District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Justice Department Settles Retaliation Claim Against Texas OrganizationRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with Southwest Key Programs (SKP), an organization that operates detention centers in several states, including Texas. The settlement resolves a claim that SKP retaliated against a former employee in violation of the antidiscrimination provision of the Immigration and Nationality Act (INA).
“Employers should never retaliate against workers for stating that they will file a discrimination complaint with the government,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice will vigorously pursue claims involving employers that retaliate against workers and we are pleased to have recovered financial compensation from Southwest Key Programs for the affected worker.”
According to the Department’s investigation, a former SKP employee applied for several jobs with SKP after receiving his renewed employment authorization documentation. However, an SKP human resource staffer told the former employee that SKP would not rehire him because he previously stated that he would file a discrimination complaint regarding a dispute about his employment documentation. The Department also concluded that the SKP staffer further retaliated against the former employee by spreading misinformation about him to SKP colleagues to prevent him from being rehired.
The INA’s antidiscrimination provision generally prohibits employers from retaliating against workers because they intend to file a discrimination complaint, or for exercising rights protected under that provision.
Under the terms of the settlement agreement, SKP will, among other things, give the former employee front pay, and back pay plus interest, totaling over $68,000; pay a civil penalty; train its workers; and be subject to departmental monitoring.
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 their 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 Denuncia contra una Organización en Tejas Motivada por RepresaliasRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Southwest Key Programs (SKP), una organización que opera centros de detención en varios estados, entre ellos Tejas. El acuerdo resuelve una denuncia que afirmó que SKP había tomado represalias contra un exempleado, en contra de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés).
«Los empleadores nunca deben tomar represalias contra un trabajador porque el mismo haya declarado que va a presentar una denuncia de discriminación ante el Gobierno», afirmó Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «El Departamento de Justicia seguirá persiguiendo enérgicamente denuncias relacionadas con empleadores que toman represalias contra sus trabajadores por haber hecho valer sus derechos y nos complace haber recuperado compensación monetaria de Southwest Key Programs para el trabajador afectado».
Según la investigación del Departamento, un exempleado de SKP había solicitado varios puestos con SKP tras recibir su documentación renovada de autorización para trabajar. No obstante, un miembro del personal de recursos humanos de SKP le dijo al exempleado que SKP no lo iba a recontratar por haber declarado anteriormente que iba a presentar una denuncia de discriminación motivada por una discusión acerca de su documentación de empleo. Más aún, el Departamento concluyó que el miembro del personal de SKP tomó represalias adicionales contra el exempleado al difundir mala información errónea sobre él ente colegas de SKP para prevenir que fuera recontratado. Por lo general, la disposición antidiscriminatoria de la INA prohíbe que los empleadores tomen represalias contra sus trabajadores porque los mismo tengan la intención de presentar una denuncia de discriminación o por haber hecho valer sus derechos en virtud de esa disposición.
Conforme a los términos del acuerdo conciliatorio, entre otras cosas, SKP pagará pagos anticipados, y pagos retroactivos más intereses, al exempleado, un total que asciende a 68.000 $; pagará una sanción civil; capacitará a sus trabajadores y se someterá a la supervisión del Departamento.
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 a [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.
Department of Justice and Department of Health and Human Services Partner to Distribute More Than Half a Million Medical Supplies Confiscated from Price GougersRead the Press Release
The U.S. Department of Justice and U.S. Department of Health and Human Services (HHS) today announced the distribution of hoarded personal protective equipment (PPE), including approximately 192,000 N95 respirator masks, to those on the frontline of the novel coronavirus disease 2019 (COVID-19) response in New York and New Jersey.
The FBI discovered the supplies during an enforcement operation by the Department of Justice's COVID-19 Hoarding and Price Gouging Task Force on March 30 and alerted HHS which used its authority under Defense Production Act (DPA) to order that the supplies be immediately furnished to the United States. In addition to the N95 respirator masks, the supplies found included 598,000 medical grade gloves and 130,000 surgical masks, procedure masks, N100 masks, surgical gowns, disinfectant towels, particulate filters, bottles of hand sanitizer, and bottles of spray disinfectant.
"If you are amassing critical medical equipment for the purpose of selling it at exorbitant prices, you can expect a knock at your door," said Attorney General William P. Barr. "The Department of Justice's COVID-19 Hoarding and Price Gouging Task Force is working tirelessly around the clock with all our law enforcement partners to ensure that bad actors cannot illicitly profit from the COVID-19 pandemic facing our nation."
"Cracking down on the hoarding of vital supplies allows us to distribute this material to the heroic healthcare workers on the frontlines who are most in need," said HHS Secretary Alex Azar. "Thanks to the quick work of the White House, the Department of Justice, and HHS, the seized resources were distributed in days to the doctors, nurses and first responders who need them. President Trump's all-of-America approach to combating the coronavirus involves an aggressive approach to stopping hoarding, and the American public can play a role by being on the lookout for this behavior."
HHS will pay the owner of the hoarded equipment pre-COVID-19 fair market value for the supplies and has begun distributing to meet the critical need for the supplies among healthcare workers in New York and New Jersey.
Specifically, after inspecting the supplies, HHS arranged for the delivery of the PPE to the New Jersey Department of Health, the New York State Department of Health and the New York City Department of Health and Mental Hygiene.
"This is the first of many such investigations that are underway," said Peter Navarro, DPA Policy Coordinator and Assistant to the President. "Our FBI agents and other law enforcement agencies are tracking down every tip and lead they get, and are devoting massive federal resources to this effort. All individuals and companies hoarding any of these critical supplies, or selling them at well above market prices, are hereby warned they should turn them over to local authorities or the federal government now or risk prompt seizure by the federal government."
Vendors interested in selling PPE to the federal government should contact the Federal Emergency Management Agency at https://www.fema.gov/coronavirus/how-to-help. Anyone who learns of hoarding or price gouging of PPE should report it to the National Center for Disaster Fraud by dialing 1-866-720-5721 or emailing [email protected].
HHS and the Federal Emergency Management Agency continue to collaborate with private industry to overcome the shortage of PPE across the country amid the COVID-19 pandemic.
The Defense Production Act and Presidential Executive Order are intended to prevent accumulation in excess of reasonable demands of business, personal, or home consumption, or for the purpose of resale at prices in excess of prevailing market prices, also known as hoarding and price gouging, of medical supplies critical to the COVID-19 response.
The Department of Justice Files Sexual Harassment Lawsuit Against Owners and Managers of Rental Properties in Russellville, KentuckyRead the Press Release
The Department of Justice announced today that it has filed a lawsuit alleging that the co-owners and managers of rental properties in Russellville, Kentucky, violated the Fair Housing Act by subjecting female tenants to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Western District of Kentucky, alleges that Gordon Whitescarver sexually harassed a number of female tenants since at least 2012. According to the complaint, he, among other things, made repeated and unwelcome sexual comments, entered the homes of female tenants without their consent, touched female tenants’ bodies without their consent, requested sexual favors, offered reduced or free rent in exchange for sexual favors, and took adverse housing-related actions against female tenants who refused his sexual advances. The lawsuit also names as a defendant Betsy Whitescarver, Gordon Whitescarver’s wife, who co-owns and manages the properties. According to the complaint, she threatened and retaliated against women who complained about her husband’s harassment.
“No woman should have to endure sexual harassment to remain in her home,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Fair Housing Act protects tenants from sexual harassment and retaliation by their landlords, and the Justice Department will hold accountable those who engage in such reprehensible and illegal conduct and will work tirelessly to obtain relief for their victims.”
“Be it Logan County or Louisville, this foul conduct towards women will not be tolerated in the Western District of Kentucky,” said Russell Coleman, the U.S. Attorney for the Western District of Kentucky.
In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices; a public awareness campaign, including the release of a national Public Service Announcement; and a new joint Task Force with HUD to combat sexual harassment in housing. Since launching the initiative, the Department of Justice has filed 14 lawsuits alleging a pattern or practice of sexual harassment in housing.
Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties to vindicate the public interest, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by the Whitescarvers, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select option number 98 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
Department of Justice Makes $850 Million Available to Help Public Safety Agencies Address COVID-19 PandemicRead the Press Release
The Department of Justice today announced that it is making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local, and tribal governments to apply immediately for these critical funds. The department is moving quickly to make awards, with the goal of having funds available for drawdown within days of the award.
“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to Congress for making these resources available and for the show of support this program represents.”
The solicitation, posted by the Bureau of Justice Assistance, within the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to Jan. 20, 2020, subject to federal supplanting rules.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for this emergency funding. A complete list of eligible jurisdictions and their allocations can be found at https://bja.ojp.gov/program/fy20-cesf-allocations.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Court Enters Final Judgment in T-Mobile/Sprint TransactionRead the Press Release
Today, a federal district court in Washington, D.C., concluded that the Antitrust Division’s resolution of its challenge to the merger between T-Mobile and Sprint was in the public interest and entered the proposed final judgment following an extensive Tunney Act process. This order gives effect to the settlement that the Department of Justice and numerous states reached with the merging parties and Dish Network Corp. to allow the T-Mobile/Sprint transaction to proceed, subject to substantial divestitures and other remedies.
“I am pleased that the court has entered the final judgment, and I appreciate all of the work from Judge Kelly and the district court staff, particularly in the midst of the current COVID-19 disruption,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The T-Mobile/Sprint transaction, as remedied by the Department of Justice, will combine T-Mobile’s and Sprint’s complementary spectrum assets while preserving competition. Our settlement promises to expand output further by bringing Dish’s extensive spectrum holdings to the market. The end result will be strengthened competition with high-quality 5G networks that will benefit American consumers nationwide.”
The Antitrust Division filed a civil antitrust lawsuit on July 26, 2019, in the U.S. District Court for the District of Columbia along with the settlement that resolves the department’s competitive concerns. The attorneys general for the states of Arkansas, Colorado, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma, South Dakota, and Texas have each joined in this settlement. Separately, Judge Marrero in the Southern District of New York denied the request of New York, California, and a minority group of states to enjoin the proposed transaction nationwide. Judge Marrero’s opinion relied, in part, on the ability of the Antitrust Division’s remedies to protect against competitive harms that may otherwise have occurred.
The FCC also approved the transaction after a thorough examination, with certain commitments as a condition of approval.
Under the terms of the proposed settlement, T-Mobile and Sprint must divest Sprint’s prepaid business, including the Boost Mobile, Virgin Mobile, and Sprint prepaid brands, to Dish Network Corp., a Colorado-based satellite television provider. The proposed settlement also provides for a divestiture of substantial spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available for divestiture to Dish at least 20,000 cell sites and hundreds of retail locations. T-Mobile must also provide Dish with robust access to the T-Mobile network for a period of seven years while Dish transitions the business and builds out its 5G network.
T-Mobile US Inc. is a Delaware corporation headquartered in Bellevue, Washington. In 2018, T-Mobile posted revenues of more than $43 billion. Deutsche Telekom AG, a German corporation headquartered in Bonn, Germany, is the controlling shareholder of T-Mobile US Inc.
Sprint Corporation is a Delaware corporation headquartered in Overland Park, Kansas. In 2018, its posted revenue was over $32 billion. Sprint is controlled by SoftBank Group Corp., a Japanese corporation headquartered in Tokyo, Japan.
Executive Office for Immigration Review Proposes Interim Final Rule to Add Two Members to Board of Immigration AppealsRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) submitted to the Federal Register for publication an interim final rule with a request for comments that is now available for public inspection and is expected to publish in tomorrow’s Federal Register. The interim rule amends Department of Justice regulations relating to the organization of the Board of Immigration Appeals (BIA) by expanding the number of Board members from 21 to 23. The proposed expansion will more efficiently accomplish EOIR’s commitment to promptly decide a large volume of cases, as well as review a large quantity of appeals of those cases. Written comments regarding the interim rule will be considered if submitted per the instructions in the publication.
The timely and impartial adjudication of cases is the highest priority for EOIR, and EOIR requires additional Board members to manage the agency’s growing caseload. The pending caseload at the BIA essentially doubled from FY 2018 to FY 2019, from 35,503 to 70,183. Furthermore, due to increased inflows of illegal immigration, the Department of Homeland Security filed 504,848 new cases with EOIR in FY 2019, an increase of nearly 200,000 new cases over FY 2018 and the highest single-year total in EOIR’s history. Further, EOIR has made concerted efforts in recent years to hire more immigration judges, hiring 237 between the beginning of FY 2017 and the end of FY 2019, more than the previous seven fiscal years combined. As both the number of new cases and the number of immigration judges increase, EOIR anticipates that the caseload at the BIA will also continue to increase, warranting a need for additional Board members.
Attorney General William P. Barr Announces the Appointment of Peter McCoy as Interim U.S. Attorney for the District of South CarolinaRead the Press Release
Attorney General William P. Barr announced today the appointment and swearing in of Peter M. McCoy, Jr. as Interim U.S. Attorney for the District of South Carolina, pursuant to 28 U.S.C. § 546.
As Interim U.S. Attorney, McCoy is the chief federal law enforcement officer responsible for federal criminal prosecutions and civil litigation involving the United States in the District of South Carolina. He supervises an office of approximately 62 Assistant U.S. Attorneys, 75 support staff, and 18 contract support staff, all of whom are responsible for prosecuting federal crimes affecting the district, including narcotics and firearms cases, gang violence, human trafficking, white-collar crime, securities fraud, public corruption, terrorism and civil rights violations. The office also defends the United States in civil cases and collects debts owed to the United States.
“I am pleased to appoint Peter McCoy as Interim U.S. Attorney for the District of South Carolina. Peter’s extensive legal and prosecutorial experience, and strong commitment to public safety and the rule of law will make him an able leader of this office,” said Attorney General William P. Barr. “Peter has been a fierce advocate for the rights of children and strict accountability for sex offenders and other violent criminals. He will make an outstanding U.S. Attorney for the people of South Carolina.”
Before being sworn in as Interim U.S. Attorney, McCoy was a partner at McCoy and Stokes Law Firm. McCoy also served as a member of the South Carolina House of Representatives and focused his legislative work on protecting children and keeping neighborhoods safe.
A Charleston, South Carolina, resident and graduate of Hampden-Sydney College and Regent University Law School, McCoy spent more than five years as a criminal prosecutor in the Ninth Circuit Solicitor’s Office, handling thousands of crimes involving violence, guns, and drugs. As a legislator, McCoy was the lead sponsor of legislation requiring the mandatory reporting of child sexual abuse as well as legislation establishing a mandatory minimum sentence for anyone who commits a crime while out on bond. He worked to pass statutes that ensure violent repeat criminal offenders do not remain out of bond if they continue to commit crimes.
For more information about the U.S. Attorney’s Office for the District of South Carolina, please visit https://www.justice.gov/usao-sc.
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.
COVID-19: Servicemembers’ Civil Rights - Message from the Assistant Attorney GeneralRead the Press Release
As the Assistant Attorney General for the Civil Rights Division of the Department of Justice, I am entrusted with the responsibility of protecting the civil rights of the brave men and women of our nation’s armed forces, and our nation’s veterans. Since COVID-19 has come to our shores, active duty servicemembers and members of the National Guard and Reserve have shouldered new burdens as they work to protect our country. We owe it to them to ensure that COVID-19 does not jeopardize their economic livelihood. That is why the Department of Justice is committed to vigorously enforcing all the civil rights laws, including those that protect the housing and civilian employment rights of servicemembers.
The Civil Rights Division enforces multiple federal laws that protect the rights of servicemembers and veterans. We protect servicemembers’ financial and housing rights by enforcing the Servicemembers Civil Relief Act, or the SCRA. Since January 2017, our SCRA settlements have included over $10 million in damages and civil penalties. We protect servicemembers’ civilian employment rights by litigating claims against employers who violate the Uniformed Services Employment and Reemployment Rights Act, or USERRA. And, we protect their voting rights by enforcing the Uniformed and Overseas Citizens Absentee Voting Act, also known as UOCAVA. The Division also safeguards the rights of servicemember spouses, dependents, and veterans eligible for certain protections under the SCRA and UOCAVA.
On March 13, 2020, the Department of Defense (DOD) issued a stop movement order on domestic travel for all military personnel and their families until at least May 11, 2020, and possibly longer. This order is necessary to prevent the spread of the virus and protect force readiness. However, this order also forced servicemembers to make abrupt changes to their housing plans and employment responsibilities.
We understand that prior to this stop movement order, many servicemembers signed leases in anticipation of movement to a new duty station under previously received orders. These servicemembers are now unable to occupy the leased property, and must maintain housing at their current location. As a result, they face the prospective burden of paying rent at two properties for an uncertain amount of time. Relatedly, there may also be servicemembers who have already terminated leases in anticipation of moving elsewhere, but now need a place to stay.
Consistent with federal and state law, we strongly encourage property managers to afford the men and women of our armed forces maximum flexibility to adjust their residential lease obligations as needed to comply with military orders during this uncertain time. Where the federal laws that protect servicemembers are broken, the Department of Justice will act swiftly to bring violators to justice.
With respect to members of our Guard and Reserve, already more than 2,000 Guardsmen have been deployed in 27 states to respond to the pandemic. This number will undoubtedly increase as the Nation’s response continues. More members of the National Guard may be deployed to transport medical supplies, help with drive-through testing, and assist local law enforcement. These servicemen and women are being asked to leave their homes, their jobs, and their families. This will put extra burdens on not just servicemembers and their families, but also on their employers, landlords, and banks.
It is at this time we also ask employers and landlords to be mindful of the responsibilities they have with respect to members of the National Guard and Reserve under USERRA, the SCRA and similar state laws. These servicemembers are being pulled from their homes and jobs and tasked with vital operations in protection of our most vulnerable citizens. When this emergency ends, USERRA and other state laws will protect servicemembers’ prompt reemployment and continued pension benefits. These laws also protect servicemembers from discrimination based on their service.
Servicemembers undertake their duties at great personal sacrifice and as the nation battles the invisible enemy of COVID-19 they are once again answering the call of duty. They should not have to bear undue financial burden as a result of their military service.
The Department of Justice, in partnership with other federal agencies, is committed to devoting time and resources to protect the rights of servicemembers, and the employees of the Department of Justice are proud to serve our nation’s men and women in uniform. The Civil Rights Division has not hesitated in recent years to enforce the SCRA against landowners — for example, in 2019 the Division obtained a $1.59 million settlement against a company that manages properties in the Virginia Beach area for obtaining unlawful default judgments against military tenants on active duty. The Civil Rights Division has also filed over 100 complaints and settled almost 200 cases under USERRA and is prepared to use its authority to fullest extent during the COVID-19 response to protect these servicemembers should their rights be violated.
Servicemembers and their dependents who believe their rights have been violated under any of the statutes enforced by the Civil Rights Division should contact the Department of Justice at www.servicemembers.gov or the nearest Armed Forces Assistance Program Office.
Eric S. Dreiband
Assistant Attorney General
Civil Rights Division
Guidance documents are not binding and lack the force and effect of law, unless expressly authorized by statute or expressly incorporated into a contract, grant, or cooperative agreement. Consistent with Executive Order 13891 and the Office of Management and Budget implementing memoranda, the Department will not cite, use, or rely on any guidance document that is not accessible through the Department’s guidance portal, or similar guidance portals for other Executive Branch departments and agencies, except to establish historical facts. To the extent any guidance document sets out voluntary standards (e.g., recommended practices), compliance with those standards is voluntary, and noncompliance will not result in enforcement action. Guidance documents may be rescinded or modified in the Department’s complete discretion, consistent with applicable laws.
Readout of the President’s Commission on Law Enforcement and the Administration of Justice 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 mental illness. 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. Next week, the Commission will continue its analysis of social problems impacting public safety, hearing testimony from experts on homelessness and substance abuse.
On Tuesday, March 24, the Commission received testimony from San Bernardino (Calif.) Sheriff John McMahon; John Snook, CEO of the Treatment Advocacy Center, and; Sergeant Sarah Shimko from the City of Madison (Wisc.) Police Department Mental Health Unit.
Testimony and discussions focused on the current interactions that arise between individuals suffering from untreated mental illnesses and law enforcement. Sheriff McMahon and Sergeant Shimko spoke of the importance of mandatory mental illness course training for all law enforcement officers, not just because of the scope of the mental health crisis across the country, but also because law enforcement will always play a role in responding to people with mental health issues, and, therefore, adequate training is essential. Speaking about the connections between mental health and law enforcement, CEO John Snook recommended, “This Commission must resist the urge to force greater responsibilities on law enforcement.”
On Wednesday, March 25, the Commission heard testimony from Orange County (Calif.) Sheriff Donald Barnes; Dr. Shannon Robinson, Principal, Health Management Associates (formerly the Chief Psychiatrist for the California Department of Corrections and Rehabilitation), and; Maricopa County (Ariz.) Sheriff Paul Penzone.
Testimony and discussions focused on the intersection of mental health and substance abuse disorders and law enforcement. Sheriff Barnes called for a national naloxone program in jails to keep victims of opioid overdoses alive. He also called attention to the ever-growing quantities of pure fentanyl being seized in his county and the impact that pure fentanyl has on the general public. Dr. Robinson’s testimony shed light on the multi-generational effects, as well as the resource requirement, that mental health and substance abuse issues have on society at large. And Sheriff Penzone called attention to the public’s instinct to call 911 based on the expectation that law enforcement officers will handle any problem, regardless of whether or not it is within the scope of law enforcement’s traditional role.
On Thursday, March 26, Dr. Keith Humphreys, Professor and Section Director for Mental Health Policy in the Department of Psychiatry and Behavioral Sciences at Stanford University, addressed the Commission.
Dr. Humphrey’s testimony focused on the intersection of alcohol and law enforcement, calling attention to the number of calls law enforcement receive daily that are linked to an incident involving alcohol abuse. He pointed to statistics that show that those who receive treatment for alcoholism are less likely to re-offend, and called for treatment to be part of probation or parole options.
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.
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 Requires Divestitures in Merger Between UTC and Raytheon to Address Vertical and Horizontal Antitrust ConcernsRead the Press Release
The Department of Justice announced today that it is requiring United Technologies Corporation (UTC) and Raytheon Company (Raytheon) to divest Raytheon’s military airborne radios business and UTC’s military global positioning systems (“GPS”) and large space-based optical systems businesses in order to proceed with their proposed merger. Without these divestitures, the merger would eliminate competition between two of the primary suppliers of military airborne radios and military GPS systems to the Department of Defense (DoD), and enable the merged firm to lessen competition for multiple components used in reconnaissance satellites sold to DoD and the wider U.S. intelligence community.
The department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the Antitrust Division filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
“Today’s settlement protects the American taxpayer by preserving competition that leads to lower costs and higher innovation in critical military and defense products,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The merger, as originally proposed, would have eliminated competition in the supply of military airborne radios and military GPS systems, and would have positioned the merged firm to harm rivals capable of making key components for reconnaissance satellites. These horizontal and vertical concerns are resolved by the Division’s structural remedy, which includes the divestiture of three separate business units.”
According to the department’s complaint, UTC and Raytheon are the only firms that develop, manufacture, and sell military airborne radios, which allow for secure voice, data, and video communications to and from aircraft, and are installed on every airplane and helicopter currently used by DoD. The department’s complaint also alleges that UTC and Raytheon are the only competitors for military GPS systems for aviation and maritime applications, and are two of the three competitors for military GPS systems for ground applications. Military GPS systems receive and process satellite signals, providing information regarding position, navigation, and timing. The complaint alleges that the merger would eliminate competition between UTC and Raytheon for all of these products, likely leading to higher prices, diminished innovation, lower quality, and less favorable contract terms.
The department’s complaint further alleges that UTC and Raytheon are among the few firms capable of producing several components for space-based electro-optical/infrared (EO/IR) reconnaissance satellites, which provide DoD and U.S. intelligence community customers with essential information, including early warning of missile launches. Specifically, UTC is one of only two companies able to build large space-based optical systems, and Raytheon is a leading supplier of detectors called focal plane arrays (FPAs). Raytheon is the only firm that produces FPAs that detect visible light, and one of two firms that produces FPAs that detect infrared light. Large space-based optical systems and FPAs are components of EO/IR reconnaissance satellite payloads – the system that carries out the mission of the satellite – which Raytheon also produces. According to the department’s complaint, the merged firm would have the ability and incentive to require EO/IR payload builders seeking to purchase Raytheon’s industry-leading FPAs to also purchase UTC’s large space-based optical systems, and could deny Raytheon’s EO/IR payload competitors access to UTC’s large space-based optical systems. As a result, the complaint alleges that the transaction likely would result in higher prices, less favorable contract terms, and diminished innovation for large space-based optical systems and EO/IR reconnaissance satellite payloads.
Under the terms of the proposed settlement, the parties must divest Raytheon’s military airborne radios business, including facilities in Fort Wayne, Indiana and Largo, Florida, and UTC’s military GPS business to BAE Systems, Inc. (BAE), or an alternate acquirer approved by the United States. BAE is the U.S. subsidiary of BAE Systems plc, an international defense, aerospace, and security company that provides a wide range of products and services for air, land, and naval forces. The proposed settlement further requires the parties to divest UTC’s optical systems business, including a facility in Danbury, Connecticut, to an acquirer to be approved by the United States.
The Antitrust Division and DoD worked closely throughout the course of the investigation. In addition, the Antitrust Division, the European Commission, and the Canadian Competition Bureau cooperated closely throughout the course of their respective investigations.
UTC, a Delaware corporation headquartered in Farmington, Connecticut, produces a wide range of products for the aerospace and defense industries. UTC had sales of approximately $77 billion in 2019.
Raytheon, a Delaware corporation headquartered in Waltham, Massachusetts, is one of the world’s largest defense manufacturers, with significant capabilities in radars and missiles. Raytheon had sales of approximately $29 billion in 2019.
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 Katrina Rouse, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
U.S. Attorney Urges the Public to Report Suspected COVID-19 FraudRead the Press Release
Hagatña, Guam – United States Attorney Shawn N. Anderson for the Districts of Guam and the Northern Mariana Islands today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected].
In coordination with the Department of Justice, Attorney General William P. Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes.
Some examples of these schemes include:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
- Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
- Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities. The Districts of Guam and the Northern Mariana Islands Coronavirus Fraud Coordinator is Mikel Schwab, Assistant U.S. Attorney.
The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes. The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.
To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
The Justice Department and the Federal Trade Commission Announce Expedited Antitrust Procedure and Guidance for Coronavirus Public Health EffortsRead the Press Release
The U.S. Department of Justice Antitrust Division and the Federal Trade Commission (FTC) today issued a joint statement detailing an expedited antitrust procedure and providing guidance for collaborations of businesses working to protect the health and safety of Americans during the COVID-19 pandemic.
The expedited procedure notes, for example, that health care facilities may need to work together in providing resources and services to assist patients, consumers, and communities affected by the pandemic and its aftermath. Other businesses may need to temporarily combine production, distribution, or service networks to facilitate production and distribution of COVID-19-related supplies.
Under the expedited procedure for COVID-19 public health projects, the agencies will respond to all COVID-19-related requests, and resolve those addressing public health and safety, within seven calendar days of receiving all information necessary to vet these proposals. The statement sets out the instructions for businesses wishing to take advantage of this procedure.
The expedited COVID-19 procedure offers quicker review than existing FTC and Justice Department programs that are designed to provide guidance to businesses concerned about the legality of proposed conduct under the antitrust laws. The FTC’s “Staff Advisory Opinion” procedure and DOJ’s “Business Review Letter” procedure allow any firm, individual, or group of firms or individuals to submit a proposal to the agencies and to receive a statement advising whether the agencies would challenge the proposed activity under the antitrust laws.
“The Antitrust Division recognizes the importance of providing expeditious clarity on any antitrust obligations in this challenging time,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “Our expedited Business Review Letter procedure will help facilitate businesses that want to work quickly to address the urgent public health and economic needs associated with COVID 19.”
“Under these extraordinary circumstances, we understand that businesses collaborating on public health initiatives may need an expedited response from U.S. antitrust authorities,” said FTC Chairman Joe Simons. “We are committed to doing everything we can to help with these efforts, while continuing to aggressively enforce the antitrust laws.”
The antitrust laws accommodate procompetitive collaborations among competitors. In their joint statement, the FTC and the Department of Justice listed several types of collaborative activities designed to improve the health and safety response to the pandemic that would likely be consistent with the antitrust laws.
At the same time, the agencies also stressed that they will not hesitate to hold accountable those who try to use the pandemic to engage in antitrust violations. In addition, the Department of Justice will criminally prosecute conduct such as price-fixing, bid-rigging, or market allocation.
The expedited procedure requires that an applicant provide the FTC or Justice Department a written description of the proposal, including the parties that would be involved in the effort or activity, and the name and contact information of a person from whom the agencies could obtain additional information. This expedited procedure is for use solely for coronavirus-related public health efforts and may be invoked at the option of the requestor, in lieu of the agencies’ standard procedures for handling requests for advice.
The agencies also committed to expedite requests under the National Cooperative Research and Production Act for flexible treatment of certain standard development organizations and joint ventures.
The statement also notes that the FTC and the Justice Department are addressing actions by individuals and businesses to take advantage of COVID-19 through other fraudulent and illegal schemes. Anyone with information or concerns about this sort of conduct, or other COVID-19-related complaints, should contact the FTC’s Consumer Response Center at 1-877-382-4357 or the National Center for Disaster Fraud Hotline (1-866-720-5721) or e-mail ([email protected]). More information on the FTC’s guidance on potential fraud, deceptive practices, and scams is available here, and to report a complaint go to www.ftc.gov/complaint.
The Department of Justice Files Statement of Interest in Title IX Women's Equal Opportunities CaseRead the Press Release
The Department of Justice today filed a Statement of Interest in federal court in Connecticut against the Connecticut Interscholastic Athletic Conference (CIAC) policy that requires biological males to compete against biological females — despite the real physiological differences between the sexes — if the male is a transgender individual who publicly identifies with the female gender.
“In our pluralistic society we generally try to accommodate how individuals desire to live their lives up to the point where those desires impinge on the other people’s rights,” said Attorney General William P. Barr. “Allowing biological males to compete in all-female sports deprives women of the opportunity to participate fully and fairly in sports and is fundamentally unfair to female athletes. Sports are an important part of education and character development and provide an arena where individual discipline can result in achievement and recognition. The purpose of all-female athletics is to ensure that women have an equal opportunity to participate, compete and excel in this important part of life. Title IX has been a major step forward in the long fight to achieve this equality. As reflected in Title IX, the basis for single-sex athletics, is rooted in the reality of biological differences between the sexes. Clearly then, eligibility to participate on a single-sex team must be based on objective biological fact. Girls should not be forced, through the dismantling of Title IX, to be sidelined in their own sports.”
Title IX and its implementing regulations prohibit discrimination solely “on the basis of sex,” not on the basis of transgender status, and therefore neither require nor authorize CIAC’s transgender policy. One of Title IX’s core purposes is to ensure that women have an “equal athletic opportunity” to participate in school athletic programs. Schools realize that purpose primarily by establishing separate athletic teams for men and women and by ensuring that those teams are on equal footing. Because of the physiological differences between men and women, the existence of women’s sports teams permits women to participate more fully in athletics than they otherwise could.
Under CIAC’s interpretation of Title IX, however, schools may not account for the real physiological differences between men and women. Instead, schools must have certain biological males — namely, those who publicly identify as female — compete against biological females. In doing so, CIAC deprives those women of single-sex athletic competitions and the opportunity to compete on equal athletic footing.
Justice Department Reaches Settlement with Richmond County Sheriff’s Office Resolving the Military Employment Discrimination Claim of an Active Duty Servicemember and Requiring Development of a USERRA PolicyRead the Press Release
The Justice Department announced today that it has reached a settlement with the Richmond County (GA) Sheriff’s Office (RCSO) that resolves allegations that the RCSO violated the employment rights of Private First Class (PFC) Auben Kendall under the Uniformed Services Employment and Reemployment Rights Act (USERRA).
“This country has long depended on the sacrifices made by its all-volunteer armed forces, and the Department of Justice is committed to ensuring that servicemembers who make the tremendous sacrifice to leave their civilian careers to serve this country can do so without suffering discrimination,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Placing military servicemembers in a leave status when they are away from their jobs because of their military service and providing them with the same benefits accorded to other employees on similar leaves is not just a good business practice, it is required by law.”
PFC Kendall began working for the RCSO as a jailer in 2016, and was promoted to a deputy sheriff position in 2017 after attending state mandated training. In approximately May 2018, PFC Kendall informed the RCSO that he had enlisted in the Army and would be departing in several months to perform military service. He expressed his desire to return to work at the RCSO after his service. After notifying the RCSO of his enlistment, the employer demanded reimbursement of the costs of Kendall’s salary that he earned while attending mandatory training. The RCSO later filed suit against Kendall in a Georgia State Court for breach of contract, seeking reimbursement for the $7,437.56 in salary that it claimed Kendall owed. Prior to settling Kendall’s USERRA claims, the RCSO dismissed its state court lawsuit.
Under the terms of the agreement, the RCSO has agreed to place PFC Kendall in military leave status retroactive to the date of his entry on active duty, to process any future request for reemployment from PFC Kendall consistent with USERRA’s requirements, and to not seek to recover any training-related funds from PFC Kendall. The RCSO also agreed that it will not seek reimbursement for any training-related expenditures from any servicemember who leaves employment with the RCSO for military service. As part of the settlement agreement, the RCSO will devise and implement a USERRA policy, distribute its USERRA policy to all of its employees, and train its supervisory and human resources staff members on its USERRA policy.
USERRA safeguards the rights of uniformed servicemembers, including those who enlisted in uniformed service after beginning their employment, to be free from discrimination based on their service obligation. USERRA also requires that employers treat employees who are absent from their employment by reason of military service as though they are on leave and provide them with the same rights and benefits as employees who are on comparable leaves.
The Justice Department gives high priority to the enforcement of servicemembers rights under USERRA. Attorneys assigned to the Employment Litigation Section of the Civil Rights Division represented the United States in this matter. Additional information about USERRA can be found at the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and https://www.justice.gov/servicemembers, as well as on the Department of Labor’s website at https://www.dol.gov/agencies/vets/programs/userra.
Federal Court Permanently Shuts Down Texas Tax Return PreparersRead the Press Release
A federal court permanently enjoined Smart Ajayi, d/b/a Harplett Marketing LLC., Topps Tax Services and Smart Tax Services, and JoAnn Villarreal, both of Grand Prairie, Texas, from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. Ajayi and Villarreal consented to the relief.
The complaint against Ajayi and Villarreal, which was filed in the U.S. District Court for the Northern District of Texas, alleges that Ajayi and Villarreal repeatedly understated their customers’ tax liabilities by fabricating noncash charitable deductions and creating false Schedules C with inflated or fraudulent business losses, to generate tax refunds. For example, the government alleges that Ajayi prepared a return on which he falsely reported that a customer with adjusted gross income of $34,027 made $19,759 in noncash charitable contributions. The complaint alleges that, over the course of years 2016 through 2018, Ajayi and Villarreal each filed hundreds of returns, and that by repeatedly understating their customers’ tax liabilities, Ajayi and Villarreal have caused the United States to lose substantial tax revenue.
“Particularly during this time of year, when honest taxpayers are filing their returns, we want the public to know that the Justice Department will pursue those who would abuse our nation’s tax laws,” said Principal Deputy Assistant Attorney General for the Tax Division Richard Zuckerman.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Department of Justice Announces Nomination Period for Fourth Annual Attorney General’s Award for Distinguished Service in PolicingRead the Press Release
Attorney General William P. Barr today announced the fourth annual Attorney General’s Award for Distinguished Service in Policing, launching the nomination period for this award. Awardees selected from nominations received during this period will be announced at a ceremony to be held later this year.
The Attorney General’s Award recognizes individual state, local or tribal sworn, rank-and-file police officers and deputies for exceptional efforts in community policing. The awarded officer(s), deputy(ies) or trooper(s) will have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in policing.
“Law enforcement is the toughest job in America. The challenges our officers face on a daily basis are more complex, more difficult, and more extensive than ever before,” said Attorney General William P. Barr. “We are grateful for every man and woman in blue for their dedication and sacrifice. Among those who have answered the call of public service, several individuals in the past year performed in ways that surpassed even the highest expectations of the profession. I look forward to recognizing these individuals with the fourth annual Attorney General’s Award for Distinguished Service in Policing.”
President Trump has established clear directives for the department – with three executive orders – demonstrating his strong support of the law enforcement community. These executive orders commit the department to working in tandem with state and local law enforcement to restore the rule of law, reduce violent crime, dismantle criminal gangs and combat the growing drug epidemic. Our support to the dedicated men and women of law enforcement is strong and today’s announcement is in furtherance of the president’s directives. The Department of Justice is committed to supporting the law enforcement community that keeps this great nation safe and makes it even safer. Today we honor our law enforcement officers by announcing the Attorney General’s Award for Distinguished Service in Policing.
Within each category, an award will be given to law enforcement agencies serving small, medium, and large jurisdictions:
- Small: Agencies serving populations of fewer than 50,000
- Medium: Agencies serving populations of 50,000 to 250,000
- Large: Agencies serving populations of more than 250,000
By distinguishing and rewarding these efforts, the department strives to promote and sustain its national commitment to policing and to advance proactive policing practices that are fair and effective.
With the Attorney General’s Award for Distinguished Service in Policing, the Office of the Attorney General recognizes that the nation’s more than 18,000 law enforcement agencies, individual officers, deputies, and troopers are working hard to keep our communities safe.
For more information about the Attorney General’s Award and to submit an application for nominees, please visit https://www.justice.gov/ag/policing-award.
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.
INTERPOL Washington Continues Support to U.S. Law EnforcementRead the Press Release
In the face of the COVID-19 (Coronavirus) pandemic, INTERPOL Washington—the U.S. National Central Bureau—continues around-the-clock operations. While we have taken a variety of social distancing measures and curtailed domestic and international travel for our employees, the full suite of INTERPOL’s information sharing systems and resources remain available.
INTERPOL Washington services are available to law enforcement only. Detailed information on requesting our assistance is available here. Private citizens or non-law enforcement entities should contact their local law enforcement agency or other appropriate state, local or federal authority for assistance.
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.
Attorney General William P. Barr Urges American Public to Report COVID-19 FraudRead the Press Release
Attorney General William P. Barr is urging the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
This week, Attorney General Barr directed all U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus-related fraud schemes. In a follow-up memorandum issued March 19, Deputy Attorney General Jeffrey Rosen further directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness.
Some examples of these schemes include:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
- Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
- Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes. The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.
To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
Justice Department Settles Claim Against Maryland Construction Firm for Discriminating Against U.S. WorkersRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement resolving the Department’s claims that a Baltimore County, Maryland construction firm, Hallaton Inc., which installs geosynthetic liners, violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by preferring H-2B visa workers over qualified U.S. workers. This is the eighth settlement under the Civil Rights Division’s Protecting U.S. Workers Initiative, which is aimed at targeting, investigating, and taking enforcement actions against companies that discriminate against U.S. workers in favor of temporary visa workers. Since the Initiative’s inception, employers have agreed to pay or have distributed a combined total of more than $1.2 million in back pay to affected U.S. workers and civil penalties to the United States.
“Employers who abuse temporary visa programs deny U.S. workers job opportunities. This settlement provides up to $80,000 in backpay to compensate those U.S. workers who were unlawfully discriminated against in favor of visa workers,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This is the eighth settlement in this Administration’s effort to combat discrimination against U.S. workers for job opportunities and we will continue to hold violators accountable.”
The Department’s investigation determined that from at least Dec. 1, 2017, until at least June 1, 2018, Hallaton routinely discriminated against U.S. workers by failing to consider them for construction laborer positions. Despite receiving over two dozen applications from available and qualified U.S. workers through the Maryland Workforce Exchange, Hallaton hired none of them. The company then sought and received permission to hire 63 H-2B visa workers for these jobs by claiming that it could not find qualified and available U.S. workers. Refusing to recruit or hire U.S. workers because of their citizenship status violates the INA.
Under the settlement, Hallaton will pay $43,143 in civil penalties to the United States, pay up to $80,000 in back pay to affected U.S. workers, and conduct enhanced U.S. worker recruitment and advertising for future positions. The settlement also requires Hallaton to train employees on the requirements of the INA’s anti-discrimination provision and be subject to departmental monitoring and reporting requirements.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
More information on how employers can avoid citizenship status discrimination is available here. More information about protections against unlawful citizenship status discrimination is available here. For more information about protections against employment discrimination under immigration laws, 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; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Federal Court Orders Texas Home Health Care Services Company to Pay Employment TaxesRead the Press Release
On March 18, a federal court ordered El Mundo Feliz, a Partnership (El Mundo), and Daniel Martinez Jr. to begin paying employment taxes to the United States on a timely basis, the Justice Department announced today.
The judgment and permanent injunction by consent, entered by Judge Fernando Rodriguez Jr. of the U.S. District Court for the Southern District of Texas, requires El Mundo and Martinez to deposit and pay all employment taxes and make all related tax return filings, and requires Martinez to provide an affidavit to the government on a monthly basis stating that they have done so. The injunction is effective immediately. The order specifies that violation of the injunction may result in civil and criminal sanctions.
According to the government’s complaint, El Mundo, operated by Martinez, provides home adult day care services, with an office located in Brownsville, Texas. The complaint alleges that, for 24 quarters spanning 2012 to 2019, Martinez and the company failed to make required employment tax deposits to the United States, a practice known as “pyramiding.” The complaint further alleges that the defendants’ misconduct has resulted in a balance due to the government of more than $600,000. The court entered judgment in favor of the United States for that amount, as well as for nearly $40,000 in delinquent unemployment taxes, penalties and interest.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Justice Department Announces Antitrust Civil Process Changes for Pendency of COVID-19 EventRead the Press Release
The Department of Justice Antitrust Division announced today that it has adopted a series of temporary changes to its civil merger investigation processes, which will remain in place during the pendency of the coronavirus (COVID-19) event. These changes will ensure that the Antitrust Division will be able to continue operations as its employees carry out their duties to protect American consumers under a mass telework directive, in accordance with health guidance from the CDC, WHO, and other health authorities.
“As the Antitrust Division takes steps to protect the health and safety of its work force and the parties that appear before it, these process changes will ensure that the Division can continue to review transactions efficiently and effectively,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Division remains open for business, and we will continue to carry out our mission to protect competition and the American consumer. We are in this together and intend to work cooperatively with the business community on pending mergers, consistent with our responsibilities under the antitrust laws and to protect the health and safety our employees and the public.”
The civil process changes include the following:
- For mergers currently pending or that may be proposed, the Antitrust Division is requesting from merging parties an additional 30 days to timing agreements to complete its review of transactions after the parties have complied with document requests. If circumstances require, the Division may revisit its timing agreements with merging parties in light of further developments.
- The Antitrust Division will allow electronic filing of Hart-Scott-Rodino submissions.
- The Antitrust Division will conduct all meetings by phone or video conference (where possible), absent extenuating circumstances.
- All scheduled depositions temporarily will be postponed and will be rescheduled using secure videoconferencing capabilities.
For questions regarding these process changes, please contact Amy Fitzpatrick at 202-476-0529, or [email protected].
Federal Court Finds Tampa Tax Preparer in Contempt for Violating the Court’s Preliminary and Permanent InjunctionsRead the Press Release
On March 17, 2020, a federal court in Tampa, Florida, found that Jasen Harvey and Harveys Tax Service violated preliminary and permanent injunctions that barred them from preparing, filing, or assisting in the preparation or filing of federal tax returns for others.
For that violation, the court held Jasen Harvey and Harveys Tax Service in contempt and ordered them to pay $19,550 to the United States, representing the fees Jasen Harvey and Harvey’s Tax Service received for 92 tax returns they prepared or filed in violation of the court’s injunctions. In addition, the court ordered those defendants to reimburse the government for $631.04 in travel costs the United States incurred to attend the contempt hearing held on March 13, 2020.
The United States filed a complaint against Catharine Harvey, Jasen Harvey, and Harveys Tax Service on Jan. 9, 2020. According to the complaint, the defendants prepared returns for customers seeking millions of dollars in refunds of tax purportedly withheld on fictitious income reported on fabricated Forms 1099-MISC and on bank deposits reported on fabricated Forms 1099-A. On Feb. 18, 2020, the court issued a preliminary injunction that barred the defendants from preparing returns for customers, finding that the United States offered sufficient evidence to show that defendants had a history of filing fraudulent refund claims, and were likely to continue to file fraudulent returns absent a court order to stop. The court issued a permanent ban on Feb. 24, 2020, finding the defendants “unfit” to prepare tax returns.
The court found that the United States demonstrated by clear and convincing evidence that the defendants willfully violated these court orders, which unambiguously barred the defendants from preparing returns for others. In addition to the monetary sanctions, the court ordered that it will sentence Mr. Harvey for his willful contempt at a hearing on July 9, 2020.
“This contempt action is further evidence that the IRS and the Tax Division will use all available tools to hold dishonest return preparers accountable and protect the U.S. Treasury from damage,” said Principal Deputy Assistant Attorney General Richard Zuckerman.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
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.
Serial Non-Filer Pleads Guilty to Tax EvasionRead the Press Release
A man who did not file tax returns for several years in a row pleaded guilty Friday, March 13, 2020, to evading his income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and statements made in court, from 2009 through 2016, Daryl Brown received taxable income, but did not file tax returns reporting his income or pay the taxes he owed. To evade his taxes, Brown opened bank accounts and lines of credit in nominee names and used credit and debit cards from those accounts to pay for personal expenses. He also bought money orders with cash, directed others to buy money orders for him, and structured his purchase of money orders–sometimes from several locations on the same day–to avoid triggering reporting requirements that would have flagged his activity to the Internal Revenue Service (IRS). Brown’s conduct caused a tax loss of more than $250,000 to the IRS.
U.S. District Judge Timothy Black scheduled sentencing for Aug. 5, 2020. At sentencing, Brown faces a maximum sentence of five years in prison. He also faces a period of supervised release and monetary penalties. As part of his plea agreement, Brown will pay restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sarah Ranney and William Guappone of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Federal Court Permanently Bars Former Liberty Tax Service Owners from Tax Preparation BusinessRead the Press Release
A federal court in Tampa, Florida has permanently barred Steven Doletzky, formerly doing business as Liberty Tax Service, from operating a tax return preparation business and preparing federal tax returns for others, the Justice Department announced today.
The court also ordered Doletzky to disgorge $175,000 of ill-gotten gains that the United States alleges he received from filing federal tax returns that claimed improper tax refunds, understated customers’ federal tax liabilities, or otherwise included false or fraudulent claims.
Doletzky was sued along with two co-defendants, Michael Garno and Michael Bass. According to the complaint, employees at stores owned by Doletzky, Garno, and Bass prepared federal income tax returns that claimed fraudulent claims for tax credits, including for education credits and the Earned Income Tax Credit (“EITC”). For example, the complaint alleges that from 2013 to 2015, Liberty Tax Service stores owned by Doletzky or his co-defendants prepared and filed federal income tax returns that claimed over 500 false claims for education credits. The court previously entered orders of permanent injunction and disgorgement against Garno and Bass. Doletzky, Garno, and Bass agreed to entry of the permanent injunctions and disgorgement judgments without admitting to factual allegations in the complaint.
“Fraudulent tax return preparers too often seek to take advantage of their customers and the U.S. Treasury, which undermines our tax system,” said Principal Deputy Assistant Attorney General for the Tax Division Richard Zuckerman. “The Justice Department will pursue those who would abuse our nation’s tax laws.”
Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on their website about things taxpayers should remember when searching for a tax preparer and has a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
U.S. Pipeline Company to Modify Its National Operations to Implement Safeguards Resulting from Oil SpillRead the Press Release
Federal officials announced a civil settlement with Plains All American Pipeline L.P. and Plains Pipeline L.P. (Plains) arising out of Plains’ violations of the federal pipeline safety laws and liability for the May 19, 2015, discharge of approximately 2,934 barrels of crude oil from Plains’ Line 901 immediately north of Refugio State Beach, located near Santa Barbara, California.
The discharge was caused by Plains’ failure to address external corrosion and have adequate control-room procedures in place, and was further exacerbated by Plains’ failure to respond properly to the release. The crude oil discharge resulted in the oiling of Refugio State Beach, the Pacific Ocean, and other shorelines and beaches, resulted in beach and fishing closures and adversely impacted natural resources such as birds, fish, marine mammals and shoreline and subtidal habitat. The United States worked closely with co-plaintiff the state of California, and both the United States and California are signatories to the complaint and the consent decree.
The complaint seeks injunctive relief, penalties, natural resource damages and assessment costs, and response costs for the United States, on behalf of the U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration; the U.S. Environmental Protection Agency; the U.S. Department of the Interior; the Department of Commerce, National Oceanic and Atmospheric Administration and the U.S. Coast Guard. The United States’ claims are under the federal pipeline safety laws, the Clean Water Act, and the Oil Pollution Act of 1990.
The settlement requires Plains to implement injunctive relief to improve Plains’ nationwide pipeline system and bring it into compliance with the federal pipeline safety laws, in addition to addressing unique threats and modifying operations that caused the Line 901 oil spill; pay $24 million in penalties; pay $22.325 million in natural resource damages, and $10 million for reimbursed natural resource damage assessment costs; and pay $4.26 million for reimbursed Coast Guard clean-up costs. Excluding the value of the required injunctive relief changes to Plains’ national operations, the settlement in conjunction with reimbursed costs is valued in excess of $60 million.
“Today’s settlement shows federal and local governments working in partnership to hold industry fairly accountable,” said Deputy Assistant Attorney General Bruce Gelber for the Justice Department’s Environment and Natural Resources Division. “The agreement will also promote public health and safety, and protect the environment for local communities.”
“This case is a classic example of why the Clean Water Act authorizes penalties for harmful oil discharges,” said EPA Assistant Administrator for the Office of Enforcement and Compliance Assurance Susan Bodine. “With this settlement, EPA, along with its federal and state partners, is holding Plains accountable for the damage they caused to natural resources.”
“We are pleased to join this agreement with industry and our co-trustees to help restore vital habitats, wildlife and recreational areas injured by this oil spill,” said Nicole LeBoeuf, acting director of NOAA's National Ocean Service. “Local communities and economies depend on these ecosystems, and we look forward to working with the public on projects to restore them to health.”
The section of the California coast affected by the Plains 901 Line oil spill Refugio has one of the most diverse and abundant assemblages of marine organisms in the world. A rich array of marine and coastal habitats including the open ocean, rocky shores, sandy beaches and kelp forests, support a diverse array and large numbers of marine fish, marine mammals and seabirds.
The settlement is subject to a 30-day public comment period that begins with the posting of a notice in the Federal Register. The consent decree will be available for viewing at www.justice.gov/enrd/Consent_Decrees.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.
Justice Department Files Lawsuit Against Philadelphia Condo Association for Discrimination Against Persons with DisabilitiesRead the Press Release
The Justice Department announced today that it has filed a lawsuit alleging that a Philadelphia condo association has violated the Fair Housing Act by discriminating against persons with disabilities who need assistance animals, including emotional support and service animals.
The lawsuit arose from a complaint filed by a condo owner with the U.S. Department of Housing and Urban Development (HUD). The suit, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges that the Dorchester Owners Association (DOA) discriminated against persons with disabilities needing service animals and emotional support animals at The Dorchester on Rittenhouse Square by denying their requests for reasonable accommodations to its “no pets” policy. The complaint further alleges that the DOA, located at 226 West Rittenhouse Square, Philadelphia, PA, 19103, has engaged in a pattern or practice of discrimination since 2009 by maintaining policies that, among other things, exclude all assistance animals—including service animals—from the Dorchester’s common areas, impose a blanket ban on visitors’ assistance animals that have not been first qualified by the DOA from coming onto the Dorchester property, and require that residents granted reasonable accommodations for assistance animals obtain a $1 million insurance policy naming the DOA as an additional insured.
“People with disabilities who need assistance animals to live their lives should not have to surmount unreasonable hurdles to keep those animals in their homes,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Discriminating against people with disabilities is unacceptable and illegal, and the Justice Department will continue vigorously to enforce the Fair Housing Act to combat this type of discrimination and to obtain relief for its victims.”
Today’s lawsuit seeks monetary damages to compensate victims, civil penalties, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct, which must be proven in federal court.
Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777, or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp.
Statement from Attorney General William P. Barr on House Legislation to Reauthorize the USA Freedom ActRead the Press Release
Attorney General William P. Barr issued the following statement:
"I have reviewed the House FISA bill and support its passage. The bill contains an array of new requirements and compliance provisions that will protect against abuse and misuse in the future while ensuring that this critical tool is available when appropriate to protect the safety of the American people.
I am pleased that the bill contains a number of provisions Director Wray and I put forward to address past failures, including compliance failures that the Inspector General has identified for us in his recent audit work. The IG’s analysis and recommendations have helped shape our proposals. The Director and I will promulgate additional, implementing rules that advance these reforms.
It is of the utmost important that the Department’s attorneys and investigators always work in a manner consistent with the highest professional standards, and this overall package will help ensure the integrity of the FISA process and protect against future abuses going forward. This legislation deserves broad bi-partisan support."
Statement from Assistant Attorney General Stephen E. Boyd Commending the House’s Passage of the Freedom Act Reauthorization BillRead the Press Release
Assistant Attorney General for Legislative Affairs Stephen E. Boyd issued the following statement:
“The Department is pleased that the House approved the Freedom Act reauthorization bill today with a strong bipartisan vote. The legislation extends three important national security tools and includes strong reforms to FISA that the Department believes will protect Americans. We are pleased that the House adopted a number of provisions that the Attorney General proposed to establish new compliance requirements within the Department and FBI, including safeguards targeted to address issues raised by the Inspector General. We urge the Senate to move forward to approve the House bill prior to the March 15 deadline.”
Statement from Assistant Attorney General Commending House Judiciary Committee’s Work to Clarify Criminalization of Female Genital MutilationRead the Press Release
Assistant Attorney General Stephen E. Boyd issued the following statement:
“Female genital mutilation (FGM) is a form of gender-based violence and child abuse that harms victims not only when they are girls, suffering the immediate trauma of the act, but also throughout their lives as women, when it often results in a range of physical and psychological harms. The Centers for Disease Control and Prevention (CDC) estimates that half a million women and girls in the United States have already suffered FGM or are at risk for being subjected to FGM in the future.
“The Department of Justice condemns this practice and urges Congress to act on legislation that will clarify the Department’s ability to prosecute such offenses.
“In April 2019, the Solicitor General of the United States sent a letter to Congressional leadership urging Congress to amend Section 116(a) of Title 18 of the United States Code to clarify the constitutional basis for criminalization of FGM to ensure that such violations can be prosecuted in federal courts. We commend the House Judiciary Committee for its work on legislation which will ensure that federal FGM prosecutions may be brought.”
Federal Court Permanently Shuts Down Ohio Tax Return PreparerRead the Press Release
A federal court permanently enjoined Mary E. Shade, d/b/a MS Tax, of Piqua, Ohio, from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. Mary E. Shade consented to the relief.
The complaint against Shade, which was filed in the U.S. District Court for the Southern District of Ohio, alleges that Shade routinely understates her customers’ tax liabilities by fabricating itemized deductions, creating false Schedules C with inflated or fraudulent business losses, and reporting false credits in order to offset their income to generate tax refunds. For example, the government alleges that Shade prepared a return on which she falsely reported that a customer made gifts to charity in the amount of $14,964. The complaint alleges that, over the course of the years 2012 through 2019, Shade filed over 5,500 tax returns, and that by repeatedly understating her customers’ tax liabilities, Shade has caused the United States to lose substantial tax revenue.
“Fraudulent tax return preparers abuse our nation’s tax laws and take advantage of those customers who pay them to file a correct tax return,” said Richard Zuckerman, Principal Deputy Assistant Attorney General for the Tax Division. “We are committed to working with our IRS partners to root out these perpetrators.”
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
DEA-Led Operation Nets More Than 600 Arrests Targeting Cártel Jalisco Nueva GeneraciónRead the Press Release
The Justice Department and the Drug Enforcement Administration (DEA) today announced the results of Project Python, a DEA-led interagency operation encompassing all global investigations and related disruption activities targeting the Cártel de Jalisco Nueva Generación (CJNG).
This announcement marks the successful conclusion of six months of investigative and enforcement activity targeting CJNG, culminating in large scale arrests throughout the country within the past week. Project Python has resulted more than 600 arrests, 350 indictments, as well as significant seizures of money and drugs.
“Project Python marks the most comprehensive action to date in the Department of Justice’s campaign to disrupt, dismantle, and ultimately destroy CJNG,” said Assistant Attorney General Brian A. Benczkowski of the Criminal Division. “When President Trump signed an Executive Order prioritizing the dismantlement of transnational criminal organizations, the Department of Justice answered the call and took direct aim at CJNG. We deemed CJNG one of the highest-priority transnational organized crime threats we face. And with Project Python, we are delivering results in the face of that threat for the American people.”
“Project Python is the single largest strike by U.S. authorities against CJNG, and this is just the beginning,” said DEA Acting Administrator Uttam Dhillon. “This strategic and coordinated project exemplifies DEA’s mission: to disrupt, dismantle, and destroy drug trafficking organizations around the world and bring their leaders to justice. Today, DEA has disrupted CJNG’s operations, and there is more to come as DEA continues its relentless attack on this remorseless criminal organization.”
The Justice Department and its law enforcement partners are committed to fulfilling the President’s Executive Order 13773 to identify, interdict, disrupt and dismantle transnational criminal organizations. The department designated CNJG as one of the top transnational criminal groups targeted as part of carrying out this executive order, and DEA instituted Project Python to support this ongoing effort.
CJNG is one of the fastest growing transnational criminal organizations in Mexico, and among the most prolific methamphetamine producers in the world. It is responsible for a significant proportion of drugs entering the United States, and elevated levels of violence in Mexico. With methamphetamine abuse and overdose deaths on the rise, Project Python aims to disrupt CJNG’s ability to distribute methamphetamine and other drugs throughout the United States by attacking the group at all levels.
Federal law enforcement has taken a number of steps to degrade CJNG’s ability to operate in the United States. Today, the Justice Department and DEA announced a superseding indictment on charges of alleged continuing criminal enterprise against Nemesio Ruben Oseguera Cervantes, also known as “El Mencho,” the undisputed leader of CJNG. Last month, El Mencho’s son, Ruben Oseguera Gonzalez, also known as “Menchito,” and second in command of CJNG, was extradited from Mexico to the United States on charges of alleged drug trafficking and firearm use in relation to drug trafficking activities. On Feb. 26, 2020, El Mencho’s daughter, Jessica Johanna Oseguera Gonzalez, was arrested in the United States on financial charges related to her alleged criminal violation of the Foreign Narcotics Kingpin Designation Act.
Additionally, DEA has worked with its interagency partners to apply further pressure to CJNG. The U.S. Department of Treasury has designated El Mencho as a “specially designated narcotics trafficker” pursuant to the Foreign Narcotics Kingpin Designation Act, and the U.S. Department of State has issued one of the largest narcotics rewards ever – $10 million – for information leading to the arrest of El Mencho.
The efforts highlighted in the more than 600 arrests nationwide are illustrative of the significant reach the CJNG has in manufacturing, importing and distributing a wide array of illegal narcotics within the United States and the negative impact on the fabric of our local communities. The proceeds from the local distribution of these narcotics are repatriated back to Mexico and further fuel transnational organized criminal organizations such as the CJNG. The Department of Justice and its law enforcement partners will continue to vigorously fight this scourge against the United States.
The Department of Justice’s multi-agency Special Operations Division, federal prosecutors from the Narcotic and Dangerous Drug Section of the Department’s Criminal Division, the Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided invaluable support to this operation.
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.
The National Comprehensive Opioid, Stimulant, and Substance Abuse Program Forum Presents Ways to Combat Addiction CrisisRead the Press Release
The 2020 National Comprehensive Opioid, Stimulant, and Substance Abuse Program (COSSAP) Forum takes place today through Thursday at the Hyatt Regency Crystal City in Arlington, Virginia.
About 1,100 participants, ranging from criminal justice and behavioral health professionals to law enforcement officers, are attending to learn and to share promising and evidence-based strategies, case studies and projects that are turning the tide of America’s addiction epidemic.
“This crisis has claimed too many lives, torn apart too many families and stolen too many futures,” said Principal Deputy Assistant Attorney General Katharine T. Sullivan, Office of Justice Programs. “But thanks to dedicated professionals across the country, we are beginning to see progress in this fight. Overdose deaths are down for the first time in 28 years, which is truly a cause for optimism. The work we are all doing together is making a difference.”
“While the drop in deaths due to overdose is very encouraging, our nation still has a way to go in battling addiction,” said Acting BJA Director Michael Costigan. “I believe the COSSAP Forum will help through the sharing of evidence-based best practices.”
COSSAP, formerly known as the Comprehensive Opioid Abuse Program, is funded by the Department of Justice’s Bureau of Justice Assistance (BJA). Its purpose is to provide financial support to states, units of local government and tribal governments to develop and implement comprehensive efforts to support those impacted by the addiction epidemic. As the overall number of overdose fatalities declined last year, the Trump Administration and Congress are working together to address a surge in deaths related to drugs such as cocaine, methamphetamines and synthetic opioids like fentanyl.
In the last two fiscal years, BJA has awarded approximately $330 million through over 300 grants across almost all states and territories, and many tribes. This program is designed to allow each community to address its unique needs and respond to local or regional emerging threats. These historic investments are enabling law enforcement officers and treatment providers to jointly respond to overdose incidents. They are also helping to expand diversion programs, develop treatment and recovery strategies, and introduce technology-assisted treatment options.
To learn more, visit www.COAPResources.org.
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 year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Owner of Detroit-Area Health Care Clinic Sentenced to Prison for a Drug Diversion SchemeRead the Press Release
The owner of a Detroit-area physical therapy clinic was sentenced to 11 years in prison today for his role in a drug diversion scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Timothy J. Plancon of the U.S. Drug Enforcement Administration (DEA)’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Malik Fuqua, 49, of Southfield, Michigan, was sentenced by U.S. District Judge David Lawson of the Eastern District of Michigan, who also ordered Fuqua to forfeit $716,824.23. In November 2019, Fuqua pleaded guilty to one count of conspiracy to distribute controlled substances.
As part of his guilty plea, Fuqua admitted that, as the owner and operator of a physical therapy clinic, he conspired with Shirley Douglas, 70, of West Bloomfield, Michigan, and other co-conspirators to distribute medically unnecessary controlled substances, including oxycodone, oxymorphone, alprazolam, hydrocodone and promethazine hydrochloride, through the selling of appointments with physicians at their clinics.
The total drug amount attributable to Fuqua is in excess of 500,000 controlled substance pills.
This case was investigated by the DEA and HHS-OIG. Trial Attorneys Malisa Dubal and Patrick Suter of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Commercial Flooring Executives Plead Guilty to Rigging Bids in Violation of Federal Antitrust LawsRead the Press Release
Two commercial flooring executives, Robert A. Patrey Jr. and Kenneth R. Smith, pleaded guilty for their role in an antitrust conspiracy to rig bids and fix prices for commercial flooring services and products sold in the United States, the Department of Justice announced. The defendants are cooperating with the Justice Department’s ongoing investigation.
According to plea agreements filed in U.S. District Court in Chicago, Illinois, from at least as early as 2009 until at least June 22, 2017, the defendants engaged in a conspiracy to suppress and eliminate competition in the commercial flooring market by agreeing with other individuals and companies to submit “comp,” or complementary, bids so that the designated company would win the bidding. Smith’s plea today is the fifth plea in the investigation. Patrey entered a guilty plea on Feb. 27, 2020.
“The recent guilty pleas are the latest in the government’s investigation, and they won’t be the last,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This scheme among commercial flooring contractors in the Chicago area victimized American taxpayers by targeting public institutions, including vulnerable public schools operating in a resource-constrained environment. The Antitrust Division and its law enforcement partners are committed to protecting taxpayer dollars and bringing to justice executives involved in these harmful bid-rigging cartels.”
“These defendants illegally manipulated the bidding process, victimizing American taxpayers and vulnerable institutions in the process,” said Special Agent in Charge Emmerson Buie, Jr. of the Federal Bureau of Investigation’s Chicago Field Office. “The FBI and its partners will continue to protect our communities by holding companies and their executives responsible for bid-rigging schemes.”
Individual violations of the Sherman Act carry maximum penalties of 10 years in prison and a $1 million criminal fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The guilty pleas are the result of an ongoing federal antitrust investigation into bid rigging, price fixing, and other anticompetitive conduct in the commercial flooring industry, conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Office. Last week, in a case arising out of this investigation, Carter Brett, an account executive for a large flooring manufacturer, pleaded guilty to two counts related to a bid-rotation conspiracy and a money-laundering conspiracy.
Anyone with information on bid rigging, price fixing, or other anticompetitive conduct related to the commercial flooring industry should contact the Antitrust Division’s Chicago Office at 312-984-7200, contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Leader of Armed Home Invasion Robbery Crew Convicted of RICO Conspiracy and Other Violent CrimesRead the Press Release
A federal jury in Detroit, Michigan, found a Colombian man guilty of all charges in a nine-count indictment charging him with Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy and other violent crimes, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field Office.
Juan Olaya, 39, of Buenaventura, Colombia, was a leader of an armed robbery crew that traveled the United States committing armed home invasions. Evidence at trial established that the defendant and his crew exclusively targeted families of Indian and Asian descent for their crimes.
Following a two-week trial, Olaya was convicted of one count of RICO conspiracy, four counts of assault with a dangerous weapon in aid of racketeering and four counts of use of a firearm during and in relation to a crime of violence. Sentencing is scheduled for July 23, 2020, before U.S. District Court Judge Laurie J. Michelson of the Eastern District of Michigan, who presided over the trial.
According to evidence presented at trial, Olaya and his robbery crew committed a string of home invasions in Georgia, New York, Michigan and Texas in 2014. The organizer of the crew, Chaka Castro, ran the enterprise from 2011 through 2014. Castro generated lists of robbery targets in various states around the county, specifically families of Asian and Indian ancestry, and assigned crews to carry out the armed robberies of these families within their homes. Olaya was the road boss of one such crew, who recruited other members and assigned roles to those members. Olaya and crew members traveled to certain locations, conducted surveillance and executed the robberies.
The crew utilized a particular modus operandi in each of the robberies. Members disguised their appearance with clothing and bandanas so that victims would have difficulty identifying them. They openly carried and brandished firearms to gain control of the victims and then immediately corralled the victims, including children, into one location in the home. At least one crew member then restrained the victims using duct tape and threats of violence, as another ransacked the home in search of cash, jewelry and electronics to steal. The crew organized their trips to involve multiple home invasion robberies over a series of days.
The FBI’s Ann Arbor Office investigated the case with the assistance of federal agencies including U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, U.S. Secret Service and local law enforcement agencies in Michigan, including Washtenaw County Sherriff’s Office, Ann Arbor Police Department and Canton Police Department; local law enforcement agencies in Ohio, including Beachwood Police Department; local law enforcement agencies in Georgia, including the Cobb County District Attorney’s Office, Cobb County Police Department, Gwinnett County Police Department, Duluth Police Department and Milton Police Department; local law enforcement agencies in New York, including Nassau County Police Department; the Tennessee Highway Patrol and local law enforcement agencies in Texas including Allen Police Department, Coppell Police Department, Flower Mound Police Department, Carrollton Police Department, Lewisville Police Department and Southlake Police Department.
Trial Attorneys Conor Mulroe and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section prosecuted 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 Wins Historic Arbitration of a Merger DisputeRead the Press Release
The Department of Justice prevailed in a first-of-a-kind arbitration, which will resolve a civil antitrust lawsuit challenging Novelis’s proposed merger with Aleris Corporation. As a result, Novelis must divest Aleris’s entire aluminum auto body sheet operations in North America, which will fully preserve competition in this important industry. In addition, under the terms of the arbitration agreement between defendants and the Department, Novelis must reimburse the Department for its fees and costs incurred in connection with the arbitration.
“Today’s decision is a victory for automakers and American consumers and taxpayers and will preserve competition in the market for aluminum auto body sheet,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This first-of-its-kind arbitration proved to be an effective procedure for the streamlined adjudication of a dispositive issue in a merger challenge. As demonstrated in this case, arbitration has the potential to be a powerful dispute resolution tool in the right circumstances and I look forward to applying the learning from this case to future matters. I am very proud of the Division’s talented and dedicated team of lawyers, paralegals, and economists who pioneered this ground-breaking arbitration, representing the Division exceedingly well throughout these proceedings.”
On Sept. 4, 2019, the Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the Northern District of Ohio seeking to block Novelis Inc.’s proposed acquisition of Aleris Corporation. Prior to filing the complaint, the Justice Department’s Antitrust Division reached an agreement with defendants to refer the matter to binding arbitration if the parties were unable to resolve the United States’ competitive concerns with the defendants’ transaction within a certain period of time. Fact discovery proceeded under the supervision of the district court. Pursuant to the arbitration agreement, following the close of fact discovery, the matter was referred to binding arbitration to resolve the issue of product market definition. A ten-day arbitration hearing concluded last week, marking the first time the Antitrust Division has used its authority under the Administrative Dispute Resolution Act of 1996 (5 U.S.C. § 571 et seq.) to resolve a matter.
Today, the arbitrator ruled for the United States, holding that aluminum auto body sheet constitutes a relevant product market, as the United States had alleged. Because the Department prevailed, the United States will file a proposed final judgment with the U.S. District Court for the Northern District of Ohio that requires Novelis to divest Aleris’s entire aluminum ABS operations in North America to preserve competition in the relevant market. This arbitration procedure provided certainty and allowed the defendants to close their transaction subject to foreign regulatory review.
The Department thanks Kevin Arquit, a highly-respected and experienced antitrust lawyer and former Director of the Federal Trade Commission’s Bureau of Competition, for serving as the arbitrator in this matter. The Department also thanks defendants’ legal team from Latham & Watkins, LLP and Fried Frank, and in particular, Dan Wall and the litigating team from Latham & Watkins, for their highly-skilled advocacy and professionalism.
Novelis is a Canadian corporation headquartered in Atlanta, Georgia. It offers flat-rolled aluminum products in three segments: automotive, beverage can, and specialty products. In the fiscal year ending March 31, 2019, Novelis’s revenues were approximately $12.3 billion. Novelis is a wholly-owned subsidiary of Hindalco Industries Ltd., an Indian company headquartered in Mumbai, India.
Aleris is a Delaware corporation headquartered in Cleveland, Ohio. It offers flat-rolled aluminum products to the automotive, aerospace, and building and construction industries, among others. In 2018, Aleris’s revenues were approximately $3.4 billion.
Justice Department Cautions Business Community Against Violating Antitrust Laws in the Manufacturing, Distribution, and Sale of Public Health ProductsRead the Press Release
The Department of Justice today announced its intention to hold accountable anyone who violates the antitrust laws of the United States in connection with the manufacturing, distribution, or sale of public health products such as face masks, respirators, and diagnostics. The department’s announcement is part of a broader administration effort to ensure that federal, state, and local health authorities, the private healthcare sector, and the public at large are in the strongest possible position to respond to the outbreak of the respiratory disease named coronavirus disease 2019 (COVID-19).
“The Department of Justice stands ready to make sure that bad actors do not take advantage of emergency response efforts, healthcare providers, or the American people during this crucial time,” said Attorney General William P. Barr. “I am committed to ensuring that the department’s resources are available to combat any wrongdoing and protect the public.”
Individuals or companies that fix prices or rig bids for personal health protection equipment such as sterile gloves and face masks could face criminal prosecution. Competitors who agree to allocate among themselves consumers of public health products could also be prosecuted. The department’s recently announced Procurement Collusion Strike Force will also be on high alert for collusive practices in the sale of such products to federal, state, and local agencies.
Anyone with information on price fixing, bid-rigging, market allocation schemes, or other anticompetitive conduct should call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Justice Department Concludes Historic Arbitration of a Merger DisputeRead the Press Release
The Department of Justice this week concluded an arbitration that will resolve a civil antitrust lawsuit challenging Novelis Inc.’s proposed acquisition of Aleris Corporation.
The lawsuit seeks to preserve competition in the North American market for rolled aluminum sheet for automotive applications, commonly referred to as aluminum auto body sheet. This marks the first time the Antitrust Division has used its authority under the Administrative Dispute Resolution Act of 1996 (5 U.S.C. § 571 et seq.) to resolve a matter.
“This first-of-its-kind arbitration has allowed us to resolve the dispositive issue in this case efficiently, saving taxpayer and private resources, while providing critical time-certainty,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The Antitrust Division looks forward to the arbitrator’s opinion, and will study this matter both to assess the circumstances in which arbitration may be appropriate and to identify possibilities for further streamlining the process. We will continue to examine ways to enforce our competition laws in a manner that maximizes the Division’s scarce enforcement resources to protect American consumers.”
On Sept. 4, 2019, the Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the Northern District of Ohio seeking to block Novelis Inc.’s proposed acquisition of Aleris Corporation. Prior to filing the complaint, the Antitrust Division reached an agreement with defendants to refer the matter to binding arbitration if the parties were unable to resolve the United States’ competitive concerns with the defendants’ transaction within a certain period of time.
As described in Plaintiff United States’ Explanation of Plan to Refer this Matter to Arbitration, filed on the district court’s docket, fact discovery proceeded under the supervision of the district court. Following the close of fact discovery, the matter was referred to binding arbitration to resolve a single issue: whether aluminum auto body sheet constitutes a relevant product market under the antitrust laws.
The arbitration procedure allowed for a flexible and efficient proceeding presided over by an arbitrator with extensive expertise in antitrust law and economics. Former Federal Trade Commission Director of the Bureau of Competition and experienced antitrust lawyer, Kevin Arquit, was selected as the arbitrator. The hearing was held over ten days (including some partial days) in the Antitrust Division’s Anne K. Bingaman Auditorium and Lecture Hall in the Liberty Square Building in Washington, D.C. Eleven fact witnesses and three expert witnesses testified in the proceedings. The parties agreed to dispense with certain evidentiary requirements to allow for a more flexible and efficient hearing. The parties also dispensed with the need for post-trial briefing and agreed that the arbitrator will render a short decision of no more than five pages by March 13.
If the United States prevails, the United States will then file a proposed final judgment that requires Novelis to divest certain agreed-upon assets to preserve competition in the relevant market. If the defendants prevail, the United States will seek to voluntarily dismiss the complaint. Novelis has held separate the agreed-upon divestiture assets pursuant to a hold separate stipulation and order entered by the district court, and defendants are permitted to close the transaction pursuant to this order.
Novelis is a Canadian corporation headquartered in Atlanta, Georgia. It offers flat-rolled aluminum products in three segments: automotive, beverage can, and specialty products. In the fiscal year ending March 31, 2019, Novelis’s revenues were approximately $12.3 billion. Novelis is a wholly-owned subsidiary of Hindalco Industries Ltd., an Indian company headquartered in Mumbai, India.
Aleris is a Delaware corporation headquartered in Cleveland, Ohio. It offers flat-rolled aluminum products to the automotive, aerospace, and building and construction industries, among others. In 2018, Aleris’s revenues were approximately $3.4 billion.
Department of Justice to Publish Final Rule to Comply Fully with DNA Fingerprint Act of 2005Read the Press Release
The Department of Justice today issued a final rule to implement the Attorney General’s authority provided by the bipartisan DNA Fingerprint Act of 2005 to authorize the Department of Homeland Security (DHS) to collect DNA samples from certain non-United States persons it detains. Once implemented, this rule will facilitate federal, state, and local investigative and crime reduction efforts.
“Today’s rule assists federal agencies in implementing longstanding aspects of our immigration laws as passed by bipartisan majorities of Congress,” said Deputy Attorney General Jeffrey A. Rosen. “Its implementation will help to enforce federal law with the use of science.”
As a result of this rule change, the Department of Justice will ensure that all federal agencies are in full compliance with the bipartisan DNA Fingerprint Act, which was a component of a larger legislative package that passed the House of Representatives by an overwhelming vote of 415 to four, and the Senate by unanimous consent. The DNA Fingerprint Act provided the Attorney General with the exclusive authority to draft regulations to authorize and direct any federal agency to “collect DNA samples from individuals who are arrested, facing charges, or convicted or from non-United States persons who are detained under the authority of the United States.” 24 U.S.C. § 40702(a)(1)(A).
Since Congress’ passage of the bipartisan DNA Fingerprint Act, the Federal Bureau of Investigation (FBI) built a high-throughput DNA sample processing infrastructure through its Combined DNA Index System (CODIS). The CODIS database is a vital tool for federal, state, and local law enforcement investigations. All fifty states, the District of Columbia, Puerto Rico, and federal law enforcement agencies participate in the national sharing of DNA profiles through CODIS. The FBI also has consistently reduced the operational burden for individual federal agencies to collect DNA through technological enhancements.
In advance of this rule change, the Department of Justice and DHS have been working collaboratively to conduct a pilot program for the collection of DNA from non-U.S. persons detained by DHS. As with all other DNA samples that federal agencies collect under the authority of the bipartisan DNA Fingerprint Act, the DNA samples that DHS collects from its non-United States person detainees will be entered into the Federal Bureau of Investigation’s Combined DNA Index System (CODIS). The FBI’s laboratory has the capacity to handle the increased input from DHS, and its capabilities can be scaled up to meet additional capacity. The FBI will provide DHS with the DNA collection kits, analyze the samples, and ensure that law enforcement agencies use the results in accordance with the FBI’s stringent CODIS privacy requirements.
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.
Toledo man charged with possessing a firearm after prior felony and domestic violence convictionsRead the Press Release
Terrell Moses, 36, of Toledo, Ohio was indicted on one count of felon in possession of a firearm and one count of possession of a firearm by a person with a prior misdemeanor of domestic violence conviction.
On January 20, 2020, Moses allegedly possessed a Glock, Model 17, nine caliber semi-automatic pistol after previously being convicted of burglary in the Lucas County Common Pleas Court and misdemeanor domestic violence in the Toledo Municipal Court.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms. The case is being prosecuted by Assistant United States Attorneys Deyana Unis and Matthew Simko.
Tennessee Man Ordered Removed to Germany Based on Service as Concentration Camp Guard During WWIIRead the Press Release
A U.S. Immigration Judge in Memphis, Tennessee, has issued a removal order against a German citizen and Tennessee resident, on the basis of his service in Nazi Germany in 1945 as an armed guard of concentration camp prisoners in the Neuengamme Concentration Camp system (Neuengamme).
After a two-day trial, a U.S. Immigration Judge issued an opinion finding Friedrich Karl Berger removable under the 1978 Holtzman Amendment to the Immigration and Nationality Act because his “willing service as an armed guard of prisoners at a concentration camp where persecution took place” constituted assistance in Nazi-sponsored persecution. The court found that Berger served at a Neuengamme sub-camp near Meppen, Germany, and that the prisoners there included “Jews, Poles, Russians, Danes, Dutch, Latvians, French, Italians, and political opponents” of the Nazis. The largest groups of prisoners were Russian, Dutch and Polish civilians.
The court found that Meppen prisoners were held during the winter of 1945 in “atrocious” conditions and were exploited for outdoor forced labor, working, as at other Nazi camps, “to the point of exhaustion and death.” The court further found, and Berger admitted, that he guarded prisoners to prevent them from escaping during their dawn-to-dusk workday, and on their way to the worksites and also on their way back to the subcamp in the evening.
At the end of March 1945, with the advance of British and Canadian forces, the Nazis abandoned Meppen. The court found that Berger helped guard the prisoners during their forcible evacuation to the Neuengamme main camp – a nearly two-week trip under inhumane conditions, which claimed the lives of some 70 prisoners. The decision also cited Berger’s admission that he never requested a transfer from concentration camp guard service and that he continues to receive a pension from Germany based on his employment in Germany, “including his wartime service.”
“Berger was part of the SS machinery of oppression that kept concentration camp prisoners in atrocious conditions of confinement,” said Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division. “This ruling shows the Department's continued commitment to obtaining a measure of justice, however late, for the victims of wartime Nazi persecution.”
“This case is but one example of U.S. Immigration and Customs Enforcement’s commitment to ensuring that the United States will not serve as a safe haven for human rights violators and war criminals,” said Assistant Director David C. Shaw of U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), National Security Investigations Division, who oversees the Human Rights Violators and War Crimes Center. “We will continue to pursue these types of cases so that justice may be served.”
In 1946, British occupation authorities in Germany charged SS Obersturmführer Hans Griem, who had headed the Meppen sub-camps, and other Meppen personnel with war crimes for “ill-treatment and murder of Allied nationals.” Although Griem escaped before trial, the British court tried and convicted the three remaining defendants of war crimes in 1947.
The removal case was jointly tried by Eli Rosenbaum, HRSP Director of Human Rights Enforcement and Policy, HRSP Senior Trial Attorney Susan Masling and ICE New Orleans, Office of the Principal Legal Advisor (Memphis), with assistance from HRSP Chief Historian Jeffrey S. Richter. The investigation was initiated by the HRSP and was conducted in partnership with HSI’s Nashville SAC office.
Since the 1979 inception of the Justice Department’s program to detect, investigate, and remove Nazi persecutors, it has won cases against 109 individuals. Over the past 30 years, the Justice Department has won more cases against persons who participated in Nazi persecution than have the law enforcement authorities of all the other countries in the world combined. HRSP’s case against Berger was part of its ongoing efforts to identify, investigate and prosecute individuals who engaged in genocide, torture, war crimes, recruitment or use of child soldiers, female genital mutilation, and other serious human rights violations. HRSP attorneys prosecuted the first torture case brought in the United States and have successfully prosecuted criminal cases against perpetrators of human rights violations in Guatemala, Ethiopia, Liberia, Cuba, and the former Yugoslavia, among others.
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.
Tennessee Man Ordered Removed to Germany Based on Service as Concentration Camp Guard During WWIIRead the Press Release
WASHINGTON – A U.S. Immigration Judge in Memphis, Tennessee, has issued a removal order against a German citizen and Tennessee resident, on the basis of his service in Nazi Germany in 1945 as an armed guard of concentration camp prisoners in the Neuengamme Concentration Camp system (Neuengamme).
After a two-day trial, a U.S. Immigration Judge issued an opinion finding Friedrich Karl Berger removable under the 1978 Holtzman Amendment to the Immigration and Nationality Act because his “willing service as an armed guard of prisoners at a concentration camp where persecution took place” constituted assistance in Nazi-sponsored persecution. The court found that Berger served at a Neuengamme sub-camp near Meppen, Germany, and that the prisoners there included “Jews, Poles, Russians, Danes, Dutch, Latvians, French, Italians, and political opponents” of the Nazis. The largest groups of prisoners were Russian, Dutch and Polish civilians.
The court found that Meppen prisoners were held during the winter of 1945 in “atrocious” conditions and were exploited for outdoor forced labor, working, as at other Nazi camps, “to the point of exhaustion and death.” The court further found, and Berger admitted, that he guarded prisoners to prevent them from escaping during their dawn-to-dusk workday, and on their way to the worksites and also on their way back to the subcamp in the evening.
At the end of March 1945, with the advance of British and Canadian forces, the Nazis abandoned Meppen. The court found that Berger helped guard the prisoners during their forcible evacuation to the Neuengamme main camp – a nearly two-week trip under inhumane conditions, which claimed the lives of some 70 prisoners. The decision also cited Berger’s admission that he never requested a transfer from concentration camp guard service and that he continues to receive a pension from Germany based on his employment in Germany, “including his wartime service.”
“Berger was part of the SS machinery of oppression that kept concentration camp prisoners in atrocious conditions of confinement,” said Assistant Attorney General Brian A. Benczkowski of the Department of Justice’s Criminal Division. “This ruling shows the Department's continued commitment to obtaining a measure of justice, however late, for the victims of wartime Nazi persecution.”
“This case is but one example of U.S. Immigration and Customs Enforcement’s commitment to ensuring that the United States will not serve as a safe haven for human rights violators and war criminals,” said Assistant Director David C. Shaw of U.S Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), National Security Investigations Division, who oversees the Human Rights Violators and War Crimes Center. “We will continue to pursue these types of cases so that justice may be served.”
In 1946, British occupation authorities in Germany charged SS Obersturmführer Hans Griem, who had headed the Meppen sub-camps, and other Meppen personnel with war crimes for “ill-treatment and murder of Allied nationals.” Although Griem escaped before trial, the British court tried and convicted the three remaining defendants of war crimes in 1947.
The removal case was jointly tried by Eli Rosenbaum, HRSP Director of Human Rights Enforcement and Policy, HRSP Senior Trial Attorney Susan Masling and ICE New Orleans, Office of the Principal Legal Advisor (Memphis), with assistance from HRSP Chief Historian Jeffrey S. Richter. The investigation was initiated by the HRSP and was conducted in partnership with HSI’s Nashville SAC office.
Since the 1979 inception of the Justice Department’s program to detect, investigate, and remove Nazi persecutors, it has won cases against 109 individuals. Over the past 30 years, the Justice Department has won more cases against persons who participated in Nazi persecution than have the law enforcement authorities of all the other countries in the world combined. HRSP’s case against Berger was part of its ongoing efforts to identify, investigate and prosecute individuals who engaged in genocide, torture, war crimes, recruitment or use of child soldiers, female genital mutilation, and other serious human rights violations. HRSP attorneys prosecuted the first torture case brought in the United States and have successfully prosecuted criminal cases against perpetrators of human rights violations in Guatemala, Ethiopia, Liberia, Cuba, and the former Yugoslavia, among others.
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.
Maumee man indicted for threatening a mass shooting in IllinoisRead the Press Release
Ryan James Gagnet, 22, was indicted by a federal grand jury for transmitting a threatening interstate communication. The indictment alleges that on February 5, 2020, Gagnet wrote online, “Hi. It’s going to be even more scary tomorrow. Because I’m going to be on the news. Commit a mass shooting. In shorewood Illoinis.”
As set out in court filings and proceedings, Gagnet used an online chat platform Omegle to post anonymous threats about committing a mass shooting in Shorewood, Illinois. He admitted “wearing a mask” and “telling people . . . that there may be a mass shooting at some point. . . . then I would just see how ah their frightened reactions.” Gagnet also indicated there would be disturbing searches on his electronic devices.
“Every person in this country deserves to feel safe in their community,” stated U.S. Attorney Justin Herdman. “Any alleged threat to conduct a mass shooting will result in swift law enforcement action and appropriate federal charges. I am proud of the quick response by our office and the Federal Bureau of Investigation.”
“Any post that threatens the lives of others will receive a prompt law enforcement response,” said FBI Special Agent in Charge Eric Smith. “Citizens need to be able to go about their everyday lives without the fear of being a victim of a mass shooting. Law enforcement will continue to collaborate and utilize all necessary resources to protect others, it is our number one priority.”
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the FBI Joint Terrorism Task Force and is being prosecuted by Assistant U.S. Attorney Michael Freeman.
Justice Department Settles Lawsuit Alleging Disability-Based Discrimination by Developer and Franchisor of 32 Condominium Properties in OhioRead the Press Release
The Justice Department announced today that an Ohio developer and a franchisor of multifamily properties have agreed to settle a federal lawsuit alleging that they violated the Fair Housing Act (FHA) by designing and constructing 32 multifamily properties in Ohio that are inaccessible to persons with disabilities.
“For more than a quarter century, federal law has required multifamily housing complexes to be built with accessible features,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “This lawsuit is part of the Department of Justice’s continuing efforts to ensure that those who actively participate in the development of multifamily housing fulfill their responsibilities to ensure that the properties are accessible for persons with disabilities as required by the Fair Housing Act.”
“The purpose of the Fair Housing Act is to advance equal opportunity in housing and end discrimination,” said U.S. Attorney David DeViller for the Southern District of Ohio. “This office is committed to vigorously enforcing the Act. Developers in the Southern District of Ohio will either live up to their obligations under the law, or we will go to court to require that they do so.”
Today’s settlement, pending court approval, resolves a lawsuit the Department filed in October 2019 in the Southern District of Ohio. It alleges that Ohio developer Epcon Communities, LLP and its related entity, Epcon Communities Franchising, Inc., violated the FHA when they designed and constructed the 32 condominium properties in Ohio with steps and other features that made them inaccessible to persons with disabilities.
This matter originated with a complaint filed with the Department of Housing and Urban Development (HUD) by the Fair Housing Advocates Association, a fair housing organization in Akron, Ohio. HUD then initiated its own complaint and, after completing an investigation, determined that the Defendants had violated the FHA and referred the matter to the Department of Justice.
“When architects and developers fail to design and construct housing consistent with Fair Housing Act requirements, it’s the same as the property having a sign that reads, ‘no wheelchairs allowed,’” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue working with the Justice Department to take appropriate action to ensure that persons with disabilities, some of our most vulnerable citizens, have the type of housing that meets their needs.”
Under the terms of the settlement, Epcon Communities, Inc. and Epcon Communities Franchising, Inc. must pay up to $2,200,000 to correct inaccessible features in the common areas of the properties and within the individual units. The corrections that defendants must make to the common areas include: removing steps; replacing steeply-sloped walkways; adding accessible routes from units to amenities such as the clubhouse and swimming pool; and providing accessible parking. The defendants must also offer to pay current owners to correct certain inaccessible features within condominium units, including those found in bathrooms and kitchens. Additionally, they must establish a $300,000 settlement fund for people who suffered harm due to the lack of accessible features at the 32 Ohio properties, pay a civil penalty of $51,303 to the United States, and ensure that any future housing they design or construct complies with the FHA. Defendants also must pay $40,000 in damages to the Fair Housing Advocates Association, which filed the discrimination complaint with HUD that initiated this case.
Persons who lived at or sought to live at one of the properties listed below who were denied housing or otherwise harmed because the complex was not accessible may be entitled to monetary compensation through today’s settlement. Such persons can contact the Justice Department toll-free at 1-800-896-7743 mailbox #994 or by email at [email protected].
The properties at issue are:
- Cobblestone at the Preserve, New Albany, Ohio
- Courtyards at Seldom Seen, Powell, Ohio
- Fountainview at Parkway, Grove City, Ohio
- Village at North Falls, Delaware, Ohio
- Villas at Canterbury Woods, Westerville, Ohio
- Villas at Glenealy, 6315 Donegan Way, Dublin, Ohio
- Villas at Maple Creek, Westerville, Ohio
- Villas at Woodcutter, Powell, Ohio
- Windsor Bridge at the Preserve, New Albany, Ohio
- Woods at Hayden Run, Hilliard, Ohio
- Woods at Sugar Run, New Albany, Ohio
- Ballymeade Village, Beavercreek, Ohio
- Bridgewater, Mansfield, Ohio
- Fairway Villas at Catawba Island Club, Port Clinton, Ohio
- Fairways at Boulder Creek, Streetsboro, Ohio
- Quarry Lakes at Amherst, Ohio
- Reddington Village, Newark, Ohio
- Sanctuary at Plum Brook, Huron, Ohio
- Springfield Ridge, Poland, Ohio
- Village of Colonial Woods, Mount Vernon, Ohio
- Village at Riverwalk, Lima, Ohio
- Villages of River Oaks, Heath, Ohio
- Villas at Beavercreek, Beavercreek, Ohio
- Villas at Benchrock, Tipp City, Ohio
- Villas at Charleston Lake, Canal Winchester, Ohio
- Villas at Foor Farms, Pataskala, Ohio
- Villas in Hamilton West, Hamilton, Ohio
- Villas at Milnor Crossing, Pickerington, Ohio
- Villas at Park Place, West Chester, Ohio
- Wellington Place, Zanesville, Ohio
- Woodland Run, Columbiana, Ohio
- Woods on Wilkens, Mason, Ohio
The Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 12, 1991, to have basic accessibility features, including accessible routes without steps to all ground-floor units.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they have been victims of housing discrimination may call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint.
Department of Justice, Homeland Security and International Partners Announce Launch of Voluntary Principles to Counter Online Child Sexual Exploitation and AbuseRead the Press Release
The Justice Department and Homeland Security, along with government counterparts from Australia, Canada, New Zealand, and the United Kingdom, announced today the publication of Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse. Developed in consultation with several leading technology companies, the 11 voluntary principles outline measures that companies in the technology industry can choose to implement to protect the children who use their platforms from sexual abuse online and to make their platforms more difficult for child sex offenders to exploit.
“Today marks a historic event,” said U.S. Attorney General William P. Barr. “For the first time, the Five Countries are collaborating with tech companies to protect children against online sexual exploitation. We hope the Voluntary Principles will spur collective action on the part of industry to stop one of the most horrendous crimes impacting some of the most vulnerable members of society.”
Online child sexual exploitation and abuse is a global crime that demands a global response. In an increasingly digital and borderless world, this crime has become easier to commit. Rapidly evolving technology and anonymizing tools allow offenders to continuously adapt and diversify their methods to conceal their activities from law enforcement. Not surprisingly, as a consequence, offenses are growing in scale and are becoming more extreme. These crimes have a devastating and lasting impact on victims and survivors.
“Nothing is of greater importance to the Trump Administration than ensuring the safety and security of Americans, especially the most vulnerable among us — our children,” said Acting Secretary for the U.S. Department of Homeland Security (DHS) Chad Wolf. “Combating online child sexual exploitation is a top priority for the department. ICE Homeland Security Investigations has one in 10 agents investigating child sexual exploitation at any given time and that is why DHS released its first Strategy to Combat Human Trafficking, the Importation of Goods Produced with Forced Labor, and Child Sexual Exploitation. I am confident the Voluntary Principles will help us move forward our goal of creating a world where children can grow up free from sexual exploitation. The Voluntary Principles set new norms across the private sector, incorporating child safety throughout a company’s operations and properly considering the needs of victim-survivors.”
“We cannot allow children to fall victim to predators who lurk in the shadows of the web,” said UK Security Minister James Brokenshire. “Through global collaboration and with enhanced action from the Five Countries, law enforcement agencies and tech companies, we will ensure that children are protected online.”
“It is imperative that we keep children safe from online sexual exploitation and abuse, and we can only accomplish that if we work together with other countries and across sectors,” said Canada’s Minister of Public Safety and Emergency Preparedness Bill Blair. “Today’s release of the Voluntary Principles represents a huge step forward and is the result of innovative cooperation between Five Eyes partners and industry stakeholders. For Canada, the principles directly align with our efforts guided by our National Strategy and continues to fulfill our commitment of protecting children from sexual exploitation of any kind.”
“When it comes to tackling child abuse committed on online platforms and services, the digital industry has a vital role to play,” said Australian Minister for Home Affairs Peter Dutton. “The Voluntary Principles will help industry optimize these efforts; they reflect Governments’ expectations of digital industry, and are scalable and practical to implement across various platforms — from search engines to gaming services to social media networking sites.”
“Those who engage in online child sexual exploitation work to get around current barriers and regulations, despite the best efforts and hard work of the digital industry,” said New Zealand Minister of Internal Affairs and Minister for Children Tracey Martin. “This is a global crime that demands a global response. Working with my colleagues from the Five Countries and the digital industry has ensured we have a set of principles that are robust, flexible, and most importantly, will create effective responses.”
At the Five Country Ministerial Digital Industry Roundtable on July 30, 2019 in London, the Five Country Ministers and senior representatives from Facebook, Google, Microsoft, Roblox, Snap and Twitter agreed “tackling [the online child sexual abuse] epidemic requires an immediate upscaling of the global response to ensure that all children across the globe are protected…and that there is no safe space online for offenders to operate.” As a result, the Five Countries developed the Voluntary Principles to Counter Online Child Sexual Exploitation and Abuse in consultation with the six companies and a broad range of experts from industry, civil society and academia.
The voluntary principles provide a common and consistent framework to guide the digital industry in its efforts to combat the proliferation of online child exploitation. The voluntary principles cover the following themes:
- Prevent child sexual abuse material;
- Target online grooming and preparatory behavior;
- Target livestreaming;
- Prevent searches of child sexual abuse material from surfacing;
- Adopt a specialized approach for children;
- Consider victim/survivor-led mechanisms; and
- Collaborate and respond to evolving threats.
These voluntary principles are built on existing industry efforts to combat these crimes. Some leading companies have dedicated significant resources to develop and deploy tools in the fight to protect children online and to detect, disrupt and identify offenders. Although significant progress has been made, there is much more to be done to strengthen existing efforts and enhance collective action.
These principles are intended to have sufficient flexibility to ensure effective implementation by industry actors. Some companies have already implemented measures similar to those outlined in these principles. Regardless of whether or not a company chooses to adopt these principles, existing laws and regulations in relevant jurisdictions continue to apply to all companies. Nothing in these principles overrides or is contrary to the need for companies to comply with the law.
The Five Country governments have partnered with the WePROTECT Global Alliance — an international body comprising government, industry and civil society members — to promote the Principles globally and drive collective industry action. The WePROTECT Global Alliance will also collate information about industry’s uptake of the Principles, connect subject matter experts to share best practices for implementation, and analyze the evolving threat environment to identify gaps in the global response. Five Country Governments will work closely with the WePROTECT Global Alliance to ensure the Principles remain fit-for-purpose for emerging trends and threats.
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.
Northern Air Cargo LLC, Agrees to Pay $4.7 Million for Allegedly Falsely Reporting Delivery of U.S. Mail Transported InternationallyRead the Press Release
The Justice Department announced today that Northern Air Cargo LLC, has agreed to pay $4.7 million to resolve its potential liability under the False Claims Act for falsely reporting information regarding the delivery of United States mail to foreign postal administrations or other intended recipients under contracts with the United States Postal Service (USPS). Northern Air Cargo is a cargo airline headquartered in Anchorage, AK.
“Government contractors must abide by their contractual commitments to the United States,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Those who knowingly misrepresent compliance with their contractual obligations will face appropriate consequences.”
USPS contracted with Northern Air Cargo to take possession of receptacles of United States mail at six locations in the United States or at various Department of Defense and Department of State locations abroad, and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, Northern Air Cargo was required to submit electronic scans of the mail receptacles to USPS that confirmed the time and delivery of the mail at the specified destinations. The contracts specified penalties for mail that was delivered late or to the wrong location. Today’s settlement resolves allegations that Northern Air Cargo submitted scans that falsely reported the time that possession of the mail was transferred.
“The safeguarding and timely delivery of the U.S. Mail to both international and domestic venues is of critical importance to the U.S. Postal Service,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by promptly investigating allegations of contractual malfeasance, including instances of delivery falsification. Working closely with the Department of Justice’s Civil Division, our special agents worked diligently to ensure an appropriate resolution.”
This matter was handled by the Civil Division’s Commercial Litigation Branch, in coordination with the USPS Office of the Inspector General and the USPS Office of General Counsel.
The claims settled by this agreement 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.
Department of Justice Antitrust Division Announces Agenda and Panelists for Workshop on Proposed Vertical Merger GuidelinesRead the Press Release
The Department of Justice has released the agenda and list of participants for its March 11, 2020, public workshop to solicit public dialogue on the proposed vertical merger guidelines. The workshop will be the first in a two-part series hosted together with the Federal Trade Commission. The two half-day workshops will allow for a dynamic discussion about the proposed guidelines to complement the written public comments about the proposed guidelines that were submitted to the agencies.
The proposed guidelines describe how the federal antitrust agencies review vertical mergers to evaluate whether they violate antitrust law. Vertical mergers combine two or more companies that operate at different levels of the supply chain. The proposed guidelines outline the agencies’ principal analytical techniques, practices, and enforcement policy for vertical mergers. The Department of Justice and the FTC cooperated closely in preparing the proposed guidelines, which reflect the agencies’ significant experience in analyzing vertical mergers. The guidelines are intended to assist the business community and antitrust practitioners by providing transparency about the agencies’ antitrust enforcement practices with respect to vertical mergers.
The agencies will consider both public comments and workshop discussions before issuing final vertical merger guidelines. A copy of the public comments received by the agencies are available here.
The agenda for the workshop includes a session from 9:00 a.m. to 1:00 p.m. EDT. Details are as follows:
Welcome Address
- Makan Delrahim, Assistant Attorney General for Antitrust, U.S. Department of Justice
Opening Remarks
- Christine Wilson, Commissioner, Federal Trade Commission
Panel 1: Former Enforcer and Practitioner Perspectives
- Moderators: David Shaw, Counsel to the Assistant Attorney General for Antitrust, U.S. Department of Justice & Heather Johnson, Senior Counsel to the Director, Bureau of Competition, Federal Trade Commission
- Renata Hesse, Partner, Sullivan & Cromwell, former Acting Assistant Attorney General for Antitrust, U.S. Department of Justice
- Jonathan Jacobson, Partner, Wilson Sonsini
- Robert Majure, Ph.D., Vice President, Cornerstone Research, former Director of Economics for the Antitrust Division of the U.S. Department of Justice
- Jonathan Sallet, Senior Fellow, Benton Institute for Broadband & Society, former Deputy Assistant Attorney General for Antitrust, U.S. Department of Justice
- Craig Waldman, Partner, Jones Day
Panel 2: Public Interest and Academic Perspectives
- Moderators: David Lawrence, Chief, Competition Policy & Advocacy Section, Antitrust Division, U.S. Department of Justice & Andrew Sweeting, Director, Bureau of Economics, Federal Trade Commission
- Avery Gardiner, Senior Fellow for Competition, Data, and Power, Center for Democracy & Technology, former Counsel to the Assistant Attorney General for Antitrust, U.S. Department of Justice
- Aviv Nevo, Ph.D., Professor, University of Pennsylvania, former Deputy Assistant Attorney General for Economic Analysis, Antitrust Division, U.S. Department of Justice
- Steven Salop, Ph.D., Professor, Georgetown Law Center, former Associate Director for Special Projects, Bureau of Economics, Federal Trade Commission
- Charlotte Slaiman, Competition Policy Director, Public Knowledge
- Christopher Yoo, Professor, University of Pennsylvania Carey Law School
The workshop is free and open to the public. The March 11, 2020 workshop will take place at the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, D.C., from 9:00 a.m. to 1:00 p.m. EDT. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, directions to the event, and a list of speakers will be available prior to each workshop on the event webpage. Attendees are encouraged, but not required, to register in advance for the workshop. Registration for the workshop may be completed on Eventbrite. Members of the press should also copy [email protected] on their registration email. Seating will be on a first-come, first-served basis. Attendees should bring a valid government-issued photo ID (government badge, license, passport, etc.) and arrive in time to go through security.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the Antitrust Division at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
The second workshop will be hosted on March 18, 2020, by the Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C., from 1 p.m. to 5 p.m. EDT. The Federal Trade Commission will announce the agenda for the second workshop at www.ftc.gov.
United States Intervenes in False Claims Act Lawsuit against Drug Maker Mallinckrodt Alleging Company Knowingly Avoided Paying Medicaid Rebates Owed Due to Significant Price IncreasesRead the Press Release
The United States filed a complaint under the False Claims Act against Mallinckrodt ARD LLC, formerly known as Mallinckrodt ARD Inc. and previously Questcor Pharmaceuticals Inc. (collectively, Mallinckrodt), in the U.S. District Court for the District of Massachusetts, the Department of Justice announced today. The government alleges that Mallinckrodt has violated the False Claims Act by knowingly underpaying Medicaid rebates due as a result of large increases in the price of its drug H.P. Acthar Gel (Acthar).
“The Medicaid Rebate Statute provides an important check on rising drug prices,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will not hesitate to hold accountable drug companies that attempt to skirt this important protection at the expense of the Medicaid program, which helps ensure that some of our most vulnerable citizens are able to receive medical care.”
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers must pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The mandatory rebate includes an inflationary component, which is designed to insulate the Medicaid program from drug price increases that outpace the rate of inflation. In particular, for drugs sold to Medicaid, a manufacturer must pay a rebate that is based on the drug’s price since 1990 or when it was first marketed, whichever date is later.
The government alleges that although Acthar was first marketed long before 1990, Mallinckrodt and its predecessor, Questcor, began calculating and paying rebates as if Acthar was a new drug first marketed in 2013, based on the Food and Drug Administration’s approval of a new indication for Acthar’s use in 2010. Given that Questcor had raised Acthar’s price by more than $20,000 per unit prior to 2013, the government alleges that Questcor and later Mallinckrodt avoided paying inflationary rebates on any of those pre-2013 price increases, and has thus knowingly underpaid hundreds of millions of dollars at the expense of American taxpayers.
In failing to pay these rebates, the government alleges that Mallinckrodt knowingly avoided its obligations under the Medicaid Drug Rebate Statute despite repeated government warnings. The government alleges, for example, that the Centers for Medicare and Medicaid Services (CMS), which administers the Medicaid program at the federal level, warned Mallinckrodt on multiple occasions that it could not ignore Acthar’s pre-2013 price increases when paying Medicaid rebates for the drug.
“Mallinckrodt raised the price of its drug to an extraordinary level and then allegedly cheated the Medicaid program out of hundreds of millions of dollars,” said U.S. Attorney Andrew Lelling for the District of Massachusetts. “The government will always target this kind of exploitation of a program designed to provide health care to vulnerable members of our society.”
“The Medicaid Drug Rebate Program requires drug manufacturers to pay additional rebate amounts if they increase prices beyond a certain level,” said Special Agent in Charge Phillip M Coyne, Office of the Inspector General for the U.S Department of Health and Human Services. “We take very seriously our responsibility to safeguard taxpayers by ensuring all drug manufacturers meet their obligations under the Medicaid Drug Rebate Program, and I appreciate the continued partnership with the Massachusetts U.S Attorney's Office to protect public funds.”
The allegations that are the subject of the government’s complaint were originally alleged in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government has done in this case, which is captioned United States of America et al. ex rel. Landolt v. Mallinckrodt Pharmaceuticals Inc., No. 18-11931-PBS (D. Mass.).
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The claims asserted by the United States 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.
Houston Bus Company Distributes More Than $90,000 to U.S. Workers Under Department of Justice SettlementRead the Press Release
The Department of Justice announced today that El Expreso Bus Company (El Expreso), based in Houston, Texas, has paid over $90,000 to eight U.S. workers pursuant to a May 29, 2019, settlement agreement.
The settlement resolved the Department’s claims that El Expreso discriminated against U.S. workers due to a hiring preference for temporary visa workers, in violation of the Immigration and Nationality Act (INA). This settlement is part of the Department’s Protecting U.S. Workers Initiative, which targets, investigates, and brings enforcement actions against companies that discriminate against U.S. workers because they prefer to hire foreign visa workers. Since the Initiative’s inception, employers have agreed to pay or have distributed a combined total of more than $1.1 million to U.S. workers and civil penalties to the United States.
“U.S. workers are the lifeblood of our economy, and we are gratified that these U.S. workers have now been compensated for the discrimination that they faced,” said Assistant Attorney General Eric Dreiband of the Justice Department's Civil Rights Division. “The Department of Justice will not tolerate employers abusing temporary visa programs to deny U.S. workers job opportunities.”
The Department’s investigation leading up to the settlement determined that El Expreso failed to consider applications from qualified U.S. workers for its temporary bus driver positions and then petitioned for H-2B visa workers to fill the positions, even though the H-2B visa program requires employers to recruit and hire available and qualified U.S. workers before they receive permission to hire temporary foreign workers. The INA generally prohibits employers from refusing to hire or consider U.S. workers because of their citizenship status.
Under the terms of the settlement, the Civil Rights Division identified victims of discrimination eligible for back-pay awards and determined the amount of those awards. The Department determined that eight U.S. workers were eligible to receive a total of $91,015.35 in back pay.
Under the Protecting U.S. Workers Initiative, the Civil Rights Division has opened dozens of investigations and reached settlement agreements with seven employers to address this type of discrimination. The Division has also increased its collaboration with other federal agencies to combat discrimination and abuse by employers using foreign visa workers.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
More information about protections against unlawful citizenship status discrimination is available here. The public may also 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); email [email protected]; or visit IER’s English and Spanish websites. The public is invited to attend a free webinar on March 19, 2020 discussing unlawful discrimination under the INA’s anti-discrimination provision. 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.