District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Extradited Former Automotive Parts Executive Pleads Guilty to Antitrust ChargeRead the Press Release
Eun Soo Kim, a former key accounts manager for Continental Automotive Korea Ltd. and a Korean national, was extradited from Germany and pleaded guilty for his role in an international market allocation and bid-rigging conspiracy involving the sale of instrument panel clusters to several automobile producers, the Department of Justice announced.
“Today’s guilty plea further demonstrates our commitment at the Antitrust Division and shows that neither time nor distance provide refuge for executives who conspire to cheat American consumers,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Antitrust Division will leave no stone unturned including working with enforcers around the world to bring to justice those who infect international markets with collusion.”
“The FBI will vigorously investigate and work to prosecute individuals, such as Kim, who conspire to allocate sales and rig bids for their own selfish gain and at the expense of the American people,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Today’s extradition and guilty plea demonstrate the FBI’s determination to bring those who violate competition law the United States has long upheld to justice.”
Kim’s extradition is the third extradition based solely on an antitrust charge and the second in as many months. A fugitive for nearly five years, Kim was apprehended by German authorities in September 2019 in Frankfurt. Kim ultimately consented to extradition and arrived in Atlanta on February 28, 2020. Kim appeared before Judge Timothy C. Batten, Sr. of the United States District Court for the Northern District of Georgia and pleaded guilty on March 2, 2020. Judge Batten sentenced Kim to nine months in prison with credit for the time he was held in custody pending extradition and prior to sentencing. He also has been sentenced to pay a $130,000 criminal fine.
Kim pleaded guilty to conspiring to allocate sales of, rig bids for, and submit rigged and non-competitive bids for instrument panel clusters sold to Korean automobile producers and their subsidiaries in the United States and elsewhere. Instrument panel clusters are a set of instruments located on the dashboard of a vehicle that contain gauges such as the speedometer, tachometer, odometer, and fuel gauge, as well as warning indicators for gearshift position, seat belt, parking-brake engagement, engine malfunction, low fuel, low oil pressure, and low tire pressure. Kim participated in the conspiracy from at least as early as February 2008 until as late as May 2012.
Including Kim, more than 100 companies and executives have been charged in the Justice Department’s investigation into the automotive parts industry. More than $2.9 billion in criminal fines have been imposed and 32 individuals have been sentenced to pay criminal fines and to serve prison sentences ranging from a year and a day to two years.
Kim was charged with bid rigging in violation of the Sherman Act, which carries maximum penalties of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from 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.
This case is the result of a federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry conducted by the Antitrust Division and the FBI. Today’s charges were brought by the Antitrust Division’s Chicago Office and the FBI’s Mobile, Alabama, Field Office. Assistance with the extradition was provided by the Department of Justice Criminal Division’s Office of International Affairs and the United States Marshals Service. The Department of Justice thanks the government of Germany for its assistance in this case. Anyone with information on price fixing, bid rigging, or other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1–888–647–3258 or visit www.justice.gov/atr/contact/newcase.html.
Department of Justice Launches a National Nursing Home InitiativeRead the Press Release
Attorney General William P. Barr announced today the launch of the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country and the Department already has initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
“Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable,” said Attorney General William P. Barr. “Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents, and help to ensure residents receive the care to which they are entitled.”
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so that they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents. These care failures cause residents to suffer in pain and to be exposed to the great indignities. Care failures cause residents to develop pressure sores down to the bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing and rodents found living in residents’ rooms. These are some of the actions and the inactions that the department intends to pursue.
“The Department of Justice has a long history of holding nursing homes and long-term care providers accountable when they fail to provide their Medicare and Medicaid residents with even the most basic nursing services,” said Assistant Attorney General Jody Hunt for the Civil Division. “Through this National Initiative, we will more effectively and quickly pursue nursing homes that are jeopardizing the health and well-being of their residents.”
“The Administration for Community Living was created to help ensure that older adults and people with disabilities are able to live the lives they want, with the people they choose, fully participating in their communities,” said Administrator Lance Robertson for the Administration for Community Living, U.S. Department of Health and Human Services. “Our mission includes supporting their basic right to live with dignity, free from abuse. We appreciate the Department of Justice’s leadership on this important Initiative, and we are proud to work side by side with DOJ and all of our partners in the Elder Justice Coordinating Council to prevent elder abuse in all forms.”
“The HHS Office of Inspector General (OIG) continues to pursue nursing home operators who provide potentially harmful care to residents who are often unable to protect themselves,” said Chief Counsel to the Inspector General Gregory Demske of HHS. “Creating this Initiative sends a message to those in charge of caring for these beneficiaries that grossly substandard care will not be tolerated.”
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
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 Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today announced the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
Attorney General Barr made the announcement at an event in Florida entitled “Keeping Seniors Safe,” which outlined his vision for protecting older Americans from financial harm. The event focused special attention on the threat posed by foreign-based fraud schemes that victimize seniors in large numbers. During the event, the Attorney General declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“The charges announced today demonstrate the great success of the Transnational Elder Fraud Strike Force to identify and stop those who are targeting our senior communities from overseas,” said FBI Director Christopher Wray. “We’re committed to continuing our efforts to keep our elderly citizens safe, whether they’re being targeted door-to-door, over the phone, or online.”
“Every day, American consumers, particularly older Americans, receive offers that sound just too good to be true,” said Chief Postal Inspector Gary Barksdale. “Some come through the mail; others by telephone or the Internet. These offers have one objective – to rob you of your hard-earned money. Fraud costs Americans millions of dollars each year. The good news is most frauds can be prevented. It’s one of the few crimes in which potential victims can just say “No!” So hold on to your money and report scams to Postal Inspectors.”
This interactive map provides state by state information on the elder fraud cases and education and prevention community outreach efforts highlighted by today’s sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Transnational Elder Fraud Strike Force
The Transnational Elder Fraud Strike Force prosecuted more than one quarter of the defendants charged as part of the announced sweep. Established in June 2019, the Strike Force is composed of the department’s Consumer Protection Branch and six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Prosecutors in Strike Force districts brought cases against more than 140 sweep defendants. FBI and the Postal Inspection Service served as lead agencies in the Strike Force and committed substantial investigative resources to pursuing elder fraud cases as part of Strike Force efforts. The Strike Force has held dozens of meetings with industry, victim groups, and law enforcement at the federal, state, and local levels to identify the most harmful schemes victimizing American seniors and to bolster preventive measures against further losses.
Law Enforcement Actions Swept from Coast to Coast
U.S. Attorneys’ Offices in every federal district took part in the Elder Fraud Sweep announced today. Many federal prosecuting offices filed cases against perpetrators and/or facilitators of elder fraud. Others conducted outreach to law enforcement, community groups, seniors, or private industry. Other U.S. Attorneys’ Offices demonstrated exceptional devotion to the cause of elder justice by both filing cases and conducting outreach.
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
In addition to announcing the sweep cases, Attorney General Barr and others at the Keeping Seniors Safe event also thanked department personnel — especially the Elder Justice Coordinators appointed in each U.S. Attorney’s Office — for conducting dozens of outreach events across the nation to warn seniors of fraud schemes and to engage with industry representatives and state and local authorities on fraud-prevention measures. These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
Compañía de Autobuses de Houston Distribuye más de $90,000 a Trabajadores en este País Según un Acuerdo Conciliatorio con el Departamento de JusticiaRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que El Expreso Bus Company (El Expreso), una empresa con sede en Houston, Tejas, ha pagado más de $90,000 a ocho trabajadores en este país según el acuerdo conciliatorio del 29 de mayo de 2019. Este acuerdo resuelve las reclamaciones del Departamento de que El Expreso discriminó a trabajadores en este país al preferir la contratación de trabajadores con visa temporal, en violación de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés). Este acuerdo forma parte de la Iniciativa para la Protección de los Trabajadores en los EE. UU. del Departamento, cuya meta es investigar y tomar medidas para hacer cumplir la ley en casos de empresas que discriminan a trabajadores en este país porque prefieren contratar a trabajadores extranjeros con visa. Desde la incepción de la Iniciativa, los empleadores han acordado pagar o distribuir un total combinado de más de $1.1 millones a trabajadores en este país y multas civiles a los Estados Unidos.
“Los trabajadores de este país son el alma de nuestra economía, y estamos satisfechos de que estos trabajadores hayan sido compensados ahora por la discriminación que sufrieron”, dijo el Fiscal General Adjunto Eric Dreiband de la División de Derechos Civiles. “El Departamento de Justicia no tolerará a empleadores que abusen de programas de visas temporales para denegar oportunidades de trabajo a trabajadores de este país”.
La investigación del Departamento que resultó en el acuerdo determinó que El Expreso no había tenido en cuenta solicitudes de trabajadores cualificados en este país para puestos temporales como conductores de autobús, pero que sí había buscado a trabajadores con visa H-2B para cubrir los puestos, aunque el programa de visas H2-B requiere que los empleadores recluten y contraten a trabajadores cualificados disponibles en este país antes de recibir permiso para contratar a trabajadores extranjeros temporales. La INA prohíbe en general que los empleadores se nieguen a contratar o considerar para sus puestos a trabajadores en este país debido a su condición de ciudadanía.
Según los términos del acuerdo, la División de Derechos Civiles del Departamento identificó a las víctimas discriminadas elegibles para recibir indemnizaciones de pagos retroactivos y determinó la cantidad de dichas indemnizaciones. El Departamento determinó que ocho trabajadores de este país tenían derecho a recibir un total de $91,015,35 en pagos retroactivos.
En virtud de la Iniciativa para la Protección de los Trabajadores en los EE. UU., la División de Derechos Civiles ha iniciado decenas de investigaciones y llegado a acuerdos conciliatorios con siete empleadores para tratar con este tipo de discriminación. La División también ha aumentado su colaboración con otras agencias federales para combatir la discriminación y el abuso por parte de empleadores que usan trabajadores extranjeros con visa.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División es responsable de aplicar la estipulación antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de condición de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias e intimidación.
Se dispone de información adicional sobre protecciones contra la discriminación ilegal en el empleo haciendo clic aquí. El público también puede llamar a la línea directa de la IER para trabajadores 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; o visitar los sitios web en inglés y español de la IER. Se invita al público a asistir a un seminario en línea gratuito el 19 de marzo de 2020 para tratar la discriminación ilegal según la estipulación antidiscriminatoria de la INA. Suscríbase a GovDelivery para recibir actualizaciones de la IER,
Aquellos postulantes o empleados que crean haber sido discriminados debido a su ciudadanía, estado de inmigración u origen nacional durante los procesos de contratación, despido o reclutamiento o recomendación por una comisión; discriminación en el proceso de la verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) según su nacionalidad de origen, condición de inmigración o ciudadanía; o represalias pueden presentar una denuncia o llamar a la línea directa de la IER para trabajadores con el fin de pedir ayuda.
Presidential Task Force on Missing and Murdered American Indians and Alaska Natives Announces Tribal Consultations and Listening SessionsRead the Press Release
WASHINGTON – The Presidential Task force on Missing and Murdered American Indians and Alaska Natives announced a series of field consultations and listening sessions to occur across the United States in the coming months.
American Indians and Alaska Natives experience disproportionately high rates of violence. President Trump has called the crisis of missing and murdered Native Americans “sobering and heartbreaking.” The task force, designated Operation Lady Justice, has been empowered to review Indian Country cold cases, to strengthen law enforcement protocols, and work with tribes to improve investigations, information sharing and a more seamless response to missing persons investigations.
Confirmed Dates and Locations
March 2nd, 3:00 p.m. – 4:30 p.m.
- Department of Health and Human Services, Administration for Children & Families Tribal Advisory Council Mtg. – Washington D.C. Listening Session (CLOSED PRESS)
March 12th, 10:30 a.m. – 12:30 p.m.
- Tribal Interior Budget Council Listening Session – Washington, DC (CLOSED PRESS)
March 17th, 2:00 p.m. – 5:00 p.m.
- United South & Eastern Tribes (USET), Midwest Alliance of Sovereign Tribes (MAST) Listening Session – Marriott Marquis, 901 Massachusetts Ave NW, Washington, D.C.
March 24th, 9:00 a.m. – 4:00 p.m.
- Muscogee Creek Listening Session – River Spirit Casino, 8330 Riverside Parkway, Tulsa, OK
March 31st, 10:30 am – 12:00 p.m.
- 38th Annual Protecting Our Children Conference Listening Session – Marriott Denver Tech Center- Host Hotel, Denver, CO (CLOSED PRESS)
April 15th, 9:00 a.m. – 4:00 p.m.
- Pascua Yaqui Listening Session – Casino Del Sol, 5655 W. Valencia Rd., Tucson, AZ
April 21st, 1:30 p.m. – 5:00 p.m.
- Sycuan Band, California Listening Session, 3 Kwaaypaay Court, El Cajon, CA
April 28th, 9:00 a.m. – 3:00 p.m.
- National Indian Programs Training Center - CONSULTATION – 1101 Indian School Road NW, rooms 233-234, Albuquerque, NM
May 12th, 9:00 a.m. – 4:00 p.m.
- Grand Traverse Band of Ottawa and Chippewa Listening Session – Grand Traverse Resort & Spa, 100 Grand Traverse Village Blvd, Acme Township, MI
May 21st, 9:00 a.m. – 4:00 p.m.
- Yakama Nation, Washington Listening Session – Legends Casino and Hotel, 580 Fort Road, Toppenish WA
June 7th – 11th
- Anchorage, Alaska – CONSULTATION – Date and Location TBD
June 16th, 10:00 a.m. – 4:00 p.m.
- North Dakota/South Dakota Listening Session – North Dakota Heritage Center, Bismarck, ND
June 23rd, 5:00 p.m. – 9:00 p.m.
- Women are Sacred Conference Listening Session – Intercontinental Saint Paul Riverfront Hotel, 11 E. Kellogg Boulevard, St. Paul, MN
July 7th, 9:00 a.m. – 4:00 p.m.
- Billings, Montana - CONSULTATION – Double Tree Hotel, 27 N 27th, Billings, MT
The members of the task force are:
- Katharine Sullivan, Principal Deputy Assistant Attorney General, Office of Justice Programs, designee for the Attorney General;
- Tara Sweeney, Assistant Secretary for Indian Affairs, designee for the Secretary of the Interior;
- Terry Wade, Executive Assistant Director, Criminal, Cyber, Response and Services Branch, Federal Bureau of Investigation;
- Laura Rogers, Acting Director, Office on Violence Against Women;
- Charles Addington, Deputy Bureau Director, Bureau of Indian Affairs, Office of Justice Services;
- Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chair of the Native American Issues Subcommittee of the Attorney General’s Advisory Committee; and
- Jean Hovland, Deputy Assistant Secretary for Native American Affairs and Commissioner, Administration for Native Americans, Department of Health and Human Services.
Marcia Good of the Department of Justice serves as the Executive Director of the task force. The task force will present a progress report to the President by Nov. 26, 2020, and a final report detailing its activities and accomplishments by Nov. 26, 2021.
NOTE: All sessions will be open to the public and the press unless otherwise designated. As a general rule, each consultation and listening session will include a task force media availability. Opening remarks will be open for audio and visual recording. However, the duration of the testimony by participants will be recordable by pen and pad only.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the Department of Justice at www.Justice.gov/Celebrating150Years. 2020 also marks 171st anniversary of the Department of the Interior. Learn more about the history of DOI at www.doi.gov/history/.
Joint Statement from DOJ, DOS, DOD, DHS, ODNI, FBI, NSA, and CISA on Preparations for Super TuesdayRead the Press Release
U.S. Attorney General William P. Barr, Secretary of State Mike Pompeo, Secretary of Defense Mark Esper, Acting Secretary of Homeland Security Chad Wolf, Acting Director of National Intelligence Richard Grenell, Federal Bureau of Investigation Director Christopher Wray, U.S. Cyber Command Commander and National Security Agency Director Gen. Paul Nakasone, and Cybersecurity and Infrastructure Security Agency Director Christopher Krebs today released the following joint statement:
“Tomorrow, millions of voters in more than a dozen states and territories will cast their votes in presidential primaries. ‘Super Tuesday’ will see more Americans head to the polls than any other day of the primary season. We continue to work with all 50 states, U.S. territories, local officials, political parties and private sector partners to keep elections free from foreign interference.
“Americans must also remain aware that foreign actors continue to try to influence public sentiment and shape voter perceptions. They spread false information and propaganda about political processes and candidates on social media in hopes to cause confusion and create doubt in our system. We remain alert and ready to respond to any efforts to disrupt the 2020 elections. We continue to make it clear to foreign actors that any effort to undermine our democratic processes will be met with sharp consequences.
“The level of coordination and communication between the federal government and state, local and private sector partners is stronger than it’s ever been. Our Departments and Agencies are working together in an unprecedented level of commitment and effort to protect our elections and to counter malign foreign influence, but voters have a role to play too.
“We encourage all voters going to the polls to check your voter registration and know ahead of time when to vote, where to vote, what’s on your ballot, and whether your state requires identification. Your state or local election official’s office is the most trusted source for election material. A well-informed and vigilant republic is the best defense against disinformation.”
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.
Colorado Man Sentenced to 83 Months in Prison for Role in $7.2 Million Biodiesel Tax Credit SchemeRead the Press Release
A Colorado resident was sentenced to 83 months in prison on Friday for his role in a biodiesel tax credit fraud scheme, 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, Matthew Taylor and his coconspirators defrauded the United States by filing false claims for tax credits under a federal program that encourages production and use of renewable fuels. They created a fake company, Shintan Inc. (Shintan), that purported to be in the business of creating renewable fuels. From 2010 to 2013, the coconspirators then sought and obtained from the Internal Revenue Service (IRS) over $7.2 million in tax credits for renewable fuel produced, of which Taylor personally received $4.5 million. In fact, Shintan produced no qualifying renewable fuel. To avoid detection, Taylor and coconspirators transferred the fraudulently obtained funds through a series of bank accounts belonging to Shintan and other shell companies.
“Filing false renewable fuel tax credit claims is not just a crime against the IRS but a crime against all taxpaying citizens," said Andy Tsui, IRS--Criminal Investigation Special Agent in Charge. "Those engaged in this fraud should stop in their tracks and look at the consequences which include being sent to prison as a convicted felon and paying back all the taxes owed plus steep penalties and interest.”
“Friday’s sentencing shows the severe consequences for those who try to profit by defrauding renewable fuels programs,” said Lance Ehrig, Acting Special Agent in Charge of the EPA’s criminal enforcement program in Colorado. “EPA and our law enforcement partners are committed to holding accountable those who seek to defraud taxpayers for personal profit.”
On Feb. 27, 2019, Taylor pleaded guilty to one count of conspiracy to defraud the United States, one count of conspiracy to commit money laundering, and one count of money laundering.
In addition to the term of imprisonment imposed, U.S. District Chief Judge Philip A. Brimmer ordered Taylor to serve four years of supervised release and to pay approximately $7.2 million in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and Environmental Protection Agency-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sarah A. Kiewlicz and Stephen K. Moulton of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Justice Department Sues Caroline County, Virginia Commissioner of the Revenue for Disability DiscriminationRead the Press Release
The Justice Department filed a lawsuit today alleging that the Caroline County Commissioner of the Revenue in Bowling Green, Virginia, fired a former Master Deputy Commissioner of the Revenue on the basis of her disability, a respiratory impairment, in violation of Title I of the Americans with Disabilities Act (ADA).
The Commissioner of the Revenue allegedly also failed to provide reasonable accommodations for this qualified employee with a disability, as required by Title I of the ADA. According to the complaint, the employee, who had worked for the Commissioner of the Revenue since 1991, needed reasonable accommodations because of her physical impairments, which cause shortness of breath and hoarseness. The lawsuit alleges that instead of providing these reasonable accommodations, the Commissioner of the Revenue terminated the employee.
Title I of the ADA prohibits employers from discriminating against individuals on the basis of disability in employment. These prohibitions include failing to provide reasonable accommodations if the accommodation does not pose an undue hardship to the employer. Reasonable accommodations include acquiring equipment or devices, among other things.
“The Justice Department is committed to enforcing the rights of qualified individuals with disabilities to earn a living and serve their communities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “Nearly 30 years after the ADA was signed into law, every qualified individual with a disability who wants to work should be able to do so without fear of discrimination. It is past time for every covered employer to comply with the law by providing reasonable accommodations for qualified applicants and employees with disabilities if the accommodation wouldn’t pose an undue hardship.”
This matter was based on a referral from the Equal Employment Opportunity Commission’s Norfolk Local Office, which completed the initial investigation of the facts. Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
NOTE: The complaint can be found here.
Executive Office for Immigration Review Proposes Rule on FeesRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) submitted to the Federal Register for publication a notice of proposed rulemaking related to fees the agency last raised more than 30 years ago. The fees included are related to filings for appeals to the Board of Immigration Appeals (BIA), applications for suspension of deportation or cancellation of removal, and motions to reopen or reconsider before the immigration courts or the BIA.
The Office of Management and Budget, in its 1993 revision of Circular No. A-25, instructs agencies to conduct biennial reviews of fees. Federal law similarly requires each agency’s Chief Financial Officer to review agency fees biennially. Despite these instructions, it has been 33 years since EOIR last conducted a thorough review of the costs and appropriateness of its fee-based filings.
Following a comprehensive analysis, EOIR identified a need to avoid nearly $45 million dollars in taxpayer subsidization for the fee-based filings by proposing the fee increases. "The proposed fee increases are marginal in terms of inflation-adjusted dollars and would mitigate the significant taxpayer subsidization of these forms and motions. EOIR is long past due for a review of its fee-based filings, especially as its caseload and costs have increased substantially since 1986," said James McHenry, EOIR Director.
The proposed rule would not affect immigration judges’ and the BIA’s discretionary authority to waive a fee upon a showing that the filing party is unable to pay.
The rule proposes the following fee increases:
- Increase the fee for Form EOIR-26 from $110 to $975.
- Increase the fee for Form EOIR-29 from $110 to $705.
- Increase the fee for Form EOIR-40 from $100 to $305.
- Increase the fee for Form EOIR-42A from $100 to $305.
- Increase the fee for Form EOIR-42B from $100 to $360.
- Increase the fee for Form EOIR-45 from $110 to $675.
- Increase the fee for filing a motion to reopen or reconsider with the immigration court from $110 to $145.
- Increase the fee for filing a motion to reopen or reconsider with the BIA from $110 to $895.
— EOIR —
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. EOIR’s mission is to adjudicate immigration cases by fairly, expeditiously, and uniformly interpreting and administering the Nation’s immigration laws. Under delegated authority from the Attorney General, EOIR conducts immigration court proceedings, appellate reviews, and administrative hearings. EOIR is committed to ensuring fairness in all cases it adjudicates.
Dual U.S.-Mexican Citizen Arrested for Violations of the Kingpin ActRead the Press Release
A dual U.S.-Mexican citizen had her initial appearance in federal court in the District of Columbia Wednesday on charges related to her alleged involvement in five business entities designated by the Department of Treasury’s Office of Foreign Asset Control (OFAC) as providing material support to the international narcotics trafficking activities of the Mexican narcotics trafficking organization known as the Cartel de Jalisco Nueva Generacion (CJNG).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge William Bodner of the Drug Enforcement Administration’s (DEA) Los Angeles Field Division made the announcement.
Jessica Johanna Oseguera Gonzalez, known as “La Negra,” 33, who was residing in Guadalajara, Mexico, was arrested in Washington, D.C. Wednesday pursuant to a warrant stemming from a Feb. 13, 2020, indictment. The charges were unsealed earlier today and she remains in U.S. custody. Her detention hearing is on Monday before U.S. Magistrate Judge Robin M. Meriweather in the District of Columbia.
The five-count indictment alleges that Oseguera Gonzalez, engaged in transactions or dealings in property or interests in property with five business entities, which have been designated by OFAC as Specially Designated Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act. The businesses are alleged to provide financial support to, and are subject to the control of, the CJNG. As a result, U.S. persons are generally prohibited from engaging in transactions with them.
The indictment alleges that Oseguera Gonzalez continued her involvement with J&P Advertising S.A. de C.V., JJGON S.P.R. de R.L. de C.V., Las Flores Cabanas, Mizu Sushi Lounge and Operadora Los Famosas S.A. de C.V., and Onze Black, after their designations by OFAC on Sept. 17, 2015.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DEA’s Los Angeles Field Division led the investigation in conjunction with the Department of Treasury’s Office of Foreign Asset Control. Assistant Deputy Chief Anthony Nardozzi, and Trial Attorneys Brett Reynolds, Kaitlin Sahni, and Cole Radovich of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Files Statement of Interest Defending Photographer on Free Speech ClaimRead the Press Release
The Department of Justice today filed a Statement of Interest in federal court in Kentucky, explaining that a Louisville/Jefferson County Metro Government law, which requires a photographer to photograph same-sex weddings in violation of her religious objections, violates the U.S. Constitution. The United States’ brief explains that the photographer, Chelsey Nelson, is likely to succeed on her claim that requiring her to photograph weddings against her conscience constitutes government-compelled speech that violates the Free Speech Clause of the First Amendment.
“The First Amendment forbids the government from forcing someone to speak in a manner that violates individual conscience,” said Eric Dreiband, Assistant Attorney General for the Civil Rights Division. “The U.S. Department of Justice will continue to protect the right of all persons to exercise their constitutional right to speech and expression.”
The law at issue prohibits businesses from discriminating on various bases, including on sexual orientation. Ms. Nelson brought suit against the Louisville/Jefferson County Metro Government and several of its officials, and sought a preliminary injunction preventing the application of this law to require her to photograph same-sex weddings.
The United States’ brief explains that Ms. Nelson is likely to succeed on her Free Speech claim. The Free Speech Clause prohibits the government from requiring people to engage in speech supporting or promoting someone else’s expressive event, such as a wedding ceremony. The brief observes that “[w]eddings are sacred rites in the religious realm and profoundly symbolic ceremonies in the secular one” and thus are plainly “expressive activities” under the Supreme Court’s Free Speech cases. Moreover, the brief explains, photography is an expressive art form, and wedding photography in particular seeks to celebrate and honor the union being photographed. Forcing a photographer, against her conscience, to express her support for a wedding that her faith opposes violates the Constitution.
In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together Department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.
The Department of Justice Creates Section Dedicated to Denaturalization CasesRead the Press Release
The Department of Justice today announced the creation of a section dedicated to investigating and litigating revocation of naturalization. The Denaturalization Section will join the existing sections within the Civil Division’s Office of Immigration Litigation—the District Court Section and the Appellate Section. This move underscores the Department’s commitment to bring justice to terrorists, war criminals, sex offenders, and other fraudsters who illegally obtained naturalization.
While the Office of Immigration Litigation already has achieved great success in the denaturalization cases it has brought, winning 95 percent of the time, the growing number of referrals anticipated from law enforcement agencies motivated the creation of a standalone section dedicated to this important work.
“When a terrorist or sex offender becomes a U.S. citizen under false pretenses, it is an affront to our system—and it is especially offensive to those who fall victim to these criminals,” said Assistant Attorney General Jody Hunt. “The Denaturalization Section will further the Department’s efforts to pursue those who unlawfully obtained citizenship status and ensure that they are held accountable for their fraudulent conduct.”
Denaturalization cases require the government to show that a defendant’s naturalization was “illegally procured” or “procured by concealment of a material fact or by willful misrepresentation . . . .” 8 U.S.C. § 1451. Civil denaturalization cases have no statute of limitations, and the Department has successfully denaturalized numerous categories of individuals who have illegally obtained citizenship, including terrorists and other national security threats, war criminals, human rights violators, sex offenders, and other fraudsters.
National Security/Terrorism
- U.S. v. al Dahab, No. 15-cv-5414 (D.D.C.). Successful civil denaturalization of individual convicted of terrorism offenses in Egypt who admitted recruiting for al Qaeda within the United States and running a communications hub in California for the Egyptian Islamic Jihad terrorist organization. The defendant was denaturalized while in Egypt, stripped of his passport, and prevented from returning to the United States.
- U.S. v. Kariye, No. 15-cv-1343 (D. Or.). Successful civil denaturalization of individual who received military training in a jihadist training camp in Afghanistan; coordinated with Osama bin Laden and other known terrorist leaders; and was associated with terrorist organizations including Makhtab Al-Khidamat, a U.S. government-designated terrorist organization and pre-cursor to al Qaeda. The Office of Immigration Litigation coordinated a settlement that facilitated the defendant’s self-deportation to Somaliland despite his presence on No Fly List.
- U.S. v. Hamed, No. 2:18-cv-0424 (W.D. Mo.). Successful civil denaturalization of an individual convicted of conspiring to illegally transfer more than $1 million to Iraq in violation of federal sanctions and of obstructing internal revenue laws with respect to tax-exempt charities. In furtherance of those crimes, the defendant regularly authorized and transferred tax-exempt funds from a non-profit organization’s accounts in the United States to an account in Jordan controlled by a Specially Designated Global Terrorist.
War Crimes & Human Rights Violators
- U.S. v. Dzeko, No. 18-cv-759 (D.D.C.). Successful civil denaturalization of an individual who was convicted in Bosnia of executing eight unarmed civilians and POWs during the Balkans conflict. Defendant was denaturalized while incarcerated in a Bosnian prison, and thereby prevented from returning to the United States upon his release.
- U.S. v. Yetisen, No. 18-cv-570 (D. Or.). Successful civil denaturalization of an individual who pled guilty in Bosnia of executing six unarmed civilians and POWs during the Balkans conflict.
Sex Offenders
- U.S. v. Omopariola (N.D. Tex.). Successful civil denaturalization of an individual engaged in sexual contact with a 7-year-old family member.
- U.S. v. Lopez, No. 18-cv-00527 (D. Md.). Successful civil denaturalization of an individual who sexually abused a minor victim for multiple years.
- U.S. v. Arizmendi, No. 4:15-cv-454 (S.D. Tex.). Successful civil denaturalization of an individual convicted of multiple sex offenses, including as to students. The defendant was denaturalized while incarcerated in a Mexican prison related to a sex offense, and thereby prevented from returning to the United States upon his release.
Fraudsters & Other Criminals
- U.S. v. Mondino, No. 18-cv-21840 (S.D. Fla.). Successful civil denaturalization of an individual convicted of conspiring to defraud the U.S. Export-Import Bank of more than $24 million, resulting in more than $12 million in unrecovered losses. Because of the denaturalization proceedings, the defendant self-deported.
- U.S. v. Warsame cases, Nos. 17-cv-5023, -5024, -5025, -5027 (D. Minn.). Successful civil denaturalizations of four individuals who fraudulently claimed to be a family to gain admission to the United States through the Diversity Immigrant Visa Program.
Statement from Solicitor General Noel Francisco on the Passing of Former Deputy Solicitor General Lawrence WallaceRead the Press Release
Today, Solicitor General Noel Francisco issued the following statement on the passing of former Deputy Solicitor General Lawrence Wallace:
“My colleagues and I are deeply saddened at the recent passing of former Deputy Solicitor General Lawrence Wallace. A native of Syracuse, New York, Larry Wallace graduated from Syracuse University, served in the Air Force, and attended Columbia Law School through the GI Bill. He was editor-in-chief of the Columbia Law Review and graduated in the Class of 1959 alongside future Justice Ruth Bader Ginsburg. He went on to serve as a law clerk to Justice Hugo Black, practice at a firm in Washington, and teach at Duke University Law School.
In 1968, Larry Wallace joined the Office of the Solicitor General. Over the next 35 years, he argued before the Supreme Court 157 times – more than any other lawyer of the twentieth century. He represented the United States in each of those cases. As Deputy Solicitor General for more than three decades, he was admired as an advocate, cherished as a colleague, and respected for his high standards and professionalism. His candor and integrity remain a model for this office and for all who have the privilege to represent the United States.
In addition to being a superb lawyer, Larry Wallace was a talented musician, a generous friend, and a proud veteran. He often said that he felt a deep sense of responsibility when arguing cases on behalf of the government. He discharged that responsibility with skill and distinction throughout his long career. His devoted service to this office will never be forgotten. My colleagues and I extend our condolences to his family and join in mourning his loss.”
Justice Department Files Amicus Brief Explaining that Harvard’s Race-Based Admissions Process Violates Federal Civil-Rights LawRead the Press Release
The Department of Justice today filed an amicus brief in Students for Fair Admissions, Inc. v. President and Fellows of Harvard College in the United States Court of Appeals for the First Circuit. In its amicus brief, the United States explains that Harvard’s expansive use of race in its admissions process violates federal civil-rights law and Supreme Court precedent.
“Race discrimination hurts people and is never benign,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Unconstitutionally partitioning Americans into racial and ethnic blocs harms all involved by fostering stereotypes, bitterness, and division among the American people. The Department of Justice will continue to fight against illegal race discrimination.”
As a condition of receiving millions of dollars in taxpayer funding every year, Harvard expressly agrees to comply with Title VI of the Civil Rights Act of 1964, a cornerstone civil-rights law that prohibits discrimination on the basis of race, color, or national origin in programs and activities that receive federal financial assistance. In 2017, the Department opened a Title VI investigation into Harvard’s admissions process after a complaint was filed by more than 60 Asian-American organizations. That investigation remains underway.
In this case, Students for Fair Admissions, an organization of students and parents, alleged that Harvard College intentionally discriminates against Asian-American applicants when making admissions decisions, in violation of Title VI. The district judge denied Harvard’s various attempts to dismiss the lawsuit, and the case proceeded to a three-week trial in the fall of 2018.
Although the Supreme Court has held that colleges receiving federal funds may consider applicants’ race in certain limited circumstances, the district court’s factual findings demonstrated that Harvard’s use of race is anything but limited. The district court concluded that “more than one third of the admitted Hispanics and more than half of the admitted African Americans, would most likely not be admitted in the absence of Harvard’s race-conscious admissions process.” And these race-based bonuses come at a significant cost to Asian-American applicants, who collectively suffer a substantial penalty under Harvard’s race-based admissions regime. Nevertheless, the district court concluded that Harvard’s use of race in the admissions process did not violate federal law or Supreme Court precedent.
The United States’ amicus brief explains that the evidence at trial showed “that Harvard actively engages in racial balancing that Supreme Court precedent flatly forbids.” The evidence also demonstrated that Harvard’s admissions officers consistently score Asian American applicants lower on the so-called “personal rating.” “In other words,” the brief explains, “Harvard’s admissions officers tended to evaluate Asian Americans, as compared to members of other racial groups, as having less integrity, being less confident, constituting less-qualified leaders, and so on.” “That disparity,” the brief points out, “is undisputed, and unexplained.” For these and other reasons, the United States urged the appellate court to reverse the district court’s judgment.
Executive Office for Immigration Review Expands Automated Case Information ChannelsRead the Press Release
The Executive Office for Immigration Review (EOIR) today announced the addition of an Internet option for checking case information. The new automated case information application is available on EOIR’s website, and is currently available in English and Spanish. This is another tool for parties with business before the agency, and the automated case information hotline at 800-898-7180 (TDD 800-828-1120) continues to be available.
The automated case information application allows users to receive the most recent information about a case after inputting a unique alien registration number. Available information includes next scheduled hearings, decision information at the immigration court and Board of Immigration Appeals (BIA) levels, and court and BIA contact information. Immigration courts’ operating statuses are also included.
To access the new automated case information application, visit: https://icor.eoir.justice.gov/en/.
Attorney General William P. Barr Names Michael Carvajal Director of the Bureau of PrisonsRead the Press Release
Attorney General William P. Barr today announced that Michael Carvajal will serve as the Director of the Bureau of Prisons (BOP). Current BOP Director Dr. Kathleen Hawk Sawyer will remain as a Senior Advisor to assist him with the transition.
“Today, I am appointing Michael Carvajal Director of the Bureau of Prisons. Michael’s nearly 30 years of experience with the Bureau will serve him exceptionally well as he takes on these new responsibilities, and I am confident he will do an outstanding job as director. I want to thank Kathy Hawk Sawyer for her exceptional leadership and helping us identify a highly qualified individual to serve as permanent director. I am grateful for Kathy’s service and that she has agreed to stay on as a senior advisor to assist the Bureau with this transition.”
Carvajal, a U.S. Army veteran, began his employment with the Bureau of Prisons in 1992 as a correctional officer. Since then, he took on positions of increasing responsibility for the Bureau, including Employee Development Specialist and Lieutenant at FCI Three Rivers; Captain at FCI Texarkana (TX) and USP Leavenworth (KS); Correctional Services Administrator for the South Central Region (TX); and Associate Warden at FCC Beaumont. He also served as Warden at FCI Texarkana (TX), and Complex Warden for FCC Pollock (LA), before being promoted to Regional Director for the Northeast Region in July 2016.
As Assistant Director for Correctional Programs since August of 2018, Carvajal was responsible for a wide variety of areas, including designations and sentence computation, the Witness Security and Victim-Witness Programs, security and emergency planning, inmate transportation, and unit and case management operations, and the agency's intelligence efforts that require coordination with law enforcement and counter terrorism agencies around the country.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Leader of Guatemalan Drug Trafficking Organization Sentenced to 23 Years in PrisonRead the Press Release
A leader of a Guatemalan drug trafficking organization was sentenced today to 23 years in prison for his participation in an international drug trafficking conspiracy, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Wendy Woolcock of the U.S. Drug Enforcement Administration (DEA) Special Operations Division.
Waldemar Lorenzana-Lima was sentenced by U.S. District Judge Colleen Kollar-Kotelly in the District of Columbia following an Aug. 18, 2014, guilty plea to his participation in an international drug trafficking conspiracy. The court also ordered Lorenzana-Lima to forfeit $50,949,000.
As Lorenzana-Lima admitted in connection with his guilty plea, from March 1996 to November 2007, Lorenzana-Lima was a member of a drug trafficking organization that would receive, inventory, and store large quantities of cocaine from Colombia at Lorenzana-Lima’s properties in Guatemala, for eventual importation into Mexico and the United States. The court concluded at sentencing that Lorenzana-Lima’s conduct qualified him as an “organizer or leader” of the drug trafficking organization within the meaning of the applicable sentencing guidelines.
On April 27, 2010, the Department of Treasury’s Office of Foreign Asset Control designated Lorenzana-Lima and his sons, Eliu Lorenzana-Cordon and Waldemar Lorenzana-Cordon, as specially designated narcotics traffickers. Pursuant to the Foreign Narcotics Kingpin Designation Act, this designation applied as a result of their significant roles in international narcotics trafficking, their significant ties to the Sinaloa Cartel, and their use of family business and agricultural holdings in Guatemala as a front to aid in the northbound movement of illegal drugs through Central America.
The DEA Special Operations Division’s Bilateral Investigations Unit and Guatemala City Country Office led the investigation, which was supported by the Organized Crime Drug Enforcement Task Force program and the Criminal Division’s Office of International Affairs. In particular, the Justice Department wishes to convey its gratitude to the government of Guatemala for its steadfast commitment, collaboration, and assistance in the investigation, extradition, and prosecution of this case.
Trial Attorneys Brett Reynolds and Anthony Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section and Trial Attorney Emily Cohen of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Colorado Tax Evader Indicted for Not Reporting to Serve Five Year Prison SentenceRead the Press Release
A federal grand jury in Denver, Colorado, returned an indictment yesterday charging Lawrence Martin Birk with failing to surrender to serve his sentence, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Birk was convicted by a jury in July 2019 of tax evasion. According to court documents and evidence presented at trial, Birk founded a sole proprietorship, Tarryall River Log Homes LLC, which sold and built log homes. Although the company was profitable, Birk did not voluntarily pay federal taxes on its income. When the Internal Revenue Service (IRS) began collection efforts, Birk hired a tax firm to prepare eight years’ worth of delinquent tax returns, but concealed from the firm $400,000 of retirement distributions. Even after filing returns, Birk still did not pay what the returns acknowledged he owed in taxes. Instead, he sent the IRS threatening correspondence and sought to impede its efforts to seize money from his bank accounts. He did not file returns or make any tax payments for 2006 through 2018.
Based on this conduct, on Oct. 30, 2019, U.S. District Judge Robert E. Blackburn sentenced Birk to 60 months in prison, to serve three years of supervised release, and to pay restitution to the IRS in the amount of $1,858,826.
According to today’s indictment, although Birk was ordered to report to prison in November 2019 to serve his sentence, he fled and remained a fugitive until his recent arrest. If convicted, Birk faces up to five years’ imprisonment for his failure to appear, in addition to the 60 month term of imprisonment previously imposed.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman commended the IRS special agents and United States Marshall Service who conducted the investigation, as well as Department of Justice Trial Attorneys Elizabeth C. Hadden and Christopher Magnani, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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.
DEA Announces Launch of Operation Crystal ShieldRead the Press Release
Attorney General William P. Barr and Drug Enforcement Administration Acting Administrator Uttam Dhillon today announced that the DEA will direct enforcement resources to methamphetamine “transportation hubs” — areas where methamphetamine is often trafficked in bulk and then distributed across the country. While continuing to focus on stopping drugs being smuggled across the border, DEA’s Operation Crystal Shield will ramp up enforcement to block their further distribution into America’s neighborhoods.
DEA has identified eight major methamphetamine transportation hubs where these efforts will be concentrated: Atlanta, Dallas, El Paso, Houston, Los Angeles, New Orleans, Phoenix, and St. Louis. Together, these DEA Field Divisions accounted for more than 75 percent of methamphetamine seized in the U.S. in 2019.
“While meth is not a new drug, it has seen a troubling resurgence over the past few years,” said Attorney General William P. Barr. “Manufactured mostly in Mexican labs and smuggled into the United States across the southwest border, meth is a drug that is both cheap and potent, creating a deadly combination. Just as the Trump Administration has acted swiftly to stem the tide of opioid fatalities, it will use every weapon in its arsenal – such as the DEA’s Operation Crystal Shield - to stop dangerous methamphetamine from reaching American neighborhoods and harming American families.”
Operation Crystal Shield builds on existing DEA initiatives that target major drug trafficking networks, including the Mexican cartels that are responsible for the overwhelming majority of methamphetamine trafficked into and within the United States. From FY 2017 to FY 2019, DEA domestic seizures of methamphetamine increased 127 percent from 49,507 pounds to 112,146 pounds. During the same time frame, the number of DEA arrests related to methamphetamine rose nearly twenty percent.
“For decades, methamphetamine has been a leading cause of violence and addiction – a drug threat that has never gone away,” said Acting Administrator Dhillon. “With a 22 percent increase in methamphetamine-related overdose deaths, now is the time to act, and DEA is leading the way with a surge of interdiction efforts and resources, targeting regional transportation hubs throughout the United States. By reducing the supply of meth, we reduce the violence, addiction, and death it spreads.”
Virtually all methamphetamine in the United States comes through major ports of entry along the Southwest Border and is transported by tractor trailers and personal vehicles along the nation’s highways to major transfer centers around the country. It is often found in poly-drug loads, alongside cocaine, heroin, and fentanyl.
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.
U.S. Trustee Program Ready to Implement the Small Business Reorganization Act of 2019Read the Press Release
The Department of Justice’s U.S. Trustee Program (USTP) is fully prepared to implement the Small Business Reorganization Act of 2019 (SBRA), which goes into effect today. The SBRA was passed by Congress and signed into law by President Trump last August.
“The SBRA represents an innovative effort to expedite and reduce the cost of bankruptcy for small business debtors to reorganize their debts and save their businesses,” said USTP Director Cliff White. “The USTP has spent the past six months preparing for its implementation and is committed to ensuring that the law is carried out as intended.”
Under the SBRA, small business debtors―defined as entities with less than about $2.7 million in debts that also meet other criteria―may voluntarily elect to proceed under a new subchapter V of chapter 11 of the Bankruptcy Code. Among other things, subchapter V imposes shorter deadlines for completing the bankruptcy process, allows for greater flexibility in negotiating restructuring plans with creditors, and provides for a private trustee who will work with the small business debtor and its creditors to facilitate the development of a consensual plan of reorganization.
According to Director White, the USTP’s role in these small business cases is to “appoint private trustees with business experience to serve as subchapter V trustees, minimize the need for costly litigation, and ensure compliance with the Bankruptcy Code and the expeditious resolution of cases.”
As part of the USTP’s intensive preparation to implement the SBRA, U.S. Trustees conducted a nationwide search for qualified candidates to serve as subchapter V trustees, ultimately selecting about 250 candidates from more than 3,000 applications. These trustees offer a diverse set of business, accounting, turn-around management, and legal skills. In addition, the USTP developed a comprehensive manual and handbook to guide staff and subchapter V trustees in carrying out their new SBRA responsibilities; provided extensive training to staff, subchapter V trustees, bankruptcy professionals, and others interested in the new law; and coordinated with the bankruptcy courts on administrative issues to ensure a successful implementation.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 90 field office locations covering 88 judicial districts. Learn more about the Program at https://www.justice.gov/ust.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Requires Divestiture in Order for Liqui-Box to Proceed with Acquisition of Plastics Division of DS SmithRead the Press Release
The Department of Justice announced today that it is requiring Olympus Growth Fund VI L.P. (Olympus Fund VI), its portfolio company Liqui-Box Inc. (Liqui-Box), and DS Smith plc (DS Smith) to divest all of DS Smith’s dairy, post-mix, smoothie, and wine bag-in-box (BiB) product lines in the United States in order for Liqui-Box to proceed with its proposed acquisition of the Plastics Division of DS Smith. Without the divestiture, the proposed acquisition would eliminate competition between two of the primary suppliers of dairy, post-mix, smoothie, and wine BiBs in the United States.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
“The merger, as originally structured, would have eliminated competition for packaging products that dairies, soft-drink manufacturers, and other food producers rely on to preserve and safely transport liquids to stores, restaurants, and other food processors,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that purchasers of BiBs continue to benefit from vigorous competition in the development, manufacture, and sale of these products.”
BiBs, flexible packaging consisting of an engineered plastic bag and attached plastic fitment, are used to store, protect, transport, and dispense various edible liquids. According to the Justice Department’s complaint, Liqui-Box and DS Smith, under its Rapak brand, are two of only three significant U.S. suppliers of dairy, post-mix (e.g., soda syrups and other beverage concentrates), and smoothie BiBs. The companies are also two of only four U.S. suppliers of BiBs that hold and dispense the wine in boxed wines. The Justice Department’s complaint alleges that competition between Liqui-Box and DS Smith for these BiBs has resulted in lower prices, higher quality, and better service, and has fostered innovation leading to the development of new BiB products. According to the complaint, the combination of Liqui-Box and DS Smith’s Plastics Division would eliminate this competition, and likely lead to increased prices, lower quality and service, and diminished investment in research and development.
Under the terms of the proposed settlement, Liqui-Box must divest all of DS Smith’s BiB product lines that overlap with product lines offered by Liqui-Box in the United States, including those for dairy, post-mix, smoothie, and wine BiBs, as well as production facilities in Indianapolis, Indiana, and Union City, California, the Rapak brand, and other production equipment and assets, to TriMas Corporation (TriMas), or an alternate acquirer approved by the United States. TriMas, a Michigan-based manufacturer operating in the consumer products, aerospace, and industrial end markets, already sells a variety of packaging products for the health, beauty and home care, beverage, and industrial markets.
Olympus Fund VI is a Delaware limited partnership with headquarters in Stamford, Connecticut. Olympus Fund VI is a fund of Olympus Partners, which, in 2018, had approximately $8.5 billion total capital under management between its different funds, with Olympus Fund VI comprising approximately $2.3 billion of that total.
Liqui-Box, a portfolio company of Olympus Fund VI, is a Delaware corporation with headquarters in Richmond, Virginia. In 2018, Liqui-Box had total sales of $177 million, including approximately $123 million in sales in the United States.
DS Smith is a United Kingdom public limited company with headquarters in London, England. DS Smith’s Plastics Division is headquartered in Romeoville, Illinois. In 2018, DS Smith’s Plastics Division had total sales of $479 million, including approximately $137 million in sales in the United States.
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.
John Leonard Cruz Sentenced to Federal Prison for Felon in Possession of Firearm and AmmunitionRead the Press Release
Hagatña, Guam - SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JOHN LEONARD CRUZ, age 49, from Merizo, was sentenced in the District Court of Guam to 24 months imprisonment, On August 22, 2019, Cruz entered a guilty plea to Felon in Possession of Firearm and Ammunition, in violation of Title 18, United States Code, Section 922(g)(1). The Court also ordered three years of supervised release, twenty-five hours of community service, and the payment of a mandatory $100.00 special assessment fee.
On January 22, 2004, Cruz was convicted in the Superior Court of Guam for Possession of a Schedule II Controlled Substance (As a Third Degree Felony). As a convicted felon, Cruz was prohibited from possessing a firearm and ammunition. On August 22, 2018, Cruz knowingly possessed a 12 gauge shotgun and ammunition while hunting. Cruz did not have a valid firearm license. He told Guam conservation officers that he received the shotgun from someone so that he could go hunting.
U.S. Attorney Anderson states, “Section 922(g) of Title 18 lists a variety of instances where the possession of a firearm or ammunition is prohibited. The possession of even one round of ammunition can result in a substantial term of imprisonment. Importantly, federal firearm laws do not provide an exception for felons to possess these items for sporting purposes. Prohibited persons are therefore encouraged to avoid any circumstances that put them at risk of federal prosecution.”
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The United States Attorney’s Office is also initiating similar prosecutions as part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Guam Department of Agriculture, Law Enforcement Section. This case was prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney for the District of Guam.
Michigan Business Owner Pleads Guilty to Tax Evasion and Conspiring to Steal Reports from City Police DepartmentRead the Press Release
A Metamora, Michigan, business owner pleaded guilty today to tax evasion and conspiring to steal from an organization receiving federal funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents and statements made in court, Anthony Sereno co-owned and operated several businesses in Michigan, including USA Direct LLC (USA Direct), which advertised on behalf of health care providers and solicited individuals for medical and personal injury legal services. During 2013, Sereno diverted funds from USA Direct’s business account for his personal use, but did not include those funds on his individual tax return. He also did not report on that return more than $280,000 in income he directly received from USA Direct.
In 2013, Sereno directed funds from USA Direct’s business account to an intermediary, who used the funds to purchase Michigan traffic crash reports stolen from the Flint Police Department. From 2014 through 2017, Sereno also conspired with Carol Almeranti and Karen Miller to obtain stolen police reports from the Detroit Police Department. Almeranti and Miller previously pleaded guilty to conspiracy charges, and are awaiting sentencing.
U.S. District Court Judge Stephanie Dawkins Davis scheduled Sereno’s sentencing for Aug. 18, 2020. At sentencing, Sereno faces a maximum of five years in prison for each offense. He also faces a period of supervised release, restitution, and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation and the FBI, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald 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.
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 Settles with Staffing Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with Chancery Staffing Solutions LLC (Chancery Staffing), a legal staffing company headquartered in New York, New York, also known as TransPerfect Staffing Solutions (TransPerfect Staffing). The settlement is intended to resolve the Department’s claims that the staffing company violated the Immigration and Nationality Act (INA) when, at a law firm client’s directive, it screened out work authorized non-U.S. citizens and U.S. citizens with dual citizenship from a document review project without a lawful basis.
“Although there are some circumstances where it is permissible to hire only U.S. citizens, staffing agencies may only implement a client’s request to make citizenship status restrictions in hiring if required by law,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with Chancery Staffing to help ensure its hiring procedures comply with the Immigration and Nationality Act’s protections against citizenship status discrimination.”
In May 2019, the Department filed a lawsuit against Chancery Staffing alleging that from at least April 4, 2017, to at least July 7, 2017, the company (operating under the TransPerfect Staffing name) restricted its recruitment and hiring of attorneys for a document review project to U.S. citizens only, and later, to U.S. citizens without dual citizenship, based on a law firm client’s directive. In a prior investigation of the law firm, the Department found that the firm’s request was based on a misunderstanding of the requirements of the International Traffic in Arms Regulations. Had Chancery Staffing independently assessed the basis for the client’s directive, this instance of citizenship status discrimination may have been avoided.
Pursuant to the settlement agreement, Chancery Staffing will pay a civil penalty of $27,000 and provide back pay to victims who are identified during the term of the settlement agreement. Additionally, Chancery Staffing will train relevant employees about the requirements of the INA’s anti-discrimination provision, and obtain supporting documentation from clients that request a citizenship status restriction when staffing a project to help ensure that any such restriction is lawful.
Under the INA, it is generally unlawful for employers to discriminate in hiring because of citizenship status unless required by a law or government contract. The Department determined that TransPerfect Staffing had no legal basis to discriminate. In light of the settlement, the parties will jointly seek to dismiss the case.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
More information on how employers can avoid unlawful citizenship status discrimination is available here. IER will also be offering a free webinar on March 3, 2020 at 3:30 p.m. Eastern time, on how employers can avoid unlawful discrimination under the INA’s anti-discrimination provision. 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.
Former Michigan Health Care Consultant Pleads Guilty to Fraud and Tax EvasionRead the Press Release
A former health care consultant pleaded guilty today to mail fraud and tax evasion relating to her scheme to be employed under false pretenses as a highly paid health care consultant, 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, Sonja Emery, using several aliases including “Sonja Lee Robinson,” “Sonjalee Emery-Robinson,” and “Sonjalee Emery,” resided in Georgia, New Jersey, New York, and California. From 2011 through 2018, Emery falsely represented her professional status, educational background, and work experience to secure and maintain highly paid consulting positions in the health-care industry. She falsely claimed to have a nursing diploma from a school she never attended. She also falsely claimed to be a Registered Nurse licensed in New York, Georgia, Connecticut, and California and provided employers with licensure numbers that belonged to other people. In fact she never was a Registered Nurse. Emery also falsely told employers she had a Bachelor of Science in Nursing, a Master of Health Administration, a Master in Business Administration, and a Doctor of Philosophy from Emory University and New York University, but Emery never attended those schools or received these degrees.
As a result of these lies, from 2012 through 2018, Emery secured high-level health-care positions. She worked as a Senior Vice President for an Ann Arbor, Michigan healthcare consulting firm earning an annual salary of approximately $285,000; as a consultant for a community health system in Wisconsin earning approximately $267,000; and as a health care consultant for a Massachusetts company that paid her approximately $226,000. From 2015 until her arrest in May of 2018, Emery worked as a senior executive for a county government health services agency in California that paid her a total of approximately $960,000.
During these years, Emery either did not file or late-filed tax returns, despite owing more than $400,000 in taxes. She sought to avoid being detected by providing employers with different names and false social security numbers, by falsely instructing employers that she was “exempt” from taxes, and by supplying an employer with an identification number that did not belong to her.
U.S. District Judge Linda V. Parker scheduled sentencing for June 17, 2020. At sentencing, Emery faces a statutory maximum sentence of 20 years in prison for mail fraud and five years in prison for tax evasion. Emery also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Jeff McLellan and Jack Morgan of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Court in Hammond, Indiana, Enters Permanent Injunction Barring Tax Preparer from Preparing Federal Tax Returns for OthersRead the Press Release
The U.S. District Court for the Northern District of Indiana has issued an order permanently barring Daniel Bewley, a former Hobart and Lake Station, Indiana, tax preparer, from preparing federal tax returns for others, the Justice Department announced today. Bewley consented to the civil injunction order.
According to the complaint, Bewley operated a business that provided tax return preparation services under the names Bewley’s Tax Service and Forward Motion Tax Service. The complaint alleges that Bewley prepared returns that falsely understated the tax due by including false Schedules C that understated the amount of the customer’s income and false Schedules A that contained inflated deductions. The complaint further alleges that Bewley prepared approximately 1,602 tax returns for tax years 2011 through 2014, and that an IRS examination of 208 of those returns determined that 75 percent of the returns falsely understated the amount of tax due.
As set out in the complaint, on Aug. 11, 2017, Bewley pleaded guilty to one count of wire fraud and one count of filing a false tax return in connection with his tax preparation activities, for which he was sentenced to 33 months of imprisonment, and was ordered to serve three years of supervised release and to pay approximately $331,000 in restitution to the United States.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2019. Taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Court Bars Florida Tax Return Preparer and His Business from Preparing Tax ReturnsRead the Press Release
On Feb. 14, 2020, a federal court in Ocala, Florida, entered a permanent injunction against Philip Mott Harris II and his business, 24/7 Tax Services LLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department announced today. The court also ordered that Harris and 24/7 Tax Services LLC disgorge $544,874.56, representing the ill-gotten gains that they received for the preparation of tax returns. The order was signed by Judge James S. Moody of the U.S. District Court for the Middle District of Florida.
The government alleged that the defendants prepared tax returns on which the defendants fabricated businesses and related business income and expenses, claimed improper filing status, and reported false household help income. In the report and recommendation, adopted by Judge Moody, the court found that “over the course of several years, Harris and his other tax return preparers have continually filed returns misrepresenting their customers’ income, deductions, and income tax liability–and have continued to do so even after the United States filed its complaint in this action.” The court further concluded “that injunctive relief is appropriate, and that a more limited injunction will not suffice to prevent the substantial harm that Defendants would likely continue to cause if not permanently enjoined.”
“The Tax Division will use all available enforcement tools to shut down return preparers who claim improper or illegal deductions and credits for their customers,” 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.
Cleveland man pleaded guilty to five armed robberiesRead the Press Release
Amhad Jones, 26, pleaded guilty to five counts of interfering with commerce by robbery and three counts of using a firearm during and in relation to a crime of violence for a series of armed robberies in Cleveland, Ohio last year.
According to court records and Jones’ acknowledgements during the change of plea hearing:
On January 18, 2019, Jones entered the Metro PCS store located at 9312 Harvard Avenue, Cleveland, Ohio. He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee. The employee gave him approximately $900 and Jones fled.
On February 6, 2019, Jones entered the Metro PCS store located at 10959 Kinsman Road, Cleveland, Ohio. He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee. The employee gave him approximately $250 and Jones fled.
On February 13, 2019, Jones entered the Metro PCS store located at 14701 Kinsman Road, Cleveland, Ohio. He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee. The employee gave him approximately $350 and Jones fled.
On April 19, 2019, Jones entered the Metro PCS store located at 14701 Kinsman Road, Cleveland, Ohio. He walked up to the counter, then he pulled out a pistol and brandished it at the employee. The employee gave him approximately $300-$800 and Jones fled.
On April 23, 2019, Jones entered the Metro PCS store located at 9312 Harvard Avenue, Cleveland, Ohio. He stated he wanted to pay his bill, then he pulled out a pistol and brandished it at the employee. The employee, a concealed carry permit holder, retrieved his own pistol and shot Jones three times. Jones received medical attention and was later arrested. A pistol was recovered from Jones.
This prosecution is part of Project Guardian, the Justice Department’s signature initiative to reduce gun violence and enforce federal firearms laws.
This case is also part of Project Safe Neighborhoods, a program that surges federal and local law enforcement resources to communities’ most violent neighborhoods in order to root out offenders and build positive relationships with victims, witnesses and community members.
This case was investigated by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Cuyahoga County Prosecutor’s Crime Strategies Unit, and prosecuted by Assistant U.S. Attorney Kelly L. Galvin.
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Two Executives Indicted in Long-Running Antitrust Conspiracy to Fix Prices for Disk Drive ComponentsRead the Press Release
A federal grand jury returned an indictment against Hitoshi Hashimoto and Hiroyuki Tamura for their role in a global conspiracy to fix prices for suspension assemblies used in hard disk drives, the Department of Justice announced today.
Hashimoto and Tamura, both Japanese citizens, are former top sales executives at NHK Spring Co. Ltd. (NHK Spring), which has pleaded guilty and been sentenced to pay a $28.5 million fine.
The indictment, filed yesterday in the U.S. District Court for the Northern District of California, alleges that, from at least as early as May 2008 and continuing until at least April 2016, Hashimoto and Tamura participated in a conspiracy with their competitors to stabilize, maintain, and fix the prices of suspension assemblies used in hard disk drives. The conspirators accomplished their scheme by, among other things, agreeing to refrain from competing on prices and allocating their respective market shares. The conspirators also exchanged pricing information including anticipated pricing quotes, which they used to inform their negotiations with U.S. and foreign customers that purchased suspension assemblies and produced hard disk drives for sale in, or delivery to, the United States and elsewhere.
“This charge demonstrates that antitrust violations are not just corporate offenses but also crimes by individuals,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “The Antitrust Division is committed to prosecuting culpable senior executives who circumvent the antitrust laws in order to cheat consumers.”
“The FBI, through its International Corruption Unit, is dedicated to ensuring the U.S. market remains free and open,” said Assistant Director Calvin Shivers of the FBI Criminal Investigative Division. “The individuals indicted yesterday tried to cheat the system and unfairly profit at the expense of American consumers. The FBI, with our partners at the United States Postal Service Office of Inspector General and the Department of Justice, disrupted their scheme and now these individuals will face justice.”
“The U.S. Postal Service spends hundreds of millions of dollars every year on supplies and services related to information technology, including computers and associated hardware,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “These indictments send an important message to anyone who might engage in conduct violating the Sherman Antitrust Act. Along with the Department of Justice and our federal law enforcement partners, the U.S. Postal Service Office of Inspector General will continue to aggressively investigate those who would engage in this type of harmful behavior.”
Suspension assemblies are components of hard disk drives, which are used to store information electronically and are incorporated into computers or sold as stand-alone electronic storage devices. Hard disk drives use magnetic recording heads to read from and write onto rapidly spinning disks. Suspension assemblies hold the recording heads in close proximity to the disks and provide the electrical connection from the recording heads to the hard disk drives’ circuitry.
The charge in the indictment carries a maximum penalty of 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Today’s announcement is the result of an ongoing federal antitrust investigation being conducted by the Antitrust Division’s Washington Criminal II Office, the International Corruption Unit of the FBI, and the United States Postal Service Office of Inspector General. Anyone with information in connection with this investigation is urged to call the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.
Cuyahoga Falls man indicted for attempting to use explosives at Cuyahoga Falls High School and making threats to a Kansas elementary schoolRead the Press Release
Allen Martin Kenna, 18, of Cuyahoga Falls, Ohio, was charged in a two-count indictment for Attempted Use of an Explosive Device and Interstate Communication of Threats.
As alleged in the indictment, Kenna is charged with attempting to use an explosive device to damage or destroy buildings and real property associated with Cuyahoga Falls High School. Kenna is also charged with making threatening communications to a Kansas elementary school. Specifically, Kenna is alleged to have notified the Fort Rily Sheriff’s Office that he was holding a hostage inside of the school and that he would injure any person attempting to enter the school in response to this threat.
“The indictment alleges that the defendant attempted to construct an explosive device that was to be used in an attack on a local high school,” U.S. Attorney Justin Herdman stated. “The defendant is further alleged to have engaged in making interstate threats that were directed at another school in Kansas. Law enforcement takes seriously all concerns about potentially violent individuals, but where we have specific, credible threats of violence against the public, especially in our schools, we will act swiftly and with appropriate federal charges.”
“Thanks to the awareness of private citizens and the hard work of our law enforcement partners, what could have been a horrific and tragic day was stopped,” said FBI Special Agent in Charge Eric B. Smith. “Law enforcement has no higher priority than protecting others. We will continue to ensure our schools remain a safe place where young people go to learn and thrive. The FBI and our law enforcement partners urge parents, relatives, and friends to report suspicious and troubling behavior to authorities immediately.”
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 is being conducted by the Federal Bureau of Investigation’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Duncan T. Brown.
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The Honorable Douglas H. Ginsburg to Receive Justice Department's 2020 John Sherman AwardRead the Press Release
The Antitrust Division of the Department of Justice will present Judge Douglas H. Ginsburg with the John Sherman Award for his lifetime contributions to the development of antitrust law and the preservation of economic liberty. Judge Ginsburg will deliver remarks and receive the award during a ceremony on May 8, 2020, in the Great Hall of the Robert F. Kennedy Department of Justice Building.
“Judge Ginsburg’s role in the advancement of antitrust law and policy cannot be overstated,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “It is a privilege for the division to recognize his career and achievements with this award. Judge Ginsburg’s leadership in the Antitrust Division, as well as his incisive and cogent scholarship, has brought sound economic analysis to the forefront of antitrust law. His contributions have greatly improved the ability of antitrust law to protect consumer welfare and to spur economic growth.”
Created in 1994, the John Sherman Award is presented by the Justice Department's Antitrust Division to a person or persons for outstanding contributions to the field of antitrust law, the protection of American consumers, and the preservation of economic liberty.
Judge Ginsburg received his undergraduate degree from Cornell University and his J.D. from the University of Chicago. Following law school, Judge Ginsburg clerked for Judge Carl McGowan of the U.S. Court of Appeals for the D.C. Circuit and for U.S. Supreme Court Justice Thurgood Marshall. He joined the faculty at Harvard Law School from 1975 to 1983, before serving as the Deputy Assistant Attorney General for Regulatory Affairs, Antitrust Division, U.S. Department of Justice, from 1983 to 1984; Administrator, Information and Regulatory Affairs, OMB, from 1984 to 1985; and Assistant Attorney General, Antitrust Division, U.S. Department of Justice, from 1985 to 1986. Judge Ginsburg was appointed to the U.S. Court of Appeals for the District of Columbia Circuit in November 1986 and served as Chief Judge from July 2001 until February 2008. Concurrent with his service on the federal bench, Judge Ginsburg has taught at the University of Chicago Law School and the New York University School of Law. He is currently a Professor of Law at the Antonin Scalia Law School, George Mason University, and a visiting professor at the University College London, Faculty of Laws.
Judge Ginsburg’s efforts to incorporate economic analysis in antitrust enforcement is instrumental to how agencies and practitioners approach antitrust law today. Of his many notable contributions, Judge Ginsburg elevated the role of economic analysis in antitrust enforcement by expanding the Division’s economics section and by creating the position of the Deputy Assistant Attorney General for Economic Analysis during his tenure as the Assistant Attorney General of the Antitrust Division. Through his work with the Global Antitrust Institute at the Antonin Scalia Law School, Judge Ginsburg is renowned for helping international enforcers and judges apply economic insights in competition law. Judge Ginsburg’s jurisprudence and scholarship further reflect the intellectual rigor that has marked his distinguished career. He was an influential judge on the landmark United States v. Microsoft case in 2001, and the case remains foundational to understanding competition in high-tech markets. Judge Ginsburg’s scholarship is widely admired, and his academic works — ranging in topic from the application of antitrust law in a changing economy to the effects of extra-jurisdictional remedies — tackle complex questions and continue to influence students, enforcers, and practitioners alike.
The award is named for the author of the Sherman Act of 1890, the nation's first and foremost antitrust law. John Sherman, a former congressman and senator, also served as Secretary of the Treasury from 1877 to 1881 and as Secretary of State from 1897 to 1898. Previous recipients have included Diane P. Wood (2015), James F. Rill (2012), Robert Pitofsky (2010), Herbert Hovenkamp (2008), Robert H. Bork (2005), Richard A. Posner (2003), Milton Handler (1998), Thomas Kauper and William Baxter (1996), Phillip Areeda (1995), and Howard Metzenbaum (1994).
Cleveland man sentenced to 15 years for selling a fatal dose of cocaine laced with heroin and fentanylRead the Press Release
Terry Lee Christian was sentenced today to 15 years of imprisonment for selling a mixture of cocaine, heroin and fentanyl that resulted in the fatal overdose of a man inside a downtown Cleveland hotel in July 2018. Christian previously pleaded guilty to selling the fatal mixture to the victim. This is the first prosecution in this District for causing the death of another by selling cocaine to a victim who was unaware that the cocaine was laced with heroin and fentanyl.
According to court records, members of the Cleveland Division of Police’s Heroin Involved Death Investigations Unit responded to a drug overdose at a hotel room in Cleveland on July 14, 2018. Officers observed a bag of suspected cocaine on the dresser and suspected cocaine residue on the dresser and bathroom vanity.
The narcotics were tested and found to be a mixture of cocaine, heroin and fentanyl. The packaging material was tested and the DNA found on the package matched Christian’s DNA.
A review of the victim’s phone and other evidence revealed that the victim met with Christian on July 13, 2018, and later exchanged several calls that day to establish a time and place for the victim to purchase cocaine. Specifically, Christian agreed to sell two grams of cocaine in exchange for $200. Shortly after their brief meeting and subsequent calls, the victim was seen on nearby surveillance cameras arriving at the agreed location and engaging in a hand-to-hand transaction. The victim neither requested nor knew that the cocaine he purchased from Christian was laced with heroin and fentanyl.
This matter was investigated by the Cleveland Division of Police and Drug Enforcement Administration, and prosecuted by Assistant U.S. Attorneys Vasile C. Katsaros and Margaret Sweeney.
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Tenet Healthcare and Affiliated California Hospital to Pay $1.41 Million to Settle False Claims Act Allegations for Implanting Unnecessary Cardiac MonitorsRead the Press Release
Tenet Healthcare Corporation and its affiliated hospital Desert Regional Medical Center (DRMC), a general medical and surgical hospital located in Palm Springs, California, have agreed to pay $1.41 million to resolve allegations that they violated the False Claims Act by knowingly charging Medicare for implanting unnecessary cardiac monitors, the Justice Department announced today.
“Providers that bill for unnecessary services and devices contribute to the soaring cost of health care,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “The Department of Justice holds accountable those providers that impose unnecessary treatments upon patients and pass the inflated costs on to federal health care programs.”
Medicare only reimburses services and treatments that are reasonable and medically necessary. This settlement resolves allegations that DRMC knowingly charged Medicare for unnecessary cardiac monitors (often called loop recorders) that DRMC cardiologists implanted in beneficiaries from 2014 to 2017.
“Invasive medical procedures, such as implanting heart monitors, are not without risk,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Therefore, when these procedures are medically unnecessary, as contended in this case, people in government health programs are put at needless peril, and taxpayers end up with the bill.”
The settlement resolves allegations filed in a lawsuit by Michael Grace, a former DRMC employee, under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in any recovery. The civil lawsuit is docketed in the Central District of California and is captioned United States ex rel. Grace v. Tenet HealthCare Corp.; St. Francis Hospital-Memphis; Desert Regional Medical Center; and Apollo MD, Case No. 17-CV-1481. As part of this settlement, Grace will receive $240,789 as his share of the government’s recovery.
The resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the Office of Inspector General for the U.S. Department of Health and Human Services.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Michael Louis McCarron Sentenced to Federal Prison for Attempted Enticement and Transfer of Obscene Material to a MinorRead the Press Release
Hagatña, Guam - SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MICHAEL LOUIS MCCARRON, age 34, from Washington, was sentenced in the District Court of Guam to 120 months imprisonment. On October 31, 2019, a federal jury found McCarron guilty of Attempted Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b), and Attempted Transfer of Obscene Material to a Minor, in violation of Title 18, United States Code, Section 1470. The Court also ordered five years of supervised release following McCarron’s term of imprisonment and the payment of a mandatory $200.00 special assessment fee. Conditions of supervised release include that McCarron has no contact with minors and to register with the Sex Offender Registry in any jurisdiction in which he lives, works, or attends school.
Between October 31, 2017, and November 30, 2017, McCarron attempted to persuade, induce, and entice a person he believed was a 13-year-old female to engage in sexual intercourse. McCarron committed these acts through the use of the Internet and by attempting to make actual contact with the alleged minor. The investigation determined that he also transferred 12 images and one video, which depicted his genitals, to this same alleged female minor.
U.S. Attorney Anderson states, “Our communities deserve protection from those who seek to prey on children. McCarron engaged in a shocking pattern conduct. Fortunately, no child was actually harmed during the course of the investigation. I applaud the continuing efforts of our federal law enforcement partners and the Marianas Child Exploitation Task Force. The public can expect the aggressive prosecution of child predators under the Department of Justice’s Project Safe Childhood initiative. Unfortunately, victims of child pornography suffer for many years from the trauma of abuse and the repeated distribution of depictions of the crime. I applaud the hard work of our federal law enforcement partners in bringing this defendant to justice.”
Defendants who have been convicted of sexual offenses, under federal and local laws, have a duty to register with the Sex Offender Registry in their jurisdiction and keep their registration current. Sex offenders who travel to Guam and reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school. The Sex Offender Registry was created in order to protect the public, including victims, from further victimization and to keep the public informed of the whereabouts of sex offenders. Guam’s Sex Offender Registry is accessible online at www.guamcourts.org (link is external).
This case was part of the Project Safe Childhood (PSC) Initiative, a nationwide initiative by the U.S. Department of Justice to aggressively prosecute people who engage in the sexual victimization of children, possess or receive child pornography, and fail to register as sex offenders. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The investigation was conducted by Federal Bureau of Investigations, Air Force Office of Special Investigations Detachment 602, and Naval Criminal Investigative Services with support from the Marianas Child Exploitation Task Force (MCETF). The MCETF is a multi-agency federal and local law enforcement task force dedicated to conducting criminal investigations and prosecutions of sexual predators of children. This case was prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney for the District of Guam and Justin Collins, Special Assistant United States Attorney.
Justice Department Welcomes Decision in New York v. Deutsche Telecom, the T-Mobile/Sprint MergerRead the Press Release
Following the trial in New York v. Deutsche Telekom, Judge Victor Marrero of the U.S. District Court for the Southern District of New York has refused a request from a minority of state Attorneys General to block T-Mobile’s proposed acquisition of Sprint. In his opinion, Judge Marrero cited the Justice Department’s settlement as a key factor, noting that the Justice Department’s settlement made Dish “well poised to become a fourth MNO in the market, and its extensive preparations and regulatory remedies indicate that it can sufficiently replace Sprint’s competitive impact.”
“I am pleased and agree with Judge Marrero’s decision to deny the injunction, and particularly his conclusion that the department’s divestiture and remedy package resolves the competitive concerns in this case,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This opinion is an important next step toward strengthening competition for high-quality 5G networks that will benefit American consumers nationwide.”
“I am also grateful that the judge recognized the expertise of the Department of Justice and the Federal Communications Commission (FCC) in his evaluation of the transaction. As I have noted before, should a minority group of states, or even one, be able to undo the nationwide relief secured by the federal government, it would wreak havoc on parties’ ability to merge, on the government’s ability to settle cases, and cause real uncertainty in the market for procompetitive mergers and acquisitions.”
The department’s Antitrust Division filed a civil antitrust lawsuit on July 26, 2019, in the U.S. District Court for the District of Columbia along with a proposed settlement that, if approved by the court, would resolve 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 proposed settlement. That proposed settlement, along with the United States’ motion to enter final judgment, is pending before Judge Kelly in the U.S. District Court for the District of Columbia.
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 Boost Mobile, Virgin Mobile, and Sprint prepaid, 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.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Announces Agenda for Next Week's Workshop on Section 230 of the Communications Decency ActRead the Press Release
The Department of Justice has released a final agenda for the Feb. 19, 2020, public workshop on Section 230 of the Communications Decency Act. The public workshop, titled “Section 230 – Nurturing Innovation or Fostering Unaccountability?,” will discuss the evolution of Section 230 from its original purpose in granting limited immunity to Internet companies, its impact on the American people, and whether improvements to the law should be made.
The released agenda includes welcome remarks from Attorney General William P. Barr and distinguished panelists with a wide variety of perspectives on Section 230. The final agenda, and more information on the event, can be found here: https://www.justice.gov/ag/webform/section-230-workshop-registration. The workshop is free and open to the public, and will be held in the FBI Auditorium, 935 Pennsylvania Ave NW, Washington, D.C. 20535, from 9 a.m. Eastern Time to 12:45 p.m. Eastern Time.
The department has registered over 350 attendees for the event, but limited seats are still available. If you would like to attend, please RSVP before 5 p.m. on Wednesday, Feb. 12, 2020, through the event webpage. As seating is limited, invitations to attend will be sent to registered participants on a first-come, first-served basis. Members of the press should also email [email protected].
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the department by sending an email to [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 year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
SchoolSafety.Gov Launches to Help Educators, Administrators, Parents, and Law Enforcement Prepare for ThreatsRead the Press Release
The Trump Administration today launched the federal school safety clearinghouse website: SchoolSafety.gov. This website is a one-stop-shop of resources for Kindergarten through Grade 12 (K-12) administrators, educators, parents and law enforcement to use to prepare for and address various threats related to safety, security, and support in schools. President Trump established the Federal Commission on School Safety to review safety practices and make meaningful and actionable recommendations of best practices to keep students safe.
“The Department of Justice has no higher priority than making sure our schools are safe and secure for our nation’s students, teachers and administrators,” said Attorney General William P. Barr. “I am grateful for President Trump’s leadership in this cause and am honored to stand with the rest of the leadership of his administration as we continue our efforts to promote school safety through SchoolSafety.gov. The Department of Justice is deeply grateful for the sacrifice and commitment of our nation’s school resource officers and police officers who are on the front lines of keeping our schools and country safe every day.”
“School safety is the number one priority of parents across the country, which is why the President directed DHS and other federal agencies to form a task force and provide schools, teachers, parents, and law enforcement with resources to identify, prepare for, respond to, and mitigate threats,” said Chad Wolf, Acting Secretary of the Department of Homeland Security. “The Department provided expertise and resources on a range of school safety issues including threat assessments, physical security, emergency planning, and trainings and exercises designed to help schools and local law enforcement prepare for incidents. With these resources, schools and law enforcement will be better equipped to handle a crisis.”
“All students deserve a safe learning environment, and the Federal School Safety Clearinghouse is an essential resource for information and best practices,” said U.S. Secretary of Education Betsy DeVos, Chair of the Federal Commission on School Safety. “Because every school community has its own unique needs, SchoolSafety.gov equips decision makers with resources for developing, customizing, and implementing actionable school safety plans.”
“Every child should feel safe at school, and every parent should feel their child is safe each day, too,” said Health and Human Services (HHS) Secretary Alex Azar. “SchoolSafety.gov will help equip schools with the tools they need to create safe, healthy environments, including resources for how to provide mental health services in schools. This new one-stop shop complements the evidence-based technical assistance HHS provides to local communities around mental health treatment, and we hope to see more and more schools explore these opportunities.”
SchoolSafety.gov is a resource for the American public, primarily K-12 school administrators, to access free information, guidance, best practices, and tools that make school safety initiatives more actionable in schools. Today’s launch represents the first phase of SchoolSafety.gov and we look forward to continually expanding and refining resource materials in coordination with our partners and stakeholders.
The Federal School Safety Clearinghouse and SchoolSafety.gov were developed to fulfill one of the key recommendations from the Federal Commission on School Safety.
SchoolSafety.gov includes:
- The School Safety Readiness Tool, an assessment that assists users in evaluating their respective school’s safety posture across ten foundational elements of school safety. After completing the assessment, users are provided an action plan with task prioritization, options for consideration, aligned resources, and grant opportunities specific to individual needs;
- A Secure Information Sharing Platform for designated school personnel to share school safety ideas, practices, plans, and tactics in a protected environment; and
- A wide array of resources and best practices on key school safety topics to assist with building awareness within the school community to promote vigilance and build capacity to respond to incidents.
SchoolSafety.gov empowers districts and schools to improve safety and security. Following the school shooting in Parkland, Florida in March 2018, President Trump established the Federal Commission on School Safety by Executive Order to make meaningful advancements in keeping students safe. The Trump Administration and DHS also released the 2019 strategy for targeted violence that defines ways that the Department will enhance security with increased preparedness, promoting community readiness, and enhancing defensive measures. The Department will continue to develop new techniques in protective practices.
Justice Department Sues State of New Jersey, New Jersey Governor, and New Jersey Attorney General for Prohibiting State Officials from Sharing Information with U.S. Immigration and Customs EnforcementRead the Press Release
Today, the U.S. Department of Justice filed suit against the State of New Jersey, New Jersey Governor Philip Murphy, and New Jersey Attorney General Gurbir Grewal. The lawsuit challenges New Jersey Attorney General Law Enforcement Directive 2018-6, which prohibits state officials from sharing information with U.S. Immigration and Customs Enforcement (ICE) related to the immigration status and release dates of individuals in their custody.
The directive also requires New Jersey law enforcement to “promptly notify a detained individual, in writing and in a language the individual can understand” if ICE files an immigration detainer request for the individual. According to the complaint filed today, on multiple occasions last year, New Jersey officials failed to provide information regarding the release dates of aliens who had been charged with or convicted of crimes. New Jersey’s decision to obstruct federal immigration enforcement by refusing to provide such information is unlawful under the Supremacy Clause of the U.S. Constitution.
A copy of the complaint is available here.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Sues State of California, California Governor, and California Attorney General for Prohibiting the Operation of Private Detention Facilities in the StateRead the Press Release
The Justice Department filed suit against California Governor Gavin Newsom, California Attorney General Xavier Becerra, and the State of California challenging California state law A.B. 32, which prohibits any individual or entity from operating private detention facilities in the state.
Under A.B. 32, prisoners and detainees currently housed in private facilities in California will have to be relocated at great cost, potentially isolating prisoners and detainees from their families and causing overcrowding in neighboring states. The U.S. Marshals Service (USMS), for example, which is responsible for the housing and transportation of federal prisoners awaiting trial and sentencing, will need to relocate nearly 50 percent of its inmates in the Southern District of California and nearly 30 percent of its total California inmates to out-of-state facilities.
A.B. 32 will also require frequent and costly transportation of prisoners and detainees. For USMS, pretrial inmates will have to be frequently transported to and from California to meet the demands of courts, defense attorneys, and any pretrial or probationary requirements. And for U.S. Immigration and Customs Enforcement (ICE), which is responsible for the housing and transportation of immigration detainees, any aliens apprehended in California (about 45,000 in fiscal year 2019) will have to be transported to out-of-state facilities using costly air or ground transportation. This drastic increase in USMS and ICE transportation requirements will also heighten security concerns. Finally, A.B. 32 may delay federal proceedings due to the out-of-state relocation of prisoners and detainees.
The lawsuit challenges A.B. 32 as unlawful under the Supremacy Clause of the U.S. Constitution because A.B. 32 substantially obstructs the federal government’s housing of federal prisoners and detainees, stands as an obstacle to the accomplishment of congressional objectives related to criminal law and immigration enforcement, directly regulates federal operations, and discriminates against the United States by granting exceptions for California that do not apply to the federal government or its contractors.
A copy of the complaint is available here. The Department of Justice has also moved to enjoin the enforcement of A.B. 32 against the federal government and its contractors. A copy of the motion is available here.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Justice Department Sues King County, Washington, and King County Executive for Prohibiting U.S. Immigrations and Custom Enforcement Contractors from Using King County International AirportRead the Press Release
Today, the Justice Department filed suit against King County, Washington, and King County Executive Dow Constantine challenging King County Executive Order PFC-7-1-EO, which has the purpose and intended effect of prohibiting U.S. Immigration and Customs Enforcement (ICE) contractors from using King County International Airport, also known as Boeing Field, as a terminal for flights to remove individuals from the United States or transport immigration detainees within the country.
The Executive Order directs King County officials to “ensure that all future leases, operating permits, and other authorizations for commercial activity at King County International Airport contain a prohibition against providing aeronautical or non-aeronautical services to enterprises engaged in the business of deporting immigration detainees (except for federal government aircraft), to the maximum extent permitted by applicable law.”
After the Executive Order was issued, the company providing fixed-based operator (FBO) services (fueling, aircraft maintenance, and similar services) to ICE’s contractor at Boeing Field informed the contractor that it would no longer service its flights, and no other FBO agreed to assist the contractor. As a result of similar refusals at other airports in the Seattle area, ICE’s contractor has been forced to relocate these flights to Yakima, Washington. This has created significant operational difficulties and additional costs for ICE due to: (1) the increased costs of flying in and out of Yakima’s airport, (2) the road conditions between Yakima and Tacoma, which often make transportation of detainees difficult, and (3) the inability to house detainees in or near Yakima in the event of delays or inclement weather. The lawsuit challenges the Executive Order as unlawful under the Supremacy Clause of the U.S. Constitution because the Order obstructs and burdens federal activities, discriminates against federal contractors, and is expressly preempted by the federal Airline Deregulation Act, which prohibits localities such as King County from enacting or enforcing laws or regulations that relate to prices, routes, or services of air carriers.
A copy of the complaint is available here.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice FY 2021 Budget RequestRead the Press Release
President Trump’s FY 2021 Budget proposal totals $31.7 billion for the Department of Justice to support federal law enforcement and criminal justice priorities of our state, local, and tribal law enforcement partners. The request represents a comprehensive investment in the Justice mission and includes investments to sustain and enhance our vital work to counter incidents of mass violence, stem violent crime, combat cybercrimes, dismantle gangs, address illegal immigration and the immigration caseload, protect the elderly from fraud, help rural communities, strengthen the fight against illegal opioids, and continue the department’s commitment to National Security.
“The President’s budget request would invest significant resources in our nation’s security, including efforts to prevent mass violence while ensuring overall reductions in violent crime that have been achieved in recent years continue,” said Attorney General William P. Barr. “This budget would also help us continue to fight the opioid epidemic, secure our international borders, and protect our citizens, our economy and infrastructure from cyber threats. It also gives us the tools to reduce recidivism among federal offenders and provides strong support to the state, local, and tribal police who keep us safe.”
The Department of Justice’s areas of investment include:
- +$942.2 million to strengthen federal law enforcement’s ability to counter violent crime and support communities to prevent violent crime.
- +$638.8 million in resources to counter incidents of mass violence and support state and local agencies in their efforts to prevent violent crime.
- +$379.6 million to fight the opioid crisis. Additional resources will be devoted to combatting transnational criminal organizations, known for supplying illicit substances to the United States.
- +$409.5 million to continue implementation of the First Step Act of 2018 (FSA). These investments support numerous programs dedicated to reducing recidivism among federal offenders.
- +$143.1 million in immigration related program enhancements to stem the tide of illegal immigration, address increased caseload, and enforce our Nation’s immigration laws.
- +$122.8 million in program enhancements to address critical national security and cyber threats.
- $4.3 billion in discretionary and mandatory funding for federal grants to state, local, and tribal law enforcement and victims of crime, to ensure greater safety for law enforcement personnel and the people they serve. Critical programs aimed at protecting the life and safety of state and local law enforcement personnel, including the Public Safety Partnership Program and the Project Safe Neighborhood Program, demonstrate our continuing commitment to supporting state, local, and tribal law enforcement.
For more information, view the FY 2021 Budget and Performance Summary at https://www.justice.gov/doj/fy-2021-budget-and-performance-summary
Countering Violent Crime
Nationwide crime rates continue to trend downward: the number of violent crimes decreased by 3.3 percent between 2017 and 2018, while the violent crime rate per 100,000 population decreased by 3.9 percent. However, violent crimes continue to plague our cities and communities, a serious concern that the Department of Justice remains committed to mitigating.
In 2021, the department will build on the attorney general’s priority program, Operation Relentless Pursuit, to reduce violent crime, including human trafficking, transnational criminal activity, and criminal entities in our prisons, and endeavor to dismantle the worst criminal organizations and target the most violent offenders. The operation consists of participation from each DOJ law enforcement agency, including the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the United States Marshals Service (USMS).
The FY 2021 budget requests $942.2 million to reduce violent crime and the scourge of human trafficking.
For more information, view the Countering Violent Crime Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets
Countering Mass Violence
Mass violence incidents, such as the tragedies of El Paso, Dayton, Orlando, Dallas, and so many others, shatter communities and threaten the fabric of civil society. This administration is taking bold actions to confront mass violence and violent crime, and ensuring that efforts go beyond traditional law enforcement efforts. The budget supports a total of $719 million for the Department of Justice and the Department of Homeland Security (DHS) to address targeted violence and to reduce gun crimes. This includes $639 million for DOJ, including $332 million for targeted violence and $307 million for enhanced law enforcement. With this funding, DOJ will utilize a broad spectrum of response, combined with proactive efforts in identification and interdiction of specific threats in order to reduce the risk of mass violence across the United States. Additionally, the budget provides $80 million to DHS to confront these challenges, including $20 million for community grants to support efforts at the local level to identify and mitigate risks.
The FY 2021 budget requests $638.8 million in program enhancements to counter mass violence and violent crime. The Department of Justice is committed to restoring law and order by providing federal resources where they are most needed and most effective. These resources will enable the department to detect, trace, and apprehend dangerous criminals, limiting their painful impact to American citizens.
For more information, view the Countering Mass Violence Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets
Drug Enforcement and the Opioid Crisis
The United States is in the midst of the deadliest drug epidemic in American history. According to the Centers for Disease Control and Prevention (CDC), more than 67,300 Americans died from drug overdoses in 2018. Over 46,800, or over two-thirds, of these overdose deaths were caused by heroin, fentanyl, and prescription opioids. While the number of overdose deaths represent a 4.1 percent decline from 2017, drug overdoses remain significantly high. On March 18, 2018, the administration released the Initiative to Stop Opioid Abuse and Reduce Drug Supply and Demand, and the department remains committed to doing its part to protect the American people from the impact of drugs and drug-related crime nationwide.
The FY 2021 budget requests $379.6 million in program enhancements and transfers to combat the opioid crisis and bolster drug enforcement efforts. These resources enable the department to target the drug trafficking organizations responsible for opioid abuse and drug-related violence in our communities. It also enhances the capacity of department agents to deny revenues to drug traffickers using the best cyber capabilities and technologies, enabling the department to keep pace with these nefarious actors.
For more information, view the Drug Enforcement and the Opioid Crisis Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets
First Step Act
The timely, efficient, and effective implementation of the First Step Act of 2018 (FSA) is a priority for the department and the administration. The landmark criminal justice reform bill includes numerous provisions to reduce recidivism among federal offenders, such as increasing inmates’ access to pre-release custody so that they can finish portions of their sentences in the community; expanding the Medication Assisted Treatment (MAT) program to assist and treat inmates with opioid use disorders; and increasing the availability of evidence-based risk-reduction programs, such as vocational, life skills, and mental health programs..
The FY 2021 budget requests $409.5 million to continue implementing the FSA. These investments will allow an additional 8,700 inmates to ease transition back to their communities, bring MAT treatment to every Federal Bureau of Prisons facility in the nation, and increase inmate access to job and life skills training programs needed to successfully re-enter society.
For more information, view the First Step Act Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets
Enforce Immigration Laws
The FY 2021 budget strengthens the nation’s security through stronger enforcement of the nation’s immigration laws. The department is requesting $143.1 million in immigration related program enhancements for FY 2021, to enforce the nation’s immigration laws and defend the federal government against challenges to immigration policies and actions. These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration to the United States by expanding capacity, improving efficiency, and removing impediments to the timely administration of justice. This budget supports the department’s efforts, along with our partners at the Department of Homeland Security, to fix our immigration system.
For more information, view the Enforce Immigration Laws Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets
National Security and Cyber
National security remains one of the Department’s highest priorities. Threats are constantly evolving, requiring additional investments to mitigate those threats in innovative ways. Terrorists seek to sabotage critical infrastructure; organized crime syndicates seek to defraud banks and corporations; and spies seek to steal defense and intelligence secrets and intellectual property. Each threatens our nation’s economy and security.
The FY 2021 budget supports the department in responding to those evolving threats by dedicating $122.8 million in program enhancements for the FBI and the National Security Division (NSD).
For more information, view the National Security and Cyber Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets
State, Local, and Tribal Assistance
The department is solidly committed to the president’s initiatives to reduce violent crime and address the opioid epidemic. Federal law enforcement officers constitute only 15 percent of the total number of law enforcement officers nationwide; therefore, 85 percent of the officer support relies upon strong partnership with state and local law enforcement. The department supports its partners in state and local law enforcement, who have critical intelligence about violent crime in their communities, and whose actions are crucial in the fight against violent crime and the opioid epidemic.
The FY 2021 budget continues its commitment to state, local and tribal law enforcement by investing approximately $4.3 billion in discretionary and mandatory funding in programs to assist them. Funding has been prioritized to meet the most pressing law enforcement concerns – violent crime and opioid abuse – and to help the victims of crime.
For more information, view the State, Local and Tribal Assistance Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Government Food Service Provider Pleads Guilty to Payroll Tax FraudRead the Press Release
A Potomac, Maryland-based operator of companies providing food-services in government buildings pleaded guilty today to failing to account for and pay over more than $10 million in employment and sales tax, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Timothy J. Shea for the District of Columbia.
According to documents and information provided to the Court, Steve Choi was the founder, president, and operator of nine companies that provided food services within government buildings located in the DC area. As president and operator of the companies, Choi was responsible for withholding, accounting for, and paying over to the Internal Revenue Service (IRS) employment taxes. Notwithstanding these obligations, and civil collection efforts by the IRS, Choi failed to pay the companies’ employment taxes. Even after Choi acknowledged in a 2011 interview with IRS personnel that he had the authority and responsibility to pay employment taxes, from 2012 through 2015, Choi did not pay over $4.4 million in employment taxes. During the same period, Choi also did not pay more than $6.2 million in sales taxes to the D.C. Office of Tax and Revenue on behalf of his food services companies. Rather than pay the sales and employment taxes, from 2011 through 2015, Choi directed his companies to pay millions of dollars in other expenditures, including over $1 million in personal salary, personal donations, and cash advances.
“Prosecuting employment tax fraud remains a priority for both the Tax Division and the Internal Revenue Service,” said Principal Deputy Assistant Attorney General Zuckerman. “As today’s guilty plea reflects, we will aggressively pursue those who do not comply with their employment tax obligations.”
“Choi chose to personally enrich himself rather than abide by the law and pay over employment taxes he already withheld,” said IRS-CI SAC Kelly R. Jackson. “The tax law is clear – every employer is responsible for withholding and paying over employment taxes from the salaries of their employees.”
U.S. District Judge Ketanji Brown Jackson scheduled sentencing for June 2, 2020. At sentencing, Choi faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release and monetary penalties. In his plea agreement, Choi has agreed to pay restitution of $6,490,515 to the Office of Tax and Revenue and of $4,903,820 to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Shea thanked special agents of IRS-Criminal Investigation and Office of Tax and Revenue who investigated the case, and Trial Attorneys Jack Morgan and Eric Schmale of the Tax Division, as well as Assistant U.S. Attorney Veronica Sanchez, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
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.
New York Plumbing Contractor Pleads Guilty to Employment Tax FraudRead the Press Release
A Queens, New York, business owner pleaded guilty today to failing to pay employment taxes to the Internal Revenue Service (IRS), 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, Sergei Denko was the owner and operator of Denko Mechanical Inc. and Independent Mechanical Inc., both contracting businesses in Queens that specialized in plumbing. From 2010 through 2014, Denko cashed customer checks and used the cash to pay employees. Denko then filed false employment tax returns that failed to report the cash wages and the employment taxes due. Denko admitted that he caused a tax loss of more than $360,000 to the Internal Revenue Service (IRS).
U.S. District Judge Rachel P. Kovner scheduled sentencing for June 15, 2020. At sentencing, Denko faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Eric Schmale and Mark Kotila of the Tax Division, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Missouri Businessman Arrested on Antitrust Charge for Rigging Bids at Online Government AuctionsRead the Press Release
A federal grand jury returned an indictment charging Alan Gaines, a Missouri resident, with participating in a conspiracy to rig bids submitted to the General Services Administration (GSA) at online auctions for surplus government equipment, the Department of Justice announced.
According to the indictment filed in the U.S. District Court in Minneapolis, Gaines conspired to rig bids at public online GSA auctions of surplus government equipment from about July 2012 until as late as May 2018. Gaines is the third individual charged in this investigation. Two co-conspirators, Marshall Holland and Igor Yurkovetsky, previously pleaded guilty in the investigation.
“Rigging bids at government auctions cheats taxpayers out of the benefits of competition and steals from the public purse,” said Assistant Attorney General Makan Delrahim of the Department of Justice. “This indictment affirms the Division’s commitment to safeguarding online markets and holding to account individuals who rig bids.”
“The general public deserves a level playing field when doing business with the government,” said GSA Inspector General Carol Ochoa. “GSA OIG is committed to prosecuting individuals who corrupt the system put in place for fair and competitive bidding.”
The GSA operates GSA Auctions, which offers the general public the opportunity to bid electronically on a wide variety of federal assets, including computer equipment that is no longer needed by government agencies. GSA Auctions sells that equipment via its online auctions, and the proceeds of the auctions are distributed to the government agencies or the U.S. Treasury general fund. According to the charge, the primary purpose of the conspiracy was to suppress and eliminate competition. Additionally, the co-conspirators obtained the equipment by agreeing which co-conspirators would submit bids for particular lots offered for sale by GSA Auctions and which co-conspirator would be designated to win a particular lot.
Gaines is charged with violating the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from 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. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The ongoing investigation into bid rigging at GSA auctions is being conducted by the Antitrust Division’s Chicago Office and the GSA Office of Inspector General’s Great Lakes Regional Investigations Office in Chicago, Illinois. Anyone with information concerning bid rigging or fraud related to GSA auctions should contact the Chicago Office of the Antitrust Division at 312-984-7200, the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit http://www.justice.gov/atr/report-violations or email the GSA Office of Inspector General at [email protected].
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.
Flooring Executive Charged in Antitrust and Money Laundering ConspiraciesRead the Press Release
Carter Brett, an account executive for a large flooring manufacturer, has been charged for conspiring to rig bids and fix prices for commercial flooring products and services, and for his role in a money laundering conspiracy involving kickbacks, the Department of Justice announced.
“The bid-rigging and money laundering schemes charged today cheated a state-funded school out of competitive bids and lined the defendant’s pockets with kickbacks,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This latest charge in the ongoing investigation demonstrates the Antitrust Division’s commitment to bringing to justice those in the commercial flooring industry who have victimized Chicago-area schools, hospitals, charities, and businesses.”
“When businesses rig bids to increase their own profits illegally, it is our citizens who suffer,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Division. “Today’s charges illustrate our ongoing efforts to protect Americans from price fixing and other dishonest business practices.”
According to a two-count felony charge filed today in U.S. District Court in Chicago, Illinois, Brett engaged in a conspiracy to suppress and eliminate competition in the commercial flooring market by initiating and orchestrating a bid rotation conspiracy among three commercial flooring installation companies so that the designated company would win the bidding for jobs at a suburban community college. According to the charge, Brett and his co-conspirators carried out the conspiracy from at least as early as 2013 until as late as June 22, 2017.
The second count filed today charges Brett with engaging in a money laundering conspiracy wherein Brett solicited and accepted kickbacks from his co-conspirators in exchange for offering those co-conspirators unlawfully low pricing. The charge alleges that Brett established a shell corporation for the sole purpose of receiving the illegal kickback payments. According to the charge, Brett and his co-conspirators carried out this conspiracy from at least as early as 2013 until late 2017.
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from 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.
Conspiring to commit money laundering carries maximum penalties of a $500,000 criminal fine and 20 years in prison. The maximum fine may be increased to twice the value of the property involved in the money laundering transactions, if that amount is greater than the statutory maximum fine.
The information charging Brett is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charges 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 Division. Brett is the fifth individual to be charged in the investigation; one corporation has also been charged to date.
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.
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 DC-Area Tax Preparation Business Pleads Guilty to FraudRead the Press Release
A tax return preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return, 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, between 2013 and 2016, Renita Jenifer, 52, of District Heights, Maryland, operated RAJen Business Tax Service (RAJen), a return preparation business in D.C. During those years, Jenifer prepared false tax returns for clients that included fraudulent and inflated business expenses and itemized deductions, such as charitable contributions and unreimbursed employee expenses. By including these false items, Jenifer’s secured refunds for her clients from the Internal Revenue Service (IRS) to which they were not entitled.
In 2016, after IRS-Criminal Investigation executed a search warrant at RAJen’s office in D.C. and revoked Jenifer’s Electronic Filing Identification Number (EFIN), Jenifer formed DS Professional Tax Service LLC (DS Pro), a new tax preparation business in Maryland. As she had done at RAJen, Jenifer prepared false tax returns for clients of DS Pro. In 2018, Jenifer moved this new business to D.C. and continued to prepare false returns for clients. To conceal her fraud, Jenifer used the name of anothert individual to obtain an EFIN for DS Pro, and she listed that individual’s name on tax returns she prepared, instead of her own.
In 2013 and 2014, Jenifer also filed her false tax returns for herself, omitting income from her business. In 2017 and 2018, Jenifer did not file personal tax returns at all, despite earning income from DSPro. In total, Jenifer caused a tax loss to the United States of $373,090.
U.S. District Judge Kentaji Brown Jackson set sentencing for May 12, 2020. Jenifer faces a prison term of up to three years, as well as monetary penalties. As part of her plea agreement, Jenifer has agreed to pay $357,819 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman thanked agents of IRS- Criminal Investigation and the D.C. Office of Tax and Revenue, who investigated this case, and Trial Attorneys Melissa Siskind and William Guappone of the Tax Division, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
On President Trump’s State of the Union AddressRead the Press Release
Attorney General William P. Barr has released the following statement:
In his State of the Union Address, President Trump underscored that the rule of law is central to American freedom and prosperity. This principle is what drives Department of Justice initiatives like Operation Relentless Pursuit and Project Guardian, which are helping to reduce violent crime across our country. We have aggressively fought the opioid epidemic and drug-overdose deaths declined last year for the first time in three decades. We have implemented the President’s landmark criminal-justice reform initiative, the First Step Act, through which thousands of Americans are being given a chance at redemption. We have continued to defend religious liberty for all Americans. We will continue to fight the unlawful practice of sanctuary jurisdictions, which put Americans at risk while aiding criminal aliens who are here illegally.
The men and women of law enforcement have no greater supporter than President Trump, and America is a safer place under his leadership.
Justice Department Seeks to Shut Down Texas Tax Return PreparerRead the Press Release
The United States has filed a civil suit in the Eastern District of Texas seeking to bar Desmond I. Chizoba from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. The complaint also requests that the court require Chizoba, who operated tax preparation stores under the names Liberty Tax Service and Kish Tax Service, to disgorge ill-gotten fees that he obtained from the U.S. Treasury through the alleged false tax return preparation.
According to the government’s complaint, Chizoba prepares returns claiming false credits and fabricated businesses, related losses, and itemized deductions. For example, the government alleges that Chizoba prepared a return on which he concocted a business for a health insurance industry employee and fabricated a $29,510 loss for the phony business. By repeatedly underreporting tax liabilities and claiming bogus refunds on behalf of his customers, Chizoba has allegedly 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. “Fraudulent tax return preparers too often seek to take advantage of their customers and the U.S. Treasury, which undermines our tax system.”
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax 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 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.
Justice Department Releases $500 Million in Solicitations for Hiring Law Enforcement Officers, Improving School Safety and Combating Distribution of Illicit DrugsRead the Press Release
The Justice Department announced that the Office of Community Oriented Policing Services (COPS Office) has released over $500 million in grant solicitations under the COPS Hiring Program (CHP) and several other grant programs that advance community policing, keep school students safe and promote the health and safety of our nation’s law enforcement officers.
“There is no more noble a profession than serving as a law enforcement officer and putting your life on the line to protect your community. Our police officers fight an unrelenting fight, and it is more important than ever to support them,” said COPS Office Director Phil Keith. “This funding will provide critical support to state, local, and tribal agencies so that they can bolster their ranks and reinforce community policing strategies and programs, and further our commitment to reducing violent crime.”
The COPS Hiring Program is a competitive award program intended to reduce crime and advance public safety through community policing by providing direct funding for the hiring of career law enforcement officers. In addition to providing financial support for hiring, CHP provides funding to state, local, and tribal law enforcement to enhance local community policing strategies and tactics. In a changing economic climate, CHP funding helps law enforcement agencies maintain sufficient sworn personnel levels to keep their communities safe. Funding through this program had been on hold since the spring of 2018 due to a nationwide injunction, which was recently lifted.
The 2020 Community Policing Development Program will fund projects related to a Law Enforcement Injury Prevention and Rehabilitation Program Toolkit; Recruiting the Next Generation of Officers and Deputies; Promising Practices in Law Enforcement Victim Support; Rural Law Enforcement Training Center; and Managing High-Risk Law Enforcement Vehicular Pursuits. This grant program provides guidance on promising practices through the development and testing of innovative strategies; building knowledge about effective practices and outcomes; and supporting new, creative approaches to preventing crime and promoting safe communities.
The Law Enforcement Mental Health and Wellness Act Program provides funding to improve the delivery of and access to mental health and wellness services for law enforcement through training and technical assistance, demonstration projects, and implementation of promising practices related to peer mentoring mental health and wellness programs. This year’s program will fund projects related to Peer Support Implementation Projects and a National Peer Support Program for Small and Rural Agencies.
The Preparing for Active Shooter Situations Program provides funding for scenario-based training that prepares officers and other first responders to safely and effectively handle active-shooter and other violent threats. This year’s program will train at least 20,000 first responders through scenario-based, multi-disciplinary training classes.
The COPS Office Anti-Heroin Task Force Program advances public safety by providing funds directly to state law enforcement to locate and investigate illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
The COPS Anti-Methamphetamine Program is designed to investigate illicit activities related to the manufacture and distribution of methamphetamine. Funding must be used to locate or investigate illicit activities such as precursor diversion, laboratories, or methamphetamine traffickers.
The STOP School Violence Prevention Program provides funding to improve security at schools and on school grounds in the grantees’ jurisdictions through evidence-based school safety programs.
For more information on COPS Office funding, please visit https://cops.usdoj.gov/grants.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.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.
U.S. Enters into Trilateral Agreement with Nigeria and Jersey to Repatriate over $300 Million to Nigeria in Assets Stolen by Former Nigerian Dictator General Sani AbachaRead the Press Release
The Department of Justice, on behalf of the U.S. government, has executed a trilateral agreement with the governments of the Federal Republic of Nigeria (Nigeria) and the Bailiwick of Jersey (Jersey) to repatriate to Nigeria approximately $308 million traceable to the kleptocracy of former Nigerian dictator Sani Abacha and his co-conspirators.
In 2014, U.S. District Judge John D. Bates for the District of Columbia entered judgment forfeiting approximately $500 million located in accounts around the world, as the result of a civil forfeiture complaint the Department of Justice filed against more than $625 million traceable to money laundering involving the proceeds of Abacha’s corruption. After appeals in the United States were exhausted in 2018, the government of Jersey enforced the U.S. judgment against over $308 million located in that jurisdiction.
“General Abacha and his cronies robbed Nigerians of vast public resources and abused the U.S. and international financial systems to launder their criminal proceeds,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s landmark agreement returns to the people of Nigeria hundreds of millions of the embezzled monies through a lawful process that ensures transparency and accountability.”
The forfeited assets represent corrupt monies laundered during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions from the government of Nigeria and others, then laundered their criminal proceeds through U.S. financial institutions and the purchase of bonds backed by the United States. Jersey’s cooperation in the investigation, restraint and enforcement of the U.S. judgment, along with the valuable contributions of Nigeria and other law enforcement partners around the world, have been instrumental to the recovery of these funds.
Under the trilateral agreement signed today, the United States and Jersey will transfer 100 percent of the net forfeited assets to the Federal Republic of Nigeria to support three critical infrastructure projects in Nigeria that were previously authorized by Nigerian president Muhammadu Buhari and the Nigerian legislature. Specifically, the laundered funds under this agreement will help finance the construction of the Second Niger Bridge, the Lagos-Ibadan Expressway and the Abuja-Kano road – investments that will benefit the citizens of each of these important regions in Nigeria.
The agreement includes key measures to ensure the transparency and accountability, including administration of the funds and projects by the Nigeria Sovereign Investment Authority (NSIA), financial review by an independent auditor, and monitoring by an independent civil society organization with expertise in engineering and other areas. The agreement also precludes the expenditure of funds to benefit alleged perpetrators of the corruption or to pay contingency fees for lawyers. The agreement reflects the sound principles for ensuring transparency and accountability adopted at the Global Forum on Asset Recovery (GFAR) in December 2016 in Washington, D.C., which the United States and the United Kingdom (UK) hosted with support from the Stolen Asset Recovery Initiative of the World Bank and United Nations Office on Drugs and Crime.
In addition to the more than $308 million forfeited in Jersey, the Department of Justice is seeking to enforce its forfeiture judgment against approximately $30 million located in the UK and over $144 million in France. The United States is also continuing to seek forfeiture of over $177 million in additional laundered funds held in trusts that name Abacha associate Bagudu, the current governor of Kebbi State, and his relatives as beneficiaries. The United States has asked the government of Nigeria to withdraw litigation it has instituted in the UK that hinders the U.S. effort to recover these additional funds for the people of Nigeria. The United States entered into the trilateral agreement to repatriate the Jersey assets because of its longstanding commitment to recover asset for the benefit of those harmed by grand corruption and because of the important safeguards embodied in the agreement.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section working in partnership with the FBI. Through the Kleptocracy Asset Recovery Initiative, the Department of Justice and federal law enforcement agencies seek to safeguard the U.S. financial system from criminal money laundering and to recover the proceeds of foreign official corruption. Where appropriate and possible, the department endeavors to use recovered corruption proceeds to benefit the people harmed by acts of corruption and abuse of public trust.
Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected]. The department appreciates the extensive assistance provided by the governments of Jersey, France, Nigeria and the UK in this investigation.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.