District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Nancy J. Gargula to Serve as U.S. Trustee for Florida, Georgia, Puerto Rico and the U.S. Virgin IslandsRead the Press Release
Nancy J. Gargula, the U.S. Trustee for Indiana and the Central and Southern Districts of Illinois (Region 10), has been designated by Attorney General William P. Barr also to serve for an interim period as the U.S. Trustee for Florida, Georgia, the Commonwealth of Puerto Rico and the U.S. Virgin Islands (Region 21) beginning today, the Executive Office for U.S. Trustees announced. Ms. Gargula replaces Daniel M. McDermott, who has served as interim U.S. Trustee in the region since January 2018. Under 28 U.S.C. § 585(b), the Attorney General may fill U.S. Trustee vacancies by designating an incumbent U.S. Trustee to serve in a second region.
“As a 17-year veteran of the U.S. Trustee Program, Ms. Gargula is well positioned to assume responsibility for one of the Program’s largest regions,” said USTP Director Cliff White. “Her knowledge and experience will serve the region well.”
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 21 is headquartered in Atlanta, Georgia, with additional offices in Macon and Savannah, Georgia; Miami, Orlando, Tallahassee and Tampa, Florida; and San Juan, Puerto Rico.
Criminal Division Announces Publication of Guidance on Evaluating Corporate Compliance ProgramsRead the Press Release
The Criminal Division announced today the release of a guidance document for white-collar prosecutors on the evaluation of corporate compliance programs. The document, entitled “The Evaluation of Corporate Compliance Programs,” updates a prior version issued by the Division’s Fraud Section in February 2017. It seeks to better harmonize the guidance with other Department guidance and standards while providing additional context to the multifactor analysis of a company’s compliance program.
“Effective compliance programs play a critical role in preventing misconduct, facilitating investigations, and informing fair resolutions,” Assistant Attorney General Brian A. Benczkowski said. “Today’s guidance document is part of our broader efforts in training, hiring, and enforcement to help promote corporate behaviors that benefit the American public and ensure that prosecutors evaluate the effectiveness of compliance in a rigorous and transparent manner.”
The guidance document sets forth topics that the Criminal Division has frequently found relevant in evaluating a corporate compliance program, organizing them around three overarching questions that prosecutors ask in evaluating compliance programs: First, is the program well-designed? Second, is the program effectively implemented? And, third, does the compliance program actually work in practice?
To that end, Part I of the document discusses various hallmarks of a well-designed compliance program relating to risk assessment, company policies and procedures, training and communications, confidential reporting structure and investigation process, third-party management, and mergers and acquisitions. Part II details features of effective implementation of a compliance program, including commitment by senior and middle management, autonomy and resources, and incentives and disciplinary measures. Finally, Part III discusses metrics of whether a compliance program is in fact operating effectively, exploring a program’s capacity for continuous improvement, periodic testing, and review, investigation of misconduct, and analysis and remediation of underlying misconduct.
The document was compiled with the input of components across the Division, including attorneys from the Office of the Assistant Attorney General, Fraud Section, and the Money Laundering and Asset Recovery Section. For the full guidance document, click here.
U.S. Officials Participate in Bilateral Meetings with Officials from Japan, South KoreaRead the Press Release
Leaders of the antitrust agencies of the United States this past week participated in bilateral meetings in Tokyo, Japan, and Seoul, Korea. Deputy Assistant Attorneys General Roger Alford and Richard Powers, together with Commissioner Christine S. Wilson of the U.S. Federal Trade Commission, participated in high level meetings with Chairman Kazuyuki Sugimoto and other senior officials from the Japan Fair Trade Commission (JFTC) on April 25 and senior officials from the Korea Fair Trade Commission (KFTC) on April 26. Commissioner Wilson met separately with officials from Japan’s Ministry of Economy, Trade, and Industry regarding technology and digital platforms.
The discussions covered a wide range of topics, including recent enforcement developments, antitrust policy, digital markets, and international cooperation, including the new Framework on Competition Agency Procedures (CAP) adopted by the International Competition Network (ICN) earlier this month. The purpose of the meetings was to reinforce ties of cooperation in light of the increasing internationalization of antitrust enforcement.
“These bilateral meetings are a testament to the depth and strength of our relationships with our global partners, and our joint interest in sound antitrust said Deputy Assistant Attorney General Roger Alford. “Given the importance of our economic ties with Japan and Korea and our shared interests in consumer welfare and robust competition, we are incredibly fortunate to have such close and productive relationships with both the JFTC and the KFTC.”
“Our meetings with the JFTC and KFTC reflect the continued importance of developing broad and deep relationship with antitrust enforcers around the world,” said Commissioner Christine Wilson. “We welcome the opportunity to have exchanges with our counterpart agencies in Japan and Korea on important issues regarding technology that are the subject of national and international debate.”
Deputy Assistant Attorneys General Alford and Powers and Commissioner Wilson also participated in roundtable briefings at the American Chambers of Commerce in Japan and in Korea. Deputy Assistant Attorneys General Alford and Powers also met separately with officials from Korea’s Ministry of Justice and the Supreme Prosecutor’s Office regarding cartel enforcement.
Statement from Attorney General William P. Barr on the Office of Personnel Management’s Published Final Rule for Compensatory Time Off for Religious ObservancesRead the Press Release
Attorney General William P. Barr today released the following statement on the publication of the Office of Personnel Management's Final Rule for Compensatory Time Off for Religious Observances:
"The federal government has been strengthened and enriched by the service of people of faith from the very beginning," Attorney General William P. Barr said. "American history has shown time and again that religious faith can promote good citizenship and the qualities that make for good government service. By offering more flexibility in employees’ work schedules, today's new rule treats Americans of faith with respect and recognizes that government can make legitimate accommodations while still serving the public. I applaud this effort to make the federal government a more tolerant and welcoming work environment and I am confident that it will yield positive results for years to come."
NOTE: The published Final Rule can be found here.
New York Business Owner Pleads Guilty to Tax EvasionRead the Press Release
A Long Island, New York, business owner pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents filed with the court, Warren J. Krotz, 62, of Huntington, New York, owned and operated W. Krotz Enterprises Inc. (WKEI), a professional painting business that provided services throughout Long Island. Krotz admitted to evading both his individual and employment tax liabilities. From around 2010 through 2016, Krotz cashed approximately $6 million in checks at various check-cashing facilities. These checks were gross receipts of WKEI, but Krotz did not report the amounts on WKEI’s corporate income tax returns. He admitted to paying approximately $2 million in wages to employees in cash. As a result, Krotz did not withhold and pay over to the Internal Revenue Service (IRS) approximately $300,000 in employment taxes.
Additionally, Krotz admitted to receiving approximately $3 million in income that he did not report on his personal tax returns. In total, Krotz admitted to causing a tax loss to the IRS of approximately one million dollars.
The Honorable Joseph F. Bianco scheduled sentencing for Sept. 25, 2019. Krotz faces a statutory maximum sentence of five years in prison, as well as restitution and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Jessica Moran and Kathryn Sparks of the Tax Division, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Federal Court Shuts Down Alleged Nationwide Tax Scheme Involving Charitable LLCs and Charitable Limited PartnershipsRead the Press Release
A federal court in Miami, Florida, permanently barred Michael L. Meyer from organizing, selling, and making statements about the tax benefits of an allegedly abusive charitable giving tax scheme, the Justice Department announced today. The court’s injunction specifically prohibited Meyer from selling the Ultimate Tax Plan, sometimes referred to as a Charitable LLC or Charitable Limited Partnership. In addition, the court barred Meyer from preparing federal tax returns, performing appraisals for federal tax purposes, representing anyone other than himself before the IRS, furnishing tax advice about charitable contributions, and making statements about transactions having a significant purpose of tax avoidance.
According to the government’s amended complaint, Meyer organized, promoted, and operated an elaborate — and bogus — charitable giving tax scheme throughout the United States. Meyer allegedly told scheme participants they could claim significant tax benefits while retaining complete control over assets purportedly donated to charity.
According to the allegations in the government’s amended complaint, Meyer organized and sold a plan in which participants purportedly transferred property to a limited liability company (LLC) or partnership and purportedly donated their interest in the LLC or partnership to a charity. The United States further alleged that Meyer appraised the “donations,” prepared tax forms for participants to claim unwarranted deductions, and controlled the charities he used to perpetuate the scheme, including Indiana Endowment Fund Inc., Grace Heritage Corporation, and National Endowment Association Inc.
The government argued in its court filings that Meyer falsely advised participants that they could claim an immediate up-front tax deduction, grow assets tax-free, access assets through tax-free loans, and preserve wealth for themselves and their heirs. Because taxpayers retained control over their “donations,” however, all of the alleged tax benefits were unlawful, according to the United States’ court filings. In its amended complaint, the government alleged that Meyer’s scheme deprived the government of at least $35 million in tax revenue.
In addition to barring Meyer from activities described above, the Court also prohibited Meyer from advising, performing work for, receiving compensation from, or referring individuals to six other charities not referenced in the amended complaint: (1) Compassion Beyond Borders Inc.; (2) National Outreach Foundation Inc.; (3) Legacee Charities Inc.; (4) Triton Charitable Foundation; (5) Global Outreach Fund Inc., or (6) Family Office Foundation Inc. The Court further ordered Meyer to dissolve National Endowment Association Inc.; Grace Heritage Corporation; Indiana Endowment Fund Inc.; as well as two other entities, Indiana Endowment Foundation Inc.; and Indiana Outreach Fund Inc. Meyer consented to entry of the injunction.
Principal Deputy Assistant Attorney General Richard E. Zuckerman, head of the Justice Department’s Tax Division, thanked Trial Attorneys Casey S. Smith, James F. Bresnahan II, and Harris J. Phillips of the Tax Division. He also thanked the many IRS attorneys and agents who participated in the investigation.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Zurich Life Insurance Company Ltd. and Zurich International Life Limited Enter Agreement with U.S. Regarding Insurance ProductsRead the Press Release
Zurich Life Insurance Company Ltd (Zurich Life), headquartered in Zurich, Switzerland, and Zurich International Life Limited (Zurich International Life), headquartered in the Isle of Man (collectively Zurich) reached a resolution with the United States Department of Justice yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division. As part of the agreement, Zurich will pay a penalty of $5,115,000 to the United States.
According to the terms of the non-prosecution agreement, Zurich agrees to cooperate in any related criminal or civil proceedings, to implement controls to stop misconduct involving undeclared U.S. accounts, and to pay a penalty in return for the Department’s agreement not to prosecute the insurance providers for tax-related criminal offenses.
“The Tax Division remains steadfast in its goal of ending the use of offshore banking and insurance products when used to commit tax evasion,” said Principal Deputy Assistant Attorney General Zuckerman. “This resolution with Zurich should serve as a strong message to those who use offshore bank accounts and insurance products to evade taxation that the Department of Justice is committed to stopping such fraud.”
Zurich Life was founded in 1922 and operates in Switzerland as an insurance carrier offering life insurance and investment products. As of 2016, Zurich Life had approximately $21.3 billion in assets under management and over 300,000 policies in force. Zurich International Life is based in the Isle of Man and operates as an insurance carrier offering life insurance and investment products. Zurich International Life focuses its business on the international expatriate market. As of 2016, Zurich International Life had approximately $10.6 billion in assets under management and approximately 300,000 policies in force. Zurich Life and Zurich International Life are indirectly owned subsidiaries of Zurich Insurance Group Ltd, a Swiss holding company headquartered in Zurich, Switzerland.
From Jan. 1, 2008, through June 30, 2014, Zurich issued or had certain insurance policies and accounts of U.S. taxpayer customers, who used their policies to evade U.S. taxes and reporting requirements. In particular, Zurich had approximately 420 U.S. related policies, 127 with Zurich Life and 293 with Zurich International Life, with an aggregate maximum value of approximately $102 million, for which the U.S. taxpayer customers did not provide evidence that they had declared their policies to U.S. tax authorities.
To qualify for favorable tax treatment under the U.S. tax code, insurance must meet certain minimal requirements. The policies offered by Zurich Life and Zurich International Life did not meet these requirements. The increase of the principal in these policies was therefore subject to taxation, and the policies were required to be disclosed to the Internal Revenue Service (IRS) on FinCEN Form 114 Foreign Bank Account Report, commonly referred to as an FBAR. In issuing or having undeclared U.S. related policies, Zurich knew or should have known that they were helping U.S. taxpayers conceal from the IRS ownership of undeclared assets, maintained as insurance policies or accounts.
Zurich International Life, in particular, sold insurance products to U.S. taxpayers that were “unit linked,” meaning the cash surrender value and death benefit amount were linked to the value of specified investments. With such policies, the U.S. taxpayer had a suite of specialized investment options, allowing them to access potentially higher returns by taking on the market risk associated with the policies. Some of these unit-linked policies offered a base death benefit that was nearly equivalent to the cost of the policy itself, and in some instances was fully funded by transfers from offshore bank accounts. Upon redemption, the U.S. taxpayer would receive the premium amount plus any investment earnings on the policy less a very small percentage for putative risk and fees.
Despite knowing that some of these policies, which had minimal-to-no risk mitigation function and specialized investment options, were held by U.S. taxpayers, Zurich International Life failed to act appropriately to ensure timely compliance by the policyholders with U.S. tax laws. In at least one instance, uncovered during the course of Zurich Life’s internal review, a former U.S. citizen, who pled guilty to a federal fraud offense after purchasing a Zurich International Life policy, used that insurance policy to hide substantial assets, despite owing approximately $900,000 in restitution to his victims.
Following the commencement of the Department’s Swiss Bank Program, the Zurich Group initiated a global review of the life insurance, savings and pension business sold by all of its non-U.S. operating companies to identify policies or accounts with U.S. indicia. This review prompted an extensive customer outreach to current and former customers with a possible nexus to the United States to confirm the customers’ status as U.S. taxpayers, assess their compliance with applicable U.S. tax and reporting rules, and encourage participation in an IRS voluntary disclosure program.
In July 2015, Zurich contacted the Department to inform it of the initial findings of the self-review. Prior to the self-reporting, Zurich was neither a subject nor a target of any investigation being conducted by the Tax Division. Since this self-disclosure, Zurich has conducted a thorough investigation and reported substantial findings to the Tax Division, including dozens of detailed summaries of account information and comprehensive reports for the U.S. related policies.
In addition to these efforts, the Companies have worked closely with non-U.S. regulators to ensure full disclosure to the Department. For instance, in 2016, Zurich Life applied to the Swiss Federal Department of Finance and received approval to waive Article 271 of the Swiss Criminal Code, which restricted the disclosures that Zurich Life could make to the Department, thereby facilitating Zurich Life’s production of certain information that would have otherwise been prohibited.
Principal Assistant Attorney General Zuckerman of the Justice Department’s Tax Division thanked Senior Litigation Counsel Nanette Davis and Trial Attorney Jack Morgan of the Tax Division for their substantial assistance. The Tax Division also thanks the Internal Revenue Service for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Queens Karaoke Bar Sentenced to Prison for Failure to Pay Employment TaxesRead the Press Release
A resident of Queens, New York, was sentenced today to 12 months and one day in prison for failing to collect and pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents, Kae Wook Lee was the sole owner and chief executive officer of Mona Lisa 7 Corporation, through which he operated a karaoke bar in the Flushing neighborhood of Queens. Between 2011 and 2013, Lee diverted some of his karaoke bar’s receipts to bank accounts held in the names of shell corporations he created. Lee then withdrew funds from those bank accounts to pay employees’ wages in cash without collecting, accounting for, or paying over employment taxes due to the Internal Revenue Service (IRS). Lee concealed the cash payroll from his accountant and signed false tax returns that underreported employee wages and employment taxes owed.
In addition to the term of imprisonment imposed, the court ordered Lee to serve two years of supervised release and pay $612,500 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark Kotila and Sean Green, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Operators of Arizona Business Charged in Telemarketing-Related Fraud and Identity Theft Scheme Aimed at Senior CitizensRead the Press Release
Two owners of an Arizona business were charged in an indictment unsealed today for overseeing a scheme to forge hundreds of thousands of counterfeit documents containing improperly obtained personal information, primarily relating to senior citizens, which they allegedly sold to their clients, who then allegedly provided this information to telemarketers.
Assistant Attorney General Brian Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Jill Sanborn of the FBI’s Minneapolis Field Office, Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office, Acting Special Agent in Charge Joseph Carrico of the FBI’s Phoenix Field Office and Special Agent in Charge Gary Loeffert of the FBI’s Buffalo Field Office made the announcement.
Anthony J. Pavone, 44, of Scottsdale, Arizona, and Joseph E. DiPrima, 49, of Penfield, New York, were charged in an indictment filed on April 23, 2019 in the District of Arizona with one count of conspiracy to commit wire fraud, one count of wire fraud, one count of conspiracy to commit identity theft, seven counts of identity theft, and seven counts of aggravated identity theft.
According to the indictment, Pavone and DiPrima operated a Phoenix-based business called Hybar Media (Hybar). Hybar specialized in selling “sweepstakes leads,” which are documents listing the phone numbers and personal information of individuals who have responded to mass mailings notifying recipients that they may have won, or were likely to win, expensive prizes and large cash payouts.
The indictment alleges that beginning in approximately 2013, Pavone and DiPrima acquired lists of names and contact information for thousands of people—primarily senior citizens—and used this information to create fake sweepstakes leads, which they then sold to their clients as authentic. The indictment further alleges that Pavone and DiPrima directed a team of employees and associates to write the personal information of the victims onto the counterfeit sweepstakes forms, even though the victims had not agreed to this use, and even though many of the victims had never responded to a sweepstakes mailing. According to the indictment, the counterfeit sweepstakes leads were then sold to Pavone and DiPrima’s clients. Many of these clients then contacted the people named in the leads. Other clients provided the leads to telemarketers, who used them to contact the people named therein.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating this matter. Trial Attorneys Timothy A. Duree and Philip Trout of the Criminal Division’s Fraud Section are prosecuting the case.
Federal Court Shuts Down Florida Tax Return PreparersRead the Press Release
The United States District Court for the Southern District of Florida entered a permanent injunction against Guary Louima, Guy Telfort, and Tax Houses and Accounting Services Inc., barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department announced today.
The court also ordered that Louima, Telfort and the business disgorge $150,000, representing the ill-gotten gains they received for the preparation of tax returns. The defendants agreed to entry of the injunction and disgorgement judgment against them.
In its complaint the government alleged that Louima and Telfort own and operate Tax Houses and Accounting Services Inc. in Lauderdale Lakes, Florida. The government alleged that the defendants prepared tax returns making false or fraudulent claims for the Earned Income Tax Credit by claiming bogus business losses for non-existent businesses, misrepresenting the filing status of their customers, and inflating the number of dependents claimed on their return. Defendants also allegedly prepared returns that improperly lowered their customers’ reported taxable income by falsely claiming deductions for the personal use of their vehicles.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
DEA and Partners Hold National Prescription Drug Take Back Day Saturday, April 27, 2019Read the Press Release
DES MOINES, Iowa – On Saturday, April 27, 2019, from 10 a.m. to 2 p.m., the Des Moines Resident Office of the Drug Enforcement Administration (DEA) and other participating law enforcement agencies will give the public its 17th opportunity in nine years to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. The DEA cannot accept liquids, needles or sharps – only pills or patches. The service is free and anonymous with no questions asked.
This Saturday, approximately 6,000 collection sites manned by nearly 5,000 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539.
Last October Americans turned in 457 tons (914,236 pounds) of prescription drugs at almost 5,800 sites operated by the DEA and more than 4,800 of its state, local, and tribal law enforcement partners. Overall, in previous Take Back Day events, DEA has collected a total of nearly 11 million pounds of expired, unused and unwanted prescription medications.
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. The majority of prescription drug abusers say they get their abused prescription drugs free from family and friends, including from the home medicine cabinet.
Metro Detroit Area Tax Preparer Sentenced to Prison for Filing Fraudulent Tax ReturnsRead the Press Release
A Detroit, Michigan, man was sentenced today to 30 months in prison after being found guilty at trial of 25 counts of preparing false federal income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to evidence presented at trial, Gary Hairston owned and operated Gary Y Hairston & Co PLLC, a tax return preparation business located in Inkster, Michigan. From 2010 through 2014, Hairston prepared and filed false tax returns with the Internal Revenue Service (IRS) on behalf of his clients, charging up to $925 per fraudulent return. Hairston falsified the returns in order to inflate his clients’ refunds or to obtain refunds to which they were not entitled. In some cases, he would create false Schedule C businesses for clients to facilitate the scheme. In all, Hairston sought more than $175,000 in fraudulent refunds.
Manny Muriel, Special Agent in Charge of the Detroit’s IRS Criminal Investigation, stated, “As a tax preparer, especially a Certified Public Accountant, your clients look to you for expertise and guidance. It is your obligation to faithfully and diligently represent their best interest and today’s sentencing shows IRS-CI, in concert with the Department of Justice, is committed to aggressively pursuing unscrupulous tax professionals that prey on the public.”
U.S. District Court Judge David M. Lawson, who imposed the sentence, also ordered Hairston to serve one year of supervised release and to pay $118,048 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Carl F. Brooker, IV and Thomas F. Koelbl of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Attorney General Appoints Regina Lombardo Acting Deputy Director of the Bureau of Alcohol, Tobacco, Firearms and ExplosivesRead the Press Release
Attorney General William P. Barr announced today that he has appointed Regina "Reggie" Lombardo to be Acting Deputy Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), effective May 1, 2019. Lombardo will replace Thomas Brandon, who will be retiring from federal service on April 30, 2019.
"Reggie Lombardo has helped run day-to-day operations at ATF for more than a year and she has proven herself to be an outstanding leader," Attorney General William Barr said. "Like her predecessor, Tom Brandon, she started as a special agent and has been entrusted with greater and greater responsibility over decades of faithful service. She is well qualified to continue ATF's successes of recent years, including helping the Department investigate and prosecute more firearms offenders than ever before. I want to thank Tom Brandon for his 30 years of service to ATF and 36 years of service to this country, and I thank Acting Deputy Director Lombardo for her willingness to accept this new role leading one of the most effective law enforcement agencies in the world."
Lombardo has served as the Associate Deputy Director and Chief Operating Officer for the agency since March 2018. In this capacity she has been responsible for the day-to-day operations of the agency charged with protecting the public from violent crime and enforcing laws and regulations related to firearms, explosives, arson, and alcohol and tobacco diversion.
Lombardo has served as a special agent in the ATF since 1992 and has risen through the ranks as a career employee. She has held numerous management positions at ATF, including Assistant Director of Human Resources and Professional Development, Deputy Assistant Director of Field Operations’ Central Region, Special Agent in Charge of the Tampa Field Division, Assistant Special Agent in Charge of the New York Field Division, and Assistant Country Attaché in Toronto, Canada. She will be the first female to lead the agency in its history.
Indian National Sentenced to 60 Months for His Leadership Role in Dangerous Human Smuggling ConspiracyRead the Press Release
An Indian national was sentenced today for his leadership role in a complex, transnational conspiracy to smuggle aliens from India to the Unites States for profit, which claimed at least one life and endangered many others.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Ivan Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Puerto Rico made the announcement.
Yadvinder Singh Sandhu, 61, an Indian national, was sentenced to 60 months in prison followed by three years of supervised release. On Jan. 18, 2019, Sandhu pleaded guilty to one count of conspiracy and 15 counts of smuggling aliens to the United States for profit before U.S. Magistrate Judge Silvia Carreño-Coll of the District of Puerto Rico. District Judge Carmen C. Cerezo accepted the guilty plea and sentenced the defendant. Sandhu was charged in an indictment returned by a federal grand jury in the District of Puerto Rico on March 15, 2017. Sandhu has also used the names “Yadvinder Singh Bhamba,” “Bhupinder Kumar,” “Rajinder Singh,” “Robert Howard Scott” and “Atkins Lawson Howard.”
According to admissions in Sandhu’s plea agreement, since 2013, Sandhu had a leadership role in a human smuggling conspiracy operating out of the Dominican Republic, Haiti, Puerto Rico, India and elsewhere. Sandhu admitted he personally assisted around 400 aliens to unlawfully enter the United States between 2013 and 2015 as part of the conspiracy. He also oversaw and directed co-conspirators operating out of the Caribbean.
Sandhu and other members of the conspiracy made flight arrangements for aliens to travel from India through other countries – including Thailand, the United Arab Emirates, Argentina, Iran, Panama, Venezuela, Belize and Haiti – to the Dominican Republic. The Dominican Republic was used as a staging area, where aliens were housed before being transported to the United States. The organization brought groups of aliens from the Dominican Republic to Puerto Rico or Florida by boat. Once the aliens reached Puerto Rico or Florida, they were picked up by co-conspirators and taken to stash houses until flights could be arranged to California, New York, or elsewhere in the United States. Sandhu and others arranged for fraudulent identifications for some aliens to use in the United States.
The boat trips organized by Sandhu and his co-conspirators to transport aliens from the Dominican Republic to the United States were perilous. Boat captains used old, damaged, cracked, unlicensed, overcrowded and unsafe boats to make the journey. In at least one instance, an alien died in a boat on his way to the United States.
At times, the smugglers would take passports from the aliens during their journeys, physically assault them and threaten their families to collect money. Aliens paid between $30,000 and $85,000 to be smuggled from India to the United States. From at least 2013 to 2016, human smuggling was Sandhu’s primary source of income.
Members of the conspiracy, including Sandhu, would use false names or nicknames to communicate with the aliens and with each other. Sandhu, whom fellow smugglers and aliens knew as “Ruby,” also instructed others to use false names or nicknames to avoid detection. Sandhu used fraudulent Indian, Dominican and Jamaican identifications for travel and financial transactions related to the conspiracy.
As part of the conspiracy, Sandhu directed associates to unlawfully smuggle 15 aliens to Puerto Rico in July 2016. Sandhu personally met the 15 aliens in various countries along their journeys, including in Dubai, Thailand, Iran, and the Dominican Republic, and he communicated with them throughout their journeys, which began approximately in January 2016. In some instances, Sandhu created and provided to authorities false employment documents on behalf of the aliens to obtain foreign visas. Sandhu also instructed aliens traveling through foreign airports how to find, and in some instances, pay cash to, corrupt immigration officials, passport control officers, or airport employees in order to bypass regular immigration and passport control procedures.
After the aliens arrived in the Dominican Republic, Sandhu used an alias to arrange and pay for a hotel for them. On July 25, 2016, Sandhu alerted co-conspirators in Puerto Rico to be ready to receive 15 aliens. On July 27, 2016, 15 Indian nationals were transported from the Dominican Republic to Puerto Rico in a 22-foot wooden vessel. The vessel was not marked or equipped with basic safety features, such as lights or navigational equipment. The outside of the vessel was painted black, to make it difficult to see in the water at night. Per safety regulations, the size of the boat should have limited the number of occupants to eight people, but it carried 15 aliens, plus members of the conspiracy who captained the vessel.
The aliens were supposed to be met in Puerto Rico by another smuggler, but they were apprehended instead. Sandhu contacted other members of the conspiracy to find out what happened to the aliens and paid a co-conspirator to locate the aliens and confirm they did not drown, so that the co-conspirators would not lose money. Sandhu was arrested in the Dominican Republic in August 2017, and thereafter transferred to Puerto Rico.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division 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 Puerto Rico investigated this case. The government of the Dominican Republic and the Transnational Crime Investigative Unit of the Dominican Republic National Police provided significant assistance and support during the investigation and have brought charges against other members of the smuggling network.
Trial Attorneys Ann Marie E. Ursini and Christian A. Levesque of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case, with the assistance of the Department of Justice’s Office of International Affairs and the U.S. Attorney’s Office for the District of Puerto Rico.
Michigan Home Health Agency Owner Sentenced to Prison for $8.3 Million Medicare FraudRead the Press Release
A Michigan home health agency owner was sentenced to 84 months in prison today for his role in an $8.3 million scheme to defraud Medicare.
Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Zahir Shah, 49, of West Bloomfield, Michigan, was sentenced by U.S. District Judge Avern Cohn of the Eastern District of Michigan, who also ordered Shah to pay $ 8,339,790.28 in restitution. In May 2018, Shah pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to pay and receive health care kickbacks.
As part of his guilty plea, Shah admitted that he submitted false certifications to enroll and stay enrolled as a Medicare provider. Shah further admitted that he paid illegal kickbacks to recruiters in exchange for Medicare beneficiary referrals and billed Medicare for claims procured through these illegal kickbacks. Additionally, according to evidence presented, Shah conspired with others to submit claims to Medicare for home health services that were medically unnecessary and not eligible for Medicare reimbursement. The court ordered that Shah repay as restitution the total amount that his home health agencies received from the Medicare program from 2007 to 2017, which was over $8.3 million.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Trial Attorneys Rebecca Yuan and Howard Locker of the Fraud Section prosecuted the case. Assistant U.S. Attorney Philip Ross of the Eastern District of Michigan handled the asset forfeiture proceedings.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The Justice Department, Environmental Protection Agency, and State of Colorado Reach Agreement with Highpoint Operating Corporation to Resolve Alleged Clean Air Act Violations and Reduce Air Pollution in ColoradoRead the Press Release
WASHINGTON – The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the state of Colorado today announced a settlement with Denver-based HighPoint Operating Corporation resolving alleged Clean Air Act violations.
The settlement resolves alleged claims that HighPoint violated requirements to reduce volatile organic compounds (VOCs) emissions from its oil and natural gas production operations in the Denver-Julesburg Basin. VOCs are a key component in the formation of ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
“As part of the Department’s continued effort to safeguard and improve air quality, we remain committed to reducing the emissions of volatile organic compounds that contribute to high levels of ground-level ozone and so endanger the public health,” said Assistant Attorney General Jeffrey Bossert Clark. “This settlement reflects the progress that can be made when the federal government engages in cooperative endeavors with its state partners.”
“This settlement reflects EPA’s continued efforts with the Department of Justice, the State of Colorado and oil and gas producers to secure Clean Air Act compliance and reduce emissions that are contributing to high levels of ground-level ozone in communities across Colorado’s Front Range,” said EPA Acting Regional Administrator Deb Thomas.
“This represents another step in Colorado’s ongoing efforts to protect public health and the environment by minimizing harmful emissions from the oil and gas industry,” said Jill Hunsaker Ryan, Executive Director of the Colorado Department of Public Health and Environment.
As part of the settlement, HighPoint will spend an estimated $3 million to implement measures that will ensure the vapor control systems on its condensate storage tanks are adequately designed and sized and will improve its operation and maintenance practices, monitoring, and inspections. These improvements, including monthly inspections using infrared cameras to better detect and respond in real time to emissions, will significantly reduce VOC emissions. EPA and the state of Colorado estimate that HighPoint’s modifications of vapor control system design, improvements to operations and maintenance practices, and increased monitoring will reduce VOC emissions from HighPoint’s operations by approximately 350 tons per year.
HighPoint will also implement an environmental mitigation project to reduce VOC emissions in the Denver area. HighPoint will install and operate vapor balancing controls to minimize emissions associated with loading of condensate into tank trucks at ten HighPoint well pads. This project will reduce HighPoint’s VOC emissions from tank truck load-out by an estimated 50 tons per year.
HighPoint will pay the United States a $275,000 civil penalty, and will pay a civil penalty to Colorado and perform a State supplemental environmental project, with a combined value of $275,000. HighPoint will apply $220,000 of the State’s portion of the penalty to a supplemental environmental project.
This action arose when inspections of HighPoint operations conducted from 2014 to 2017 by EPA and Colorado found VOC emissions from HighPoint’s condensate storage tanks. Through these inspections and information requests, EPA and the State of Colorado identified alleged violations of the Colorado State Implementation Plan, Regulation Number 7, due to undersized vapor control systems and inadequate operations and maintenance practices.
This settlement covers 50 HighPoint tank systems in Colorado’s Denver-Julesburg Basin. The tank systems covered by the settlement are located in an ozone nonattainment area, which means the area does not meet the National Ambient Air Quality Standard set for ozone. By reducing the emissions of VOCs that lead to the formation of ground-level ozone, this settlement will contribute to the improvement of air quality in the Front Range.
The consent decree, lodged in the District Court of Colorado, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
Department of Justice Releases Reports Focused on Improving Safety and Wellness of the Nation’s 800,000 Law Enforcement OfficersRead the Press Release
The Department of Justice today released two complementary reports that focus on the mental health and safety of the nation’s federal, state, local and tribal police officers. The reports, Law Enforcement Mental Health and Wellness Act: Report to Congress and Law Enforcement Mental Health and Wellness Programs: Eleven Case Studies, were published by the Office of Community Oriented Policing Services (COPS Office) as required by the Law Enforcement Mental Health and Wellness Act (LEMHWA) of 2017.
The LEMHWA passed both chambers unanimously and without amendment and was signed by the President shortly thereafter. These actions show that its purpose and intended effects are uncontroversial among policymakers – law enforcement agencies need and deserve support in their ongoing efforts to protect the mental health and well-being of their employees. Congress took the important step in improving the delivery of and access to mental health and wellness services that will help our nation’s more than 800,000 federal, state, local, and tribal law enforcement officers.
"Serving as a law enforcement officer requires courage, strength, and dedication," Attorney General William P. Barr said. "The demands of this work, day in and day out, can take a toll on the health and well-being of our officers, but the Department of Justice is committed to doing our part to help. I want to thank the men and women of our COPS office for their hard work to support our officers every day, and specifically for these thoughtful and insightful reports, which detail both the challenges facing our officers and some specific ways we can give them the support that they deserve."
"A damaging national narrative has emerged in which law enforcement officers – whether federal, state, local, or tribal – are seen not as protectors of communities but as oppressors," said COPS Office Director Phil Keith. “In this environment, where an inherently stressful job is made more so by a constant undercurrent of distrust and negative public opinion, the risks to officer wellness are exacerbated. This report is an important measure and reflection in our ongoing commitment to protect those who protect us. "
Under the Law Enforcement Mental Health and Wellness Act, the COPS Office was required to submit reports to Congress that addressed:
(1) Recommendations to Congress on effectiveness of crisis lines for law enforcement officers, efficacy of annual mental health checks for law enforcement officers, expansion of peer mentoring programs, and ensuring privacy considerations for these types of programs;
(2) Mental health practices and services in the U.S. Departments of Defense (DoD) and Veterans Affairs (VA) that could be adopted by federal, state, local, or tribal law enforcement agencies; and
(3) Case studies of programs designed primarily to address officer psychological health and well-being.
The first report, Law Enforcement Mental Health and Wellness Act: Report to Congress, includes 22 recommendations to Congress ranging from supporting programs to embed mental health professionals in law enforcement agencies to supporting the development of model policies and implementation guidance for law enforcement agencies to make substantial efforts to reduce suicide.
The case studies report, Law Enforcement Mental Health and Wellness Programs: Eleven Case Studies, is designed to provide an overview of multiple successful and promising law enforcement mental health and wellness strategies with the joint aims of informing Congress, state and local government officials, and the law enforcement field. The report includes 11 case studies from a diverse group of sites across the United States.
The Department of Justice is pleased to respond to the LEMHWA as officer safety, health, and wellness is a longstanding priority of the agency. The reports released today address some of the most pressing issues currently facing our law enforcement community.
The COPS Office has a near 25-year history of supporting the efforts of state, local and tribal law enforcement, including the management of the National Blue Alert Network. The agency awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement. Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.
Proposed Class Action Settlement Involving Lenny & Larry’s Cookies Amended to Give Consumers More ValueRead the Press Release
Following objections raised by the United States and others, the parties in a class action matter involving Lenny & Larry’s cookies filed an amended proposed settlement that would direct additional value toward consumer plaintiffs, the Department of Justice today announced.
“Congress passed the Class Action Fairness Act to stop questionable settlements that benefit lawyers instead of injured consumers,” said Principal Deputy Associate Attorney General Jesse Panuccio. “As part of our efforts to protect consumers, the Department of Justice will continue to object to settlements that are not fair, reasonable, and adequate.”
“The Class Action Fairness Act is designed to help ensure that class action settlements do not unreasonably benefit attorneys or third parties at the expense of the consumers involved,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will continue to take action when we see unsuitable class action settlements.”
Plaintiffs in the case, Cowen et al. v. Lenny & Larry’s, Inc., alleged that labels for the defendant’s “The Complete Cookie” product included inaccurate nutritional information. Under the original proposed settlement reached between the parties and filed in October 2018, individual class members would have received pro rata shares of a $350,000 cash fund or up to $30 in free cookies. The defendant also agreed to distribute free cookies worth about $3 million to the general public through giveaways at certain health food stores. Based on the purported total value of the settlement, class counsel sought $1.1 million in attorney’s fees, which the defendant agreed not to oppose.
In a Statement of Interest filed Feb. 15, 2019, the United States argued that the court should reject the settlement because it directed most of its value toward non-class members and attorney’s fees rather than to consumer plaintiffs. The parties thereafter filed an amended proposed settlement on April 2, 2019. Under the amended settlement, individual class members would receive shares of a $889,000 cash fund, or up to $35 in free cookies. Class counsel now seek approximately $410,000 in attorney’s fees. The case is pending in U.S. District Court for the Northern District of Illinois, which must approve any final settlement.
The Class Action Fairness Act of 2005 provides the Attorney General and state officials an opportunity to review federal class action settlements before district courts grant final approval. The United States recently filed an amicus brief in another class action case pending before the Sixth Circuit Court of Appeals, Chapman et al. v. Tristar Products, Inc. The government argued that the Chapman settlement unfairly awarded millions of dollars to attorneys but provided consumers with little more than nearly worthless coupons.
Trial Attorney Kendrack Lewis of the Civil Division’s Consumer Protection Branch represents the United States in the matter. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
Court Holds Former Detroit Tax Return Preparer in Contempt of Court for Violating Injunction OrderRead the Press Release
On Friday, a federal court in Detroit, Michigan, found Dieasha Davis in civil contempt of a permanent injunction barring her from operating a tax return preparation business and preparing federal tax returns for others, the Justice Department announced.
In the contempt order, Judge Denise Page Hood found that Davis continued to prepare federal income tax returns and profited from preparing tax returns in violation of the court’s injunction, which had been entered against her and the business on September 25, 2017. Davis and the business agreed to the 2017 civil injunction order.
In February, 2019, following an investigation of Davis’ activities, the United States presented to the district court what the court on Friday found was clear and convincing evidence that Davis had violated the injunction. The court entered an order requiring Davis to file a written response to show cause why she should not be held in civil contempt. Davis did not file any response.
Based on the evidence submitted by the United States, the court also found that tax returns Davis prepared in violation of the injunction contained false and fraudulent information after entry of the injunction.
In addition, the court ordered Davis to pay to the United States $24,671 for attorney fees and costs incurred in detecting Davis’ non-compliance and bringing her violations of the injunction to the court’s attention.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
General Electric Agrees to Pay $1.5 Billion Penalty for Alleged Misrepresentations Concerning Subprime Loans Included in Residential Mortgage-Backed SecuritiesRead the Press Release
The Department of Justice today announced that General Electric (GE) will pay a civil penalty of $1.5 billion under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) to resolve claims involving subprime residential mortgage loans originated by WMC Mortgage (WMC), a GE subsidiary. WMC, GE, and their affiliates allegedly misrepresented the quality of WMC’s loans and the extent of WMC’s internal quality and fraud controls in connection with the marketing and sale of residential mortgage-backed securities (RMBS). FIRREA authorizes the federal government to seek civil penalties for violations of various predicate criminal offenses, including wire and mail fraud where the violation affects a federally insured financial institution.
“The financial system counts on originators, which are in the best position to know the true condition of their mortgage loans, to make accurate and complete representations about their products. The failure to disclose material deficiencies in those loans contributed to the financial crisis,” said Assistant Attorney General Jody Hunt. “As today’s resolution demonstrates, the Department of Justice will continue to employ FIRREA as a powerful tool for protecting our financial markets against fraud.”
General Electric Capital Corporation (GECC), then the financial services unit of GE, acquired WMC, a subprime residential mortgage loan originator, in 2004. WMC originated more than $65 billion dollars in mortgage loans between 2005 and 2007. WMC sold the vast majority of its loans to investment banks, which, in turn, issued and sold RMBS backed by WMC loans to investors. The United States alleged that a majority of the mortgage loans WMC originated and sold for inclusion in RMBS in 2005-2007 did not comply with WMC’s representations about the loans, and that certain of WMC’s representations were reviewed by, approved by, or made with the knowledge of personnel from GE or GECC. Investors, including federally insured financial institutions, suffered billions of dollars in losses as a result of WMC’s fraudulent origination and sale of loans for inclusion in RMBS.
In particular, the United States alleged that in 2005-2007, WMC attempted to increase its profits and meet profit goals by increasing originations. WMC loan analysts responsible for underwriting mortgage loans were encouraged to approve loans in order to meet volume targets, even where the loan applications did not meet the criteria outlined in WMC’s published underwriting guidelines, and received additional compensation based on the number of mortgages they approved. At the same time, there were significant deficiencies with respect to WMC’s quality control, which was viewed by some as an impediment to volume. In 2005, a WMC quality control manager described his department as a “toothless tiger” with inadequate resources and no authority to prevent the approval or sale of loans his department had determined were fraudulent or otherwise defective. By late third quarter 2006, managers responsible for quality control and risk management at WMC and GECC had expressed concerns that WMC’s quality and fraud controls were so lax that WMC received more mortgage applications containing fraud or other defects than its competitors. As a member of GE’s Corporate Audit Staff (CAS) involved in audits of WMC observed in April 2007, WMC “jacked up volume without controls.”
The United States alleged that the investment banks that purchased WMC’s loans declined to buy certain mortgage loans that WMC attempted to sell due to defects in the loan file or suspected fraud. When it declined, or “kicked out” a loan, the potential purchaser typically notified WMC of its reasons for rejecting the file, including the defects identified. WMC’s general practice was to re-offer certain kicked loans to a second potential purchaser for inclusion in RMBS without disclosing that the mortgage had previously been rejected or the reasons why the first potential purchaser concluded the mortgage had defects.
The United States alleged that by late 2005 and early 2006, investment banks were kicking out more of WMC’s loans than ever, and investors in RMBS backed by WMC loans raised concerns about the quality of loans originated by WMC because WMC borrowers were failing to repay their loans at unexpectedly high rates. WMC also began receiving increased numbers of requests from investment banks to buy back, or repurchase, loans. In March 2006, WMC reviewed a representative sample of the 1,276 loans it had repurchased in 2005, and concluded that 78 percent of the loan files reviewed contained at least one piece of false information. The results of this review were shared with WMC’s senior executive team and discussed on multiple occasions with personnel from GECC.
The United States alleged that in fall 2006, GECC took control over the strategic direction of WMC. Even in the face of increasing repurchase demands, kick-outs, and concerns about WMC’s underwriting quality, WMC continued selling its loans and making false representations about their qualities and attributes. GECC became closely involved in WMC’s whole loan sales and provided WMC with input and direction on how to sell off WMC’s remaining loans. Beginning in 2007, GECC also assumed control over WMC’s ability to grant repurchase requests.
The investigation of WMC, GE, and GECC and this settlement were handled by the Civil Division’s Commercial Litigation Branch, with assistance from the San Francisco Field Office of the Federal Bureau of Investigation. The claims resolved by this settlement are allegations only, and there has been no admission of liability.
Bureau of Prisons Tests Micro-Jamming Technology in South Carolina Prison to Prevent Contraband Cell PhonesRead the Press Release
This week, the Federal Bureau of Prisons (BOP) conducted a pilot test of micro-jamming technology at the Broad River Correctional Institution in Columbia, S.C. The test – the first collaboration of this kind in a state corrections facility – was conducted to determine if micro-jamming could prevent wireless communication by inmates using contraband cellphones in a housing unit. This test follows two earlier tests at a federal corrections facility in Cumberland, Maryland.
Contraband cellphones present an ongoing safety and correctional security concern for the public as well as for correctional facilities across the country. Contraband cellphones have been used to run criminal enterprises, distribute child pornography, and facilitate the commission of violent crimes—all while inmates are incarcerated. In South Carolina, officials attributed the deadly April 15, 2018 prison riot in part to contraband cellphones. And on March 5, 2010, a South Carolina inmate ordered a hit on a 15-year corrections veteran from behind bars. He was shot six times and severely wounded.
“While I served as United States Attorney of Maryland, my office prosecuted an inmate who used a smuggled cellphone to order the murder of an innocent witness,” Deputy Attorney General Rod Rosenstein said. “Contraband cellphones in correctional facilities pose a grave danger. We stand ready to help our state and local partners in their efforts to prevent inmates from using contraband cell phones in jails and prisons.”
Assistant Attorney General Beth Williams added, “Offenders should not be able to continue to threaten the public from behind bars. Because the majority of our country’s inmates are housed in state facilities, it is crucial that we work with our state and local partners to test and determine what solutions work best.”
Currently only federal agencies can obtain authorization to jam the public airwaves. State and local prisons cannot. This week’s test was a novel collaborative operation between BOP and the South Carolina Department of Corrections allowing the testing of micro-jamming technology at a state prison.
The test was authorized by the National Telecommunications and Information Administration (NTIA) and coordinated with the Federal Communications Commission. Two NTIA engineers attended the test and performed measurements of the micro-jamming equipment’s radio emissions to observe and document their characteristics. After the test is complete, NTIA will analyze the data and prepare a report.
The BOP will continue to evaluate cell signal detection and interception technologies and work with its federal partners and Congress to achieve cost-effective options to combat this threat to corrections and public safety. The agency does not endorse any specific vendor or product.
Three Men Convicted of Running Sex Trafficking RingRead the Press Release
Three men were found guilty by a federal jury of sex trafficking and conspiracy to commit sex trafficking.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney William M. McSwain of the Eastern District of Pennsylvania and Special Agent in Charge Michael Harpster of the FBI’s Philadelphia Field Office, made the announcement.
The verdict was accepted by U.S. District Judge Nitza I. Quiñones Alejandro of the Eastern District of Pennsylvania. Dkyle Jamal Bridges, 33, of Claymont, Delaware, and Kristian Jones, 25, and Anthony Jones, 35, both of Wilmington, Delaware, were each found guilty of conspiracy to engage in sex trafficking by force, fraud or coercion, and of minors, as well as sex trafficking three minors by force, fraud or coercion, on April 10 after a three-week jury trial. Bridges was also convicted of sex trafficking two adults by force, fraud or coercion.
According to evidence presented at trial, from 2012 through September 2017, Bridges, Kristian Jones and Anthony Jones ran a prostitution enterprise in which adult and minor females were sex trafficked throughout the mid-Atlantic region, including Pennsylvania and Delaware. Bridges frequently used violence and threats to cause the victims to engage in commercial sex acts. Kristian and Anthony Jones helped Bridges run the enterprise by providing security and reserving hotel rooms. The investigation began when a local police officer rescued two minors who had been advertised for prostitution on Backpage.com. Additional victims were identified by local law enforcement after being advertised for prostitution on Backpage.com.
The FBI investigated the case with assistance from the Tinicum Township Police Department; Newark, Delaware Police Department; Delaware State Police; Philadelphia Police Department; Delaware River & Bay Authority and Wilmington Police Department. Trial Attorney Jessica L. Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Priya T. De Souza and Seth M. Schlessinger of the Eastern District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Continues Nationwide Enforcement Actions Against Dishonest Tax Return PreparersRead the Press Release
Now that tax season is in full swing, the Department of Justice reminds taxpayers to choose tax preparers carefully.
The Justice Department’s Tax Division, in collaboration with U.S. Attorney’s Offices, takes legal action throughout the United States, including seeking court orders to shut down tax return preparers who prepared false tax returns, and criminally prosecuting fraudulent tax return preparers to punish dishonest tax return preparers for their fraudulent activities and to protect taxpayers and government funds.
“Most tax return preparers provide competent and professional advice,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “For those tax return preparers who choose to engage in fraudulent tax return preparation the Justice Department is steadfast in its commitment to ending such tax fraud. Criminal prosecutions and civil injunction actions against dishonest tax return preparers should serve as a strong message to fraudulent tax return preparers that criminal and fraudulent conduct has serious and permanent consequences.”
During this tax season, examples of some of the criminal convictions obtained by the Tax Division include:
- On March 7, 2019, a Miami, Florida, Certified Public Accountant (CPA) was sentenced to 39 months in prison for tax evasion. Darryl Sharpton willfully evaded the payment of federal income taxes for the tax years 2004 through 2008 and 2010. He was ordered to pay $1,380,602 in restitution to the IRS.
- On March 20, 2019, a Charlotte, North Carolina, tax return preparer was sentenced to 24 months in prison for preparing income tax returns for clients that claimed false deductions and fictitious businesses in order to obtain the Earned Income Credit. Shawanda Elmore prepared approximately 500 fraudulent tax returns.
- On March 4, 2019, a federal jury convicted a New York owner of a tax return preparation business for conspiring to commit aggravated identity theft and aiding and assisting in the preparation of false tax returns. Afolabi Ajelero used the identity of others to accomplish the scheme. His co-defendant, Hakeem Bamgbala, also has been convicted and awaits sentencing on wire fraud, aggravated identity theft, and aiding and assisting in the preparation of a false tax return charges.
- On Feb. 8, 2019, a Hattiesburg, Mississippi, CPA was convicted of conspiracy to defraud the United States, aiding in the preparation of false tax returns and filing false tax returns. Carl Nicholson was also found guilty of filing his own false personal income tax returns for 2012 through 2015. He faces sentencing on May 23, 2019.
Examples of some of this tax season’s civil injunctions obtained by the Tax Division include:
- On March 29, 2019, a federal court in Dallas, Texas, permanently enjoined Jhane Broadway, individually and doing business as Jeprofessionalz or MaxTaxPros, from preparing federal income tax returns for others. Broadway was required to mail or e-mail notice of the injunction order to all customers for whom she prepared a federal tax return or claim for refund for tax years 2015 through 2017.
- Also on March 29, 2019, a federal court in Beaumont, Texas, entered a permanent injunction against tax return preparer Sylvia Rodriguez, who is also known as Sylvia Ornelas, barring her from preparing federal tax returns for others and owning or operating a tax preparation business. The court found that Rodriguez engaged in fraudulent and deceptive conduct that substantially interfered with the administration of the tax laws.
- On March 27, 2019, a federal court in Miami, Florida, entered a permanent injunction barring Vilbrun Simon, Saintanise Agenord, Simon Accounting & Tax Services LLC, and Village Tax Multi Services from preparing federal income tax returns for others. The group is prohibited from operating, managing, or participating in any business, which prepares tax returns.
In the past decade, the Tax Division has obtained convictions and injunctions against hundreds of unscrupulous return preparers. Information about these cases is available on the Justice Department’s website. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
The Justice Department reminds taxpayers that they could still be responsible for any unpaid taxes, penalties, and interest, resulting from errors made on their returns.
Tax return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
Department of Justice to Hold Workshop on Competition in Television and Digital AdvertisingRead the Press Release
The Department of Justice will hold a public workshop on May 2-3, 2019, to explore industry dynamics in media advertising and the implications for antitrust enforcement and policy, including merger enforcement. The workshop will cover the different types of television and online advertising, and it will highlight, among other developments in the industry, the role of online and mobile advertising networks. Panelists will discuss a range of topics, including how each type of advertising may fit into an advertising campaign, how inventory is priced, the economics of advertising, developments in advertising technologies, the effects from changes in consumer behavior, and the competitive dynamics of media advertising in general, in light of the rise of digital advertising.
Assistant Attorney General Makan Delrahim for the Department of Justice’s Antitrust Division will open the workshop, which will bring together academics and high level executives from leading companies, including buyers and sellers of advertising inventory. The Division intends to explore the practical considerations that industry participants face and the competitive impact of technological developments such as digital and targeted advertising in media markets. The workshop will consist of a series of panels examining (1) television advertising; (2) internet and mobile advertising; (3) the competitive dynamics in media advertising; and (4) trends and predictions for advertising generally.
The Department of Justice invites comments from the public on the topics covered by this workshop. Interested parties may submit public comments online now through June 15, 2019, at [email protected].
The workshop is free and open to the public and will take place at the Anne K. Bingaman Auditorium and Lecture Hall, Liberty Square Building, 450 5th St. N.W., Washington, D.C., from 1:30 p.m. to 5:30 p.m. EDT on Thursday, May 2, 2019, and 9:30 a.m. to 1:00 p.m. EDT on Friday, May 3, 2019. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, directions to the event, and a list of speakers will be available in the near future on the event web page. Attendees are encouraged, but not required, to register in advance for each day of the workshop at [email protected]. Members of the press should also copy Jeremy Edwards in the Office of Public Affairs at [email protected] on their registration email. Seating will be on a first-come, first-served basis. Attendees should bring a valid government-issued photo ID (government badge, license, passport, etc.) and arrive in time to go through security.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact Jeremy Edwards at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we require further information.
Texas Bidder Pleads Guilty to Rigging Bids at Online Auctions for Surplus Government EquipmentRead the Press Release
Marshall Holland, the owner of a Texas company that purchases computers to resell and recycle, pleaded guilty today in connection with an ongoing investigation into a conspiracy to rig bids submitted to the General Services Administration (GSA), the Department of Justice announced.
According to the one-count felony charge filed in the U.S. District Court for the District of Minnesota, Holland conspired with others to rig bids at online public auctions of surplus government equipment conducted by the GSA. Holland is charged with participating in the conspiracy from about February 2017 until as late as May 2018. Holland is the first individual charged in this investigation and he has agreed to cooperate in the Department’s ongoing investigation.
“The Department and its law enforcement partners will not tolerate collusion that corrupts online markets and deprives taxpayers and the federal government of the benefits of competition,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “We will work tirelessly to prosecute online bidders who cheat taxpayers for their own benefit.”
The GSA operates GSA Auctions, which offers the general public the opportunity to bid electronically on a wide variety of federal assets, including computer equipment that is no longer needed by government agencies. GSA Auctions sells that equipment via its online auctions, and the proceeds of the auctions are distributed to the government agencies or the U.S. Treasury general fund. According to the charge, the primary purpose of the conspiracy was to suppress and eliminate competition. Additionally, the co-conspirators obtained the equipment by agreeing which co-conspirators would submit bids for particular lots offered for sale by GSA Auctions and which co-conspirator would be designated to win a particular lot.
“Competition is essential to GSA Auctions,” said Inspector General Carol Ochoa for GSA Office of Inspector General. “GSA OIG will continue to aggressively pursue those who scheme to tip the scales in their favor.”
A criminal violation of Section 1 of the Sherman Act carries a maximum of 10 years in prison and a $1 million criminal fine for individuals. The maximum fines 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 bid rigging at GSA auctions is being conducted by the Antitrust Division’s Chicago Office and the GSA Office of Inspector General’s Great Lakes Regional Investigations Office in Chicago, Illinois. Anyone with information concerning bid rigging or fraud related to GSA auctions should contact the Chicago Office of the Antitrust Division at 312-984-7200, the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations or email the GSA Office of Inspector General at [email protected]
Justice Department Files Lawsuit Against Warren County, North Carolina, Board of Education to Enforce the USERRA Rights of a United States Army ReservistRead the Press Release
The Department of Justice announced that it filed a complaint today in federal court against the Warren County, North Carolina, Board of Education (Warren County), to protect rights guaranteed to an Army Reservist, Command Sergeant Major Dwayne Coffer (CSM Coffer), by the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). The announcement was made by Assistant Attorney General Eric Dreiband of the Civil Rights Division and U.S. Attorney Robert J. Higdon, Jr. of the Eastern District of North Carolina.
CSM Coffer’s job as Dean of Students at Warren County Middle School was eliminated while he was on active duty. According to the lawsuit, Warren County violated USERRA by demoting him to Physical Education Teacher at Northside Elementary School instead of reemploying him in job that is comparable to Dean of Students.
“The freedoms we enjoy as Americans are dependent on the selfless duties performed by members of our Armed Forces,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “When our Country calls servicemembers to duty, its laws, enforced by the Department of Justice, protect their civilian jobs.”
“The Uniformed Services Employment and Reemployment Rights Act protects the brave men and women who serve our Country, and the Department of Justice is committed to enforcing USERRA when it is violated,” said U.S. Attorney Higdon. “Members of the Army Reserve, like Sergeant Major Dwayne Coffer, are often called away from their civilian jobs in order to provide the security upon which our nation depends. They should not have to fear losing their jobs when they answer that call.”
The Complaint seeks to reinstate CSM Coffer into a proper reemployment position and recover CSM Coffer’s lost wages and other benefits and other remedies. In 2012, the United States Department of Justice sued Warren County when it failed to renew the employment contract of CSM Coffer following a different period of military service.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case stems from a referral by the U.S. Department of Labor, at CMS Coffer’s request, after an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by Deborah Birnbaum in the Employment Litigation Section of the Department of Justice’s Civil Rights Division and Assistant U.S. Attorney Mike James in the U.S. Attorney’s Office for the Eastern District of North Carolina.
Justice Department Continues Enforcement Against Tax CrimesRead the Press Release
The deadline for filing federal income tax returns is fast approaching and nationwide tax season is in full force.
During this hectic time of year, the Department of Justice’s Tax Division takes a moment to remind the public that year round, tax enforcement efforts are continually underway across the country. The Tax Division in collaboration with U.S. Attorney’s Offices and the Internal Revenue Service (IRS) investigates and prosecutes individuals and corporations across a wide spectrum of occupation and industry.
“Filing a tax return and paying taxes are serious acts and willfully filing false and fraudulent tax returns and deliberately evading paying taxes are criminal acts,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. “During tax season and every season, the Tax Division is committed to achieving justice through the prosecution of those who choose to engage in tax crimes.”
Throughout the past year, federal prosecution of tax crime has included a range of income levels -- professionals, small business owners and wage earners -- and encompassed a broad spectrum of tax crimes from offshore fraudulent tax activity to employment tax fraud to identity theft. Tax enforcement efforts are ongoing. The Tax Division and its partners remain vigilant in the fight against tax crime.
Recent Tax Prosecutions of Individuals
- In April 2019, a Houston, Texas, man was sentenced to 360 months in prison for multiple conspiracy and tax crimes, including corporate tax evasion. The defendant engaged in the fraudulent sale of second-hand prescription drugs and tax crimes. The court imposed a criminal forfeiture money judgment of $20,326,464.17 and ordered $716,986 in restitution to the IRS.
- In April 2019, a District of Columbia woman was sentenced to 54 months in prison for conspiring to defraud the United States and commit theft of public money and aggravated identity theft. She engaged in a fraudulent tax refund scheme and was ordered to pay $1,806,876.66 in restitution to the IRS.
- In March 2019, a Salinas, California, woman was sentenced to 60 months in prison for conspiring to file false income tax returns and bank fraud. She was ordered to pay $1,641,610 in restitution to the IRS.
- In January 2019, a Union, South Carolina, mechanic was sentenced to 36 months in prison for wire fraud and filing a false income tax return. After creating a false invoice scheme, he embezzled money from his employer and failed to report the income on his tax returns. He was ordered to pay $1,941,377.32 in restitution.
- In November 2018, a Farmington, Michigan, trucking business owner was sentenced to 33 months in prison for wire fraud and willfully failing to file a tax return. The court ordered restitution of $2,919,265 to a third party victim and $142,069 to the IRS.
- In October 2018, a former IRS-Criminal Investigation special agent was sentenced to 51 months in prison for filing false tax returns, obstruction of justice, and stealing government money. A federal jury in the Eastern District of California convicted the defendant, who was also a CPA.
Recent Employment Tax Prosecutions
- In March 2019, a Raleigh, North Carolina, mental health executive was sentenced to 30 months in prison for failing to report and pay almost $1.7 million in employment taxes to the IRS.
- In November 2018, a Collinsville, Virginia, pharmacist was sentenced to 41 months in prison for failing to pay over more than $5 million in employment taxes to the IRS. The defendant spent the money owed to the United States on a Jeep Grand Cherokee, a jet ski, stock market investments and real property.
- In June 2018, a former Virginia Software Company CEO was sentenced to 21 months in prison for conspiring to defraud the government of more than $1.8 million in payroll taxes. Along with his co-conspirator, he also failed to remit the full amount of employee retirement contributions to the company’s retirement plan.
Recent Prosecutions Involving Offshore Banking
- In March 2019, one of the largest Israeli banks, Mizrahi-Tefahot Bank Ltd., and two of its subsidiaries, United Mizrahi Bank (Switzerland) Ltd. and Mizrahi Tefahot Trust Company Ltd., entered a deferred prosecution agreement (DPA) with the Department of Justice. Mizrahi-Tefahot Bank Ltd. paid $195 million to the United States as a direct result of its role in defrauding the United States, specifically the IRS, by conspiring with U.S. taxpayer-customers and enabling U.S. taxpayers to hide income and assets from the IRS.
- In October 2018, a Scottsdale, Arizona man, who managed a resort with family members in Pagosa Springs, Colorado, was sentenced to 18 months in prison for filing a false tax return underreporting his income and omitting $9.7 million in investment income from two offshore bank accounts in Liechtenstein
More information about the Tax Division’s enforcement efforts in these and other areas can be found on the division’s website.
Justice Department Announces Publication of White Paper on the CLOUD ActRead the Press Release
The Department announced today the public release of a white paper on the Clarifying Lawful Overseas Use of Data Act, known as the CLOUD Act. The CLOUD Act was enacted in March 2018 and updates the legal framework for how law enforcement authorities may request electronic evidence needed to protect public safety from service providers while respecting privacy interests and foreign sovereignty.
“Our collective safety and security depends on our ability to maintain lawful and efficient access to electronic evidence, and the CLOUD Act offers a sorely-needed solution to that challenge,” said Deputy Attorney General Rod Rosenstein. “As today’s white paper makes clear, the Department will be proactive in working, both in the United States and abroad, to promote greater understanding and appreciation of what the CLOUD Act accomplishes. We look forward to working with our trusted foreign law enforcement partners on CLOUD agreements that will make all our citizens safer.”
The CLOUD Act has two distinct parts. First, the Act authorizes the United States to enter into bilateral agreements to facilitate the ability of trusted foreign partners to get the electronic evidence they need to combat serious crimes. In order to qualify under the Act, a partner country must adhere to baseline rule-of-law, privacy, and civil liberties protections. Through bilateral agreements, each country would agree to lower the legal barriers that prevent their communication service providers from complying with qualifying lawful orders for electronic data issued by the other country. By dropping legal barriers, each country could serve its legal process – like search warrants – directly on the providers of the other country, dramatically increasing speed and efficiency compared with existing methods of transferring electronic evidence.
Second, the CLOUD Act makes explicit in U.S. law the established principle – longstanding in both the United States and in many foreign countries – that a company subject to our jurisdiction can be required to produce data within its custody and control, regardless of where it chooses to store that data at any point in time. This provision simply codified what had been the law and practice prior to the 2016 Microsoft decision by a court of appeals, and ensured that the United States continued to be in compliance with its obligations under the Budapest Cybercrime Convention, which requires all member states to have the power to compel providers in their territory to disclose electronic data in their control, no matter where stored. The CLOUD Act provision did not alter whether or not a provider is subject to U.S. jurisdiction, nor did it give U.S. law enforcement any new authority to acquire data.
The white paper released today, Promoting Public Safety, Privacy, and the Rule of Law Around the World: The Purpose and Impact of the CLOUD Act, was compiled with the input of components across the Department, including attorneys from the Criminal Division and the National Security Division. The white paper describes the interests and concerns that prompted the enactment of the CLOUD Act and provides a concise point-by-point distillation of the effect, scope, and implications of the Act, as well as answers to frequently asked questions.
For the full white paper, click here. On April 5, Deputy Assistant Attorney General Richard W. Downing delivered remarks on the CLOUD Act at the Academy of European Law Conference entitled “Prospects for Transatlantic Cooperation on the Transfer of Electronic Evidence to Promote Public Safety.” The remarks can be viewed here. The Department has created a resource page for CLOUD Act materials at www.justice.gov/CLOUDAct.
Customs and Border Protection Officer Pleads Guilty to Theft of Federal FundsRead the Press Release
A U.S. Customs and Border Portection (CBP) officer pleaded guilty today to converting federal funds to his own use, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Daniel Lerchbacker, 35, of Conroe, Texas, pleaded guilty to one count of conversion before U.S. District Judge Keith P. Ellison of the Southern District of Texas. Sentencing is scheduled for June 26, 2019.
According to admissions made in connection with his plea, Lerchbacker, while stationed in Canada as a CBP officer between December 2015 and December 2017, received from the U.S. foreign monetary allowances for the lease of his family’s residence and private school education expenses for his children. Although he received the full amount of federal funds that he requested as part of these allowances, Lerchbacker failed to pay a property management company and two private schools a total of approximately $54,460.99 CAD. Instead, Lerchbacker used thousands of dollars of the federal funds he received on items unrelated to his family’s housing or his children’s education.
Lerchbacker also admitted to submitting to CBP copies of checks as proof of payment to one of the private schools, despite knowing that such payments had not, in fact, been made. Additionally, Lerchbacker admitted that he requested, collected, and retained from the U.S. approximately $24,230.50 CAD in advance funds for his children’s education expenses for the full year while knowing that he and his family were to leave Canada before the start of the second semester.
The Department of Homeland Security Office of Inspector General investigated this case. Trial Attorney Rebecca Moses of the Criminal Division’s Public Integrity Section is prosecuting the case.
Univar USA Inc. to Pay U.S. $62.5 Million to Resolve Allegations that it Evaded $36 Million in Antidumping Duties on Imported Chinese SaccharinRead the Press Release
Univar USA Inc. (Univar), a subsidiary of Univar Inc., of Downers Grove, Illinois, has agreed to pay the United States $62.5 million to settle allegations under the customs penalty statute that it was grossly negligent or negligent when it imported 36 shipments of transshipped saccharin between 2007 and 2012. The saccharin was manufactured in China and transshipped through Taiwan to evade a 329 percent antidumping duty that applied to saccharin from China. The antidumping duty was a remedial measure in response to injury sustained by the domestic saccharin industry by reason of dumping of Chinese saccharin. The transshipment resulted in the evasion of approximately $36 million in antidumping duties.
“Transshipment of merchandise through third countries to evade antidumping duties undermines the integrity of our trade laws and puts domestic manufacturers at risk from unfairly traded merchandise,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We enforce our laws against importers who fail to take all reasonable steps to vet their suppliers and determine the true country of origin of their merchandise.”
The settlement resolves a lawsuit brought in the United States Court of International Trade seeking recovery of unpaid antidumping duties and penalties under 19 U.S.C. § 1592 totaling $84 million plus interest. In that action, the government alleged that Univar was grossly negligent or negligent in failing to determine that its supplier in Taiwan was not a manufacturer but, instead, imported saccharin into Taiwan from China for transshipment to the United States. This is the largest recovery under section 1592 ever reached in the Court of International Trade.
“We are committed to ensuring the laws that protect legitimate trade and US domestic industry, including anti-dumping and countervailing duties laws, are vigorously enforced,” said CBP’s Office of Trade Executive Assistant Commissioner Brenda Smith. “And to that end, we applaud the agencies that came together to settle this case.”
“I applaud the outcome of this investigation and commend the efforts of the special agents and CBP personnel who worked so diligently on this,” said Homeland Security Investigations (HSI) Executive Associate Director Derek Benner. “This is a tremendous example of the agencies’ collaborative commitment to enforce the trade laws of the United States.”
The settlement announced today was the result of an investigation by the U.S. Customs and Border Protection (CBP), Immigration and Customs Enforcement (ICE), and the Commercial Litigation Branch of the Justice Department’s Civil Division. The investigating ICE agent was Special Agent Patrick C. Deas. The case was handled by Commercial Litigation Branch Attorneys Patricia M. McCarthy, Stephen C. Tosini and Reta E. Bezak, and CBP Assistant Chief Counsel Currita C. Waddy.
Justice Department to Honor Crime Victim AdvocatesRead the Press Release
The Justice Department will honor 12 individuals and programs for their exceptional service to victims of crime during the annual National Crime Victims’ Service Awards Ceremony in Washington, D.C., on Friday, April 12. The Department will also recognize former U.S. Attorney General Ed Meese for a career of outstanding service on behalf of crime victims.
“Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”
Each year in April, the Department of Justice observes National Crime Victims’ Rights Week by taking time to honor victims of crime and those who advocate on their behalf. In addition, the Justice Department and U.S. Attorneys’ Offices participate in events to bring awareness to the services available to victims. This year’s observance takes place April 7-13, with the theme, “Honoring Our Past. Creating Hope for the Future.”
“Almost 50 years ago, a grassroots movement rose up to support crime victims and survivors, and that movement has grown into a nationwide effort that reaches victims in every corner of our country,” said Matt M. Dummermuth, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “While the Justice Department is making more funding available than ever before to meet victims’ needs, champions like the ones we honor today are offering victims ‘hope for the future.’”
The following award recipients were selected by the Office for Victims of Crime from nominations received from many sources. Individual press releases are available using the included links.
Allied Professional Award recognizes individuals from a specific discipline outside the victim assistance field for their service to victims and/or contributions to the victim assistance field.
- Recipient: Sgt. Amy Dudewicz, Bernalillo County, New Mexico
- Recipient: Diana Faugno, Rancho Mirage, California
Award for Professional Innovation in Victim Services recognizes a program, organization or individual who has helped to expand the reach of victims’ rights and services.
- Recipient: Richard H. Norcross, III, Keasbey, New Jersey
Crime Victims Financial Restoration Award honors individuals, programs or teams that developed innovative ways of funding services for crime victims or instituted innovative approaches for securing financial restoration for crime victims.
- Recipient: Elder and Dependent Adult Protection Team, San Mateo County, California
Crime Victims’ Rights Award honors the dedicated champions throughout our nation whose efforts to advance or enforce crime victims’ rights have benefited victims of crime at the local, state, tribal or national level.
- Recipient: Susan Howley, Washington, D.C.
National Crime Victim Service Award honors extraordinary individuals and programs that provide services to victims of crime.
- Recipient: Eva Velasquez, San Diego, California
- Recipient: Mark Weiner, Newark, Ohio.
Ronald Wilson Reagan Public Policy Award honors those whose leadership, vision and innovation have led to significant changes in public policy and practice that benefit crime victims.
- Recipient: Hallie Bongar White, Tucson, Arizona
- Recipient: Missey Smith, Overland Park, Kansas
Special Courage Award recognizes a victim or survivor who has exhibited exceptional perseverance or determination in dealing with his or her own victimization.
- Recipient: Shari Kastein, Sioux Center, Iowa
- Recipient: James Shaw, Nashville, Tennessee
Volunteer for Victim Award honors individuals for their extraordinary and selfless efforts resulting in positive and lasting changes in the lives of crime victims.
- Recipient: Laura Abbott, Cabot, Arkansas
The Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week each year. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership, grants and 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.
Former U.S. Army Reserve Employee Pleads Guilty to Wire Fraud and TheftRead the Press Release
A former U.S. Army Reserve employee pleaded guilty today to charges of wire fraud and theft of government money as part of a scheme to steal more than $400,000 from the 63rd Regional Support Command at Moffett Field in Mountain View, California, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Ramon Torry, 54, of Irvine, California, pleaded guilty to one count of wire fraud and one count of theft of government money before U.S. District Judge Beth Labson Freeman in the Northern District of California, San Jose Division. Sentencing has been scheduled for July 30, 2019.
According to the plea documents, Torry devised a scheme to steal money from the 63rd Regional Support Command related to a contract for the creation of a Public Service Announcement (PSA) touting the Command’s accomplishments. In February 2016, Torry began creating fake invoices for work allegedly performed by the Calfornia production company for the production of the PSA as well as for training and other services that were never performed. Torry then directed others in the Command to make payments to the company contracted to produce the PSA by both government purchase card and wire payments. Between December 2015 and October 2017, Torry directed payments from the 63rd to the production company totaling more than $414,000. He then directed Person A at the company to kick back more than $300,000 of those funds to Torry, which he converted to his own use and that of others.
The General Services Administration Office of Inspector General and the U.S. Army Criminal Investigation Command investigated the case. Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section is prosecuting the case. Assistant U.S. Attorney Marissa Harris from the Northern District of California has provided assistance with the case.
Former Associate General Counsel of Seaworld Entertainment, Inc. Pleads Guilty to Insider TradingRead the Press Release
The former associate general counsel and assistant secretary of SeaWorld Entertainment Inc. (SeaWorld), a publicly traded amusement park corporation headquartered in Orlando, Florida, pleaded guilty today for his role in an insider-trading scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Angel M. Melendez of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI)’s New York Field Office made the announcement.
Paul B. Powers, 60, of Winter Park, Florida, pleaded guilty to one count of insider trading before U.S. Magistrate Judge Leslie R. Hoffman of the Middle District of Florida. Sentencing before U.S. District Judge Carlos E. Mendoza of the Middle District of Florida has not yet been set.
As part of his guilty plea, Powers admitted that he received material nonpublic information about SeaWorld’s financial performance through his position as assistant general counsel and assistant secretary in June, July and August 2018. Specifically, Powers admitted that beginning in June 2018, he received information that had been prepared for an upcoming meeting of SeaWorld’s Revenue Committee showing that SeaWorld anticipated both attendance and revenue to increase in the first half of 2018 by approximately eight percent as compared to the first half of 2017. Powers acknowledged that he later attended Revenue Committee meetings at which the increase in attendance and revenue was discussed, and took notes of the meetings in his capacity as SeaWorld’s assistant secretary. Powers further admitted that on Aug. 1, 2018, he received materials prepared for an upcoming Audit Committee meeting that included a draft earnings release reporting the increased revenue and attendance figures for the first half of 2018, and also reporting that one of SeaWorld’s key earnings metrics (earnings before interest, tax, depreciation and amortization, or EBITDA) had improved 59.1 percent in the first half of 2018 as compared to the first half of 2017. In addition, Powers received a draft U.S. Securities and Exchange Commission (SEC) Form 10-Q reflecting that SeaWorld had “reached an agreement in principle with the SEC Enforcement Staff to settle, without admitting or denying, charges against SeaWorld arising out of the previously disclosed SEC investigation and that SeaWorld recorded an estimated liability of $4.0 million related to this matter.” On Aug. 3, 2018, Powers attended a meeting of the Audit Committee at which the draft earnings release and SEC Form 10-Q were discussed, and took notes of the meeting in his capacity as assistant secretary, he admitted.
“Paul Powers admitted today that he used information gained through his position as a senior executive at SeaWorld to unlawfully profit from trades in hundreds of thousands of dollars’ worth of SeaWorld securities,” said Assistant Attorney General Benczkowski. “The Department of Justice and our law-enforcement partners will hold executives accountable for their criminal conduct, particularly conduct that threatens the integrity of our capital markets.”
“While employed by SeaWorld, Powers benefited from revenue information not accessible to the public, to make a quick profit, contrary to law and SeaWorld’s trading policies,” said Special Agent in Charge Melendez. “HSI’s El Dorado Task Force remains fully committed to protect the U.S. financial markets from such egregious practices.”
After Powers obtained the foregoing material nonpublic information, he liquidated all of the equities in his personal TD Ameritrade account and purchased 18,000 shares of SeaWorld stock on Aug. 2, 2018 at a cost of approximately $385,592, he admitted. Powers further admitted that when he purchased the shares, he was prohibited from trading in SeaWorld stock pursuant to SeaWorld’s trading policies. After SeaWorld announced the better-than-expected attendance, revenue and EBITDA results, the price of SeaWorld shares spiked approximately 17 percent—from $21.13 per share at the close of trading on Friday, Aug. 3, 2018, to $25.40 per share when the market reopened on Monday, Aug. 6, 2018. Powers admitted that he then capitalized on the increase in share price by selling all 18,000 shares, realizing gross proceeds of approximately $450,237 and a net profit of approximately $64,645.
HSI New York investigated the case. Deputy Chief Henry Van Dyck and Trial Attorney Mark Cipolletti of the Criminal Division’s Fraud Section are prosecuting the case. The Securities and Exchange Commission also provided assistance in this matter.
Statement from Attorney General William P. Barr on the Department of State Designating the Islamic Revolutionary Guard Corps as a Foreign Terrorist OrganizationRead the Press Release
Today, Attorney General William P. Barr issued the following statement:
"Today, the Secretary of State announced that he intends to designate the Islamic Revolutionary Guard Corps (IRGC) as a Foreign Terrorist Organization (FTO) under Section 219 of the Immigration and Nationality Act. After the FTO designation takes effect, any person will be prohibited from knowingly providing material support or resources, as defined under the law, or attempting or conspiring to do so, to the IRGC. The IRGC's active support for terrorism is unacceptable, and the Department of Justice continues to support the administration's efforts to hold the Iranian regime accountable for its actions."
Department of Justice Announces First Step Act Implementation ProgressRead the Press Release
Today, the Department of Justice’s National Institute of Justice (NIJ), in accordance with the First Step Act, has announced the selection of the nonprofit and nonpartisan Hudson Institute to host the Independent Review Committee. The Committee, whose members will be appointed by Hudson Institute in accordance with the Act’s requirements, will assist the Department as it develops and implements risk and needs assessment tools and evidence-based recidivism reduction programs.
“The Department of Justice is committed to implementing the First Step Act,” said Attorney General William Barr. “The Independent Review Committee plays an important role in that effort by assisting in the development of a new risk and needs assessment system and improvements to our recidivism reduction programming. I am grateful to Hudson Institute for hosting this important Committee, which will lead to better policies at the Department and, ultimately, better outcomes for prisoners reentering society.”
NIJ also announced today that it is contracting with outside experts and leading researchers, including Dr. Grant Duwe Ph.D., Dr. Zachary Hamilton Ph.D., and Dr. Angela Hawken Ph.D., for assistance and consultation as the Department develops the Risk and Needs Assessment System under the Act. Dr. Duwe is the Director of Research for the Minnesota Department of Corrections, and a nationally recognized expert on the development of recidivism risk assessment systems. Dr. Hamilton is an Associate Professor of Criminal Justice and Criminology and the Director of the Washington State Institute for Criminal Justice, and focuses on treatment matching through risk and needs assessment systems. Dr. Hawken is a Professor of Public Policy at the New York University Marron Institute, and is the founder and director of New York University’s Litmus/BetaGov program, which assists in the development and validation of data-driven policies. Each of these experts will bring unique expertise as they augment NIJ and the Bureau of Prisons’ (BOP) efforts to implement the Act.
Today’s announcements by NIJ are the latest in a growing list of accomplishments as the Department works diligently to implement the Act, signed into law in December 2018. Some other highlights of the Department’s ongoing implementation efforts include:
- NIJ has hosted “listening sessions” to receive input from more than 25 stakeholders regarding the development of the Risk and Needs Assessment System under the Act. These stakeholders represent a diverse array of viewpoints, and presented helpful information to consider as the Department implements the Act.
- The Act’s retroactive application of the Fair Sentencing Act of 2010 (reducing the disparity between crack cocaine and powder cocaine threshold amounts triggering mandatory minimum sentences) has resulted in 826 sentence reductions and 643 early releases.
- BOP has 20 pilot dog programs operating under Sec. 608 of the Act. BOP has also developed a youth mentoring program in accordance with the Act.
- BOP has submitted to Congress a report, in accordance with the Act, evaluating the availability of medication-assisted treatment (MAT) in its facilities for inmates with substance abuse problems. BOP has also screened more than 400 inmates to identify candidates for possible enrollment in MAT programs.
- BOP has issued procedures for “compassionate release” sentence reductions under 18 U.S.C. §§ 3582 and 4205(g) (BOP Policy Number 5050.50), and 22 inmates have already received sentence reductions under this program.
- BOP has issued procedures providing for participation in the Second Chance Act home confinement pilot program under 34 U.S.C. 65401(g) (BOP Operations Memorandum 001-2019), and 23 inmates are currently participating, with additional inmates currently being screened for program inclusion.
- BOP has issued procedures providing for its employees to carry and store personal weapons under 18 U.S.C. § 4050 (BOP Policy Number 5575.01, CN-1).
- BOP has identified a screening tool to implement the Act’s dyslexia screening requirement, which will enable BOP to review the prevalence of dyslexia inside the BOP inmate population.
- BOP has issued an updated advisory memo and distributed training for federal prison facilities housing female inmates regarding the Act’s requirements prohibiting the use of restraints on pregnant inmates absent extreme circumstances (Note: BOP Policy Number 5566.06, CN-1 has prohibited the use of restraints on pregnant prisoners absent extreme circumstances since August 2014).
- The U.S. Marshals Service (USMS) has issued updated procedures and forms for USMS and its contracted private detention facilities regarding the Act’s requirements prohibiting the use of restraints on pregnant inmates absent extreme circumstances.
- BOP policies and contracts provide sanitary products to female offenders in compliance with the Act.
- BOP and USMS policies and contracts comply with the Act’s requirements that prohibit certain room confinement for juvenile offenders.
- BOP offers specialized and comprehensive de-escalation training to its employees and officers in accordance with Sec. 606 of the Act. BOP has also updated its mental health awareness training regarding inmates with psychiatric disorders, and more than 14,000 BOP employees have already received the updated training.
- BOP’s Federal Prison Industries (FPI) has begun work to expand FPI’s markets under the Act. BOP is also working with the Government Accountability Office to conduct an audit of FPI.
Repeat Sex Offender Sentenced to Ten Years in Prison for Possession of Images of Child Rape and MolestationRead the Press Release
A repeat federal felon, with prior state convictions for child molestation and child rape, was sentenced today in U.S. District Court in Seattle to ten years in prison for access with intent to view child pornography, announced U.S. Attorney Brian T. Moran. BRIAN KEVIN RUBENAKER, 59, of Everett, Washington, was on federal supervision following a nearly 13-year sentence for possession of child pornography when he was linked to a laptop computer hidden at another offender’s residence. Both men, convicted sex offenders, had their supervision revoked and were charged with new child pornography possession crimes. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez also imposed ten years of supervised release to follow his prison term.
“This defendant, already sent to state prison in 1998 for molestation and sexual abuse of minors, now faces a second significant federal sentence for acting on his sexual attraction to children,” said U.S. Attorney Brian T. Moran. “Those who collect and share images and videos of children being raped and tortured feed a market that thrives on the sexual abuse of children.”
According to records filed in the case, in October 2018, two federal probation officers made an unannounced visit to the Everett home of sex offender Mark Dreblow who was also on federal supervision. One of the probation officers noticed wires coming from a couch cushion. Under the cushion was a laptop computer, which Dreblow said belonged to RUBENAKER. Dreblow admitted the two men shared the computer and admitted it contained images of child sex abuse and exploitation. A forensic examination of the computer determined it contained multiple images of children being abused and exploited.
In 1998, RUBENAKER was convicted in Washington Superior Court of child molestation and rape of a child. In 2006, RUBENAKER was sentenced in federal court to nearly 13 years in prison for possession of child pornography. He was released in April 2016 on three years of supervised release. RUBENAKER was arrested in December 2018 for conspiracy to possess child pornography and pleaded guilty to access with intent to view child pornography in January 2019. Because of his status as a repeat offender, RUBENAKER was subject to a 10-year mandatory minimum sentence.
New Multilateral Framework on Procedures Approved by the International Competition NetworkRead the Press Release
On April 3, 2019, the Steering Group of the International Competition Network (ICN) unanimously approved a multilateral framework on procedures among antitrust enforcement agencies globally to promote fundamental due process in competition law investigation and enforcement. The framework is based on the principles of the Antitrust Division’s Multilateral Framework on Procedures (MFP), an initiative that was originally announced by Assistant Attorney General Makan Delrahim at the Council of Foreign Relations in June of last year.
The Antitrust Division, in consultation with a dozen leading competition agencies from around the world, developed the proposal, which was then introduced to the global antitrust community last fall and received overwhelming support. At the request of several partner agencies, the Antitrust Division agreed to implement the proposed arrangement through the International Competition Network to take advantage of existing structures and to reduce administrative burdens. The multilateral framework implements this initiative by utilizing established ICN institutions and processes, and will be open to all national, supranational, and customs territory-specific competition agencies around the world, whether or not a member of the ICN.
This historic multilateral agreement recognizes fundamental principles of transparency and procedural fairness in antitrust enforcement and promotes review mechanisms to ensure that participating agencies abide by these norms. Adopting the substance of the Antitrust Division-initiated proposal, the framework identifies universal due process principles that are widely accepted across the globe, including commitments regarding non-discrimination; transparency and predictability; proper notice, access to information, meaningful and timely engagement, and opportunity to defend; timely resolution of proceedings; confidentiality protections; avoidance of conflicts of interest; access to counsel and privilege; written enforcement decisions and public access to decisions; and availability of independent review of enforcement decisions. As in the original proposal, the framework complements these substantive norms with review mechanisms designed to ensure meaningful compliance, including consultations, agency reports on implementation, and periodic assessment meetings.
“Adopting the Framework on Competition Agency Procedures is a remarkable and historic achievement for antitrust enforcement,” said Assistant Attorney General Makan Delrahim of the Antitrust Division. “It sends a clear signal that competition agencies across the globe – despite differences in their structures and proceedings, as well as the legal systems in which they operate – are committed to procedural fairness. We are grateful that the framework approved by the ICN Steering Group, in record time, is equivalent in all respects to the principles of the MFP that was originally proposed by the Antitrust Division. By combining strong substantive principles with meaningful review mechanisms, it goes well beyond anything competition agencies have ever done before.”
Beginning on May 1, 2019, the framework will be open for signature to all national, supranational, and customs territory-specific competition agencies, including ICN member and non-member agencies. It will come into effect on May 15, 2019, at an inauguration ceremony of the charter participants during the ICN annual conference in Cartagena, Colombia.
The ICN, founded by 15 agencies including the Department of Justice’s Antitrust Division, was created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world. The ICN has grown to include 138 member agencies from 125 jurisdictions, supported by a wide network of non-governmental advisors from around the world.
The ICN’s Framework on Competition Agency Procedures can be found here.
Defense Department Employee Sentenced to Prison for Receipt of Child PornographyRead the Press Release
An Alexandria, Virginia, man was sentenced today to nine years in prison followed by 10 years of supervised release for receipt of child pornography.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office and Chief Michael L. Brown of the Alexandria Police Department made the announcement.
Edward Thomas Parsons, 64, a former physical security specialist with the Department of Defense, pleaded guilty on Sept. 12, 2018 before Senior U.S. District Judge Claude M. Hilton of the Eastern District of Virginia to receipt of child pornography.
According to admissions made in connection with his guilty plea, Parsons and his co-defendant, Bradley Robert Segert, administered an online group chat on Kik Messenger, a mobile messaging application, dedicated to soliciting child pornography from other Kik users. Between January 2015 and August 2015, Parsons received and distributed images and videos of child pornography from this Kik group chat. In addition, through the course of its investigation, law enforcement seized Parsons’s personal desktop computer and cell phone and found hundreds of images and videos of child pornography on the devices.
FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force is investigating the case. The Task Force is comprised of agents of the FBI, U.S. Marshals, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies. Trial Attorneys James E. Burke IV and William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Houston Man Sentenced to Thirty Years in Prison for Money Laundering Conspiracy and Tax Crimes Relating to Second-Hand Drug SchemeRead the Press Release
A Houston, Texas, man was sentenced today to 360 months in prison for multiple conspiracy and tax charges, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
On Nov. 14, 2018, a jury convicted Kenneth J. Coleman, 52, of nine counts, including conspiracy to commit money laundering, conspiracy to structure currency transactions, corporate tax evasion, filing false tax returns with the Internal Revenue Service (IRS), and failing to file tax returns.
The evidence at trial established that Coleman facilitated the fraudulent sale of second-hand prescription medications to Utah-based Green Valley Medical Distributors, LLC (Green Valley). Coleman owned Acacia Pharma Distributors Inc. (Acacia) and Four Corner Suppliers Inc. (Four Corner), which purchased bottles of prescription medications from illegitimate sources and then sold them to Green Valley, which then sold the medications to pharmacies as brand-new.
Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer. Coleman and others acting at his direction created false pedigrees and provided the fraudulent documents to Green Valley. Evidence at trial showed that Green Valley would withhold payment to Coleman until it received these false pedigrees.
Coleman and his co-defendant, Marcus Weathersby, deposited proceeds from the fraudulent sale of these second-hand prescription drugs into Acacia’s and Four Corner’s business bank accounts and used the funds to pay the suppliers of the illicit pharmaceuticals. At trial, the government proved that Weathersby and others acting at Coleman’s direction laundered more than $41.5 million of illicit funds, including over $2.9 million in more than 230 cash withdrawals made in amounts less than $10,000, in order to evade bank-reporting requirements.
Coleman also evaded the assessment and payment of Acacia’s and Four Corner’s income tax liabilities, failed to file an individual tax return for tax year 2011, failed to file corporate income tax returns for tax years 2011 and 2012, and filed false individual income tax returns for the tax years 2012 and 2013. The combined loss of corporate and individual income taxes was more than $700,000.
Coleman’s co-defendant, Weathersby, formerly of Houston, Texas, pleaded guilty to conspiracy to commit money laundering and was sentenced in June 2018 to 58 months in prison. He testified at trial against Coleman.
In addition to the term of imprisonment imposed, U.S. District Court Judge David Hittner ordered Coleman to serve three years of supervised release, imposed a criminal forfeiture money judgment of $20,326,464.17, and ordered Coleman to pay $716,986 in restitution to the Internal Revenue Service.
Principal Deputy Assistant Attorney General Richard E. Zuckerman thanked agents of IRS-Criminal Investigation, the Federal Bureau of Investigation, and the Food and Drug Administration-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Zuckerman also thanked U.S. Attorney Ryan K. Patrick of the Southern District of Texas and his office for their assistance in this matter.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Securus Technologies Abandons Proposed Acquisition of Inmate Calling Solutions After Justice Department and the Federal Communications Commission Informed Parties of ConcernsRead the Press Release
Securus Technologies Inc. (Securus) confirmed yesterday that it has abandoned its plans to acquire Inmate Calling Solutions LLC (ICS). The Department of Justice’s Antitrust Division had previously informed the companies that it had significant concerns that the merger would eliminate important competition in the market for inmate telecommunications services (ITS).
Securus and ICS are two of the four major ITS providers in the United States. Correctional facilities across the United States rely on specialized telecommunications companies to provide both basic phone service to inmates and the important security features the facilities require. In addition, ITS are an important source of revenue that supports the facilities’ operations. These services are an important lifeline between the inmates in these facilities and their loved ones.
“Securus and ICS have a history of competing aggressively to win state and local contracts by offering better financial terms, lower calling rates, and more innovative technology and services. This merger would have eliminated that competition, plain and simple,” said Makan Delrahim, Assistant Attorney General of the Department of Justice’s Antitrust Division. “The companies’ decision to abandon this deal is the right outcome – correctional facilities, inmates and their friends and families will continue to benefit from the robust competition between these firms.”
“I would like to thank our colleagues at the Federal Communications Commission for their cooperation throughout this investigation,” said Assistant Attorney General Delrahim. “In addition, we are grateful for the cooperation we forged with teams from several State Attorneys General offices during the course of our investigation.”
Securus is a Delaware corporation headquartered in Carrolton, Texas, that is owned by Platinum Equity, a venture capital firm. Securus is one of the two largest ITS providers in the nation.
ICS is a California LLC headquartered in San Antonio, Texas, that is owned by H.I.G. Capital LLC, a venture capital firm. It is the fourth largest ITS provider as measured by inmates served.
Massachusetts Restaurant Owners Charged with Tax FraudRead the Press Release
A federal grand jury in Boston, Massachusetts, returned an indictment charging three restaurant owners with conspiracy to defraud the United States and filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
The indictment charges Massachusetts residents, Ayaz Ali Shah of Dedham, Massachusetts, Muhamad Siyab Khan and Khurshed Jehan Badshah, both of Dorchester, Massachusetts, with conspiring to defraud the United States by impeding the lawful functions of the Internal Revenue Service (IRS). Shah and Badshah also are each charged with two counts of willfully filing their own false individual income tax returns for tax years 2012 and 2013. Khan is charged with two counts of aiding and assisting in the preparation and presentation of his own false and fraudulent tax returns for tax years 2012 and 2013.
According to the indictment, from 2009 through 2014, Shah, Khan, Badshah, and an unindicted co-conspirator, co-owned and operated a carry-out restaurant “New York Fried Chicken and Pizza” in Dorchester, Massachusetts. Shah, Khan, and Badshah each allegedly owned twenty percent of the business while the unindicted co-conspirator owned the other forty percent. The indictment alleges that during this time period, the co-conspirators agreed to underreport the business’s gross receipts, cost of goods sold, and net profit and to report these false amounts on Shah’s 2012 and 2013 individual income tax return, thereby concealing the business’s true partnership nature from the IRS. Khan and Badshah allegedly filed false 2012 and 2013 tax returns that failed to report their gross income.
If convicted, Shah, Khan, and Badshah face a maximum sentence of five years in prison on the conspiracy charge and a maximum sentence of three years in prison on each count of willfully filing a false tax return or aiding and assisting in the preparation and presentation of false and fraudulent tax returns. The defendants also face 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.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, FBI, Boston Division, U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI) and the Boston Police Department, who conducted the investigations, and Trial Attorneys Thomas Voracek and Mark McDonald 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.
Justice Department Alleges Conditions in Alabama Men's Prisons Violate the ConstitutionRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama today concluded that there is reasonable cause to believe that the conditions in Alabama’s prisons for men violate the Eighth Amendment of the U.S. Constitution. The Department concluded that there is reasonable cause to believe that the men’s prisons fail to protect prisoners from prisoner-on-prisoner violence and prisoner-on-prisoner sexual abuse, and fail to provide prisoners with safe conditions.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the Department provided Alabama written notice of the supporting facts for these alleged conditions and the minimum remedial measures necessary to address them.
“The Constitution guarantees all prisoners the right to be housed in safe conditions and not be subjected to violence and sexual abuse,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “Our investigation found reasonable cause to believe that Alabama fails to provide constitutionally adequate conditions and that prisoners experience serious harm, including deadly harm, as a result. The Justice Department hopes to work with Alabama to resolve the Department’s concerns.”
“This massive undertaking alleges constitutional troubles in the Alabama Department of Corrections which are serious, systemic, and in need of fundamental and comprehensive change,” U.S. Attorney Jay Town stated. “That being said, I have great confidence in the State of Alabama’s resolve to correct the prison system’s problems. The commitment by Governor Ivey, Commissioner Dunn, and so many others in the State’s leadership to affirmatively address these inherited issues offers great promise of our development of a meaningful remedy.”
“An extraordinary amount of time and effort was expended to investigate this matter,” said U.S. Attorney Louis Franklin, Sr. “Although the results of this investigation are disturbing, I look at this as an opportunity to acknowledge that the problems are real and need to be addressed immediately. We are committed to working with State officials to ensure that the Department of Corrections abides by its constitutional obligations.”
“The United States Constitution bans ‘cruel and unusual punishments’ but the conditions found in our investigation of Alabama prisons provide reasonable cause to believe there is a flagrant disregard of that injunction,” said U.S. Attorney Richard Moore. “The failure to respect the rule of law by providing humane treatment for inmates in Alabama prisons is a poor reflection on those of us who live and work in Alabama. We are better than this. We do not need to tarry very long assessing blame, but rather commit to righting this wrong and spare our State further embarrassment. The task is daunting, but one we must embrace now without reservation. I am confident that Governor Ivey and the Legislative leadership in the State of Alabama understand the nature of this inherited problem and that they are committed to sustainable solutions.”
The Civil Rights Division and the United States Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama initiated the investigation in October 2016 under CRIPA, which authorizes the Department to take action when it has reasonable cause to believe there is a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.
This investigation was conducted by attorneys with the Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S. Attorney’s Offices for the Northern, Middle, and Southern Districts of Alabama. Individuals with relevant information are encouraged to contact the Department by phone at (877) 419-2366 or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Former Vice President of Commercial Flooring Contractor Charged with Bid RiggingRead the Press Release
Michael P. Gannon, former Vice President of Sales for a large Chicago-based commercial flooring contractor, has been charged for his role in a conspiracy to rig bids and fix prices for commercial flooring services and products sold in the United States, the Department of Justice announced today. This charge is the first in the Department’s ongoing investigation into bid rigging and price fixing by commercial flooring contractors.
Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division and Special Agent in Charge, Jeffrey S. Sallet, of the Federal Bureau of Investigation’s Chicago Field Division, made the announcement.
According to a one-count felony charge filed today in U.S. District Court for the Northern District of Illinois, Gannon and his employer engaged in a conspiracy to suppress and eliminate competition in the commercial flooring market by agreeing with other individuals and companies to submit “comp,” or complementary, bids so that the designated company would win the bidding. According to the charge, Gannon and his co-conspirators rigged bids for commercial flooring services and products for almost a decade, from at least as early as 2009 until as late as June 22, 2017.
“Today’s charge is the first of what we expect to be many in this ongoing investigation into bid rigging,” said Assistant Attorney General Delrahim. “Any collusion by commercial flooring contractors exploits local communities whose schools, hospitals, charities, and businesses are entitled to the benefits of competitive bidding. The Justice Department and our law enforcement partners will bring contractors to justice when they cheat rather than compete.”
“The FBI has no tolerance for contractors who seek to profit by criminally exploiting innocent businesses and communities,” said Special Agent in Charge Sallet. “We will continue to use every tool at our disposal to hold these offenders accountable for their crimes and restore equity to the bidding process.”
A violation of the Sherman Act carries maximum penalties of a $100 million criminal fine for corporations and 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
An information is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The charges are the result of an ongoing federal antitrust investigation into bid rigging, price fixing, and other anticompetitive conduct in the commercial flooring industry, conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Division.
Anyone with information on bid rigging, price fixing, or other anticompetitive conduct related to the commercial flooring industry should contact the Antitrust Division’s Chicago Office at 312-984-7200.
DC Resident Sentenced to Prison for Role in Scheme to Obtain Fraudulent Tax RefundsRead the Press Release
A District of Columbia woman was sentenced to 54 months in prison for conspiring to defraud the United States and commit theft of public money and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to documents filed with the court, from approximately January 2008 through April 2012, Sheila Scutchings, along with others, engaged in a scheme to file false tax returns with the Internal Revenue Service (IRS) claiming refunds to which they were not entitled. Scutchings solicited the names and Social Security numbers of individuals for use in the preparation of those false tax returns. She then caused the fraudulent tax refund checks to be mailed to addresses under her control. Scutchings deposited these refund checks into her own bank account and the account of a co-conspirator, and exchanged others at check cashing businesses. In all, Scutchings caused the IRS to suffer a tax loss of over $1.8 million.
In addition to the term of prison imposed, U.S. District Judge Rosemary M. Collyer ordered Scutchings to serve three years of supervised release and to pay $1,806,876.06 in restitution to the IRS. The Court entered a consent forfeiture order directing Scutchings to forfeit $673,551.15.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of the Department of Treasury Office of Inspector General and IRS-Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas Koelbl and William Guappone, who prosecuted the case.
Bureau of Prisons Employee Pleads Guilty to Making False StatementsRead the Press Release
A Bureau of Prisons (BOP) employee pleaded guilty today to making false statements, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.
Tammy Karasawa, 44, of Pueblo West, Colorado, pleaded guilty to one count of making false statements before U.S. District Judge Christine Arguello of the District of Colorado. Sentencing is scheduled for Aug. 5, 2019.
Karasawa was employed at the BOP U.S. Penitentiary Florence ADX facility as a cook foreman. According to admissions made in connection with her plea, beginning in approximately the summer of 2017, Karasawa began a physical relationship with an inmate under her supervision. On Aug. 18, 2017, while Karasawa and the inmate were engaging in a physical encounter, one of Karasawa’s coworkers saw the pair, confronted them, and reported the incident to his superiors. The same day, Karasawa was interviewed by agents from the Department of Justice Office of the Inspector General regarding this conduct. Karasawa admitted that she made multiple false statements during the course of this interview including denying having any type of physical relationship with the inmate.
The Department of Justice Office of the Inspector General investigated this case. Trial Attorney Nicole Lockhart of the Criminal Division’s Public Integrity Section is prosecuting the case.
The Founder and Chairman of a Multinational Investment Company, a Company Consultant and Two North Carolina Political Figures are Charged with Public Corruption and BriberyRead the Press Release
A federal criminal indictment unsealed today in the Western District of North Carolina charges the founder and Chairman of a multinational investment company, a company consultant and two North Carolina political figures with public corruption and bribery, for their alleged participation in a bribery scheme involving independent expenditure accounts and improper campaign contributions.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew Murray for the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI Charlotte Field Office, made the announcement.
The indictment charges Greg E. Lindberg, 48, of Durham, North Carolina, and founder and Chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG); John D. Gray, 68, of Chapel Hill, North Carolina and a consultant for Lindberg; North Carolina state political party Chairman Robert Cannon Hayes, 73, of Concord, North Carolina; and Chairman of a Chatham County political party and an Eli Global executive John V. Palermo, 63, of Pittsboro, North Carolina, with conspiracy to commit honest services wire fraud, and bribery concerning programs receiving federal funds and aiding and abetting. Hayes is also charged with three counts of making false statements to the FBI.
The defendants made their initial appearances today before U.S. Magistrate Judge David C. Keesler in federal court in Charlotte.
“The indictment unsealed today outlines a brazen bribery scheme in which Greg Lindberg and his coconspirators allegedly offered hundreds of thousands of dollars in campaign contributions in exchange for official action that would benefit Lindberg’s business interests,” said Assistant Attorney General Benczkowski. “Bribery of public officials at any level of government undermines confidence in our political system. The Criminal Division will use all the tools at our disposal—including the assistance of law-abiding public officials—to relentlessly investigate and prosecute corruption wherever we find it.”
“Thanks to the voluntary reporting of the North Carolina Commissioner of Insurance, we have uncovered an alleged scheme to violate our federal public corruption laws,” said U.S. Attorney Murray. “Improper campaign contributions erode the public’s trust in our political institutions. We will work with our law enforcement partners to investigate allegations of public corruption, safeguard the integrity of the democratic process, and prosecute those who compromise it.”
“These men crossed the line from fundraising to felonies when they devised a plan to use their connections to a political party to attempt to influence the operations and policies of the North Carolina Department of Insurance,” said Special Agent in Charge Strong. “The FBI will root out any and all forms of public corruption. We remain committed to ensuring those who violate the public’s sacred trust are held accountable.”
The criminal indictment alleges that in January 2018, the elected Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to federal law enforcement about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated.
According to allegations in the indictment, from April 2017 to August 2018, Lindberg, Gray, Palermo and Hayes devised a scheme to defraud and deprive the citizens of North Carolina of the honest services of the Commissioner, an elected State official, through bribery. As alleged in the indictment, the defendants engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions, for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG. As the indictment alleges, the defendants gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG.
During the time frame relevant to the indictment, Lindberg, Gray, Palermo and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and with Hayes, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. In order to conceal the bribery scheme, Palermo allegedly set up, at the direction of Lindberg, two corporate entities to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and funded the entities with $1.5 million as promised to the Commissioner. Also, at Lindberg and Gray’s direction, Hayes allegedly caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was Chairman, to the Commissioner’s re-election campaign.
On or about Aug. 28, 2018, FBI agents interviewed Hayes about his involvement with and knowledge of the alleged improper campaign contributions. During the interview, Hayes allegedly lied to FBI agents about directing funds, at Lindberg’s request, from Lindberg’s campaign contribution to the North Carolina state political party to the Commissioner’s re-election campaign; about having any discussions with the Commissioner about Lindberg or Gray; and about discussing with the Commissioner personnel issues related to the Commissioner’s office.
The details contained in this indictment are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI is in charge of the investigation, which is ongoing.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William Stetzer and Dana Washington of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Justice Department Settles Lawsuit Against Glendale, Arizona, for Violating the USERRA Rights of Arizona Air National Guard MemberRead the Press Release
The Department of Justice today announced that a settlement has been reached with the City of Glendale, Arizona, resolving a lawsuit filed by the Department of Justice under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) on behalf of Arizona Air National Guard Member Rebecca Cruz.
According to the complaint filed in the United States District Court for the District of Arizona, the City of Glendale fired Captain Cruz because she needed to miss work to attend military training.
To resolve this case, the City paid Cruz the back wages and retirement benefits that she lost because of her termination.
“Our nation depends on Captain Cruz and other members of our National Guard. Our laws preserve their civilian jobs when they are called to service,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice ensures that these laws are followed.”
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations. This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of National Guard servicemembers upon their return to civilian life.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on DOL’s website at www.dol.gov/vets/programs/userra/main.htm.
Justice Department Settles Immigration-Related Discrimination Claim Against Housing Authority in TexasRead the Press Release
The Justice Department today announced that it has reached a settlement agreement with the Housing Authority of Victoria, Texas (Housing Authority). The settlement resolves a complaint that the Housing Authority discriminated against a lawful permanent resident when it rejected his valid employment documents and fired him in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA). While it is illegal under the INA for employers to knowingly hire individuals without work authorization, it is also illegal under that law for employers to discriminate against lawful permanent residents, among other work-authorized immigrants, in the hiring process.
“Employers should not reject valid employment documents because of a lawful permanent resident’s citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with the Housing Authority to ensure its compliance with the Immigration and Nationality Act.”
The Department’s investigation, which was initiated based upon the lawful permanent resident’s complaint, concluded that the Housing Authority improperly requested that the worker present more documents than necessary to prove his ability to work, thereby rejecting the identification and unrestricted Social Security card he already presented, based on his citizenship status. These actions constitute unfair documentary practices in violation of the INA.
The Department’s investigation also concluded that the Housing Authority improperly terminated the worker based on his citizenship status when he could not comply with its discriminatory document request. Under the INA, workers are allowed to choose from lists of acceptable documents to prove that they are authorized to work, and employers cannot reject valid documents or specify which documents the workers should present because of their citizenship. The INA also prohibits employers from firing U.S. citizens and those who are lawfully in the country and authorized to work based on their citizenship, immigration status, or national origin.
Under the settlement, the Housing Authority will offer to rehire the injured worker, provide him back wages, pay civil penalties to the United States, train employees on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring requirements.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination against individuals who are authorized to work based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
More information on how employers can avoid unlawful discrimination when verifying that workers are eligible to work 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.
Department of Justice to Hold Roundtable on the Antitrust Criminal Penalty Enhancement & Reform ActRead the Press Release
On April 11, 2019, the Department of Justice Antitrust Division will hold a public roundtable to discuss the Antitrust Criminal Penalty Enhancement & Reform Act (ACPERA). ACPERA reduces the civil damages exposure of a company granted leniency under the Antitrust Division’s Leniency Policy if the company provides civil plaintiffs with timely, “satisfactory cooperation.” ACPERA, Section 213(b) & (c), 15 U.S.C. § 1 notes. The Antitrust Division seeks to hear the views of interested stakeholders regarding ACPERA and its impact on the Division’s criminal enforcement efforts.
The ACPERA Roundtable will provide a public forum for the Antitrust Division to engage with the antitrust community and gain insight from judges, attorneys, economists, academics, the business community, and other interested stakeholders on ACPERA. The format of the Roundtable will be a series of panel discussions with featured speakers.
“The Division’s Leniency Policy is critical to the success of our criminal enforcement program. I am proud to have been at the Division when ACPERA was enacted in 2004 and the Antitrust Division looks forward to examining how ACPERA is operating today,” said Assistant Attorney General Makan Delrahim. “The Division values input from those who have experience with ACPERA and other stakeholders who have considered ACPERA’s effects on the self-disclosure of wrongdoing.”
The roundtable will take place from 1-5 p.m., on April 11, 2019, in the Anne K. Bingaman Auditorium & Lecture Hall on the lower level of the Liberty Square Building, 450 Fifth Street, NW, Washington, DC 20530.
In addition, the Antitrust Division is accepting written comments on the efficacy of ACPERA. Interested parties may submit public comments to [email protected] until May 31, 2019. Submitted comments and any submissions from roundtable panelists will be made publicly available on the Antitrust Division’s website.
To register for the event, please email [email protected] with your name, organization, and contact information.
For more information, please see the ACPERA Roundtable webpage or send an email to [email protected].
Reasonable accommodations for people with disabilities are available upon request. Requests should be submitted via email to Jeremy Edwards in the Office of Public Affairs at [email protected]. Requests should be made in advance. Please include a detailed description of the accommodation needed and provide contact information.
United States Attorney’s Office Recognizes Women’s History Month by Honoring the Districts’ First Female U.S Attorney and AUSARead the Press Release
SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, in honor of #WomensHistoryMonth, recognizes the contributions of two former attorneys at the United States Attorney’s Office.
Alicia A.G. Limtiaco, born and raised in Guam, became the first female U.S. Attorney for Guam and the NMI. She served from June 21, 2010 to March 10, 2017. Ms. Limtiaco previously served as the first female Attorney General of Guam and served in that office from January 3, 2007 to June 21, 2010. She completed undergraduate studies at the University of Southern California, then earned her Juris Doctorate at UCLA School of Law. Ms. Limtiaco is a Distinguished Fellow with the Institute on Violence, Abuse and Trauma (IVAT) and an International Fellow with the Ho’omaluhia Family Violence and Sexual Assault Institute – Hawai’i Pacific, and serves as a trainer at their international summits. She is also a legal specialist on contract to the Office of the Prosecuting Attorney for Hawai’i County working in the area of domestic violence and sexual assault.
Ellen A. Lockwood was the first female Assistant U.S. Attorney in the Guam office. She was sworn in on June 8, 1987. On July 29, 1989, Ellen transferred as an AUSA to the Western District of Texas. She currently works in private practice and as an adjunct professor at St. Mary’s University School of Law in San Antonio. She is a graduate of the Georgetown University Law Center.