District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Statement from Assistant Attorney General Stephen E. Boyd Expressing Support for Congressional Efforts to Expedite Payment of Public Safety Officer Benefits to First Responders Who Contract COVID-19Read the Press Release
Assistant Attorney General Stephen E. Boyd issued the following statement in support of efforts to streamline payments under the Public Safety Officer Benefit Program (PSOB) to public safety officers fatally injured while working during COVID-19:
“The Department of Justice is honored to review the more than 1,000 claims submitted to the PSOB Program each year on behalf of America's fallen and injured public safety heroes and their loved ones. With the recent outbreak of COVID‐19, America’s law enforcement officers, firefighters, and other first responders face a new health risk as they continue to selflessly serve their communities. The department supports congressional efforts to provide for expeditious resolution of claims for public safety officers who contract COVID-19 while working during this challenging time. The department has provided technical assistance on the Senate legislation and stands ready to continue to assist Congress in their efforts on behalf of these brave community heroes.”
Background:
The PSOB program provides death benefits to the eligible survivors of public safety officers who are fatally injured in the line of duty. Infectious diseases, viruses, and bacteria currently may be found to be an injury sustained in the line of duty. The program also provides disability benefits to public safety officers catastrophically injured in the line of duty, and education benefits to the eligible spouses and children of fallen and catastrophically injured officers.
As the PSOB Office receives claims based on COVID‐19 exposure, it will work closely with survivors, officers, and agencies. For questions regarding the PSOB Program or filing a claim, please visit PSOB’s online portal at www.psob.gov.
Justice Department Settles with Staffing Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it has reached a settlement with Randstad North America Inc. (Randstad), a global staffing agency with offices throughout the United States and a headquarters in Atlanta, Georgia. The settlement resolves the department’s claims that the staffing company’s South Plainfield, New Jersey location, violated the Immigration and Nationality Act (INA) by discriminating against lawful permanent residents when verifying their work authorization.
“Staffing agencies must properly train their employees not to require more or different work authorization documents than specified by law, because of a worker’s citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend Randstad for its commitment to ensuring that its hiring and onboarding activities comply with this law.”
Based on its investigation, the department concluded that Randstad’s South Plainfield location repeatedly discriminated against lawful permanent residents by requiring them to present specific documents, such as Permanent Resident Cards, even when they had presented sufficient documentation to prove their work authorization.
The investigation began because a lawful permanent resident filed a complaint with the department. The department also determined that the South Plainfield location subjected her to this discriminatory practice on two occasions and refused to hire her based on her citizenship status, even though she was authorized to work.
Under the terms of the settlement agreement, Randstad will pay a civil penalty of $135,000 for its unlawful document requests to lawful permanent residents and provide $909 in back pay to the worker who lost wages when she was turned away from the job. Additionally, Randstad will train its relevant South Plainfield location employees about the requirements of the INA’s anti-discrimination provision, including using a training assessment and attending a webinar provided by the Division’s Immigrant and Employee Rights Section (IER).
IER is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Generic Pharmaceutical Company Admits to Fixing Price of Widely Used Cholesterol MedicationRead the Press Release
Apotex Corp., a generic pharmaceutical company headquartered in Florida, was charged with fixing the price of the generic drug pravastatin, the Department of Justice announced today. According to the one-count felony charge filed in the U.S. District Court for the Eastern District of Pennsylvania in Philadelphia, Apotex and other generic drug companies agreed to increase and maintain the price of pravastatin, a commonly prescribed cholesterol medication that lowers the risk of heart disease and stroke. The conspiracy began in May 2013 and continued through December 2015.
The Antitrust Division also announced a deferred prosecution agreement (DPA) resolving the charge against Apotex. The company agreed to pay a $24.1 million criminal penalty and admit that it conspired with other generic drug sellers to artificially raise the price of pravastatin. The single count charges that Apotex communicated with competitors about the price increase and subsequently refrained from submitting competitive bids to customers that previously purchased pravastatin from a competing company. Under the DPA, Apotex has agreed to cooperate fully with the Antitrust Division’s ongoing criminal investigation. As part of the agreement, the parties will file a joint motion, which is subject to approval by the court, to defer for the term of the DPA any prosecution and trial of the charges filed against the defendant.
“Now, more than ever, we recognize and appreciate the importance of life-saving medications,” said Assistant Attorney General of the Department of Justice Antitrust Division, Makan Delrahim. “When the makers of those medications conspire to raise prices for profit, the most vulnerable among us suffer. That’s why we at the Antitrust Division are committed to pursuing the prosecution of antitrust crimes by the generic pharmaceutical industry.”
“During these difficult times, it is more important than ever that our pharmaceutical companies conduct business with the well-being of the consumer in mind,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “When generic drug companies conspire to fix prices and rig bids, they do so to the detriment of many who depend on these medications to maintain good health. Along with the Department of Justice Antitrust Division and our partners at the Federal Bureau of Investigation, the USPS Office of Inspector General will remain committed to investigating those who would engage in this type of harmful conduct.”
“Today’s announcement demonstrates that the FBI is dedicated to enforcing the law and investigating those who choose to collude at the expense of innocent Americans. The public should not have to pay a higher price for necessary medications because of corporate greed,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “During these uncertain times, we know that access to life-saving medication is of the utmost importance. The FBI, along with our partners, are focused on investigating and bringing those responsible to justice, on behalf of the American public.”
“Compromising the health and welfare of innocent people by artificially inflating the price of a much needed medication is not only morally wrong, but illegal,” said U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania. “Preying on the public in this manner for the sake of financial gain is something that must be rooted out of the pharmaceutical industry. We will continue to hold accountable any company that engages in this type of conduct.”
Apotex is the fourth company to be charged in connection with antitrust violations in the generic pharmaceutical industry. The previous three corporate charges were resolved by deferred prosecution agreements. Four individuals have also been charged. Three entered guilty pleas and the fourth is awaiting trial.
The charged offense carries a statutory maximum penalty of a $100 million fine per count for corporations, which may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $100 million.
The charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the generic pharmaceutical industry, which is being conducted by the Antitrust Division with the assistance of the U.S. Postal Service Office of Inspector General, the FBI’s Washington Field Office, the FBI’s Philadelphia Field Office, and the U.S. Attorney’s Office for the Eastern District of Pennsylvania. Anyone with information on market allocation, price fixing, bid rigging, and other anticompetitive conduct related to the generic pharmaceutical industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.
El Departamento de Jusiticia Llega a un Acuerdo con una Agencia de Empleo que Resuelve unas Denuncias de Discriminación Releacionada con la InmigraciónRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Randstad North America, Inc. (Randstad), una agencia de empleo internacional con oficinas por todo Estados Unidos y con sede en Atlanta, Georgia. El acuerdo resuelve las demandas interpuestas por el Departamento que mantienen que la oficina de la agencia de empleo que está ubicada en South Plainfield, Nueva Jersey vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a residentes permanentes legales al verificar su autorización para trabajar.
«Agencias de empleo deben capacitar adecuadamente a sus empleados instruyendoles a no requerir documentos de autorizacion para trabajar adicionales o diferentes a los que la Ley especifica por motivos del estatus de ciudadanía de un trabajador», afirmó Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «Felicitamos a Randstad por su compromiso de garantizar que sus actividades de contratación e incorporación cumplen con esta ley».
Con base en su investigación, el Departamento concluyó que la oficina de Randstad en South Plainfield discriminó habitualmente a residentes permanentes legales al requerir que presentasen documentos innecesarios y específicos, tales como tarjetas de residente permanente, incluso cuando ya habían presentado suficiente documentación como para demostrar su autorización para trabajar.
La investigación comenzó porque un residente permanente legal presentó una demanda ante el Departamento. El Departamento también determinó que la oficina en South Plainfield la había sujeto a esta práctica discriminatoria en dos ocasiones y que se había negado a contratarla por motivos de su estatus de ciudadanía, a pesar de disponer de autorización para trabajar.
Conforme los términos del acuerdo conciliatorio, Randstad pagará una sanción civil que asciende a 135.000 $ por pedir documentos ilegalmente a residentes permanentes legales y ofrecerá $909 por concepto de pagos retroactivos a la trabajadora que perdió su sueldo al ser denegado el trabajo. Además, Randstad capacitará a los empleados relevantes de su oficina en South Plainfield acerca de los requisitos de la disposición antidiscriminatoria de la INA, lo que incluye usar una evaluación de capacitación y participar en un seminario en línea brindada por la Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la DIvisión.
La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en su estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas; las represalias o la intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias puedenpresentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected] o visitar la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery .
California Hand Sanitizer Company Ordered to Stop Marketing Unapproved New DrugsRead the Press Release
A federal court ordered a California company to stop distributing hand sanitizer products that are unapproved new drugs, the Justice Department announced today.
In an order entered on May 4, 2020, U.S. District Judge David O. Carter of the Central District of California enjoined Innovative BioDefense Inc., of Lake Forest, California, along with company CEO Colette Cozean and distributor Hotan Barough, from distributing “Zylast” hand sanitizer products until the company obtains U.S. Food and Drug Administration (FDA) approval or removes disease-specific claims from its product labeling. Judge Carter entered his order following eight days of trial.
“Consumers are entitled to drug labeling that complies with the law,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice works closely with the FDA to ensure that manufacturers lawfully comply with the drug approval process.”
In a 2018 complaint, the United States alleged that the defendants distributed Zylast products in violation of the Federal Food, Drug, and Cosmetic Act (FDCA). According to the complaint, the defendants marketed their products as being effective against infection by pathogens such as the norovirus, rhinovirus, rotavirus, flu virus, Methicillin-Resistant Staphylococcus Aureus bacteria and Ebola virus, despite a lack of proof of the products’ safety and effectiveness for such uses and no approval from the FDA. The court found that the defendants’ violations of the FDCA were persistent and recurrent.
The Zylast product line includes Zylast Broad Spectrum Antimicrobial Antiseptic, Zylast XP (Extended Protection) Antiseptic Lotion and Zylast XP (Extended Protection) Antiseptic Foaming Soap.
The defendants distributed their Zylast products through the internet directly to consumers. According to the complaint, the Zylast website, www.zylast.com, featured a “Buy Now” button that linked consumers to a second website, zylastdirect.com, where customers could purchase the products. Along with these websites, the court also found that a new webpage that IBD launched during trial, www.zylastpro.com, also contained disease-specific claims.
“American consumers rely on the FDA to ensure that their drugs are safe and effective. Products with fraudulent claims to prevent or treat serious or life-threatening diseases puts consumers health at risk,” said Stacy Amin, FDA Chief Counsel. “When we cannot achieve voluntary compliance, we are fully committed to working with the Department of Justice to take appropriate action against those that subvert FDA requirements and jeopardize the health of Americans.”
The case was handled by Trial Attorneys Jason Lee, Jim Nelson, Douglas Ross, Claude Scott, and Sarah Williams of the Civil Division’s Consumer Protection Branch, with the assistance of the U.S. Attorney’s Office for the Central District of California and Associate Chief Counsel for Enforcement Yen Hoang and James Fraser of FDA’s Office of the Chief Counsel.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch.
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's Statement on Missing and Murdered American Indians and Alaska Natives Awareness DayRead the Press Release
Attorney General William P. Barr issued the following statement:
“American Indian and Alaska Native people have suffered injustices for hundreds of years, including today’s rampant domestic and sexual violence carried out primarily against women and girls. Today, President Trump has proclaimed a day to remember all those missing and lost to this unacceptable violence. Through the Presidential Task Force – co-chaired by Katie Sullivan, who heads our Office of Justice Programs – and in partnership with Tribal Nations, we are all committed to ending this cycle of violence. To that end, we have brought unprecedented resources to support public safety and victim services, including $270 million in grant funding in fiscal year 2019. The department is also hiring 11 coordinators to consult with tribes and develop common protocols to address this scourge of violence. From this day forward, today’s proclamation marks a time for all of us to honor Native Americans who have been lost and rededicate ourselves to what President Trump has called ‘our mission to bring healing, justice, hope, and restoration’ to American Indian and Alaska Native communities.”
U.S. Repatriates over $311.7 Million in Assets to the Nigerian People that were Stolen by Former Nigerian Dictator and His AssociatesRead the Press Release
The Department of Justice announced today that it has transferred $311,797,876.11 to the government of the Federal Republic of Nigeria (Nigeria) in accordance with a Feb. 3, 2020, trilateral agreement among the governments of the United States, Nigeria and the Bailiwick of Jersey (Jersey) to repatriate assets the United States forfeited that were traceable to the kleptocracy of former Nigerian dictator Sani Abacha and his co-conspirators.
In 2014, U.S. District Judge John D. Bates for the District of Columbia entered judgment forfeiting approximately $500 million located in accounts around the world, as the result of a civil forfeiture complaint the Department of Justice filed against more than $625 million traceable to money laundering involving the proceeds of Abacha’s corruption. After appeals in the United States were exhausted in 2018, the government of Jersey enforced the U.S. judgment against the funds located in that jurisdiction.
The forfeited assets represent corrupt monies laundered during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions from the government of Nigeria and others, then laundered their criminal proceeds through U.S. financial institutions and the purchase of bonds backed by the United States. Jersey’s cooperation in the investigation, restraint and enforcement of the U.S. judgment, along with the valuable contributions of Nigeria and other law enforcement partners around the world, have been instrumental to the recovery of these funds.
Under the trilateral agreement signed in February, the United States and Jersey agreed to transfer 100 percent of the net forfeited assets to the Federal Republic of Nigeria to support three critical infrastructure projects previously authorized by the Nigerian government. Specifically, under this agreement, the recovered funds will help finance the construction of critical infrastructure in key economic zones to include the Second Niger Bridge, the Lagos-Ibadan Expressway and the Abuja-Kano road. These investments will benefit all of the Nigerian people.
The agreement includes key measures to ensure transparency and accountability, including administration of the funds and projects by the Nigeria Sovereign Investment Authority (NSIA), financial review by an independent auditor, and monitoring by an independent civil society organization with expertise in engineering and other areas. The agreement also precludes the expenditure of funds to benefit alleged perpetrators of the corruption or to pay contingency fees for lawyers. The agreement reflects the sound principles for ensuring transparency and accountability in the return and disposition of recovered assets adopted at the Global Forum on Asset Recovery (GFAR) in December 2017 in Washington, D.C., which the United States and the United Kingdom (UK) hosted with support from the Stolen Asset Recovery Initiative of the World Bank and the United Nations Office on Drugs and Crime.
In addition to the more than $311.7 million forfeited in Jersey, the Department of Justice is seeking to enforce its forfeiture judgment against approximately $30 million located in the UK and over $144 million in France. The United States continues to seek forfeiture of over $177 million in additional laundered funds held in trusts that name Abacha associate Abubakar Atiku Bagudu, the current governor of Kebbi State, and his relatives as beneficiaries.
The United States entered into the trilateral agreement to repatriate the Jersey assets because of its longstanding commitment to recover asset for the benefit of the people of countries harmed by corruption and the important safeguards embodied in the agreement. The transfer announced today demonstrates the U.S. commitment to asset recovery and responsible repatriation, consistent with its obligations under the trilateral agreement.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section working in partnership with the FBI. Through the Kleptocracy Asset Recovery Initiative, the Department of Justice and federal law enforcement agencies seek to safeguard the U.S. financial system from criminal money laundering and to recover the proceeds of foreign official corruption. Where appropriate and possible, the department endeavors to use recovered corruption proceeds to benefit the people harmed by acts of corruption and abuse of public trust.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected]. The Criminal Division’s Office of International Affairs provided significant assistance. The department appreciates the extensive assistance provided by the governments of Jersey, Nigeria and the UK in this investigation.
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.
Cengage and McGraw-Hill Terminate Merger Agreement in Response to Antitrust ConcernsRead the Press Release
Cengage Learning Holdings II Inc. and McGraw-Hill Education Inc. mutually agreed to abandon their plans to merge after the Department of Justice informed the companies it had serious concerns that the proposed transaction, as structured, would harm competition.
The merger would have combined the second and third largest publishers of textbooks in the United States in a market long dominated by three major textbook publishers. “American students were our primary concern when evaluating the possible competitive effects of this deal,” said Assistant Attorney General Makan Delrahim of the department’s Antitrust Division. “The decision to abandon this merger preserves competition in the market for textbook publishing, an important industry in the education sector. Cengage and McGraw-Hill’s decision to abandon this merger also preserves innovation, as the two firms compete aggressively in the development of courseware technology.”
McGraw-Hill, headquartered in New York City, is the second-largest publisher of course materials in higher-education, which include physical textbooks, e-books, and digital courseware. McGraw-Hill is a private company, owned by a private equity fund operated by Apollo Global Management LLC.
Cengage is a publicly-traded company that is headquartered in Boston, Massachusetts. It is the third-largest publisher for higher-education course materials, which includes physical textbooks, e-books, and courseware.
Statement from Assistant Attorney General Makan Delrahim on Sabre and Farelogix Decision to Abandon MergerRead the Press Release
Sabre Corporation and Farelogix, Inc. announced today the termination of their merger agreement.
The Department of Justice filed a civil antitrust lawsuit on Aug. 20, 2019, to block Sabre’s $360 million acquisition of its disruptive rival Farelogix to preserve the significant head-to-head competition between these two companies that has substantially benefitted airlines and consumers.
Following an eight-day bench trial before the Honorable Leonard P. Stark in the U.S. District Court for the District of Delaware, the District Court on April 7 denied the department’s request to block the merger, ruling that it was bound by the Supreme Court’s decision in Ohio v. American Express Co., 138 S. Ct. 2274 (2018) (Amex), to hold that Sabre and Farelogix do not compete in a relevant market despite the District Court’s own factual findings that Sabre and Farelogix do compete. Just two days after the District Court issued its opinion, however, the United Kingdom’s Competition & Markets Authority (CMA) found the deal unlawful under U.K. competition law.
“The United Kingdom’s CMA decision to block Sabre’s acquisition of Farelogix confirms our view that the merger was anticompetitive,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “We were disappointed with the District Court’s application of Amex to this merger case. We already had filed a protective notice to appeal to preserve our appellate options and now are considering whether to move to vacate the District Court’s opinion in light of the Defendants’ decision to terminate their deal.”
President’s Commission on Law Enforcement and the Administration of Justice Completes Teleconferences on Reentry and Grant ProgramsRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice completed its hearings on reentry, with panels on getting back to work and transitioning from institution to community. The Commission also hosted a hearing on grant programs, featuring perspectives from the field. The hearings were held over three days via teleconference. Each teleconference featured expert witnesses who provided testimony and, subsequently, answered questions from the Commissioners.
On Tuesday, April 28, the Commission received testimony from BJay Pak, United States Attorney for the Northern District of Georgia; Nate Brown, Director of Programs for the Oklahoma Department of Corrections, and; John Wetzel, Secretary of the Pennsylvania Department of Corrections
Testimony and discussions focused on returning to work after incarceration. U.S. Attorney Pak discussed adapting the Credible Messenger program to reentry. “Prior to release, participants in the [correctional] facility complete classes in job training, soft skills & financial literacy.” Mr. Brown testified that, “the stigma of a felony conviction and its long term effects can be crippling. It is the goal of everyone invested in reentry to help these men and women overcome these issues for themselves, their families and their communities.” Secretary Wetzel provided the final testimony of the day, urging the Commission to look at re-entry as a continuum and a process that begins at a person’s entry into a correctional facility.
On Wednesday, April 29, the Commission concluded its hearing on reentry with testimony from Tim Johnson, Founder and President of the Orlando Serve Foundation; Jay Sanders, Assistant Commissioner for the Georgia Criminal Justice Coordinating Council; Steven Perkins, Warden for the Georgia Department of Corrections Metro Reentry Facility, and; Jean Wright II., Psy.D. Director of Behavioral Health and Justice Related Services for the Philadelphia Department of Behavioral Health and Intellectual disability Services
Testimony and discussion focused on transitioning from incarceration to the community. Mr. Johnson spoke about his organization, Orlando Serve Foundations. “Through our events and our focus on compassionate restorative social justice, we are influencing change within the criminal justice system, improving the community relations with law enforcement, and helping to lift people out of poverty…” Assistant Commissioner Sanders discussed the efforts the Georgia prison system is taking to reduce recidivism rates. “Every individual that enters the Georgia prison system is assessed for their risk and needs using the Next Generation Assessment (NGA). The NGA is a proprietary assessment tool… [that] uses over 300 factors about the offender…” Warden Perkins explained: “It is important to positively affect thinking patterns and behaviors prior to release in order to help these individuals refrain from recidivating. Reentry begins at the time of sentencing, and the purpose of Metro [Reentry Facility] is to put into play the best practices and enhance them as we prepare these men to reenter society – ready to face the challenges that may come, knowing that they can handle whatever they may face and do so successfully.” Dr. Wright testified to the importance of family in breaking the cycle of crime. “We need to develop more creative reentry/reintegration programs that address the myriad of social determinants that impact whether a child has access to both parents, especially access to fathers, even if/when incarceration plays a key role in the reason for separation.”
On Thursday, April 30, the Commission held its hearing on grant programs with testimony from Jennifer Brinkman, Assistant Director of Criminal Justice Programs, Tennessee Department of Administration and Finance; Jackson County (Texas) Sheriff J. Louderback, and; Redondo Beach (Calif.) Police Chief Keith Kauffman.
Testimony and discussion focused on perspectives from the field. Assistant Director Brinkman testified that the grant process can be time consuming and arduous for many applicants. She recommends streamlining the application and reporting process across federal agencies and programs. Sheriff Louderback also stressed the need to simplify the grant process. There are tremendous reporting requirements, the applications are too long, and the wait, which can be eight months or a year, is not efficient. Chief Kauffman reinforced the complexity of writing grants – that they are time consuming and constantly pull him away from his law enforcement duties; however, grants also propel him, because they allow law enforcement agencies to do their jobs better.
For more information on the Commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice.
Audio recordings and transcripts of the hearings will be posted online once available.
Owner of U.S. Navy Husbanding Services Provider Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
The owner and Chief Executive Officer of a Republic of Korea–based company, DK Marine, that provided ship husbanding services to the U.S. Navy pleaded guilty today for his role in a bribery conspiracy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge David Bell of the Naval Criminal Investigative Service’s (NCIS) Far East Field Office, and Special Agent in Charge Stanley A. Newell of the Defense Criminal Investigative Service’s (DCIS) Transnational Operations Field Office made the announcement.
Sung Yol “David” Kim, 49, a citizen of the Republic of Korea, pleaded guilty to one count of conspiracy to commit bribery before U.S. District Judge Mark A. Goldsmith of the Eastern District of Michigan. Sentencing has been scheduled for Nov. 17, 2020, before Judge Goldsmith.
Pursuant to his guilty plea, Kim admitted that between October 2013 and January 2014, Kim conspired with James Russell Driver III, a civilian U.S. Navy cargo ship captain, and another civilian U.S. Navy employee to have Kim and his company provide husbanding services for Driver’s ship during a December 2013 port visit in Chinhae, Republic of Korea, in violation of appropriate U.S. Navy husbanding procedures. Driver also provided Kim with confidential and other proprietary, internal U.S. Navy information. In exchange, Kim paid bribes to Driver, including personal travel expenses for Driver and his family. Driver pleaded guilty for his role in the conspiracy in March 2019.
NCIS and DCIS investigated the case. Trial Attorney Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section is prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department and the State of Arkansas Settle Claims over Opportunities to Update Voter RegistrationRead the Press Release
WASHINGTON - The Justice Department announced today that it has entered an agreement with the state of Arkansas to resolve claims that the state did not provide certain opportunities to update voter registration records as required by Section 5 of the National Voter Registration Act of 1993 (NVRA).
Section 5 of the NVRA requires states to provide voter registration opportunities for federal elections when eligible citizens apply for or seek to renew their driver’s license or other identification documents through state motor vehicle offices. Section 5 also requires states to update voter registration records when registrants update the address associated with a driver’s license or other identification document, unless the registrant indicates otherwise.
The Justice Department’s investigation found that Arkansas did not comply with certain NVRA address-update requirements. Procedures by which citizens notified motor vehicle authorities online or by mail that their address had changed did not serve as notification of a change of address for voter registration purposes, as the NVRA requires.
“Since our founding as a republic, the right to vote has distinguished the United States from undemocratic regimes around the world. Dictators, monarchs, emperors, and tyrants have no place here. We rule ourselves. One way we do so is by making sure that voter registration information is accurate,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Civil Rights Division commends the state of Arkansas for working with the division to ensure that Arkansas’s citizens have the opportunity to update their voter registration information easily and conveniently through motor vehicle agencies, as required by the National Voter Registration Act.”
Under the terms of the settlement, Arkansas will ensure that all change of address information submitted for driver’s license purposes will be used to update voters’ address information, unless voters decline to update their voter registration.
More information about the NVRA and other federal voting rights laws is available on the Department of Justice website at https://www.justice.gov/crt/voting-section. Complaints about voter registration practices may be reported to the Civil Rights Division at 1-800-253-3931.
Justice Department Requires Divestitures as Dean Foods Sells Fluid Milk Processing Plants to DFA out of BankruptcyRead the Press Release
The Department of Justice announced today the conclusion of its investigation into proposed acquisitions by Dairy Farmers of America Inc. (DFA) and Prairie Farms Dairy Inc. (Prairie Farms) of fluid milk processing plants from Dean Foods Company (Dean) out of bankruptcy. The department’s investigation was conducted against the backdrop of unprecedented challenges in the dairy industry, with the two largest fluid milk processors in the U.S., Dean and Borden Dairy Company, in bankruptcy, and Dean faced with imminent liquidation.
The department’s Antitrust Division, along with the offices of the Massachusetts and Wisconsin attorneys general (Plaintiff States), filed a civil antitrust lawsuit today in the U.S. District Court for the Northern District of Illinois to block DFA’s proposed acquisition of three fluid milk processing plants from Dean, which are located in northeastern Illinois, Wisconsin, and New England. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit through the divestiture of plants located in in Harvard, Illinois; De Pere, Wisconsin; and Franklin, Massachusetts, as well as associated equipment and other assets related to fluid milk production, to an acquirer or acquirers approved by the U.S. During its investigation, the department also expressed concerns to DFA and Dean about the potential loss of competition if DFA were to acquire a number of Dean’s fluid milk processing plants in the Upper Midwest, and DFA subsequently ceased its efforts to acquire those plants.
The department is also closing its investigation into Prairie Farms’ proposed acquisition of fluid milk processing plants from Dean in the South and Midwest after concluding that the plants at issue likely would be shut down if not purchased by Prairie Farms because of Dean’s distressed financial condition and the lack of alternate operators who could timely buy the plants.
“This is a tumultuous time for the dairy industry, with the two largest fluid milk processors, Dean and Borden Dairy Company, in bankruptcy, and a pandemic causing demand for milk by schools and restaurants to collapse. In the face of these challenges and Dean’s worsening financial condition, the department conducted a fast but comprehensive investigation, and our actions today preserve competition for fluid milk processing in northeastern Illinois, Wisconsin, and in New England,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “In addition, the closing of the department’s investigation into Prairie Farms’ acquisition will preserve necessary outlets for dairy farmers and keep milk on consumers’ refrigerator shelves by keeping the plants in operation.”
“I am very happy that we’ve been able to help protect competition in the dairy industry here in Wisconsin,” said Wisconsin Attorney General Joshua L. Kaul. “While strong competition in the market is always important, it’s incredibly important now, as we’re living through a pandemic. Our supply chain must have robust competition to ensure a continued supply of milk to those who need it.”
Today’s settlement with DFA and Dean will ensure the continued operation of dozens of fluid milk plants and that supermarkets, schools, convenience stores, hospitals, and other consumers of fluid milk are not harmed by the loss of Dean’s processing plants due to its bankruptcy.
DFA is a Kansas cooperative marketing association headquartered in Kansas City, Kansas. It has nearly 14,000 farmer-members across the United States. DFA had 2018 revenues of $13.6 billion.
Prairie Farms is an Illinois corporation headquartered in Edwardsville, Illinois. It has over 700 farmer-members and annual revenues of over $3 billion.
Dean is a Delaware corporation headquartered in Dallas, Texas. It operates 57 fluid milk processing plants in 29 states. Dean had 2018 revenues of $7.75 billion. On Nov. 12, 2019, Dean filed for Chapter 11 bankruptcy protection and will cease to operate as a going concern in May 2020.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Eric Welsh, Acting Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Northern District of Illinois may enter the final judgment upon finding it is in the public interest.
Blue Bell Creameries Agrees to Plead Guilty and Pay $19.35 Million for Ice Cream Listeria Contamination – Former Company President ChargedRead the Press Release
Texas-based ice cream manufacturer Blue Bell Creameries L.P. agreed to plead guilty to charges it shipped contaminated products linked to a 2015 listeriosis outbreak, and the company’s former president was charged in connection with a scheme to cover up the incident, the Justice Department announced today.
In a plea agreement filed with a criminal information in federal court in Austin, Texas, Blue Bell agreed to plead guilty to two misdemeanor counts of distributing adulterated ice cream products and pay a criminal fine and forfeiture amount totaling $17.25 million. Blue Bell also agreed to pay an additional $2.1 million to resolve civil False Claims Act allegations regarding ice cream products manufactured under insanitary conditions and sold to federal facilities. The total $19.35 million in fine, forfeiture, and civil settlement payments constitutes the second largest-ever amount paid in resolution of a food-safety matter.
In a related case, Blue Bell’s former president, Paul Kruse, also was charged with seven felony counts related to his alleged efforts to conceal from customers what the company knew about the listeria contamination.
“American consumers rely on food manufacturers to take necessary steps to provide products that are safe to eat,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will take appropriate action where food manufacturers ignore poor factory conditions or fail to abide by required recall procedures when problems are discovered.”
The plea agreement and criminal information filed today against Blue Bell in the U.S. District Court for the Western District of Texas alleges 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 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 testing confirmed listeria in a third product. Blue Bell again chose not to issue any formal notification to customers regarding the positive tests.
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.
“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 Judith A. McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, FDA. “Americans expect and deserve the highest standards of food safety and integrity and 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.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to hold companies accountable for failing to abide by important contract requirements,” said Robert E. Craig Jr., Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “This case has been particularly concerning because of the disregard of basic food safety rules and the impact those actions can have on the health and safety of the Defense Department's service members and their families.”
“The health and safety of our military members and their families is critical to the Department of Defense and mission readiness,” said Michael C. Mentavlos, Special Agent in Charge of the DCIS Southwest Field Office. “We take all criminal acts, including those that raise grave health concerns, seriously, and DCIS will always place a premium on the well-being of our service members, their dependents, and our veterans.”
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 circumstances. 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.
According to the allegations filed against Kruse, Blue Bell’s former president allegedly orchestrated a scheme to deceive certain Blue Bell customers after he learned that products from the company’s Texas factory tested positive for Listeria monocytogenes. Kruse specifically is asserted to have directed other Blue Bell employees to remove potentially contaminated products from store freezers without notifying retailers or consumers about the real reason for the withdrawal. Kruse also is alleged to have directed employees to tell customers who asked why products were removed that there had been an unspecified issue with a manufacturing machine instead of that samples of the products had tested positive for listeria.
The civil False Claims Act settlement with the company resolves allegations that Blue Bell shipped ice cream products manufactured in insanitary conditions to U.S. facilities, and later failed to abide by contractually required recall procedures when its employees removed products from federal purchasers’ freezers without properly disclosing details about the potentially contaminated ice cream to the appropriate federal officials.
The allegations filed against Kruse merely assert that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Except as admitted in the plea agreement, the False Claims Act claims resolved by the settlement with the company are allegations only and there has been no determination of liability.
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's DCIS. The U.S. Attorney’s Office for the Western District of Texas provided substantial assistance.
The civil False Claims Act investigation was led by Trial Attorney Michael Podberesky of the Civil Division’s Commercial Litigation Branch, with investigative support from the Department of Defense's DCIS.
For more information about the enforcement efforts of the Consumer Protection Branch and the Fraud Section of the Commercial Litigation Branch, visit their websites at http://www.justice.gov/civil/consumer-protection-branch and https://www.justice.gov/civil/fraud-section. For updated information about events in this case, please see the page at https://www.justice.gov/civil/consumer-protection-branch/cases/blue-bell-creameries.
Leading Cancer Treatment Center Admits to Antitrust Crime and Agrees to Pay $100 Million Criminal PenaltyRead the Press Release
Florida Cancer Specialists & Research Institute LLC (FCS), an oncology group headquartered in Fort Myers, Florida, was charged with conspiring to allocate medical and radiation oncology treatments for cancer patients in Southwest Florida, the Department of Justice announced. This charge is the first in the department’s ongoing investigation into market allocation in the oncology industry.
According to a one-count felony charge filed today in the U.S. District Court in Fort Myers, Florida, FCS participated in a criminal antitrust conspiracy with a competing oncology group in Collier, Lee, and Charlotte counties (Southwest Florida). FCS and its co-conspirators agreed not to compete to provide chemotherapy and radiation treatments to cancer patients in Southwest Florida. Beginning as early as 1999 and continuing until at least 2016, FCS entered into an illegal agreement that allocated chemotherapy treatments to FCS and radiation treatments to a competing oncology group. This conspiracy allowed FCS to operate with minimal competition in Southwest Florida and limited valuable integrated care options and choices for cancer patients.
The Antitrust Division also announced a deferred prosecution agreement (DPA) resolving the charge against FCS, under which the company admitted to conspiring to allocate chemotherapy and radiation treatments for cancer patients. FCS has agreed to pay a $100 million criminal penalty —the statutory maximum— and to cooperate fully with the Antitrust Division’s ongoing investigation. FCS has also agreed to maintain an effective compliance program designed to prevent and detect criminal antitrust violations.
“Today’s resolution, with one of the largest independent oncology groups in the United States, is a significant step toward ensuring that cancer patients in Southwest Florida are afforded the benefits of competition for life-saving treatments,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “For almost two decades, FCS and its co-conspirators agreed to cheat by limiting treatment options available to cancer patients in order to line their pockets. The Antitrust Division is continuing its investigation to ensure that all responsible participants are held accountable to the maximum extent possible.”
“The FBI has no tolerance for medical providers who stand to profit by criminally exploiting cancer patients,” said Michael McPherson, Special Agent in Charge of the FBI’s Tampa Field Office. “We will not turn a blind eye while executives pad their pockets to the detriment of vulnerable Americans. We will use every tool at our disposal to ensure that the public has access to a competitive marketplace for healthcare.”
Additionally, the agreement includes a non-compete waiver aimed at increasing competition in the treatment of cancer patients in Southwest Florida. Under the agreement’s terms, FCS has agreed not to enforce any non-compete provisions with its current or former oncologists or other employees who, during the term of the DPA, open or join an oncology practice in Southwest Florida.
This charge is the result of an ongoing federal antitrust investigation into market allocation and other anticompetitive conduct in the oncology industry, which is being conducted by the Antitrust Division and the FBI’s Tampa Field Office – Fort Myers RA.
The Florida Office of the Attorney General separately announced today that, in connection with its own independent investigation, FCS agreed to settle civil claims that it violated Florida antitrust laws.
Anyone with information on market allocation, price fixing, bid rigging, or other anticompetitive conduct in the health care or any other industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html. If you believe that you were a victim of this crime, please visit http://www.justice.gov/atr/victims-rights.
Former Bureau of Prisons Corrections Officer Pleads Guilty to Sexually Assaulting Two Women on Multiple Occasions and Lying to InvestigatorsRead the Press Release
WASHINGTON – Adrian L. Stargell, 39, a former Bureau of Prisons (BOP) corrections officer who worked as an education specialist at the FCI-Aliceville facility in Aliceville, Alabama, pleaded guilty today in federal court in Tuscaloosa, Alabama. Stargell pleaded guilty to two counts of violating the rights of two women whom he sexually assaulted on multiple occasions and one count of making false statements to federal agents from the U.S. Department of Justice Office of the Inspector General (OIG).
“The Department of Justice will not tolerate prison officials who abuse their positions of power to sexually assault individuals in their custody,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to vigorously prosecute these cases and secure justice for victims of these egregious crimes.”
“Sexual assault is as despicable as it is illegal,” said U.S. Attorney Jay E. Town from the Northern District of Alabama. “We will not tolerate this abhorrent behavior. Our resolve must instead be to bring the full weight of our system of justice to every predator among us.”
“Stargell’s job was to help advance inmates’ rehabilitation through education,” said James F. Boyersmith, Special Agent in Charge of the OIG Miami Field Office. “Instead, he abused his power, sexually assaulted two inmates, and lied to try to cover up his actions. This kind of conduct will not be tolerated. Special Agents at the Department of Justice Office of the Inspector General will continue to ensure that anyone who commits these kinds of despicable acts are brought to justice.”
According to court documents, during 2017 and 2018, while on-duty as an education specialist, Stargell sexually assaulted two different women who were incarcerated at FCI-Aliceville. Stargell admitted that he knew what he was doing was wrong and against the law, yet he did it anyway. When OIG agents interviewed Stargell about the allegations of sexual misconduct, Stargell lied by falsely denying having any sexual contact with the victims.
Stargell will be sentenced on Aug. 27, 2020.
This case was investigated by the Miami Field Office of the Department of Justice OIG. Assistant U.S. Attorney Robert Posey of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Missouri Man Charged with Federal Arson ChargesRead the Press Release
WASHINGTON – Nicholas J. Proffitt, 42, of Cape Girardeau, Missouri, was charged by a federal complaint with maliciously damaging a building by means of a fire. Proffitt will appear in court on April 30, 2020, for his initial appearance in front of U.S. Magistrate Judge Abbie Crites-Leoni.
According to the criminal complaint, on April 24, 2020, at approximately 4:50 a.m., a fire was discovered at The Islamic Center of Cape Girardeau, 298 Northwest End Boulevard, Cape Girardeau, Missouri. The Center’s video security system for the time of the fire observed Proffitt throwing multiple objects through a glass window, causing it to break. Proffitt threw two containers into the Center through the broken window and stepped through to enter the Center. Proffitt then picked up the containers and splashed liquid inside the Center. Proffitt ignited the fire with some type of fire starter. The blaze began immediately and appeared to be accelerated by the liquid that was poured in the building.
“To people of faith in our nation, houses of worship are sacred places,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Attacks against houses of worship are attacks against people of faith and their right to exercise their religion freely and without fear. The Justice Department will defend the right of all people in our country to exercise their religion, no matter the creed.”
“I extend my sincere thanks to all law enforcement agencies involved for their quick and effective response to this serious crime,” said U.S. Attorney Jeff Jensen for the Eastern District of Missouri.
“The fact this fire damaged a place of worship during the Muslim holy month of Ramadan is especially harmful,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “Protecting the civil rights of all Americans, regardless of color or creed, is one of the top priorities of the FBI.”
“ATF has a long tradition of fire and arson investigation,” Marino Vidoli, Special Agent in Charge of ATF’s Kansas City Field Division. “In no case is that expertise more critical than a fire such as this. When a house of worship is intentionally damaged by fire, it is not only that congregation that suffers, but the entire community. Religious centers, churches and mosques are often at the center of our neighborhoods, offering sanctuaries of peace and caring to those in need. Today’s complaint is an example of local, state and federal law enforcement coming together to support our communities.”
This is an ongoing investigation.
Proffitt is presumed to be innocent unless and until proven guilty.
These charges are the result of an investigation by the Cape Girardeau Police Department, the FBI, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Missouri State Fire Marshal Office and the Perryville Police Department. The United States Attorney’s Office for the Eastern District of Missouri and the Civil Rights Division of the Department of Justice are prosecuting this case.
Former Caregiver Pleads Guilty to Obstructing Investigation Related to Violation of Disabled Resident's Civil RightsRead the Press Release
Mary K. Paulo, a former employee of a Missouri residential treatment facility, pleaded guilty today in federal court in the Western District of Missouri to an obstruction of justice charge related to the death of C.D., a Missouri ward of the state with developmental disabilities. Paulo pleaded guilty to one count of knowingly falsifying a document with the intent to impede, obstruct, and influence an investigation related to the death of C.D.
“A vulnerable victim died because of the criminal conduct of those responsible for his care and custody. The defendant is being held responsible for her role in obstructing the investigation into the circumstances surrounding his death,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division will continue to investigate and prosecute allegations of criminal civil rights violations and those individuals who engage in related obstructive conduct.”
“This caregiver neglected her responsibility to a vulnerable victim, helped cover up criminal activity, and lied to federal law enforcement agents,” said U.S. Attorney Tim Garrison of the Western District of Missouri. “Her complicity is inexcusable, and her obstruction of justice won’t be tolerated. She will be held accountable, alongside her brother and her parents, for her role in this brazen scheme.”
"Today's guilty plea emphasizes law enforcement's unwavering dedication and determination to ensure all individuals responsible for their role in this victim's death are held accountable for their actions" said Timothy Langan, Special Agent in Charge of the FBI in Kansas City, Missouri. "The FBI is the primary federal agency responsible for investigating allegations regarding violations of federal civil rights and we remain committed to seeking justice on behalf of all victims."
“Paulo’s knowing obstruction into the investigation of the death of this vulnerable individual is a severe crime that cannot be tolerated,” said Curt L. Muller, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services. “Coordinating with our law enforcement partners, we are committed to investigating such criminal actions.”
According to the plea agreement, Paulo worked as a caregiver at Second Chance Homes, an organization that provided housing and care for developmentally disabled persons through a Missouri Department of Mental Health initiative. Victim C.D. had been a resident at Second Chance Homes since 2008.
Paulo admitted in her plea agreement that she regularly worked alongside C.D. and his caretakers. Paulo further admitted that in the summer of 2016, her mother – another caregiver at Second Chance Homes – told her to stop coming to work. Paulo did not report to work for a number of months, although she continued to receive pay.
In August of 2016, at her mother’s request, Paulo took another Second Chance Homes resident to one of C.D.’s scheduled medical appointments, presented him as C.D., and obtained a new prescription in C.D.’s name. Paulo did so knowing that the resident was not C.D. and that she had not seen C.D. in months.
Paulo returned to work in the fall of 2016 and noticed that C.D. was no longer present at Second Chance Homes.
In April of 2017, before Second Chance Homes was to be purchased by another company, Paulo’s mother gave Paulo several documents to sign. Paulo signed the documents, many of which attested that she had cared for C.D. in the previous nine months, while knowing that she had not seen C.D. in the previous nine months.
After C.D. was ultimately reported missing to the Fulton Police Department, Paulo wrote and submitted a false statement to the police. Paulo wrote in the statement that she saw C.D. alive and well on April 16, 2017, while knowing that she had, in fact, not seen C.D. in months.
Pursuant to Paulo’s plea agreement, she faces a maximum of 24 months incarceration. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
Paulo’s mother, Sherry Paulo, and father, Anthony Flores, have previously pleaded guilty to criminal civil rights charges stemming from C.D.’s death. Paulo’s brother, Anthony R.K. Flores, previously pleaded guilty to knowingly falsifying a document with the intent to impede, obstruct, and influence an investigation related to the death of C.D.
This case was investigated by the Jefferson City Resident Agency of the FBI Kansas City Division and the St. Louis Field Office of the Department of Health and Human Services Office of the Inspector General Kansas City Region. The case is being prosecuted by Assistant U.S. Attorneys Cindi Woolery and Gregg Coonrod of the U.S. Attorney’s Office, Special Litigation Counsel Julia Gegenheimer and Trial Attorney Janea Lamar of the Department of Justice Civil Rights Division Criminal Section. The Fulton, Missouri Police Department and Callaway County Prosecutor Christopher Wilson contributed significantly to the successful investigation and prosecution of this matter.
Federal Appellate Court Upholds Enforcement of IRS Summons Seeking Information Concerning Law Firm Clients Involved in Foreign TransactionsRead the Press Release
WASHINGTON – On April 24, 2020, a federal appellate court upheld an order enforcing an Internal Revenue Service (IRS) summons directed to the Taylor Lohmeyer Law Firm PLLC, the Department of Justice announced. The summons directed the law firm to provide information about clients who used the law firm’s services to create and maintain foreign bank accounts and entities. On appeal, the United States Court of Appeals for the Fifth Circuit upheld the trial court’s enforcement of the summons and rejected the law firm’s “blanket” claim that all responsive materials were protected by the attorney-client privilege. It explained that revealing the fact that the clients participated in specific types of transactions would not necessarily reveal any confidential communication of legal advice protected by the attorney-client privilege.
U.S. taxpayers seeking to hide their assets often utilize the services of professional service providers, who may be unaware of their clients’ true goals. This action is part of ongoing efforts by the United States to stop persons from using foreign financial accounts and entities to evade taxes. Courts have previously approved John Doe summonses allowing the IRS to identify individuals using offshore accounts to evade their U.S. obligations.
Principal Deputy Assistant Attorney General Richard E. Zuckerman and Deputy Assistant Attorney General Joshua Wu thanked Tax Division attorneys Michael Haungs and Douglas Rennie, who handled the case on appeal, as well as Curtis Smith who litigated the case in the district court.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Statement from Assistant Attorney General Makan Delrahim on the 20th Anniversary of World Intellectual Property DayRead the Press Release
This week, the U.S. Department of Justice Antitrust Division celebrates the 20th anniversary of World Intellectual Property Day. The division marks the occasion by remembering the revolutionary ideal that our nation’s founding fathers embedded in the U.S. Constitution: that “securing . . . to Authors and Inventors the exclusive Right to their respective Writings and Discoveries” will “promote the Progress of Science and useful Arts.” For over 200 years, this “exclusive Right” has served as the foundation of the U.S. system of patent, copyright, and trademark laws.
Indeed, as James Madison explained in The Federalist Papers, “The utility of this power (the Intellectual Property Clause) will scarcely be questioned. The copyright of authors has been solemnly adjudged, in Great Britain, to be a right of common law. The right to useful inventions seems with equal reason to belong to the inventors. The public good fully coincides in both cases with the claims of individuals.”
Securing the rights of individuals over their inventions and creative output provides powerful incentives for innovation and dynamic competition. Time and again, strong intellectual property rights have fueled new technologies and creative trends that break down the power of entrenched monopolists—all to the benefit of consumers all over the world.
Inventors, scientists, authors, musicians, and filmmakers have enriched our cultural fabric, improved our health, inspired generations of consumers to become innovators themselves, and helped make America great. As then-Assistant Attorney General for the Antitrust Division Robert H. Jackson, in a speech before the New York State Bar Association, put it: we are “a nation whose genius is invention.” In celebration of World Intellectual Property Day, the Antitrust Division honors these innovators and artists by helping to protect the intellectual property rights on which they rely.
President’s Commission on Law Enforcement and the Administration of Justice Completes Teleconferences on Crime Reduction and Begins Hearing on ReentryRead the Press Release
Last week, the President’s Commission on Law Enforcement and the Administration of Justice completed its hearings on crime reduction, with a panel on technology tools for law enforcement, specifically “drones,” facial recognition technology, and body worn cameras, and a panel featuring survivors of sexual assault, domestic violence, and human trafficking. The Commission also held its first hearing on reentry. The hearings were held over three days via teleconference. Each teleconference featured expert witnesses who provided testimony and, subsequently, answered questions from the Commissioners.
On Tuesday, April 21, the Commission received testimony from Colonel Edwin Roessler Jr., Chief of the Fairfax County Police Department; Damon Mosler, Assistant District Attorney for San Diego County; Dr. Richard Vorder Bruegge, Senior Physical Scientist for the Federal Bureau of Investigation, and; Kevin Jinks, Senior Counsel for the Department of Justice Office of Legal Policy.
Testimony and discussions focused on technology tools for law enforcement. Colonel Roessler and Assistant District Attorney Mosler discussed body worn cameras. Colonel Roessler stated, “The biggest need is the public accountability for community and the police officers in the body-worn camera program.” Assistant District Attorney Mosler testified that although “public perception and expectation have made it almost essential for law enforcement to have cameras given the public desire for transparency and accountability,” this trend poses new challenges for prosecutors and the entire criminal justice system due, in part, to the quantity of data collected. Dr. Vorder Bruegge spoke of “opportunities and challenges associated with the use of facial recognition to combat violent crime.” The final panelist, Mr. Jinks, discussed “how governments at all levels can first use UAS, or Unmanned Aerial Systems, also known as drones, to further our missions and second counter the threat posed by dangerous drones and their operators.”
On Wednesday, April 22, the Commission concluded its hearing on Crime Reduction with testimony from Joyce Bilyeu, Director of Client Services for the Sacramento Regional Family Justice Center; Adrianna Griffith, SA/DV Specialist/Lived Experience Expert for the Women’s Center - Youth and Family Services; Bella Hounakey, Subject Matter Expert for the United States Advisory Council on Human Trafficking, and; Natasha Alexenko, Founder of Natasha’s Justice Project.
Testimony and discussion featured the personal experiences of survivors of sexual and domestic violence and human trafficking. Director Bilyeu shared her story as a survivor of domestic violence. She stressed the challenges victims face to leave their abusers, noting that each time she tried to take control of her situation by calling the police, her husband spiraled further out of control and the abuse worsened. Ms. Griffith shared her experiences of witnessing abuse as a child and falling into the cycle of crime as a victim herself. She advocates for early social services intervention for children who experience/witness abuse so that they have the chance to lead healthy lives. Ms. Hounakey shared her story of being trafficked by her aunt from Togo to the United States at nine-years-old to work up to 18 hours a day. She described how trafficking victims are conditioned by their traffickers to not trust law enforcement. She explained how, in addition to the federal agents who rescued her in 2014, she would have liked to have been met by medics, social workers, and translators so that she and the other victims would have better understood their situation. Ms. Alexenko provided the final testimony of the day, sharing her story as a survivor of sexual assault at gunpoint. She waited 10 years for her rape kit to be tested and 15 years before her rapist would face a jury.
On Thursday, April 23, the Commission began its hearing on Reentry with testimony from Tony Lowden, Executive Director for the Federal Interagency Council on Crime Prevention and Improving Reentry; Jason Hardy, Author of The Second Chance Club: Hardship and Hope After Prison, and Special Agent for the Federal Bureau of Investigation; John Koufos, the National Director of Reentry Initiatives, Right on Crime, and; Grant Duwe, Director of Research for the Minnesota Department of Corrections.
Testimony and discussion focused on the state of reentry. Executive Director Lowden testified that “reentry is all about redemption & providing every opportunity for a person to be who they were created to be…Reducing the risk of a prisoner re-offending upon release is one of the most effective ways to ensure public safety.” Special Agent Hardy discussed the economic benefit to quality reentry programs: “Every dollar committed to reentry services at probation and parole agencies has the potential to return enormous taxpayer savings down the road.” Mr. Koufos offered similar testimony, stating: “Successful reentry empowers people to participate in meaningful work opportunities, which helps many pay child support and restitution, and strengthens tax bases.” Director Duwe provided the day’s final testimony, stressing that reentry begins the day a person walks into prison. He stated the need to focus time in prison on quality evidence-based programming and not simply warehousing people behind bars.
For more information on the Commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice
Audio recordings and transcripts of the hearings will be posted online once available.
Eighth Circuit Upholds Determination that Wells Fargo is Liable for Penalties for Engaging in Abusive Tax Shelter SchemeRead the Press Release
WASHINGTON – The Eighth Circuit Court of Appeals issued a precedential opinion on Friday, April 24, 2020, affirming a district court decision that a transaction designed to generate massive foreign tax credits (referred to as the STARS tax shelter) lacked economic substance and business purpose and was subject to the accuracy-related penalty for negligence, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and Deputy Assistant Attorney General Joshua Wu of the Justice Department’s Tax Division.
In Wells Fargo v. United States, No. 17-3578, the Eighth Circuit Court of Appeals affirmed the decision of the U.S. District Court for the District of Minnesota and the position of the United States. Wells Fargo, like several other U.S. banks, had entered into the STARS shelter, a transaction promoted to them by Barclays PLC and KPMG as a method of generating foreign tax credits on U.S. income. The Eighth Circuit rejected the transaction as an economic sham subject to penalties, consistent with the decisions of three other courts of appeals. In rejecting Wells Fargo’s appeal, the court agreed with the government that “STARS was an elaborate and unlawful tax avoidance scheme, designed to exploit the differences between the tax laws of the U.S. and the U.K. and generate U.S. tax credits for a foreign tax that Wells Fargo did not, in substance, pay.”
Principal Deputy Assistant Attorney General Zuckerman thanked Tax Division attorney Judith Hagley and former Tax Division attorneys Gilbert Rothenberg and Richard Farber, who handled the case on appeal for the government, as well as Chief Senior Litigation Counsel Dennis Donohue, Senior Litigation Counsel Kari Larson, trial attorneys William Farrior, Harris Phillips, Matthew Johnshoy, and former Tax Division attorney Viki Economides Farrior, who litigated the case in the district court.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Recognizes Anniversary of Buy American and Hire American Executive Order by Reaffirming its Commitment to Fight Discrimination Against U.S. WorkersRead the Press Release
Today, the Department of Justice recognized the third anniversary of the President’s Buy American and Hire American (BAHA) Executive Order, which directs federal agencies to protect U.S. workers’ jobs from employers that abuse temporary work visa programs.
“On this anniversary, the Department of Justice reaffirms its commitment to protect U.S. workers from discrimination,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Our message to workers is clear: if companies deny you employment by illegally preferring temporary visa holders over U.S. workers, the Department of Justice will hold them accountable. This is especially important at a time when more U.S. workers may be looking for employment as a result of the economic impact of COVID-19.”
Consistent with the BAHA Executive Order, the Immigrant and Employee Rights Section (IER) of the Department’s Civil Rights Division launched the Protecting U.S. Workers Initiative in 2017. Through this initiative, the department targets, investigates, and brings enforcement actions against employers that intentionally discriminate against U.S. workers due to a preference for temporary visa workers. IER has reached numerous settlements under this initiative, and employers have distributed or agreed to pay a combined total of more than $1.2 million in back pay to affected U.S. workers and civil penalties to the United States. These settlements involve employers that discriminated in their use of the H-1B, H-2A, and H-2B visa programs. For example, last month IER reached a settlement with a Maryland construction firm, resolving claims that the company violated the law by preferring H-2B visa holders over qualified U.S. workers.
The department also has increased its collaboration with federal partners under the Protecting U.S. Workers Initiative to increase information sharing, promote discrimination referrals, and improve efforts to target wrongdoers. The department has entered into or expanded existing partnerships with the Department of Labor, the Department of Homeland Security, and the Department of State.
Workers and their advocates can contact IER for information on protections under the law. Workers can call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired) to get information on rights under the law IER enforces or to report discrimination. IER offers free webinars for workers and their advocates on protections from discrimination under the law that IER enforces. In addition, applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge.
Under the initiative, IER has also published materials to educate the public about discrimination against U.S. workers, including Information for Employers About Citizenship Status Discrimination and Best Practices for Recruiting and Hiring Workers. Employers can call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired) for information on how to avoid unlawful discrimination. Finally, IER offers free webinars for employers to learn more about the anti-discrimination law that IER enforces.
Callers to IER’s hotlines can remain anonymous and language services are available. More information is available on IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Justice Department Commemorates Sexual Assault Awareness and Prevention MonthRead the Press Release
The Department of Justice is joining advocates, public safety and public health professionals, and communities across the country in commemorating April as National Sexual Assault Awareness and Prevention Month. President Trump has called on all Americans “to support survivors of sexual assault and work together to prevent these crimes in their communities.”
“Sexual violence turns victims’ lives upside down, exacting a heavy toll on their emotional, mental and physical health,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs (OJP). “Recovery requires significant time and effort, and we are committed to helping them move successfully from victims to survivors.”
“Sexual violence is multifaceted and is often hidden from public view,” said Laura L. Rogers, Acting Director of the Office on Violence Against Women (OVW). “While there is much to be done still, I believe the positive shift in the way we approach the topic of sexual violence is, in part, due to the impact of the work of so many in the field.”
Research from the Bureau of Justice Statistics’ 2018 National Crime Victimization Survey found 37 percent of the total violent victimizations in 2018 were identified as rape or sexual assault. The survey estimates that in 2018, some 734,630 people in the U.S. were victims of rape or sexual assault.
The Justice Department is working on many fronts to prevent sexual assault and to bring justice and healing to sexual assault survivors. OJP, OVW, and the department’s Office of Community Oriented Policing Services (COPS) have dedicated substantial resources to helping victims and have made considerable investments in technology, research, and data aimed at addressing the problem. Through OJP’s Office for Victims of Crime (OVC) victim assistance formula funding, administered by the states and territories, hundreds of thousands of victims of sexual assault receive services every year. Since its inception, OVW has funded over $8.1 billion to support programs that are targeting domestic violence, sexual assault, dating violence and stalking.
The Justice Department works throughout the year to protect and serve victims of sexual assault. Some of our programs include the following:
- Last year, OJP's OVC awarded $15 million to improve access to forensic examinations by Sexual Assault Nurse Examiners through telehealth technology.
- OVC is making more than $3 million available to address female genital mutilation and cutting, one of the gravest forms of gender-based violence, estimated to affect hundreds of thousands of girls and women in the U.S.
- OVC and the Office of Juvenile Justice and Delinquency Prevention have awarded $30 million to local organizations and state agencies to serve young victims of sex trafficking.
- OVW awarded over 500 grants last year, totaling more than $400 million, to help communities respond to sexual violence.
- OVW partnered with OVC to fund the $7 million Sexual Assault Forensic-Medical and Advocacy Services for Tribes (FAST) Initiative, which is designed to increase the availability of Sexual Assault Forensic Examiners (SAFEs) and victim advocates in tribal communities.
- OVW supports rural and tribal communities by prioritizing discretionary grant program solicitations that emphasize justice solutions and victim services.
- Through the National Sexual Assault Kit Initiative, the Bureau of Justice Assistance has provided almost $200 million since its inception in 2015, to agencies in 40 states to test tens of thousands of rape kits and help investigators solve crimes revealed by the evidence.
- A best practices document published by the National Institute of Justice provides 35 practical recommendations for investigators, crime labs and communities on improving the handling of sexual assault kits.
- The Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking awarded nearly $16 million last year to nearly 50 states, U.S. territories, and tribal communities to bolster registration and tracking of sex offenders and continues to manage and operate the Dru Sjodin National Sex Offender Public Website.
- The COPS Office manages the Collaborative Reform Initiative Technical Assistance Center, which is working with several law enforcement agencies on issues related to sexual assault.
- The COPS Office has developed a variety of publications and other resource materials for law enforcement agencies, including the publication Identifying and Preventing Gender Bias in Law Enforcement Response to Sexual Assault and Domestic Violence and articles such as “Child Sexual Abuse and Girls – A First Response” and “What We Can Do About Street Harassment.”
- The COPS Office supports law enforcement through a number of anti-human trafficking efforts, including child sex trafficking training.
Department of Justice resources are helping service providers reach sexual assault victims during the COVID-19 pandemic. Department funding supports the National Sexual Assault Hotline (800-656-4673), which is now available in Spanish and English, and the Department of Defense Safe Helpline (877-995-5247), designed specifically for members of the DoD community.
With the pandemic necessarily curtailing the majority of April’s Sexual Assault Awareness and Prevention Month events, the message of this month remains: we reaffirm our commitment to supporting survivors of sexual assault, encouraging strong criminal justice responses to these crimes and ending the scourge of sexual violence in our homes and communities.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
INTERPOL Washington Supports Operation Maharlika IIIRead the Press Release
INTERPOL Washington—the U.S. National Central Bureau (USNCB)—is providing critical system support to INTERPOL-led law enforcement operations throughout Southeast Asia. These database upgrades—made under the auspices of Project TERMINUS—demonstrated their on-going value during a recent INTERPOL operation codenamed Maharlika III which took place February 24th to March 20th.
During this operation, law enforcement partners from Brunei, Indonesia, Malaysia, and the Philippines coordinated a series of simultaneous border and law enforcement actions leading to the arrest of more than 180 individuals, including one suspected member of the terrorist Abu Sayyaf Group (ASG).
According to an INTERPOL news release, the operation saw 82 victims of human trafficking, mainly young women, rescued by Philippine authorities. In addition, Indonesian authorities identified and rescued a 35 adults and 17 children, arriving from Malaysia. Authorities also seized firearms, illegally assembled explosives made of ammonium nitrate and other illicit goods and substances worth more than one million euros.
Under Project TERMINUS, the USNCB designed and supported custom high-performance INTERPOL screening solutions which enhanced selected Southeast Asian partner nation database integration with INTERPOL’s I-24/7 services, including the Stolen and Lost Travel Document (SLTD) databases. The systems facilitated direct access by Operation Maharlika III units to INTERPOL’s global databases, allowing authorities to run more than 13,000 checks on travel documents, firearms and nominal data. The USNCB team continues to provide onsite consultation for partner nation SLTD screening operation and enhancement.
The United States National Central Bureau’s Project TERMINUS mission is to extend secure global police communication systems in high risk areas and selected Host Nations globally. Due to challenges with technology and expertise, countries are lacking access to INTERPOL’s Stolen and Lost Travel Document Database (SLTD) dataset, containing more than 97 million travel documents. In the fight against terrorism and the need for identification and prevention of Foreign Terrorist Fighters (FTF) movements, lack of access to technology presents a critical situation impeding efforts to identify and interdict FTF’s and other transnational criminals using stolen, lost or revoked documents (passports, identity documents, visa’s). By assisting in ensuring that law enforcement officers have access to INTERPOL’s I-24/7, enables authorized users to search and cross check data in a matter of seconds and share sensitive or urgent police information with their counterparts around the globe, 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 INTERPOL 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.
On 50th Anniversary of Earth Day, the Justice Department’s Environment and Natural Resources Division Celebrates Achievements in Environmental LawRead the Press Release
On the 50th anniversary of Earth Day, the Department of Justice’s Environment and Natural Resources Division (ENRD) celebrated its latest accomplishments and reflected on half a century of the division’s impact on environmental and natural resource law in the United States.
“This report covers my first year as the Assistant Attorney General for the Division, and I deeply appreciate this opportunity to serve the American people and support President Trump’s ambitious agenda,” said Jeffrey Bossert Clark, Assistant Attorney General for ENRD. “I continue to believe that environmental law must always be guided by the bedrock principles enshrined in our Constitution. These principles have guided our nation for almost a quarter of a millennium, and they serve as a guidepost for everything we do in ENRD.”
“More American families are breathing clean air and drinking clean water due to the efforts of the Environment and Natural Resources Division,” said Claire McCusker Murray, Principal Deputy Associate Attorney General. “ENRD’s tremendous work is essential to the department’s mission of faithfully enforcing the law and defending the interests of the United States.”
In fiscal year 2019, the ENRD remained focused on several key objectives: vigorously enforcing pollution abatement and wildlife protection laws, particularly in cases of fraud or abuse; promoting energy independence and economic growth by defending the reduction of regulatory burdens and supporting infrastructure development; strengthening national security and border protection; promoting federalism; and protecting the public fisc. ENRD worked on approximately 3,077 cases and matters, while maintaining a robust docket of over 6,110 active cases and matters. The division obtained over $858 million in civil and criminal fines, penalties, and costs recovered. The estimated value of federal injunctive relief obtained—including cleanup and pollution-prevention actions funded by private parties—exceeded $3.4 billion.
Fifty years ago, on April 22, 1970, over 20 million people participated in a wide variety of public gatherings as part of the nation’s first Earth Day. From coast to coast, the American people provided a powerful civic response to environmental degradation and a clear demand for broad national measures to protect the environment and conserve natural resources.
Over the next 10 years, Congress passed many of the foundational environmental and natural resources statutes of the modern era, including the Clean Air Act (1970), the Federal Water Pollution Control Act (1972), the Coastal Zone Management Act (1972), the Marine Mammal Protection Act (1972), the Endangered Species Act (1973), the Safe Drinking Water Act (1974), the Federal Land Policy and Management Act (1976), the National Forest Management Act (1976), the Magnuson Fishery Conservation and Recovery Act (1976), the Surface Mining Control and Reclamation Act (1977), and the Public Rangelands Improvement Act (1978).
Throughout this flurry of legislative activity, ENRD grew and adapted to enforce these new statutes and defend client agencies’ decisions under them. This latest Accomplishments Report contains a special section on how over the last 50 years, ENRD’s diverse practice has played an essential role in shaping and defending the legislative and regulatory responses to pollution and conservation. The achievements described in the report continue to highlight ENRD’s efforts to advance environmental values since the first Earth Day in 1970.
Read more about ENRD history and accomplishments here.
Watch a Video about ENRD’s history since the first Earth Day here.
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.
Department of Justice Announces Disruption of Hundreds of Online COVID-19 Related ScamsRead the Press Release
Federal authorities announced today that an ongoing cooperative effort between law enforcement and a number of private-sector companies, including multiple internet domain providers and registrars, has disrupted hundreds of internet domains used to exploit the COVID-19 pandemic to commit fraud and other crimes.
As of April 21, 2020, the FBI's Internet Crime Complaint Center (IC3) has received and reviewed more than 3,600 complaints related to COVID-19 scams, many of which operated from websites that advertised fake vaccines and cures, operated fraudulent charity drives, delivered malware, or hosted various other types of scams. To attract traffic, these websites often utilized domain names that contained words such as “covid19,” or “coronavirus.” In some cases, the fraudulent sites purported to be run by, or affiliated with, public health organizations or agencies.
For example, the cooperative effort has disrupted:
- An illicit website pretending to solicit and collect donations to the American Red Cross for COVID-19 relief efforts.
- Fraudulent websites that spoofed government programs and organizations to trick American citizens into entering personally identifiable information, including banking details.
- Websites of legitimate companies and services that were used to facilitate the distribution or control of malicious software.
Multiple federal agencies have worked to analyze the complaints, investigate ongoing fraud, phishing, or malware schemes, and assemble vetted referrals. Agencies have sent hundreds of these referrals to the private-sector companies managing or hosting the domains. Many of those companies, in turn, have taken down the domains after concluding that they violated their abuse policies and terms of service, without requiring legal process. Domain registrars and registries have advised the department that they have established teams to review their domains for COVID-19 related fraud and malicious activity. Cybersecurity researchers have also made important contributions by developing sophisticated tools to identify malicious domains and refer them for mitigation. Law enforcement is actively reviewing leads, including those referred by private firms, to verify unlawful activity and quickly pursue methods for disruption.
As a further example, shortly after the IRS notified the public of web links to apply for the COVID-19 related stimulus payments, the FBI identified a number of look-alike IRS stimulus payment domains. These look-alike domains are often indicative of future phishing schemes and in order to minimize the potential fraudulent use of the these domains, the FBI alerted numerous domain registries and registrars to the existence of these look-alike URLs.
“The department will continue to collaborate with our law enforcement and private sector partners to combat online COVID-19 related crime,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “We commend the responsible internet companies that are taking swift action to prevent their resources from being used to exploit this pandemic.”
“Working alongside our law enforcement partners and the private industry, the Civil Division’s Consumer Protection Branch is taking action against all manner of COVID-19 consumer scams,” said Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division. “Disrupting Internet-based fraud schemes is an important part of our effort to protect consumers from financial loss and health-related harms.”
“The FBI is proud to work alongside our federal law enforcement and private sector partners to protect the American public from COVID-19 related scams during these difficult times,” said FBI Executive Assistant Director Terry Wade. “We believe our collaborative efforts are the key to quickly reducing the threat from COVID-19 scams while allowing the American public to focus on protecting themselves and their families from this pandemic.”
“Keeping pace with the growing threat of cyber-enabled COVID-19 scams requires an alliance between the private sector and our law enforcement partners to safeguard our Nation from this sort of nefarious conduct,” said Director James M. Murray of the U.S. Secret Service. “The Secret Service is thankful for these trusted partnerships which demonstrate a proven model for identifying, investigating and prosecuting these criminals.”
The Justice Department is also working to provide COVID-19 related training and technical assistance in other countries through the International Computer Hacking and Intellectual Property (ICHIP) program. In one Justice Department-supported action, a state prosecutor in Brazil took down a fake site purporting to belong to a leading Brazilian brewery. The website publicized the distribution of free sanitizer, but in fact was infecting the computer systems of numerous Brazilian consumers with malware. The ICHIP-mentored prosecutor further requested that the site’s U.S.-based registrar suspend it and preserve any account and transactional data linked to the site. The investigation is ongoing, and the ICHIP continues to mentor the prosecutor remotely on this case and on best practices for engaging with U.S. registrars and providers. Similar activities are planned in other regions with ICHIP attorneys. Learn more about the Criminal Division’s ICHIP Program, jointly administered by the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training and the Computer Crime and Intellectual Property Section, here.
Numerous Justice Department components are working to combat COVID-19 related crime nationwide. For a list of department efforts, visit https://www.justice.gov/coronavirus/news.
The FBI’s Cyber Initiative and Resource Fusion Unit (CIRFU) and National Cyber-Forensics and Training Alliance (NCFTA), the Criminal Division’s Computer Crime and Intellectual Property Section, the Civil Division’s Consumer Protection Branch, and the U.S. Secret Service field offices are coordinating these efforts. The U.S. Postal Inspection Service and Food and Drug Administration also have been collaborating in this effort.
The following tips can help protect individuals and businesses from being victimized by cyber actors:- Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
- Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
- Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the public this way.
- Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device.
- Make sure the anti-malware and anti-virus software on your computer is operating and up to date. Keep your operating system up to date as well.
- Ignore offers for a COVID-19 vaccine, cure, or treatment. Remember, if a vaccine becomes available, you will not hear about it for the first time through an email, online ad, or unsolicited sales pitch.
- Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
- Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving any donation. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
- Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Do not send money through any of these channels.
If you think you are a victim of a fraud or attempted fraud involving COVID-19, call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or email at [email protected]. If it is a cyber scam, submit your complaint through https://www.ic3.gov.
To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
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.
- An illicit website pretending to solicit and collect donations to the American Red Cross for COVID-19 relief efforts.
Department of Justice Commemorates National Crime Victims’ Rights WeekRead the Press Release
Hagatña – Shawn N. Anderson, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week, celebrating victims’ rights, protections and services throughout the week. This year’s observance takes place April 19-25 and features the theme, “Seek Justice| Ensure Victims' Rights | Inspire Hope.”
“Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity,” said Attorney General William P. Barr. “To these victims, we affirm our unwavering commitment to supporting them in their hour of need. We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors.”
“While we have made tremendous progress driving down crime and violence across the country, far too many Americans continue to suffer the pain and loss of criminal victimization,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “This week, we stand by these survivors and their families, and we pledge our ongoing support to the countless men and women who serve them with such extraordinary skill and compassion.”
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. President Trump and his administration have implemented historic levels of support for victim assistance and victim compensation.
Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
This year’s commemoration began yesterday, 25 years to the day when a truck bomb exploded in front of the Alfred P. Murrah Federal Building in Oklahoma City, Oklahoma, taking the lives of 168 people, including 19 children, as well as injuring hundreds of others. The mass murder remains the worst act of domestic terrorism in our nation’s history and led to the establishment of the Antiterrorism Emergency Reserve, which is administered by OVC, and has been used to provide direct services to hundreds of victims of mass violence and terrorism.
“Crime victims deserve to know that they have the encouragement and support of the American people,” said OVC Director Jessica E. Hart. “I hope that citizens throughout the nation will take the opportunity this week to remember all victims of crime and their heroic stories of survival. I encourage everyone to also find meaningful ways to express their appreciation to the many committed and compassionate service providers across the country who work tirelessly supporting these survivors.”
This year, the annual National Crime Victims’ Service Awards Ceremony will be postponed until a time when we can honor this year’s award recipients in person. During the ceremony, OVC will present awards recognizing individuals and organizations from across the nation for their outstanding service on behalf of crime victims. The awardees will be selected from public nominations in 11 categories, including federal service, special courage, public policy, and victim services. Visit www.ovc.gov/gallery to learn more about past recipients.
For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ncjrs.gov/ncvrw2020/overview.html.
Justice Department Issues Business Review Letter to AmerisourceBergen Supporting Distribution of Critical Medicines Under Expedited Procedure for COVID-19 Pandemic ResponseRead the Press Release
The Department of Justice announced today that it will not challenge collaborative efforts of AmerisourceBergen Corporation (AmerisourceBergen) to identify global supply opportunities, ensure product quality, and facilitate product distribution of medications and other healthcare supplies to treat COVID-19 patients.
AmerisourceBergen’s collaborative efforts form yet another part of the emergency response developed and led by the Federal Emergency Management Agency (FEMA) and the Department of Health and Human Services (HHS) to address urgent supply needs across the nation arising from the COVID-19 pandemic.
“We commend AmerisourceBergen’s efforts to assist the United States in responding to the COVID-19 pandemic through improved supply of medicines to those most in need,” stated Assistant Attorney General Makan Delrahim of the department’s Antitrust Division. “We also appreciate AmerisourceBergen’s intention to comply with the antitrust laws, regardless of circumstances. Division staff worked expeditiously to resolve its request for a Business Review Letter within our ambitious seven-day target.”
AmerisourceBergen is working on a number of initiatives under the direction of the government to help resolve supply challenges presented by the pandemic. These initiatives are focused on facilitating the government’s efforts to guide medications and other healthcare supplies to the places where they are needed most. This includes the distribution of hydroxychloroquine from the government’s Strategic National Stockpile to health care providers in areas of greatest need. AmerisourceBergen is instructed on volumes and ship-to destinations, and then leverages its distribution network. AmerisourceBergen’s conduct falls within the same emergency response efforts that dictated the Medical Supplies Distributors’ conduct evaluated in a previous Business Review Letter. The response, therefore, leverages the same analytical framework.
AmerisourceBergen submitted its business review request pursuant to the expedited, temporary review procedure detailed in the Joint Antitrust Statement Regarding COVID-19 (Joint Statement) issued by both the department and the Federal Trade Commission (FTC) on March 24, 2020. In the Joint Statement, the department announced its aim to resolve COVID-19-related business review requests within seven calendar days of receiving all necessary information.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division. After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
Department of Justice Commemorates National Crime Victims’ Rights WeekRead the Press Release
The Department of Justice will join communities nationwide in observing National Crime Victims’ Rights Week, celebrating victims’ rights, protections and services throughout the week. This year’s observance takes place April 19-25 and features the theme, “Seek Justice | Ensure Victims' Rights | Inspire Hope.”
“Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity,” said Attorney General William P. Barr. “To these victims, we affirm our unwavering commitment to supporting them in their hour of need. We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors.”
“While we have made tremendous progress driving down crime and violence across the country, far too many Americans continue to suffer the pain and loss of criminal victimization,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “This week, we stand by these survivors and their families, and we pledge our ongoing support to the countless men and women who serve them with such extraordinary skill and compassion.”
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. President Trump and his administration have implemented historic levels of support for victim assistance and victim compensation.
Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
This year’s commemoration began yesterday, 25 years to the day when a truck bomb exploded in front of the Alfred P. Murrah Federal Building in Oklahoma City, Oklahoma, taking the lives of 168 people, including 19 children, as well as injuring hundreds of others. The mass murder remains the worst act of domestic terrorism in our nation’s history and led to the establishment of the Antiterrorism Emergency Reserve, which is administered by OVC, and has been used to provide direct services to hundreds of victims of mass violence and terrorism.
“Crime victims deserve to know that they have the encouragement and support of the American people,” said OVC Director Jessica E. Hart. “I hope that citizens throughout the nation will take the opportunity this week to remember all victims of crime and their heroic stories of survival. I encourage everyone to also find meaningful ways to express their appreciation to the many committed and compassionate service providers across the country who work tirelessly supporting these survivors.”
This year, the annual National Crime Victims’ Service Awards Ceremony will be postponed until a time when we can honor this year’s award recipients in person. During the ceremony, OVC will present awards recognizing individuals and organizations from across the nation for their outstanding service on behalf of crime victims. The awardees will be selected from public nominations in 11 categories, including federal service, special courage, public policy, and victim services. Visit www.ovc.gov/gallery to learn more about past recipients.
For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ncjrs.gov/ncvrw2020/overview.html.
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's Statement on the 25th Anniversary of the Oklahoma City BombingRead the Press Release
Attorney General William P. Barr issued the following statement:
“A quarter century after the bombing in the American heartland, we rightly continue to honor the victims, the first responders, and the everyday citizens who immediately acted with courage and selflessness. We should remember that the cowardly act that struck Oklahoma City arose from an extremist ideology. But also we must know that we, as a people, possess the moral clarity and will to overcome those malevolent movements that seek to undermine our principles and divide our nation. The U.S. Department of Justice, along with its local and state partners, worked tirelessly to bring the perpetrator and co-conspirator of the attack to justice. The Alfred P. Murrah Federal Building in downtown Oklahoma City was more than just a physical structure; it was, as a federal building, nothing less than a physical manifestation of the American people. Make no mistake then that the 168 souls who lost their lives 25 years ago today died for their country. They will never be forgotten, and we will do right by their legacies by continuing to fully dedicate ourselves and all of our resources to defeating those, both at home and abroad, who wish us harm.”
Attorney General William P. Barr’s Statement on the Recent Arrests of Pro-Democracy Activists in Hong KongRead the Press Release
Attorney General William P. Barr issued the following statement:
"I condemn the latest assault on the rule of law and the liberty of the people of Hong Kong. These events show how antithetical the values of the Chinese Communist Party are to those we share in Western liberal democracies. These actions — along with its malign influence activity and industrial espionage here in the United States — demonstrate once again that the Chinese Communist Party cannot be trusted."
President’s Commission on Law Enforcement and the Administration of Justice Continues Teleconferences on Crime ReductionRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice continued to hold hearings on crime reduction, with panelists speaking about domestic violence and sexual assault, technology issues encountered by law enforcement, and leveraging technology to reduce crime. The hearings were held over three days via teleconference. Each teleconference featured a panel of expert witnesses who provided testimony and, subsequently, answered questions from the Commissioners.
On Tuesday, April 14, the Commission received testimony from Matthew Gamette, Director of Forensic Services, Idaho State Police; Kim Garrett, CEO of Palomar, Oklahoma City’s Family Justice Center; Richard Hertel, Prosecutor for Ripley County, Indiana, and; Robert Hawkins, Muscogee Creek Nation Police Chief.
Testimony and discussions focused on preventing and reducing domestic violence and sexual assault. Director Gamette addressed the issue of forensic resources: “[I]n this country, for every one case we report, we get 1.5 cases back into the laboratory. To solve DNA backlogs, we need more scientists, bigger facilities, and funding. Turnaround time is directly proportional to lab staffing.” In response to a question regarding reports of increased allegations of domestic violence during the COVID-19 pandemic, CEO Garrett stated that Oklahoma City had experienced a 28 percent increase in domestic violence calls to police and detailed the City’s response to the crisis. Mr. Hertel spoke about the lack of criminal charges brought in domestic violence and sexual assault cases, either because of underreporting or case attrition. He advocated for a victim-centered approach to prosecutions. Chief Hawkins detailed the complexities of prosecuting domestic violence and sexual assault cases under tribal law and the challenges tribal governments face in providing essential services for victims.
On Wednesday, April 15, in a two-part session on technology issues encountered by law enforcement, the Commission heard testimony from Darrin Jones, Executive Assistant Director for Science and Technology for the FBI; Cyrus R. Vance Jr., District Attorney for New York County (New York); Chuck Cohen, Vice President of the National White Collar Crime Center; Bryan Stirling, Director of the South Carolina Department of Corrections, and; Todd Craig, Chief of the Office of Security Technology for the Federal Bureau of Prisons.
In part one of the hearing, testimony and discussion focused on lawful access and the dark web. DA Vance and Mr. Jones both stressed the need for federal legislation to achieve lawful access. Mr. Jones stated, “The impact and magnitude of the lawful access crisis in the United States has grown to a point where the public safety trade-off to the citizens of this country can and should no longer be made privately and independently in the corporate boardrooms of tech companies.” Vice President Cohen discussed the corruption of technology by criminals: “[W]hat is true is criminals tend to be early adopters of emerging technology and to subvert emerging technology to facilitate and obfuscate criminal activities. And this is especially true for online child sexual exploitation and online sex trafficking.”
The second part of the hearing focused on contraband cellphones and other technology issues concerning security in jails and prisons. Director Stirling and Chief Craig stressed that inmates, although physically removed from the public, are still able to continue to commit crimes if they have access to a cellphone, such as drug dealing, gang activity, and even murder – as was the case in a fatal shooting orchestrated behind bars of a correctional officer whose responsibility it was to remove contraband cellphones from prison.
On Thursday, April 16, the Commission heard testimony from Tom Ruocco, Chief of Criminal Law Enforcement, Texas Department of Public Safety; Oxford (Alabama) Police Chief Bill Partridge; Christopher Amon, Chief of the Firearms Operations Division for the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and; David LeValley, Assistant Chief, Detroit Police Department.
Testimony and discussion focused on leveraging technology to aid law enforcement. Chief Ruocco discussed the need to identify and integrate “new technologies and methodologies into [law enforcement] procedures and work flows.” Chief Partridge explained that because smaller jurisdictions do not have the same technology capacity as larger departments, a regional model of crime centers can be a force multiplier for fighting crime in all areas of a county. Chief Amon discussed the National Integrated Ballistic Information Network (NIBIN), which compares ballistic imaging of bullet casings and provides actionable leads to law enforcement. He stressed that due to the high probability of shooters to reoffend, law enforcement must be able to identify them swiftly. “[NIBIN] allows investigators to identify crime guns using cutting edge technology and trace their origin quickly.” Assistant Chief LeValley spoke about Project Green Light Detroit, the first public-private community partnership of its kind. The Project is a mix of real-time crime fighting and community policing aimed at improving neighborhood safety and also while revitalizing and growing local business.
For more information on the Commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice.
Audio recordings and transcripts of the hearings will be posted online once available.
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.
Maryland Cardiologist and Related Practices to Pay the United States $750,000 for Alleged KickbacksRead the Press Release
Mubashar Choudry, M.D., and three medical practices with which he is associated, Washington Cardiovascular Institute, Advanced Vascular Resources, and Washington Vascular Institute, have agreed to pay the United States $750,000 to resolve False Claims Act allegations that they knowingly billed Medicare and TRICARE for claims in violation of the Anti-Kickback Statute (AKS), the Department of Justice announced today. Choudry is a cardiologist who has treated patients in Maryland and Washington, D.C. for peripheral arterial disease.
“Providing impermissible remuneration to induce patient referrals undermines government health care programs,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Patients are entitled to expect that the medical testing they receive and any resulting referral decision are free of financial inducements to the referring physician that may inappropriately impact the physician’s judgment.”
The AKS prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare and TRICARE. Claims submitted to these programs in violation of the Anti-Kickback Statute may give rise to liability under the False Claims Act.
The settlement resolves allegations that, between Jan. 1, 2013 and Dec. 31, 2016, Choudry, Washington Cardiovascular Institute, Advanced Vascular Resources, and Washington Vascular Institute submitted, or caused, false claims in violation of the AKS. Specifically, the defendants allegedly induced patient referrals by providing ankle-brachial index testing on patients under agreements with the referring physicians but without collecting from the physicians the fair market value for the tests. Ankle-brachial index testing is used to detect peripheral arterial disease, which Choudry and the practices would treat.
“Kickback schemes like the scheme alleged in this case not only call into question the integrity of individual medical decisions, but they also raise the cost of health care for all of us,” said U.S. Attorney Robert K. Hur for the District of Maryland. “Patients deserve care based on a doctor’s sound medical judgment, not the doctor’s personal financial interest.”
“For four years, Dr. Choudry and associated medical practices boosted their profits by allegedly paying kickbacks to referring physicians,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the Department of Health and Human Services. “Along with our law enforcement partners, we will continue maintaining the integrity of these vital health programs because taxpayers deserve better.”
The agreement resolves allegations brought by Steven Pringle, a former sales and operations employee of the practices, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The qui tam case is captioned United States, et al., ex rel. Pringle v. Choudry, et al., Case No. GJH 16-cv-3779 (D. Md.). As part of this settlement, Pringle will receive $121,500 as his share of the government’s recovery.
This 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; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; and the Defense Health Agency Office of General Counsel. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Issues Business Review Letter to the Association of Independent Commercial ProducersRead the Press Release
The Department of Justice announced today that it will not challenge a proposal by the Association of Independent Commercial Producers (AICP) to operate an online platform for advertisers to solicit bids from companies that provide production services for commercial advertisements. The department’s position was stated in a business review letter from Assistant Attorney General Makan Delrahim of the Antitrust Division to counsel for the AICP.
According to representations made by the AICP, the AICP platform would allow an advertiser to upload details about its need for a commercial advertising production, including bid specifications and, at the advertiser’s option, budget parameters. The advertiser independently would identify the production company bidders to be invited to participate in the bidding process. Any submitted bids would remain private to both the bidder and the advertiser. After the advertiser has awarded the bids, no bidding data would be retained or collected.
Although exchanging price and other competitive information can facilitate anticompetitive coordination among competitors, the AICP has designed the proposed platform to prevent such information sharing. To this end, the proposed platform will contain numerous safeguards to ensure that neither the nonpublic information an advertiser provides to the platform nor the nonpublic information that bidders submit in response to an advertiser’s job specifications will be shared with other advertisers, bidders, or with third parties. Additionally, the AICP platform will include firewalls to ensure that neither the AICP nor its members can access that third-party information.
Based on the information submitted and representations made by the AICP, the department has no present intention to challenge the operation of the AICP’s proposed online bidding platform.
This statement is made in accordance with the department’s business review procedure, 28 C.F.R. § 50.6, and subject to the limitations and reservations of rights therein. Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530.
After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
Attorney General William P. Barr’s Statement on FCC Chairman Pai’s Draft Order to Approve Ligado’s Application to Facilitate 5G and Internet of Things ServicesRead the Press Release
Attorney General William P. Barr issued the following statement:
“I applaud FCC Chairman Pai's proposal to make available L-band spectrum, to be used together with C-band spectrum, for deployment of advanced wireless services, including 5G. As I said in my speech at the Center for Strategic and International Studies, swift FCC action on spectrum is imperative to allow for the deployment of 5G. This is essential if we are to keep our economic and technological leadership and avoid forfeiting it to Communist China. Freeing up L-band spectrum for use in tandem with the C-band, as the Chairman proposes, should greatly reduce the cost and time it will take to deploy 5G throughout the country and would be a major step toward preserving our economic future. I hope the full Commission moves forward quickly.”
To view the draft order, click here.
U.S. Attorney Shawn N. Anderson Announce $2,932,867.00 Award to Address Covid-19 Pandemic on GuamRead the Press Release
Hagatña – Shawn N. Anderson, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands today announced that Guam received $2,932,867.00 in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19.
The grant, awarded to the Guam Bureau of Statistics and Plans is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Donald J. Trump. Additional funds have been allocated for local jurisdictions on Guam. Those jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications. Funding is also available for the CNMI upon application and meeting grant requirements.
U.S. Attorney Anderson stated, “This important funding is an additional step in the ongoing efforts by the Department of Justice to respond to the COVID-19 outbreak. This particular allocation will support a broad range of activities by the Government of Guam. Other DOJ efforts include my appointing a Coronavirus Fraud Coordinator, who has joined our law enforcement partners in prioritizing criminal investigations related to coronavirus. At the national level, Attorney General William P. Barr created the COVID-19 Hoarding and Price Gouging Task Force to coordinate efforts with the Antitrust Division and U.S. Attorneys across the country where illegal activity is taking place.”
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Attorney General William P. Barr Issues Statement on Religious Practice and Social Distancing; Department of Justice Files Statement of Interest in Mississippi Church CaseRead the Press Release
Attorney General William P. Barr issued the following statement:
"In light of the COVID-19 pandemic, the President has issued guidelines calling on all Americans to do their part to slow the spread of a dangerous and highly contagious virus. Those measures are important because the virus is transmitted so easily from person to person, and because it all too often has life-threatening consequences for its victims, it has the potential to overwhelm health care systems when it surges.
To contain the virus and protect the most vulnerable among us, Americans have been asked, for a limited period of time, to practice rigorous social distancing. The President has also asked Americans to listen to and follow directions issued by state and local authorities regarding social distancing. Social distancing, while difficult and unfamiliar for a nation that has long prided itself on the strength of its voluntary associations, has the potential to save hundreds of thousands of American lives from an imminent threat. Scrupulously observing these guidelines is the best path to swiftly ending COVID-19’s profound disruptions to our national life and resuming the normal economic life of our country. Citizens who seek to do otherwise are not merely assuming risk with respect to themselves, but are exposing others to danger. In exigent circumstances, when the community as a whole faces an impending harm of this magnitude, and where the measures are tailored to meeting the imminent danger, the constitution does allow some temporary restriction on our liberties that would not be tolerated in normal circumstances.
But even in times of emergency, when reasonable and temporary restrictions are placed on rights, the First Amendment and federal statutory law prohibit discrimination against religious institutions and religious believers. Thus, government may not impose special restrictions on religious activity that do not also apply to similar nonreligious activity. For example, if a government allows movie theaters, restaurants, concert halls, and other comparable places of assembly to remain open and unrestricted, it may not order houses of worship to close, limit their congregation size, or otherwise impede religious gatherings. Religious institutions must not be singled out for special burdens.
Today, the Department filed a Statement of Interest in support of a church in Mississippi that allegedly sought to hold parking lot worship services, in which congregants listened to their pastor preach over their car radios, while sitting in their cars in the church parking lot with their windows rolled up. The City of Greenville fined congregants $500 per person for attending these parking lot services – while permitting citizens to attend nearby drive-in restaurants, even with their windows open.[1] The City appears to have thereby singled churches out as the only essential service (as designated by the state of Mississippi) that may not operate despite following all CDC and state recommendations regarding social distancing.
As we explain in the Statement of Interest, where a state has not acted evenhandedly, it must have a compelling reason to impose restrictions on places of worship and must ensure that those restrictions are narrowly tailored to advance its compelling interest. While we believe that during this period there is a sufficient basis for the social distancing rules that have been put in place, the scope and justification of restrictions beyond that will have to be assessed based on the circumstances as they evolve.
Religion and religious worship continue to be central to the lives of millions of Americans. This is true more so than ever during this difficult time. The pandemic has changed the ways Americans live their lives. Religious communities have rallied to the critical need to protect the community from the spread of this disease by making services available online and in ways that otherwise comply with social distancing guidelines.
The United States Department of Justice will continue to ensure that religious freedom remains protected if any state or local government, in their response to COVID-19, singles out, targets, or discriminates against any house of worship for special restrictions."
[1] The City has since stated it will drop the fines, but will continue to enforce the order.
U.S. Trustee Program Acts Quickly to Protect Public Health and Ensure Effective Functioning of the Bankruptcy System During Covid-19 EmergencyRead the Press Release
In response to the COVID-19 pandemic, the Department of Justice’s U.S. Trustee Program (USTP) has taken a number of steps to protect the health of the public and those involved in bankruptcy proceedings while ensuring that the bankruptcy system remains functional during the current public health emergency.
“Our first priority is the safety and health of the general public and all individuals involved in the bankruptcy process,” said USTP Director Cliff White. “In partnership with the courts, private trustees, and other stakeholders, the U.S. Trustee Program has taken steps to protect safety while keeping the bankruptcy system functioning for businesses and consumers who need financial relief.”
Actions taken by the USTP include:
- Halting about 60,000 already scheduled in-person administrative proceedings (known as section 341 meetings) that would have been attended by large numbers of debtors, creditors, and professionals;
- Mandating that future section 341 meetings be conducted by telephonic or other alternative means not requiring in-person attendance, while using best practices to preserve the evidentiary value of the debtor’s sworn testimony;
- Suspending the audit of bankruptcy cases to limit the need for in-person contact by those involved in the audits; and
- Ensuring that debtors going through the bankruptcy process can keep the “recovery rebates” provided for in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Section 341 meetings. To promote social distancing, in mid-March, the USTP postponed already scheduled section 341 meetings to enable them to be rescheduled telephonically or by other alternative means not requiring in-person attendance. At section 341 meetings, the debtor must appear and testify under oath, including answering questions from the U.S. Trustee, the case trustee appointed by the USTP, and creditors. These meetings are open to the public and typically are conducted in person with more than 50 parties in a meeting room at any given time. The USTP subsequently mandated that section 341 meetings for all cases filed through at least May 10, 2020, with meetings scheduled through early summer, be held telephonically or by other alternative means. In cooperation with the courts, special notices are being sent to more than one million parties. The USTP also has issued guidance on preserving the evidentiary value of testimony provided over the telephone and purchased 1,200 conference lines and other equipment to permit remote access to the meetings.
Debtor audits. By law, the USTP contracts with independent firms to perform audits of a sample of individual chapter 7 and chapter 13 cases. Because these audits require debtors to produce additional documentation and often to confer with counsel and financial institutions in responding to auditor requests and reports, the USTP suspended all audits until the current public health emergency allows debtors to meet their obligations in a manner that does not compromise their safety or the public health. Debtor audits are just one of many tools used by the USTP to detect fraud, abuse, and errors.
Recovery rebates. The USTP provided notice to case trustees on the CARES Act to help ensure that the direct payments that many debtors will receive under the law are protected from turn over during bankruptcy proceedings.
The USTP continues to refer instances of suspected fraud and criminal activity in bankruptcy cases to its law enforcement partners and to assist in the prosecution of bankruptcy crimes. Debtors who believe they are victims of a COVID-19 related fraudulent scheme are encouraged to contact their local U.S. Trustee or make a report to the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected].
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The U.S. Trustee Program has 21 regions and 90 field office locations covering 88 judicial districts. Learn more about the U.S. Trustee Program at https://www.justice.gov/ust.
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.
- Halting about 60,000 already scheduled in-person administrative proceedings (known as section 341 meetings) that would have been attended by large numbers of debtors, creditors, and professionals;
Justice Department and Federal Trade Commission Jointly Issue Statement on COVID-19 and Competition in U.S. Labor MarketsRead the Press Release
The Department of Justice’s Antitrust Division and the Federal Trade Commission’s (FTC) Bureau of Competition jointly released a statement today affirming the importance of competition for American workers. The agencies also announced that they will protect competition for workers on the frontlines of the Coronavirus Disease 2019 (COVID-19) response in the United States by enforcing the antitrust laws against those who seek to exploit the pandemic to engage in anticompetitive conduct in labor markets.
The agencies acknowledged that some cooperation between government, business, and individual actors may be necessary in order to protect the health and safety of Americans. At the same time, the agencies informed the public that they are on alert for employers, staffing companies, and recruiters who might engage in collusion or other anticompetitive conduct that harms workers. Examples of such conduct include agreements to suppress or eliminate competition with respect to compensation, benefits, hours worked, and other terms of employment, as well as the hiring, soliciting, recruiting, or retention of workers.
“The Antitrust Division will not tolerate companies and individuals who use COVID-19 to harm competition that cheats payroll and non-payroll workers,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This includes doctors, nurses, first responders, and those who work in grocery stores, pharmacies, delivery and distribution networks, and warehouses, among other essential service providers on the front lines of addressing the crisis. Even in times of crisis, we choose a policy of competition over collusion. The division will use its enforcement authority to ensure that companies and individuals who distort the free market for labor are held to account.”
“Many American workers are under a tremendous amount of stress because of COVID-19, and that includes essential workers and first responders,” said FTC Chairman Joe Simons. “We will not stand for any collusion among employers that would deprive workers of competitive compensation for their hard work.”
For years, the division and the FTC’s Bureau of Competition have challenged unlawful wage-fixing and no-poach agreements, anticompetitive non-compete agreements, and the unlawful exchange of competitively sensitive employee information, including salary, wages, benefits, and compensation data. Companies and individuals who enter into naked wage-fixing and no-poach agreements may be criminally prosecuted by the division, and those that invite collusion may be subject to civil enforcement by the bureau, even absent a collusive agreement, the statement further notes. The agencies may also use their civil enforcement authority to challenge unilateral anticompetitive conduct by employers that harms competition in a labor market. Companies and individuals involved in the hiring, recruiting, retention, or placement of workers should be aware that anticompetitive conduct runs the risk of civil and/or criminal liability.
The division recognizes that protecting American consumers during the COVID-19 event may require significant cooperation between federal, state, local, and tribal governments, private businesses, and individuals.
To that end, the division and the FTC previously released guidance that compiles additional and existing information and resources that can provide those responding to COVID-19 with a general understanding of how the agencies enforce the antitrust laws on joint conduct. At the same time, the agencies remain vigilant about detecting and stopping anticompetitive conduct in labor markets. Therefore, the division, along with the rest of the department, will continue working closely with other federal agencies, including our partners at the FBI, the FTC, the Department of Labor, and the Department of Health and Human Services, to assist its efforts.
The division established the Procurement Collusion Strike Force, an interagency partnership created to combat antitrust crimes and related schemes affecting procurement, grant, and program funding. The Strike Force is on high alert for collusive practices in the sale of COVID-19-related products to federal, state, and local agencies.
If you have information concerning harm to competition in a labor market, please email the division’s Citizen Complaint Center at [email protected] and the bureau’s complaint center at [email protected].
Beyond labor competition matters, anyone with information or concerns about actions by individuals and businesses to take advantage of COVID-19 through other fraudulent and illegal schemes, or other COVID-19-related complaints, should contact the National Center for Disaster Fraud Hotline at 1-866-720-5721 or e-mail [email protected].
Attorney General Barr Issues Guidance to Protect Facilities from Unmanned Aircraft and Unmanned Aircraft SystemsRead the Press Release
Today, Attorney General William P. Barr issued Guidance to Department of Justice components regarding counter-unmanned aircraft systems (C-UAS) actions authorized under the Preventing Emerging Threats Act of 2018 (the Act).
“This guidance was the product of extensive collaboration between the Department of Justice, the Department of Transportation and the FAA,” said Attorney General William P. Barr. “It will ensure that we are positioned for the future to address this new threat, and that we approach our counter-drone efforts responsibly, with full respect for the Constitution, privacy, and the safety of the national airspace.”
The Guidance outlines the process by which authorized department components can request designation of facilities or assets for protection under the Act, and ensures coordination with the FAA when any C-UAS action authorized under the Act might affect aviation safety, civilian aviation and aerospace operations, aircraft airworthiness, and the use of the airspace. This includes conducting a risk-based assessment in consultation with the Secretary of Transportation to examine potential airspace impacts and other considerations.
“The Guidance is another important step forward,” said Deputy Attorney General Jeffrey A. Rosen, who is responsible under the Guidance for reviewing and approving DOJ components’ protection requests. “The number of unmanned aircraft is increasing rapidly, as is their importance to the economy. By further enabling the Department’s efforts to mitigate threats posed by errant or malicious UAS, the Guidance helps to bring us closer to the larger objective of ensuring all forms of air traffic in the National Airspace System operate lawfully and safely.”
Importantly, the Guidance also reflects the department’s dedication to protecting privacy, civil rights, and civil liberties. It contains explicit limitations on the retention and use of any data collected during the course of counter-drone operations and requires each component deploying C-UAS technologies to train personnel on privacy and civil liberties in that context. The Guidance further contains testing, procurement, and training requirements for authorized department personnel.
The publication of the Guidance can be found here.
President’s Commission on Law Enforcement and the Administration of Justice Holds Teleconferences on Crime ReductionRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice held hearings on crime reduction, with panelists speaking about the national and local impact of violent crime, gun crime, and gangs. The hearings were held over three days via teleconference. Each teleconference featured a panel of expert witnesses who provided testimony and, subsequently, answered questions from the Commissioners.
On Tuesday, April 7, the Commission received testimony regarding the national and local impact of violent crime from Amy Blasher, Chief of the Crime Statistics Management Unit for the FBI; U.S. Attorney Justin Herdman for the Northern District of Ohio; Collin County (Texas) Sheriff Jim Skinner; Chief Steve Anderson, Metropolitan Nashville Police Department, and; Camden County (N.J.) Police Chief Scott Thomson (retired).
Testimony and discussions focused on the local and national trends of violent crime and the various initiatives law enforcement are implementing to address it. Chief Blasher recommended that “the nation’s law enforcement agencies fully support a transition to the National Incident-Based Reporting System to improve understanding violent crime … and create a framework for better assessment of crime reduction strategies.” U.S. Attorney Herdman stressed the importance of “community partnerships convened at the federal level and focused on violent crime prevention.” Sheriff Skinner discussed the importance of highway interdiction efforts; because sheriffs have jurisdiction over miles of state and federal highways, they are an asset to fighting weapons, drugs, cash, and human smuggling. Chief Anderson highlighted the importance of devoting resources to high crime neighborhoods, not based on an enforcement model, but to develop lasting relationships, which will transform the lives of the people who live there. Chief Thomson testified to the importance of repairing relationships in communities where high levels of mistrust of law enforcement exist, “community policing has to be meaningful and it has to be based upon human contact… [it’s] not just a squad car sitting there with its windows rolled up and the officer reading a paper or... texting on their phone.”
On Wednesday, April 8, the Commission heard testimony regarding gun crimes from Tom Chittum, Assistant Director of Field Operations, Bureau of Alcohol, Tobacco, Firearms, and Explosives; Melissa Nelson, State Attorney, Florida’s 4th Judicial Circuit; Paul Neudigate, Assistant Chief, Cincinnati Police Department, and; U.S. Attorney Zachary Terwilliger for the Eastern District of Virginia.
Testimony and discussion focused on the impact of gun crimes on public safety and the tools needed to address it. Assistant Director Chittum provided detailed testimony of how firearms end up in the hands of criminals, whether through theft, straw purchases, or, becoming increasingly more common, privately made firearms. State Attorney Nelson, Assistant Chief Neudigate, and U.S. Attorney Terwilliger each testified to the importance of removing crime guns from the streets, engaging with communities to remove high impact players, increasing state and federal firearms prosecutions, and partnering with the ATF, whose expertise, particularly with ballistic technology, is critical to solving gun crimes. “Without ATF, the use of gunshot detection would not be as effective, as we would lack the ability to link the recovered shell casings to crime and individuals,” stated Chief Neudigate.
On Thursday, April 9, the Commission heard testimony regarding gangs from Tim Sini, District Attorney, Suffolk County, New York; Commissioner Geraldine Hart, Suffolk County, New York, Police Department; Victor Gonzalez, Director of Program Services, City of Houston Mayor’s Anti-Gang Office Department of Neighborhoods; and Robert Mateo, President of the National Alliance of Gang Investigators Associations.
Testimony and discussion focused on gang eradication and prevention. Commissioner Hart argued that targeted enforcement alone will not lead to the eradication of MS13 in Suffolk County communities. Success requires law enforcement to partner with community members, schools, clergy, and other community stakeholders. District Attorney Sini discussed the importance of electronic surveillance in eradicating criminal organizations. He advocated for smart investment in technology for local law enforcement. Director Gonzalez discussed prevention and intervention, particularly in schools, to stop at-risk youth from joining gangs. President Mateo testified that laws – even language – have been slow to respond to the evolution of criminal gangs and how they operate. He recommends strengthening state and federal laws to afford prosecutors the tools they need to prosecute gang members for violent crimes.
For more information on the Commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice. Audio recordings and transcripts of the hearings will be posted online once available.
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.
Executive Branch Agencies Recommend the FCC Revoke and Terminate China Telecom’s Authorizations to Provide International Telecommunications Services in the United StatesRead the Press Release
Today, interested Executive Branch agencies[1] unanimously recommended that the Federal Communications Commission (FCC) revoke and terminate China Telecom (Americas) Corp.’s authorizations to provide international telecommunications services to and from the United States. China Telecom is the U.S. subsidiary of a People’s Republic of China (PRC) state-owned telecommunications company.
The Department of Justice led the review of China Telecom’s authorizations, and it based the recommendation on developments since the authorizations were last transferred in 2007, including China Telecom’s failure to comply with the terms of an existing agreement with the Department.
“Today, more than ever, the life of the nation and its people runs on our telecommunications networks,” said John C. Demers, Assistant Attorney General for National Security. “The security of our government and professional communications, as well as of our most private data, depends on our use of trusted partners from nations that share our values and our aspirations for humanity. Today’s action is but our next step in ensuring the integrity of America’s telecommunications systems.”
In its recommendation, the Executive Branch agencies identified substantial and unacceptable national security and law enforcement risks associated with China Telecom’s operations, which render the FCC authorizations inconsistent with the public interest. More specifically the recommendation was based on:
- the evolving national security environment since 2007 and increased knowledge of the PRC’s role in malicious cyber activity targeting the United States;
- concerns that China Telecom is vulnerable to exploitation, influence, and control by the PRC government;
- inaccurate statements by China Telecom to U.S. government authorities about where China Telecom stored its U.S. records, raising questions about who has access to those records;
- inaccurate public representations by China Telecom concerning its cybersecurity practices, which raise questions about China Telecom’s compliance with federal and state cybersecurity and privacy laws; and
- the nature of China Telecom’s U.S. operations, which provide opportunities for PRC state-actors to engage in malicious cyber activity enabling economic espionage and disruption and misrouting of U.S. communications.
Some of the foregoing relate to China Telecom’s failure to comply with a 2007 Letter of Assurance, which was a basis for the existing FCC authorizations. The Department’s National Security Division, Foreign Investment Review Section, identified those compliance issues through its mitigation monitoring program. As a result, the Executive Branch agencies concluded that the national security and law enforcement risks associated with China Telecom’s international Section 214 authorizations could not be mitigated by additional mitigation terms.
More information concerning the Executive Branch agencies’ recommendation is available on the FCC’s International Bureau Filing System (IBFS), under Docket Number ITC-T/C-20070725-00285. The Department of Commerce’s National Telecommunications and Information Administration filed the recommendation on behalf of the Executive Branch agencies.
The Department is committed to working with industry to ensure that critical business needs are considered and addressed in a manner that is consistent with the United States’ national security and law enforcement interests. This action was taken under the legacy, ad hoc arrangement of the Departments of Justice, Defense, and Homeland Security, formerly known as Team Telecom, the operation of which was recently formalized by Executive Order dated April 4, 2020, establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector. Applications referred by the FCC after the date of the Executive Order will be handled under the process outlined therein.
[1] For purposes of the recommendation, the Executive Branch agencies included the Departments of Justice, Homeland Security, Defense, State, Commerce, and the United States Trade Representative.
Statement from Assistant Attorney General Makan Delrahim on District Court Decision in U.S. v. Sabre Corp. and Farelogix Inc.Read the Press Release
"At trial, the Antitrust Division argued that Sabre’s acquisition of Farelogix would extinguish a crucial constraint on Sabre’s market power and would result in higher prices and less innovation. While we are disappointed with the court’s decision, we appreciate the court’s thoughtful consideration of this important case. We will closely review the court’s opinion and consider next steps in light of our commitment to preserving competition for the benefit of the American consumer."
Department of Justice Clears on Google’s Application to the Federal Communications Commission to Operate a Portion of the Pacific Light Cable Network SystemRead the Press Release
Today, the Department of Justice filed a petition with the Federal Communications Commission (FCC) concerning Google LLC’s application to operate a subsea cable.
On behalf of itself as well as the Departments of Homeland Security and Defense, the department advised the FCC that those agencies do not oppose Google LLC’s application (through its subsidiary GU Holdings Inc.) to operate the segment of the Pacific Light Cable Network System connecting the United States to Taiwan for the next six months, pending a final disposition of the license application, so long as that temporary authority is conditioned on certain obligations. Those obligations are set forth in a Provisional National Security Agreement that was executed by GU Holdings Inc. and the foregoing agencies on April 8, 2020. Google applied to the FCC for this operating authority in a Special Temporary Authority on April 2, 2020 (the “STA”).
In its application for the STA, Google emphasized “an immediate need to meet internal demand for capacity between the U.S. and Taiwan” and that without the sought temporary authority Google would likely have to seek alternative capacity at “significantly higher prices.” After discussions with Google representatives, the departments concluded that the obligations undertaken by Google in the Provisional National Security agreement would be sufficient to preserve their abilities to enforce the law, protect national security, and preserve public safety.
Under the terms of the Provisional National Security Agreement, Google has agreed to a range of operational requirements, notice obligations, access and security guarantees, as well as auditing and reporting duties, among others.
The Provisional National Security Agreement also includes a commitment by Google to “pursue diversification of interconnection points in Asia,” as well as to establish network facilities that deliver traffic “as close as practicable” to its ultimate destination. This term reflects the views of the Executive Branch that a direct cable connection between the United States and Hong Kong would pose an unacceptable risk to the national security and law enforcement interests of the United States.
More information concerning the license application and the departments’ response is available here.
The department is committed to working with industry to ensure that critical business needs are considered and addressed in a manner that is consistent with the United States’ national security and law enforcement interests. This action was taken under the legacy, ad hoc arrangement of the departments formerly known as Team Telecom, the operation of which was recently formalized by Executive Order (April 4, 2020), establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector. Applications referred by the FCC after the date of the Executive Order will be handled under the process outlined therein.
Justice Department Settles Immigration-Related Retaliation Claim Against Minnesota CompanyRead the Press Release
WASHINGTON – The Department of Justice today announced that it has reached a settlement agreement with Taiyo International Inc. (Taiyo), a wholly-owned subsidiary of Japan-based Taiyo Kagaku that develops, produces, and sells various food and pharmaceutical ingredients. The settlement resolves a claim that Taiyo retaliated against an applicant in violation of the antidiscrimination provision of the Immigration and Nationality Act (INA).
“Employees and applicants must be able to raise concerns about discrimination without being subjected to retaliation that may deter them and others from asserting their rights,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We appreciate Taiyo’s cooperation and are pleased that Taiyo has agreed to offer back pay to the affected U.S. citizen and take measures to ensure compliance with the law.”
Based on its investigation, the Department concluded that Taiyo rescinded a job offer it extended to a naturalized U.S. citizen in retaliation for her complaints of discrimination. The Department determined that, during the applicant’s three interviews, Taiyo employees repeatedly asked the applicant improper questions related to her national origin, citizenship status, the timing of her naturalization, and her valid work authorization documents. After Taiyo offered her the job, the applicant sent an email to the interviewers complaining that the treatment she received was discriminatory, and Taiyo immediately rescinded the job offer.
The INA’s antidiscrimination provision prohibits employers from discriminating in hiring against employees because of their national origin, citizenship status, or immigration status. The statute also prohibits employers from retaliating against workers because they opposed unlawful employer conduct or conduct that they reasonably believe was unlawful discrimination.
Under the terms of the settlement agreement, Taiyo will pay a civil penalty for the violation, offer back pay plus interest totaling $10,400.00 to the worker, post notices informing workers of their rights under the INA’s antidiscrimination provision, train its staff, and be subject to departmental monitoring for three years.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the antidiscrimination provision of the INA. Among other things, the statute prohibits discrimination against individuals who are authorized to work based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
Employers can find information on how to avoid unlawful discrimination based on citizenship status or national origin here. Workers can find information about their rights under the antidiscrimination provision of the INA here. For more information about protections against employment discrimination under the INA, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
El Departamento de Justicia Resuelve una Demanda Relacionada con la Inmigración contra una Empresa de MinnesotaRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Taiyo International Inc. (Taiyo), una filial íntegramente propiedad de Taiyo Kagaku, cuya sede está en Japón, que desarrolla, produce y vende distintos ingredientes farmacéuticos y de alimentos. El acuerdo resuelve una afirmación que Taiyo tomó represalias contra una aspirante, en contra de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés).
«Los empleados y aspirantes deben tener la posibilidad de vocalizar sus preocupaciones acerca de la discriminación sin ser sujetos a represalias que podrían disuadirlos a ellos y a otros de hacer valer sus derechos», afirmó el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «Valoramos la cooperación de Taiyo y nos complace ver que Taiyo ha acordado ofrecer pagos retroactivos a la ciudadana estadounidense afectada y tomar medidas para asegurar el cumplimiento con la ley».
Con base en su investigación, el Departamento concluyó que Taiyo había rescindido una oferta de trabajo que había extendido a una ciudadana estadounidense naturalizada como represalia por sus denuncias de discriminación. El Departamento determinó que, durante las tres entrevistas de la aspirante, los empleados de Taiyo le hicieron preguntas impropias en repetidas ocasiones acerca de su nacionalidad de origen, estatus de ciudadanía, cuándo se naturalizó y sus documentos válidos de autorización para trabajar. Después de que Taiyo le ofreció el trabajo, la aspirante envió un correo electrónico a los entrevistadores quejándose que el trato que había recibido fue discriminatorio y Taiyo inmediatamente rescindió la oferta de trabajo.
La disposición antidiscriminatoria de la INA prohíbe que los empleadores discriminen a empleados durante el proceso de contratación por motivos de su nacionalidad de origen, estatus de ciudadanía o estatus migratorio. Asimismo, la ley prohíbe que los empleadores tomen represalias contra trabajadores porque estos se hayan opuesto a una conducta ilícita por parte del empleador o a cualquier otra conducta que ellos crean que constituye discriminación ilícita.
Conforme a los términos del acuerdo conciliatorio, Taiyo pagará una sanción civil por la infracción, ofrecerá pagos retroactivos más intereses que se ascienden a un total de 10.400,00 $ a la trabajadora, publicará notificación para informar a los trabajadores de sus derechos en virtud de la disposición antidiscriminatoria de la INA, capacitará a su personal y se someterá a la supervisión del departamento durante tres años.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe que se discrimine a individuos que cuentan con la debida autorización para trabajar con base en su estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas; las represalias o la intimidación.
Los empleadores encontrarán más información sobre cómo evitar la discriminación ilícita por motivos de estatus de ciudadanía o nacionalidad de origen aquí. Los trabajadores encontrarán más información acerca de sus derechos en virtud de la disposición antidiscriminatoria de la INA aquí. Para más información sobre las protecciones que ofrece la INA contra la discriminación en el empleo, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; envíe en correo electrónico [email protected]; o visite las páginas web de la IER en inglés y español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Aquellos aspirantes o empleados que creen haber sido sometidos a: discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; discriminación en el proceso de la verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) con base en su ciudadanía, estatus migratorio o nacionalidad de origen; o represalias pueden presentar una denuncia o deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Attorney General Will Chair Committee to Review Foreign Participation in the U.S. Telecommunications SectorRead the Press Release
On Saturday, the President by Executive Order formally established an interagency committee to advise the Federal Communications Commission (FCC) on national security and law enforcement concerns related to certain license applications by companies under foreign ownership or control. The Attorney General will chair the committee, which includes the Secretaries of Homeland Security and Defense.
Saturday’s Executive Order, “Establishing the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector,” formalizes a process known as Team Telecom that has existed for years, but which will benefit from a transparent and empowered structure.
“In the digital age, our telecommunications networks are more important than ever, and not just to the economy,” said Attorney General William P. Barr. “This is a national security and public safety issue. That’s why the federal government must be vigilant and ensure that a foreign adversary cannot undermine the networks our country depends on.”
The Justice Department’s National Security Division, through its Foreign Investment Review Section, will represent the Attorney General on the Committee. Other departments and agencies will serve as Advisors to the Committee.
“We look forward to continuing to work with our federal partners to ensure that our nation’s telecommunications networks maintain the security, integrity, and continuity that the American people expect and American security demands,” said John C. Demers, Assistant Attorney General for National Security. “We welcome foreign participation in our communications system, but we must ensure that anyone licensed to do business here is a trusted partner. The National Security Division is ready and proud to lead this effort to increase transparency to the public, certainty and timeliness for the business community, and security for the nation.”
The Committee will review applications for telecommunications, submarine cable landing, and other FCC licenses which the FCC refers for review of national security and law enforcement concerns. Under the Executive Order, once an application is deemed complete, the Committee must complete an initial review of an application within 120 days, and if a review reveals potential risks, must complete a secondary assessment within 90 days. Even complex applications would be reviewed within about a year, substantially faster than Team Telecom has functioned historically. The EO also establishes a framework for Advisors to the Committee to contribute to the process, ensuring that the FCC receives a timely recommendation that reflects a coordinated Executive Branch view. Those recommendations will continue to be filed on the FCC’s public docket, and the FCC will continue to make the final decision on the disposition of any application.
Department of Justice Issues Business Review Letter to Medical Supplies Distributors Supporting Project Airbridge Under Expedited Procedure for COVID-19 Pandemic ResponseRead the Press Release
The U.S. Department of Justice announced today that it will not challenge collaborative efforts of McKesson Corporation, Owens & Minor Inc., Cardinal Health Inc., Medline Industries Inc., and Henry Schein Inc. (together, Medical Supplies Distributors) to expedite and increase manufacturing, sourcing, and distribution of personal-protective equipment (PPE) and coronavirus-treatment-related medication. These collaborative efforts are part of an emergency response developed and led by the Federal Emergency Management Agency (FEMA) and the U.S. Department of Health and Human Services (HHS) to address supply needs arising from the COVID-19 pandemic.
“These Medical Supplies Distributors should be applauded for their efforts to both assist the United States in responding to the COVID-19 pandemic and stay within the bounds of antitrust law,” says Assistant Attorney General Makan Delrahim. “I also applaud the attorneys and economists of the Antitrust Division, who worked expeditiously to finish in days a review process that ordinarily takes many months.”
Under the collaboration, the Medical Supplies Distributors work at the direction of the United States government to help resolve supply challenges presented by the pandemic. One such initiative, Project Airbridge, was developed by the United States as a partnership between the Medical Supplies Distributors, among others, in addition to logistics companies, under the direction of FEMA and HHS. Project Airbridge’s purpose is to quickly source and airlift PPE, including masks, gowns, gloves, and other equipment designed to protect against infection, as well as to distribute coronavirus-treatment-related medication to areas of greatest need across the country.
The Medical Supplies Distributors submitted their business review request pursuant to the expedited, temporary review procedure, detailed in the Joint Antitrust Statement Regarding COVID-19 (the "joint statement") and issued on March 24 by both the department and the Federal Trade Commission (FTC). In the Joint Statement, the department announced its aim to resolve COVID-19-related business review requests within seven calendar days of receiving all necessary information.
Copies of the business review request and the department’s response are available on the Antitrust Division’s website at https://www.justice.gov/atr/business-review-letters-and-request-letters, as well as in a file maintained by the Antitrust Documents Group of the Antitrust Division. After a 30-day waiting period, any documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure. Supporting documents in the file will be maintained for a period of one year, and copies will be available upon request to the FOIA/Privacy Act Unit, Antitrust Documents Group at [email protected].
President’s Commission on Law Enforcement and the Administration of Justice Holds Teleconferences Related to Social Problems Impacting Public SafetyRead the Press Release
This week, the President’s Commission on Law Enforcement and the Administration of Justice held hearings on social problems impacting public safety, specifically homelessness, federal programming, and substance abuse. The hearings were held over three days via teleconference. Each teleconference featured a panel of expert witnesses who provided testimony and, subsequently, answered questions from the Commissioners.
On Tuesday, March 31, the Commission received testimony regarding homelessness from Salt Lake City (Utah) Police Chief Mike Brown; John Ashmen, President/CEO of Citygate Network, and; Chief Brian Redd of the Utah Department of Public Safety, State Bureau of Investigation.
Testimony and discussions focused on the intersection of public safety and homelessness. Chief Brown asserted that “law enforcement is consistently put in the position of triaging homelessness, which often is a symptom of underlying mental health and/or substance use issues.” John Ashmen, CEO of Citygate Network, suggested that the number of people experiencing homelessness in the United States “confirms that homeless services providers and the law enforcement community need to collaborate like never before.” Chief Brian Redd provided a detailed account of the successes of Operation Rio Grande, an initiative to address public safety issues in the Rio Grande District of downtown Salt Lake City near Utah’s 1,000-bed homeless shelter. An additional encampment of more than 2,000 individuals had formed around the shelter, resulting in an open-air drug market, violence, victimization, and public health concerns. The Operation deployed a three-pronged approach: law enforcement, treatment and housing, and dignity of work – designed to help individuals become self-sufficient.
The panelists also outlined the pressures law enforcement professionals are currently experiencing in the face of the COVID-19 pandemic, whether mitigating the risks of the virus from hitting the homeless population or balancing public safety with prisoner safety.
On Wednesday, April 1, the Commission heard testimony regarding federal programming from Christopher M. Patterson, Regional Administrator of the U.S. Department of Housing and Urban Development (HUD) in Region IX; Dr. Matt Miller, Acting Director for Suicide Prevention, Office of Mental Health and Suicide Prevention for the U.S. Department of Veterans Affairs, and; Dr. Robert Marbut, Jr., Executive Director of the U.S. Interagency Council on Homelessness.
Testimony and discussions focused on federal programming for social issues. Chris Patterson of HUD spoke of the Foster Youth to Independence program. As youth age out of foster care, they become vulnerable to homelessness, trafficking, and other dangers. Mr. Patterson underscored that it is crucial to get youth into proper housing through a voucher program as they age out of the foster care system. Dr. Miller called attention to the term “lethal means safety,” which “refers to decreasing the mortality associated with certain forms commonly used to implement suicide.” He stated that suicide is often an impulsive act, further noting that the chances of suicide and death by suicide increase “up to six times” when individuals have access to firearms. Dr. Robert Marbut, Jr. argued that officers often have more success getting homeless into recovery programs through innovative law enforcement programs that feature constant engagement with those requiring assistance.
On Thursday, April 2, the Commission heard testimony regarding substance abuse from Carson Fox, CEO of the National Association of Drug Court Professionals; Mike Sena, Executive Director of the Northern California High Intensity Drug Trafficking Area (HIDTA); Middlesex County (Mass.) Sheriff Peter J. Koutoujian; Sue J. DeLacy, Chief Deputy Probation Officer for the Orange County (Calif.) Probation Department, and; Michael B. Stuart, United States Attorney for the Southern District of West Virginia.
Testimony and discussion focused on public safety and substance abuse. Mr. Fox asserted that law enforcement plays a role in the success of treatment courts across the nation. When law enforcement work side-by-side with other providers and agencies, it significantly affects the outcome. Mike Sena argued that to successfully address substance abuse in our communities, the public safety community needs real-time data. He suggested that HIDTA’s ODMap, which tracks real-time overdose data, be adapted nationwide. Sheriff Koutoujian addressed the need for Medicated Assisted Treatment programs to treat those who are experiencing opioid dependence throughout jail and prison systems nationwide. U.S. Attorney Stuart called attention to the opioid crisis in the Southern District of West Virginia. He called for a substantive discussion for developing a picture of what victory over substance abuse would look like.
For more information on the Commission, please visit: https://www.justice.gov/ag/presidential-commission-law-enforcement-and-administration-justice. Audio recordings and transcripts of the hearings will be posted online once available.
Please note, these hearings were originally to take place in person in Orange County, Calif., but were changed to teleconference format in response to CDC recommendations regarding Covid-19.