in the jurisdiction of the grantee through evidence-based school safety programs. The 160 awards announced today can be used for coordination with law enforcement; training for local law enforcement officers to prevent student violence; metal detectors, locks, lighting, and other deterrent measures; technology for expedited notification of local law enforcement during an emergency; and other measures that provide a significant improvement in security. The full list of SVPP awards can be found here: https://cops.usdoj.gov/pdf/2020AwardDocs/svpp/Award_List.pdf.
In addition to the school safety grants announced today, the COPS Office School Safety Working Group, which is composed of representatives from eight national law enforcement organizations, has identified 10 essential actions that can be taken by schools, school districts, and law enforcement agencies to help prevent critical incidents involving the loss of life or injuries in our nation's schools and to respond rapidly and effectively when incidents do occur. The Ten Essential Actions to Improve School Safety are applicable to school shootings as well as to other areas of school safety, including natural disasters and traumatic events such as student suicide. Adopting policies and practices based on the recommendations in this publication can help make school communities safer and save lives.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For more information, please visit: https://cops.usdoj.gov/.
Department of Justice and U.S. Patent and Trademark Office to Host Public Workshop on Promoting Innovation in the Life Science SectorRead the Press Release
The Justice Department’s Antitrust Division (DOJ) and the U.S. Patent and Trademark Office (USPTO) will host a virtual public workshop on Sept. 23rd and 24th, 2020 to discuss the importance of intellectual property rights and pro-competitive collaborations for life sciences companies, research institutions, and American consumers.
“Now more than ever, it is essential that we consider the role of regulation and antitrust enforcement on incentives for innovation in key areas of discovery, such as biotechnology and the life sciences,” said Assistant Attorney General for the Antitrust Division Makan Delrahim. “We look forward to a robust discussion of the current legal climate and its impact on competitiveness, and are honored to collaborate with Director Iancu and his talented team at the PTO in hosting this event.”
The workshop will feature a fireside chat between Assistant Attorney General Delrahim and Under Secretary of Commerce for Intellectual Property and Director of the USPTO, Andrei Iancu. Former Director of the National Institutes of Health, Dr. Elias A. Zerhouni will deliver a keynote address. The workshop will include panel discussions of how patents and copyrights incentivize and reward innovation in the life science sector and the USPTO’s guidance on patentability for life sciences inventions. In addition, panels will discuss how partnerships and collaboration can facilitate the development of complex biologics, and the role of antitrust enforcement and regulation in preserving competition and incentives for innovation among drug developers and their partners. Panelists include leading figures from industry, government agencies, prominent research labs, the non-profit sector, academia, and the broader legal and economic community.
The workshop is free and open to the public, although registration is required, and will be webcast from approximately 1–5 PM Eastern Time each day. A recording of the workshop will be made available on DOJ and USPTO’s websites. Registration information, an agenda, instructions on accessing the webcast, and a list of speakers will be available in the near future on the USPTO and DOJ event webpages. Members of the press should email Brianna Herlihy at [email protected] to register.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact Lakeshia Harley at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
Attorney General William P. Barr and DEA Acting Administrator Timothy J. Shea Announce Results of Operation Crystal ShieldRead the Press Release
Today, Attorney General William P. Barr and Drug Enforcement Administration Acting Administrator Timothy J. Shea announced the results of Operation Crystal Shield, a DEA–led effort targeting the command and control elements of Mexican cartels that operate major methamphetamine “transportation hubs” throughout the United States.
At a press conference in Phoenix, Arizona, Attorney General Barr and Acting Administrator Shea announced that in the first six months, Operation Crystal Shield generated more than 750 investigations, resulting in nearly 1,840 arrests, and the seizures of more than 28,560 pounds of methamphetamine, $43.3 million in drug proceeds, and 284 firearms.
“Methamphetamine is a brutal drug linked to violent crime and responsible for far too many fatal overdoses,” said Attorney General Barr. “The astounding results of Operation Crystal Shield clearly demonstrate the commitment by the DEA and our state and local partners to prevent this deadly drug from reaching the streets of our communities. Prosecuting individuals who traffic these poisons remains a top priority for President Trump and the entire Department of Justice.”
“In the months leading up to the launch of Operation Crystal Shield, communities across the United States experienced a surge of methamphetamine,” said Acting Administrator Shea. “The COVID pandemic locked down many communities and impacted legitimate businesses, but the drug trade continued. Under difficult conditions, DEA – along with our federal, state, and local partners – never stopped working as we helped stem the flow of methamphetamine onto our streets, even as violent drug traffickers sought new ways to smuggle it into the United States. The success of Operation Crystal Shield reflects the devotion of DEA and our partners to protect our communities from the scourge of drug trafficking and violent crime under any circumstances.”
DEA launched Operation Crystal Shield on Feb. 20, 2020, after identifying nine major methamphetamine trafficking hubs: Atlanta, Dallas, El Paso, Houston, Los Angeles, New Orleans, Phoenix, San Diego, and St. Louis. Together these nine cities accounted for more than 75 percent of the methamphetamine seized by DEA in 2019. Under this operation, DEA directed enforcement resources to these cities where methamphetamine is often trafficked in bulk and then distributed across the country, and partnered with other federal, state, and local law enforcement to interdict these shipments and target the transportation networks behind them.
Operation Crystal Shield leveraged existing DEA initiatives that target major drug trafficking networks, including the Mexican cartels responsible for virtually all of methamphetamine trafficked into and within the United States. From FY 2017 to FY 2019, DEA domestic seizures of methamphetamine increased 127 percent from 49,507 pounds to 112,146 pounds. During the same timeframe, the number of DEA arrests related to methamphetamine increased by nearly 20 percent.
Asphalt Contractor to Pay $4.25 Million to Settle Claims That It Misled the Government as to the Materials Used to Pave RoadRead the Press Release
Dave O’Mara Contractor Inc. (DOCI), an Indiana-based asphalt contractor, has agreed to resolve allegations that it violated the False Claims Act by misrepresenting to the government the materials that it was using to pave federally-funded roads in the state of Indiana, the Department of Justice announced today. Under the settlement agreement, DOCI has agreed to pay over $4.25 million over a period of four years.
“Today’s settlement demonstrates our commitment to hold accountable companies that provide false information to obtain government contracts,” said Acting Assistant Attorney General Jeffrey Clark for the Department of Justice’s Civil Division. “Misrepresenting the materials that will be used to pave federally-funded roads not only defrauds the government but potentially endangers the lives of motorists.”
“The safety and security of the citizens of Indiana are paramount to this office,” stated Josh Minkler, U.S. Attorney for the Southern District of Indiana. “To risk the safety of the motoring public for the sake of saving money cannot be tolerated. This recovery sends the message that contractors must comply with various applicable state and federal regulations when billing the U.S. Government, or they will face the consequences of their choices.”
“It is important to ensure that taxpayers get what they pay for so that the quality of products used in highway transportation projects is not compromised,” stated Andrea M. Kropf, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General. “Today’s settlement sends a message that putting the safety of the travelling public at risk for personal gain is an unacceptable way of conducting business.”
The settlement resolved allegations that in applying for government contracts, DOCI falsely represented the materials it would use to pave roads that are funded in part by the Federal Highway Administration. Specifically, the government alleged that DOCI claimed that its hot mix asphalt mixture contained a sufficient amount of binder or glue to hold the mix together when, in fact, DOCI frequently failed to meet the minimal levels of binder required to pave the roads. DOCI thereby allegedly created the false impression that its mixture met the contract requirements and that the roads would last a reasonable period of time before they would develop cracks and become unsafe for driving.
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 Southern District of Indiana, and the Chicago Office of the Office of Inspector General for the U.S. Department of Transportation. The U.S. Government also received significant assistance in this matter from Indiana’s Department of Transportation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Antitrust Division Announces Updates to Civil Investigative Demand Forms and Deposition ProcessRead the Press Release
Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division announced today that the Antitrust Division has implemented two uniform updates to its Civil Investigative Demand (CID) forms and deposition process:
First, all CIDs issued by the Antitrust Division — including CIDs for documentary material, written interrogatories, oral testimony, or any combination thereof — will now provide notice to all recipients that their documents, answers to interrogatories, and/or testimony may be used by the Department of Justice in other civil, criminal, administrative, or regulatory cases or proceedings. Specifically, CIDs issued by the division will now include the following notice:
The information you provide may be used by the Department of Justice in other civil, criminal, administrative, or regulatory cases or proceedings. Individuals may refuse, in accordance with the rights guaranteed to them by the Fifth Amendment to the Constitution of the United States, to produce documents and/or answer any question that may tend to incriminate them.
Second, division attorneys taking oral testimony pursuant to a CID will ask the deponent questions on the record at the outset of every deposition to confirm that the deponent understands the ways in which the information they provide can be used by the Department of Justice.
These updates are consistent with long-standing division policies and aim to further promote transparency in antitrust investigations.
William M. Kelly, M.D., Inc and Omega Imaging, Inc. Agree to Pay $5 Million to Resolve Alleged False Claims for Unsupervised and Unaccredited Radiology ServicesRead the Press Release
William M. Kelly Inc. and Omega Imaging Inc., together, operate 11 radiology facilities in Southern California, have agreed to pay the United States $5 million to resolve allegations that they violated the False Claims Act (FCA) by knowingly submitting claims to Medicare and the military healthcare program, TRICARE, for unsupervised radiology services and services provided at unaccredited facilities, the Department of Justice announced today.
“Today’s settlement demonstrates the department’s unrelenting commitment to protect the public fisc and patient safety,” said Acting Assistant Attorney General Jeffrey Clark of the Department of Justice’s Civil Division. “The department will aggressively pursue unscrupulous healthcare providers who cut corners that could jeopardize the health and safety of Medicare and TRICARE beneficiaries.”
“Patients rightly expect that medical providers follow the proper procedures and protocol when administering complex treatments to ensure patient safety,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our law enforcement partners we remain steadfast in our commitment to uphold the integrity of government health programs.”
The settlement resolves allegations that the defendants submitted claims for CT scans and MRIs involving contrast injections that were not properly supervised by a physician. Applicable program rules require a physician to be present in the office suite when a patient undergoes an examination that involves the administration of intravenous contrast material. The defendants allegedly performed and billed for these procedures when no supervising physician was present in the office suite. The settlement also resolves allegations that a certain number of the defendants’ facilities lacked accreditation.
Contemporaneous with the settlement, William M. Kelly, Inc. and Omega Imaging Inc. entered into a three-year Integrity Agreement (IA) with the Department of Health and Human Services Office of Inspector General requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The IA requires training, auditing, and monitoring designed to address the conduct alleged in the case.
The settlement, which was based on the defendants’ ability to pay, resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the FCA by Syd Ackerman, who was formerly employed by the defendants. The FCA permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The FCA permits the United States to intervene in such a lawsuit, as it did in part here. Mr. Ackerman will receive approximately $925,000 of the settlement proceeds.
This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Central District of California; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; and the Defense Health Agency Office of General Counsel. The qui tam case is captioned United States ex rel. Syd Ackerman v. William M. Kelly, M.D., Inc. and Omega Imaging, Inc., No. EDCV 13-02195 JGB (DTBx) (C.D. Cal.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
OPERATION LEGEND: Case of the DayRead the Press Release
Illinois Man Charged with Discharging a Firearm While Carjacking a Vehicle from Two Victims
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Northern District of Illinois. Operation Legend launched in Chicago on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates.United States vs. Michael C. Pearson
“Carjacking is a senseless act of violence that has no place in our society,” said U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois. “Our office is committed to working closely with our federal, state, and local law enforcement partners to pursue and prosecute violent offenders.”
Michael C. Pearson was charged on August 20, 2020, with carjacking and using a firearm during a crime of violence.
According to the indictment, on July 28, 2020, Pearson discharged a firearm, specifically a .22 caliber Glock semiautomatic pistol, while carjacking a 2006 Buick Lucerne from two victims on the North Side of Chicago. The firearm charge carries a maximum sentence of life in federal prison, while the carjacking charge is punishably by up to 15 years.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in Chicago. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 592 defendants charged with federal crimes.
Department of Justice Awards $16 Million in Grants to Advance Community Policing Efforts and Provide Active Shooter Training to First Responders Across the CountryRead the Press Release
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced nearly $8 million in funding to advance the practice of community policing in law enforcement. Community Policing Development (CPD) program funds are used to develop the capacity of law enforcement to implement community policing by providing guidance on promising practices through the development and testing of innovative strategies; building knowledge about effective practices and outcomes; and supporting new, creative approaches to preventing crime and promoting safe communities.
The COPS Office also announced a new $8.5 million award under the Preparing for Active Shooter Situations (PASS) program to the Advanced Law Enforcement Rapid Response Training (ALERRT) Center at Texas State University to provide multi-disciplinary, scenario-based active shooter training to first responders.
“One of the top priorities of the Department of Justice is to keep communities safe from violent crime,” said COPS Office Director Phil Keith. “The two grant programs announced today will promote promising best practices to advance community policing, which is a proven public safety approach, and provide much-needed training against active shooters, which remain a constant threat to the citizens of this great country.”
Highlights of today’s 24 CPD awards include $500,000 to the International Association of Chiefs of Police to document and advance victim support services; $1.3 million to the University of Tennessee to establish a rural law enforcement training center; and $500,000 to Movement Forward, which is a national law enforcement and faith-based partnership program. Additionally, $1.3 million is being awarded in partnership with the U.S. Department of Transportation’s National Highway Traffic Safety Administration to expand training opportunities for officers and create updated resource guides for law enforcement on safe and effective vehicular pursuits. The full list of awards is available on the COPS Office website at: https://cops.usdoj.gov/pdf/2020AwardDocs/cpd/Award_List.pdf
Since 2017, COPS Office funding through the PASS program has provided active shooter training for approximately 53,000 first responders across the nation. The additional $8.5 million announced today will fund training for roughly 20,000 additional first responders. Additional information about the PASS program can be found here: https://cops.usdoj.gov/pdf/2020AwardDocs/pass/Award_List.pdf.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance. For more information, please visit: https://cops.usdoj.gov/.
California Attorney Pleads Guilty in Multimillion Dollar Conduit Campaign Contribution Conspiracy CaseRead the Press Release
A Glendale, California attorney pleaded guilty today for conspiring to make and conceal conduit and excessive campaign contributions during the U.S. presidential election in 2016 and thereafter.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Acting Assistant Director in Charge James A. Dawson of the FBI’s Washington Field Office made the announcement.
Rudy Dekermenjian, 42, of Glendale, California, pleaded guilty to one count of conspiracy to make conduit contributions, make excessive contributions, cause false statements, and cause false entries in records before the Honorable Randolph D. Moss of the U.S. District Court for the District of Columbia. A sentencing hearing has not yet been scheduled.
According to admissions made in connection with his plea, between March 2016 and June 2018, Dekermenjian conspired with Ahmad “Andy” Khawaja and others to make unlawful contributions to political committees, thereby circumventing contribution limits and causing the political committees to unwittingly submit false reports to the Federal Election Commission. Specifically, Dekermenjian admitted that in October 2016, Khawaja gave him $50,000 to contribute in Dekermenjian’s name to a political committee supporting a candidate running for U.S. president in the 2016 election cycle. The purpose of making the contribution in Dekermenjian’s name was to allow Khawaja to exceed contribution limits set by federal law with respect to the political committee at issue. The contribution was made in connection with a political event hosted by Khawaja in October 2016.
Additionally, Dekermenjian admitted that in January 2018, Khawaja gave him approximately $50,000 to contribute in Dekermenjian’s name to another political committee. Again, the purpose of making the contribution in Dekermenjian’s name was to allow Khawaja to exceed contribution limits with respect to the political committee at issue. The contribution was made in connection with another political event hosted by Khawaja in March 2018.
Charges remain pending against Khawaja, who is a fugitive, and others in the indictment. An indictment is not a finding of guilt. It merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by the FBI’s Washington Field Office and is being prosecuted by Trial Attorneys James C. Mann and Michael J. Romano of the Criminal Division’s Public Integrity Section.
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.
Attorney General William P. Barr Announces Updates on Operation Legend at Press Conference in ChicagoRead the Press Release
Today, at a press conference in Chicago, Attorney General William P. Barr announced updates to Operation Legend.
Since the operation’s launch, there have been more than 2,000 arrests, including defendants who have been charged in state and local courts. Of those arrests, approximately 592 defendants have been charged with federal crimes. In addition, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has seized 587 firearms, more than 1.2 kilos of heroin, and more than five kilos of methamphetamine; the Drug Enforcement Administration (DEA) has seized almost 70 kilos of methamphetamine, more than 16 kilos of heroin, more than 7 kilos of fentanyl, more than 12 kilos of cocaine, 268 firearms, and approximately $5.19 million in drug proceeds; the FBI has recovered 241 weapons; and, the U.S. Marshals Service has recovered 169 firearms and made 1,810 arrests, including 163 for homicide and 120 for sexual assault.
In Chicago, there has been a 50 percent decrease in homicides in the first seven weeks of the operation, when compared to the five weeks prior to the operation’s launch. In fact, between April 2020 and the end of July 2020, Chicago was experiencing a steady and distressing increase in fatal shootings, which precipitously declined in August.
The Attorney General launched Operation Legend on July 8, 2020, as a sustained, systematic, and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched first in Kansas City, MO., on July 8, 2020, the operation was expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on August 6, 2020; and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district is below.
Kansas City, MO.
113 defendants have been charged with federal crimes outlined below.
- 34 defendants have been charged with narcotics-related offenses;
- 68 defendants have been charged with firearms-related offenses; and
- 11 defendants have been charged with other violent crimes.
Chicago, IL.
124 defendants have been charged with federal crimes outlined below.
- 30 defendants have been charged with narcotics-related offenses;
- 90 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Albuquerque, NM.
45 defendants have been charged with federal crimes outlined below.
- 17 defendants have been charged with narcotics-related offenses;
- 22 defendants have been charged with firearms-related offenses; and
- 6 defendants have been charged with other violent crimes.
Cleveland, OH.
66 defendants have been charged with federal crimes outlined below.
- 41 defendants have been charged with narcotics-related offenses;
- 22 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Detroit, MI.
58 defendants have been charged with federal offenses outlined below.
- 29 defendants have been charged with narcotics-related offenses;
- 26 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Milwaukee, WI.
16 defendants have been charged with federal crimes outlined below.
- 2 defendants have been charged with narcotics-related offenses;
- 12 defendants have been charged with firearms-related offenses; and
- 2 defendant has been charged with other violent crimes.
St. Louis, MO.
123 defendants have been charged with federal crimes.
- 54 defendants have been charged with narcotics-related offenses;
- 53 defendants have been charged with firearms-related offenses; and
- 16 defendants have been charged with other violent crimes.
Memphis, TN.
16 defendants have been charged with federal offenses.
- 4 defendants have been charged with narcotics-related offenses;
- 9 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Indianapolis, IN.
31 defendants have been charged with federal crimes outlined below.
- 10 defendants have been charged with narcotics-related offenses;
- 17 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Operation Legend: Case of the DayRead the Press Release
Tennessee: Memphis Man Charged with Federal Firearms Offense
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Western District of Tennessee. Operation Legend launched in Memphis on Aug. 6, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. DeQuan Johnson
"Prohibited persons in possession of firearms or ammunition, such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to the community at large,” said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee. “Operation Legend is leveraging our collaboration between federal, state, and local law enforcement, and is already making a difference in our collective fight against violent crime in Memphis by interrupting the shooting cycle and holding trigger-pullers accountable. As long as this indiscriminate and senseless violence rules the streets, we will use the resources of Operation Legend and the authority of federal charges to incapacitate these community predators, reduce violent crime rates, and ultimately save lives."
DeQuan Johnson, of Memphis, was charged on Aug. 25, 2020, with unlawful possession of a firearm by a drug user.
According to the charging document, in January 2020, the ATF assisted the U.S. Marshals Service(USMS) with the arrest of Johnson, who was wanted by police for reckless endangerment with a deadly weapon and aggravated assault stemming from a shooting incident that occurred on Nov. 24, 2019.
It is alleged that on Nov. 24, 2019, Memphis Police Department officers responded to a shooting in which victims reported that two men approached the back porch of their residence and began firing shots into their home, which was filled with 12 people. One of the victims reported hearing approximately 15 gunshots coming from the back of the residence, and local police subsequently collected 15 spent cartridge casings from the scene. The investigation led to Johnson, who was positively identified by one of the victims.
On Jan. 22, 2020, members of the USMS Fugitive Task Force made contact with Johnson at his residence in Memphis. During a protective search of Johnson’s home, law enforcement located a loaded Smith & Wesson, Model SD40 VE, .40 caliber pistol; an extended magazine containing 20 .40 caliber rounds of ammunition; and marijuana. Because Johnson had active warrants out for his arrest, he was taken into custody.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 476 defendants charged with federal crimes.
Department of Justice Announces Funding to Promote Law Enforcement Mental Health and WellnessRead the Press Release
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced $4.5 million in grants for the Law Enforcement Mental Health and Wellness Act Program. These program funds are used to improve the delivery of and access to mental health and wellness services for law enforcement through training and technical assistance, demonstration projects, implementation of promising practices related to peer mentoring mental health and wellness, and suicide prevention programs.
“As a law enforcement professional with over 50 years of experience, I know firsthand the pressures that accompany this most noble profession,” said COPS Office Director Phil Keith. “This Department of Justice is committed to protecting the health and wellness of a police department’s most valuable asset – the men and women that leave their homes every day with a mission to protect and serve. The grants announced today will provide departments with key mental health and wellness services.”
Good mental and psychological health is just as essential as good physical health for law enforcement officers to be effective in keeping our communities safe from crime and violence. As part of the Law Enforcement Mental Health and Wellness Act of 2017, Congress authorized the COPS Office to establish peer mentoring mental health and wellness pilot programs within state, tribal, and local law enforcement agencies. The 41 awards announced today meet the goals of the 2017 Act and support the Department of Justice and the Administration’s commitment to law enforcement. The full list of awards is available here: https://cops.usdoj.gov/pdf/2020AwardDocs/lemhwa/Award_List.pdf.
In addition to the grants announced today, the COPS Office recently published two reports regarding officer mental health and wellness. Those reports are available here:
- Law Enforcement Mental Health and Wellness Act Report to Congress
- Law Enforcement Mental Health and Wellness Programs: Eleven Case Studies
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For more information, please visit: https://cops.usdoj.gov/.
Statement from Attorney General William P. Barr on Cleveland Detective and Operation Legend Officer James Skernivitz who was Killed in Line of DutyRead the Press Release
Attorney General William P. Barr has issued the following statement:
“Today is a very sad day for the city of Cleveland and the entire law enforcement community. Overnight, Cleveland Division of Police Detective James Skernivitz was shot and killed in the line of duty. Detective Skernivitz was a 22-year veteran of the Cleveland Division of Police and a sworn Operation Legend task force officer assigned to the Federal Bureau of Investigation’s Violent Crimes Task Force.
Two weeks ago, I had the honor of visiting the unit where Detective Skernivitz was assigned. I was briefed on the critical work that he and his colleagues do to keep our streets safe from violent crime. Detective Skernivitz selflessly gave his life in this cause.
It takes a special kind of courage to be a police officer. Our men and women in blue put their lives on the line day after day in order to keep us safe. We will not forget Detective Skernivitz and his life of service and sacrifice. I send my heartfelt condolences to his wife, children, and family.”
Statement by Attorney General William P. Barr on the Tracking Down of Fugitive Michael Forest ReinoehlRead the Press Release
Attorney General William P. Barr has issued the following statement:
“Last Saturday, Aaron “Jay” Danielson was shot and killed amid the continuing violence in Portland. Local authorities subsequently obtained an arrest warrant for Michael Forest Reinoehl, a self-described Antifa member suspected of the alleged murder. Reinoehl fled to Washington State, where he was located yesterday by members of a fugitive task force led by the U.S. Marshals Service, the FBI, and state and local law enforcement partners. When Reinoehl attempted to escape arrest and produced a firearm, he was shot and killed by law enforcement officers.
The tracking down of Reinoehl — a dangerous fugitive, admitted Antifa member, and suspected murderer — is a significant accomplishment in the ongoing effort to restore law and order to Portland and other cities. I applaud the outstanding cooperation among federal, state, and local law enforcement, particularly the fugitive task force team that located Reinoehl and prevented him from escaping justice. The streets of our cities are safer with this violent agitator removed, and the actions that led to his location are an unmistakable demonstration that the United States will be governed by law, not violent mobs.”
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Eastern District of Missouri. Operation Legend launched in St. Louis on Aug. 6, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Troy Jackson
“The goal of Operation Legend is to take violent criminals off the streets so long term, community-wide efforts to make St. Louis a safer place can take hold,” said U.S. Attorney Jeff Jensen for the Eastern District of Missouri. “Troy Jackson is one of approximately 370 arrested so far. Many more arrests and charges will follow.”
Troy Jackson, 28, was indicted on Aug. 9, 2020, with being a felon in possession of a firearm, possession with intent to distribute the deadly opioid fentanyl, and possessing a firearm in furtherance of a drug trafficking crime.
According to charging documents, Jackson was wanted for first-degree murder and armed criminal action related to a homicide in June 2020; wanted for second and third degree assault arising from a separate incident; and on July 2, 2020, a felony arrest warrant was issued for Jackson for violating his parole stemming from a 2013 conviction for burglary.
It is alleged that an investigation into Jackson led investigators to a hotel in St. Louis on Aug. 9, 2020. Law enforcement officers, working with the U.S. Marshals Service, found Jackson at the hotel in a room holding the magazine of a Mossberg 9mm pistol, which was located nearby in a plain view on a table. While in the hotel room, law enforcement seized approximately five grams of fentanyl and drug paraphernalia, as well as the pistol.
Because of a previous felony conviction punishable by more than one year in prison, Jackson is prohibited from possessing firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime. The Department of Homeland Security is also contributing agents to these efforts in St. Louis. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 476 defendants charged with federal crimes.
Fraud Alert: Scammers Claiming to be with DOJ, Preying on ElderlyRead the Press Release
The Office of Justice Programs’ Office for Victims of Crime (OVC) has received multiple reports that individuals claiming to represent the Department of Justice are calling members of the public as part of an imposter scam. The department strongly encourages the public to remain vigilant and not to provide personal information during these calls, which appear to target the elderly.
Reports to the National Elder Fraud Hotline indicate these scammers falsely represent themselves as Department of Justice investigators or employees and attempt to obtain personal information from the call recipient, or they leave a voicemail with a return phone number. The return phone number directs users to a recorded menu that matches the recorded menu for the department’s main phone number. Eventually, the user reaches an “operator” who steers the user to someone claiming to be an investigator. That “investigator” then attempts to gain the user’s personal information.
“Phone scams are an ugly and pervasive act of victimization. The scams being reported to our National Elder Fraud Hotline are especially heinous because they show the perpetrators are preying upon one of the most vulnerable segments of our society – the elderly,” said OVC Director Jessica Hart. “As if this were not despicable enough, the scammers do so posing as employees of the Justice Department, usurping public trust in the agency that serves as a bastion of fairness and lawfulness while these scams exploit the elderly for financial gain. The first step to identifying these criminals is to have their crimes reported.”
Those who receive these calls are encouraged not to provide personal information and to report these scams to the FTC via their website or by calling 877–FTC–HELP (877-382-4357). Fraud can also be reported to the FBI for law enforcement action at https://www.justice.gov/criminal-fraud/report-fraud.
The National Elder Fraud Hotline is a resource created by OVC for people to report fraud against anyone age 60 or older. Reporting certain financial losses due to fraud as soon as possible, and within the first 2–3 days, can increase the likelihood of recovering losses. The hotline is open seven days a week. For more information about the hotline, please visit https://stopelderfraud.ovc.ojp.gov/.
Three Peruvian Men Sentenced to Significant Terms of Incarceration for Overseeing Call Centers That Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
Three Peruvian men have been sentenced to significant terms of incarceration for operating a large fraud and extortion scheme, the Department of Justice announced.
The three men managed and operated call centers based in Lima and Cajamarca, Peru, which used government impersonation, lies, and threats to steal money from thousands of Spanish-speaking victims in the United States.
Earlier today, U.S. District Judge Robert N. Scola sentenced Johnny Enso Hidalgo Marchan, 40, of Lima, Peru, to 100 months in federal prison for his role overseeing one of the Peruvian call centers. In sentencing Hidalgo, Judge Scola stated that it was “important to impose a significant sentence to deter people in other countries who think they can prey on people in the U.S. with impunity.” In June 2020, Judge Scola sentenced Francesco Guerra, 25, of Lima, Peru, to 90 months in federal prison, and, in March 2020, he sentenced Rodolfo Hermoza, 45, to 88 months in prison for their roles in the scheme. The three men were extradited from Peru in December 2019 and convicted of conspiring to commit mail fraud and wire fraud earlier this year.
“We are committed to pursuing transnational criminals who defraud U.S. consumers,” said Acting Assistant Attorney General Ethan P. Davis of the Justice Department’s Civil Division. “Disrupting transnational elder fraud schemes is an Agency Priority Goal for the Department of Justice. These prison sentences show that criminals responsible for threatening and defrauding U.S. consumers will be held to account.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Fajardo Orshan of the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from schemes, such as this one, is a top priority of this Office and the Department of Justice.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and go after those who deprive citizens of their hard earned money through the use of threats and other abusive tactics. The results of this investigation are an example of this determination and the dedicated partnership established with the Department of Justice’s Consumer Protection Branch,” said Inspector in Charge Antonio Gomez.
As part of their guilty pleas, Hidalgo, Hermoza, and Guerra admitted that they falsely posed as attorneys affiliated with U.S. courts and government agencies in threatening victims with fines, detention, confiscation of property, deportation, and community-service requirements to obtain payments from the victims. U.S. consumers lost more than $1.5 million to the defendants’ fraud scheme.
In addition to prison time, each defendant was also ordered to serve three years’ supervised release following their terms of incarceration and to make restitution payments to victims of their scheme.
Hidalgo, Hermoza, and Guerra managed and operated Peruvian call centers that, in partnership with an entity in Miami, Florida, used Internet-based telephone calls to lie to and threaten Spanish-speaking victims in the United States. The callers often falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that court proceedings would be brought against them. In reality, the victims—many of whom were elderly—had never ordered or received the products.
The defendants and other call center employees claimed that the consumers could resolve the supposed debts and avoid threatened consequences if they immediately paid a “settlement fee.” Consumers who contested the settlement fees were told that failure to pay could lead to harmed credit, arrest, deportation, or seizure of property.
At Guerra’s June 2 sentencing, Judge Scola described the defendants’ crimes as a “very serious offense” and noted that they preyed on many vulnerable victims and caused lasting psychological and emotional damage to the victims of their scheme. Judge Scola stated that a significant sentence was necessary to promote respect for the law and to deter others from engaging in similar conduct.
In addition to Hidalgo, Hermoza, and Guerra, two other individuals previously were brought to justice in connection with this scheme. In 2014, charges were brought against Angeluz and Maria Luzula of Miami and Juan Alejandro Rodriguez Cuya of Lima, Peru. Luzula pleaded guilty to all counts against her midway through trial and was sentenced to 165 months in prison. Rodriguez Cuya was convicted following a two-week trial. U.S. District Court Judge Patricia A. Seitz sentenced Rodriguez Cuya to 210 months in prison. With today’s sentencing by Judge Scola, all five defendants who have been charged in connection with this large-scale fraud and extortion scheme have now been sentenced to substantial terms of imprisonment.
The case was prosecuted by Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice Civil Division’s Consumer Protection Branch. U.S. Postal Inspection Service’s Miami Division investigated the case. The Justice Department’s Office of International Affairs of the department’s Criminal Division, the U.S. Attorney’s Office of the Southern District of Florida, the Department of State Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
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. Later, 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 likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars senior lose to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is by 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 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch.
Ready-Mix Concrete Company and Individuals Indicted for Fixing Prices and Rigging Bids in Violation of Antitrust LawsRead the Press Release
A federal grand jury returned an indictment against one company and four individuals for their roles in a long-running conspiracy to fix prices, rig bids, and allocate markets for ready-mix concrete in the greater Savannah, Georgia area, the Department of Justice announced today.
The indictment, returned in the U.S. District Court in Savannah, charges Evans Concrete, LLC; James Clayton Pedrick; Gregory Hall Melton; John “David” Melton; and Timothy “Bo” Strickland with conspiring to fix prices, rig bids, and allocate markets for the sale of ready-mix concrete used in residential, commercial, and public projects. Pedrick is also charged with making false statements, and Strickland is charged with making false statements and perjury.
“The charges continue the division’s efforts to prosecute those who cheat the American consumer by driving up prices of the building blocks of commercial enterprise in the United States,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “With support from our law enforcement partners, the Antitrust Division will hold accountable anyone who cheats the system by depriving customers of competitive pricing, as well as individuals who lie to investigating agents.”
“Activities related to illegal price-fixing, bid rigging, and market allocation do not promote an environment conducive to open competition. When this occurs, the consumer is not guaranteed the best products at the lowest prices,” said Acting Special Agent in Charge Steven Stuller, U.S. Postal Service Office of Inspector General. “The U.S. Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovation of U.S. Postal Service facilities that require concrete and other construction materials. Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”
“The charges illustrate the FBI’s dedication and ongoing efforts with our partners to ensure that U.S. markets remain free and open,” said Acting Assistant Director in Charge, James A. Dawson, FBI Washington Field Office. “The company and individuals charged all had an alleged role in a long-running conspiracy to fix prices and rig bids. The FBI will continue to investigate those who try to cheat the system and profit at the expense of consumers.”
“The stability of our free market depends on fair play from competitors, and when competing companies collude and conspire to illegally enhance their profits, consumers and taxpayers are penalized with higher prices,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “We applaud the actions of our law enforcement partners and the Department of Justice in helping to provide a level playing field for commerce in our district.”
Ready-mix concrete is a product comprised of ingredients including cement, aggregate (sand and gravel), water, and, at times, other additives. It is made on demand and, if necessary, delivered to work sites by concrete mixer trucks. Ready-mix concrete is purchased by do-it-yourself and commercial customers, as well as local, state, and federal governments, for use in various construction projects, including, but not limited to, sidewalks, driveways, bridges, tunnels, and roads.
According to the indictment, from as early as 2010 until approximately July 2016, the charged individuals, on behalf of their companies, participated in a conspiracy to fix prices, rig bids, and allocate markets for sales of ready-mix concrete. The conspirators submitted rigged bids and accepted payments for ready-mix concrete sold through contracts and on projects that were affected by the alleged conspiracy. In order to carry out the conspiracy, the conspirators used Pedrick as a conduit to exchange price-increase letters and other competitive information between the defendants and other co-conspirators for the purpose of coordinating price increases, rigging bids, and allocating jobs.
Timothy “Bo” Strickland was, at different times, owner, president, area manager, plant manager, and a salesperson for Evans. Gregory Melton was division manager of ready-mix concrete sales, and James Clayton Pedrick was a cement salesman, for a co-conspirator company. John David Melton was the general manager for another co-conspirator company. All of the defendants worked in the Savannah area.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a $100 million fine for corporations. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. The offenses of making false statements and perjury each carries a maximum penalty of 5 years in prison and a $250,000 fine.
The charges stem from an ongoing investigation by the Antitrust Division’s Washington Criminal II Section, the United States Postal Service Office of Inspector General, and the FBI’s Washington Field Office, with the assistance of the U.S. Attorney’s Office in Savannah, Georgia, and the Department of Transportation Office of the Inspector General. Anyone with information concerning price fixing, bid rigging, or other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Indictment: U.S. v. Evans Concrete LLC, et al
Operation Legend: Update on Federal ChargesRead the Press Release
On July 8, 2020, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The initiative is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.
Launched first in Kansas City, MO., on July 8, 2020, the operation was expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on August 6, 2020, and to Indianapolis on August 14, 2020.
Since the operation’s launch, through Monday, August 31, 2020, more than 2000 arrests – included 147 for homicide – have been made; more than 544 firearms have been seized; and more than seven kilos of fentanyl, 14 kilos of heroin, 12 kilos of cocaine, and 50 kilos of methamphetamine have been seized.
Of those individuals arrested, 476 have been charged with federal offenses. 249 of those defendants have been charged with firearms offenses, while 185 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses. The breakdown of federal charges is below.
Kansas City, MO.
99 defendants have been charged with federal crimes outlined below.
- 28 defendants have been charged with narcotics-related offenses;
- 60 defendants have been charged with firearms-related offenses; and
- 11 defendants have been charged with other violent crimes.
Chicago, Ill.
103 defendants have been charged with federal crimes outlined below.
- 27 defendants have been charged with narcotics-related offenses;
- 72 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Albuquerque, NM.
35 defendants have been charged with federal crimes outlined below.
- 15 defendants have been charged with narcotics-related offenses;
- 14 defendants have been charged with firearms-related offenses; and
- 6 defendants have been charged with other violent crimes.
Cleveland, OH.
54 defendants have been charged with federal crimes outlined below.
- 39 defendants have been charged with narcotics-related offenses;
- 13 defendants have been charged with firearms-related offenses; and
- 2 defendants have been charged with other violent crimes.
Detroit, MI.
41 defendants have been charged with federal offenses outlined below.
- 17 defendants have been charged with narcotics-related offenses;
- 21 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Milwaukee, WI.
15 defendants have been charged with federal crimes outlined below.
- 2 defendants have been charged with narcotics-related offenses;
- 12 defendants have been charged with firearms-related offenses; and
- 1 defendant has been charged with other violent crimes.
St. Louis, MO.
89 defendants have been charged with federal crimes.
- 44 defendants have been charged with narcotics-related offenses;
- 37 defendants have been charged with firearms-related offenses; and
- 8 defendants have been charged with other violent crimes.
Memphis, Tenn.
14 defendants have been charged with federal offenses.
- 3 defendants have been charged with narcotics-related offenses;
- 8 defendants have been charged with firearms-related offenses; and
- 3 defendants have been charged with other violent crimes.
Indianapolis, Indiana
26 defendants have been charged with federal crimes outlined below.
- 10 defendants have been charged with narcotics-related offenses;
- 12 defendants have been charged with firearms-related offenses; and
- 4 defendants have been charged with other violent crimes.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Northern District of Ohio. Operation Legend launched in Cleveland on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.
United States vs. Richard Woodard
“This defendant is alleged to have been associated with a heroin overdose, is accused of drug trafficking and was found in possession of multiple, loaded firearms at his home, often in the presence of a child,” said U.S. Attorney Justin Herdman for the Northern District of Ohio. “This case is a great example of what Operation Legend was designed to do – identify those illegally in possession of a firearm, drugs, or otherwise committing acts of violence and get them out of our communities to protect innocent lives.”
Richard Woodard, 41, of Cleveland, Ohio, was charged on Aug. 7, 2020, with drug distribution and being a felon in possession of a firearm.
According to the criminal complaint, an FBI-led investigation into a heroin overdose death in the city of Cleveland led law enforcement to Woodard. On Aug. 7, 2020, agents conducted surveillance of Woodard and observed him complete a heroin transaction. Later that day, law enforcement arrested Woodard in a parking lot in Cleveland for the earlier transaction. During a subsequent search warrant execution at Woodard’s apartment, law enforcement seized 60 grams of heroin, four firearms (three of which were loaded and in plain view), approximately $12,000, several boxes of ammunition, and multiple items commonly used to process and package illegal narcotics.
Because of a previous felony conviction punishable by more than one year in prison, Woodard is prohibited from possessing firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources into these cities to help state and local officials fight violent crime. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with 476 defendants charged with federal crimes.
Justice Department Issues Modernized Merger Remedies ManualRead the Press Release
The Department of Justice issued today the Merger Remedies Manual, which provides a framework for the Antitrust Division to structure and implement appropriate relief that preserves competition in merger cases. The Merger Remedies Manual updates the Antitrust Division’s 2004 Policy Guide to Merger Remedies.
“The modernized Merger Remedies Manual reflects our renewed focus on enforcing obligations in consent decrees and reaffirms the Division’s commitment to effective structural relief,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “It will provide greater transparency and predictability regarding the Division’s approach to remedying a proposed merger’s competitive harm.”
The Merger Remedies Manual is the first revision of the Antitrust Division’s remedies manual in nearly a decade and reflects important changes in the merger landscape over that time. The modernized document includes new sections explaining the approach that the division takes with consummated transactions and upfront buyers. In addition, the Merger Remedies Manual outlines certain “red flags” that in the division’s experience increase the risk that a remedy will not preserve competition effectively. Finally, the manual reflects important principles implemented in recent Antitrust Division consent decrees, such as when it may be appropriate to name the divestiture buyer as a party to the consent decree or when it may be appropriate that the divestiture include assets beyond the overlapping relevant markets.
The manual reflects the key elements of the Division’s approach to merger remedies.
Commitment to Effective Structural Relief. The Merger Remedies Manual emphasizes that structural remedies are strongly preferred in horizontal and vertical merger cases because they are clean and certain, effective, and avoid ongoing government regulation of the market. The manual also describes the limited circumstances in which conduct remedies may be appropriate: (1) to facilitate structural relief, or (2) if there are significant efficiencies that would be lost through a structural divestiture, if the conduct remedy would completely cure the competitive harm, and if it can be enforced effectively.
Renewed Focus on Enforcing Consent Decree Obligations. The principles outlined in the Merger Remedies Manual describe how the Antitrust Division will ensure that consent decrees are fully implemented. The manual describes several standard consent decree provisions designed to improve the effectiveness of consent decrees and the Antitrust Division’s ability to enforce them. In addition, the Manual highlights the role of the newly created Office of Decree Enforcement and Compliance, which oversees the Antitrust Division’s decree compliance efforts.
The Merger Remedies Manual also outlines the following key principles that apply to structuring and implementing remedies in all the Antitrust Division’s merger cases, both horizontal and vertical:
- Remedies must preserve competition.
- Remedies should not create ongoing government regulation of the market.
- Temporary relief should not be used to remedy persistent competitive harm.
- The remedy should preserve competition, not protect competitors.
- The risk of a failed remedy should fall on the merging parties, not on consumers.
- The remedy must be enforceable.
The Merger Remedies Manual is the culmination of a process first announced by Assistant Attorney General Delrahim in September 2018, when the division withdrew the 2011 Policy Guide to Merger Remedies and announced that the 2004 Policy Guide to Merger Remedies would be in effect pending the release of an updated policy.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Southern District of Indiana. Operation Legend launched in Indianapolis on Aug. 14, 2020 in response to the city facing record-breaking homicide and non-fatal shooting rates. In just the first two weeks, the operation has already yielded impactful results; federal, state, and local law enforcement agencies have seized 49 guns and arrested 18 fugitives.
United States vs. John Green
"The goal of Operation Legend is to provide neighborhoods where all the people of Indianapolis can safely live, work and raise their families," said U.S. Attorney Joshua Minkler for the Southern District of Indiana. "Federal agents working with the Indianapolis Metropolitan Police Department to remove a trigger puller and his illegally possessed firearms from our streets moves all of us one step closer to that goal."
John Green was charged on Aug. 8, 2020, with unlawful possession of a firearm by a convicted felon, according to a criminal complaint filed in Federal Court in the Southern District of Indiana. The Bureau of Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Indianapolis Metropolitan Police Department (IMPD) led the investigation.
According to the criminal complaint, on Aug. 8, 2020, IMPD was dispatched to an incomplete call where a female claimed to be shot. A witness described a black male wearing a black shirt and khaki pants shooting a firearm. IMPD officers identified John Green a block away. When the officers engaged him, Green advised that he did not have any firearms. After Green was located, the witness further described Green shooting a rifle in the air in his front yard. Authorities located two (2) spent rifle casings in Green’s front yard. An evidence technician reported to the scene and collected the two (2) spent .223 casings. The witness identified Green as the person shooting a rifle in the front yard while children were outside playing in the area.
IMPD advised Green that two (2) shell casings were found in his front yard and that a search warrant was being written for his residence. When IMPD asked Green if any firearms would be located in the residence and Green replied “no.”
Subsequently, Green told IMPD officers that they would find a 9mm and AR-15 in his home. A search warrant was obtained for Green’s residence and a Ruger AR-15 rifle and a Hi-Point 9mm were located inside. The rifle was loaded and the round in the chamber matched the ammunition from the casings in the front yard. Multiple additional rifle and pistol magazines were located in Green’s residence.
Because of a previous felony conviction punishable by more than one year in prison, Green is prohibited from possessing firearms.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri while he slept in his home.
Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020. As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshal Service, DEA and ATF to surge resources these cities to help state and local officials fighting violent crime. Since its inception, Operation Legend has yielded close to 1500 local, state, and federal arrests.
Court Finds Individual and Company Liable for Violating the Clean Water Act when Filling Sensitive Tidal Channels and MarshRead the Press Release
In an order issued Tuesday, the U.S. District Court for the Eastern District of California agreed with the Justice Department that John Sweeney and his company, Point Buckler Club LLC, committed “very serious” violations of the Clean Water Act associated with the construction of a nearly mile-long levee in sensitive tidal channels and marsh without a permit.
The violations occurred on Point Buckler Island, an island in the greater San Francisco Bay that Sweeney had purchased in 2011. More particularly, Point Buckler Island is part of the Suisun Marsh, the largest contiguous brackish water marsh remaining on the west coast of North America. The Island is located in a heavily utilized fish corridor and is critical habitat for several species of federally protected fish.
When Sweeney acquired the Island, nearly 40 acres of it supported and functioned as a tidal channel and tidal marsh wetlands system. As the court found, at that time Sweeney knew that Solano County, California, had zoned it as “Marsh Land.” Sweeney had also, by that time, sought and obtained a Clean Water Act permit for activities in other areas of the Suisun Marsh.
Beginning in 2014, without a permit, Sweeney excavated and dumped thousands of cubic yards of soil directly into the Island’s tidal channels and marsh. This unlawful conduct, the court found, eliminated tidal exchange, harmed aquatic habitat, and adversely impacted water quality. The court noted that the Island’s waters are “extremely acidic and saline.”
As the court’s order provides, further proceedings will be conducted to determine the appropriate remedy.
“We are pleased the court agreed that defendants committed serious Clean Water Act violations,” said Jonathan D. Brightbill, Principal Deputy Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division. “Point Buckler Island is part of a vital tidal marsh ecosystem, and the court’s decision serves to protect that. We look forward to the next phase of this important case.”
“We applaud the trial court’s decision to hold the defendants liable for their violations of the Clean Water Act, which resulted in serious damage and destruction to nearly 30 acres of tidal marsh located in the greater San Francisco Bay,” said Susan Bodine, Assistant Administrator for the Environmental Protection Agency’s Office of Enforcement and Compliance Assurance.
The case is styled United States of America v. John Donnelly Sweeney and Point Buckler Club, LLC, No. 2:17-cv-00112-KJM-KJN (E.D. Cal.). The court’s decision is available through the court’s website, www.caed.uscourts.gov.
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.
Assistant Attorney General Makan Delrahim Signs Antitrust Cooperation Framework with Australia, Canada, New Zealand, and United KingdomRead the Press Release
Today, Assistant Attorney General Makan Delrahim signed a new competition enforcement framework between the Department of Justice (DOJ), the Federal Trade Commission, and competition agencies in Australia, Canada, New Zealand, and the United Kingdom.
The Multilateral Mutual Assistance and Cooperation Framework for Competition Authorities (Framework) aims to strengthen cooperation between the signatories, and provides the basis for a series of bilateral agreements among them focused on investigative assistance, including sharing confidential information and cross-border evidence gathering.
Building on the antitrust agencies’ existing cooperation arrangements, the Framework includes a memorandum of understanding designed to reinforce and improve existing case coordination and collaboration tools among the agencies, and a model agreement. The model agreement is expected to serve as a template for subsequent agreements among signatories that would permit enhanced cooperation in both criminal and civil non-HSR matters. The framework recognizes that signatories will use best efforts to negotiate and implement bilateral agreements with one another based on the model agreement.
“The Framework sets a new standard for enforcement cooperation, strengthening our tools for international assistance and evidence gathering in the increasingly digital and global economy,” said Assistant Attorney General Delrahim. “We hope that it will provide a model for agencies around the world interested in enhancing international cooperation. DOJ looks forward to continuing this important work through the negotiation of the bilateral agreements contemplated in the Framework.”
Joining Assistant Attorney General Delrahim in signing the Framework were Chairman Joe Simons of the Federal Trade Commission, Chairman Rod Sims of the Australian Competition and Consumer Commission, Commissioner of Competition Matthew Boswell of Competition Bureau Canada, Chair Anna Rawlings of the New Zealand Commerce Commission, and Chief Executive Andrea Coscelli of the United Kingdom Competition and Markets Authority. Due to the Covid-19 pandemic, the agreement was signed separately in each jurisdiction in near-simultaneous fashion, allowing the agencies to come together virtually to reaffirm the importance of international cooperation even in these extraordinary times.
The U.S. antitrust agencies are authorized to enter into such agreements under the International Antitrust Enforcement Assistance Act of 1994 (IAEAA), and the U.S. agencies already have an IAEAA agreement with Australia from 1999.
The Department of Justice and the Federal Bureau of Investigation Announce Critical Reforms to Enhance Compliance, Oversight, and Accountability at the FBIRead the Press Release
The Department of Justice and the Federal Bureau of Investigation today announced key reforms that will empower the FBI to build a more robust internal compliance program and that will ensure, among other things, the accuracy of FISA applications, as well as the active oversight of applications targeting federal elected officials, candidates for federal elected office, and their staffs.
“Today, the Department of Justice and the Federal Bureau of Investigation press forward with Foreign Intelligence Surveillance reforms. In consultation with FBI Director Wray, I issued two memoranda — one that authorizes the establishment of an FBI Office of Internal Auditing and directs the FBI to undertake aggressive compliance measures, and the other that establishes protocols to ensure the accuracy of FISA applications and the effective oversight of any surveillance applications targeting elected officials and political campaigns,” said Attorney General William P. Barr. “FISA is a critical tool to ensuring the safety and security of Americans, particularly when it comes to fighting terrorism. However, the American people must have confidence that the United States Government will exercise its surveillance authorities in a manner that protects the civil liberties of Americans, avoids interference in the political process, and complies with the Constitution and laws of the United States. What happened to the Trump presidential campaign and his subsequent Administration after the President was duly elected by the American people must never happen again.”
“Since the Inspector General’s Crossfire Hurricane report was issued last December, I have made clear that it describes conduct that was unacceptable and unrepresentative of the FBI as an organization” said FBI Director Christopher Wray. “That’s why I immediately ordered more than 40 corrective actions, including foundational FISA reforms, many of which went beyond those recommended by the Inspector General. The FBI has been working diligently to implement these corrective actions. The additional reforms announced today, which we worked on closely with the Attorney General’s office, will build on the FBI’s efforts to bolster its compliance program. FISA is an indispensable tool that the FBI uses to protect our country from national security threats, and Americans can rest assured that the FBI remains dedicated to continuously strengthening our FISA compliance efforts and ensuring that our FISA authorities are exercised in a responsible manner.”
The first memorandum issued by the Attorney General is entitled Augmenting the Internal Compliance Functions of the Federal Bureau of Investigation. This memorandum makes significant improvements to the FBI’s internal compliance program. It authorizes the establishment of the Office of Internal Auditing to overcome a gap in auditing capability at the FBI and requires the development of compliance and oversight mechanisms, training, and internal controls to ensure the FBI’s compliance with applicable statutes, policies, procedures, and court orders that govern the FBI’s national security activities. The reforms also require the FBI to perform robust auditing functions, including, for example, routine audits of the FBI’s use of National Security Letters, compliance with the Foreign Intelligence Surveillance Act (FISA), and adherence to FISA’s minimization, targeting, and querying procedures.
The second memorandum is entitled Supplemental Reforms to Enhance Compliance, Oversight, and Accountability with Respect to Certain Foreign Intelligence Activities of the Federal Bureau of Investigation. The supplemental reforms in this memorandum build on the corrective measures undertaken by the FBI Director in his response to the December 2019 report of the Department of Justice Inspector General entitled Review of Four FISA Applications and Other Aspects of the FBI’s Crossfire Hurricane Investigation. These reforms are designed to ensure the accuracy and completeness of FISA applications targeting U.S. persons. The reforms also include oversight protocols to ensure that any use of FISA to surveil federal elected officials, candidates for federal elected office, or their advisors or staff is justified, non-partisan, and based on full and complete information. Finally, the memorandum requires the FBI to develop procedures to prevent United States persons from becoming unwitting participants in malign influence operations by foreign powers and to review its disciplinary policies and procedures to ensure appropriate disciplinary action for those who knowingly misrepresent facts to the Foreign Intelligence Surveillance Court.
Operation Legend: Case of the DayRead the Press Release
Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the District of New Mexico. Operation Legend was launched in Albuquerque on July 22, 2020, in response to the city facing a record-breaking homicide rate.
United States vs. Manuel A. Chavira
“Cases like this one are what Operation Legend is all about. The violent and unprovoked actions described in the complaint contribute to the growing perception that Albuquerque is a dangerous city in which violent crime continues unchecked and out of control,” said U.S. Attorney John C. Anderson for the District of New Mexico. “Operation Legend sends a strong message that federal law enforcement, working in concert with their state and local partners, will not stand idly by while the residents of Albuquerque live in fear of falling victim to senseless violence. I commend the FBI and the New Mexico State Police for their seamless investigation and diligent pursuit of this defendant.”
Manuel A. Chavira, 25, was charged on Aug. 3, 2020, with carjacking and discharging a firearm during and in relation to a crime of violence according to a criminal complaint filed in the U.S. District Court of New Mexico. The Federal Bureau of Investigation (FBI) and New Mexico State Police Department (NMSP) launched an investigation and search for Chavira. Chavira surrendered in Las Cruces, New Mexico, on Aug. 20, 2020.
According to the criminal complaint, on July 18, 2020, Chavira approached two female victims who were in their vehicle in the parking lot of a church at the San Jose De Armijo Cemetery in the South East area of Albuquerque. Chavira initially asked if he could charge his phone in the vehicle. As the phone would not charge, he asked to borrow the driver’s phone, ostensibly to find a tow truck for his vehicle. The driver complied, and he used the phone to make a number of calls.
After the driver exited her vehicle to remove a sweater from her trunk, however, Chavira brandished a firearm and told her that he needed to take her vehicle. The passenger protested, but the driver removed her keys from the ignition to give them to Chavira. Chavira reportedly then racked the slide on the firearm, an indication that he had chambered a round of ammunition. Chavira then pointed the firearm, shouting, “Do you want me to shoot her? Do you want me to shoot her?” Both victims fled, at which point they heard gunshots being fired.
The victims described the firearm as black and possibly .22 or .25 caliber. The victims were able to identify Chavira from photos as the suspect. Chavira left the scene driving the victims’ blue 2019 Honda Civic SI.
Background on Operation Legend
President Trump promised to assist America’s cities that have been plagued by violence. In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence. Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri while he slept in his home.Since Operation Legend’s launch in Kansas City, Mo., on July 8, 2020, it has expanded to Chicago and Albuquerque on July 22, 2020, to Cleveland, Detroit, and Milwaukee on July 29, 2020, to St. Louis and Memphis on Aug. 6, 2020, and to Indianapolis on Aug. 14, 2020, As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshal Service, DEA and ATF to surge resources these cities to help state and local officials fighting violent crime. Since its inception, Operation Legend has yielded close to 1500 local, state, and federal arrests.
Four Charged for Multi-Million Dollar Elder Fraud SchemesRead the Press Release
Four individuals responsible for mass-mailing fraud schemes were charged with allegedly defrauding thousands of elderly and vulnerable victims, the department announced today. Two U.S. individuals and two Canadian individuals were charged for their roles in operating the schemes, which collectively caused tens of millions of dollars in victim losses. Two defendants were charged in the Eastern District of New York and two defendants were charged in the District of Nevada.
“Fraud schemes are intolerable, especially those that harm our nation’s seniors,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “As Attorney General Barr made clear earlier this year when he announced record results in the 2020 Elder Fraud Sweep, the Department of Justice is committed to protecting seniors. These two cases illustrate that the Civil Division’s Consumer Protection Branch, together with partners at the Postal Inspection Service, will not stop until the scourge of elder fraud is defeated.”
“These charges demonstrate the Postal Inspection Service will relentlessly pursue these fraudulent schemes until they no longer arrive in your mailbox,” said Deputy Chief Inspector Craig Goldberg of the Postal Inspection Service. “Prize notices like these are mailed in an attempt to trick our elderly and vulnerable Americans, while the perpetrators attempt to hide their involvement around the corner or around the globe. We are committed, with the Department of Justice, to protect our older Americans.”
“These individuals mailed their fraudulent prize promotions to victims in blatant defiance of prior Postal Service consent orders and agreements that prohibited them from doing so. The fact that many of the victims were elderly and vulnerable makes the defendants’ conduct particularly egregious. The Postal Inspection Service will continue its efforts to protect the public from fraud schemes and bring the perpetrators of those schemes to justice,” said Inspector in Charge Philip R. Bartlett.
Two Long-Island Residents Indicted for Multi-Million Dollar Elder Fraud Scheme
An indictment unsealed today charges Long Island residents Sean Novis, 50, and Gary Denkberg, 57, with conspiracy to commit mail fraud and multiple mail fraud and wire fraud counts for running a fraudulent mass-mailing scheme that tricked thousands of consumers into paying fees for falsely promised prizes. Novis and Denkberg made their initial appearances in U.S. District Court for the Eastern District of New York after they were arrested by United States Postal Inspectors Monday morning.
The indictment alleges that, from January 2003 to September 2016, the defendants mailed hundreds of thousands of prize notices that represented that victims were specially chosen to receive a large cash prize and would receive the prize if they paid a small fee. Victims who paid the requested fee, however, did not receive the promised cash prize. Although the notices appeared to be personalized correspondence, they were merely mass-produced, boilerplate documents that were bulk mailed to recipients whose names and addresses were on mailing lists.
According to the indictment, Novis and Denkberg continued to operate their fraudulent mass-mailing scheme in violation of United States Postal Service cease-and-desist agreements and consent orders that they agreed to in 2012. The agreements and orders had permanently barred the defendants from mailing fraudulent prize notices.
Each charge in this case carries a statutory maximum sentence of twenty years in prison, and a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Artie DeCastro and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch. The Consumer Protection Branch thanks the U.S. Attorney’s Office for the Eastern District of New York for its assistance in this case.
Canadian Nationals Charged For Long-Running Elder Fraud Schemes
In a separate indictment filed on August 5 in the District of Nevada, Canadian nationals Alex Quaglia and Patrick Fraser were charged with mail fraud and conspiracy to commit mail fraud in connection with schemes to defraud consumers by sending deceptive mailing pieces that falsely promised large cash prizes in exchange for payment of a fee. Many of the victims were elderly. The solicitations were sent using fictitious names and were designed to deceive recipients into believing that they had won hundreds of thousands or millions of dollars. To claim their winnings recipients were directed to pay a small fee. In fact, there was no cash prize sent to victims, and Quaglia, Fraser and their co-conspirators pocketed the money sent by victims.
“As alleged in the indictment, victims in Nevada, across the country, and around the world were defrauded of money in connection with the defendants’ schemes,” said U.S. Attorney Nicholas A. Trutanich for the District of Nevada. “Working with our Postal Inspectors and other law enforcement partners, we will identify, investigate, and prosecute criminals – both foreign and domestic – who prey on our seniors and other vulnerable Nevada residents. These fraud schemes can happen to anyone.”
The scheme allegedly caused millions of dollars in losses to thousands of victims. Quaglia was charged with one conspiracy to commit mail fraud count and seven counts of mail fraud. Quaglia’s scheme is alleged to have begun as early as 2000. Fraser was charged with conspiracy to commit mail fraud with Quaglia and with a separate conspiracy charge related to a similar scheme he orchestrated after breaking away from Quaglia’s operation in 2015. Fraser was also charged with six counts of mail fraud. Each charge of the indictment carries a statutory maximum sentence of twenty years in prison along with a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense.
The United States Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Matt Lash and Yolanda McCray Jones of the Department of Justice Civil Division’s Consumer Protection Branch with substantial assistance from Assistant U.S. Attorney Nicholas Dickinson from the U.S. Attorney’s Office for the District of Nevada. The Criminal Division’s Office of International Affairs has also provided critical support.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. The defendant should be presumed innocent unless and until proven guilty.
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 particular, 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 likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
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 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorneys’ Offices for the Eastern District of New York and District of Nevada visit their websites at www.justice.gov/usao-edny and www.justice.gov/usao-nv.