District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Two Former Owners of Binary Options Company and 13 Other Individuals Charged in $140 Million Fraud SchemeRead the Press Release
Fifteen individuals, including two former company owners, were charged in a superseding indictment unsealed today for their alleged participation in a scheme to defraud investors in the United States and worldwide by fraudulently marketing approximately $140 million in financial instruments known as “binary options,” announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office.
Yakov Cohen, 27; Yosef Herzog, 54; Ori Maymon, 33; Nissim Alfasi, 33; Elad Bigelman, 37; Runal Jeebun, 29; Sabrina Elofer, 28; Afik Tori, 27; Anog Maarek, 28; Oron Montgomery, 38; David Barzilay, 41; Gilad Mazugi, 36; Hadas Ben Haim, 34; Yousef Bishara, 32; and Nir Erez, 29, all current or former residents of Israel, were charged in an indictment returned in the District of Maryland with one count of conspiracy to commit wire fraud and three counts of wire fraud. Maarek appeared Friday before U.S. Magistrate Judge Timothy J. Sullivan in the District of Maryland. Maarek was extradited from Hungary, after his arrest in September 2019, by Hungarian law enforcement.
The indictment alleges that beginning in 2014, the defendants and their co-conspirators fraudulently sold and marketed binary options to investors located in the United States and throughout the world through two websites, known as BinaryBook and BigOption. The indictment alleges that the defendants and their co-conspirators all worked for an Israel-based company called Yukom Communications, a purported sales and marketing company. The indictment further alleges that Cohen and Herzog had ownership interests in Yukom Communications and other related entities that were used to perpetrate the fraud scheme.
As alleged in the indictment, the defendants and their co-conspirators misled investors by falsely claiming to represent the interests of investors when, in fact, the owners of BinaryBook and BigOption profited when investors lost money. In addition, the indictment alleges that the defendants and their co-conspirators misrepresented the suitability of and expected return on investments through BinaryBook and BigOption, used false names and qualifications when talking to investors, and falsely claimed to be working from London, when they were working from Israel. The indictment alleges the defendants and their co-conspirators also misrepresented whether and how investors could withdraw funds from their accounts and misrepresented the terms of so-called “bonuses,” “risk free trades” and “insured trades,” and deceptively used these supposed benefits in a manner that in fact harmed investors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In a related case, Lee Elbaz, the former CEO of Yukom and a citizen of Israel, was found guilty in August 2019 after a three-week jury trial of one count of conspiracy to commit wire fraud and three counts of wire fraud. Five additional former employees of Yukom and its affiliated companies have also pleaded guilty to conspiracy to commit wire fraud.
The FBI’s Washington Field Office investigated this case. Assistant Chiefs L. Rush Atkinson and Caitlin R. Cottingham of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs also provided assistance in this matter.
Justice Department Welcomes Arkansas Joining T-Mobile/Sprint SettlementRead the Press Release
The Department of Justice announced today that it has filed an amended complaint that adds Arkansas as a plaintiff in the suit and proposed settlement relating to the proposed merger of T-Mobile and Sprint. Arkansas joins Colorado, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota in the settlement, which is designed to launch Dish Network Corp., a Colorado-based satellite television provider, as a fourth nationwide provider of retail mobile wireless services. In addition to protecting competition, the proposed settlement will expedite the availability of high-quality 5G networks for American consumers and entrepreneurs.
“We are gratified that Arkansas shares our view of the tremendous benefits to competition that will arise out of the proposed consent judgment,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “A combined T-Mobile and Sprint, coupled with competition from Dish, will provide increased value to residents of Arkansas and consumers nationwide.”
The Department’s Antitrust Division and now nine co-plaintiff states have sued to block this transaction, and have agreed to settle the lawsuit based on the proposed settlement. That settlement, if approved by the court, would resolve the Justice Department’s and the co-plaintiff states’ competitive concerns.
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. The proposed settlement also provides for the divestiture of certain spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available 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 builds out its own 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.
Justice Department Requires Divestitures in Order for BB&T and SunTrust to Proceed with MergerRead the Press Release
The Department of Justice announced today that BB&T Corporation (BB&T) and SunTrust Banks Inc. (SunTrust) have agreed to divest 28 branches across North Carolina, Virginia, and Georgia with approximately $2.3 billion in deposits to resolve antitrust concerns arising from BB&T’s proposed merger with SunTrust. The divestiture constitutes the largest divestiture in a bank merger in over a decade.
Under their agreement with the Justice Department, the companies have agreed to divest SunTrust branches in the Eastern Shore, Virginia; Patrick County, Virginia; Franklin County, Virginia; Henry County/City of Martinsville, Virginia; Lumpkin County, Georgia; Winston-Salem, North Carolina; and Durham-Chapel Hill, North Carolina. The divested assets will include all deposits and loans associated with the divested branches.
“Banks and the financial sector are at the heart of our economy,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement ensures that banking customers across Virginia, North Carolina, and Georgia will continue to have access to competitively priced banking products, including loans to small businesses, while preserving the investments in innovation and technology this merger is expected to generate.”
The proposed merger is subject to the final approval of the Board of Governors of the Federal Reserve System, as well as the Federal Deposit Insurance Corporation (FDIC). As a result of the divestitures, the Justice Department will advise the Federal Reserve Board and the FDIC that it will not challenge the merger, provided that (1) the parties divest the branch offices and entire customer relationships (i.e., all deposits and loans) associated with the divestiture branches; (2) the parties commit to the Federal Reserve Board that they will comply with the agreement with the Department; and (3) the parties’ commitments to the Department are included as a condition to any order the Federal Reserve Board enters approving the transaction.
BB&T, headquartered in Winston-Salem, North Carolina, operates in 15 states and the District of Columbia. SunTrust, headquartered in Atlanta, Georgia, operates in 10 states and the District of Columbia.
A list of the SunTrust branches to be divested is attached.
Justice Department Comments on Settlement in Private "No-Poach" Class Action That Allows Government to Enforce Injunction Against Duke UniversityRead the Press Release
On Sept. 25, 2019, a federal district court in North Carolina entered a unique final judgment in a private no-poach class action that approves the parties’ settlement agreement and allows the United States to enforce the injunctive relief and compliance provisions of the settlement agreement. The settlement followed the Justice Department’s successful intervention in the case, which challenged alleged agreements between Duke University (Duke) and the University of North Carolina (UNC) not to compete for each other’s medical faculty.
Under the terms of the settlement, the university is prohibited from entering, maintaining, or enforcing unlawful no-poach agreements for five years. The settlement also requires Duke to implement rigorous notification and compliance measures to preclude its entry into these types of anticompetitive agreements in the future. The court’s order gives the United States the right to enforce the injunctive relief provisions of the settlement.
In the hearing to consider approving the settlement, the presiding federal judge said of the Antitrust Division’s intervention and contribution to the injunctive relief portion of the settlement: “I appreciated [your] arguments at summary judgment and the role that you all played in the injunctive relief. We hadn't really talked about that very much, but it is a substantial benefit here in not just to the Class members, but [also] in making sure that employers are aware of the risks and are likely to communicate that to folks who might not know any antitrust law, but who are making decisions as employers. So it is a pretty important part of the settlement.”
Assistant Attorney General Makan Delrahim applauded the entry of the final judgment. “This settlement is part of a larger effort by the Division to be active in enforcing the antitrust laws against practices that harm the hard-working American worker and educating the public about unlawful no-poach agreements in order to deter such agreements in the first place,” said Assistant Attorney General Delrahim. On Sept. 23, 2019, the Antitrust Division held a public workshop on competition in labor markets to discuss the role of antitrust enforcement in labor markets and promoting robust competition for American workers. The workshop covered a variety of labor competition issues, including, among other things, anticompetitive no-poach agreements.
The case is Seaman v. Duke University and Duke University Health System, Case No. 1:15-cv-000462-CCE-JLW (M.D.N.C.). On June 9, 2015, Dr. Danielle Seaman, an assistant professor at Duke University School of Medicine, filed a class action alleging that Duke and UNC agreed not to permit lateral hiring of faculty between the universities. Her complaint further alleged that the universities’ agreement violates Section 1 of the Sherman Act by eliminating competition for faculty, restricting their mobility, and suppressing their compensation. In 2018, the court certified a class comprised of faculty members with an academic appointment at the Duke or UNC Schools of Medicine.
In March 2019, the Department’s Antitrust Division filed a Statement of Interest in the lawsuit addressing the proper application of the antitrust laws, including the standard for judging the legality of alleged no-poach agreements under the Sherman Act. In April 2019, the litigants announced an agreement to settle the case. In May 2019, the Division took the unprecedented step of intervening successfully in the litigation for the limited purpose of joining the proposed settlement and thereby obtaining the right to enforce any injunctive relief entered by the court against Duke.
Duke is a private research university located in Durham, North Carolina. It has several schools and institutes, including the Duke University School of Medicine.
Dwyon Moore Sentenced to More Than 26 Years in Prison for Multiple Armed Robberies of Cleveland BusinessesRead the Press Release
Dwyon Moore was sentenced to 322 months in prison, followed by five years of supervised release, for the armed robberies of five separate businesses in Cleveland, Ohio.
“This defendant robbed five area businesses, including four in the span of only six hours, while pointing his gun at employees, patrons and a mother with her young child,” said United States Attorney Justin Herdman. “This sentence of more than 26 years is an important message to our community that those who terrorize our neighbors will be held accountable. We are grateful for the quick action of law enforcement, especially the Cleveland Division of Police officers who apprehended the defendant before he could commit yet another armed robbery that night.”
“Small businesses like restaurants and commercial shops are the backbone of a community, and they deserve to operate without a fear of violence,” said Jonathan McPherson, Special Agent in Charge of ATF’s Columbus Field Division. “ATF is proud to have such strong collaborative relationships with our partners at the Cleveland Division of Police, the Cuyahoga County Prosecutor’s Office Crime Strategy Unit, the FBI, and the United States Attorney’s Office. Through all of us working together, we were able to identify and prosecute this individual and remove a violent person from our community.”
According to evidence presented at sentencing, on December 12, 2018, Dwyon Moore (50), of Cleveland, OH, began his crime spree at Wonton Gourmet on Payne Avenue when he used a firearm to rob the restaurant. Moore approached the counter wearing a dark hooded sweatshirt pulled tightly around his face and pointed a firearm at employees and customers, ordering them to the ground. After stealing approximately $1,000 from the register, Moore fled on foot.
Continuing on December 14, 2018, at approximately 5:45 PM, Moore used a firearm to rob D.O. Summers Cleaners and Laundry on Carnegie Avenue. Wearing a dark hooded sweatshirt pulled tightly around his face, Moore pointed a gun at an employee and said “Don’t try to be a hero, ill be back, give me the money.” Moore then stole from the register, stole a coat from the dry cleaner, and fled on foot.
Within 45 minutes of the D.O. Summers robbery, Moore robbed Dark and Lovely Hair and Beauty on Cedar Avenue. Moore, again wearing a dark hooded sweatshirt pulled tightly around his face, pointed a firearm at customers, including a small child and his mother while ordering them to the ground, and demanded money from the register. Moore stole approximately $21 from a customer and approximately $100 from the register, then fled on foot.
Shortly after the Dark and Lovely robbery, Moore then robbed Bo Loong restaurant on St. Clair Avenue. While pointing a firearm, Moore told an employee to come to the counter, and demanded for the employee to give him all the money on his person. The employee removed $100 from his pocket and handed the money to the defendant. The defendant instructed the employee to lie down, and the employee complied. Moore stated, “It’s not personal. It’s just business.” Moore stole $50 from another employee, $250 from other customers, and approximately $350 from the register, then fled on foot. Moore was wearing the same dark colored hooded sweatshirt as seen in all of the previous robberies.
Finally, again wearing a dark hooded sweatshirt pulled tightly around his face, Moore robbed the Good Times Café on East 55th Street. Using a firearm, Moore robbed multiple bar patrons, as well as the Good Times Café register, then fled on foot. Patrons flagged down Cleveland Police Patrol Officers who quickly apprehended Moore nearby. Moore attempted to flee and resisted while officers attempted to handcuff him. CPD officers recovered a large amount of cash, items stolen during the various robberies, drug paraphernalia, and a loaded .38 caliber revolver. Moore was wearing the same clothing visible on surveillance from the prior four robberies. All told, Moore robbed four (4) separate businesses in the span of six (6) hours on December 14, 2018, in addition to the robbery he committed on December 12, 2018.
This case is part of Project Safe Neighborhoods, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime
This case was investigated by the Cleveland Division of Police, The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Cuyahoga County Prosecutors Office’s Crime Strategies Unit. It was prosecuted by Assistant U.S. Attorney John C. Hanley.
Palm Beach County Tax Return Preparer Convicted of Filing False Tax Returns and Theft of Government FundsRead the Press Release
A federal jury in Fort Lauderdale, Florida, convicted Paul Senat today of aiding and assisting in the preparation of false tax returns and theft of government funds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to the evidence presented at trial, from at least 2012 to 2016, Paul Senat was the owner and operator of multiple tax return preparation businesses in Palm Beach and surrounding areas. Through the businesses, Senat falsified his clients’ returns by reporting fictitious business losses and false education credits in order to fraudulently inflate their refunds.
Following the jury verdict, Senat was taken into custody. United States District Judge Rodolfo A. Ruiz scheduled sentencing for Jan. 27, 2020.
Senat faces a statutory maximum sentence of 10 years in prison for theft of government funds and three years for each count of aiding and assisting in the preparation of false returns. He also faces a period of supervised release, restitution, forfeiture, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who prosecuted the case.
Justice Department Settles with Public Accommodations to Protect the Rights of Veterans Who Use Service DogsRead the Press Release
As we mark Veterans Day 2019, the Justice Department announced two settlement agreements under the Americans with Disabilities Act (ADA) to protect and advance equal access for veterans with disabilities who use service dogs. One agreement is with Deerfield Inn & Suites, in Gadsden, Alabama. The second agreement is with the Landmark Hotel Group in Virginia Beach, Virginia, which manages the Holiday Inn Express in Hampton, Virginia. These matters were investigated and resolved in furtherance of the Department’s commitment to ensuring that our veterans enjoy equal access to public accommodations, such as restaurants, hotels, and shops.
The ADA generally requires public accommodations to provide access to individuals with disabilities who use service animals, including those who use service dogs for post-traumatic stress disorder (PTSD) or anxiety. Yet, in public accommodations across the country, individuals with disabilities are frequently barred from entering with a service animal.
“Individuals with disabilities, including veterans who have sacrificed for our country, have a right under federal law to the equal enjoyment of the services that a public accommodation provides to the public,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division is committed to ensuring equal access for our veterans, and we commend these businesses – the Deerfield Inn & Suites and the Landmark Hotel Group – for acknowledging their obligations under the Americans with Disabilities Act, and agreeing to implement policies and practices to ensure equal access for individuals who use service dogs.”
The Deerfield Inn & Suites agreement resolves allegations that, after driving many hours, a veteran arrived at the Deerfield Inn & Suites at 4:00 in the morning. When the desk clerk learned that the veteran was accompanied by her service dog, the desk clerk refused to honor the reservation, insisting that no dogs were permitted in the hotel. Despite numerous attempts by the veteran to explain that the dog was not a pet, but a highly trained animal required for disabilities she acquired in the service of our country, the clerk would not allow the veteran to stay at the hotel. As a result, and given the late hour, the veteran ended up sleeping in her car in the parking lot of a church.
Similarly, the complaint underlying the Landmark Hotel agreement alleged that, at the Holiday Inn Express managed by the Landmark Hotel Group, the desk clerk refused to honor a reservation by a veteran because he would not provide documentation that the dog with him was a service dog. The veteran informed the clerk that it was unlawful to ask for documents to establish that a dog is a service animal, but the desk clerk informed him that such documentation was corporate policy. The veteran then requested to speak to the hotel manager, who confirmed that it was the hotel’s policy to require such documentary proof. The veteran was forced to find another hotel.
Under the ADA, public accommodations generally must make modifications to their policies, practices or procedures – such as a no-pet policy – to permit the use of a service animal by a person with a disability. A service dog generally may go wherever the public is allowed to go, and a public accommodation may not require documentation about the service dog.
Under these agreements, both entities will adopt and implement a service dog policy; provide training on the service dog policy to employees and managers; post the service dog policy at their facilities and in their advertising; and pay money damages to the two veterans. All entities cooperated with the Department throughout the investigations.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Jury convicts Cleveland man of attempting to possess and distribute blue fentanyl pills marked as oxycodoneRead the Press Release
A federal jury convicted a Cleveland man for attempting to possess and distribute over 600 grams of blue fentanyl pills marked as oxycodone.
Rayshawn D. Ligon, 39, was convicted of conspiracy to possess with intent to distribute fentanyl, two counts of attempt to possess with intent to distribute fentanyl, and escape, following a one-week trial. The jury found that Ligon intended to distribute blue pills marked to look like 30 milligram oxycodone hydrochloride pills, but were in fact pills laced with fentanyl. Ligon attempted to receive packages containing the blue fentanyl-laced pills through the U.S. mail. While Ligon was attempting to receive and distribute the blue fentanyl-laced pills, he was residing in a halfway house as he served the remainder of a 100-month federal sentence for trafficking heroin, cocaine, and cocaine base. When agents and investigators attempted to apprehend Ligon, he fled and was later apprehended in a neighboring state.
Ligon will be sentenced early next year. He faces a mandatory minimum sentence of 25 years in prison.
This case is being prosecuted by Assistant U.S. Attorneys Patrick Burke and Danielle Angeli following an investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, and U.S. Immigration and Customs Enforcement.
Fugitive and Tax Fraud Promoter Captured and Set to Serve His 10 Year Prison SentenceRead the Press Release
A fugitive and former Hillsboro, Oregon, tax fraud promoter, who had been on the run since he was supposed to start serving a 10 year prison sentence, was caught in Arizona and apprehended on Nov. 1, 2019, by the U.S. Marshals Service, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
Winston Shrout, 70, was convicted by a jury in April 2017 of submitting fraudulent financial instruments to banks and the U.S. Treasury, and failing to file income tax returns. According to the evidence presented at his trial and sentencing, from approximately 2008 through 2015, Shrout created and submitted more than 300 such fraudulent instruments. He also held seminars and private meetings to promote and market the use of these instruments to pay off debts, including federal taxes. Shrout sold recordings of his seminars, templates for fraudulent financial instruments and other materials through his website.
In addition, Shrout did not file his 2009 through 2014 tax returns despite earning substantial income from seminars, licensing fees associated with the sale of his products, and annual pension payments. Shrout admitted during trial that he had not paid income tax for at least 20 years.
On Oct. 22, 2018, Judge Robert E. Jones sentenced Shrout to 10 years in prison, to serve five years of supervised release, and to pay restitution to the IRS. Shrout failed to report to prison as ordered in March 2019, and was a fugitive until his arrest late last week. Shrout appeared in district court and will be transferred to the custody of the Bureau of Prisons to begin serving his prison term.
Principal Deputy Assistant Attorney General Zuckerman commended the diligent investigation of the U.S. Marshals Service in Portland, Oregon, and Phoenix, Arizona, for bringing Shrout to justice. Principal Deputy Assistant Attorney General Zuckerman also commended special agents of IRS–Criminal Investigation, who conducted the investigation, Trial Attorneys Stuart Wexler and Lee Langston of the Tax Division, who prosecuted the case, the U.S. Attorney’s Office for the District of Oregon, and Assistant United States Attorney Ryan Bounds, for their support during the investigation, prosecution, and apprehension of the defendant in this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Businessman Charged with Tax FraudRead the Press Release
A federal grand jury indicted a Hillsboro Beach, Florida, businessman today for tax evasion, employment tax fraud, and other tax crimes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, Vincent Celentano owned and operated several businesses in Florida and Michigan, including WCIS Media LLC (WCIS), which advertised on behalf of health care providers and solicited accident victims for medical services and personal injury legal services. In 2013, Celentano allegedly used more than $360,000 from his businesses’ bank accounts to pay for personal expenses, including credit card payments and fuel and sundries for his yacht, “Ciao Bella,” and fraudulently caused the expenses to be recorded as business expenditures. That same year, Celentano also allegedly sold ownership interests in entities under his control to a third-party buyer for approximately $2.7 million, but demanded payment of his profits in a way that prevented accountants from accurately reporting income from the sale to the Internal Revenue Service (IRS). As alleged, despite earning gross income in excess of the filing threshold, Celentano willfully failed to file his individual income tax returns from 2013 through 2016.
In addition, the indictment further alleges that from October 2013 to February 2018, Celentano conspired with others to withhold payroll taxes from employees of his business, Integrated HCS Practice Management LLC, but not pay those withholdings to the IRS. The indictment charges that instead, the conspirators used the funds to cover the business’s operating expenses and their personal expenses. When the IRS made efforts to collect the payroll taxes due, Celentano and his coconspirators allegedly thwarted its efforts by using a nominee entity to pay employees, and making fraudulent representations to the IRS about who was responsible for paying the taxes. According to the indictment, Celentano willfully failed to pay over approximately $216,700 in payroll taxes that were owed.
If convicted, Celentano faces a statutory maximum sentence of five years in prison for each tax evasion and conspiracy charge, three years in prison for each count of failure to pay over employment taxes, and a statutory maximum sentence of one year on each count of willful failure to file his own tax returns. The defendant also faces a period of supervised release, restitution and monetary penalties.
An indictment merely alleges that crimes have been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Trial Attorneys Mark McDonald and Eric C. Schmale 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.
U.S. Attorney David C. Joseph Announces Launch of Northwest Louisiana Human Trafficking Task ForceRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced today the creation and launch of the Northwest Louisiana Human Trafficking Task Force, which held its first meeting this morning. The task force, formulated and led by the United States Attorney’s Office and Bossier Parish Sheriff’s Office, is a collaboration of federal, state, and local law enforcement agencies and prosecutors, along with local non-governmental victim services organizations, including civic, faith-based, and social services organizations.
Members of the task force will work collectively to identify, investigate and prosecute criminals using a victim-centered approach, provide victims/survivors with assistance, offer training to law enforcement and service providers, and increase public awareness about human trafficking throughout northwest Louisiana. The task force will be led by the U.S. Attorney’s Office Human Trafficking Coordinator, Assistant U.S. Attorney Earl M. Campbell, and will meet monthly to share information, coordinate investigations, and discuss potential matters and active cases in preparation of prosecution.
The Northwest Louisiana Human Trafficking Task Force consists of representatives from the U.S. Attorney’s Office, Federal Bureau of Investigation (FBI) and its Child Exploitation and Human Trafficking Task Force, Homeland Security Investigations, U.S. Marshal’s Service, U.S. State Department’s Diplomatic Security Service, U.S. Department of Labor, Office of Inspector General, Louisiana Attorney General Jeff Landry, Louisiana Alcohol and Tobacco Control, Louisiana State Police, Bossier/Webster Parish District Attorney’s Office, Caddo Parish District Attorney’s Office, Bossier Parish Sheriff’s Office, Caddo Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Webster Parish Sheriff’s Office, Bossier City Marshal’s Office, Bossier City Police Department, and Shreveport Police Department.
Additionally, the task force will work in collaboration with numerous non-governmental victim advocate organizations, such as Purchased: Not for Sale, Caddo Parish Juvenile Services, The Center for Children and Families, Department of Children & Family Services, FREE Coalition, Gingerbread House – Bossier, The Hub, Louisiana Office of Juvenile Justice, United Way of Northwest Louisiana, and Volunteers for Youth Justice CASA Program. Task force meetings tailored for the non-governmental organizations will be hosted quarterly by the U.S. Attorney’s Office.
“Human trafficking is a crime that involves the systematic abuse of individual rights, freedom, and human dignity,” said U.S. Attorney David C. Joseph. “This task force will coordinate multiple entities and agencies, and help our citizens effectively battle this evil in northwest Louisiana. I want to thank our partners in this effort who have committed their resources to protect victims, prevent human trafficking, and apprehend and prosecute traffickers who exploit their victims for financial gain.”
“While we live in a good community, we know that this does go on. Most of these victims have no hope or means to get out of these situations,” said Louisiana Sheriff’s Association President, Bossier Parish Sheriff Julian Whittington. “Bossier Parish Sheriff’s Office is proud to be a part of the federal, state and local efforts to combat human trafficking.”
“Investigating human trafficking is a national priority of the FBI and we continue to take a proactive approach to identify human traffickers involved with the exploitation of adults and children alike,” said FBI Special Agent in Charge Bryan Vorndran. “Through this effort we are committed to providing victims the resources they need to improve their situation and continue to bring human traffickers to justice.”
To report suspected human trafficking or to obtain resources for victims, please call the National Human Trafficking Hotline at 1-888-373-7888, text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll free phone number, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English and Spanish, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
The National Human Trafficking Hotline connects victims and survivors of sex and labor trafficking with services and support. The National Hotline also receives tips about potential situations of sex and labor trafficking, and will facilitate sharing that information with the Northwest Louisiana Human Trafficking Task Force. Through information received by the National Hotline, law enforcement authorities can connect investigations that span jurisdictions across the country.
To learn more about the National Resource Hotline, visit: www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit: www.justice.gov/humantrafficking.
For more information about the Northwest Louisiana Human Trafficking Task Force, please contact AUSA Earl Campbell or Victim Coordinator Vicki Chance at 318-676-3600.
# # #
Ravenna woman charged with embezzling almost $500,000 from former employerRead the Press Release
A Ravenna, Ohio woman was charged with bank fraud for allegedly embezzling approximately $490,000 from her former employer. Victoria A. Ladd, age 50, is alleged to have used her employment position, which allowed her access to company funds and bank accounts, to write checks to herself that she then cashed or deposited into her personal bank accounts. The stolen funds were then allegedly used to pay her personal expenses.
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 preceding the indictment was conducted by the FBI. The case is being prosecuted by Assistant United States Attorney Brendan D. O’Shea.
An information 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.
Ohio man admits to plotting July 4th attack in Cleveland as part of plot to provide support to al QaedaRead the Press Release
A Maple Heights man pleaded guilty to crimes related to his plot to launch a terrorist attack in Cleveland on Independence Day.
Demetrius Nathaniel Pitts, aka Abdur Raheem Rafeeq, aka Salah ad-Deen Osama Waleed, 50, pleaded guilty to attempting to provide material support to a foreign terrorist organization, threats against the President of the United States and threats against family members of the President of the United States.
Pitts is scheduled to be sentenced on February 11, 2020. Under the terms of his guilty plea, Pitts is likely to be sentenced to 14 years in prison followed by a lifetime of supervised release.
“This defendant admitted to plotting an attack on families and children in downtown Cleveland on Independence Day, as well as making threats against the President and his family,” U.S. Attorney for the Northern District of Ohio Justin Herdman said. “He planned to inflict pain and terror on the day we celebrate our nation’s most cherished freedoms. We remain committed to protecting our nation from people who adhere to ideologies that promulgate violence.”
“Pitts has acknowledged his desire and plan to commit a terrorist attack supporting al-Qaeda in Cleveland during the July 4th parade, the very day innocent citizens would be celebrating the freedoms we have in this country,” FBI Special Agent in Charge Eric B. Smith said. “The FBI thanks the public for reporting individuals espousing their radical beliefs that threaten our way of life. Law enforcement reminds the public, if you see something, say something, we must interrupt plans for violent attacks before they occur.”
According to an affidavit filed in the case, between 2015 and 2017, Pitts expressed anti-American sentiments and expressed a desire to recruit people to kill Americans. The defendant expressed a desire to meet with an al Qaeda “brother” and in June he was introduced to an FBI employee acting in an undercover capacity (UCE), who Pitts believed was such a “brother.”
Pitts and the UCE met in Walton Hills, Ohio, in 2018, where they discussed launching an attack for al Qaeda during the July 4th holiday.
Pitts said: “I’m trying to figure out something that would shake them up on the 4th of July.” He later stated: “What would hit them at their core? Blow up in the, have a bomb blow up in the 4th of July parade.”
Pitts searched Google for a map of downtown Cleveland. After learning the fireworks would be launched from Voinovich Park, Pitts said: “Oh there you go. Oh yeah.” He was also pleased the park was near the U.S. Coast Guard station, the Army Corps of Engineers, and the Celebrezze Federal Building.
The meeting concluded with Pitts indicating to the UCE that he would travel to downtown Cleveland soon to take photographs and videotape footage as part of surveillance efforts of Voinovich Park and the U.S. Coast Guard station. He also expressed a desire to take a tour of the U.S. Coast Guard station to gain as much information as he could about the layout of the facility.
On June 25, Pitts met with an FBI confidential human source (CHS) in Maple Heights, Ohio, to retrieve items used to conduct surveillance for the July 4th attack.
On June 26, Pitts contacted the UCE via text message and relayed that he had completed the reconnaissance of the designated spots in downtown Cleveland and that he desired to “destroy the government.”
Pitts also indicated he intended to travel to Philadelphia, since Philadelphia is his hometown and he knows it best. Pitts indicated it was his “job” to “go look at the base of the ground” and that it was up to other “brothers” to complete other parts of the job.
On June 27, Pitts met with the CHS and turned over the phone that contained the reconnaissance photos and videos, so they could be provided to the al Qaeda brothers.
Later on June 27, Pitts and the UCE met in Maple Heights then drove to downtown Cleveland, where they discussed the impending July 4th bombing.
“And I’m gonna be downtown when the – when the thing go off. I’m gonna be somewhere cuz I wanna see it go off,” Pitts said.
A search of the phone that Pitts provided to the CHS revealed that he made two videos in which he pledged allegiance. He stated, in part: “We serve Allah . . . We fight our enemies. We destroy them and destroy those who try to oppose…”
The phone also had four videos taken by Pitts that show him walking down East 9th Street in Cleveland, pointing out potential targets such as the federal building, the Coast Guard station and St. John’s Cathedral, which he said could be taken “off the map.”
On July 1, Pitts met with the UCE in Garfield Heights, Ohio, for Pitts to explain his plan for Philadelphia. Pitts said he planned to travel there to conduct reconnaissance for a future attack in Philadelphia. Pitts stated a truck bomb packed with explosives, such as the one used in Oklahoma City, Oklahoma, would be the best way to cause maximum damage.
Pitts was reminded by the UCE that people would die and body parts would by flying around. Pitts responded “I don’t care” and that he had “no regrets,” would be able to “go to sleep” and “I don’t give a (expletive).”
Pitts also pleaded guilty today to threatening to kill the President of the United States and his immediate family members, namely his daughter and son-in-law.
The FBI-Cleveland Division’s Joint Terrorism Task investigated the case, which is being prosecuted by Assistant U.S. Attorneys Michelle Baeppler and Jerry Teresinski of the Northern District of Ohio, and Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.
Justice Department Announces Procurement Collusion Strike Force: a Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
The Justice Department announced today the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding.
At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.
Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative. “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen. “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”
“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim. “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”
The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country. Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process. In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.
“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency. “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force. We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”
“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Investigative Division Assistant Director Terry Wade. “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”
“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General. “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”
The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts. In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea. The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice. In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements. This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.
The PCSF’s 13 U.S. Attorney partners include:
- Nicola T. Hanna, Central District of California
- McGregor Scott, Eastern District of California
- Jason R. Dunn, District of Colorado
- Jessie K. Liu, District of Columbia
- Ariana Fajardo Orshan, Southern District of Florida
- Byung J. “BJay” Pak, Northern District of Georgia
- John R. Lausch, Jr., Northern District of Illinois
- Matthew Schneider, Eastern District of Michigan
- Geoffrey S. Berman, Southern District of New York
- David M. DeVillers, Southern District of Ohio
- William M. McSwain, Eastern District of Pennsylvania
- Erin Nealy Cox, Northern District of Texas
- G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
- Department of Defense Office of Inspector General
- Federal Bureau of Investigation
- General Services Administration Office of Inspector General
- Department of Justice Office of the Inspector General
- U.S. Postal Service Office of Inspector General
The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.
Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].
Joint Statement from Department of Justice, DOD, DHS, DNI, FBI, NSA, and CISA on Ensuring Security of 2020 ElectionsRead the Press Release
Attorney General William Barr, Secretary of Defense Mark Esper, Acting Secretary of Homeland Security Kevin McAleenan, Acting Director of National Intelligence Joseph Maguire, FBI Director Christopher Wray, U.S. Cyber Command Commander and NSA Director Gen. Paul Nakasone, and CISA Director Christopher Krebs today released the following joint statement:
“Today, dozens of states and local jurisdictions are hosting their own elections across the country and, less than a year from now, Americans will go to the polls and cast their votes in the 2020 presidential election. Election security is a top priority for the United States Government. Building on our successful, whole-of-government approach to securing the 2018 elections, we have increased the level of support to state and local election officials in their efforts to protect elections. The federal government is prioritizing the sharing of threat intelligence and providing support and services that improve the security of election infrastructure across the nation.
In an unprecedented level of coordination, the U.S. government is working with all 50 states and U.S. territories, local officials, and private sector partners to identify threats, broadly share information, and protect the democratic process. We remain firm in our commitment to quickly share timely and actionable information, provide support and services, and to defend against any threats to our democracy.
Our adversaries want to undermine our democratic institutions, influence public sentiment and affect government policies. Russia, China, Iran, and other foreign malicious actors all will seek to interfere in the voting process or influence voter perceptions. Adversaries may try to accomplish their goals through a variety of means, including social media campaigns, directing disinformation operations or conducting disruptive or destructive cyber-attacks on state and local infrastructure.
While at this time we have no evidence of a compromise or disruption to election infrastructure that would enable adversaries to prevent voting, change vote counts or disrupt the ability to tally votes, we continue to vigilantly monitor any threats to U.S. elections.
The U.S. government will defend our democracy and maintain transparency with the American public about our efforts. An informed public is a resilient public. Americans should go to trusted sources for election information, such as their state and local election officials. We encourage every American to report any suspicious activity to their local officials, the FBI, or DHS. In past election cycles, reporting by Americans about suspicious activity provided valuable insight which has made our elections more secure. The greatest means to combat these threats is a whole-of-society effort.”
British Man Pleads Guilty to Wire Fraud and Aggravated Identity Theft in Brazen Scheme that Victimized Hundreds of Thousands across the CountryRead the Press Release
A British man living in Las Vegas, Nevada, pleaded guilty today to a scheme to abuse the personal and financial information of hundreds of thousands of victims in order to steal millions of dollars, the Department of Justice announced today.
Gareth David Long, 40, pleaded guilty to one count of wire fraud and one count of aggravated identity theft in federal court in Las Vegas before U.S. District Judge Andrew P. Gordon. The court set Long’s sentencing hearing for Feb. 20, 2020.
“The defendant took millions of dollars from numerous victims by misusing their personal and financial data,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “As demonstrated by this case, the Department of Justice is committed to protecting the public from those who unlawfully use personal and financial data to victimize American consumers.”
“Today’s events serve as another example of the unremitting dedication of the Postal Inspection Service to halt the devastating effects of identity theft. Those who engage in this type of fraud must learn they cannot escape detection and will be brought to justice,” said Inspector in Charge Delany De Leon-Colon of U.S. Postal Inspection Service’s Criminal Investigations Group at National Headquarters. “The guilty plea of Gareth Long has brought justice for all who suffered financial and emotional distress because of his actions.”
As part of his plea agreement, Long admitted that he created and deposited checks drawn on the checking accounts of more than 375,000 victims without authorization during a six-month period in 2013. Although Long had no authorization to charge the victims’ accounts, he represented to victims’ banks that the victims had authorized the debits. When account holders called to complain about the charges, Long instructed his employees to tell callers that they had authorized the charges in connection with an online payday loan application. Long used the proceeds of his fraud scheme to purchase a 5,400 square foot ranch and 23 acres of land in Texas, three airplanes, cars, a fire truck, and construction and farm equipment, as well as to pay other personal expenses.
In pleading guilty, Long admitted that, from 2008 through 2013, he operated a third-party payment processing company, V Internet Corp, which also did business as Altcharge and Check Process. As a payment processor, Long specialized in the creation and deposit of remotely-created checks (“RCCs”). An RCC is a check created not by the account holder, but by the third-party payee. In place of a signature, Long’s RCCs contained a typed statement claiming that the check was authorized by the account holder. Because of this payment processing activity, Long possessed the personal and financial information of hundreds of thousands of consumers whose accounts he debited in 2012 and earlier.
In January 2013, Long stopped acting as a third-party payment processor for other merchants, and simply started using RCCs to charge the bank accounts of consumers whose personal identifying information he had acquired over the previous five years, as well as other consumers whose information Long purchased in the form of “lead lists.” Long did not have authorization to charge any of these victims’ accounts.
From January through July of 2013, Long created and deposited more than 750,000 RCCs totaling more than $22 million. While approximately half of these RCCs were immediately reversed by victims’ banks, Long nevertheless succeeded in stealing approximately $11 million over a six-month period.
The U.S. Postal Inspection Service seized more than $2.9 million from Long’s company bank accounts. Postal Inspectors also seized property that Long purchased with the proceeds of his fraudulent activity, including three airplanes and the other vehicles and property described above. In addition, as part of his plea agreement, Long will forfeit the ranch and land he purchased in Texas.
The Department of Justice’s case is being handled by Trial Attorneys John W. Burke and Ehren Reynolds of the Consumer Protection Branch in coordination with the U.S. Attorney’s Office for the District of Nevada and with substantial investigative support from the U.S. Postal Inspection Service.
City Hall supervisor sentenced to 18 months in prison for extortion, bribery, and other crimesRead the Press Release
A City of Cleveland employee was sentenced to 18 months in prison for extortion, bribery, and other crimes after he accepted below-market improvements on his property from a city contractor he supervised and directed city projects to benefit himself. He was also ordered to pay restitution to the City of Cleveland and the Internal Revenue Service.
Khalil Ewais, 44, previously pleaded guilty to Hobbs Act extortion, receipt of a bribe, federal program theft, making false statements and filing false tax returns.
Ewais worked in the Mayor’s Office of Capital Projects (“MOCAP”) as the construction Section Chief in the Engineering and Construction division. In that capacity, he oversaw construction inspectors who inspect work on the city’s roads, bridges and sidewalks. He had a fiduciary duty to act in the best interests of the city and its citizens.
Ewais also owned and operated Pioneer Engineering, a private engineering and consulting business that did work for private clients. He also, along with his brother and other family members, owned commercial and residential rental properties in and around Cleveland.
Company 1 bid on jobs with the City of Cleveland. In April 2015, it was awarded a contract to perform most of the resurfacing of residential streets in certain wards of Cleveland for two years. Company 1 bid approximately $5.8 million for the work.
Ewais, in his job with the city, had input into whether Company 1 received additional contracts from the city. Company 1 could not receive payment for the work it did until Ewais certified it was done appropriately. He could also direct Company 1 to complete “corrective work” which would cost the company additional time and money.
In August 2016, Ewais contacted multiple companies, including Company 1, about paving the parking lot adjacent to Captain’s Grill, a property at 6104 Storer Ave. that he and his brother owned. Quotes for the work ranged from $48,923 to $59,152. Another contractor that Ewais supervised as part of the residential streets project declined to bid.
Ewais contacted an owner of Company 1 on August 10, 2016, about the estimate for the parking lot and said “I need it to be in the $25K range.” The owner quickly responded, “I will do the job for a lump sum of $26,000.”
Even though the parking lot work was a private job for Ewais, he sent an email form his City email address to another City official regarding the sewer connection at the border of Ewais’s property and West 61st Street, and stated that “E&C [MOCAP’s Division of Engineering & Construction] directed the roadway work and the connection fix in the street as part of the E&C Requirement Contract.” In fact, no City agency had directed any roadway work on West 61st Street at that time, and the work was related to Ewais’s private construction project.
Ewais also used his official position to cause the city to pay to repave most of the short public alleyway next to the parking lot, West 62nd Place. Around Oct. 25, 2016, Company 1— at the direction of Ewais — instructed a subcontractor to expand the scope of its work on the parking lot job to include milling and paving the part of West 62nd Place that adjoined the parking lot, but not the short additional distance to reach the home at the end of the alleyway.
In causing the city to pay for repaving most of West 62nd Place, Ewais avoided the established process for selecting streets to be resurfaced. The city, through a contractor, had sought to rate the condition of all the streets in Cleveland leading up to the 2016 resurfacing program. The city’s pavement management group, which included Ewais, met to discuss the lowest-rated streets in each ward to recommend to the City Council members which streets to include as part of the resurfacing program. The list of streets to be resurfaced never included West 62nd Place, which never even received a rating in the evaluation process.
Ewais, without the necessary approvals and authorizations, created a task order to have West 62nd Place, the small alleyway next to the Captain’s Grill parking lot, resurfaced. As a result of Ewais’s actions, the City of Cleveland paid a total for $10,938 to have West 62nd Place resurfaced.
The parking lot work was completed on Nov. 5, 2016, with the parking lot connected to West 62nd Place. Company 1 spent approximately $81,534 to complete the work. Ewais paid $31,336 for the work and Company 1 did not request any further payment.
In December 2017, Ewais lied to federal agents when he was questioned about the repaving of West 62nd Place, falsely claiming that a Cleveland City Councilperson had selected West 62nd Place to be repaved.
Ewais also filed false tax returns in which he failed to report all of his income from his rental properties.
This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, the U.S. Department of Housing and Urban Development – Office of Inspector General and the Cleveland Division of Police. It was prosecuted by Assistant U.S. Attorneys Chelsea S. Rice and Elliot Morrison.
Department of Justice Awards More than $165 Million in Public Safety Funding to the State of North CarolinaRead the Press Release
The Department of Justice today announced awards of more than $165 million to support public safety efforts in the state of North Carolina. The funding from the Office of Community Oriented Policing Services (COPS), Office of Justice Programs (OJP), and Office on Violence Against Women (OVW) will support violent crime reduction, opioid/substance abuse reduction efforts, school safety, victim services, transitional housing for domestic violence victims, law enforcement activities, justice mental health, and juvenile justice.
“The Department of Justice is very pleased to provide these critical public safety resources not only to local law enforcement agencies throughout North Carolina, but also to state-level agencies for the benefit of all North Carolinians,” said Director Phil Keith of the Office of Community Oriented Policing Services. “This funding will secure schools and protect kids from crime and violence across the state, and help to combat the scourge of deadly drugs running rampant in our communities.”
“Helping to protect North Carolinians — and all Americans — is job number one for the Department of Justice and the Office of Justice Programs,” said Principal Deputy Assistant Attorney General Katharine T. Sullivan of the Office of Justice Programs. “I’m proud to make these resources available to the brave crime-fighters, compassionate service providers and dedicated criminal and juvenile justice professionals who work so hard, day in and day out, to safeguard the communities of this great state.”
Director Phil Keith made the announcement in Raleigh on Friday morning along with Governor Roy Cooper, U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina, U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina, and North Carolina State Bureau of Investigation (SBI) Director Bob Schurmeier. The North Carolina Department of Public Safety received approximately $2.9 million from the COPS Office for investigating illicit activities related to heroin distribution and methamphetamine trafficking, and the North Carolina Department of Public Instruction (DPI) was the only state-level agency to receive funding to improve school security through the 2019 COPS School Violence Prevention Program. Additional school safety funding was provided to both the North Carolina SBI and DPI through OJP’s Bureau of Justice Assistance for behavioral threat assessments and the enhancement of the North Carolina State School Safety Center.
“North Carolina law enforcement will be better able to keep our communities safe and stop drug traffickers with this vital funding,” said Governor Roy Cooper. “Federal support for local expertise is the right way to fight the opioid epidemic and to protect our schools. These grants will go a long way in making sure North Carolinians live in safe communities.”
“Supporting law enforcement at every level and all across the State of North Carolina goes to the heart of the mission of the U.S. Department of Justice,” said U.S. Attorney Robert J. Higdon Jr. "And these grants provide much needed resources and funding to law enforcement agencies as they work to protect our communities from violence, drug trafficking and any others who threaten our safety and security.”
“The grants announced today by the U.S. Department of Justice represent a significant investment in support of law enforcement and public safety in North Carolina,” said U.S. Attorney Matt Martin. “We are particularly pleased that grants in the Middle District will support school safety programs, the fight against opioid addiction, and the coordinated efforts under way to reduce gun violence from Durham to Winston-Salem and Rockingham County to Cabarrus County. These are critical priorities of all three U.S. Attorneys; to borrow an apt adage: we are putting our money where our mouth is.”
“These grants will allow SBI agents across North Carolina to more effectively partner with our police departments and sheriff’s offices to continue the fight against the opioid epidemic,” said SBI Director Bob Schurmeier. “Families in our state have suffered enormous pain and loss and we grieve with them. We will use these resources to go after the cartels, traffickers and dealers and bring them to justice. We are grateful to the COPS Office and the US Department of Justice for their support of North Carolina and the State Bureau of Investigation.”
A full list of COPS awards is available online at https://cops.usdoj.gov/grants. OJP awards, organized under specific grant programs, are available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. For OVW awards, visit https://www.justice.gov/ovw/awards.
About the Office of Community Oriented Policing Services:
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.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
About the Office on Violence Against Women:
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Human Smuggler Indicted on U.S. Charges and Arrested as Part of Brazilian Takedown of Significant Alien SmugglersRead the Press Release
Earlier today, extensive coordination and cooperation efforts between United States and Brazilian law enforcement authorities culminated in the Brazil Federal Police (DPF) conducting a significant enforcement operation to disrupt and dismantle a transnational alien smuggling organization, including the arrest on Brazilian charges of an alleged alien smuggler who has also been indicted in the United States. The alien smugglers targeted in this operation are alleged to be responsible for the illicit smuggling of scores of individuals from South Asia and elsewhere, into Brazil, and ultimately to the United States.
Saifullah Al-Mamun aka Saiful Al-Mamun, 32, was arrested in Brazil. Al-Mamun is charged in a superseding indictment unsealed today in the U.S. District Court for the Southern District of Texas – Laredo Division, charging him with eight conspiracy and alien smuggling counts. The enforcement operation included the execution of multiple search warrants and the additional arrests of seven Brazil-based human smugglers on Brazilian charges: Saifullah Al-Mamun, 32; Saiful Islam, 32; Tamoor Khalid, 31; Nazrul Islam, 41; Mohammad Ifran Chaudhary, 39; Mohammad Nizam Uddin, 28; and Md Bulbul Hossain, 36.
According to the indictment, Al-Mamun is alleged to have housed the aliens in São Paulo, Brazil and arranged for their travel through a network of smugglers operating out of Brazil, Peru, Ecuador, Colombia, Panama, Costa Rica, Nicaragua, Honduras, Guatemala, and Mexico to the United States. In return for smuggling the aliens into the United States, Al-Mumun and his two co-conspirators, are alleged to have arranged to be paid in Mexico, Central America, South America, Bangladesh, and elsewhere.
“Today’s indictment shows our commitment to prosecute here in the United States those alien smugglers who put our country’s public safety at risk by attempting to thwart our system of legal immigration,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “We will continue to collaborate with our foreign law enforcement partners to hold international human smugglers accountable for the threat they pose to the national security of Brazil, the United States, and other nations.”
“Transnational human smuggling organizations threaten the security of the United States,” said Special Agent in Charge Scott Brown of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Phoenix. “Through a significant joint effort with our domestic and international law enforcement partners, these arrests signify another victory as we continue to investigate and dismantle those who conspire to undermine our nation’s immigration laws for their own profit.”
Milon Miah, a Bangladeshi national who was residing in Tapachula, Mexico, was arrested Aug. 31 on arrival at George Bush Intercontinental Airport in Houston, Texas, to face charges in the superseding indictment for his role in the scheme to smuggle aliens into the United States. Moktar Hossain, 31, a Bangladeshi national formerly residing in Monterrey, Mexico, pleaded guilty on Aug. 27 for his role in the scheme to smuggle aliens to the United States for the purpose of commercial advantage or private financial gain.
Both the indictment against Al-Mamun and assistance provided by U.S. authorities to Brazilian law enforcement were coordinated under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities. HSI Phoenix led U.S. investigative efforts, working in concert with HSI Brasilia, HSI Laredo, the HSI Human Smuggling Unit ECT program, ICE’s Enforcement and Removal Operations, U.S. Customs and Border Protection National Targeting Center, the International Organized Crime Intelligence and Operations Center, the HSI Liaison to the U.S. Department of Defense, U.S. Southern Command, Operation CITADEL, BITMAP, and the National Targeting Center. The Justice Department, both Criminal Division’s HRSP and the Office of International Affairs, provided significant assistance in this matter.
Trial Attorneys James Hepburn, Erin Cox, and Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section are handling the U.S. investigation, with assistance from the U.S. Attorney’s Office for the Southern District of Texas.
The charges contained in the Al-Mamun indictment are merely allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colorado Tax Defier Sentenced to Prison for EvasionRead the Press Release
A homebuilder and the owner of Tarryall River Log Homes was sentenced to 60 months in prison yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented during the trial, Lawrence Martin Birk founded a sole proprietorship, Tarryall River Log Homes LLC, in 2000. Although the company, which sold and built log homes, was profitable, Birk did not voluntarily pay federal taxes on its income. When the Internal Revenue Service (IRS) began collection efforts, including visiting Birk at his home, he hired a tax firm to prepare eight years’ worth of delinquent tax returns. However, Birk concealed pertinent information from the tax firm, including over $400,000 of retirement distributions that he funneled through a sham company. After filing his delinquent tax returns, which omitted the retirement income, Birk still did not pay what the returns acknowledged was due and owing. Instead, he sent the IRS threatening correspondence that espoused the frivolous tax arguments of known tax defier organizations.
After being notified that the IRS intended to seize money from his bank accounts for taxes owed, Birk took steps to shield his money against the IRS’ collection efforts. Immediately or shortly after depositing funds into his bank account, Birk purchased cashier’s checks to reduce his balance and impede the IRS’s ability to seize the money. Birk’s outstanding tax liabilities, including taxes, interest, and penalties, were over $2 million for 1998 to 2005. He has not filed returns or made any tax payments for the 2006 through 2018 tax years. To date, his debt is more than $3.5 million.
In addition to the term of imprisonment, Judge Blackburn also ordered Birk to serve three years of supervised release and to pay restitution to the IRS in the amount of $1,858,826.
Principal Deputy Assistant Attorney General Zuckerman commended the IRS agents who conducted the investigation, and Tax Division Assistant Chief Elizabeth C. Hadden, Trial Attorney Christopher Magnani, and Paralegal Specialist Saundra Burgess, who prosecuted the case.
Texas Man Pleads Guilty to Fraud Scheme Involving Fake Letters of Credit and Bank DocumentsRead the Press Release
A Texas man pleaded guilty today to defrauding victims around the United States by selling them fake “standby letters of credit” and other forged and fraudulent bank documents.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office made the announcement.
James Pierce, 43, of Spring, Texas, pleaded guilty to a three-count indictment charging him with wire fraud and conspiracy to commit wire fraud before Chief Judge Beryl A. Howell of the District of Columbia. Sentencing is scheduled for Jan. 10, 2020, before Judge Howell.
As part of his guilty plea, Pierce admitted that he and his co-conspirators falsely represented to their victims that they had a relationship with a bank located in the Dominican Republic (“Bank 1”), that they could use to secure financing for the victims’ large commercial transactions. In exchange for six-figure fees paid by the victims, the defendant and his co-conspirators falsely promised that the victims could gain access to credit at Bank 1. They further represented that Bank 1 would issue Society for Worldwide Interbank Financial Telecommunication (SWIFT) inter-bank messages to banks designated by the victims, showing that the victims had access to such credit. In reality, the defendant and his co-conspirators had no such relationship with Bank 1, and provided the victims with fake Bank 1 documentation falsely showing that it had transmitted the promised bank instruments. When the victims did not receive their SWIFT messages, the defendant and his co-conspirators gave the victims excuses and false statements, and in several instances, fraudulently induced the victims to pay additional money to have their bank documentation “re-issued” – which also never happened. Pierce also used a website and email address at jpierceinvestments.com to carry out the fraud.
The FBI investigated the case. Trial Attorney Blake Goebel and Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section are prosecuting the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.
Shelby County Man Sentenced for Failure to Register in the State of Alabama as a Sex OffenderRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a Shelby County man on a charge of failure to register as a sex offender, announced Northern District of Alabama United States Attorney Jay E. Town and United States Marshal Martin Keely.
United States District Judge Abdul K. Kallon sentenced RICKY DION ODOM, 47, of Shelby County, to 24 months incarceration for failure to register as a sex offender to run consecutive to Odom’s probation revocation in Louisiana. Odom pled guilty in July 2019.
“Failure to register as a sex offender is not only a matter of public safety, but it is our primary mechanism by which every member of the community can learn of sex offenders living among us.,” Town said. “Sex offenders who flee to another state, and violate the law by not registering will be caught, will be prosecuted, and will face incarceration. My office will continue to put the safety of children at the forefront, now more than ever.”
According to court documents, Odom is required to register under the Sex Offender Registration and Notification Act (SORNA). On or about November 1, 2018 and continuing until on or about February 4, 2019, Odom traveled from the State of Louisiana to the State of Alabama and knowingly failed to register as required by SORNA.
In addition to the term of imprisonment imposed, Odom was ordered to serve five years of supervised release.
United States Marshal Service for the Northern District of Alabama, Middle District of Alabama, Eastern District of Louisiana, Northern District of Florida, and Gulf Coast Regional Fugitive Task Force investigated the case along with the assistance of St. Tammany Parish (LA) Sheriff’s Office, Okaloosa County (FL) Sheriff’s Office, Jackson County (AL) Sheriff’s Office, Shelby County (AL) Sheriff’s Office, and the Alabama Department of Conservation and Natural Resources, which Assistant United States Attorney R. Leann White prosecuted.
Outcome Health Agrees to Pay $70 Million to Resolve Fraud InvestigationRead the Press Release
ContextMedia Health LLC, which operates under the trade name Outcome Health (Outcome), a digital provider of medical information and advertising in doctors’ offices, has agreed to a resolution with the Department of Justice by which it will pay $70 million to victims of a fraud scheme that targeted its clients, lenders and investors.
Outcome, a privately held company headquartered in Chicago, Illinois, admitted in resolution documents that from 2012 to 2017, former executives and employees of the company perpetrated a scheme to defraud its clients—most of which were pharmaceutical companies—by selling advertising inventory that it did not have.
“Outcome Health deceived its lenders and investors, and overbilled its clients, by fraudulently misrepresenting both the quality and quantity of its advertising services and concealing those misrepresentations from auditors,” said Principal Deputy Assistant Attorney General John P. Cronan. “Today’s resolution demonstrates the Criminal Division’s unyielding commitment to making whole victims of fraud.”
“Outcome’s payment of $70 million is an appropriate resolution for the corporate entity given the misconduct of executives and employees acting on its behalf,” said Assistant U.S. Attorney Brian Hayes, Chief of the Criminal Division for the Northern District of Illinois. “This resolution demonstrates that there are significant consequences for businesses whose executives and employees engage in fraud.”
“For five years, employees of Outcome Health purposely failed to deliver on advertising campaigns and engaged in a pattern of misrepresentations to conceal their fraud,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “This resolution demonstrates the FBI’s commitment to working with its prosecutorial and investigative partners to ensure that justice is done.”
“Today’s agreement holds a healthcare technology company accountable for systematically committing fraudulent business practices for financial gain over many years,” said Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG). “The FDIC-OIG is committed to investigating such corporate corruption which harms lending institutions, investors, customers, and competitors. We remain dedicated to working with our law enforcement partners to investigate those who commit such misconduct.”
Outcome admitted that as a result of its practice of selling clients inventory it did not have, it under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. To conceal the under-deliveries, Outcome employees at the time falsified affidavits and proofs of performance to make it appear the company was delivering advertising content to the number of screens in its clients’ contracts. Outcome executives and employees during that time also inflated patient engagement metrics regarding how frequently patients engaged with Outcome’s devices. Furthermore, an executive at the time altered a number of studies presented to clients to make it appear that the campaigns were more effective than they actually were, Outcome admitted.
Outcome further admitted that its under-delivery on advertising campaigns resulted in a material overstatement of its revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because executives and employees at the time fabricated data to conceal the under-deliveries from the auditor. Outcome used the inflated revenue figures in its 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017, it admitted.
The Department and Outcome entered into a non-prosecution agreement (NPA) to resolve this matter. Outcome’s obligations under the agreement will have a term of three years, unless the term is modified by the government. Under the terms of the NPA, Outcome and its current parent company, Outcome Health LLC (Outcome Parent), committed to compensating the pharmaceutical client victims in the amount of $70 million, approximately $65.5 million of which has already been made through a combination of cash payments and in-kind services, and to set aside an additional $4.5 million to compensate any additional pharmaceutical clients who have not yet been made whole. The NPA does not require Outcome and Outcome Parent to provide compensation to lenders and investors who were victims of Outcome’s scheme, however, because many of those lenders and investors are now the companies’ new owners. Under the terms of the NPA, Outcome and Outcome Parent also agreed to cooperate with the government’s ongoing investigation of individuals, to report evidence or allegations of U.S. federal law to the Department, and to enhance their existing compliance program and internal controls, where necessary and appropriate, to ensure they are designed to detect and deter violations of U.S. federal law.
The Department reached this resolution based on a number of factors, including Outcome and Outcome Parent’s ongoing cooperation with the United States and for taking extensive remedial measures. For example, Outcome no longer employs the executives or employees who were involved in the wrongdoing, and Outcome and Outcome Parent made significant improvements to address and improve the reliability of reporting on advertising campaign delivery, including hiring third parties to audit all of their advertising campaigns.
The FBI and FDIC-OIG are investigating the case. Assistant Chief William E. Johnston and Trial Attorney Kyle C. Hankey of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew F. Madden of the Northern District of Illinois are prosecuting the case.
Justice Department Requires Divestiture to Resolve Antitrust Concerns in Symrise's Acquisition of IDF and ADFRead the Press Release
The Department of Justice announced today that it will require Symrise AG to divest its chicken-based food ingredient manufacturing facility in Banks County, Georgia, in order to proceed with its proposed $900 million acquisition of International Dehydrated Foods LLC (IDF) and American Dehydrated Foods LLC (ADF) from IDF Holdco Inc. and ADF Holdco Inc.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the Department’s competitive concerns.
“This structural solution ensures that American consumers will continue to benefit from vigorous competition for a critical input used in everyday consumer staples like chicken soup, chicken broth and pet food,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Today’s settlement fully preserves competition in the sale of chicken-based food ingredients.”
According to the complaint, without the divestiture, the combined company would control over 75 percent of the domestic market for the manufacture and sale of chicken-based food ingredients. These ingredients are derived from chicken and sold to food manufacturers for use in a variety of human and pet food products. Without the required divestiture, the combined company likely would have been able to increase prices, reduce service and quality, and diminish innovation in the market for chicken-based food ingredients.
The divestiture required under the settlement would, if approved by the court, require Symrise to sell its brand-new facility in Banks County, Georgia, to Kerry Inc. or an alternate acquirer approved by the United States. Kerry is a global manufacturer of ingredients and recipe solutions for the food and beverage industry. This divestiture ensures that the buyer of the Banks County facility will be well positioned to compete vigorously with the merged company in the manufacture and sale of chicken-based food ingredients in the United States.
Symrise AG is a publicly listed company headquartered in Holzminden, Germany, with diversified operations in multiple lines of business. It manufactures and sells chicken-based food ingredients through its Diana Food and Diana Pet Food subsidiaries. In 2018, Symrise reported total revenue of approximately $3.5 billion.
IDF and ADF are privately held companies headquartered in Springfield, Missouri, whose operations include two chicken-based food ingredient plants in Alabama and Missouri. The companies’ combined 2018 revenue for chicken-based food ingredients used in human and pet food manufacturing was approximately $177 million.
As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register. Any person may submit written comments by mail concerning the proposed settlement within 60 days of its publication to Robert Lepore, Acting Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth St. N.W., Suite 8000, Washington DC 20530, telephone: 202-307-6349. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Texas Man Sentenced to Prison for Fraudulent Scheme to Solicit Hundreds of Thousands of Dollars in Contributions to Scam-PACSRead the Press Release
A Texas entrepreneur was sentenced to 36 months in prison today for fraudulently soliciting hundreds of thousands of dollars in political contributions through several scam-PACs that he founded and advertised as supporting candidates for the Office of the President of the United States during the 2016 election cycle.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Christopher H. Combs of the FBI’s San Antonio Division made the announcement.
Kyle Gerald Prall, 40, of Austin, Texas, previously pleaded guilty to one count of mail fraud before U.S. Magistrate Judge Andrew W. Austin of the Western District of Texas. He was sentenced today by U.S. District Court Judge Robert Pitman. In addition to the prison sentence, Prall was ordered to pay $548,428 in restitution and to forfeit $205,496.68 in proceeds obtained from his offense.
According to admissions made in connection with his plea, in 2015 and 2016, Prall created several political committees—including Feel Bern, HC4President and Trump Victory—which he advertised online to solicit contributions purportedly in support of presidential candidates in the 2016 election. Prall advertised that the contributions would be used to support the candidates in various ways, including paying for transportation for voters to the polls; paying for training for volunteers to make phone calls and canvass neighborhoods to support the respective candidates; paying to help voters obtain appropriate identification documents; and making contributions directly to one of the candidates and to other organizations supporting his campaign. In reality, Prall did not intend to, and did not, use the contributions for these purposes and instead transferred much of the money to himself through sham LLC accounts and used the other funds to generate additional contributions to his fraudulent political committees. Specifically, Prall admitted that of the $548,428 in contributions, he transferred $205,496 to himself through sham LLCs that he created for the purpose of moving the money, while contributing less than $5,100 to political causes. Additionally, Prall used the political committees’ debit cards to pay for his personal travel and entertainment expenses, such as travel to Jacksonville, Florida, and Belize; hotel stays in Miami Beach, Florida, and Austin, Texas; and to pay for food, Hookah, alcohol and bottle service, “club dances performed by entertainers,” room service, minibar charges, a deep-tissue massage, and a pet-cleaning fee.
The FBI’s San Antonio Division is investigating the case. Deputy Chief John D. Keller and Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section are prosecuting the case.
Ohio Glass Company Owner Sentenced to Prison for Not Paying Employment TaxesRead the Press Release
The owner of a Greenville, Ohio, glass company was sentenced to 14 months in prison today for failing to truthfully account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to information and documents provided to the court, Gail Cooper, 64, of Greenville, was the owner of Greenville Architectural Glass (GAG), which primarily installed glass in commercial and residential buildings for clients in Ohio. GAG paid wages to its employees during the years 2013 through 2015, and as the person responsible for GAG’s finances, Cooper was required to withhold federal income taxes and Social Security and Medicare taxes from the employees’ wages and pay those amounts over to the Internal Revenue Service (IRS). Cooper was also required to file quarterly employment tax returns with the IRS. Although Cooper caused GAG to withhold taxes from employees’ wages, she neither filed the required quarterly returns for the first quarter of 2013 through the second quarter of 2015, nor paid the withheld amounts over to the IRS. Cooper also failed to pay over to the IRS unemployment taxes. In all, Cooper caused more than $280,000 in payroll taxes not to be paid.
Cooper also filed false individual income tax returns for 2008, 2009, and 2010, on which she understated GAG’s gross receipts and overstated its expenses. Cooper caused GAG’s bookkeeper to manipulate and delete entries in the company’s accounting records. Specifically, she directed the bookkeeper to delete invoices from the software after GAG received payment from a client to make it appear as if GAG had not received the payment. Cooper also paid personal expenses with business funds, including utility bills for her residence and rental properties, and caused these to be classified as business expenses. After filing fraudulent returns for 2008-2010, Cooper did not file any individual income tax returns for the next several years. In total, Cooper’s conduct caused a tax loss of $587,516 to the United States.
In addition to the term of imprisonment, U.S. District Judge Thomas M. Rose ordered Cooper to serve two years of supervised release and pay restitution to the IRS in the amount of $659,262.39.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who investigated the case, and Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl of the Tax Division, who are prosecuting the case. Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Southern District of Ohio for their assistance in this matter.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Guam Ambulance Company Executives Plead Guilty to Medicare and TRICARE Fraud and Money Laundering SchemeRead the Press Release
Two former owners and an employee of an ambulance services provider headquartered in Guam pleaded guilty yesterday for their roles in a health care fraud and money laundering scheme that resulted in a loss to the United States of approximately $10.8 million. This is one of the largest single Medicare ambulance fraud cases prosecuted nationwide.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Shawn N. Anderson of the Districts of Guam and the Northern Mariana Islands, Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office, Special Agent in Charge Justin Campbell of IRS Criminal Investigation’s (IRS-CI) Seattle Field Office and Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
Clifford P. Shoemake, 63, of Guam, Casey C. Conner, 60, of Saipan, and Nicholas A. Shoemake, 31, of Guam, the former owners and an employee, respectively, of Guam Medical Transport (GMT), pleaded guilty before U.S. District Judge Frances Tydingco-Gatewood of the District of Guam, to one count of conspiracy to commit health care fraud and one count of conspiracy to engage in monetary transactions with the proceeds of specified unlawful activity. The defendants are scheduled to be sentenced on Jan. 29, 2020.
Medicare and TRICARE are federal health benefit programs, which, under certain conditions, reimburse providers for medically necessary, non-emergency, scheduled ambulance transportation to and from dialysis treatments, provided to beneficiaries with end stage renal disease (ESRD). Ambulance services are medically necessary when provided to such beneficiaries who cannot be transported by any other means without endangering their health, or were bed confined before, during and after the transportation.
According to their admissions at the plea hearing, from approximately March 11, 2010, to approximately March 21, 2014, the defendants engaged in a conspiracy to defraud Medicare and TRICARE by submitting claims for reimbursement for medically unnecessary ambulance services that GMT provided to patients with ESRD. The defendants admitted they were aware that GMT was transporting patients who did not qualify for ambulance transportation under applicable Medicare and TRICARE regulations and guidelines, with which they had failed to familiarize themselves. Specifically, the defendants admitted they were aware that many of GMT’s patients were not bed-confined, and did not have acute medical conditions that would otherwise qualify them for ambulance transportation. As part of the scheme, the defendants directed GMT employees to remove from internal documents references to GMT patients’ ability to walk because they knew that Medicare and TRICARE would not provide reimbursement for the patients. The defendants further admitted they were aware of, but failed to address, concerns about GMT’s Medicare and TRICARE billing practices raised by other GMT employees. The conspiracy resulted in improper payments to GMT of approximately $10.8 million, the defendants admitted.
The defendants further admitted to conspiring to engage in money transactions involving the proceeds of their health care fraud scheme. Specifically, they admitted that they used the proceeds of their health care fraud scheme to pay for personal expenses, such as vacations, personal income taxes, a personal residence and other items. They then caused these expenses to be falsely categorized as business expenses of GMT, thereby improperly reducing GMT’s taxable income and GMT’s corresponding tax liability, they admitted.
To date, five former GMT owners and employees have pleaded guilty to their roles in defrauding Medicare and TRICARE in this scheme. One additional former employee pleaded guilty to obstructing justice by falsifying materials that GMT prepared in response to an HHS subpoena that was served on GMT in approximately September 2012.
The FBI, IRS-CI and HHS-OIG investigated the case. Senior Litigation Counsel John A. Michelich and Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marivic P. David of the Districts of Guam and the Northern Mariana Islands prosecuted the case.
Guam Ambulance Company Executives Plead Guilty to Medicare and TRICARE Fraud and Money Laundering SchemeRead the Press Release
Two former owners and an employee of an ambulance services provider headquartered in Guam pleaded guilty yesterday for their roles in a health care fraud and money laundering scheme that resulted in a loss to the United States of approximately $10.8 million. This is one of the largest single Medicare ambulance fraud cases prosecuted nationwide.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Shawn N. Anderson of the Districts of Guam and the Northern Mariana Islands, Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office, Special Agent in Charge Justin Campbell of IRS Criminal Investigation’s (IRS-CI) Seattle Field Office and Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
Clifford P. Shoemake, 63, of Guam, Casey C. Conner, 60, of Saipan, and Nicholas A. Shoemake, 31, of Guam, the former owners and an employee, respectively, of Guam Medical Transport (GMT), pleaded guilty before U.S. District Judge Frances Tydingco-Gatewood of the District of Guam, to one count of conspiracy to commit health care fraud and one count of conspiracy to engage in monetary transactions with the proceeds of specified unlawful activity. The defendants are scheduled to be sentenced on Jan. 29, 2020.
Medicare and TRICARE are federal health benefit programs, which, under certain conditions, reimburse providers for medically necessary, non-emergency, scheduled ambulance transportation to and from dialysis treatments, provided to beneficiaries with end stage renal disease (ESRD). Ambulance services are medically necessary when provided to such beneficiaries who cannot be transported by any other means without endangering their health, or were bed confined before, during and after the transportation.
According to their admissions at the plea hearing, from approximately March 11, 2010, to approximately March 21, 2014, the defendants engaged in a conspiracy to defraud Medicare and TRICARE by submitting claims for reimbursement for medically unnecessary ambulance services that GMT provided to patients with ESRD. The defendants admitted they were aware that GMT was transporting patients who did not qualify for ambulance transportation under applicable Medicare and TRICARE regulations and guidelines, with which they had failed to familiarize themselves. Specifically, the defendants admitted they were aware that many of GMT’s patients were not bed-confined, and did not have acute medical conditions that would otherwise qualify them for ambulance transportation. As part of the scheme, the defendants directed GMT employees to remove from internal documents references to GMT patients’ ability to walk because they knew that Medicare and TRICARE would not provide reimbursement for the patients. The defendants further admitted they were aware of, but failed to address, concerns about GMT’s Medicare and TRICARE billing practices raised by other GMT employees. The conspiracy resulted in improper payments to GMT of approximately $10.8 million, the defendants admitted.
The defendants further admitted to conspiring to engage in money transactions involving the proceeds of their health care fraud scheme. Specifically, they admitted that they used the proceeds of their health care fraud scheme to pay for personal expenses, such as vacations, personal income taxes, a personal residence and other items. They then caused these expenses to be falsely categorized as business expenses of GMT, thereby improperly reducing GMT’s taxable income and GMT’s corresponding tax liability, they admitted.
To date, five former GMT owners and employees have pleaded guilty to their roles in defrauding Medicare and TRICARE in this scheme. One additional former employee pleaded guilty to obstructing justice by falsifying materials that GMT prepared in response to an HHS subpoena that was served on GMT in approximately September 2012.
The FBI, IRS-CI and HHS-OIG investigated the case. Senior Litigation Counsel John A. Michelich and Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marivic P. David of the Districts of Guam and the Northern Mariana Islands prosecuted the case.
Department of Justice Awards over $2.3 Billion in Grants to Assist Victims NationwideRead the Press Release
The Office for Victims of Crime (OVC), a component of the Department’s Office of Justice Programs (OJP), has released awards totaling more than $2.3 billion to state victim assistance and compensation programs, funding thousands of local victim assistance programs across the country and providing millions in compensation to victims of crime.
OVC’s flagship formula grant program is supported by the Crime Victims Fund (the Fund), which was established under The Victims of Crime Act (VOCA). The Fund supports a broad array of programs and services that focus on helping victims in the immediate aftermath of crime and continuing to support them as they rebuild their lives. In FY18 alone, VOCA grants served over 6.3 million victims (a 24 percent increase over FY17) and paid more than $400 million in compensation claims. The Fund is financed by fines and penalties paid by convicted federal offenders and does not include tax dollars.
“Building on the historic amount of victim assistance and victim compensation funding awarded last year, these new awards have the potential to alter the landscape of the victims’ field, putting services and support within reach of every crime victim in America,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “Backed by Attorney General William Barr, whose commitment to crime victims is second to none, we are proud to make these resources available to help meet the emotional, psychological and financial needs that victims face in the aftermath of crime.”
The vast majority of the over $2.3 billion in victim assistance funding goes to approximately 6,000 local direct service programs, including children’s advocacy centers, domestic violence shelters, rape crisis centers, human trafficking and elder abuse programs, civil legal services, crime victims’ rights enforcement, as well as victim assistance positions in prosecutors’ offices and law enforcement departments.
State victim compensation programs will receive over $136 million to supplement the state funds that offset victims’ financial burdens resulting from crime. This compensation is often extremely vital to victims who face enormous financial setbacks from medical fees, lost income, dependent care, funeral expenses, and other costs.
“The services made available by this funding represent a lifeline for tens of thousands of survivors each month, many of whom otherwise would have no place to turn in a moment of profound crisis,” said Darlene Hutchinson, Director of OJP’s Office for Victims of Crime. “These awards will help service providers, as well as law enforcement agencies and prosecutor offices respond to the many emotional and material challenges that crime victims in our country face every day.”
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov. For a full database of OVC awardees, visit: https://www.ovc.gov/grants/grant_award_search.html.
Sanford Health Entities to Pay $20.25 Million to Settle False Claims Act Allegations Regarding Kickbacks and Unnecessary Spinal SurgeriesRead the Press Release
The Department of Justice announced today that hospital entities Sanford Health, Sanford Medical Center, and Sanford Clinic (collectively, Sanford), of Sioux Falls, South Dakota, have agreed to pay $20.25 million to resolve False Claims Act allegations that they knowingly submitted false claims to federal healthcare programs resulting from violations of the Anti-Kickback Statute and medically unnecessary spinal surgeries. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally-funded programs.
“Kickbacks can compromise a physician’s medical judgment, result in unnecessary procedures, and increase healthcare costs for everyone,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will continue to hold healthcare providers accountable when they violate the rules intended to safeguard the integrity of federal healthcare programs and the welfare of their beneficiaries.”
The settlement announced today resolves allegations that Sanford knew that one of its top neurosurgeons was improperly receiving kickbacks from his use of implantable devices distributed by his physician-owned distributorship (POD). Sanford allegedly received warnings from the neurosurgeon’s physician colleagues and others about the alleged kickback scheme and was aware of the heightened compliance risks associated with PODs. In addition, the neurosurgeon’s colleagues and others repeatedly warned Sanford that the neurosurgeon was performing medically unnecessary procedures involving the devices in which he had a substantial financial interest. The United States alleged that, despite these repeated warnings, Sanford continued to employ the neurosurgeon, continued to allow him to profit from the devices he used in surgeries performed at Sanford, and continued to submit claims to federal healthcare programs for these surgeries, including procedures that were medically unnecessary.
“Kickback schemes and other improper financial incentives create inherent conflicts of interest and warp the medical decision-making process,” said U.S. Attorney Ron Parsons for the District of South Dakota. “This office will continue to aggressively pursue anyone who colludes to violate federal law and compromise the integrity of our healthcare system.”
Contemporaneous with the civil settlement, Sanford entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Sanford maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicare and Medicaid claims at Sanford Medical Center. It also increases individual accountability by requiring compliance-related certifications from Sanford Medical Center’s board of directors and key executives.
“More than six years ago the Department of Health and Human Services Office of the Inspector General warned in a fraud alert that PODs were inherently suspect under the Anti-Kickback Statute. Unfortunately, these distributors remain questionable,” said Curt L. Muller, Special Agent in Charge, Office of Inspector General at the U.S. Department of Health and Human Services (HHS-OIG). “Patients in government healthcare programs rightly expect that surgeries are medically indicated, not performed to increase provider profits.”
The settlement resolves allegations originally brought in a lawsuit filed by Drs. Carl Dustin Bechtold and Bryan Wellman, surgeons at Sanford, under the whistleblower, or qui tam, provision of the False Claims Act, which allows private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $3.4 million of the settlement proceeds.
The settlement was the result of an investigation by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of South Dakota, and HHS-OIG. As part of the settlement, Sanford has agreed to cooperate with the Department of Justice in litigation related to alleged co-defendants, and the hospital system has taken various remedial steps, including terminating the employment of the neurosurgeon in question and prohibiting all Sanford physicians from profiting from their use of medical devices at Sanford.
The lawsuit is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Officials from the U.S., Canada and Mexico Participate in 2019 Trilateral Meeting in Ottawa to Discuss Antitrust EnforcementRead the Press Release
Assistant Attorney General Makan Delrahim of the U.S. Department of Justice Antitrust Division, President Alejandra Palacios of the Mexican Federal Economic Competition Commission, Federal Trade Commission Chairman Joseph J. Simons and Canadian Commissioner of Competition Matthew Boswell.The heads of the antitrust agencies of the United States, Canada and Mexico met today in Ottawa, Canada, to hold an annual dialogue on antitrust enforcement and policy priorities.
The meeting included Assistant Attorney General Makan Delrahim of the U.S. Department of Justice Antitrust Division, Federal Trade Commission Chairman Joseph J. Simons, Canadian Commissioner of Competition Matthew Boswell and President Alejandra Palacios of the Mexican Federal Economic Competition Commission.
The discussions covered a range of topics including enforcement and collaboration involving digital markets, updates on agency developments, international cooperation and challenges to antitrust enforcement faced by each agency.
“International collaboration is a vital part of the work of the Antitrust Division and it is especially important for us to maintain close relationships with our enforcement partners next door,” said Assistant Attorney General Delrahim. “Our shared tradition of cross-border collaboration helps ensure a competitive marketplace for consumers throughout North America.”
“As the economies of the U.S., Canada, and Mexico become increasingly interconnected, it is vital that we cooperate closely with our Canadian and Mexican counterparts on emerging digital economy competition matters and other issues of mutual concern,” said FTC Chairman Simons. “As today’s meeting demonstrates, our close cooperation can serve as a model for the world.”
The meetings build on the foundations built by the 1995 cooperation agreement between the United States and Canada, the 2000 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico. The agreements commit the antitrust agencies to cooperate and coordinate with each other to make their antitrust policies and enforcement as consistent and effective as possible.
Leader of the Castro Enterprise Involved in Armed Home Invasions that Targeted Victims of Indian and Asian Ancestry Sentenced to PrisonRead the Press Release
A Texas woman was sentenced to 37 years in prison for her role as the leader of several robbery crews that traveled across the United States in order to conduct armed home invasions of families of Indian and Asian descent. Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field office made the announcement.
Chaka Castro, 44, of Houston, Texas, was sentenced by U.S. District Court Judge Laurie J. Michelson of the Eastern District of Michigan, who presided over the trial. After a five-week trial, Castro was convicted of one count of Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, four counts of assault with a dangerous weapon in aid of racketeering and four counts of use of a firearm during and in relation to a crime of violence.
According to evidence presented at trial, from 2011 to 2014, Castro and her robbery crews committed a string of home invasions in Georgia, New York, Ohio, Michigan and Texas. The leader of the robbery crews was Castro, who would generate lists of robbery targets in various states around the county, specifically families of Asian and Indian ancestry, and then assign crews to carry out the armed robberies of these families within their homes. Once Castro assigned a crew to a particular area, members of the group would travel to that location, conduct surveillance and execute the robberies. The crews utilized a particular modus operandi in each of the robberies. They disguised their appearance with clothing and bandanas so that victims of their robberies would have difficulty identifying them. They would openly carry and brandish firearms to gain control of the victims and then immediately corral the victims, including children, into one location in the home. At least one robber would then restrain the victims with duct tape and threats of violence, as another partner would ransack the home in search of cash, jewelry and electronics to steal. The group organized their trips to involve multiple home invasion robberies over a series of days.
The FBI’s Ann Arbor Office investigated the case with the assistance of federal agencies including U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, U.S. Secret Service and local law enforcement agencies in Michigan, including Washtenaw County Sherriff’s Office, Ann Arbor Police Department and Canton Police Department; local law enforcement agencies in Ohio, including Beachwood Police Department; local law enforcement agencies in Georgia, including the Cobb County District Attorney’s Office, Cobb County Police Department, Gwinnett County Police Department, Duluth Police Department and Milton Police Department; local law enforcement agencies in New York, including Nassau County Police Department; the Tennessee Highway Patrol and local law enforcement agencies in Texas including Allen Police Department, Coppell Police Department, Flower Mound Police Department, Carrollton Police Department, Lewisville Police Department and Southlake Police Department.
Trial Attorneys Marianne Shelvey and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
Justice Department Welcomes Colorado Joining T-Mobile/Sprint SettlementRead the Press Release
Colorado is seeking to join the United States, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota in settling claims relating to the proposed merger of T-Mobile and Sprint, the Department of Justice announced today. The settlement requires a substantial divestiture package in order to enable a viable facilities-based competitor to enter the market. Further, the settlement will facilitate the expeditious deployment of multiple high-quality 5G networks for the benefit of American consumers and entrepreneurs.
“We are pleased that Colorado has left the New York and California litigation and is seeking to join our settlement,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The merger, with the divestitures, will benefit Coloradoans and American consumers nationwide.”
The Department’s Antitrust Division and now eight co-plaintiff states have sued to block this transaction, and have agreed to settle the lawsuit based on the proposed settlement. That settlement, if approved by the court, would resolve the Justice Department’s and the co-plaintiff states’ competitive concerns.
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 the divestiture of certain spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available 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 builds out its own 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.
Departments of Justice and Housing and Urban Development Sign Interagency Memorandum on the Application of the False Claims ActRead the Press Release
Attorney General William P. Barr and Housing and Urban Development (HUD) Secretary Ben Carson today issued a Memorandum of Understanding (MOU) between the two agencies that sets prudential guidance on the appropriate use of the False Claims Act (FCA) for violations by Federal Housing Administration (FHA) lenders.
“This MOU sets forth a robust and collaborative process for deciding when to pursue False Claims Act cases to remedy material and knowing FHA violations,” said Attorney General Barr. “DOJ and HUD will work together to determine when HUD’s administrative remedies are sufficient, or other recourse is appropriate, to address harm to the borrower, the taxpayer, or the government. Importantly, this MOU is the product of the excellent working relationship that has developed between our two agencies in our shared pursuit of greater clarity and fairness.”
“This agreement clearly outlines our FHA mortgage program requirements, so they do not impede or discourage lenders from offering affordable FHA-insured loans to credit-worthy borrowers,” said Secretary Carson. “In taking these steps, we are fulfilling an important element our Housing Finance Reform Plan and making clear to all responsible lenders that FHA’s mortgage program is a program they should participate in. At the same time, HUD will not tolerate irresponsible or fraudulent lenders who defraud borrowers and taxpayers. We are thankful for the excellent relationship we have with our colleagues at the Department of Justice who have worked diligently with us on this effort and share our goal of advancing affordable housing finance while protecting the interests of taxpayers.”
As the MOU makes clear, HUD expects that FHA requirements will be enforced primarily through HUD’s administrative proceedings, but the MOU specifically addresses how HUD and DOJ, including the U.S. Attorneys’ Offices, will consult with each other regarding use of the FCA in connection with defects on mortgage loans insured by FHA. HUD will utilize the Mortgagee Review Board (MRB), which was created by statute and empowered to take certain actions for non-compliance by FHA lenders, to review and refer FCA claims. The MOU prescribes the standards for when HUD, through the MRB, may refer a matter to DOJ for pursuit of FCA claims, and also sets forth how DOJ and HUD will cooperate during the investigative, litigation, and settlement phases of FCA matters when DOJ receives a referral from a third party, such as in qui tam cases. The MOU also recognizes that application of the FCA requires, among other elements of proof, a material violation of HUD requirements, and DOJ attorneys will solicit HUD’s views to determine whether the elements of the FCA can be established.
This interagency understanding is intended to address concerns that uncertain and unanticipated FCA liability for regulatory defects led to many well-capitalized lenders, including many banks and credit unions statutorily required to help meet the credit needs of the communities in which they do business, to largely withdraw from FHA lending. For decades, FHA has been the hallmark product for the nation’s first time homebuyers. This important segment of the market currently constitutes over 80 percent of FHAs loans. Additionally, a third of FHA loans are made to minority borrowers. This has dramatically shifted FHA’s lender base during the last decade. Today, depository institutions originate less than 14 percent of FHA-insured mortgages, down significantly from approximately 45 percent in 2010.
The MOU is part of a comprehensive plan to bring greater clarity to regulatory expectations within the FHA program, and fulfills a key component of the HUD Housing Finance Reform Plan. In addition to the MOU, FHA is simplifying the certifications that lenders make in connection with the FHA program. The certifications will better track statutory requirements and address materiality and culpability considerations. FHA is also refining its defect taxonomy that it uses to assess the appropriate remedies for identified loan underwriting defects. Together, these new and revised components are intended to make affordable FHA-insured mortgages more accessible to qualified borrowers, reduce risks within the FHA program, and preserve appropriately tailored remedies.
Department of Justice Announces Pilot Program for Use of Body-Worn Cameras by Federally Deputized Task Force OfficersRead the Press Release
Today, the Department of Justice has announced a pilot program that will allow – for the first time – federally deputized task force officers to use body-worn cameras while serving arrest warrants, or other planned arrest operations, and during the execution of search warrants. The Department of Justice, through its law enforcement agencies, partners with state, local and tribal law enforcement on hundreds of federal task forces throughout the nation. Together, these task forces work to combat violent crime, stem the flow of illegal narcotics and arrest dangerous fugitives. Several of the Department’s partner state and local agencies require their officers to wear body-worn cameras and have requested their officers wear these cameras on federal task forces when the use of force is possible.
“I am pleased that this pilot program takes into account the interests and priorities of all the law enforcement agencies involved in federal task forces,” said Attorney General William P. Barr. “These are some of the most dangerous jobs in law enforcement, and I am grateful for the sacrifice of those who serve. The Department of Justice has no higher priority than ensuring the safety and security of the American people and this pilot program will continue to help us fulfill that mission.”
“ATF’s partnerships with local and state law enforcement are crucial to protecting our communities from those who commit violent crimes involving firearms, explosives, and arson; we continually strive to be the best possible partner,” said Acting Director Regina Lombardo of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF’s commitment to our partners includes adopting the appropriate use of technology to enhance effectiveness and accountability. ATF, FBI, DEA and the U.S. Marshals have worked closely with the Attorney General and leadership from local law enforcement agencies in the development of a pilot policy for the use of body-worn cameras by local officers participating in federal task forces. I look forward to implementation of this pilot as ATF continues to work with local and state law enforcement to remove the most violent offenders from our communities.”
“The Drug Enforcement Administration values its partnerships with state and local law enforcement agencies throughout the country, and we look forward to continued collaboration,” said Acting Administrator Uttam Dhillon of the Drug Enforcement Administration (DEA). “Task force officers working alongside DEA special agents play a critical role in safeguarding our communities from violent criminals, drug traffickers, and dangerous cartels, and their local knowledge and expertise are vital to making our streets safer.”
“We appreciate the Attorney General’s intentions to improve accountability through DOJ’s new body worn camera pilot policy,” said FBI Director Christopher Wray. “The FBI’s very mission is to protect the American public and uphold the Constitution. We value the continued support of our task force officers as our close collaboration is a vital part of that mission. It’s our hope this program will help us to fulfill our mission and build trust within our communities – a common goal among all of our task force partners.”
“The U.S. Marshals Service has long-standing and extremely successful partnerships with state and local law enforcement agencies throughout the country. These partnerships result in the arrest of nearly 100,000 violent fugitives each year, bringing immediate relief to communities and protecting the most vulnerable populations,” said United States Marshals Service (USMS) Director Donald Washington. “The USMS remains committed to assisting our task force partners in performance of the critical fugitive apprehension mission that contributes to the safety of our communities.”
The Department of Justice’s pilot program will go into effect in select cities on Nov. 1, 2019. The Department would like to thank ATF, the DEA, the FBI and the USMS, as well as all of the state and local law enforcement leaders that have provided input and guidance.
DEA to Accept Electronic Vaping Devices as Part of National Prescription Take Back DayRead the Press Release
United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI), will join the Drug Enforcement Administration (DEA) on October 26th for its 18th National Prescription Drug Take Back Day. The biannual event will be held from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including here in Guam and the NMI. This event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
For the first time, DEA will also accept vaping devices, cartridges – in addition to tablets, capsules, patches, and any other medication in solid forms – at any of its drop off locations. It is important to note that DEA cannot accept devices containing lithium-ion batteries. If batteries cannot be removed before drop off, please consult with stores that recycle lithium-ion batteries. DEA is doing all it can to help dispose safely of vaping devices and liquids to get these products off our streets and out of the hands of children.
Last April, citizens of Guam and the NMI turned in 675 pounds collectively. Nationwide, Americans turned in 469 tons (940,000 pounds) of prescription drugs at almost 6,300 sites operated by the DEA and more than 5,000 by its state and local law enforcement partners. Overall, in its 17 previous Take Back events, DEA and its partners have taken in over 12 million pounds—more than 5,900 tons of medication from circulation. The disposal service is free and anonymous; no questions asked.
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from home medicine cabinets. According to the Centers for Disease Control and Prevention, more than 46 Americans die every day from overdoses involving opioid prescriptions. Some opioid abusers move on from prescription drugs to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards to others and the environment. This initiative addresses the public safety and public health issues that surround drugs languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
The following sites in Guam and the NMI are designated to receive unused prescription drugs and vaping device products on Saturday, October 26, 2019, between 10:00 a.m. and 2:00 p.m.:
- Agana Shopping Center (across from Vitamin World)
- K-Mart (Entrance)
- Andersen Air Force Base Exchange (Inside Entrance)
- Naval Base Guam (Navy Exchange Food Court)
- Saipan Commonwealth Health Center (in front of the pharmacy)
- Rota Health Center
- Tinian Health Center
Contact DEA Resident Agent in Charge Edward Talbot at 671-472-7384 regarding any questions about prescription drug abuse and any concerns regarding drug-related activity on Guam or in the NMI.
For more information, go to www.dea.gov, www.DEATakeBack.com
Alabama Man Sentenced to over 16 Years in Federal Prison for Drug Trafficking and Illegal Possession of a FirearmRead the Press Release
Jackson, Miss. – James Lyles, 37, of Mobile, Alabama, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to serve 195 months in federal prison, followed by five years of supervised release, for possessing with intent to distribute 50 grams or more of methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration. Lyles was also ordered to pay a $1,500 fine.
On January 25, 2018, Mississippi Bureau of Narcotics agents were conducting surveillance on a residence in Jackson, Mississippi, believed to be involved in illegal drug distribution. While conducting the surveillance, agents observed a Jeep Liberty depart the residence. The vehicle was stopped for a traffic violation. The driver attempted to drive off, but was unable to do so. As a result, agents approached both sides of the vehicle and ordered the driver and passenger, James Lyles, out of the vehicle. While assisting Lyles out of the passenger side of the vehicle, agents discovered several bags of methamphetamine. Agents also discovered a .22 caliber pistol in the passenger door where Lyles was sitting. The methamphetamine was tested and determined to be 197 grams.
The case is the result of an extensive investigation, dubbed “Drama Queen” targeting illegal methamphetamine distribution in central Mississippi. The case was investigated by the Mississippi Bureau of Narcotics, Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, U.S. Marshals Service, Hinds County Sheriff’s Office, Jones County Sheriff’s Office, Jackson Police Department, Pearl Police Department and the Richland Police Department. It was prosecuted by Assistant United States Attorney Chris Wansley.
Third Freight Transportation Executive Pleads Guilty to Antitrust ChargeRead the Press Release
Francis Alvarez, owner of a large freight forwarding company, pleaded guilty to an antitrust charge for her role in a multi-year, nationwide conspiracy to fix prices for international freight forwarding services, the Department of Justice announced today.
According to a one-count felony charge filed in the Southern District of Florida in Miami, Florida, Alvarez and her co-conspirators agreed to fix, raise and maintain prices for freight forwarding services provided in the United States and elsewhere from at least as early as September 2010 until at least August 2014. Alvarez is president and owner of a Houston-based freight forwarding company.
In addition to admitting to participating in this conspiracy, Alvarez has agreed to pay a criminal fine and cooperate with the ongoing investigation. The terms of the plea agreement are subject to approval of the court. Alvarez will be sentenced at a later date.
Alvarez is the third individual to face charges for participating in this conspiracy. Two of Alvarez’s co-conspirators, Roberto Dip and Jason Handal, were charged and pleaded guilty in November 2018. In June 2019, Dip and Handal were sentenced to eighteen- and fifteen-month prison terms, respectively, for their roles in the scheme.
“Alvarez and her co-conspirators cheated American consumers shipping goods to Honduras by conspiring to raise prices and pocket the proceeds of their illegal scheme,” said Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division. “The Antitrust Division is committed to working with our law enforcement partners to protect those consumers and restore integrity to this market.”
“This is an example of businesses and their executives manipulating commerce and deceiving the American public for their own financial gain,” said Special Agent in Charge Bryan A. Vorndran of the FBI’s New Orleans Office. “Francis Alvarez and her co-conspirators violated U.S. antitrust laws. Using their knowledge and experience in the freight-forwarding trade, they exploited consumers through an elaborate price-fixing scheme. The FBI, along with our partners at the Department of Justice Antitrust Division, remain committed to upholding the Constitution and protecting consumers against fraud, deceit and illegal activity.”
Freight forwarders arrange for and manage the shipment of goods, including by receiving, packaging and otherwise preparing cargo destined for international ocean shipment.
Alvarez is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The ongoing investigation into price fixing in the international freight forwarding industry is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s New Orleans Field Office. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.
Owner of New York City Temporary Staffing Firms Indicted for Employment Tax FraudRead the Press Release
A federal grand jury in Brooklyn, New York, indicted a New York City resident yesterday on multiple counts of willfully failing to collect, truthfully account for, and pay over federal 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 the indictment, Steven Heppenheimer owned and operated temporary employment staffing businesses located in Long Island City, New York, including PTP Staffing Associates Inc. (PTP), and PPS Associates Inc. (PPS). As the alleged sole owner of PTP and PPS, Heppenheimer was required to collect, account for, and pay to the IRS federal employment taxes withheld from the wages of PTP and PPS employees. As alleged in the indictment, from 2013 through 2017, Heppenheimer failed to report more than $270,000 in employment taxes to the IRS.
If convicted, Heppenheimer faces a statutory maximum sentence of five years imprisonment for each count charged. He also faces substantial monetary penalties, supervised release, and restitution.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated this case, and Trial Attorneys Brittney Campbell and Ann Marie Cherry of the Tax Division, who are prosecuting this case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
United States Files Lawsuit Against State of California for Unlawful Cap and Trade Agreement with the Canadian Province of QuebecRead the Press Release
The United States today filed a civil complaint against the state of California, several of its officers, the California Air Resources Board, and the Western Climate Initiative Inc., for unlawfully entering a cap and trade agreement with the Canadian Province of Quebec.
“The state of California has veered outside of its proper constitutional lane to enter into an international emissions agreement. The power to enter into such agreements is reserved to the federal government, which must be able to speak with one voice in the area of U.S. foreign policy,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “California’s unlawful cap-and-trade agreement with Quebec undermines the President’s ability to negotiate competitive agreements with other nations, as the President sees fit.”
The Supreme Court has recognized that the interests of cities, counties and states, and the American people as a whole, requires the federal power in foreign relations to be reposed exclusively in the federal government, keeping it free from local interference.
According to the complaint, filed today in the Eastern District of California, the defendants have pursued or are attempting to pursue an independent foreign policy in the area of greenhouse gas regulation. The Constitution prohibits states from making treaties or compacts with foreign powers, yet California entered into a complex, integrated cap-and-trade program with the Canadian province of Quebec in 2013 without congressional approval.
California’s agreement with Quebec, which the Western Climate Initiative facilitates (and where the Western Climate Initiative’s board is run by California and Quebec governmental actors), interferes with the proper execution of these federal responsibilities. Accordingly, today’s complaint asks the court to uphold the exclusive role of the federal government in conducting our foreign policy by declaring the agreement — and related statutes and regulations —unconstitutional, and enjoining their operation.
Ryan A. Shores Appointed as Associate Deputy Attorney General and Senior Advisor for Technology IndustriesRead the Press Release
Deputy Attorney General Jeffrey A. Rosen today announced the appointment of antitrust litigator Ryan A. Shores as Associate Deputy Attorney General and Senior Advisor for Technology Industries. Shores will serve in the Office of the Deputy Attorney General, which oversees all of the Department’s civil and criminal litigating components, including the Antitrust Division. As previously announced, the Department has underway an antitrust review of market-leading online platforms.
“The addition of Associate Deputy Attorney General Ryan A. Shores for this important role reflects the significance of the Department’s review of competitive conditions among online platforms,” said Deputy Attorney General Jeffrey A. Rosen. “His years of high-stakes antitrust and litigation expertise will bring invaluable experience to the review as he works closely with our Antitrust Division.”
Previously, Associate Deputy Attorney General Shores was a partner at an international law firm. Earlier in his career, he served as a law clerk for Chief Justice William H. Rehnquist of the United States Supreme Court. He also clerked for Judge Kenneth F. Ripple of the U.S. Court of Appeals for the Seventh Circuit.
As previously announced, the Department of Justice’s review will “assess the competitive conditions in the online marketplace in an objective and fair-minded manner and … ensure Americans have access to free markets in which companies compete on the merits to provide services that users want.” The Department of Justice will vigorously seek to remedy any violations of law, if any are found.
Department of Justice to Publish Notice of Proposed Rulemaking to Comply Fully with DNA Fingerprint Act of 2005Read the Press Release
The Department of Justice today issued a notice of proposed rulemaking (NPRM) that would restore to the Attorney General the authority vested in him by the bipartisan DNA Fingerprint Act of 2005 to authorize and direct the Department of Homeland Security (DHS) to collect DNA samples from the non-United States persons it detains. Once implemented, this rule will facilitate federal, state, and local crime reduction and investigation efforts.
“The proposed rule change would help to save lives and bring criminals to justice by restoring the authority of the Attorney General to authorize and direct the collection of DNA from non-United States persons detained at the border and the interior by DHS, with the ultimate goal of reducing victimization of innocent citizens,” said Deputy Attorney General Jeffrey A. Rosen. “Today’s proposed rule change is a lawful exercise of the Attorney General’s authority, provided by Congress, to collect DNA samples from non-United States persons who are properly detained under the authority of the United States.”
As a result of this rule change, the Department of Justice will ensure that all federal agencies—including DHS—are in full compliance with the bipartisan DNA Fingerprint Act, which was a component of a larger legislative package that passed the House of Representatives by an overwhelming vote of 415 to four and the Senate by Unanimous Consent. The DNA Fingerprint Act provided the Attorney General with the exclusive authority to draft regulations to authorize and direct any federal agency to “collect DNA samples from individuals who are arrested, facing charges, or convicted or from non-United States persons who are detained under the authority of the United States.” 24 U.S.C. § 40702(a)(1)(A).
On Dec. 10, 2008, the Department of Justice published in the Federal Register a final rule implementing the collection of DNA samples under the DNA Fingerprint Act. That rule included a provision at 28 C.F.R. § 28.12(b)(4) that permitted DHS to exempt itself from collecting DNA samples from its non-United States citizen detainees by consulting with the Attorney General. Today’s proposed rule change would eliminate that exception, and restore to the Attorney General the plenary authority to authorize and direct federal agencies’ DNA collection efforts that Congress vested in him on an overwhelmingly bipartisan basis in the DNA Fingerprint Act.
Since Congress’ passage of the bipartisan DNA Fingerprint Act, the Federal Bureau of Investigation (FBI) has built a high-throughput DNA sample processing infrastructure through its Combined DNA Index System (CODIS). The CODIS database is a vital tool for federal, state, and local law enforcement investigations. All fifty states, the District of Columbia, Puerto Rico, and federal law enforcement participate in the national sharing of DNA profiles through CODIS. The FBI also has consistently reduced the operational burden for individual federal agencies to collect DNA through technological enhancements.
In advance of this rule change, the Department of Justice and DHS have been working collaboratively to initiate a pilot program for the collection of DNA from non-U.S. persons detained by DHS. As with all other DNA samples that federal agencies collect under the authority of the bipartisan DNA Fingerprint Act, the DNA samples that DHS collects from its non-United States person detainees will be entered into the Federal Bureau of Investigation’s Combined DNA Index System (CODIS). The FBI’s laboratory has the capacity to handle the increased input from DHS, and its capabilities can be scaled up to meet additional capacity. The FBI will provide DHS with the DNA collection kits, analyze the samples, and ensure that law enforcement agencies use the results in accordance with the FBI’s stringent CODIS privacy requirements.
Department of Justice Awards More than $85.3 Million in Grants to Address School ViolenceRead the Press Release
Today, the Department of Justice announced it has awarded more than $85.3 million to bolster school security — including funding to educate and train students and faculty — and support first responders who arrive on the scene of a school shooting or other violent incident.
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
The 2018 STOP School Violence Act authorized the Department of Justice to create a series of grant award programs under a School Violence Prevention Program. This year, the Department made 215 awards to schools, districts and other jurisdictions throughout the United States.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
More details about these individual award programs, as well as listings of individual 2019 awardees, can be found here.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
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.
Justice Department Awards over $273.4 Million to Improve Public Safety, Serve Crime Victims in American Indian and Alaska Native CommunitiesRead the Press Release
The Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.
“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”
President Trump is the first President to sign a proclamation recognizing acts of violence committed against American Indian and Alaska Native people, particularly women and children.
Two-hundred and thirty six grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.
The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.
CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.
The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.
Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.
A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://ojp.gov/newsroom/pressreleases/2019/factsheets/FY19_FINAL_Tribal%20Awards%20Fact%20Sheet.pdf.
Attorney General Barr announced the public safety funding for Alaska Native villages in a video teleconference with the Alaska Federation of Natives yesterday evening that can be viewed at:
https://www.justice.gov/opa/video/attorney-general-william-p-barr-gives-remarks-through-video-conference-alaska-federation.
Michigan Business Owner Pleads Guilty to Tax EvasionRead the Press Release
A Commerce Township, Michigan, resident pleaded guilty today in Detroit, Michigan to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Firas Hajjar owns and operates Your Fantasy Warehouse Inc. (YFW), an internet-only retail business that sells popular-culture shirts, sweaters, and other items. Hajjar provided fraudulent information to his accountant regarding corporate sales’ deposits for YFW, resulting in the filing of a false corporate return for 2012 underreporting YFW’s income. Hajjar also filed a false personal tax return for 2012, failing to report his full income from YFW.
United States District Court Judge Denise Page Hood scheduled sentencing for Jan. 28, 2020. Hajjar faces a maximum sentence of five years in prison, three years 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 Attorney Mark McDonald of the Tax Division, who is prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Justice Department Settles Immigration-Related Discrimination Claim Against Texas-Based National Restaurant Franchise OwnerRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with MUY Brands LLC, a San Antonio, Texas-based owner and operator of approximately 78 Taco Bell restaurant franchises in six states, and a related management company, MUY Consulting Inc. The settlement resolves the Department’s investigation into whether the companies violated the Immigration and Nationality Act (INA) by discriminating against lawful permanent residents because of their citizenship status when verifying their authorization to work in the United States.
"Employers cannot require that a worker provide more or different documents than necessary to legally prove work authorization based on the worker’s citizenship status or national origin,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division is committed to enforcing the Immigration and Nationality Act and rooting out unlawful discrimination in the employment eligibility verification process to help ensure equal employment opportunities.”
The Department’s investigation concluded that, from at least July 2015 to March 2017, MUY Brands and MUY Consulting required specific work authorization documents from all lawful permanent residents who worked at their Taco Bell restaurants, while not imposing a similar requirement on U.S. citizens. As a result, some lawful permanent residents lost work opportunities, even though they had presented sufficient documentation to prove their authorization to work. Federal law allows all work-authorized individuals, regardless of citizenship status, to choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The anti-discrimination provision of the INA prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship status or national origin.
Under the terms of the agreement, the companies will pay a civil penalty of $175,000, establish a $50,000 backpay fund to pay affected workers, and be subject to departmental monitoring and reporting requirements. Additionally, certain employees will be required to attend training on the requirements of the INA’s anti-discrimination provision.
The Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
More information on how employers can avoid discrimination in the Form I-9 and E-Verify processes is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
INTERPOL Washington Leads U.S. Delegation to INTERPOL General AssemblyRead the Press Release
The U.S. Delegation to the INTERPOL General Assembly.Wayne H. Salzgaber, director of INTERPOL Washington—the U.S. National Central Bureau—is leading the U.S. Delegation to the 88th INTERPOL General Assembly this week in Santiago, Chile. The General Assembly meets annually and makes all of the major decisions affecting general policy, the resources needed for international cooperation, working methods, finances and programs of activities for INTERPOL.
From October 15th to 18th, the conferees will discuss proposals to advance INTERPOL’s technical and operational support to police worldwide. This year’s gathering of law enforcement officials from around the world will also address current and future organized crime and terrorism threats.
In addition to setting INTERPOL’s agenda and budget, the General Assembly voted yesterday to reappoint Mr. Jürgen Stock INTERPOL Secretary General to a second and final five-year term.
The General Assembly is INTERPOL's supreme governing body and comprises delegates appointed by the governments of member countries.
A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.
El Departamento de Justicia Resuelve una Denuncia de Discriminación Relacionada con la Inmigración contra el Dueño de una Franquicia Nacional de Restaurantes con Sede en TexasRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con MUY Brands LLC, un propietario y operador de aproximadamente 78 franquicias del restaurante Taco Bell en seis estados, con sede en San Antonio, Texas, y una empresa relacionada de gestión empresarial, MUY Consulting Inc. El acuerdo resuelve la investigación del Departamento sobre posibles contravenciones por parte de las empresas de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a los residentes permanentes legales por motivos de su estatus de ciudadanía cuando verificaron su autorización para trabajar en los Estados Unidos.
“Los empleadores no deben pedir que sus empleados entreguen documentos adicionales o diferentes a lo necesario para comprobar legalmente su autorización para trabajar por motivos del estatus de ciudadanía o de la nacionalidad de origen del trabajador,” dijo el Fiscal General Adjunto Eric Dreiband de la División de Derechos Civiles. “La División de Derechos Civiles se compromete con hacer cumplir la Ley de Inmigración y Nacionalidad, y con erradicar la discriminación ilegal en el proceso de verificación de la elegibilidad para trabajar para asegurar la igualdad de oportunidades de empleo.”
A raíz de la investigación, el Departamento concluyó que entre al menos julio de 2015 y marzo de 2017, MUY Brands y MUY Consulting exigieron documentos específicos de autorización para trabajar a todos los residentes permanentes legales que trabajaban en sus restaurantes Taco Bell, mientras que no impusieron un requisito similar a los ciudadanos estadounidenses. Por consiguiente, algunos residentes permanentes legales perdieron oportunidades de empleo a pesar de haber presentado documentación suficiente para comprobar su autorización para trabajar. Las leyes federales les permiten a todas las personas con autorización para trabajar, independientemente de su estatus de ciudadanía, que elijan cuáles documentos válidos y legalmente aceptables presentarán para demostrar su competencia para trabajar en los Estados Unidos. La disposición antidiscriminatoria de la INA les prohíbe a los empleadores que soliciten más documentos de lo necesario o documentos distintos para comprobar la autorización para trabajar con fundamento en el estatus de ciudadanía o nacionalidad de origen de los empleados.
Según los términos del acuerdo, las empresas pagarán una sanción civil de $175,000, establecerán un fondo de $50,000 para sueldos retroactivos, y estarán sujetas a los requisitos de monitoreo por parte del Departamento así como la entrega de informes. Asimismo, ciertos empleados tendrán que asistir a capacitaciones sobre los requisitos de la disposición antidiscriminatoria de la INA.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) tiene la responsabilidad de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe, entre otras cosas, la discriminación por motivos de estatus de ciudadanía y origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; las prácticas documentales injustas; las represalias; y la intimidación.
Para mayor información sobre las maneras en que los empleadores pueden evitar la discriminación en el Formulario I-9 y procesos de E-Verify consulte este enlace. Para mayor información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para las personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con discapacidades auditivas); inscríbase en un seminario web gratis; envíe un correo electrónico a [email protected]; o visite los sitios web del IER en inglés y en español. Suscríbase a GovDelivery para recibir boletines de la IER.
Los postulantes o empleados que crean que han sido objeto de discriminación por motivos de su ciudadanía, estatus migratorio u nacionalidad de origen en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; o discriminación en el proceso de verificación de la elegibilidad para trabajar (Formulario I-9 y E-Verify) con fundamento en su ciudadanía, estatus migratorio u origen nacional; o represalias, podrán presentar una denuncia o solicitar ayuda comunicándose con la línea directa de la IER para trabajadores.
Department of Justice Prosecuted a Record-Breaking Number of Immigration-Related Cases in Fiscal Year 2019Read the Press Release
The Justice Department today announced that in fiscal year 2019 (FY19), its U.S. Attorneys’ Offices prosecuted the highest number of immigration-related offenses since record keeping began more than 25 years ago. These numbers successfully reverse the trend in previous years of declining prosecutions for felony Illegal Reentry defendants, misdemeanor Improper Entry defendants and felony Alien Smuggling defendants.
“These record-breaking numbers are a testament to the dedication of our U.S. Attorneys’ Offices throughout the nation, especially our Southwest border offices,” said Deputy Attorney General Jeffrey A. Rosen. “In addition to the usual workload of each case the Department prosecutes, this effort was made possible after our U.S. Attorneys’ Offices restored essential partnerships with national, state and local law-enforcement partners.”
The newly announced numbers show the U.S. Attorneys’ Offices charged 25,426 defendants with felony Illegal Reentry (8 U.S.C. §1326) in FY19, an increase of 8.5 percent from FY18.
80,866 defendants were charged with misdemeanor Improper Entry (8 U.S.C. §1325(a)), surpassing the record set just last year by 18.1 percent.
4,297 defendants were charged with Alien Smuggling (8 U.S.C. §1324), an increase of 15.4 percent from FY18.
The increased prosecutions are part of the Department of Justice’s commitment to enforcing America’s laws to address the crisis at the border. This announcement comes one week after the Department of Justice announced its Executive Office for Immigration Review completed 275,000 cases in FY19, the second highest number of completed cases in the court’s history.
Justice Department Commemorates 10th Anniversary of Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention ActRead the Press Release
In commemoration of the tenth anniversary of the enactment of the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, the Department of Justice today announced technical assistance resources to fight hate crimes across the country, including development of a new hate crimes training curriculum for law enforcement, and a hate crimes outreach and engagement program for communities entitled ‘United Against Hate: Cultivating Community Partnerships.’
“Hate crimes are especially reprehensible because of the toll they take on families, communities, and our nation as a whole. Precisely because they are fueled by bias against specific people and groups, they also are a grave affront to America’s foundational principles and ideals,” said Attorney General William P. Barr. “That is why the Department of Justice is committed to using every tool at its disposal to combat crimes motivated by this kind of intolerance. The measures announced at today’s commemoration of the tenth anniversary of the Hate Crimes Prevention Act will strengthen our ability to identify and prosecute those who perpetrate these unconscionable acts of hatred.”
“The tenth anniversary of the Shepard-Byrd Act reminds us of the Act’s continued importance. Today Department of Justice officials, law enforcement, and other Americans have come together to highlight both the substantial efforts we have made to combat, prevent, and prosecute hate crimes, and the critical work still to be done,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.
A year ago this month, in October 2018, the Department’s Hate Crimes Enforcement and Prevention Initiative convened a law enforcement roundtable on hate crimes. The day and a half–long event, highlighted in a forthcoming report, brought law enforcement and other leaders from around the country together with Department of Justice officials to explore successful practices and challenges in identifying, reporting, and tracking hate crimes. At the roundtable, it was announced that technical assistance through the Collaborative Reform Initiative for Technical Assistance Center (CRI-TAC) – a partnership with the International Association of Chiefs of Police and nine leading law enforcement leadership and labor organizations, -- funded through the Office of Community Oriented Policing Services (COPS Office) -- would be extended to help state, local, and tribal law enforcement with hate crimes prosecution and prevention.
The Department today announced that the COPS office is supporting the development of a new hate crimes curriculum through CRI-TAC. This important training will focus on law enforcement response, investigation, and reporting of hate crimes consistent with the Administration’s guidance. The course when developed and made available will be focused on increasing the capacity and competency to investigate and accurately report hate crimes, and pursuing the best option for prosecution of perpetrators.
At last year’s roundtable, law enforcement emphasized the single most important tool the federal government could provide would be training to improve investigating and reporting of hate crimes to state, local, and tribal law enforcement.
“The training is directly responsive to the requests from the field that we heard at the Initiative’s Law Enforcement Roundtable, and embodies our philosophy of ‘by the field, for the field,’” said COPS Director Phil Keith.
In addition to the hate crimes training, the Department is also launching a two-phase hate crimes outreach and engagement program. The outreach program “United Against Hate: Cultivating Community Partnerships,” aims to address the underreporting of hate crimes to law enforcement. In phase two of the outreach program the U.S. Attorney’s Offices will have the opportunity to facilitate trainings across the country, convening a wide array of community groups, such as advocacy organizations, educators, and local leaders (including religious leaders) to discuss the impact of hate crimes and explore strategies to build trust with federal, state, local, and tribal law enforcement.
In recent years, the Department has strengthened its hate crimes prosecution program and increased training of federal, state, and local law enforcement officers to ensure that hate crimes are identified and prosecuted to the fullest extent possible. Over the past 10 years, the Department of Justice has charged more than 330 defendants with hate crimes offenses, including more than 70 defendants total during FY 2017, 2018, and 2019. During this three-year time period, the Department has obtained convictions of more than 65 defendants for hate crimes incidents with some cases still pending.
Hate crimes prosecutions are often high profile and their impact is felt nationally and sometimes internationally. This year, the Department’s hate crimes prosecutors have handled several high-profile investigations and criminal prosecutions, including cases in Charlottesville, VA, Pittsburgh, PA, and Jeffersontown, KY.
In southern California, after a shooter killed one and wounded three others at the Chabad of Poway Synagogue, and set fire to the Dar-ul-Arqam Mosque in Escondido, the Department secured a 113-count indictment that included numerous hate crimes charges. And in Dallas, Texas, the Department secured a guilty plea from a man for kidnapping and conspiracy charges for his involvement in a scheme to single out men because of their sexual orientation. The defendant conspired with others to use Grindr, a social media platform, to lure gay men to areas around Dallas for robbery, carjacking, kidnapping, and violent hate crimes.
“The FBI's mission is simple but profound: to uphold the Constitution and protect the American people. It's why battling hate crime is one of the FBI's top priorities,” said FBI Director Christopher Wray. “Hate crime strikes at the very heart of our society, targeting people in our communities based solely on who they are. The FBI will not allow this threat to cast a shadow over our safety and our security. We'll continue to work with our law enforcement partners and use every tool at our disposal to prevent and investigate acts of hate and protect the American people.”
“Prosecuting hate crimes is critical to keeping our community safe. When one member of a group in the community is the victim of a hate crime, all members carry with them a fear that they too may be targeted because of who they are,” said U.S. Attorney for the District of Columbia Jessie K. Liu, Chair of the Attorney General’s Advisory Committee. “The Department of Justice will use every tool at its disposal to protect the people of the United States from these cowardly crimes.”
The Department offers a variety of training and outreach programs to work with local communities and organizations and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits.
“For example, in Fiscal Year 2019, the Community Relations Service (CRS) facilitated 19 Protecting Places of Worship forums and 10 Hate Crime Forums across the United States where law enforcement and other experts shared best practices with community groups working to prevent and respond to hate crimes,” said Gerri Ratliff, CRS Deputy Director.
More information about the Department’s hate crimes efforts, including facts and statistics, case examples, and a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available at www.justice.gov/hatecrimes. Launched a year ago this month, this website provides a centralized portal for the Department’s hate crimes resources, and has attracted over 200,000 visitors to date.